According to Presidential Order 8 of Act 1961 and clause 61 of Land Revenue Act 1967 the rights of all minerals including sand and stone are invested to Government of the Punjab. The Province of Punjab exercised its powers and obligations under the Punjab Mining Concession Rules 2002 framed under the regulation of Mines and Oilfields and Minerals Development (Government Control) Act, 1948 to accommodate the locals for the exploitation of minerals resources on small scale and at the same time contemplate the grant of mining concessions to the foreign entrepreneurs for under taking mega mineral projects falling in the category of large scale mining in Punjab. Under the existing Rules, there is a lot of difference between large scale and small scale mining. The large scale mining can be any mega project either undertaken by the foreign investors or by the local entrepreneurs, involving investment of Rs. 300 million or more in Pakistan currency. All the local chemical and cement manufacturing companies are in the category of large scale mining. The term small scale mining is confined to any mining project in which investment is for an amount less than Rs. 300 million in Pakistan currency. The short term leases for Minor Minerals i-e. Ordinary sand, sandstone, siltstone, slate stone, tuff, basalt & gravel etc, are granted through open auction and are regulated under Punjab Mining Concession Rules, 2002.
Procedures for Grant of Mining Concessions
- Small Scale Mining
- Minor Scale Mining
- Large Scale Mining
The Honorable Chief Minister, Punjab on March 29, 1991 has imposed embargo on grant of prospecting license/mining lease for rock salt in the private sector except to bonafide industrial unit using rock salt as a raw-material.
Procedure For Grant of The Mining Concessions Under Small Scale Mining (Prospecting Licenses/Mining Leases
An application on prescribed form seeking grant of mining concession (prospecting licenses /mining leases) under Small Scale Mining i.e. coal, fireclay, silica sand & gypsum etc. are furnished by hand to the Licensing Authority or his authorized representative in the office of Director General of Mines & Minerals, Punjab. The applicant is required to furnish following documents alongwith application form duly filled in:
- Attested copy of CNIC of individual/partners/Directors of firm/company etc.
- The original copy of the Treasury Challan pertaining to the deposit of the application fee of Rs. 2000/- in the following provincial head of account:
- “CO 3808 Receipts under the Mining and Oil-fields And Minerals Development Act 01 Receipts from rents and royalties, annual fees, charges, Fees, application fee,
- cost of Plans etc.”
- In case of partnership firm, an authenticated copy of partnership deed duly registered with the concerned Registrar of Firm.
- In case of a company, verified copies each of the Memorandum and Articles of Association and Certificate of Incorporation.
- 15 copies of map of the area showing the boundaries of the area in respect of which the license or lease is applied for. The map shall be prepared from Survey of Pakistan Topo Sheet of scale 1:50,000.
- In case of mining concession for coal and metallic minerals, attested copies of the evidence of financial status of the applicant relating to the fixed deposits, Defense Saving Certificates, NIT Shares in the name of the applicant to the extent of Rs. 5.00 lac or statement of Bank transactions for a period of 12 months (not older than a month on the date of filling of application) showing a minimum closing balance of Rs.5.00 lac and reasonable number of transactions of the same amount during the year.
- Evidence of immovable property duly verified by the Competent Authority to the tune of Rs. 15.00 lac. In case, an applicant is unable to produce evidence of immovable property, he/she may furnished additional evidence of his/her capacity to invest cash amount of Rs.15.00 lac.
- Provided in case an applicant is unable to show the cash liquidity at (d i) above he/she may give additional evidence of immovable property for double the amount stated therein.
- In case of mining concessions for all other minerals, attested copies of the documents relating to the fixed deposits, Defense Saving Certificates, NIT Shares in the name of the applicant for Rs.3.00 lac or statement of Bank transitions for a period of 12 months (not older than a month on the date of filling of application) showing a minimum closing balance of Rs. 3.00 lacs and a reasonable number of transactions of the same amount during the year.
- Evidence of immovable property duly verified by the Competent Authority to the tune of Rs.10.00 lac. In case, an applicant is unable to produce evidence of his/her capacity to invest cash amount of Rs. 10.00 lac.
- iProvided in case an applicant is unable to show the cash liquidity at (g i) above he/she may give additional evidence of immovable property for double the amount stated therein.
