EXTRAORDINARY ISSUE REGISTERED NO.

L7532

PUNJAB MINING CONCESSION

RULES 2002
Amended up to January 2023

THE PUNJAB GAZETTE

PUBLISHED BY AUTHORITY

MINES & MINERALS DEPARTMENT

Government of Punjab

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
Contents
PART-1 PRELIMINARY.................................................................................................................. 1
1. Short title and commencement. - ............................................................................................................................... 1
2. Definitions. - .................................................................................................................................................................. 1
3. Grant of prospecting licences and mineral titles. - .................................................................................................. 3
[3-A. Technical Expert Committees. - ......................................................................................................................... 3
4. Confidentiality. -............................................................................................................................................................ 4
5. Immunity of officers, etc. -.......................................................................................................................................... 4
PART-2 LARGE SCALE MINING I- GENERAL ..........................................................................4
6. Types of mineral titles. - .............................................................................................................................................. 4
7. Mineral agreements. - ................................................................................................................................................... 5
8. Applications under these rules. - ................................................................................................................................ 6
9. Power of licensing authority in respect of applications. - ...................................................................................... 6
10. Offences in relation to applications. - .................................................................................................................... 7
11. General conditions of mineral titles. - .................................................................................................................... 7
12. Restriction on exercise of rights by holder of mineral title. - ............................................................................. 8
13. Directions to holder of mineral title. - ................................................................................................................... 9
II-RECONNAISSANCE LICENCE ................................................................................................9
14. Rights of holder of reconnaissance licence. - ........................................................................................................ 9
15. Duration of reconnaissance licence. - .................................................................................................................. 10
16. Application for reconnaissance licence. - ............................................................................................................ 10
17. Restrictions on grant of [***application for***] reconnaissance licence. -......................................................... 11
18. Issue of reconnaissance licence. -.......................................................................................................................... 12
19. Work programme of reconnaissance operations. - ............................................................................................ 12
20. Records, etc., licence to be kept, etc. by holder of reconnaissance licence. - ................................................ 13
III – EXPLORATION LICENCE ................................................................................................. 14
21. Right of holder of exploration licence. - .............................................................................................................. 14
22. Duration of exploration licence. - ......................................................................................................................... 14
23. Effect of issue of mining lease or mineral deposit retention licence on exploration area. - ....................... 15
24. Application for exploration licence. - ................................................................................................................... 15
25. Exercise of power to grant or refuse application for exploration licence. -................................................... 16
26. Issue of exploration licence. - ................................................................................................................................ 16
27. Application for renewal of exploration licence. - ............................................................................................... 16
28. Application for amendment of exploration licence. -........................................................................................ 18

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
29. Obligations of holder of exploration licence. - ................................................................................................... 18
30. Work programme of exploration operations. -................................................................................................... 18
31. Records, etc., to be kept, etc. by holder of exploration licence. - .................................................................... 19
IV – MINERAL DEPOSIT RETENTION LICENCE................................................................. 20
32. Rights of holder of mineral deposit retention licence. - .................................................................................... 20
33. Persons who may apply for mineral deposit retention licence. - ..................................................................... 21
34. Duration of mineral deposit retention licence. -................................................................................................. 21
35. Application for mineral deposit retention licence. -........................................................................................... 21
36. Exercise of power to grant or refuse application for mineral deposit retention licence. - .......................... 22
37. Issue of mineral deposit retention licence. -........................................................................................................ 23
38. Conditions. - ............................................................................................................................................................. 23
39. Application for renewal of mineral deposit retention licence. - ....................................................................... 24
40. Application for amendment of mineral deposit retention licence. - ............................................................... 24
41. Obligations of holder of mineral deposit retention licence. -........................................................................... 24
42. Work programme under mineral deposit retention licence. - .......................................................................... 24
43. Direction to apply for mining lease. -................................................................................................................... 24
44. Records, etc., to be kept, etc., by holder of mineral deposit retention licence. -........................................... 26
V -MINING LEASE ....................................................................................................................... 27
45. Rights of holder of mining lease. - ........................................................................................................................ 27
46. Duration of mining lease. - .................................................................................................................................... 27
47. Application for mining lease. - .............................................................................................................................. 28
48. Exercise of power for grant or refuse application for mining lease. -............................................................. 29
49. Issue of mining lease. -............................................................................................................................................ 30
50. Application for renewal of mining lease. -........................................................................................................... 31
51. Application for amendment of mining lease. - ................................................................................................... 31
52. Obligations of holder of mining lease. - .............................................................................................................. 31
53. Notice of cessation of mining operations. - ........................................................................................................ 31
54. Action by Licensing Authority. - ........................................................................................................................... 31
55. Unit development. - ................................................................................................................................................ 32
56. Records, etc. to be kept, etc. by the holder of mining lease. - .......................................................................... 32
VI - CANCELLATION AND SURRENDER OF MINERAL TITLES ....................................... 34
57. Cancellation of mineral titles. - .............................................................................................................................. 34
58. Surrender of mineral titles. - .................................................................................................................................. 35
59. Effect of certificate of surrender. - ....................................................................................................................... 36
VII - REGISTRATION AND TRANSFER OF MINERAL TITLES........................................... 36
60. Titles Register. - ....................................................................................................................................................... 36
61. Approval of transfer, etc. of mineral title. -......................................................................................................... 36

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
62. Inspection of Titles Register. - .............................................................................................................................. 37
63. Titles Register may be rectified. - .......................................................................................................................... 37
64. Offences in relation to Registration in Titles Register. - ................................................................................... 37
VIII- FINANCIAL .......................................................................................................................... 37
65. Royalties payable on minerals. - ............................................................................................................................ 37
66. Rate of Royalties. -................................................................................................................................................... 38
67. Enhanced royalty. -.................................................................................................................................................. 38
68. Payment of royalty. - ............................................................................................................................................... 38
69. Deferment of royalty. - ........................................................................................................................................... 39
70. Powers of government in case of failure to pay royalty. -................................................................................. 39
71. Contravention of rule 70. -..................................................................................................................................... 39
72. Proof of amounts payable under these rules. - ................................................................................................... 39
73. Rentals and renewals. -............................................................................................................................................ 40
[73-A. Surface rent. -............................................................................................................................................................. 40
IX - MISCELLANEOUS PROVISIONS........................................................................................ 40
74. Force majeure. - ....................................................................................................................................................... 40
75. Joint liability. - .......................................................................................................................................................... 41
76. Competitive bids. - .................................................................................................................................................. 41
77. Performance guarantees. - ...................................................................................................................................... 41
78. Arbitration. - ............................................................................................................................................................. 41
79. Rights over data. - .................................................................................................................................................... 42
80. Compliance with other laws. - ............................................................................................................................... 42
81. Retention of fees. - .................................................................................................................................................. 42
82. Notice of applications made and titles issued, etc. - .......................................................................................... 42
83. Order in which applications to be considered. -................................................................................................. 43
84. Removal and sale of property, etc. - ..................................................................................................................... 43
85. Weighing of minerals. - ........................................................................................................................................... 44
86. Power of Licensing Authority to obtain information. - .................................................................................... 44
87. Liability for pollution. -........................................................................................................................................... 45
88. Service of documents. - .......................................................................................................................................... 45
89. Powers of authorised officer. - .............................................................................................................................. 46
90. Further powers of authorised officers. - .............................................................................................................. 47
91. Offences. - ................................................................................................................................................................ 47
92. Evidence. - ................................................................................................................................................................ 48
93. Forfeiture order. - .................................................................................................................................................... 48
94. Appeal. - .................................................................................................................................................................... 48
PART-3 SMALL SCALE MINING 1-GENERAL ......................................................................... 49

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
95. Manner in which application may be made. - ..................................................................................................... 49
96. Documents to be annexed. -.................................................................................................................................. 49
97. Acknowledgement of application. - ...................................................................................................................... 50
98. Reciprocity. -............................................................................................................................................................. 50
99. Application by an alien or a company incorporated outside Pakistan. -......................................................... 50
100. Register of applications. -................................................................................................................................... 50
101. Separate application to be made for each area and each mineral. - ............................................................ 50
102. Grant of more than one licence or lease to the same person. -................................................................... 50
103. Availability of area. - ........................................................................................................................................... 50
104. Priority. -............................................................................................................................................................... 51
105. Refusal to grant licence or lease. - .................................................................................................................... 51
106. Lapse of right to licence or lease. -................................................................................................................... 51
107. Terms and conditions of licences and leases. - .............................................................................................. 51
108. Assignment. - ....................................................................................................................................................... 51
109. Method of making application for assignment. - ........................................................................................... 51
110. Security deposit. - ................................................................................................................................................ 52
111. Right of surrender. - ........................................................................................................................................... 52
112. Publication. - ........................................................................................................................................................ 52
113. Refund of security deposit. - ............................................................................................................................. 52
114. Shape of area. - .................................................................................................................................................... 52
115. Release of lands included by inadvertence. - .................................................................................................. 53
116. Grant of same area to different parties. - ........................................................................................................ 53
117. Mode of payments. -........................................................................................................................................... 53
II - PROSPECTING LICENCES .................................................................................................. 53
118. Licensee's right under a licence. - ..................................................................................................................... 53
119. Grant of prospecting licence. - ......................................................................................................................... 53
120. Area. -.................................................................................................................................................................... 53
121. Register of licence. -............................................................................................................................................ 53
122. Period of licence. - .............................................................................................................................................. 54
123. Renewal. - ............................................................................................................................................................. 54
124. Right of a licensee for renewal of his prospecting licence, on applying for mining lease. - ................... 54
125. Working obligations. - ........................................................................................................................................ 54
126. Annual fee. -......................................................................................................................................................... 55
127. To plug boreholes, etc. - .................................................................................................................................... 55
128. Right of the licensee to a mining lease. - ......................................................................................................... 55
129. Disclosing the information acquired by the licensee during the course of his operations. - .................. 55
III-MINING LEASES .................................................................................................................... 55

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
130. Lessee's right under a lease. - ............................................................................................................................ 56
131. Grant of mining lease. - ..................................................................................................................................... 56
132. Comprehensive mining Lease. -........................................................................................................................ 56
133. Register of mining leases. - ................................................................................................................................ 56
134. Period of Lease. – ............................................................................................................................................... 56
135. Yearly dead rent. - ............................................................................................................................................... 57
136. Submission of development scheme. - ............................................................................................................ 57
137. Approval of development scheme. -................................................................................................................ 58
138. Failure to act according to the development scheme. - ................................................................................ 58
139. Keeping development schemes at mines. -..................................................................................................... 59
140. Commencement of operations. -...................................................................................................................... 59
IV – MISCELLANEOUS ................................................................................................................ 59
141. Royalty. - ............................................................................................................................................................... 59
142. Compensation. - .................................................................................................................................................. 59
143. Surface rent. -....................................................................................................................................................... 59
144. Not to cut or injure any tree. - .......................................................................................................................... 60
145. Operation in the reserved and Protected forests. - ....................................................................................... 60
146. Limits of boundaries. - ....................................................................................................................................... 60
147. Demarcation of area. -........................................................................................................................................ 60
148. Boundary marks. - ............................................................................................................................................... 60
149. Not to construct buildings upon any public place, etc. - .............................................................................. 61
150. Not to work within 100 meters from any railway line, etc. - ....................................................................... 61
151. Distance from boundaries. -.............................................................................................................................. 61
152. Weighing machine. - ........................................................................................................................................... 61
153. Keeping of record. - ........................................................................................................................................... 61
154. Submission of production returns. - ................................................................................................................ 61
155. Submission of periodical return. - .................................................................................................................... 62
156. Inspection. - ......................................................................................................................................................... 62
157. Strengthening and supporting mines. -............................................................................................................ 62
158. Power to assess and claim compensation for damage to mineral property. - ........................................... 62
159. Non-conservational mining activities. - ........................................................................................................... 62
160. Under-reporting of mineral production. -....................................................................................................... 63
161. Employment of technical personnel. - ............................................................................................................ 63
162. Training. - ............................................................................................................................................................. 63
163. Access to other licensee or lessee both on surface and underground. - .................................................... 63
164. Discovery of other minerals. - .......................................................................................................................... 63
165. Pre-emption. - ...................................................................................................................................................... 64

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
166. Meeting the internal requirements of Pakistan. - ........................................................................................... 64
167. To ascertain and verify the value of precious stones, etc. -.......................................................................... 64
168. Change in the constitution of the licensee or lessee. - .................................................................................. 64
169. Exclusion of lands for public purposes. - ....................................................................................................... 64
170. Report of accident, etc. -.................................................................................................................................... 64
171. Sub-letting. - ......................................................................................................................................................... 65
172. Taking possession of works, etc. in time of war or national emergency. - ................................................ 65
173. Licensee or lessee ceasing to be national of Pakistan. - ................................................................................ 65
174. Unauthorized mining. - ...................................................................................................................................... 65
175. Registration of Surveyors. - ............................................................................................................................... 65
176. Persistent violation of rules and conditions. - ................................................................................................ 66
177. Penalties. - ............................................................................................................................................................ 66
178. Power of distress. - ............................................................................................................................................. 66
179. Delivery of mines, etc., in good condition. - .................................................................................................. 66
180. Force majeure. -................................................................................................................................................... 66
181. Blacklisting. -........................................................................................................................................................ 67
182. Establishment of check posts. - ........................................................................................................................ 67
183. Forfeiture of plants etc. - ................................................................................................................................... 67
184. Unit development and beneficiation of the minerals. - ................................................................................ 67
185. Appeal. - ............................................................................................................................................................... 67
[185-A Revision. -.................................................................................................................................................................. 68
186. Outstanding dues payable even after expiry of a licence or lease. - ............................................................ 69
187. [Grant of mineral concessions through bidding.- .......................................................................................... 69
187. [Auction of area with proved mineral reserves. - .................................................................................................... 69
188. Membership of an association. -....................................................................................................................... 70
189. Constitution of Board. - ..................................................................................................................................... 70
190. Exemption. - ........................................................................................................................................................ 70
PART – 4 MINOR MINERALS ..................................................................................................... 70
191. Mining of Minor Minerals. - .............................................................................................................................. 70
192. Period of Lease. - ................................................................................................................................................ 70
193. Mode of grant. - .................................................................................................................................................. 71
194. Constitution of an Auction Committee. - ....................................................................................................... 71
195. Schedule of Auction. - ........................................................................................................................................ 71
[195-A Schedule of rates. -................................................................................................................................................... 71
196. Shape of the area. - ............................................................................................................................................. 71
197. Size of the area. - ................................................................................................................................................. 71
[197-A Reserved price. - ....................................................................................................................................................... 71

