Update : Since the implementation of the Khyber Pakhtunkhwa (KPK) Mining Policy 2014, there have been further developments. The KPK government introduced the Mineral Sector Governance Act in 2017, along with subsidiary rules to enhance the regulatory framework. More recently, as of March 2024, the government announced plans to introduce a new mining policy. This new policy aims to implement significant reforms, including the establishment of a government-owned mining company, the introduction of mechanical mining, and the implementation of an e-bidding system for mineral leases
The Khyber Pakhtunkhwa (KPK) Mining Policy 2014 is a comprehensive framework designed to harness the province’s rich mineral resources in a manner that promotes sustainable development, economic growth, and social welfare. The policy aims to create an internationally competitive, stable, and conducive business environment to attract and sustain local and foreign investments. It lays down a transparent and equitable regulatory framework that ensures fair value for resources while offering equitable rewards to private investors.
This policy addresses the critical aspects of mineral development, including regulatory and fiscal frameworks, environmental stewardship, social responsibility, and worker health and safety. By integrating mining operations with other economic sectors, the policy seeks to maximize the economic benefits of mineral resources, foster local processing and value addition, and support the development of ancillary industries.
In addition, the KPK Mining Policy 2014 emphasizes the importance of transparency, accountability, and community engagement. It includes provisions for social impact assessments, community consultations, and the incorporation of corporate social responsibility principles. The policy also supports artisanal and small-scale mining (ASM) by providing technical assistance, business support, and environmental safeguards.
Through a well-structured set of guiding principles and a comprehensive program of action, the KPK Mining Policy 2014 aims to unlock the potential of the province’s mineral resources, ensuring that their development contributes to broad-based economic growth, poverty alleviation, and the overall improvement of living standards in Khyber Pakhtunkhwa.
The following questions and answers provide an in-depth understanding of the various facets of the KPK Mining Policy 2014, shedding light on its objectives, mechanisms, and expected outcomes.
- What is the primary objective of the KPK Mining Policy 2014?
- The primary objective is to establish an internationally competitive, stable, and conducive business climate to attract and sustain local and foreign investment for a steady increase in mineral production by lawful means.
- How does the policy aim to integrate mining operations with other sectors?
- The policy encourages integrated mining operations with linkages to upstream and downstream mining and processing-related activities to enhance economic benefits.
- What is the policy’s stance on illegal mining?
- The policy aims to encourage and facilitate mining by legal means and prevent all illegal mining activities through stringent laws and enforcement without fear or favour.
- What mechanisms are established for evaluating competing land and resource use options?
- The policy ensures predictable mechanisms for the evaluation of competing land, water, and other resource-use options to maximize sustainable development.
- What are the environmental and social safeguards included in the policy?
- The policy includes measures to eliminate and mitigate adverse social conditions and environmental degradation attributed to mining and related activities.
- How does the policy support artisanal and small-scale mining (ASM)?
- The policy supports and enables ASM activities that create employment, generate revenues, and help reduce poverty, especially in rural areas, through business support, environmental safeguards, and governance frameworks.
- What does the policy stipulate about local value addition and processing of indigenous minerals?
- The policy gives preference to local value addition and processing of indigenous minerals to promote local economic growth and development.
- How does the policy ensure transparency in the administration and management of the mineral sector?
- It establishes effective and transparent administration and management practices, including a transparent bidding system for mineral rights and regular disclosures of revenue and mineral rights information.
- What fiscal measures are included to attract investment in the mining sector?
- The policy includes a well-designed fiscal regime with competitive tax rates, incentives for investment, and revenue management systems to encourage sustainable investment and economic linkages.
- What role does the Khyber Pakhtunkhwa Mineral Investment Facilitation Authority (KPK-MIFA) play?
- KPK-MIFA facilitates investment by providing a platform for coordination among stakeholders, addressing investor concerns, and ensuring smooth implementation of mining projects.
- How are mining operations monitored for environmental compliance?
- Mining operations are required to comply with environmental protection laws and international best practices, with regular reporting and independent audits to ensure adherence to environmental standards.
- What is the role of the Chief Inspector of Mines in worker health and safety?
- The Chief Inspector of Mines is responsible for managing worker safety under the Mines Safety Act of 1923, with ongoing efforts to draft new legislation for improved safety standards.
- How does the policy address social responsibility and community engagement?
