After the passage of the 18th Constitutional Amendment mining has now become a provincial jurisdiction. Each province in Pakistan has their own mining law. The mining laws for each province are as follows:
- For the province of Balochistan the mining legislation is the Mines and Minerals Act 2025.
- For the province of Punjab the mining legislation is the Punjab Mines and Minerals Act 2025
- For the province of Sind the mining legislation is the Sind Mines and Minerals Governance Act 2021 and the Sind Mining Concession Rules 2002
- For the province of Khyber Pakhtunkhwa, the mining law is the Khyber Pakhtunkhwa Mines and Minerals (Amendment) Act 2025
- For the area under Gilgit Baltistan the mining law is the Gilgit Baltistan Mining Concession Rules 2016 and amended in 2024
- For the area under Kashmir the mining law is the Azad Jammu and Kashmir Mines Act 1977.
With the location of the Tethyan Belt and the mining project of Reko Diq located in Balochistan we have relied on the Mines and Minerals Act 20025 of Balochistan in reply to most of the questions within this guide. It also helps that generally the legislation for issue Mineral Titles is wholly similar with the legislation in the other provinces too.
With the focus of the Government of Pakistan towards the mining industry, most of the provinces have either enacted new investor friendly laws or amended existing laws. The resource rich provinces of Balochistan and Khyber Pakhtunkhwa have both enacted new investor friendly mining laws in 2025.
Following the settlement of the long ongoing dispute between Government of Pakistan and Barrick Gold Corporation, the Government of Pakistan passed the Foreign Investment (Promotion and Protection) Act 2022 which primarily protects the investment of Barrick from any future privatization or government take over and also provides relief to the project in terms of taxes. This protection is not only for the Barrick Gold Reko Diq Project, it is in fact protection for any sizable mining investment in Pakistan. This law is a landmark law in ensuring investor confidence in the mining sector.
No specific treaties for mining.
Each province in Pakistan has a separate department for mines and minerals. The departments have complete powers in terms of award and cancellation of mineral titles.
Following the settlement between the Government of Pakistan and Barrick Gold the approach of the regulators has become extremely investor friendly.
The mining industry has huge potential in Pakistan. With the production for the Reko Diq project set to commence from 2028, this potential is now being fully realized. With world class projects like Reko Diq, the mining industry is bound to improve rapidly.
Provinces like Balochistan and Khyber Pakhtunkhwa are known for large scale mining for minerals like Copper, Gold and Rare Earth Metals. Minerals such as gem stones and granite are also mining in the areas of Khyber Pakhtunkhawa and Gilgit Baltistan. Coal is another key mineral mined in Balochistan Sind. Salt has been mined since long in Punjab.
Rare Earth Minerals and Uranium are deemed strategic. Reserved for Government bodies such as the Atomic Energy of Pakistan.
A number of local as well as international mining companies are currently working in Pakistan. Worth mentioning are Barrick Gold Corporation, Metallurgical Corporation China (MCC), Mari Energies, Engro.
Prospecting license, small scale mining lease, gemstone mining permit.
Prospecting and exploration licenses are issued for such activities. These are usually issued for large scale mining.
Most of the mines and mineral departments require proof of technical know-how, financial viability, prior experience before awarding a license.
The procedure for obtaining a license is provided within the various mining laws of the provinces. The license is applied to the Department of Mines and Minerals after fulfilling requirements provided within the law including technical know how. There is no fixed time provided on how long the department takes in issuing a license, with their investor friendly policies the departments do not take long in issuing licenses.
The provincial mining laws all provide that an applicant must have a national tax number. Only a locally incorporated company, a branch office or a natural person can have a national tax number. This means that a foreign company cannot directly hold an exploration license but a locally incorporated subsidiary of a foreign company holding a national tax number can hold such a license.
The various provincial mining laws have their own fees regime. With most of the laws having been recently enacted the provision for payment of fees for each type of license has been mentioned within the law as that which shall be determined by the Mines and Minerals Department under such law.
In Balochistan a Reconaisance lisence is issued for 01 year, an Exploration lisence is issued for 04 years and a Mining Lease for large scale mining for 30 years. The process for renewal involves applying to the Mines and Minerals Department and for providing evidence of work done and for reasons for renewal.
A Title holder is to comply with all the terms and conditions of the lisence/lease. Conserve the environment and wildlife. Properly close a mine head. Remove all plant and structures which are not being used in order to protect the environment. Use water in accordance with law. Notify the Mines Department of the discovery of any rare earth mineral, strategic mineral, nuclear or oil discovery. Employ local population.
50% of the area of the Exploration License has to be relinquished at the time of renewal.
Other than a Reconnaissance License and a Temporary Permit an applicant can apply for the transfer of a license. Transfer can be made to a Firm or Company and all the conditions that had bene imposed upon the original Title Holder in respect of the law shall be applicable to the proposed Transferee.
Yes the Exploration License holder is given priority when applying for a mining right.