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
198. Public notice of Auction. - ................................................................................................................................ 72
199. Registration of applicant. -................................................................................................................................. 72
200. Acknowledgement of applications. -................................................................................................................ 72
201. Powers to accept or reject a bid. - .................................................................................................................... 72
202. Refund of earnest money. - ............................................................................................................................... 72
203. Payment of bid money. -.................................................................................................................................... 72
204. Refund of bid money. - ...................................................................................................................................... 73
205. Security deposit. - ................................................................................................................................................ 73
206. Grant of Lease. - ................................................................................................................................................. 73
207. Payment of instalments. - .................................................................................................................................. 74
[207-A Maximum limit of leases. - ............................................................................................................................ 74
[207-B Necessary production. -................................................................................................................................. 74
208. Surface rent. -....................................................................................................................................................... 74
209. Acquisition of land. - .......................................................................................................................................... 74
210. Compensation. - .................................................................................................................................................. 75
211. Operation in the reserved and protected forests. -........................................................................................ 75
212. Demarcation of area. -........................................................................................................................................ 75
213. No work within 100 meters from any railway line etc. -............................................................................... 75
214. Inspection. - ......................................................................................................................................................... 75
215. Access to other lessees. -.................................................................................................................................... 75
216. Change in the constitution of the lessee. - ...................................................................................................... 76
217. Exclusion of lands for public purposes. - ....................................................................................................... 76
218. Unauthorized mining. - ...................................................................................................................................... 76
219. [Right of surrender. - .......................................................................................................................................... 76
220. Assignment. - ....................................................................................................................................................... 76
221. Method of making application for assignment. - ........................................................................................... 77
222. Refund of proportionate bid money. - ............................................................................................................ 77
223. Removal of buildings, structures etc. on expiry of lease. - ........................................................................... 77
224. Violation of rules or lease agreement. - ........................................................................................................... 77
225. Erection of buildings, etc. - ............................................................................................................................... 77
226. Service of letters and notices. - ......................................................................................................................... 77
227. Safe working. - ..................................................................................................................................................... 77
228. Re-auction of leased area. -................................................................................................................................ 78
229. Issuance of despatch slips. - .............................................................................................................................. 78
230. Mode of payment. - ............................................................................................................................................ 78
231. Taking over possession of area. - ..................................................................................................................... 78
232. Outstanding dues payable even after expiry of a lease. - .............................................................................. 78

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
233. Blacklisting. -........................................................................................................................................................ 79
234. Appeal. - ............................................................................................................................................................... 79
235. Revision. -............................................................................................................................................................. 79
236. Bar of jurisdiction. - ............................................................................................................................................ 80
PART-5 REPEALS AND SAVINGS .............................................................................................. 80
237. Repeals. - .............................................................................................................................................................. 80
238. Savings. -............................................................................................................................................................... 80

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
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NOTIFICATION
No. V(I&MD)3-21/95 VOL-II. In exercise of the powers conferred upon him under section 2 of the Regulation of
Mines and Oil-fields and Mineral Development (Government Control) Act, 1948 (XXIV of 1948), the Governor of
the Punjab is pleased to direct that the following rules shall be made.-

PART-1 PRELIMINARY
1. Short title and commencement. -
(1) These rules may be called the Punjab Mining Concession Rules, 2002.
(2) They shall come into force at once.
2. Definitions. -
In these rules unless there is anything repugnant to the subject or context:
i. “assignee” means a person, a firm or a company to whom a licence or mineral title is
assigned, transferred or mortgaged under these rules;
ii. “authorised Officer”, in relation to any provision of these rules, means a person designated
under these rules;
iii. “collector” shall have the same meaning as assigned to him under the Punjab Land Revenue
Act, 1967 (XVII of 1967);
iv. “company” means: -
a. a company as defined in the Companies Ordinance, 1984 (XLVII of 1984); or
b. a body corporate formed by or under any law for the time being in force and
incorporated in Pakistan;
v. 1[“Department” means the Mines & Minerals Department, Government of the Punjab;

***“Department” means the Department of Industries, Mines and Minerals Government of the Punjab***].

vi. “drilling” means the perforation of the earth’s surface otherwise than by pitting, trenching
or sinking a shaft, whether the hole is vertical, inclined or horizontal, and includes all
operations for preventing the collapse of the sides of the hole or for preventing the hole
from becoming fined with extraneous matter, including water;
vii. “exploration” means search for minerals, and includes the determination of their extent and
economic value;
viii. “exploration area” means the area of land, including its lateral limits, to which an
exploration licence relates;
ix. “Exploration Licence” means a licence for exploration issued under these rules;
x. “Exploration Operation” mean any operation carried on in connection with exploration
including any accessing, extraction or incidental winning of any mineral for the purpose of
mineralogical examination, assaying, test work or marketability surveys and such
marketability survey shall exclude commercial marketing except for mineral title allowed;
xi. “Financing Institution” means an institution recognized as such by the State Bank of
Pakistan for the purpose of advancing credit/loan facilities;

1
Rule 2(v) inserted by substituting the earlier rule vide notification No. SOT(M&M)3-1/2015(Vol-II) dated 06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
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xii. “Good Reconnaissance Practices” “Good Exploration Practices” or “Good Mining

Practices” means practices which are generally accepted internationally by persons involved
in reconnaissance operations, exploration operations, or mining operations, as the case may
be, as safe and necessary in carrying out such operations;
xiii. “Government” means the Government of the Punjab;
xiv. “Governor” means the Governor of the Punjab;
xv. “Group” in relation to minerals, means minerals declared in Schedule 3 to constitute a named
group of minerals;
xvi. “Large Scale Mining Undertaking” means a project of mining involving a capital of more
than Rs.300 million governed by Part 2 of these rules;
xvii. “land” includes surface bearing any mineral, land beneath water and the subsoil of land;
xviii. “lateral limits” in relation to an area of land subject to a mineral title or a prospecting
licence, means the vertical lines passing through the sides by which that area is bounded;
xix. “lease” means a mining lease granted under these rules;
xx. “lessee” means a person, a firm or a company to whom a mining lease is granted under these
rules and includes his successors in interest;
xxi. “licence” means a prospecting licence granted under these rules;
xxii. “licensee” means a person, a firm, or a company to whom a prospecting licence is granted
under these rules, and includes his successors-in-interest;
xxiii. “Licensing Authority” means: -
a. in respect of major minerals the Director General, Mines and Minerals, Punjab
in Mining Projects involving the capital of Rs.300 million or above and in
mining projects involving a capital less than Rs.300 million, the Director,
Mines and Minerals, Punjab or an authority to whom powers have been
delegated by the Government; and
b. in respect of minor minerals, the Director, Mines and Minerals, Punjab or an
authority to whom powers have been delegated by the Government;
xxiv. 2[“minor minerals” means ordinary sand, sandstone, silt stone, slate stone and gravel and

may include any other mineral so declared by the Government, and

***“minor minerals” means ordinary sand, ordinary stone, limestone, sandstone, building stone,
decorative stone including ebry stone but excluding marble, mill stone, dolomite, slate stone and gravel and
may include any other mineral so declared by the Government, and***]

xxv. “mine” means any surface or underground excavation where any operation for the purpose
of searching for or obtaining a mineral has been or is being carried on, and includes all works,
machinery, tramway, ropeway and siding, whether above or below ground, in or adjacent or
belonging to or appurtenant to a mine but does not include the manufacturing or processing
plant;
xxvi. “mineral” means all surface and sub-surface natural deposits of ores and metals and other
metallic and non-metallic substances including naturally occurring aqueous solutions
containing more than 1% mineral salt in solution, but does not include: -
i. nuclear substances;
ii. mineral oil; and
iii. natural gas;

2
Rule 2(xxiv) inserted by substituting the earlier rule vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~3~

xxvii. “Mineral Authority” means the Mineral Investment Facilitation Authority notified by the
Government;
xxviii. “mineral operation” means exploration operations or mining operations or both;
xxix. “mining area” means an area of land, including its lateral limits, to which a mining lease
relates;
xxiv-a. 3[“Mining Consultant” means a legal or natural person qualified in Mining Engineering

or Geology duly registered with Director General, Mines & Minerals.]

xxx. “mining operation” means any operation carried out in connection with the development
of a mine, or the production of minerals from the mine, or both;
xxxi. “ordinary sand” means fluviatile deposit of minute fragments resulting from wearing down
of pre-dominantly siliceous rocks mainly ranging from 5 micron to 2 millimeters in size
including clays and silty sand containing more than 30% sand particles commonly known as
“Bhassar/Ghassar” but does not include silica sand suitable for glass making;
xxxii. “pit-mouth” means a place above or adjacent to a mine where the mineral is collected, stored
or taken charge of immediately after it has been mined;
xxxiii. “reconnaissance operation” means any operation carried on in a general search for any
mineral by means of aerial sensing techniques, including geophysical surveys, photo
geological mapping or imagery carried on from the air, and reconnaissance shall be construed
accordingly;
xxxiv. “retention area” means the area of land, including its lateral limits, to which a mineral
deposit retention licence relates;
xxxv. “Schedule” means a schedule appended to these rules, and
xxxv-a. 4[‘Secretary’ means the Secretary to Government, Mines & Minerals Department.]

xxxvi. “Small Scale Mining Undertaking” means a project of mining involving a capital of less
than Rs.300/- million.
3. Grant of prospecting licences and mineral titles. -
(1) The Licensing Authority may, in accordance with these rules, grant prospecting licences, mining leases
and mineral titles for minerals.
(2) The Government may, by notification delegate powers to grant a prospecting licence or a mineral title
in respect of any mineral or group of minerals to any person or authority.
5[3-A. Technical Expert Committees. -
(3) The Secretary, by notification, may constitute Technical Expert Committees comprising of relevant
professionals from the Department.
(4) The Committee shall:
a. prepare and approve viable area for grant of Prospecting Licenses, Exploration Licenses or
Mining Leases and fixation of their reserve prices for competitive bidding under Small-Scale
Mining and Large-Scale Mining; and
b. evaluate and recommend registration of Mine Surveyors and Mining Consultants.]

3
Rule 2 (xxix-a) inserted rule vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
4
“Clause xxxv-a” inserted vide notification No. SOT(M&M)3-1/2015(Vol-II) dated 06.09.2022
5
Rule 3-A inserted vide notification No. SOT (M&MD)8-15/1990(Vol-V) dated 06.01.2023

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
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4. Confidentiality. -
(1) Information disclosed under these rules to an officer employed in the Department shall not be disclosed
to any person who is not such an officer or employee of the Department without the prior written
approval of the person who provided the information, except to the extent that –
a. disclosure is authorised or required by law;
b. disclosure is required by order of a competent court, or for the purpose of any arbitration or
litigation involving the Government;
c. the person providing the information authorised its disclosure at the time of providing the
information;
d. disclosure is necessary to compile and publish official statistical information concerning
geology and mineral resources of Punjab;
e. the disclosure is made to the Mineral Authority;
f. disclosure is for the purpose of the implementation of these rules or a mineral agreement, the
formation of mineral policy or of giving advice to other departments or agencies of
Government or for the purpose of any discussion or dealing with the Federal Government;
g. disclosure is affected with the prior permission in writing of the Government grant in respect
of any matter which, in the opinion of the 6[Secretary], is of a general nature and may be
disclosed in the public interest; or
h. disclosure is in accordance with a relevant mineral agreement or a mineral title.
(2) An officer employed in or by the Department who uses, for the purpose of personal gain, any
information disclosed under these rules that comes to him in the course of, or by reason of, that
employment shall be guilty of an offence and be punishable under the Efficiency & Discipline Rules in
force.
(3) The holder of a mineral title shall not disclose information acquired by the holder as such except as
provided in paragraph (b) of rule 70 and in accordance with the title.
(4) Where a mineral title ceases to have effect in relation to an area of land and the holder of the title does
not acquire a further title over that area, the 7[Licensing Authority] shall have the right to disclose any
information which it has received from the holder in respect of that area.
5. Immunity of officers, etc. -
No liability shall attach to an officer employed in or by the Department, a member of the Mineral Authority
or an authorised officer in respect of the exercise or performance, or purported exercise or performance, in
good faith, of any function under these rules.

