KHYBER PAKHTUNKHWA MINES AND MINERALS ACT, 2025 A Bill to provide to develop an internationally competitive, stable and enabling environment for domestic and foreign investment in the mining and minerals sector in the Province of Khyber Pakhtunkhwa; WHEREAS, it is expedient to provide to develop an internationally competitive, stable and enabling environment for domestic and foreign investment in the mining and minerals sector in the Province of Khyber Pakhtunkhwa, by the establishment of efficient and transparent administrative, legal and fiscal frameworks, which are substantially consistent with the administrative, legal and fiscal frameworks, implemented by each other Province in the Islamic Republic of Pakistan, and matters ancillary thereto and connected therewith; It is hereby enacted by the Provincial Assembly of Khyber Pakhtunkhwa as follows: CHAPTER I PRELIMINARY Section 1. Short title, extent and commencement (1) This Act may be cited as the Khyber Pakhtunkhwa Mines and Minerals Act, 2025. (2) It extends to the whole of the Province of Khyber Pakhtunkhwa. (3) It shall come into force at once. Section 2. Definitions (1) In this Act, unless there is anything repugnant in the subject or context- (a) "beneficial owner" means any individual who ultimately owns or controls a license holder or applicant or the individual on whose behalf an activity is being conducted, and includes persons who exercise ultimate effective control over a license holder; (b) "development area" means an area subject to a development permit; (c) "development permit" means a permit granted under Section 43; (d) "discovery" means the finding of minerals through an exploration operation; (e) "Environment Protection Order" means an order issued by the Licensing Authority under Section 89; (f) "exploration" means intentionally searching for minerals using geological, geophysical or geochemical techniques, or other methods, including drilling or excavations, but does not include development or production; (g) "exploration area" means an area subject to an exploration license; (h) "exploration license" means a license granted under Section 37; (i) "Federal Government" means Federal Government of the Islamic Republic of Pakistan; (j) "Government" means the Government of Khyber Pakhtunkhwa; (k) "license" means, as the context may require, an exploration license, mining lease, mineral permit, or mineral title; (l) "license holder" means the person to whom a license has been granted; (m) "Licensing Authority" means the Mines Committee, constituted under Section 11; (n) "mine" when used as a noun, includes all excavations for the purpose of searching for or extracting minerals; (o) "mineral" means all surface and sub-surface natural deposits of minerals and all types of ores containing one or more minerals and their products, but does not include oil, natural gas and other petroleum resources; (p) "mineral title" means an exploration license or a mining lease; (q) "mining" means extracting minerals from the earth by any method; (r) "mining area" means an area subject to a mining lease; (s) "mining lease" means a lease granted under Section 54; (t) "person" includes an individual, company, association of persons, body of individuals whether incorporated or not; (u) "strategic minerals" means minerals notified as such by the Federal Government; and (v) "tribe" means tribe as defined in the Khyber Pakhtunkhwa Land Acquisition Act, 2020. CHAPTER II ADMINISTRATION Section 3. Control over minerals (1) Subject to the provisions of this Act, control over all minerals within, upon or underlying any land, including all minerals in the territorial waters, the continental shelf and the exclusive economic zone of Pakistan that fall within the Province, is and is hereby vested in the Government. (2) All minerals are the property of the Government, regardless of whether the land in which they are found belongs to the Government or any other person. Section 4. Licensing Authority The Licensing Authority shall be responsible for- (a) accepting and processing applications for the grant, renewal, assignment, surrender and withdrawal of licenses; (b) grant, refuse, suspend or revoke licenses under this Act; (c) collection of all fees, charges, rents, royalties and penalties; (d) making rules and regulations for the purposes of this Act; and (e) such other duties and functions as may be assigned to it by the Government. CHAPTER III MINERAL RIGHTS Section 5. Mineral rights No person shall engage in mining operations except under the authority of a license granted under this Act. Section 6. Eligibility for grant of mineral rights (1) Subject to the provisions of this Act, mineral rights may be granted to- (a) a citizen of Pakistan; (b) a company or body corporate organized and existing under any law in force in Pakistan; or (c) an association of persons, provided that the majority of its members are citizens of Pakistan. (2) No mineral right shall be granted to- (a) any person who is, or becomes, ineligible to hold a license under this Act; (b) any person who has been convicted of an offence under this Act; or (c) any person who has provided false information or failed to disclose material information in an application for a license. CHAPTER IV EXPLORATION LICENSE Section 7. Right to apply for exploration license Subject to the provisions of this Act, any person qualified under Section 6 may apply for an exploration license in respect of any area within the Province. Section 8. Application for exploration license (1) An application for an exploration license shall be submitted to the Licensing Authority in the prescribed manner and shall include- (a) identification of the area applied for; (b) an exploration work program; (c) an environmental management plan; (d) evidence of technical and financial capability; and (e) such other information as may be prescribed. (2) The application shall be accompanied by the prescribed fee. Section 9. Grant of exploration license (1) The Licensing Authority may, on an application made under Section 8, grant an exploration license if it is satisfied that- (a) the applicant has the necessary technical and financial capability; (b) the proposed work program is adequate; and (c) the application otherwise complies with the requirements of this Act. (2) An exploration license shall be valid for an initial period not exceeding three years and may be renewed for two additional periods, each not exceeding two years. CHAPTER V MINING LEASE