Comparative Chart
KP Mines and Minerals Act: 2017 vs. 2025
This comparative chart highlights key differences between the Khyber Pakhtunkhwa Mines and Minerals Act of 2017 and the new 2025 Act. Each provision is analyzed for its impact on provincial sovereignty, economic control, and governance structures.
| Provision | 2017 Act | 2025 Act | Impact Assessment |
|---|---|---|---|
|
Definition of Strategic Minerals
Section 2
|
Limited to uranium and rare earth elements only. | Expanded to include lithium, cobalt, copper, gold, silver, rare earth elements, and "such other minerals as the Federal Government may, by notification in the official Gazette, declare to be strategic minerals." |
High Impact
Legal
Economic
Creates unlimited federal control potential over provincial mineral resources. |
|
Administrative Structure
Section 3
|
KP Mineral Development Board with provincial representatives and no federal representation. | Licensing Authority with significant federal representation, including Ministry of Energy and Ministry of Finance representatives. |
High Impact
Governance
Legal
Creates direct federal control mechanism over provincial resources. |
|
Authority Powers
Section 6
|
Limited to regulatory functions within provincial framework and subject to provincial government approval for major decisions. | Expanded powers including ability to "enter into agreements on behalf of the Provincial Government with Federal Government, foreign governments... or any other persons" and "direct operations to be conducted on mines." |
High Impact
Governance
Legal
Supersedes provincial government treaty powers and operational control. |
|
Strategic Minerals Licensing
Section 12
|
All minerals subject to same competitive licensing procedures with provincial oversight. | Special procedures for strategic minerals allowing direct grants to "a company owned or controlled by the Federal Government" or joint ventures with federal entities, bypassing competitive procedures. |
High Impact
Economic
Governance
Creates mechanism to transfer valuable mineral rights directly to federal entities. |
|
Revenue Allocation
Section 29
|
80% to Provincial Consolidated Fund, 20% to local development in mining areas. | 30% to Provincial Consolidated Fund, 20% to local development, 25% to Licensing Authority, 25% to Federal Mineral Development Fund. |
High Impact
Economic
Reduces provincial revenue control from 80% to 30%, diverts 25% directly to federal control. |
|
Federal Mineral Development Fund
Section 30
|
No equivalent provision. | Establishes federal fund receiving 25% of provincial mineral revenue with no provincial oversight or input on spending decisions. |
High Impact
Economic
Governance
Direct transfer of provincial resource wealth to federal control. |
|
Environmental Compliance
Section 38
|
Required strict compliance with all provincial environmental laws. | Requires compliance with environmental laws "to the extent they are not inconsistent with this Act." |
Medium Impact
Governance
Creates legal basis to override provincial environmental standards. |
|
Environmental Monitoring
Section 42
|
Provincial environmental agencies retained independent oversight. | "Notwithstanding any other law, the environmental compliance certification provided by the Licensing Authority shall be deemed sufficient for purposes of compliance with environmental standards." |
High Impact
Governance
Bypasses provincial environmental agencies and creates conflict of interest. |
|
Inspection and Enforcement
Section 50
|
Standard provincial inspection regimes maintained. | "No other inspection or enforcement action under any other law shall be initiated against a mineral title holder without prior approval of the Licensing Authority." |
Medium Impact
Governance
Subordinates all provincial regulatory agencies to the Licensing Authority. |
|
Dispute Resolution
Sections 65-70
|
Provincial courts maintained jurisdiction. | "No civil court shall have jurisdiction... Appeals from decisions of the Appellate Tribunal shall lie only to the Supreme Court of Pakistan." |
High Impact
Legal
Governance
Removes provincial judicial oversight and centralizes at federal level. |
|
Override Clause
Section 118
|
No equivalent provision. | "The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law, rule or regulation for the time being in force." |
High Impact
Legal
Places this Act above all other provincial legislation. |
|
Community Development
Section 75
|
Limited provisions for community development. | Expanded community development requirements including mandatory local employment quotas and local business utilization. |
Medium Impact
Economic
Governance
Improves local economic benefits from mining operations. |
|
Mining Cadastre System
Section 10
|
Basic registry system with limited technological implementation. | Modernized digital cadastre system for mineral titles registration and management. |
Low Impact
Governance
Technological improvement but lacks explicit transparency provisions. |
|
Small-Scale Mining
Section 22
|
Limited provisions for small-scale and artisanal mining. | Enhanced framework for small-scale mining with simplified licensing procedures. |
Medium Impact
Economic
Potential benefit for local miners but still subject to centralized control. |
|
Health and Safety
Section 80
|
Basic safety requirements. | Enhanced health and safety provisions with mandatory reporting and independent inspections. |
Medium Impact
Governance
Improved worker protections but enforcement subject to Licensing Authority. |
|
Royalty Rate Setting
Section 25
|
Provincial government set royalty rates through provincial notification. | Licensing Authority determines royalty rates "in consultation with" the federal government. |
High Impact
Economic
Removes provincial control over a fundamental economic lever. |
Summary Analysis
The comparative analysis reveals a consistent pattern of changes that shift control from provincial to federal authorities and entities. Of the 15 major provisions analyzed:
Negative Impact Changes
Positive Impact Changes
Neutral Impact Changes
The most significant changes involve revenue allocation, administrative structure, judicial oversight, and the strategic minerals definition - all of which reduce provincial sovereignty and increase federal control over provincial resources. The positive changes (community development and health/safety provisions) are undermined by the fact that their implementation falls under the control of the federally-influenced Licensing Authority.