PART-2 LARGE SCALE MINING

I- GENERAL
6. Types of mineral titles. -
The following mineral titles may, subject to these rules, be issued, for the purposes of large-scale mining,
namely-

a. reconnaissance licence;
b. exploration licence;

6
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated 06.09.2022
7
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~5~

c. mineral deposit retention licence; or

d. mining leases
7. Mineral agreements. -
(1) The Government may, at the request of a person proposing to carry on mineral operations, enter into
an agreement, relating to a mineral title, not inconsistent with these rules or any other law, with that
person, if the Government is satisfied that substantial investment 8[of more than three hundred
million rupees] is likely to be made in mineral operations and that the carrying on of the undertaking
in question is desirable in the interest of the development of the mineral resources.
(2) The Federal Government may, at the request of the Government be a party to, and to the negotiation
of, a mineral agreement.
(3) A mineral agreement may, in particular, make provision with respect to all or any of the following
matters: -
a. the grant, renewal, cancellation or transfer of a mineral title;
b. minimum exploration operation to be carried on and related expenditures to be incurred for
the purposes of those operations;
c. the formation of joint ventures;
d. the basis on which the fair market value of any mineral or group of minerals may, from time
to time, be determined on an arms-length basis;
e. the payment of enhanced royalty in specified circumstances;
f. the payment of additional profits tax in specified circumstances;
g. the establishment of secondary and tertiary processing facilities;
h. the circumstances in which, and the conditions on which, rights of pre-emption of minerals
may be exercised by the Government;
i. guarantees to ensure the due and proper performance of the obligation of the holder of the
mineral title;
j. financial and insurance arrangements;
k. the settlement of any dispute which may arise in the interpretation or application of any
provision of a mineral agreement by a sole expert or through international arbitration;
l. co-ordination of exploration or mining operation to be carried on by the person concerned
under an exploration licence or a mining lease with any such operation carried on by the holder
of an exploration licence or a mining lease in any neighbouring exploration area or mining area;
and
m. other matters relating to mineral operations as the Government may determine or as the parties
to the agreement may consider necessary.
(4) Where the Federal Government is a party to a mineral agreement, the agreement may contain provision
with respect to any matter for which the Federal Government has executive authority under the
Constitution.
(5) Nothing contained in a mineral agreement shall be construed as absolving any party thereto from
complying with any requirement laid down by law from applying for, and obtaining, any mineral title,
licence, approval, permission or other document required by law.
(6) For the purpose of determining under sub rule (1) whether substantial foreign investment is likely to be
made in any particular case the Government shall have regard to-
a. the likely scale of the capital investment to be made;
b. the expenditure and work programme proposed by the applicant;

8
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
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c. in the event of a commercial discovery.

d. the likely scale of operation; and
e. the likely infrastructure to be required;
f. the mineral or group of minerals to which the mining title, if granted would relate and the
potential export of that mineral or group;
g. the techniques to be used for the recovery of that mineral or group;
h. the technical and financial capabilities of the applicant for a mineral title; and
i. other factors relevant to making that determination.
8. Applications under these rules. -
(1) An application under these rules shall-
a. except where otherwise provided, be made to the Licensing Authority;
b. be in a form approved by the Licensing Authority; and
c. be accompanied by the fee specified in column three of Schedule I in respect of the application
in question.
(2) An application may be withdrawn by the applicant giving to the Licensing Authority notice in writing
to the effect that the application is withdrawn.
(3) Where more than one application are made in respect of the same area of land, the applications shall be
dealt with in the order in which they are received by the Licensing Authority.
(4) The Licensing Authority may grant, on such conditions as may be determined in writing by the
authority, or refuse, an application.
9. Power of licensing authority in respect of applications. -
(1) The Licensing Authority may at any time after the receipt of an application under these rules require
the applicant by notice in writing-
a. to furnish the Licensing Authority within such reasonable period as may be specified in the
notice with: -
i. in case of an applicant company such information as may be described in the notice to
enable the Licensing Authority to determine who has, the controlling interest in the
affairs of the company; or
ii. Licensing Authority may deem necessary for purposes of considering the application;
b. to publish particulars of the application in relation to-
i. the full names of the applicant;
ii. the area, the kind of mineral title, and the mineral or group of minerals to which the
application relates, in such manner as may be specified in the notice;
c. to give such particulars of the application to the person or persons identified, in the manner
specified, in the notice.
(2) In order to enable the Licensing Authority to consider any application the Licensing Authority may-
a. cause such investigations or negotiations to be made or undertaken as the authority may in its
discretion deem necessary; or
b. require the applicant, by notice in writing, to furnish the authority, within such period as may
be specified in the notice, with such proposals, by way of alternative to or in addition to
proposals set out in the application.
(3) In considering any application and the conditions subject to which the application may be granted, the
Licensing Authority shall take into account the need to conserve and protect the natural resources in,
on or under the land to which the application relates and in, on or under adjoining or neighbouring
land.

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COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
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(4) Where the Licensing Authority is prepared to grant an application subject to certain conditions, the
Licensing Authority shall give notice to the applicant accordingly, stating in the notice those conditions
and the conditions referred to in rule 11.
(5) The applicant may, within the period of one month after notice is given to him pursuant to sub rule (4),
or within such further period as the Licensing Authority may, on good cause shown, accept in writing
the conditions or such other conditions as may be agreed by the Licensing Authority and the applicant.
10. Offences in relation to applications. -
If an applicant fails: -
a. To comply with the requirements of a notice referred to in rule 9(1) or 9(2)(b); or
b. To agree as contemplated in rule 9(5), within the period specified in the notice, or such further
period as may be allowed by the Licensing Authority, the application in question shall lapse on
the expiry of the given period.
11. General conditions of mineral titles. -
(1) In addition to any condition contained in the title or a mineral agreement, it shall be a condition of a
mineral title that the holder of the mineral title shall-
a. exercise any right granted to the holder by or under these rules reasonably and in such manner
that the rights and interests of the occupier of any land to which the title relates are not
adversely affected except to the extent that the occupier is compensated;
b. in the employment of persons, give preference to citizens of Pakistan who possess appropriate
qualifications, expertise and experience for the purposes of the operations to be carried on
under the mineral title;
c. carry out training programmes in order to encourage and promote the development of citizens
of Pakistan employed by the holder of the mineral title;
d. with due regard to the need to ensure technical and economic efficiency, make use of products
or equipment, manufactured or produced, and services available;
e. co-operate with the persons involved in the mining industry to enable citizens of Pakistan to
develop skins and technology and to render services in the interest of that industry;
f. take measures to prevent damage to the environment, and where some adverse impact on the
environment is unavoidable, take measures to minimize such impact;
g. make good, any damage caused to the environment, as far as possible, during the course of
exploration or mining operations and on the cessation of such operations due to expiry, or
cancellation of the mineral title or otherwise;
h. in the case of a company, give to the Licensing Authority notice of any change in its name,
registered address, directors or share capital, within thirty days as from the date of the change;
or
i. in the case of a natural person, give to the Licensing Authority any change of his address, within
thirty days of the change.
(2) It shall be a condition of every mineral title that before the commencement of exploration operations
within a reserved or protected forest, thirty days’ notice in writing shall be given to the Forest Officer
concerned of the intention to commence the operations, and that the operations shall be conducted
subject to any condition regarding the use of land that he may prescribe.
(3) A mineral title may provide for the pre-emption of minerals by the Government in such circumstances
as are specified in the title, subject to the payment of the fair market price determined on the basis so
specified.

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COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~8~

(4) It shall be a condition of a mineral title that the holder of the title shall make such contributions for the
benefit of the local population, to the Government to be used for such proposes, as may be provided
for in the title or the mineral agreement.
(5) A mineral title may make provision with respect to any of the matters referred to in rule 7(3), other than
paragraph (f).
12. Restriction on exercise of rights by holder of mineral title. -
(1) The holder of a mineral title shall not carry-on exploration or mining operations at or upon any point
within a distance of fifty meters from the boundary of the exploration area or, as the case may be, the
mining area, except with the 9[prior] permission in writing of the Licensing Authority and in accordance
with the conditions, if any, that it may impose.
(2) The holder of a mineral title shall not carry-on exploration or mining operations at or upon any point
within a distance of one hundred meters from any railway line, reservoir, canal or other public works,
or buildings, except with the 10[prior] permission in writing of the Licensing Authority.
(3) The holder of a mineral title shall not erect any building or carry on any surface operations upon any
public pleasure ground, cremation or graveyard, or place held sacred by any class of persons, or any
house or village site, or public road or on any other place, which the Licensing Authority may exclude
from such operations.
(4) The holder of a mineral title shall not, without the written permission of the appropriate authority-
a. cut or injure any tree on occupied land;
b. disturb the surface of any road;
c. enter on any public pleasure ground, cremation or graveyard, or place held sacred by any class
of persons; or
d. interfere with any right of way, well, tank or cultivated agricultural land.
(5) All surface operations conducted under the authority of these rules within a reserved or protected forest
shall be subject to such conditions as the Forest Department may, by general or special order, from
time to time, prescribe. In the event of any disagreement between the Forest Department and the
holder of a mineral title the matter shall be referred to the Secretary of the Department of Industries,
Mines & Minerals whose decision shall be final.
(6) Before occupying any land for surface operations or clearing any land, the holder of a mineral title shall
give to the Licensing Authority one month’s prior notice in writing specifying by name or other
sufficient designation and quantity the land proposed to be occupied and the purpose for which the
same is required.
(7) The Licensing Authority shall at any time within one month from the receipt of a notice given pursuant
to sub-rule(1) state the objections, if any, on grounds of public interest to the proposed site, and the
holder of the mineral title in question shall not proceed with any of the operations mentioned in sub-
rule (1) until the objections are removed.
(8) The holder of a mineral title shall make and pay such reasonable compensation as may be assessed by
lawful authority in accordance with the laws in force on the subject applying to the lands over which
the title has been granted, for all damage, injury or disturbance which may be done by the holder in
exercise of the powers granted by the title, and the holder shall indemnify the Licensing Authority
against all claims which may be made by third party in respect of any such damage, injury or disturbance.
“In case of dispute” the matter shall be referred to the Licensing Authority for a final decision”.

9
Word “previous” was substituted by word “prior” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
10
Word “previous” was substituted by word “prior” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~9~

(9) Any person who contravenes or fails to comply with the provisions of sub-rules (1), (2), (3), (4), (6), (7),
or (8) shall be guilty of an offence and be liable to pay compensation as determined by the Licensing
Authority, in addition to fine as prescribed by the Government from time to time.
13. Directions to holder of mineral title. -
(1) The Licensing Authority may, with due regard to good reconnaissance, exploration or mining practices,
by notice in writing given to the holder of a mineral title, give directions to the holder in relation to: -
a. the carrying out of reconnaissance operations, exploration operations and mining operations,
including any works connected therewith;
b. the conservation of any natural resources, including mineral resources, and the prevention of
the waste of such resources;
c. the protection and preservation of the surface of mines or works and of buildings, roads,
railways and other structures and enclosures on or above the surface of land, and the conditions
under which such building, road, railway, structure and enclosure may be undermined;
d. the construction, erection, maintenance operation, use or removal of structures, equipment and
other goods used in connection with the exploration for, or the mining or conveyance of
minerals;
e. the protection of the environment including the prevention and combating of pollution of the
air or land which arises or may arise in the course of the operations involved in exploration or
mining of any mineral or after such operations have ceased;
f. the making safe of undermined ground and of dangerous slimes, tailings, dams, waste dumps,
ash dumps, shafts, holes, trenches or excavation of whatever nature made in the course of
exploration or mining operations;
g. the safety, welfare and health of persons employed in or in connection with reconnaissance
operations, exploration operations and mining operations and the conveyance of minerals;
h. the taking, preservation and furnishing to the Licensing Authority of cores, cutting or samples
of minerals from mines or excavations;
i. the submission to the Licensing Authority of reports, returns and other information;
j. the taking of logs or directional surveys or the making of other investigations; and
k. the creation of safety zones in relation to structures erected on land to which the mineral title
relates.
(2) The Licensing Authority may, if the holder of a minerals title fails to comply, within such period as may
be specified in a notice given under sub-rule (1), or such further period as the Authority may on good
cause shown allow in writing, with any direction given under sub-rule (1) to the satisfaction of the
Authority, cause such steps to be taken as may necessary to comply with the direction, and may recover
from the holder the costs incurred in connection with the taking of any such steps, as a debt due to the
Government.
(3) Any holder of a mineral title who contravenes or fails to comply with a notice given to him under sub-
rule (1) shall be guilty of an offence and be punishable with a penalty as prescribed by the Government
from time to time, in addition to rectification of the default within a period given by the Licensing
Authority failing which the mineral title may be withdrawn.

II-RECONNAISSANCE LICENCE
14. Rights of holder of reconnaissance licence. -
(1) Subject to these rules and the conditions of the licence, a reconnaissance licence shall confer on the
holder of the licence: -

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 10 ~

a. the non-exclusive right, or where sub-rule (3) applies, the exclusive right, to carry on
reconnaissance operation in relation to the reconnaissance area in question in respect of any
mineral or group of minerals to which the licence relates; and
b. the right subject to sub-rule (2), to carry on such other operations, including the erection or
construction of ancillary works, in the reconnaissance area as may be reasonably necessary for,
or in connection with, any reconnaissance operation of kind referred to in paragraph (a).
(2) The holder of a reconnaissance licence shall not erect or construct any of the ancillary works such as
are referred to in sub-rule (1) (b) without the prior consent in writing of the Licensing Authority given,
on application made in that behalf to the authority by the holder, either unconditionally or subject to
such conditions as the authority may impose.
(3) Subject to sub-rule (4), the Licensing Authority may, on application by: -
a. a person applying for a reconnaissance licence, grant to the applicant a reconnaissance licence;
or
b. the holder of a reconnaissance licence, cause an endorsement to be made on the reconnaissance
licence, by virtue of which an exclusive right is conferred on the applicant or the holder to
exercise the rights referred to in sub-rule (1) (a), if the Licensing Authority is on reasonable
grounds satisfied that the extent of the reconnaissance operations to be carried out and the
expenditure to be incurred in relation to the reconnaissance area justify the grant of such
exclusive right.
(4) An exclusive right such as is referred to in sub-rule (3) shall not be granted in respect of any area of
land: -
a. to which any other mineral title giving an exclusive right to carry on reconnaissance, exploration
or mining operations relates, or
b. to which a Prospecting Licence relates, to carry on reconnaissance, exploration or, as the case
may be, mining operations for the same mineral or group of minerals as those to which the
exclusive right would, if granted, relate.
(5) Subject to sub-rule (3), a reconnaissance licence shall not confer on the holder an exclusive right to
carry on reconnaissance operations as provided in sub-rule (1)(a).
15. Duration of reconnaissance licence. -
(1) Subject to these rules, a reconnaissance licence shall be valid for such period, not exceeding twelve
months, as may be specified in the licence.
(2) Notwithstanding sub-rule (1), and subject to the other provisions of these rules, where an application
is made by the holder of a reconnaissance licence for the grant of an exploration: -
a. in relation to an area of land in or which constitutes the reconnaissance area; and
b. in respect of a mineral or group of minerals in relation to which the holder of the licence has
the exclusive right under rule 14(3) to carry on reconnaissance operations, the reconnaissance
licence shall not expire in relation to that area of land and mineral or group of minerals while
the application is considered until the licence applied for is issued, or the application is refused
or withdrawn or has lapsed, whichever first occurs.
16. Application for reconnaissance licence. -
(1) An application for the grant of a reconnaissance licence shall: -
a. give in respect of the person or, if there is more than one person, of each person making the
application;
i. case of an individual, the full names and nationality, date of birth and postal and
residential address of the person; or
ii. in the case of a company, its name and particulars of its incorporation and registration,
the full names, address and nationalities of the directors and officers and, if the
THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)
COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 11 ~

company has a share capital, the full names, address and nationalities of any person
who is the beneficial owner of more than five per centum of the issued share capital;
11[or

iii. in case of partnership firm, its name and particulars of its incorporation and
registration, the full names, address and nationalities of the partners or shareholders.]
b. Be made in respect of an area of land which is upto 5,000 sq. km. except where special
exemption is granted by the Government for the mega projects;
c. Identify the mineral or group of minerals in respect of which a licence is sought;
d. Be accompanied by a detailed topographical and geological description of the boundaries of
the area of land of which the application relates, and a plan drawn to an appropriate scale of
such area showing: -
i. its location with reference to the coordinates of the benchmark on topographic sheets;
ii. the extent of the area and the boundaries by reference to identifiable physical features
and co-ordinates reference points;
e. contain particulars of: -
i. the programme of reconnaissance operations 12[prepared by a Mining Consultant
and] proposed to be carried on, the estimated expenditure in respect thereof and the
period within which the operations shall be carried on; and
ii. in the case of an application for an exclusive right such as is referred to in rule 14(3),
the reason for the application.
f. furnish such particulars as may be necessary to determine the applicant’s technical and financial
resources or, where applicable, those of any person contractually engaged to provide such
resources, and copies of relevant contractual agreements;
g. furnish: -
i. particulars of all other mineral titles held, or mines operated in Punjab by the applicant,
whether alone or jointly, currently or during the ten years immediately preceding the
date of the application; or
ii. where no such titles or mines are or were held or operated, particulars of any current
involvement by the applicant in reconnaissance, exploration or mining operations in
and outside the Punjab.
h. state the period, not exceeding twelve months, for which the licence is required; and
i. be accompanied by such documents as the Licensing Authority may require in relation to any
matter referred to in this rule.
(2) An application for the grant of a reconnaissance licence may contain any other matter which in the
opinion of the applicant is relevant to the application.
17. Restrictions on grant of 13[***application for***] reconnaissance licence. -
The Licensing Authority shall not grant 14[***an application for***] a reconnaissance licence: -

a. unless the Licensing Authority is satisfied that the applicant is a fit and proper person to hold
the licence;