- The policy mandates social impact assessments, community consultations, and the incorporation of UN Global Compact principles on human rights, labour, environment, and anti-corruption in mining operations.
- What incentives are provided for local processing and value addition of minerals?
- Incentives include support for setting up processing plants, facilitating market access, and promoting forward linkages with other economic sectors.
- How are disputes in the mining sector resolved under the policy?
- Disputes are resolved through existing laws, regulations, and procedures, with an emphasis on informal resolution by mutually agreeable means to minimize litigation.
- What training and support are provided to artisanal and small-scale miners?
- The policy provides extension services, technical training, and access to micro-loans to help ASM operators improve their practices and increase productivity.
- What is the approach towards mine closure and post-closure rehabilitation?
- Mine operators are required to include plans and reserve funding for redressing physical impacts upon closure and sustaining community livelihoods thereafter, with regular updates to closure plans.
- How does the policy ensure fair compensation for land use in mining projects?
- The policy includes legal recognition of the rights of other land users, social impact assessments, and clear resettlement policies to ensure fair compensation and management of competing land use options.
- What measures are taken to prevent environmental degradation in ASM activities?
- The policy includes environmental safeguards, such as training on mercury-free gold processing and monitoring by locally recruited and trained Monitors to ensure compliance and minimize environmental impacts.
- How does the policy promote sustainable economic activities linked to mining?
- The policy encourages linkages with other sectors like agriculture, forestry, and tourism, and supports the development of local small, micro, and medium-scale enterprises (SMMEs) to foster sustainable economic growth.
- What steps are taken to improve the quality of life for mine workers?
- The policy mandates the compilation and implementation of a Labour Welfare Program, including health, education, housing, employment benefits, and collective bargaining rights for mine workers.
- How is the policy aligned with international best practices?
- The policy is informed by international trends and norms, and it promotes the adoption of best practices in environmental stewardship, worker safety, and corporate social responsibility.
- What role do local communities play in the mining policy?
- Local communities are involved in consultations, benefit from social impact assessments, and are supported through community protection actions and resettlement policies.
- How are mining royalties and surface rents managed?
- The policy includes a transparent system for the collection and management of mining royalties and surface rents, with oversight committees to ensure effective utilization of funds.
- What is the policy’s approach to mineral exploration and exploitation?
- The policy encourages active exploration and exploitation of mineral resources through a clear and transparent licensing system, security of tenure, and penalties for non-compliance.
- How does the policy address the issue of “resource curse”?
- The policy aims to avoid the pitfalls of the resource curse by promoting balanced development, reinvestment in other sectors, and transparent allocation of mineral revenues.
- What support is provided for the development of infrastructure related to mining?
- The policy encourages the integration of mining infrastructure needs into national and regional economic planning, ensuring open access to electricity, water, and transport at reasonable prices.
- What is the policy’s stance on foreign investment in the mining sector?
- The policy is designed to attract and sustain foreign investment by creating a competitive and stable business environment, offering equitable rewards, and ensuring fair value for resources.
- How are occupational health and safety regulations enforced in mining operations?
- Occupational health and safety regulations are enforced through regular inspections, training, and compliance with international standards, with penalties for violations to ensure worker safety.
- What measures are in place to promote transparency in mineral activities?
- The policy mandates the disclosure of revenue information, exploration and mineral rights information, and regular reporting to relevant government departments to promote transparency.
- How does the policy ensure the equitable distribution of benefits from mining?
- The policy includes mechanisms for revenue sharing, community development, and fair compensation to ensure that the benefits of mining are equitably distributed to meet current and future public needs.
- What role does the Khyber Pakhtunkhwa Environmental Protection Agency (KP-EPA) play?
- KP-EPA is central to the formulation and implementation of environmental protection principles, guidelines, and rules, ensuring compliance with environmental laws and international best practices.
- How does the policy promote local employment and skills development?
- The policy encourages the training and employment of local persons, development of local supplier industries, and integration with local educational institutions to enhance skills and employment opportunities.
- What are the key components of the fiscal regime for the mining sector?
- Key components include competitive tax rates, incentives for investment, revenue management systems, and mechanisms for transparency, fair value, and sustainable economic linkages.
- How does the policy address the issue of mine accidents and safety?