Section 10. Right to apply for mining lease The holder of an exploration license who has discovered minerals within the exploration area may, during the validity of the exploration license, apply for a mining lease in respect of the whole or any part of the exploration area. Section 11. Application for mining lease (1) An application for a mining lease shall be submitted to the Licensing Authority in the prescribed manner and shall include- (a) identification of the area applied for; (b) a mining plan; (c) an environmental impact assessment; (d) a social impact assessment; (e) a rehabilitation and closure plan; and (f) such other information as may be prescribed. (2) The application shall be accompanied by the prescribed fee. Section 12. Grant of mining lease (1) The Licensing Authority may, on an application made under Section 11, grant a mining lease if it is satisfied that- (a) the applicant has the necessary technical and financial capability; (b) the mining plan is technically and economically feasible; (c) the environmental impact assessment, social impact assessment, and rehabilitation and closure plan are satisfactory; and (d) the application otherwise complies with the requirements of this Act. (2) A mining lease shall be valid for a period not exceeding twenty-five years and may be renewed for additional periods, each not exceeding fifteen years. CHAPTER VI GENERAL PROVISIONS RELATING TO LICENSES Section 13. Rights conferred by licenses (1) An exploration license confers on the license holder the exclusive right to carry out exploration operations in the exploration area for the minerals specified in the license. (2) A mining lease confers on the license holder the exclusive right to carry out mining operations in the mining area for the minerals specified in the lease. Section 14. Obligations of license holders (1) A license holder shall- (a) carry out operations in accordance with good mining practices; (b) comply with all applicable laws relating to health, safety, and environmental protection; (c) pay all fees, rents, royalties, and other charges payable under this Act; (d) maintain complete and accurate records of operations; (e) submit to the Licensing Authority such reports and information as may be required under this Act; and (f) comply with any other conditions specified in the license. Section 15. Suspension and revocation of licenses (1) The Licensing Authority may suspend or revoke a license if the license holder- (a) fails to comply with any provision of this Act or the conditions of the license; (b) submits false or misleading information; (c) fails to pay any fee, rent, royalty, or other charge payable under this Act within the prescribed time; (d) becomes ineligible to hold a license under this Act; or (e) contravenes any provision of any other law in force in Pakistan relating to mining operations. (2) Before suspending or revoking a license, the Licensing Authority shall give the license holder written notice of the proposed action and an opportunity to remedy the default within a specified period. CHAPTER VII FINANCIAL PROVISIONS Section 16. Fees, rents, and royalties (1) The holder of a license shall pay to the Government such fees, rents, and royalties as may be prescribed. (2) Royalties shall be payable at the rates specified in the First Schedule to this Act. Section 17. Surface rent The holder of a mining lease shall pay surface rent to the owner of the land at such rate as may be prescribed or as may be agreed between the lease holder and the land owner. CHAPTER VIII HEALTH, SAFETY, AND ENVIRONMENT Section 18. Health and safety (1) The holder of a license shall ensure that mining operations are carried out in a manner that ensures the safety and health of workers and the public. (2) The Government may make regulations prescribing safety standards and procedures to be observed in mining operations. Section 19. Environmental protection (1) The holder of a license shall take all reasonable measures to protect the environment from damage or pollution arising from mining operations. (2) Before commencing mining operations, the holder of a mining lease shall- (a) prepare and submit to the Licensing Authority an environmental impact assessment; and (b) obtain all necessary environmental approvals required under the environmental laws of Pakistan. Section 20. Rehabilitation and closure (1) The holder of a mining lease shall prepare and implement a mine rehabilitation and closure plan approved by the Licensing Authority. (2) The holder of a mining lease shall provide financial assurance for the performance of rehabilitation obligations in such amount and form as the Licensing Authority may determine. CHAPTER IX OFFENCES AND PENALTIES Section 21. Offences and penalties (1) Any person who- (a) engages in mining operations without a valid license; (b) provides false or misleading information in an application for a license or in any report or document submitted under this Act; (c) obstructs an authorized officer in the performance of his duties under this Act; (d) removes or disposes of any mineral contrary to the provisions of this Act; or (e) contravenes any other provision of this Act, shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding five million rupees or to imprisonment for a term not exceeding three years, or to both. Section 22. Offences by companies Where an offence under this Act is committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. CHAPTER X MISCELLANEOUS Section 23. Power to make rules The Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Act. Section 24. Power to make regulations The Licensing Authority may, with the approval of the Government, make regulations for carrying out the purposes of this Act. Section 25. Act to override other laws The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. Section 26. Repeal and savings (1) The Khyber Pakhtunkhwa Mines and Minerals Act, 2017 is hereby repealed. (2) Notwithstanding the repeal of the Khyber Pakhtunkhwa Mines and Minerals Act, 2017, all licenses granted under that Act and in force immediately before the commencement of this Act shall continue to be valid until their expiry, and shall be deemed to have been granted under this Act. FIRST SCHEDULE (See Section 16(2)) RATES OF ROYALTY 1. Precious stones 10% of the market value 2. Precious metals 7% of the market value 3. Base metals 5% of the market value 4. Industrial minerals 3% of the market value 5. Construction minerals 2% of the market value