11
Inserted vide notification No. SOT (M&MD)8-15/1990(Vol-V) dated 06.01.2023
12
Inserted vide notification No.V(I&MD)3-21/95 Vol-III dated 30.04.2003
13
In the heading, the words “application for” deleted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
14
The words “an application for” deleted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 12 ~

b. if the applicant is, at the time of the application, in default unless the Licensing Authority is of
opinion that special circumstances exist which justify the grant of the application
notwithstanding the default;
c. unless the Licensing Authority, on reasonable grounds, is satisfied:
i. with the programme of reconnaissance operations to be carried on and the expenditure
to be incurred on reconnaissance operations; and
ii. that the applicant has the technical and financial resources to carry on those
reconnaissance operations and make that expenditure; or
d. in respect of an area of land in relation to a mineral or group of minerals in respect of which
an exclusive right has, under rule 14(3), been conferred on any other holder of a reconnaissance
licence.
18. Issue of reconnaissance licence. -
(1) Subject to these rules Licensing Authority shall, upon the 15[grant] of 16[***an application for***] a
reconnaissance licence, issue to the applicant a reconnaissance licence on such conditions as may be
agreed
(2) A reconnaissance licence shall:
a. state the full names and address of the holder of the licence;
b. state the date on which and the period for which the licence is issued pursuant to rule 13(1);
c. state the extent of the area granted subject to rule 16(1)(b);
d. contain a description and plan, prepared by a qualified surveyor of the reconnaissance area, as
provided in rule (16)(1)(d) containing geometrical or numerical depictions, or any combination
thereof, in words or symbols of the area;
e. state the conditions, other than those referred to in rule 11, subject to which the licence is
issued;
f. state the mineral or group of minerals in respect of which the licence is issued;
g. set out the approved programme of reconnaissance operations and related expenditures and;
h. contain such other particulars as the Licensing Authority, either generally or in any particular
case, may determine.
19. Work programme of reconnaissance operations. -
(1) Where the holder of a reconnaissance licence is, by virtue of the conditions of the licence, required to
carry out or to make within a particular period, in accordance with a work programme, certain minimum
reconnaissance operations and expenditure, he shall furnish the Licensing Authority, on such date or
dates as may be specified in the licence, or as may be determined by the Licensing Authority and made
known by notice in writing given to the holder, with particulars of such reconnaissance operations
carried out and the expenditure made.
(2) The Licensing Authority may, on application made to it by the holder of a reconnaissance licence by
notice in writing to the holder, amend any work programme or expenditure referred to in sub-rule (1)
in accordance with proposals contained in the application or to such extent as the Licensing Authority
may deem expedient.
(3) The holder of a reconnaissance licence who fails to comply with the requirements of a work programme
referred to in sub-rule (1) shall, subject to the provisions of rule 74, be liable to pay in the Provincial

15
The word “granting” substituted by word “grant” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
16
The words “an application for” deleted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 13 ~

Fund such penalty as may be provided for in the conditions of the reconnaissance licence in question,
in the event of such a failure.
20. Records, etc., licence to be kept, etc. by holder of reconnaissance licence. -
(1) The holder of a reconnaissance licence shall: -
a. keep at an address in Punjab a proper record in such form as may be determined in writing by
the Licensing Authority in relation to: -
i. the location and nature of all photo-geological studies, imaging and geophysical and
other surveys carried on by the holder in the course of the reconnaissance operations
in the reconnaissance area to which the reconnaissance licence relates, and the results,
interpretations and assessments of such studies and surveys;
ii. the persons employed by the holder for purposes of the reconnaissance operations
including the names, addresses, nationalities and ages of such persons;
iii. the expenditure incurred by the holder in the course of the reconnaissance operations;
and
iv. such other information as may be determined by the Licensing Authority and specified
by notice in writing given to the holder,
and shall retain such records for a period of not less than three years from the date of expiry of the
licence;
b. prepare or cause to be prepared and maintained at all times, plans and maps in respect of the
reconnaissance areas;
c. prepare in respect of the period of the currency of the reconnaissance licence a statement of
income and expenditure derived or incurred in connection with the reconnaissance operations
in the reconnaissance area and such other financial statements as the Licensing Authority may
require in such form as the authority may determine; and
d. submit, within sixty days after the end of the currency of the reconnaissance licence in respect
of the whole of the reconnaissance area, or together with an application for an exploration
licence in respect of the whole or any portion of the reconnaissance area, to the Licensing
Authority: -
i. in such form as may be determined in writing by the Licensing Authority, a report
in duplicate or, in the case where an application is made for an exploration licence
in respect of a portion of the reconnaissance area, separate reports in duplicate in
respect of such portion and the remainder of the reconnaissance area, setting out in
relation to such period.
e. an evaluation of the prospects of the discovery of any mineral or group of minerals in the
reconnaissance area;
f. all information, including photographs, tabulations, tapes and discs, in the records referred to
in paragraph (a) and the plans and maps referred to in paragraph (b); and
i. the statement of income and expenditure and financial statements referred to in
paragraph (c).
(2) In the event of the cancellation or surrender of a reconnaissance licence under rule 57 or rule 58, or
expiry of the licence, the person who was the holder of such licence immediately before the cancellation,
surrender or expiry shall, on a date not later than thirty days after the date of the cancellation, surrender
or expiry, deliver to the Licensing Authority: -
g. all records kept in terms of the provisions of sub-rule (1)(a).
h. all maps and plans referred to in sub-rule (1)(b);
i. all reports, photographs, tabulations, tapes and discs prepared by or on behalf of such person
in the course of the reconnaissance operations; and

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j. such other books, documents, records and reports as the Licensing Authority may require by
notice in writing given to such person,
or copies of such records, maps, plans, reports, photographs, tabulations, tapes, discs, books and
documents, unless an exploration licence is issued to such person in relation to the area to which such
reconnaissance licence relates with effect from the date following on the date of the cancellation, surrender
or expiry or such later date as the Licensing Authority may, on good cause shown, allow.

(3) Any person, referred to in sub-rule (1) or (2), who contravenes or fails to comply with the provisions
of that sub-rule shall be guilty of an offence and be punishable with a penalty as prescribed by the
Government from time to time, in addition to the rectification of the default within the time given by
the Licensing Authority failing which the mineral title may be withdrawn.

III – EXPLORATION LICENCE

21. Right of holder of exploration licence. -
(1) Subject to these rules and the conditions of the licence, an exploration shall confer on the holder of the
exploration licence: -
a. the exclusive right to carry on exploration operation in the area in question in respect of any
mineral or group of minerals to which the licence relates;
b. subject to the rights of surface holder, the right to enter and occupy the land which comprises
the exploration area for the purpose of carrying out exploration operations;
c. the right to take and divert water on or flowing through such land and use it for any purpose
necessary for exploration operations subject to and in accordance with the provisions of the
relevant law;
d. with the permission in writing of the Licensing Authority previously obtained generally or in
every particular case the right: -
ii. to remove from the exploration area any mineral or group of minerals or sample
thereof, for the purpose of testing, assaying or pilot plant studies, from any place
where it was found or incidentally won in the course of such exploration operations
to any other place whether within or outside the Punjab or subject to such other
permission as may be required under other relevant law, outside Pakistan; and
iii. to sell or otherwise dispose of limited amounts of any such mineral or group of
minerals or of material excavated during exploration operations; and
e. subject to sub-rule (2), to do all other things, including the erection or construction of ancillary
works, in the exploration area, as may be reasonably necessary for, or in connection with, any
exploration operations of the kind referred to in paragraph (a).
(2) The provisions of rule 12(2) shall apply mutatis mutandis in relation to the holder of an exploration
licence wishing to erect or construct accessory works under sub-rule (1) as they apply in relation to the
holder of a reconnaissance licence.
22. Duration of exploration licence. -
(1) Subject to these rules, an exploration licence shall be valid: -
a. for such period, not exceeding three years, as may be specified in the licence and;
b. subject to rule 27(2)(e), for such further period, not exceeding three years, as may be determined
by the Licensing Authority in relation to any renewal of the licence as from the date on which
the licence would have expired if an application for its renewal had not been made, or, on the
date on which the application for the renewal is granted, whichever is later.
(2) Notwithstanding the provisions of sub-rule (1) but subject to the other provisions of these rules: -

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a. an exploration licence shall not expire during any period when an application for renewal of
the licence is being considered until the application is refused or withdrawn or lapses, whichever
first occurs, or if the application is granted, until such time as the licence is renewed in
consequence of the application; or
b. where the application is made by the holder of the exploration licence for the grant of a mineral
deposit retention licence or a mining lease in relation to an area of land in or which constitutes
the exploration area, and in respect of a mineral or group of mineral to which the exploration
licence relates, the exploration licence shall not expire in relation to that area of land and that
mineral or group of minerals until the application is refused or withdrawn or lapses, whichever
is earlier, or if the application is granted, until the mineral deposit retention licence or, as the
case may be the mining lease, applied for is issued.
23. Effect of issue of mining lease or mineral deposit retention licence on exploration area. -
(1) Where a mining lease is issued to the holder of an exploration licence in respect of an area of land in,
or which constituted, the exploration area and in respect of a mineral or group of minerals to which the
exploration licences related the exploration licence shall cease to have effect in relation to that area of
land as from the date on which the mining lease is issued.
(2) Where a mineral deposit retention licence is issued to the holder of an exploration licence in respect of
an area of land in, or which constituted, the exploration area in respect of a mineral or group of minerals
to which the exploration licence relates the exploration licence shall cease to have effect in relation to
that area of land on the date on which the mineral deposit retention licence is issued.
24. Application for exploration licence. -
(1) An application for an exploration licence shall: -
a. in the case of an individual, give such information as is referred to in rule 16(1) a(i);
b. in the case of a company, give such information as is referred to in rule 16(1) a(ii);
17[bb. in the case of partnership firm, give such information as is referred to in rule 16 (1) a(iii);]

c. be accompanied by a plan such as is referred to in rule 16(1)(d);

d. furnish a comprehensive geological description of the area of land over which the licence is
sought, identify the potential for, or the nature of, mineralization contained therein and identify
any mineral or group of minerals in respect of which the licence is sought.
e. Contain particulars of: -
i. The programme of exploration operations proposed to be carried on, the estimated
expenditure in respect thereof and the period within which the operations shall be
carried on;
ii. The anticipated effect which the proposed exploration operations may have on the
environment and measures to be taken to prevent or minimize any adverse effects
thereon;
f. Furnish particulars such as are referred to in rule 16(1)(f);
g. State the period, not exceeding three years, for which the licence is required;
h. Be accompanied by such documents as the Licensing Authority may require in relation to any
matter referred to in this rule; and
i. Be made in respect of an area of land not exceeding 500 Square Kilometers.