- The maximum and minimum limits regarding size of the area under a prospecting License/mining lease for coal will be from 250 to 1000 acres for an individual and for private limited company having financial capability/capital of 5.0 million is up to 1500 acres. For all other minerals, it will be from 50 to 300 acres.
- The authorized officers by the Licensing Authority receiving the application complete in all respects and mentions the date & time of its receipt on the application form and there after issue an acknowledgement stating the date & time of receipt.
- After completion of basic requirement, like site inspections, availability of the area, the complete cases are placed before the meeting of the mines committee which consists of the following members:
|
Director Small Mines Assistance/Titles |
Chairman |
|
Director Environmental Facilitation |
Member |
|
Chief Inspector of Mines or his authorizes representative |
Member |
|
Manager, Geological Mapping Headquarter Office |
Member |
|
Section Officer (P&D) (or his authorized representative) Forestry, Wildlife & Fisheries Department |
Member |
|
Section Officer (IMCTT) (or his authorized representative) Finance Department |
Member |
|
Deputy Director Mines and Minerals Headquarter Office |
Secretary |
Mines Committee convenes its meeting normally in each month and after considering working papers approve grants of mining concession (prospecting licenses/mining leases) to the applicants on the principle of priority i.e. “First Come First Serve Basis”. The applicants, whose cases are approved by the Mines Committee, are issued offer letters, requiring applicants to deposit advance annual fee per acre for 3 years and security(on the prescribed rate as notified by the Government from time to time) in shape of cash / Defense Saving Certificate in the following provincial head of account:
“3000000 Deposit & Reserves, B-Not bearing Interest 35000000 Departmental & Judicial deposits 3501015Deposits of Department Mineral Department”
After fulfillment of codal formalities, allotment letters showing the grant of prospecting licenses are issued initially for a period of three years. The licensee is required to furnish copy of accepted plan, copy of the demarcation certificate of the area, copy of prospecting scheme and a copy of geological plan within a period of maximum three months to allow him / her to work in the area after issuance of work order. On satisfactory performance, license is extended for further period of two years thus making total period of the prospecting license upto five years. If a licensee succeeds in proving the mineral then he / she can file application for conversion of prospecting license into long term mining lease, one month before the date of expiry of the license, and also fulfils the prescribed conversion criteria, his/her case is placed before the Mines Committee for its approval regarding conversion of prospecting license into mining lease. The mining leases are granted for a maximum period of 30 years and this period is further renewable. The licensee/lessee is required to pay the royalty on the mineral excavated and dispatched from the area, on the prescribed rates as notified by the Government from time to time.
Procedure For Grant of The Mining Concessions Under Minor Minerals
The Minor Mineral Division, Directorate General of Mines & Minerals Punjab, headed by Director Licensing Minor Mineral, Punjab performs its regulatory work under the part 4 (i.e. Minor Mineral) of the Punjab Mining Concession Rule, 2002. The minor minerals are granted through open auction. The Governor of the Punjab is pleased to constitute the Auction Committee as follows in each District to conduct auction of leases for minor minerals:
- Executive District Officer (Revenue) or his nominee not below BS-17. Chairman
- Representative of the Directorate General of Mines & Minerals, Punjab or his nominee not below BS-17. Secretary
- Representative of the Forest Department, Government of Punjab or his nominee not below BS-17. Member
- Representative of the Irrigation & Power Department, Government of Punjab or his nominee not below BS-17 Member
- Representative of the Environment Protection Department, Government of Punjab or his nominee not below BS-17. Member
- Representative of the Inspectorate of Mines or his nominee not below BS-17. Member
- The Mining Leases for Minor Minerals (ordinary sand, sandstone, silt stone, slate stone, tuff, basalt & gravel) are granted through open auction. Government of the Punjab (Secretary Mines & Minerals Department) has constituted a committee under PMC Rules 2002 including Executive District Officer (Revenue) concerned act as Chairman whereas Assistant Director Mines & Minerals/Representative of the Director General Mines & Minerals acts as Secretary District Auction Committee. Whereas an officer (not below grade-17) of Forest Department, Irrigation Department, Inspectorate of Mines and Environmental & Facilitation Department of Government of the Punjab are the members of each District Auction Committee. According to PMC Rules, 2002, three members including Chairman or his authorized representative complete quorum of the committee, Copy of the notification is enclosed as Annex.A
