To acquire legal approval for mining projects in Khyber Pakhtunkhwa (KP), it is essential to adhere to the stipulations outlined in The Khyber Pakhtunkhwa Mines and Minerals Act, 2017.
The process involves several steps, ensuring compliance with regulatory requirements and promoting sustainable mining practices.
- Understanding Mineral Titles
- The Act distinguishes between titles for large-scale mining, small-scale mining, and minor minerals. The Khyber Pakhtunkhwa Mines and Minerals Act, 2017, Section 2 defines these categories and specifies the requirements for each.
- Large Scale Mining: Requires reconnaissance and exploration licenses before granting a mining lease or mineral deposit retention license.
- Small Scale Mining: Encompasses mining processes that do not fall under large-scale mining or minor minerals.
- Minor Minerals: Includes common resources like bajri, shingle, ordinary sand, gravel, and stones.
- Licensing Authority
- The Khyber Pakhtunkhwa Mines and Minerals Act, 2017, Section 2 specifies that the Licensing Authority varies depending on the scale of the mining operation:
- For large and small-scale mining, a committee constituted under Section 6 of the Act is responsible.
- For minor minerals, the Director-General of Mines and Minerals acts as the Licensing Authority.
- Application Process
- The initial step involves submitting an application to the relevant Licensing Authority. The application must include detailed information about the proposed mining project, such as the location, scale of operation, and environmental impact assessment.
- As held in Major (Rtd.) BASEER AHMAD KHATTAK Versus GOVERNMENT OF KHYBER PAKHTUNKHWA, 2013 CLC 1108, a prospecting license cannot be granted without an open auction in respect of an area having “proved mineral”
- Relavance to User Query: Judgment highlights the essential guidelines for granting prospecting licenses which are essential for starting mining projects.
- Environmental Impact Assessment (EIA)
- Conducting an EIA is an essential step to assess the environmental consequences of the mining project.
- In Public Interest Law Association of Pakistan v. Province of Punjab, 2023 SCMR 969, the Supreme Court emphasized the necessity of conducting environmental impact assessments before granting mining licenses. The assessment should include measures to mitigate potential environmental damage and promote sustainable practices.
- Relevance to User Query: The judgment underscores the importance of environmental considerations in the legal approval process for mining projects, ensuring that projects adhere to environmental regulations.
- In Maple Leaf Cement Factory Ltd. Versus Environmental Protection Agency and others, PLD 2018 Lahore 255, the court clarified the scope and extent of “deemed approval” under environmental law. It reinforces the importance of adhering to statutory timelines for environmental assessments and highlights the application of the Precautionary Principle and “In Dubio Pro Natura” in cases of environmental uncertainty.
- Relevance to User Query: Judgment emphasizes that all the regulatory and assessment should be perforemd ensuring environment standards.
- Approval and Grant of Mineral Title
- If the Licensing Authority approves the application and the EIA, a mineral title (license or lease) is granted.
- Post-Approval Compliance
- Obtaining legal approval is not the end of the process. Mining companies must continue to comply with all relevant laws and regulations.
- In Messrs SINO PAK MINERALS PRIVATE LIMITED Versus SECRETARY MINES AND MINERALS, GOVERNMENT OF BALOCHISTAN, PLD 2017 Balochistan 100, the court underscored the need to ensure that notices are served at the correct address.
- Relevance to User Query: It is crucial for transparency and adherence to principles of natural justice, specifically when adverse actions like the cancellation of a mining lease are being considered.
- regular monitoring, reporting, and adherence to environmental management plans are essential to maintain compliance and avoid penalties.
- Appeals Process
- The Khyber Pakhtunkhwa Mines and Minerals Act, 2017, Section 2 defines “Appellate Tribunal” as the body established under Section 102-A to hear appeals against the orders of the Licensing Authority. Any individual or company aggrieved by a decision of the Licensing Authority can file an appeal with the Appellate Tribunal
- In Malik ISRAEL v. APPELLATE TRIBUNAL MINES AND MINERALS, PESHAWAR and others, PLD 2024 Peshawar 20, the court held that the appeal before the Appellate Tribunal was premature because the Mineral Titles Committee (MTC) had not yet made a final decision regarding the assignment and the petitioner, Malik Israel, a necessary party, was not included in the appeal before the Appellate Tribunal. The case was remanded to the Mineral Titles Committee with the direction to decide the matter afresh.
By following these steps and ensuring compliance with all relevant laws and regulations, mining companies can navigate the legal approval process and contribute to the sustainable development of Khyber Pakhtunkhwa’s mineral resources.
Conclusion:
The legal approval process for mining projects under the KP Mines and Minerals Bill 2025 requires thorough adherence to The Khyber Pakhtunkhwa Mines and Minerals Act, 2017. This entails understanding of the act, licencing process and post approval compliance requirements.