17
Inserted vide notification No. SOT (M&MD)8-15/1990(Vol-V) dated 06.01.2023
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(2) The application may contain any other matter which in the opinion of the applicant is relevant to the
application.
25. Exercise of power to grant or refuse application for exploration licence. -
(1) Subject to these rules, where an application for an exploration licence: -
a. is made by the holder of a reconnaissance licence and the application: -
i. relates to an area of land which constitutes the reconnaissance area; and
ii. is in respect of any mineral or group of minerals in relation to which the holder of the
reconnaissance licence has, under rule 14(3), the exclusive right to carry on
reconnaissance operations in that area of land, the Licensing Authority shall grant the
application;
(2) The Licensing Authority shall not grant an application for an exploration licence to any person relation
to any area of land in respect of any mineral or group of minerals if, at the time the application is made:
-
a. the area of land is in or constitutes a mining area or an area of land subject to a mining lease
dealing with small scale mining;
b. any mineral deposit retention licence is held by any person in relation to the area of land, unless
the Licensing Authority deems it desirable in the interests of the development of the mineral
resources of Punjab to grant the application and, if the mineral deposit retention licence is in
respect of the mineral or group of minerals to which the application relates, the holder of
mineral deposit retention licence agrees to the application being granted; or
c. any reconnaissance licence or exploration licence conferring an exclusive right to carry on
reconnaissance operations or, as the case may be, exploration operations, in the area of land in
respect of the mineral or group of minerals to which the application relates, is held by any other
person unless:-
i. that other person agrees to the application being granted; and
ii. the Licensing Authority deems it desirable in the interest of the development of the
mineral resources of Punjab to grant the application.
(3) An application for an exploration licence shall not be granted to an applicant: -
a. if the applicant is, at the time of the application, in default unless the Licensing Authority is of
opinion that the default is not substantial and that special circumstances exist which justify the
grant of the application notwithstanding the default, and
b. unless the Licensing Authority is, on reasonable grounds, satisfied: -
i. with the proposed programme of exploration operations to be carried on and the
proposed expenditure to be incurred on exploration operations; and
ii. that the person concerned has the technical and financial resources to carry on the
exploration operations.
(4) An application for an exploration licence shall not be granted in respect of an area of land exceeding
500 square kilometers.
26. Issue of exploration licence. -
The provisions of rule 18 shall apply mutatis mutandis in relation to the issue of an exploration licence as they
apply in relation to the issue of a reconnaissance licence
27. Application for renewal of exploration licence. -
(1) Subject to this rule, the provisions of rules 24 and 25 shall apply mutatis mutandis in relation to an
application for the renewal of an exploration licence as they apply in relation to an application for the
grant of an exploration licence
(2) An application for the renewal of an exploration licence shall: -
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a. be made not later than ninety days before the expiry date of the licence or such later date but
not later than such expiry date, as the Licensing Authority may allow;
b. not be made: -
i. in the case of an application for a first renewal of the licence, in respect of an area of
land greater in extent that fifty per centum of the exploration area at the date of the
issue of the exploration licence;
ii. in the case of an application for a second renewal, in respect of an area of land greater
in extent than fifty per centum of the exploration area immediately prior to the date of
the application for the second renewal, or such other proportion of the exploration
area as the Licensing Authority may, for good technical or other reason, grant; or
iii. (ii) in the case of a second renewal unless it is shown by the holder of the exploration
licence that a further renewal is necessary for the completion of a full feasibility study
of the discovered deposits and that the proposed activities were not reasonably
completed during the first renewal;
c. be accompanied by a report in duplicate containing the particulars contemplated in rule 31(1)(d)
prepared in respect of the immediately preceding period of the currency of the exploration
licence;
d. describe and identify the part of the exploration area to be retained and the part to be
relinquished;
e. be accompanied by the proposed work programme and expenditures for the period of the
renewal; and
f. in the case of a second renewal, shall give the reason, supported by documentary proof, for
requesting the renewal.
(3) The application may be made on not more than two occasions, and
(4) Subject to the provisions of sub-rules (5) and (6), the Licensing Authority shall not grant an application
for the renewal of an exploration licence: -
a. If the minimum exploration operations and expenditures proposed to be carried out or
expended in the renewal period in respect of the area of land to which the application relates,
is not satisfactory; or
b. If the applicant is, at the time of the application, in default unless the Licensing Authority is of
the opinion that the default is not substantial and that special circumstances exist which justify
the grant of the application notwithstanding the default.
(5) The Licensing Authority shall not refuse under sub-rule (4)(a) to grant the application in question if the
proposals in respect of exploration operations and expenditures are in accordance with the terms and
conditions of a mineral title or mineral agreement relating to proposals of that kind in respect of the
exploration licence in question.
(6) The Licensing Authority shall not refuse under sub-rule (4)(b) to grant the application in question,
unless the Licensing Authority has informed the holder of the licence in writing of its intention to refuse
the application: -
a. setting out particulars of the alleged default, and
b. requiring the holder to make representations to the Licensing Authority in relation to the
alleged default or to remedy that default on or before a date specified in the notice, and the
holder has failed to remedy that default or make representations which, in the opinion of the
Licensing Authority removes the ground for the intended refusal.

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(7) The Licensing Authority shall not grant 18[***an application for***] second renewal of an exploration
licence unless the applicant has shown that the renewal sought is necessary for the completion of
feasibility studies and could not have been reasonably completed during the first renewal.
28. Application for amendment of exploration licence. -
(1) Subject to sub-rule (2), the holder of an exploration licence may apply for the amendment of the licence.
a. by the extension or reduction, or both, of the exploration area to which the licence relates; or
b. by the addition of any mineral or group of minerals, discovered in the exploration area, to
which the licence does not relate subject to the condition that the Licensing Authority may
grant or refuse such applications for reasons to be recorded in writing.
(2) The provisions of rules 24 and 25 shall apply mutatis mutandis in relation to an application referred to
in sub-rule (1) as these apply in relation to an application for the grant of an exploration licence.
(3) If an application under sub-rule (1) is granted by the Licensing Authority, it shall amend the exploration
licence concerned accordingly.
29. Obligations of holder of exploration licence. -
(1) It shall be a condition of an exploration licence that the holder of the licence shall: -
a. commence operations within three months of the issue of the licence, and carry on exploration
operations in the exploration area in accordance with good exploration practices;
b. take all reasonable steps necessary to secure the safety, welfare and health of persons employed
for purposes of those operations in the exploration area and to protect the environment;
c. maintain in good condition and repair all structures, equipment and other goods in the
exploration area and used in connection with the exploration operations;
d. remove from the exploration area all structures, equipment and other goods not used or
intended to be used in connection with the exploration operations;
e. take reasonable steps to warn persons who may from time to time be in the vicinity of any such
structures, equipment or other goods of the possible hazards resulting there from;
f. give to the Licensing Authority notice of the discovery of a deposit of any mineral or group of
minerals to which the holder’s licence relates within ten days after the holders determines that
the deposit is of potential commercial interest;
g. give to the Licensing Authority notice of the discovery of a deposit of any mineral or group of
minerals including radioactive minerals necessary for the generation of nuclear energy, mineral
oil and natural gas, other than a mineral or group of minerals to which his licence relates, within
ten days after making the discovery.
(2) Any holder of an exploration licence who contravenes or fails to comply with the provisions of sub-
rules (1) shall be guilty of an offence and be punishable with a penalty as prescribed by the Government
from time to time, in addition to the rectification of the default within the time given by the Licensing
Authority failing which the mineral title may be withdrawn.
30. Work programme of exploration operations. -
The provisions of rule 19 shall apply mutatis mutandis in relation to the holder of an exploration licence, as
they apply in relation to the holder of a reconnaissance licence, and for that purpose any reference in that rule
to reconnaissance licence or reconnaissance operations shall be deemed to be a reference to exploration
licence or, as the case may be, exploration operations.

18
The word “an application for” deleted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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31. Records, etc., to be kept, etc. by holder of exploration licence. -

(1) The holder of an exploration licence shall: -
a. kept at an address in Punjab a proper record in such form as may be determined in writing by
the Licensing Authority in relation to: -
i. the location and results of all photo-geological studies, imaging, geological mapping,
geochemical sampling, geophysical surveying, drilling, pitting and trenching,
sampling and bulk sampling and other activities undertaken by the holder in the
course of the exploration operations carried on by the holder, in, or in connection
with, the exploration area to which the exploration licence relates;
ii. the results of all analytical, metallurgical and mineralogical work incidental to such
exploration operations;
iii. the interpretation and assessment of the studies, surveys and work referred to in sub-
paragraphs (1) and (ii);
iv. the persons employed by the holder for purpose of such exploration operations,
including the names, address, nationality and ages of such persons;
v. the nature, mass or volume and value of any mineral or group of minerals sold or
otherwise disposed of and the full name and address of any person to whom such
mineral or group of minerals was sold or otherwise disposed of;
vi. the expenditures incurred by the holder in the course of such exploration operations,
and
vii. such other information as may be determined in writing by the Licensing Authority
and specified by notice in writing given to such holder;
b. prepare or cause to be prepared and maintained at all times plans and maps in respect of
exploration area;
c. prepare in respect of the period of the currency of the exploration licence a statement of income
and expenditure derived or incurred in connection with the explorations in the exploration area
and such other financial statement as the Licensing Authority may require in such form as the
Licensing Authority may determine;
d. submit within 30 days after the end of each quarter during the currency of such exploration
licence to the Licensing Authority in such form as may be determined in writing by the authority
a return or returns containing in relation to such quarter: -
i. a summary of the particulars and information contained in the record referred to in
paragraphs (a) and (c) as may be required by the Licensing Authority and indicated
in such form or requested by the authority by notice in writing given to the holder;
and
ii. such other particulars as the Licensing Authority may require in relation to the
exploration operations carried on by the holder; and
e. submit, within 60 days after the end of the currency of such exploration licence and of each
period during which such exploration licence has been renewed in respect of the whole of the
exploration area, or together with an application for the renewal of such exploration licences
or an application for a mineral deposit retention licence or mining lease in respect of the whole
or any portion of the exploration area, to the Licensing Authority, in such form as may be
determined in writing by the Licensing Authority, a report in duplicate or, in the case where an
application is made for a mineral deposit retention licence or mining lease in respect of a
portion of the exploration area, separate reports in duplicate in respect of such area and the
remainder of such exploration area in relation to such period: -
i. an estimate of the mineral reserved in the exploration area properly illustrated by
way of plans and maps according to an appropriate scale;

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ii. the nature, mass or volume and value of any mineral or group of minerals sold or
otherwise disposed of and the full name and address of any person to whom such
mineral or group of minerals has been sold or otherwise disposed of;
iii. an evaluation of the prospects of the discovery of any mineral or group of minerals
in the exploration area; and
i. such other particulars as the Licensing Authority may require in relation to the
exploration operations carried on by such holder.
(2) In the event of the cancellation or surrender of an exploration licence under rule 57 or rule 58 or the
expiration of an exploration licence, the person who was the holder of such licence immediately before
such cancellation or surrender or expiration shall, on a date not later than one month after the date of
such cancellation, surrender or expiration deliver to the Licensing Authority
a. all records kept in terms of the provisions of sub-rule (1)(a);
b. all maps and plans referred to in sub-rule (1)(b);
c. all reports, photographs, tabulations, tapes and discs prepared by or on behalf of such person
in the course of such exploration operation; and
d. such other books, documents, records and reports as the Licensing Authority may require by
notice in writing or copies of such records, maps, plans, reports, photographs, tabulations,
tapes, discs, books and documents, unless a mineral deposit retention licence or a mining lease
is issued to such person in relation to the area to which such exploration licence related, with
effect from the date following the date of such cancellation, surrender or exploration or such
later date as the Licensing Authority may, on good cause shown, allow.
(3) Any person referred to in sub-rule (1) or (2) who contravenes or fails to comply with the provisions of
that sub-rule shall be guilty of an offence and be punishable with a penalty as prescribed by the
Government from time to time, in addition to the rectification of the default within the time given by
the Licensing Authority failing which the mineral title may be with-drawn.

IV – MINERAL DEPOSIT RETENTION LICENCE

32. Rights of holder of mineral deposit retention licence. -
(1) Subject to these rules and the conditions of the licence, a mineral deposit retention licence shall
authorize the holder of the licence: -
a. to retain the retention area in question for future mining operations subject to the provisions
of rule-34;
b. to carry out a programme of operations such as is referred to in rule 42;
c. with the permission of the Licensing Authority previously obtained whether generally or in
every particular case: -
i. to remove from the retention area any mineral or group of minerals or sample thereof,
for the purposes of testing, assaying or pilot plant studies, from any place where it was
found or incidentally won in the course of carrying out such programme of operations
to any other place whether within or outside Punjab or, subject to such other
permission as may be required under other law, outside Pakistan; and
ii. to sell or otherwise dispose of limited amounts of any mineral or group of minerals or
material excavated during operations so carried out; and
d. subject to sub-rule (2), to do all other things, including the carrying out of investigations and
operations, and the erection or construction of ancillary works, in the retention area, as may be
reasonably necessary for, or in connection with, any operation as contemplated in paragraph
(b).

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(2) The provisions of rule 14(2) shall apply mutatis mutandis in relation to the holder of a mineral deposit
retention licence wishing to erect or construct accessory works under sub-rule (1) as they apply in
relation to the holder of a reconnaissance licence wishing to do so under rule 14.
33. Persons who may apply for mineral deposit retention licence. -
No person shall apply for the grant of a mineral deposit retention licence unless: -

a. he is the holder of an exploration licence in relation to the area of land and the mineral or group
of minerals to which the application relates;
b. a potentially economic discovery of mineral deposit has been made in the exploration area;
c. the applicant has completed a full feasibility study to determine whether the mineral discovered
can be developed and produced on a profitable basis;
d. the applicant wishes to retain the exploration area or a part thereof for future development of
the mineral deposit discovered as development could not then be reasonably undertaken on a
profitable basis for good economic or technical reasons; and
e. exploration operations and relevant studies have been undertaken to the maximum extent
feasible in the circumstances.
34. Duration of mineral deposit retention licence. -
(1) Subject to these rules, a mineral deposit retention licence shall be valid: -
a. 19[for] such period, not exceeding two years, as may be specified in the licence; and
b. for such further period, not exceeding one year, as may be determined by the Licensing
Authority at the time of the granting of any application for the renewal of the licence.
(2) Notwithstanding the provisions of sub-rule (1) but subject to the other provisions of these rules: -
a. a mineral deposit retention licence shall not expire during the period an application for renewal
of the licence is being considered, until the application is refused or withdrawn or lapses,
whichever is earlier or if the application is granted, until such time as the licence is renewed in
consequence of the application; or
b. where an application is made by the holder of a mineral deposit retention licence for the grant
of a mining lease in relation to an area of land in or which constitutes the retention area, and
in respect of any mineral or group of minerals to which the licence relates, the licence shall not
expire in relation to that area of land and that mineral or groups of minerals until the application
is refused or withdrawn or lapses, whichever first occurs, or if the application is granted, until
such time as the mining lease applied for is issued.
(3) Where a mining lease is issued to the holder of a mineral deposit retention licence in respect of an area
of land which forms part of the retention area and in respect of any mineral or group of minerals to
which the mineral deposit retention licence relates: -
a. that mineral deposit retention licence shall cease to have effect in relation to the area of land as
from the date of the issue of the mining lease; and
b. any other mineral deposit retention licence for the same mineral shall so cease to have effect
unless the Licensing Authority has, with the concurrence of the holder to whom the mining
lease is issued, determined otherwise on such conditions as may be specified in writing by the
Licensing Authority.
35. Application for mineral deposit retention licence. -

