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Tuesday, April 29, 2025

KP government faces criticism over proposed amendments to mines and minerals law

The 2025 Khyber Pakhtunkhwa Mines and Minerals Bill has been criticized by PTI politicians and activists. Aleema Khan, sister of PTI founder Imran Khan, urged the government to hold off on the legislation until her brother’s approval could be secured following his release from jail. The criticism led Chief Minister Ali Amin Khan Gandapur to reject what he called “rumors and misconceptions” about the proposed amendments.

The bill, introduced on April 4, encountered resistance from both ruling and opposition members of the provincial assembly. Critics, including former minister Shakeel Ahmad, expressed concerns over its long-term impact, accusing the government of compromising the province’s interests in favor of the federal Special Investment Facilitation Council (SIFC). He claimed the council, through its associated companies, had undue influence over key sectors like minerals, agriculture, and tourism.

Key changes in the bill include establishing licensing and exploration sections as well as a provincial mines and minerals force. While it provisions landowner rights and community training, critics say it does not guarantee local communities a share of the mining proceeds. Another contentious aspect involves the federal mining wing’s expanded advisory role, which critics argue undermines provincial autonomy as protected by the 18th Constitutional Amendment.

The bill also proposes increasing the Mineral Investment Facilitation Authority (MIFA) members from seven to 14, incorporating more ministers and granting the chairperson powers to add co-opted members. Additionally, the legislation sets Rs500 million as the threshold for large-scale mining investments, mandating joint ventures with government-owned companies for such projects. Smaller miners, however, feel the proposed Rs25 million bank guarantee is prohibitive.

Sherbandi Khan Marwat, president of the Frontier Mine Owners Association, criticized the federal Harmonisation of Minerals Act, saying it ignored stakeholders’ concerns and favored large corporations over small-scale miners who generate significant revenue and jobs in KP. He also accused the bill of erasing distinctions between large and small-scale mining, further marginalizing smaller operators.

Despite these criticisms, officials from the mines and minerals department defended the bill, stating it aligns with global mining regulations and reflects substantial input from stakeholders. According to them, 60% of the draft mirrors the existing law. However, concerns remain over the bill’s impact on KP’s economic sovereignty and the livelihoods of its communities.

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