- Under the prevailing rules, the Deputy / Assistant Director (Mines and Minerals) of Regional & Sub offices of this Directorate have been declared as Secretary, District Auction Committee of the concerned district. After every three to four months, all Secretary District Auction Committee of Punjab prepare a list of vacant or be vacated blocks / zone and newly created blocks / zones of minor minerals. These list from all Regional & Sub offices of the Directorate are sent to Licensing Authority of minor mineral i.e. Director Licensing (Minor Minerals) for approval. The Licensing Authority prepare a consolidated list of vacant, to be vacated block / zones, all District of Punjab and get it published in national press. After publishing the advertisement for auction of minor minerals of all District of the Punjab, the Secretary District Auction Committee of sub offices and regional offices do prepare schedule of auction and bid sheets for each blocks of minor minerals giving bidding history of at least previous five years. The persons or parties interested to take part in open auction of miner minerals get registered themselves with Secretary District Auction Committee at least one day before the date of auction. The said registration remains valid for one year. Hence registered party/ person can take part in all auctions scheduled to be held during the period of one year. In short this procedure is repeated after every three / four months and almost one open auction is conducted in each month.
- After completion of auction proceedings, the records of auction proceedings with all bid sheets having the bidding history of previous five years are sent by Secretary District Auction Committee through the Deputy Director concerned to Licensing Authority. The Secretary District Auction Committee and Deputy Director concerned give their recommendations on the bid sheets. The Licensing Authority gives its decision on the bid received in an open auction. In case the bid is accepted, the successful bidder is asked to deposit security amount (1/4th of the bid money). As soon as the security is deposited by the successful bidder, the allotment letter is issued to him. The allotment letter for ordinary sand and gravel are issued for a period of two years whereas the auction of sand stone etc. are conducted for five years and accordingly the allotment letter are issued for a period of five years. The payment schedule for sand / gravel is on six monthly basis whereas for sand stone etc. on yearly basis. 1/4th amount of total bid for sand /gravel and 1/5th amount for sand stone are deposited at the fall of hammer on the day of auction.
- The Plans of mining leases for minor minerals are prepared by giving the co-ordinates of each corner of the traverse from the topo sheets of Survey of Pakistan. In case of any dispute between the two adjacent leases of minor minerals or a complaint regarding unauthorized working by lessee, demarcations of the disputed area are conducted by the Survey and Drawing Officer and Surveyors of the Directorate.
- Stoppage and monitoring of unauthorized working of minor minerals is one of the essential function of regional and sub offices of the Directorate. For this purpose Deputy Directors/ Assistant Directors/ Mineral Development Officers/ Survey and Drawing Officer and Field Inspector of the Directorate regularly and frequently perform field visits. F.I.R. (s) is lodged and assessment of unauthorized work is made against the culprits involved unauthorized working of minor minerals. The assessments of unauthorized excavated minerals are placed before the Licensing Authority who after providing personal hearing to the defaulters order for recovery of assessed amount. The recoverable amount is recovered either directly from the defaulter or by him or through the officers of revenue offices of the concerned districts as arrears of land revenue through Tehsildar recovery of Revenue Department.
Procedure for Grant of Concession Names of Titles Their Acreage Fees Etc Under The Chapter of Large Scale Mining of The Punjab Mining Concession Rules 2002
The following Mineral titles subject to Punjab Mining Concession Rules 2002 may be granted for the purpose of Large Scale Mining namely:
- Reconnaissance Licence
- Exploration Licence
- Mineral Deposit Retention License
- Mining Lease
Of the above mentioned four titles Exploration License and Mining Lease are the most popular and common titles granted by this Directorate. The procedure for the grant of these concessions is as follows:
Exploration License
(Rule 21—31 Punjab Mining Concession Rules, 2002 are applicable) an individual / Company under rule 16 of Punjab Mining Concession Rule, 2002 may apply for grant Exploration Licence by submitting the following documents:
- Application Form duly complete in all respects.