19
The word “or” substituted by word “for” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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(1) An application for a mineral deposit retention licence shall: -

a. in the case of a individual, give such information as is referred to in rule 16(1)(a)(i);
b. in the case of a company, give such information as is referred to in rule 16(1)(a)(ii);
c. be accompanied by a description and plan such as is referred to in rule 16(1)(d) of the area of
land, not greater than the exploration area concerned, over which the licence is sought;
d. identify the mineral or group of minerals to which the application relates and furnish full details
of the proven, estimated or inferred mineral reserves contained therein, and of the mining
conditions pertaining thereto;
e. contain particulars of: -
i. the proposals for the carrying out of work in the exploration area and expenditures
during the period of the retention licence in respect of which the application is made
and if no further work in or in relation to the exploration area could be usefully carried
out the reasons therefore;
ii. the state of the environment in the area to which the application relates, the likely
adverse impact the operations to be carried on may have on the environment and the
measures to be taken to prevent or mitigate such impact;
f. furnish particulars such as are referred to in rule 16(1)(f);
g. furnish particulars of the exploration licence held by the applicant;
h. give reasons in support of the claim that the mineral deposit discovered in the area of land to
which the application relates could not then be mined on a profitable basis; and a forecast of
the circumstances in which, and the earliest date on which, the mineral or group of minerals
discovered might be so mined;
i. state the period for which the licence is required;
ii. be accompanied by relevant data, studies, analyses, documents and such other
information as the Licensing Authority may require in relation to the application;
(2) An application for a mineral deposit licence may contain any other matter which in the opinion of the
applicant is relevant to the application.
(3) An application for a mineral deposit retention licence shall be made not later than one hundred and
eighty days before the expiry of the exploration licence or any renewal thereof, or such later date, but
not later than such expiry date, as the Licensing Authority may allow.
36. Exercise of power to grant or refuse application for mineral deposit retention licence. -
(1) The Licensing Authority shall not grant an application for a mineral deposit retention licence to a person
who is, under rule 33, entitled to apply for such licence: -
a. in respect of an area larger than an area which in the opinion of the Licensing Authority is
required, having regard to the minerals or groups of minerals discovered in the area to which
the application relates, to carry on the mining operation;
b. if the applicant is at the time of the application in default, unless, the Licensing Authority is of
the opinion that the default is not substantial and that special circumstances exist which justify
the grant of the application;
c. in relation to any mineral or group of minerals, unless the Licensing Authority is on reasonable
grounds satisfied: -
i. that the deposit of the mineral or group of minerals in the area to which the application
relates cannot, for the reasons set out in the application, be mined on a profitable basis
at the time and can probably be mined on the expiration of the period contemplated
in rule 34;
ii. that no further work can be usefully carried on in the exploration area which may have
the effect of negating the reasons so given; and

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iii. that it is desirable, having regard to the future utilization of the mineral resources of
Punjab to grant such licence;
d. in relation to the area of land to which such application relates in respect of any mineral or
group of minerals, if at the time of such application: -
i. such area of land forms part of any exploration area in relation to any mineral or group
of minerals, other than the mineral group of minerals to which the application relates,
unless: -
(aa) the applicant has given a notice in writing, not later than on the date on which
such application is made, to the holder of the exploration licence in respect of that
exploration area, of his application or intended application, as the case may be for such
mineral deposit retention licence;

(bb)the Licensing Authority has afforded the holder referred to in paragraph (aa) a
reasonable opportunity to make representation in relation to such application;

(cc) the Licensing Authority, with due regard to any representation made in terms of
paragraph (bb), deems it desirable to grant such licence having regard to the future
utilization of the mineral resources of Punjab, or

ii. such area of landforms part of any retention area in relation to any mineral or group
of minerals, other than the mineral or group of minerals to which the application
relates, unless: -
(dd) the Licensing Authority deems it desirable, having regard to the future utilization
of the mineral resources of Punjab to grant such licence;

(ee) the Licensing Authority is on reasonable grounds satisfied that the programme of
operations referred to in paragraph (1)(b) of rule 32 and any other investigations and
operations referred to in paragraph (1)(d) of that rule to be carried on by virtue of such
licence, if issued, will not detrimentally affect the rights of any holder of the mineral
deposit retention licence in respect of any such area; and
(ff) the holder of the mineral deposit retention licence has consented to the application
for the grant of the mineral deposit retention licence.
(2) The Licensing Authority shall not refuse to grant an application for a mineral deposit retention licence
on any ground contemplated in sub-rule (1)(b), unless the Licensing
a. Shas by notice in writing informed such holder of its intention to refuse such application.
i. setting out particulars of the grounds for that intention, and
ii. requiring such holder to make representation to the Licensing Authority in relation
to such grounds or to remedy any matter relating to such grounds specified in such
notice, and such holder has failed to remedy such matter or to make representations;
and
b. has taken into consideration any representation made by such person.
37. Issue of mineral deposit retention licence. -
The provisions of rule 18 shall apply mutatis mutandis in relation to the issue of a mineral deposit retention
licence as they apply in relation to the issue of a reconnaissance licence.
38. Conditions. -
It shall be a condition of every mineral deposit retention licence that the department may disclose
information with respect to the retention area to a person if the department is satisfied that the person with

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bonafide intention seeks the information for the purpose of investigating the possibility of carrying on
mining operations in the retention area.
39. Application for renewal of mineral deposit retention licence. -
(1) Subject to sub-rule (2), the provisions of rules 35 and 36 shall apply mutatis mutandis in relation to an
application for the renewal of a mineral deposit retention licence as they apply in relation to an
application for the grant of a mineral deposit retention licence
(2) An application for the renewal of a mineral deposit retention licence shall be made not later than ninety
days before the date on which the licence expires if not renewed or such later date, but not later than
such expiry date, as the Licensing Authority may, on good cause shown, allow.
(3) Subject to the provisions of sub-rule (4), the Licensing Authority shall refuse an application for the
renewal of a mineral deposit retention licence if the applicant is, at the time of the application, in default
unless the Licensing Authority is of the opinion that the default is not substantial and that special
circumstances exist which justify the grant of the application notwithstanding the default.
(4) The Licensing Authority shall not refuse, under sub-rule (3), to grant the application in question, unless
the authority has, by notice in writing informed the holder of the licence of its intention to refuse the
application: -
a. setting out particulars of the alleged default, and
b. requiring the holder to make representation to the Licensing Authority in relation to the alleged
default or to remedy that default on or before a date specified in the notice,
and the holder has failed to remedy that default or make representation, which, in the opinion of the
Licensing Authority, is a ground for the intended refusal.

40. Application for amendment of mineral deposit retention licence. -

(1) Subject to sub-rule (2), the holder of a mineral deposit retention licence may apply for the amendment
of the licence: -
a. by the reduction of the retention area to which the licence relates; or
b. by the addition of any mineral or group of minerals discovered in the retention area, to which
the licence does not relate.
(2) The provisions of rules 37 and 38 shall apply mutates mutandis in relation to an application under sub-
rule (1) as they apply in relation to an application for the grant of a mineral deposit retention licence.
(3) If an application under sub-rule (1) is granted by the Licensing Authority, it shall amend the mineral
deposit retention licence accordingly.
41. Obligations of holder of mineral deposit retention licence. -
The provisions of rule 29 (1) shall apply mutatis mutandis in relation to a mineral deposit retention licence
as they apply in relation to an exploration licence, and for that purpose, the reference to the holder of an
exploration licence shall be deemed to be a reference to the holder of a mineral deposit retention licence.
42. Work programme under mineral deposit retention licence. -
The holder of a mineral deposit retention licence shall carry out any programme of operations, including
evaluation, from time to time, of the mineral deposit concerned, as may be specified in the licence or directed
to be performed by the Licensing Authority, as a condition of any renewal of the licence.

43. Direction to apply for mining lease. -

(1) Where
a. during the term of a mineral deposit retention licence: -

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i. proposals are made to the Licensing Authority, in writing, by a person, other than the
holder of the licence, to mine in the retention area, under a mining lease granted to the
person, the mineral or group of minerals to which the mineral deposit retention licence
relates; and
ii. the Licensing Authority is satisfied that the proposals: -
(aa) would be likely to ensure the efficient, beneficial and timely use of that mineral
or group of minerals; and
(bb)are made in good faith by a person who has the technical and financial ability
and experience to carry out the proposal and is otherwise qualified to hold a mining
lease; or

b. during the term of a mineral deposit retention licence, the Licensing Authority has good reason
to believe
i. that a mineral or group of minerals to which the mineral deposit retention licence
relates may be mined, sold or otherwise disposed of on a profitable basis; or
ii. that further work may indicate the existence of any such mineral or group of minerals
which may be mined, sold or otherwise disposed of on a profitable basis
the Licensing Authority, if it wishes to proceed with the development of the deposit, shall, before doing
so, afford the holder of the mineral deposit retention licence, in accordance with sub-rule (2), an
opportunity to apply for a mining lease.
(2) In the circumstances referred to in sub-rule (1), the Licensing Authority shall, by notice in writing, given
to the holder of the mineral deposit retention licence: -
a. in the case referred to in sub-rule (1) (a): -
i. inform the holder that it has received proposals of the kind referred to in that sub-rule
giving the name of the person making the proposals; and
ii. direct the holder to apply, within such reasonable period as is specified in the notice,
for a mining lease over land in, or which constitutes, the retention area, in respect of
the mineral or group of minerals to which the mineral deposits retention licence is
applied or;
b. the case referred to in sub-rule (1) (b) direct the holder: -
i. to apply for a mining lease within such reasonable period as may be specified in the
notice;
ii. to carry on mining operations in respect of the mineral or group of minerals;
iii. to carry on such further exploration operations as may be specified in the notice in
relaxation to the retention area within such reasonable period as may be specified in
the notice; or
iv. to surrender, if the holder so wishes, the retention area in accordance with these rules.
(3) Where, in the case referred to in sub-rule (1) (a), before the expiration of the period so specified, the
holder of the mineral deposit retention licence: -
a. Fails to apply for the mining lease as directed; or
b. notifies the Licensing Authority in writing that no such application shall be made, the mineral
deposit retention licence shall be deemed to have been cancelled on the expiration of that
period or, as the case may be, when the Licensing Authority is so notified, and rule 57 (8) shall
have effect accordingly.
(4) Where, as provided in sub-rule (3), a mineral deposit retention licence is deemed to have been cancelled,
the Licensing Authority shall, by notice in writing given to the person who made the proposals referred
to in sub-rule (1): -
a. inform the person accordingly; and
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b. invite the person to apply under these rules, within the period specified in the notice, for a
mining lease to give effect to those proposals.
(5) Any holder of a mineral deposit retention licence who contravenes or fails to comply with a direction
given to the holder under sub-rule (2) (b) shall be guilty of an offence and be punishable with a penalty
as prescribed by the Government from time to time, in addition to the rectification of the default within
the time given by the Licensing Authority failing which the mineral title may be withdrawn.
44. Records, etc., to be kept, etc., by holder of mineral deposit retention licence. -
(1) The holder or mineral deposit retention licence shall: -
a. keep at an address in Punjab a proper record in such form as may be determined in writing by
the Licensing Authority in relation to: -
i. the investigations and operations, including the erection or construction of ancillary
works, in such retention area as may be reasonably necessary, carried on by the holder
for, or in connection with, future mining operations contemplated in rule 32;
ii. the location and results of all photo geological studies, imaging, geological mapping,
geochemical sampling, geophysical surveying, drilling, pitting and trenching, sampling
and bulk sampling and all other activities undertaken by the holder in the course of the
exploration operations carried on by the holder, or in connection with the retention
area to which the mineral deposit retention licence relates;
iii. the results of all analytical metallurgical and mineralogical work incidental to such
exploration operations;
iv. the interpretation of land assessment of the studies, surveys and works referred to in
sub-paragraphs (ii) and (iii);
v. the persons employed by the holder for purposes of such investigations and
operations, including the names, addresses, nationality and ages of such persons;
vi. the expenditures incurred by the holder in the course of such exploration operations;
and
vii. such other information as maybe determined by the Licensing Authority and specified
by notice in writing addressed and delivered to such holder.
b. prepare or cause to be prepared and maintained at all times plans and maps in respect of the
retention area
c. submit within 60 days after the end of the currency of such mineral deposit retention licence
in respect of the whole of the retention area, or together with an application for the renewal of
such mineral deposit retention licence or an application for a mining lease in respect of the
whole or any portion of the retention area, to the Licensing Authority in such form as may be
determined in writing by the Licensing Authority, a report in duplicate or, in the case where an
application is made for a mining lease in respect of a portion of the retention area, separate
reports in duplicate in respect of such portion and the remainder of such retention area, setting
out in relation to such period: -
i. an evaluation of the prospects of future mining operations in such retention area;
ii. all information, including photographs, tabulations, tapes and discs, in the record
referred to in paragraph (a) and the plans and maps referred to in paragraph (b); and
iii. such other particulars as the Licensing Authority may require in relation' to the
operation carried on by such holder; and
d. submit to the Licensing Authority such other reports, records and other information as the
authority may from time to time require in connection with the carrying on or investigations
and operations in the retention area in question.

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(2) In the event of the cancellation of a mineral deposit retention licence under rule 57 or the surrender or
expiry of a mineral deposit retention licence the person who was the holder of such licence immediately
before the cancellation, surrender or expiration shall, on a date not later than 180 days after the date of
the cancellation or surrender or expiry, deliver to the Licensing Authority: -
a. all records kept in terms of the provisions or sub-rule (1) (a); and
b. such other books, documents records and reports as the Licensing Authority may require by
notice in writing or copies of such records, books, documents and reports, unless a mining
licence is issued to such person in relation to the area to which such mineral deposits retention
licence relate with effect from the date following on the date of such cancellation, surrender or
expiry or such later date as the Licensing Authority may, on good cause shown, allow.
(3) Any person referred to in sub-rule (1) or (2) who contravenes or fails to comply with the provisions of
that sub-rule shall be guilty of an offence and be punishable with a penalty as prescribed by the
Government from time to time, in addition to the rectification of the default within the time given by
the Licensing Authority' failing which the mineral title may be with-drawn.