- The policy emphasizes the anticipation and prevention of mine accidents through regular inspections, training, first aid provisions, and comprehensive safety programs to protect workers.
- What is the role of the Working Group on Minerals (WGM)?
- WGM consists of independent experts and business representatives, overseeing reforms in the Minerals Development Department and resolving specific disputes to minimize litigation.
- How are environmental impacts of mining operations assessed and managed?
- Environmental impacts are assessed through Initial Environmental Examinations (IEE) and Environmental Impact Assessments (EIA), with plans for mitigation and regular reporting to ensure compliance.
- What is the policy’s approach to corporate social responsibility (CSR)?
- The policy requires mining companies to adhere to the UN Global Compact principles on human rights, labour, environment, and anti-corruption, incorporating these values into their operations.
- How are mineral rights allocated under the policy?
- Mineral rights are allocated through a transparent system of bidding competitions, first-come-first-served basis for certain areas, and clearly defined procedures for timely allocation of rights.
- What support is provided for the marketing of mineral products?
- The policy supports the establishment of assay laboratories, internet-based marketing portals, and licensing of buyers to facilitate fair trade and competitive prices for mineral products.
- How does the policy promote the development of the jewellery industry?
- The policy encourages studies to explore the potential for forward linkages in the jewellery industry, promoting the development of lapidaries and facilitating marketing of gemstones.
- What measures are in place to support micro and small-scale enterprises (SMMEs) in mining?
- The policy supports SMMEs through procurement of goods and services, technical advice, micro-loans, and training to enhance their operations and linkages with larger mining projects.
- How does the policy address the issue of mine closure and environmental rehabilitation?
- The policy requires mine operators to include plans and reserve funding for environmental rehabilitation and community livelihood support upon closure, with regular updates to closure plans.
- What is the policy’s stance on the use of modern mining technology?
- The policy encourages the adoption of modern mining technology and international best practices to enhance efficiency, environmental protection, and worker safety in mining operations.
- How are mining licenses and leases managed under the policy?
- Mining licenses and leases are managed through a transparent and timely allocation process, with clear rules for the conduct of exploration and mining activities, transition of rights, and penalties for violations.
- What is the role of the Department of Industries in mining regulations?
- The Department of Industries collaborates with the Minerals Development Department to develop detailed occupational health and safety regulations and ensure coherence in decision-making.
- How does the policy promote the development of local supplier industries?
- The policy encourages local supplier industries through incentives for local processing, training, and integration with mining projects to create economic linkages and enhance local economic growth.
- What is the policy’s approach to monitoring and evaluating policy outcomes?
- The policy includes mechanisms for identifying and monitoring policy outcomes, with regular reviews and updates to ensure the effectiveness and alignment with sustainable development goals.
- How does the policy address the issue of corruption in the mining sector?
- The policy promotes transparency, accountability, and adherence to the Extractive Industries Transparency Initiative (EITI) standards to reduce opportunistic corrupt practices and conflicts of interest.
- What is the policy’s stance on mine worker welfare and health?
- The policy mandates the implementation of a Labour Welfare Program, regular health screenings, provision of first aid training and supplies, and improvement of mine labour welfare facilities to enhance worker health and safety.
- How are social impact assessments conducted under the policy?
- Social impact assessments are included as sections of the IEE and EIA reports, with consultations with affected communities and incorporation of their feedback in mining lease applications.
- What incentives are provided for foreign investors in the mining sector?
- Incentives for foreign investors include a stable fiscal regime, competitive tax rates, transparent licensing processes, and support for infrastructure development and local integration.
- How does the policy ensure the sustainable use of natural resources?
- The policy supports sustainable natural resource use through compliance with environmental protection laws, adoption of best practices, and integration of environmental and social costs into planning.
- What role do educational institutions play in the mining policy?
- Educational institutions are involved in skills development, technology transfer, and research collaborations to enhance local capacity and support the integration of mining with other economic sectors.
- How are mineral exploration activities encouraged under the policy?
- Mineral exploration is encouraged through transparent licensing processes, security of tenure, incentives for investment, and support for technical and business training for explorers.
- What is the policy’s approach to the disposal of mining waste products?
- The policy promotes safe disposal of mining waste products, such as prevention of Acid Mine Drainage, recycling of minerals, and adherence to international standards for waste management.
- How are mining communities compensated for land use and environmental impacts?