- An original Challan of Rs.25,000/- as application fee.
- In case of a company or Limited companies proper evidence of paid-up capital of Rs.1.4 Million duly verified by the relevant authority not older then one year furnished alongwith Memorandum and Articles of Association clearly showing the list of Directors, Authorized and paid-up capital
- In case of individual financial status and detail of technical resources be attached
- 14 copies of the sketch plan of the applied for area not exceeding 500 Squire Kilometers
- Comprehensive Geological description of the applied for area, Particular of programme of exploration, estimated expenditures, Anticipated effects on the environment and measures taken for its prevention
- Period not exceeding three years for which the Exploration Licence is required
An application for the Exploration Licence shall not be granted to an applicant if the applicant is in default at the time of the application, proposed programme of exploration operations to be carried on and the technical and financial resource to carry an exploration operation not satisfied on reasonable ground.
On receipt of the application completed in all respects by the Incharge One Window Operation of the Directorate in Headquarter’s office during office hours an acknowledgment is issue to the applicant (Individual / Company).
Further process on the application is done by the Mining Concession Branch which is as follows:
- An Original Challan of application fees removed by the Accounts Branch of the Directorate and the endorsement is provided.
- An overloading sketch plan clearly showing the earlier applied for / granted areas for different minerals over the instant applied for area is prepared by the drawing branch of the Directorate.
- An inspection report is called for from the concerned regional / sub office of the Directorate about the suitability and simultaneous working the applied for minerals with other minerals on the same area applied by different parties.
- On receipt of the requisite inspection report on facts, the subject case is placed before the Mines Committee Large Scale Mining (Comprised upon a number of 8 members notified by the Government having Directorate General Mines & Minerals as Licensing Authority / Chairman) along with its Working Paper showing all facts and figures of the case in detail regarding its grant.
- Mines Committee considers such cases and decides whether the Exploration License is granted or the applications are rejected
- Offer letter for the granted area or the rejection letter as per decision taken by the Mines Committee Large Scale Mining is issued under certain Terms & Condition for compliance
- On receipt of the compliance made by the applicant a formal allotment letter alongwith used terms & condition of the Exploration Licence is issued over the offered area is issued to the applicant
- Work order is issued to the applicant after the necessary compliance regarding acceptance of the granted area, demarcation certificate and development schemes etc
Mining Lease
Rules 45—56 Punjab Mining Concession Rules, 2002 are applicable) an application for the grant of mining Lease only be made by a body corporate formed by or under a law for the time being enforce in Pakistan by submitting the following documents:
- An application Form duly complete in all respects.
- An original Challan of Rs.1, 00,000/- as application fee.
- In case of limited company proper evidence of paid up capital of Rs. 1.4 Million duly verified relevant authority not older than one year shall be furnished alongwith Memorandum and Articles of Association clearly showing the list of Directors, Authorized and paid-up capital.
- 14 copies of the sketch plan of the applied for area not exceeding 250 Square Kilometers.
- Technological report of Mining treatment possibilities.
- Feasibility Studies, detailed plans for development and operation of the Mine and the programme of proposed Mining operation including a for cost of:
- The date by which the applicant intends to work for profit.
- The capacity of production and scale of operations.
- The anticipated overall recovery of ore and mineral products: and
- The nature of the products
- Be accompanied by an environmental impact assessment in terms of the Environmental Protection Act 1997 and shall identify the extent of any adverse effect which the plan for development and operation of the mine and the carrying out of the programme of proposed mining operations would be likely to have on the environment and on any monument or relic in the area over which the lease is required, and proposals for eliminating or controlling that effects
- Present proposals for the prevention of pollution, the treatment and disposal of wastes, the safeguarding, reclamation and rehabilitation of land disturbed by mining operations, the protection of rivers and other sources of water and for monitoring and managing of any adverse effect of mining operations on the environment.
- Identify and particular risks (whether to health or otherwise) involved in mining the minerals or group of minerals which it is proposed to mine, and proposals for their control or elimination
- Give or be accompanied by statement giving a detailed forecast of capital investment, operating costs and revenues and the anticipated type and source and extent of financing
- Be accompanied by a statement giving particulars of expected infrastructure requirements
- State the period for which the lease is required