V -MINING LEASE
45. Rights of holder of mining lease. -
(1) Subject to these rules and the conditions of the lease, a mining lease shall confer on the holder of the
lease: -
a. the exclusive right to carryon mining operations in the mining area in question in respect of
any mineral or group of minerals to which the lease relates;
b. the right to enter and occupy the land which comprises the mining area for the purpose of
carrying on mining operations and exploration operations referred to in paragraphs (a) and (b);
c. the right to carry on in the mining area, in conjunction with mining operations such as are
referred in paragraph (a), exploration operations in relation to any such mineral or group of
minerals;
d. the right to remove from the mining area any mineral or group of minerals, from any place
where it was found or mined in the course of mining operations such as are referred in
paragraph (a) or found or incidentally won in the course of exploration operations referred in
paragraph (b), to any other place within or outside Punjab or, subject to such other permission
as may be required under any relevant law, to any place outside Pakistan;
e. the right to take and divert water on or flowing through such land and use it for any purpose
necessary for mining operations subject to, and in accordance with, the provisions of the
relevant law;
f. the right to sell or otherwise dispose of any such mineral or group of minerals subject to any
condition of the mining lease or mineral agreement relating to the satisfaction of the internal
requirement of Pakistan; and;
g. the right, subject to sub-rule(2), to do all other things and carry on such other operations,
including the erection or construction of ancillary works, as may be reasonably necessary for,
or in connection with, the mining or exploration operations, removal, selling or disposal
contemplated in paragraphs (a), (b), (c), or (e).
(2) The provision of rule 14(2) shall apply mutatis mutandis to the holder of a mining lease who wishes to
erect or construct ancillary works under sub-rule(1) as they apply in relation to the holder of a
reconnaissance licence wishing to do so under rule 14.
46. Duration of mining lease. -
(1) Subject to these rules, a mining lease shall be valid: -
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h. for such period, not exceeding thirty years or the period representing the life of the mine, (as
determined by the Licensing Authority whichever is lesser, as may be specified in the lease; and
i. subject to sub-rule (2), for such period as may be determined by the Licensing Authority in
relation to any renewal of the lease, as from the date on which the lease would have expired if
an application for its renewal had not been made or on the date on which the application for
renewal is granted, whichever is later.
(2) A mining lease may be renewed for a period not exceeding ten years, or for the period representing the
estimated life of the mine by the Licensing Authority, as determined on the basis of available data,
whichever is the lesser period as from the date of which the application for renewal is received by the
Licensing Authority
(3) Notwithstanding the provisions of sub-rule(1), but subject to the other provisions of these rules, where
an application is made for the renewal of a mining lease, the lease shall not expire during the period the
application is being considered unless the application is refused or withdrawn or lapses, whichever is
earlier, or if the application is granted, until such time as the lease is renewed in consequence of the
application
47. Application for mining lease. -
(1) 20[An application for the grant of a mining lease may be made by an individual, a partnership firm or a
body corporate formed by or under a law for the time being in force in Pakistan.

***(1) An application for the grant of a mining lease may be made only by a body corporate formed by or under a
law for the time being in force in Pakistan.***]

(2) An application for the grant of a mining lease shall: -

a. 21[in the case of an individual, give such information as is referred to in rule 16(1) a(i);
***a. give such information as is referred to in rule 16(1)(a)(ii);***
b. in the case of a company, give such information as is referred to in rule 16(1) a(ii);
***b. be accompanied by a description and plan such as is referred to in rule 16(1)(d);***
bb. in the case of partnership firm, give such information as is referred to in rule 16 (1) a(iii);]
c. be made in respect of an area of land not exceeding 250 square kilometers;
d. furnish particulars such as are referred to in rule 16(1)(f);
e. be accompanied by a technological report on mining and treatment possibilities and the
intention of the applicant in relation thereto;
f. be accompanied by the relevant feasibility studies, detailed plans for development and
operation of the mine and the programme of proposed mining operations, including a forecast
of: -
i. the date by which the applicant intends to work for profit;
ii. the capacity of production and scale of operations;
iii. the anticipated overall recovery of ore and mineral products; and
iv. the nature of the products;
g. be accompanied by an environmental impact assessment in terms of the Environmental
Protection Act 1997 and shall identify the extent of any adverse effect which the plan for
development and operation of the mine and the carrying out of the programme of proposed

20
Sub rule substituted vide notification No. SOT (M&MD)8-15/1990(Vol-V) dated 06.01.2023
21
Substituted vide notification No. SOT (M&MD)8-15/1990 (Vol-V) dated 06.01.2023
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mining operations would be likely to have on the environment and on any monument or relic
in the area over which the lease is required and proposals for eliminating or controlling that
effect;
h. present proposals for the prevention of pollution, the treatment and disposal of wastes, the
safeguarding, reclamation and rehabilitation of land disturbed by mining operations, the
protection of rivers and other sources of water and for monitoring and managing of any adverse
effect of mining operations on the environment;
i. identify any particular risks (whether to health or otherwise) involved in mining the mineral or
group of minerals which it is proposed to mine, and proposals for their control or elimination;
j. give or be accompanied by a statement giving a detailed forecast of capital investment,
operating costs and revenues and the anticipated type and source and extent of financing;
k. be accompanied by a statement giving particulars of expected infrastructure requirements;
l. state the period for which the lease is required; and
m. be accompanied by such other documents and information as the Licensing Authority may
require in relation to the application;
(3) An application for the grant of a mining lease may contain any other matter which in the opinion of the
applicant is relevant to the application
48. Exercise of power for grant or refuse application for mining lease. -
(1) Subject to these rules, where an application for the grant of a mining lease is made by the holder of an
exploration licence or a mineral deposit retention licence, and the application.
a. relates to an area of land in, or which constitutes, the exploration area or, as the case may be,
the retention area; and
b. is in respect of any mineral or group of minerals: -
i. to which such exploration licence relates;
ii. to which such mineral deposit retention licence relates,
the Licensing Authority shall grant the application.
(2) Subject to these rules, where an application is made for the grant of a mining lease by any person other
than a person such as is referred to in sub-rule (1), the Licensing Authority may grant or refuse the
application.
(3) The Licensing Authority shall not grant an application for a mining lease in relation to any area of land
in respect of any mineral or group of minerals if, at the time the application is made: -
a. any exploration licence conferring an exclusive right to carry on exploration operations in that
area of land in respect of that mineral or group of minerals;
b. any mining concession for small scale mining in relation to that area of land in respect of that
mineral or group of minerals; or
c. any mineral deposit retention licence in relation to that area of land and in respect of that
mineral or group of minerals,
is held by any person other than the applicant or the mining lease, unless: -

i. that other person agrees to the application being granted; and

ii. the Licensing Authority deems it desirable in the interest of the development of the
mineral resources to grant the application.
(4) The Licensing Authority shall not grant an application for a mining lease in relation to any area of land
in respect of any mineral or group of minerals if at the time the application is made, the period specified
in an invitation, given under rule 43(4) to a person, other than the applicant, to apply for such a mining
lease, has not expired.

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(5) Notwithstanding the provisions of sub-rule(1), but subject to the provisions of sub-rule(5), an
application for the grant of a mining lease shall not be granted: -
a. Unless:-
i. the feasibility study shows that the mine can be profitably developed and operated;
ii. the proposed plans for development and operation of the mine and the
programme of the mining operations of the applicant in question ensure the
efficient, beneficial and timely use of the mineral resources in question, and
iii. the applicant in question has the technical and financial ability and experience to
carry out effective mining operation; and
iv. the Director General, Mines & Minerals is satisfied in respect of environmental
effect of the project and any condition or limitation prescribed by the Pakistan
Environmental Protection Act, 1997 and rules and Regulations made there under;
b. the applicant in question is, at the time of the application, in default unless the Licensing
Authority is of the opinion that the default is not substantial and that special circumstances
exist which justify the grant of the application; or
c. in the case of an application made in relation to any area of land and in respect of any mineral
or group of minerals, to a person who does not hold an exploration licence or a mineral deposit
retention licence in relation to that area of land, or in respect of that mineral or group of
minerals, unless the Licensing Authority is of opinion that the mineral or group of minerals is
present in the area of land in potentially commercial quantities.
(6) The Licensing Authority shall not, in the case of an application for a mining lease by the holder of a
mineral title referred to in sub-rule (1), refuse to grant the application: -
a. in terms of sub-rule (5) (a), unless the Licensing Authority has, by notice in writing given to the
applicant, its intention to so refuse the application and has: -
i. informed the applicant of the reasons for its intention;
ii. afforded the applicant an opportunity to make, within such reasonable period as may
be specified in the notice, representations in relation to all matters relating to its
intention and, if the applicant so desires, to make proposals in relation to any such
matters; and
iii. taken into consideration any such representation; and
b. in terms of sub-rule (5) (b), unless the Licensing Authority has, by notice in writing given to
the applicant, its intention to so refuse the application: -
i. setting out particulars of the alleged default; and
ii. requiring the applicant to make representation to the Licensing Authority in relation
to the alleged default or to remedy the default on or before a date specified in the
notice,
and the applicant has failed to remedy the default or made such representation as in the opinion of the
authority is the ground for the intended refusal.
(7) The Licensing Authority shall not refuse an application for a mining lease on the ground that any
proposal in the application is inadequate or unsatisfactory unless the Licensing Authority has, by notice
in writing informed the applicant accordingly and afforded the applicant a reasonable opportunity to
modify the proposals concerned.
49. Issue of mining lease. -
Subject to sub-rule (2), the provisions of rules 47 and 48 shall apply mutatis mutandis in relation to an
application for the renewal of a mining lease as they apply in relation to an application for the grant of a
mining lease.

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50. Application for renewal of mining lease. -

(1) Subject to sub-rule (2), the provisions of rules 47 and 48 shall apply mutatis mutandis in relation to an
application for the renewal of a mining lease as they apply in relation to an application for the grant of
a mining lease.
(2) An application for the renewal of mining lease shall be made not later than six months before the date
on which the lease expires, if not renewed or such later date but not later than such expiry date, as the
Licensing Authority may, on good cause shown, allow.
(3) Subject to sub-rule (4), upon an application duly made for the renewal of a mining lease, the lease may
be renewed as provided in rule 46 (2) with or without a variation of the conditions of the lease.
(4) The Licensing Authority shall not grant an application for the renewal of a mining lease if minerals in
workable quantities have been mined.
51. Application for amendment of mining lease. -
(1) Subject to sub-rule (2), the holder of a mining lease may apply for the amendment of the lease: -
a. by the extension or reduction, or both, of the mining area to which the lease relates; or
b. (b) by the addition of any mineral or group of minerals, discovered in the mining area, to which
the lease does not relate.
(2) The provisions of rules 47 and 48 shall apply mutatis mutandis in relation to an application under sub-
rule (1) as they apply in relation to an application for the grant of a mining lease.
(3) If an application under sub-rule (1) is granted by the Licensing Authority, it shall amend the mining
lease accordingly.
52. Obligations of holder of mining lease. -
(1) Subject to sub-rule (2), the provisions of rule 29 (1) shall apply mutatis mutandis in relation to a mining
lease as they apply in relation to an exploration licence, and for that purpose, the reference to the holder
of an exploration licence shall be deemed to be a reference to the holder of a mining lease.
(2) It shall be a condition of the mining lease that the holder shall commence mining operations within six
months of the grant of the lease and shall carry on those operations in accordance with the approved
plan for development and operation of the mine.
53. Notice of cessation of mining operations. -
The holder of the mining lease shall: -
a. where he intends to temporarily cease mining operations, or to reduce the normal rate of
production, give notice in writing of that intention to the Licensing Authority on a date not
later than: -
i. in the case of such intended cessation of mining operations, thirty days; or
ii. in the case of such intended reduction of production, seven days,
or such other period as the Licensing Authority may, on good cause shown, allow before such intended
cessation or intended reduction;
b. if, for any reason beyond his control at any time, temporarily ceases mining operations, or
reduces the normal rate of production, notify the Licensing Authority of such temporary
cessation or reduction as soon as possible after such cessation or reduction, and provide
reasons for such intention of cessation or reduction, as the case may be, and such particulars
as the Licensing Authority may require in connection with the location, nature and extent of
such mining operations
54. Action by Licensing Authority. -

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On receipt of a notice referred to in rule 53, or if the Licensing Authority has otherwise reason to believe
that the holder of any mining lease has ceased, whether permanently or temporarily, or reduced mining
operations, the Licensing Authority may cause the matter to be investigated and: -
a. give its approval on such conditions, as the Licensing Authority may determine, to the cessation
or reduction; or
b. refuse its approval and give such directions to the holder as the authority deems appropriate
55. Unit development. -
(1) This rule applies where the Licensing Authority determines: -
a. in the interest of the effective recovery of minerals from neighbouring or contiguous mining
areas; or
b. in the national interest in order to secure the rational development and ultimate recovery of
any mineral from neighbouring or contiguous mining areas;
that it is desirable that the holders of the mining leases in respect of those areas should co-ordinate their
operations or develop their deposits as a unit.

(2) Subject to sub-rule (3), the Licensing Authority may, in writing, direct the holders of the mining leases
to enter into an agreement, within the period specified in the direction, for or in relation to the co-
ordination of their operations or the development of their deposits, giving in the notice the grounds for
the direction, and to lodge the agreement with the Licensing Authority forthwith for approval.
(3) Before giving any direction under sub-rule (2) the Licensing Authority shall afford each holder of a
mining lease a reasonable opportunity to make representation to the Licensing Authority in writing with
regard to the proposed direction.
(4) Where: -
a. an agreement is not lodged as required by sub-rule (2), or
b. an agreement so lodged is not satisfactory to the Licensing Authority.
the Licensing Authority may cause to be prepared, in accordance with good mining practices, a plan and
afford each holder of the mining leases a reasonable opportunity to make representations to the Licensing
Authority in writing with regard to the plan.
(5) The holder of each mining lease shall perform and observe the conditions of: -
a. a plan which is satisfactory to the Licensing Authority, or
b. a plan, with or without modifications as a result of any representation made pursuant to sub-
rule (4).
56. Records, etc. to be kept, etc. by the holder of mining lease. -
(1) The holder of a mining lease shall: -
a. keep at an address in Punjab a proper record in such form as may be determined in writing by
the Licensing Authority in relation to: -
i. any mining operations referred to in rule 45 (1) (a): -
(aa) the nature, appraisal and results of all mining operations carried on in, or in
connection with, the mining area to which such mining lease relates;

(bb) the nature and mass or volume of any mineral or group of minerals won or
mined in such mining area and treated or stock piled in such mining area or elsewhere;

(cc) the nature, mass or volume and value of any mineral or group of
minerals so won or mined, sold or otherwise disposed of and the full names and
addresses of any person to whom such mineral or group of minerals was sold or
otherwise disposed of;
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(dd) the nature and mass or volume of any waste removed from such mining area and
the manner in which it was disposed of;
(ee) the persons employed by the holder for purposes of such mining operations,
including the names, addresses, nationalities and ages of such persons;