- Mining communities are compensated through social impact assessments, community protection actions, resettlement policies, and revenue sharing schemes to ensure fair and equitable benefits.
- What support is provided for the development of the metal fabrication industry?
- The policy encourages studies to explore forward linkages in the metal fabrication industry, supporting the development of local capacities and promoting the use of local minerals in fabrication processes.
- How does the policy promote fair trade practices in the mining sector?
- Fair trade practices are promoted through licensing of buyers, establishment of assay laboratories, internet-based marketing portals, and support for accurate determination of mineral grades.
- What is the policy’s approach to managing the social impacts of mining operations?
- The policy includes social impact assessments, community consultations, corporate social responsibility principles, and support for community development and resettlement actions to manage social impacts.
- How are ASM operations monitored and regulated under the policy?
- ASM operations are monitored and regulated through a dedicated section in the Directorate General Mines & Minerals, with support services, training, and enforcement of compliance to ensure sustainable practices.
- What measures are taken to prevent selective mining of high-grade ore?
- The policy encourages optimal extraction and avoids selective mining of high-grade ore through an efficient fiscal regime and transparent licensing processes to ensure sustainable resource management.
- How does the policy promote the development of local jewellery industry?
- The policy supports the development of the local jewellery industry through studies, technical training, and marketing support for lapidaries and gemstone processing to enhance value addition.
- What is the role of local governments in the implementation of the mining policy?
- Local governments play a role in community consultations, implementation of social impact assessments, and coordination with provincial authorities to ensure effective policy implementation and community benefits.
- How are mining operations integrated with national economic planning?
- Mining operations are integrated with national economic planning through coordination with regional and national authorities, infrastructure development, and promotion of economic linkages with other sectors.
- What support is provided for the development of ancillary industries linked to mining?
- The policy supports the development of ancillary industries linked to mining, such as agriculture, forestry, and tourism, through strategic planning, infrastructure development, and promotion of economic linkages.
- How does the policy ensure the protection of worker rights in mining operations?
- Worker rights are protected through compliance with labour laws, collective bargaining rights, health and safety regulations, and regular inspections to ensure fair treatment and safe working conditions.
- What measures are taken to promote the adoption of environmentally friendly technologies?
- The policy encourages the adoption of environmentally friendly technologies through incentives, training, and support for research and development to enhance sustainable mining practices.
- How are mineral revenues managed and allocated under the policy?
- Mineral revenues are managed through a transparent revenue management system, allocation plans, and oversight committees to ensure effective utilization for community development and provincial growth.
- What is the policy’s approach to attracting private investment in the mining sector?
- The policy aims to attract private investment by creating a stable and conducive business environment, offering competitive incentives, ensuring transparency, and promoting fair value for resources.
- How are mining accidents investigated and prevented under the policy?
- Mining accidents are investigated to determine underlying causes and necessary preventive steps, with regular inspections, training, and safety programs to minimize risks and enhance worker protection.
- What role do international standards play in the mining policy?
- International standards inform the policy’s principles and practices, ensuring compliance with best practices in environmental protection, worker safety, corporate social responsibility, and sustainable development.
- How does the policy address the issue of child labour in mining operations?
- The policy mandates the abolition of child labour in mining operations, compliance with labour laws, and regular inspections to ensure that no child labour is employed in the sector.
- What is the policy’s stance on forced and compulsory labour in mining?
- The policy requires the elimination of all forms of forced and compulsory labour in mining operations, with strict enforcement of labour laws and penalties for violations to protect worker rights.
- How are the rights of indigenous communities protected under the policy?
- Indigenous communities’ rights are protected through consultations, social impact assessments, and legal recognition of their land and resource use rights to ensure fair compensation and community benefits.
- What measures are in place to promote gender equality in the mining sector?
- The policy promotes gender equality through non-discriminatory employment practices, equal opportunities for training and advancement, and support for women’s participation in mining operations.
- How does the policy ensure the sustainable development of mineral resources?
- Sustainable development is ensured through adherence to environmental laws, adoption of best practices, integration with other economic sectors, and promotion of local processing and value addition.
- What support is provided for the development of tourism linked to mining?
- The policy supports the development of tourism linked to mining through infrastructure development, promotion of cultural heritage, and integration with regional and national tourism strategies.
- How are environmental incidents managed in mining operations?
