Punjab Assembly approves new mining law to attract local and foreign investment

LAHORE (Dunya News) – In a major move to put the mining sector on a new footing, the Punjab government has introduced a comprehensive legal framework for minerals and mining by passing the Punjab Mines and Minerals Bill 2025 in the provincial assembly.

The bill was approved during the current session and is aimed at drawing international investment while bringing clarity and order to the mining sector. Under the new law, a modern licensing system will be introduced, and a dedicated licensing authority will be established with powers to issue, suspend, and cancel mining licenses.

According to the text of the bill, a Mines and Minerals Force will be formed to curb illegal mining activities. The force will be headed by a Director General, and all officers, except senior officials, will be required to wear uniforms. The force will also have the authority to make arrests in cases of illegal mining.

The bill further provides for the establishment of special mining and minerals police stations, as well as special courts to handle mining-related cases. Decisions of the special courts can be challenged before the sessions courts.

To promote exploration, an Exploration Promotion Division will be set up to prepare a centralized geological database. The law also outlines bidding procedures and penalty clauses, and once approved, several existing draft mining laws will be repealed.

Officials said the main purpose of the new legislation is to offer legal certainty to investors and develop a strong regulatory framework in line with national and international standards.

The bill seeks to regulate, promote, and manage Punjab’s mineral resources through a modern and comprehensive legal system.

The framework also focuses on transparency, scientific methods, and environmentally responsible mining practices, while strengthening regulatory oversight. Clear procedures have been laid out for granting, renewing, suspending, and canceling mining titles.

The bill aims to enhance the role and authority of the Mines and Minerals Department and simplify the licensing process for investors and stakeholders.

The law will take effect after final approval by the Governor of Punjab, following which several existing mineral laws will stand repealed.

Officials noted that the mining sector plays a vital role in economic growth, job creation, and industrial development, and the new legal system is designed to help the sector meet emerging challenges and unlock its full potential.