Govt to establish Minerals Division for focused sector development

The federal government has decided to establish a dedicated Minerals Division to streamline and enhance the development of the country’s mineral sector. The initiative aims to attract local and foreign investment and provide a structured framework for mineral exploration and regulation.

According to a news report, Prime Minister Shehbaz Sharif has formed an Inter-Provincial Committee (IPC) to develop comprehensive terms of reference (ToRs) for the division. The committee will be headed by Federal Minister for Law and Justice Azam Nazir Tarar, with Federal Minister for Investment Bilal Azhar Kayani, senior officials, and private sector mineral experts as members.

The committee will outline the division’s objectives, functions, and structure, ensuring the launch of the first phase of mineral sector investment projects. Recommendations will be submitted to the Prime Minister within two weeks, starting from December 27, 2024.

At a recent meeting of the Executive Committee of the Special Investment Facilitation Council (SIFC), the Secretary of Petroleum reported on progress in harmonizing the legal and regulatory framework for the sector. 

Key legislative initiatives include finalising the Mines & Minerals Act 2025 and the National Mineral Development Policy by February 28, 2025, with a presentation to the Prime Minister scheduled for mid-January 2025. 

The Mines Health & Safety Act 2025, replacing the outdated 1931 Act, will be approved by June 30, 2025.

The SIFC Implementation Committee (IC) will hold its 10th meeting on January 2 to discuss various mineral sector projects, including:

1. The Pink-Salt Project, a joint venture between PMDC and SSCI (USA), focusing on feasibility studies.
2. The Soda Ash Project, involving 294 acres in Khewra for production expansion.
3. The Chiniot Iron Ore Project, with a feasibility study for a steel mill nearing completion by December 2024.
4. The Nagarparker Granite Project, targeting early resolution of litigation for a 900-acre pilot phase.
5. Additional projects in soapstone, solar salt, and cement, along with updates on the sector’s potential declaration as an industry.

In a parallel effort, the National Assembly Standing Committee on Commerce has adopted a report emphasising the exploration of mineral resources, prepared by a sub-committee led by MNA Atif Khan.