- Environmental incidents are managed through emergency preparedness plans, regular monitoring, reporting, and penalties for non-compliance to ensure immediate response and mitigation of impacts.
- What is the policy’s approach to technology transfer in the mining sector?
- The policy promotes technology transfer through collaboration with educational institutions, training programs, and incentives for the adoption of modern mining technologies to enhance efficiency and sustainability.
- How are mining operations aligned with national development goals?
- Mining operations are aligned with national development goals through integration with economic planning, promotion of linkages with other sectors, and support for infrastructure and community development.
- What measures are taken to enhance the creditworthiness of small-scale miners?
- The policy enhances the creditworthiness of small-scale miners through support for business development, access to micro-loans, and technical training to improve their operations and financial stability.
- How are mining projects evaluated for environmental compliance?
- Mining projects are evaluated for environmental compliance through IEE and EIA reports, regular audits, and adherence to international standards for environmental protection and sustainable resource use.
- What role do local associations play in supporting small-scale miners?
- Local associations support small-scale miners through representation, advocacy, access to markets, and facilitation of credit and technical support to enhance their operations and linkages with larger projects.
- How does the policy promote the rehabilitation of mined lands?
- The policy mandates the inclusion of rehabilitation plans in mining projects, reserve funding for post-closure activities, and regular updates to ensure the sustainable use of mined lands and community benefits.
- What is the policy’s stance on the use of hazardous substances in mining?
- The policy regulates the use of hazardous substances in mining, promoting safe practices, training, and monitoring to prevent environmental degradation and health risks associated with hazardous materials.
- How are mining projects integrated into regional economic planning?
- Mining projects are integrated into regional economic planning through coordination with local and national authorities, promotion of infrastructure development, and support for economic linkages with other sectors.
- What measures are taken to ensure the fair treatment of mine workers?
- Fair treatment of mine workers is ensured through compliance with labour laws, provision of health and safety training, regular inspections, and support for collective bargaining and worker rights.
- How does the policy address the issue of illegal mining activities?
- The policy aims to prevent illegal mining activities through stringent laws, enforcement without fear or favour, and promotion of legal mining operations with clear and transparent licensing processes.
- What is the role of the private sector in the implementation of the mining policy?
- The private sector plays a key role in the implementation of the mining policy through investment, adherence to regulations, adoption of best practices, and collaboration with government authorities for sustainable development.
- How are mining royalties and taxes managed to benefit local communities?
- Mining royalties and taxes are managed through transparent collection and allocation plans, with oversight committees ensuring that funds are utilized for community development and provincial growth.
- What support is provided for the establishment of processing plants for local minerals?
- The policy supports the establishment of processing plants for local minerals through incentives, technical advice, and access to capital to promote value addition and local economic growth.
- How does the policy ensure the equitable sharing of mineral benefits?
- Equitable sharing of mineral benefits is ensured through revenue sharing schemes, community development programs, and fair compensation for land use and environmental impacts.
- What is the policy’s approach to environmental fiscal reform (EFR)?
- The policy considers the introduction of EFR to devolve fiscal powers to the local level, ensuring that funds are utilized for community development and environmental protection at the local level.
- How are mining operations monitored for compliance with safety standards?
- Mining operations are monitored for compliance with safety standards through regular inspections, reporting, and penalties for violations to ensure the protection of worker health and safety.
- What measures are in place to support the sustainable development of the mining sector?
- Sustainable development is supported through adherence to environmental laws, promotion of best practices, integration with other sectors, and incentives for local processing and value addition.
- How does the policy promote transparency in revenue management?
- Transparency in revenue management is promoted through regular disclosures, participation in EITI, and oversight committees to ensure fair and effective utilization of mineral revenues.
- What is the policy’s stance on the protection of worker health in mining operations?
- Worker health is protected through regular health screenings, compliance with health and safety regulations, provision of first aid training and supplies, and improvement of mine labour welfare facilities.
- How are mining projects integrated with local community development plans?
- Mining projects are integrated with local community development plans through social impact assessments, community consultations, and support for infrastructure and social services to enhance community benefits.
- What is the policy’s approach to reducing the environmental impact of mining? – The policy aims to reduce the environmental impact of mining through compliance with environmental laws, adoption of best practices, regular monitoring and reporting, and promotion of environmentally friendly technologies.
