Punjab passes Mines and Minerals Bill 2025 to curb illegal mining

The Punjab government has approved new legislation to create a dedicated Mines and Minerals Force aimed at curbing illegal mining and modernising regulation of the sector, according to Express News. The Punjab Assembly’s standing committee has cleared the Mines and Minerals Bill 2025 on Tuesday, paving the way for its presentation before the full House.

Officials said the bill seeks to establish a “transparent and modern system” in the mining sector and to create a favourable environment for both domestic and foreign investment. Under the draft law, strict rules have been introduced for licencing, monitoring and mining operations. Deposits related to nuclear energy, oil and gas will fall outside the scope of the bill.

The legislation proposes a new cadastre system for granting exploration, prospecting and mining titles, while giving authorities the power to immediately cancel inactive titles. Title holders will be required to prepare a Social Impact and Environmental Management Plan, while new provisions allow for the swift cancellation of unused or non-compliant mining licences.

The bill also introduces heavier penalties for violations, including fines, licence suspension and cancellation. Mining companies will be mandated to file environmental impact reports as a prerequisite for operating.

A new directorate structure will be established within the Mines and Minerals Department. The Director General will be granted extensive powers relating to licencing, monitoring and revenue recovery. District-level Mining Liaison Committees will also be formed.

A new Mineral Dispatch Invoice system will be implemented to streamline royalty collection. For mining involving hazardous chemicals, the construction of tailings dams will be mandatory. The bill also sets out a clear legal distinction between large-scale and small-scale mining.

The appointment mechanism for the Director General of Mines and Minerals will be revised, and the DG will have full authority to hire officers, engineers and geologists. Additional powers have also been delegated to the DG and Additional DG.

Authorised district officers will be required to inspect any licenced area, and police and district administrations will support efforts to halt illegal mining.

The legislation outlines a strengthened framework for issuing penalties and cancellation notices for licence violations. The Director General will be empowered to take action against illegal mining and resolve boundary disputes between licence areas.

A new system for the registration, renewal and cancellation of geologists, mining engineers and surveyors will also be introduced.