The Khyber Pakhtunkhwa (KP) government introduced the Mines and Minerals Act 2025 in the provincial assembly on April 4, aiming to boost the province’s valuable mineral resources and increase provincial revenue.
However, the bill’s introduction was met with immediate and strong opposition. Former provincial minister and PTI leader Shakeel Ahmad Khan delivered a fiery speech in the assembly, accusing the government of a conspiracy to loot the province’s resources and, in effect, the country’s resources. He argued that the Act contradicts provincial autonomy granted after the 18th Constitutional Amendment and is against the Constitution of Pakistan. He questioned how the cabinet approved and presented such a bill. Khan called for the bill’s immediate rejection. His criticism sparked a heated debate on social media.
Social media war within PTI over the minerals bill:
The Mines and Minerals Act ignited a fierce debate on social media within the PTI. PTI workers and leaders leveled accusations against fellow party members. One faction condemned the bill as a plunder of provincial resources, while another claimed it aligns perfectly with provincial authority. This internal conflict between pro- and anti-government factions within the PTI escalated significantly on social media. Provincial ministers claimed the bill would promote employment and legal mining, while opponents alleged it would allow outsiders to seize control of the resources.
Opponents highlighted the bill’s provision for granting 30-year leases to non-locals, a point the government countered by framing it as an opportunity for investment in the province. One PTI faction accused the provincial government of working on the agenda of its opponents, with workers accusing Chief Minister Ali Amin Gandapur and the provincial government of implementing an establishment-backed plan against the interests of local businesses. Significantly, much of the criticism was based on assumptions and internal disagreements, with few individuals actually studying the bill’s content.
Details of the Mines and Minerals Act
The KP government drafted the Khyber Pakhtunkhwa Mines and Minerals Bill to regulate the mineral sector, promote investment, and ensure local development. The bill aims to make the mining system transparent, efficient, and aligned with modern requirements. It establishes a new autonomous body, the Khyber Pakhtunkhwa Mineral Development Authority, responsible for exploration, licensing, agreements, and oversight of minerals. This authority will have technical, financial, and administrative autonomy, headed by a Director General of Minerals.
Mineral committees will also be established at the district level to ensure local monitoring and efficient complaint resolution, headed by Deputy Commissioners. The bill categorizes mineral resources into three types: major minerals, minor minerals, and strategic minerals. It introduces e-auctions, digital applications, and transparency principles for licensing. An alternative dispute resolution system is provided to reduce the burden on the judicial system and ensure swift justice. An appellate tribunal headed by a Peshawar High Court judge will handle complaints. All mineral areas will be registered using Geographic Information System (GIS) mapping, and a digital system will monitor mining activities in real-time.
Local Communities: Employment, social protection, and transparency:
The Act includes four clauses (sections 79-82) concerning regional protection, employment provision, and basic amenities. Before commencing any mining project, a “Social Impact Assessment” and a “Social Impact Management Plan” must be submitted. This assessment will include the needs of the local population, potential negative impacts (displacement or cultural damage), and data collection methods. Companies must present a comprehensive plan to ensure employment, infrastructure, and other amenities according to local expectations; failure to do so may result in lease rejection. The Act emphasizes employing local Pakistani residents, mandating that large-scale companies spend at least 1% of their annual costs on local training. Violations are punishable by fines up to 20 lakh rupees and imprisonment. Companies are required to procure goods and services locally to boost the local economy.
Dispute over rare Earth and strategic metals:
The Act focuses significantly on two types of metals (not explicitly named): rare earth metals and strategic metals. Leases and tenders for both require federal government approval, and any international investor must come through the State Investment Facilitation Council (SIFC). While the Act doesn’t define these metals, internationally, rare earth elements include lanthanum and 15 associated metals (lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium). These shiny, soft metals are mostly silvery-white. Neodymium and samarium are used in magnets (neodymium in powerful magnets for headphones and electric vehicles), europium in phosphors for TV and mobile screens, cerium in solar panels and batteries, gadolinium in nuclear reactors, lanthanum in camera lenses, and praseodymium in aircraft engines. Pakistan’s Khyber Pakhtunkhwa and Balochistan provinces have lanthanide deposits, but their exploitation is limited due to inadequate mining and refining.
Strategic metals include the platinum group (platinum, palladium, rhodium, ruthenium, osmium, iridium), along with iron, cobalt, nickel, copper, and zinc. These metals have limited supply and high demand, crucial for technology, defence, energy, and industry. Their scarcity poses a national security risk. They are used in catalytic converters, electronics, medical devices, and high-tech industries, playing a vital role in hydrogen fuel cells and green energy. Their heat resistance and anti-corrosive properties are essential for weapons, satellites, and space technology. Their scarcity makes their locations geopolitically sensitive.
A March executive order by US President Donald Trump aimed to boost the production of critical minerals for economic and national security, listing 35 strategic and critical minerals (platinum group metals, rare earth elements, lithium, cobalt, tungsten, niobium, manganese, and uranium) used in electronics, satellites, weapons, electric vehicles, batteries, and green energy technologies.
Gandapur’s version:
KP Chief Minister Ali Amin Gandapur dismissed the criticism of the Mines and Minerals Act 2025 as baseless and false propaganda, suggesting it stems from personal animosity. In a video statement, he denied that the bill grants any authority to the federal government or any other entity. He expressed regret that his opponents were spreading misinformation without verification. He stated that the Act would crack down on illegal mining (confiscating and auctioning machinery), add value to precious minerals, and extend lease durations for those investing over 50 crore rupees and adding value. Shorter lease durations are planned for those who fail to meet these criteria.