A Exploration License Holder is given priority when applying for a Mining Lease in respect of the same area.
The Title Holder shall commence mining operations with 06 months of the grant of the mining lease. Fulfill all the conditions of the Exploration License.
There are no other charges other than the official fees to be paid to the Licensing Authority.
The duration of Mining Lease is 30 years.
A locally incorporated Company or Firm can hold a Mining Lease. A foreign operator can hold a Mining Lease through a locally incorporated company.
They do not.
The role of the state is limited to licensing and security unless a company enters into a JV with the state as is case with the Reko Diq Project.
There are no such requirements.
Mining rights can be transferred to another company and/or firm. All terms and conditions of the Mineral Title and other provisions of the law applicable to the title holder shall also be applicable on the transferee.
Not as a condition with in the law. However financial guarantees including bank guarantees can be required by the licensing authority of applicants when specific performance is required.
It is a condition of the awarded mining lease that the lease holder shall secure the mine head upon completion of the work and return and rehabilitate the area and environment in and around the lease area.
Yes ming rights and surface rights are bot distinguishable from each other. Surface rights are either acquired through the board of revenue of the province within which the surface rights are located or in the case of privately held surface rights, rent is paid to the owner of the surface rights.
The operator is to pay rent to the private surface rights owner and in return the land owner shall allow use of the surface rights.
No process for mandatory acquisition of surface rights are provided within the mining law.
No such title issues are applicable.
No other rights required.
A Title holder shall submit a report in respect of the Mineral Title to the Environmental Protection Agency and shall obtain permission from the same.
Ensure that they take care of the environmental forestry and report any environmental accidents to the Director General of the Environment Protection Agency.
It shall be a condition of the Mining Lease that the operator shall effectively close the mine in a manner where the area is returned to its original position both operationally and particularly environment wise.
Breach shall be an offence under the law.
The Environment Protection Agency both at the provincial and federal level. The Licensing Authority to the extent of the fulfillment of the terms and conditions of the mineral title dictated by the Authority.
The regulator has laid stress upon the protection of the environment. Submission of an Environmental Impact Assessment is part of an application for Mineral Titles.
The law which deals with health and safety for the mining industry is the Mines Act 1923 and is very archaic and outdated.
No reporting requirements presently exist.
No requirements presently exist.
With evolving mining legislation, operators should adopt international standards on health and safety.
Labour inspectors under various labour legislation and inspectors under the Mines Act 1923.
Not enough importance has been given by the regulator to this area. The Licensing Authority does require a safety plan be submitted when applying for an exploration license and/or mining lease but no specific enforcements are provided.
The Ministry of Commerce’s Export Policy Order 2020 as well as Customs Rules will apply for export.
The same would be governed by the Ministry of Commerce’s Export Policy Order 2020 and the Customs Rules.
No separate taxes are charged on mining operations. Royalties are yet to be determined under the newly formed laws. The Foreign Investment (Promotion and Protection) Act 2022 provides exemptions for large scale mining projects from taxes.
The Foreign Investment (Promotion and Protection) Act 2022 provides exemptions for large scale mining projects from taxes.
Consider having the areas of their mining operations designated as an export processing zone.
No such changes have been made.
No sperate forums are provided. The disputes would fall under the civil procedure code of Pakistan and be taken up by civil courts or a petitioner would move the high court challenging specific orders of the licensing authority.
Payments of royalty and grant of Mineral Titles.
The dispute which put the Pakistan mining industry on the map involved the dispute between Barrick Gold Corporation and Antofagasta Mineral’s subsidiary Tethyan Copper Company. The subsidiary was named after the Tethyan Belt on which the company’s project Reko Diq was situated. The matter took 11 years to resolve and moved from the Supreme Court of Pakistan to the international arbitration forum of ICSID. After the companies won in 2021, Government of Pakistan and Balochistan negotiated as settlement by allowing Barrick Gold to once again start working on the Reko Diq project.
The Reko Diq dispute sent a very negative message to foreign investors. The role of the Supreme Court of Pakistan in particular had acted in discouraging foreign investment in the mining sector. The resolution of the dispute and the successive disarming of the legislature of the Supreme Court and High Courts has resulted in the eradication of the wayward and uncontrollable constitutional jurisdiction which had led to disputes such as the Reko Diq dispute.
The subsequent enactment of investor friendly mining laws and in particular the enactment of the Foreign Investment (Promotion and Protection) Act 2022 had worked towards normalizing investor confidence in the mining sector.
Pakistan has successfully held various mining conferences and international mining companies have started showing a significant interest in the mining sector in particular in Balochistan.
Legislation has now ensured that superior courts in Pakistan will not be able to take up investment related disputes.
The prevailing trends are extremely encouraging. Reko Diq is said to start production by 2028.
Be honest in your submissions to the government. Partnership with the government ensures the interest of the government in mining ventures which in turn guarantees security for investors. Engage with the government.
