The Punjab government has moved to overhaul its mining and minerals regulatory system by introducing a new comprehensive legal framework aimed at boosting domestic and foreign investment in the sector. The Punjab Mines and Minerals Bill 2025 was tabled in the Punjab Assembly, proposing a modern licensing regime for mining operations across the province.
According to the draft bill, a Licensing Authority will be established with powers to issue, suspend, and cancel mining licences. A dedicated Mines and Minerals Force will also be set up to curb illegal mining activities. The force will be led by a Director General and senior officers, who along with the force personnel will be required to wear uniforms. The bill grants the force the authority to make arrests.
The proposed legislation also calls for establishing Mines and Minerals Police Stations and Special Courts to deal with mining-related cases. Decisions of the Special Courts may be challenged in the Sessions Court.
The bill further provides for the creation of an Exploration Promotion Division, mandated to develop a geological database to improve exploration efforts. It also outlines bidding procedures and penalties for violations. Upon passage of the bill, several outdated laws governing the sector will be repealed.
Officials say the objective of the Punjab Mines and Minerals Bill is to create a transparent, investor-friendly, and internationally compliant regulatory system. The law aims to promote scientific and environmentally responsible mining practices while ensuring robust regulatory oversight. It also seeks to streamline the licensing system for investors and strengthen the role and mandate of the Mines and Minerals Department.
The mining sector plays a crucial role in economic growth, job creation, and industrial development in Punjab. The government argues that a modernised legal system is essential to attract investment, enhance transparency, and address emerging sectoral challenges.