(ff) the expenditures incurred by the holder in the course of such mining
operations; and
(gg) such other information as may be determined by the Licensing Authority and
specified by notice in writing, addressed and delivered to such holder;
ii. any exploration operation referred to in rule 45(1) (b): -
(aa) the nature, location and results or all photo geological studies, imaging,
geological mapping, 22[geo-chemical] sampling, geophysical surveying, drilling, pining
and trenching, sampling and bulk sampling, and all other activities undertaken by such
holder in the course of such exploration operations;
bb) the results or all analytical, metallurgical and mineralogical work incidental to
such exploration operations;
(cc) the interpretation and assessment of the studies, surveys and works referred to in
(aa) and (bb);
(dd) the nature and mass or volume of any mineral or group of minerals found or
incidentally won in the course of such exploration operations;
(ee) the persons employed by the holder for purposes or such exploration operations
including the names, addresses, nationalities and ages of such persons;
(ff) the expenditures incurred by such holder in the course of such exploration
operations; and
(gg) such other information as may be determined by the Licensing Authority and
specified by notice in writing given to the holder;
b. prepare or cause to be prepared and maintained at all times plans and maps in respect of the
mining area;
(bb)prepare in respect of each quarter of the mining lease, a statement of income and
expenditure derived or incurred in connection with the mining operations in the mining lease
area and such other financial statements as the Licensing Authority may require in such form
as the authority may determine;
c. submit within 15 days after the end of each month and 30 days after the end of each quarter to
the Licensing Authority, returns in relation to such month or quarter containing: -
i. summary of the particulars and information contained in the records referred to in
paragraph (a) and (bb) as may be required by the Licensing Authority and indicated
in such form or required by the Licensing Authority by notice in writing given to the
holder; and

22
The word “agrochemical” substituted by word “geo-chemical” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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ii. such other particulars as the Licensing Authority may require in relation to the
mining operations and exploration operations carried on by the holder in such
mining area;
d. submit within 60 days after 31st December of each year, to the Licensing Authority, in such
form as may be determined in writing by the Licensing Authority, returns or reports in duplicate
containing in relation to such year: -
i. a summary of the particulars and information contained in the records referred to in
paragraph (a) (1) as may be required by the Licensing Authority and indicated in such
form or required by the Licensing Authority by notice in writing given to the holder;
ii. all information, including photographs, tabulations, tapes and discs, in the records
referred to in paragraph (a) (ii) and the plans and maps referred to in paragraph (b);
iii. the statement of income and expenditure and financial statements referred to in
paragraph (bb);
iv. an estimate of the remaining mineral reserves in such mining area properly instated
by way of plans and maps according to an appropriate scale;
v. particulars of any proposed mining operation and exploration operation during the
succeeding year, together with a forecast of delineated mineral reserves; and
vi. such other reports, records and information as the Licensing Authority may require
in relation to the mining operations and exploration operations carried on by the
holder in such mining area;
(2) In the event of the cancellation or surrender of a mining lease under rule 57 or the expiration of mining
lease, the person who was the holder of such a lease immediately before such cancellation or surrender
or expiration shall, on a date not later than 180 days after the date of such cancellation or surrender or
expiration, deliver to the Licensing Authority: -
a. all records kept in terms of the provisions of sub-rule(1) (a);
b. all maps and plans referred to in sub-rule (1) (b);
c. all reports, photographs, tabulations, tapes and discs prepared by or on behalf of such person
in the course of such exploration operations; and
d. such other books, documents, records and reports as the Licensing Authority may require by
notice in writing given to such person, or copies of such records, maps, plans, reports,
photographs, tabulations, tapes, discs, books and documents.
(3) Any person referred to in sub-rules (1) or (2) who contravenes or fails to comply with the provisions
of any such sub-rule shall be guilty of an offence and be punishable with a penalty as prescribed by the
Government from time to time, in addition to the rectification of the default within the time given by
the Licensing Authority failing which the mineral title may be with-drawn.

VI - CANCELLATION AND SURRENDER OF MINERAL TITLES

57. Cancellation of mineral titles. -
(1) Subject to this rule and to rule 65, where the holder of a mineral title: -
a. fails to use in good faith the land subject to the title for the purpose for which the title was
granted;
b. uses that land for any purpose other than the purpose for which the title was granted;
c. fails to comply with any requirement of these rules with which the holder is bound to comply;
d. fails to comply with a condition of the title;
e. fails to comply with a direction lawfully given under these rules or with a condition on which
any certificate of surrender is issued or on which any exemption or consent is given under these
rules; or

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f. fails to pay any amount payable by him under these rules within one month after the amount
becomes due,
the Licensing Authority may, on that ground, by notice in writing, cancel the title.
(2) The Licensing Authority shall not, under sub-rule (1), cancel a title on a ground referred to in that sub-
rule unless: -
a. it has, by notice in writing served on the holder of the title, given not less than thirty days notice
of its intention to so cancel the title on that ground;
b. it has, in the notice, specified a date before which holder of the title may, in writing, submit any
matter which he wishes the Licensing Authority to consider; and
c. the Licensing Authority has taken into account: -
i. any action taken by the holder of the title to remove that ground or to prevent the
recurrence of similar grounds; and
ii. any matter submitted to the Licensing Authority by the holder of the title pursuant
to paragraph (b).
(3) The Licensing Authority shall not, under sub-rule (1), cancel a title on the ground referred to in
paragraph (f), if, before the date specified in the notice referred to in sub-rule (2), the holder of the title
pays the amount of money concerned together with any penalty arising pursuant to rule 68 (2).
(4) The Licensing Authority may, by notice in writing served on the holder of a mineral deposit retention
licence, cancel the licence if the holder fails to make application for a mining lease in accordance with a
notice given to him under rule 43 (1).
(5) The Licensing Authority may, by notice in writing cancel the title: -
a. if the holder (being an individual) is: -
i. adjudged bankrupt; or
ii. enters into any agreement or scheme of composition with creditors or takes
advantage of any law for the benefit of debtors;
b. if in the case of a holder that is a company, an order is made or a resolution is passed for
winding up the affairs of the company, unless the winding up is for the purpose of
amalgamation or reconstruction and the Licensing Authority has been given notice thereof; or
c. (c) if the mineral title was obtained by fraud or misrepresentation.
(6) Where an application has been made under rule 61 for the transmission of a mineral title or of rights or
interests to or in a mineral title consequent on the death of an individual who is the holder of the title,
the Licensing Authority shall not cancel the title unless the authority has refused to grant the application.
(7) Where two or more persons are holding a mineral title the Licensing Authority shall not, under sub-
rule (5), cancel the title on the occurrence, of an event entitling the Licensing Authority to so cancel the
mineral title, unless the authority is satisfied that any other person or persons holding the mineral title
are unwilling, or would be unable, to carry out the duties and obligations of the holder of the mineral
title.
(8) On the cancellation of a mineral title the rights of the holder of the title there under shall cease, and the
cancellation shall not affect any liability incurred before the cancellation and any legal proceeding that
might have commenced against the former holder of the title may or continue against him.
58. Surrender of mineral titles. -
(1) The holder of a mineral title who wishes to surrender all or a part of the land subject to the mineral title
shall apply to the Licensing Authority for a certificate of surrender, in respect of the land, not less than
three months before the date on which he wishes the surrender to have effect.
(2) An application under sub-rules (1) shall: -
a. state the date on which the applicant wishes the surrender to have effect;

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b. (b) if part only of the land subject to the title is to be surrendered, identify the land to be
surrendered by a description and the inclusion of a map identifying that part.
c. (c) give particulars of reconnaissance, or mining operations, as the case may be, carried on in
respect of the land to be surrendered, and
d. (d) be supported by such records and reports in relation to operations as the Licensing
Authority may reasonably require
(3) Subject to sub-rule (4), on application made under sub-rule (1) the Licensing Authority shall issue a
certificate of surrender, either unconditionally or subject to such conditions as are specified in the
certificate, in respect of the land to which the application relates.
(4) The Licensing Authority shall not issue a certificate of surrender: -
a. to an applicant who is in default;
b. to an applicant who fails to comply with any reasonable requirement of the Licensing Authority
for the purposes of sub-rule (2) (d), or
c. if the authority is not satisfied that the applicant win leave land to be surrendered and on which
reconnaissance, exploration or mining operations have been carried on in a condition which is
safe and which accords with good reconnaissance, exploration or mining practices.
59. Effect of certificate of surrender. -
(1) Where, pursuant to rule 59 (3), a certificate of surrender is issued, the Licensing Authority shall: -
a. if part only of the land subject to a mineral title is surrendered, cause the title to be amended
accordingly; and
b. in any other case, cause the mining title to be cancelled, and, in either case, the Authority, shall
give notice in writing to the applicant for the certificate of surrender of the amendment, or as
the case may be, the cancellation, and of the issue of the certificate of surrender.
(2) Land in respect of which a certificate of surrender is issued shall be treated as having been surrendered
with effect from the date on which notice of the surrender is given.
(3) The surrender of any land shall not affect any liability incurred before the date on which the surrender
has effect in respect of the land, and legal proceedings that might have commenced against the holder
or, may continue against him.

VII - REGISTRATION AND TRANSFER OF MINERAL TITLES

60. Titles Register. -
(1) The Licensing Authority shall cause a record to be made in a Titles Register, kept for the purpose, of
every mineral title issued and of any dealings with or affecting, a mineral title.
(2) When a mineral title is issued the Licensing Authority shall cause the name of the person to whom the
mineral title is issued to be recorded in the Titles Register as the holder of the mineral title.
61. Approval of transfer, etc. of mineral title. -
(1) Unless: -
a. the Licensing Authority approves a transfer of, or a cession or assignment of rights of interest
to or in, a mineral title, or the joining of a person as a joint holder of a mineral title or of rights
or interests to or in a mineral title, and
b. the transfer, cession or assignment is to a person, or the person joined is a person, capable
under these rules of holding the mineral title,
the purported transfer, cession, assignment or joining shall have no effect

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(2) Where an application is made to the Licensing Authority for any approval such as is referred to in sub-
rule (1) (a) the Licensing Authority may, subject to sub-rules (3) and (4), give its approval, subject to
such conditions as it deems necessary in the circumstances to impose but the Licensing Authority shall
not unreasonably withhold its consent.
(3) The Licensing Authority shall not give its approval to any of the dealings such as are referred to in sub-
rule (1) with a reconnaissance licence, or, subject to sub-rules (4), to any dealing with an exploration
licence during the first two years of its term unless the authority considers that there are special reasons
for giving such approval.
(4) An application under this rule shall give in respect of the person to whom the licence is to be transferred,
ceded or assigned or who is to be joined, the information required in rule 16 (1) (a) in respect of an
applicant and all other relevant information.
(5) The Licensing Authority may require any person making an application for any approval such as is
referred to in sub-rule (1) to furnish to it such information as it may reasonably require to enable it to
dispose of the application and the applicant shall comply with the requirement.
62. Inspection of Titles Register. -
(1) On application made, a copy of any entry in the Titles Register may be obtained on payment of the
appropriate fee as notified by the Government.
(2) On application made, the Titles Register shall be open for inspection by the applicant and the applicant
may take copies of any licence or entry in the Register.
63. Titles Register may be rectified. -
Where the Licensing Authority is satisfied that a mistake has been made in, or that some matter has been
incorrectly entered in, or omitted from, the Titles Register, it shall rectify the Register by recording reasons
thereof.
64. Offences in relation to Registration in Titles Register. -
(1) A person who willfully: -
a. makes, or causes to be made or concurs in making, a false entry in the Titles Register, or
b. (b) produces or tenders in evidence a document falsely purporting to be a copy of an extract
from an entry in the Titles Register,
shall be guilty of an offence and be punishable with a penalty as prescribed by the Government from time
to time, in addition to the rectification of the default within the time given by the Licensing Authority
failing which the mineral title may be with-drawn.

VIII- FINANCIAL
65. Royalties payable on minerals. -
(1) Subject to these rules, the holder of: -
a. a mining lease who has won or mined any mineral or group of minerals in the course of any
exploration or mining operations carried on by the holder; or
b. (b) an exploration licence or a mineral deposit retention licence, who has found or incidentally
won any mineral or group of minerals in the course of any exploration operations carried on
by the holder,
shall be liable to pay to the Government, in respect of any such mineral or group of minerals disposed of
by the holder, royalty determined in accordance with these rules.

(2) For the purposes of these rules any mineral or group of minerals shall be disposed of if it is: -
a. sold, donated or bartered;

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b. appropriated to treatment or other processing without having been dealt with as provided in
paragraph (a) prior to appropriation; or
c. exported from Punjab without having been dealt with as provided in paragraph (a) or (b) prior
to export.
66. Rate of Royalties. -
(1) Subject to these rules, royalty shall be charged, in respect of any mineral referred to in sub-rule (1 ) (a)
or (b) of rule 65 which is disposed of, on the following basis: -
a. in the case of coal, and the construction and industrial minerals group as specified in Schedule
3, at such rates as may be notified by the Government from time to time;
b. in case of the precious stones group as so specified, ten percent;
c. in the case of the precious metals group and semi-precious stones group as so specified, three
percent;
d. in the case of base metals group as so specified, two percent;
e. in the case of the rare metals as so specified, ten percent; and
f. in the case of any other mineral, one percent,
g. on the fair market value of the mineral or group of minerals as provided in this rule.
(2) For the purposes of sub-rule (1), the fair market value of a mineral or group of minerals is: -
a. where the mineral or group of minerals is disposed of in a sale at arm’s length, the sale price;
b. where the mineral or group of minerals is not so disposed of, the value established, in relation
to the kind of disposal concerned, by reference to criteria for the determination of that value,
in the mineral agreement or mineral title or under which or pursuant to which the mineral or
group of minerals was won or mined; or
c. where the mineral or group of minerals is not disposed of as provided in paragraph (a) and
there are no such criteria as provided in paragraph (b) the amount, determined by the Licensing
Authority, at the date of the disposal, which would in the opinion of the Licensing Authority,
be paid on international markets or, as the case may be, domestic markets for such mineral or
group of minerals in a sale at arm's length by a willing seller to a willing buyer.
(3) For the purposes of sub-rule (2), a sale is a sale at arm's length if, the following conditions are satisfied
with respect to the contract of sale, that is to say: -
a. the contract price is the sole consideration for the sale;
b. the terms of the sale are not affected by any commercial relationship other than that created by
the contract of sale between the seller or any other person associated with the seller and the
buyer or any person associated with the buyer; and
c. neither the seller nor any person associated with the holder of the mineral title has, directly or
indirectly, any interest in the subsequent resale or disposal of the mineral or group of minerals
or any product derived there from.
(4) For the purposes of this rule, the fair market value, in respect of any mineral or group of minerals which
has been disposed of, shall be determined by reference to the first point at which it was disposed of,
without allowing for any deductions from the gross amount so determined.
67. Enhanced royalty. -
Where pursuant to rule 7, a mineral agreement makes provision for the payment of royalty, by the holder
of mineral title, at an enhanced rate or rates in respect of any mineral or group of minerals won, mined or
found as provided in rule 65, the enhanced rate of royalty shall be determined and payable in accordance
with the terms of the agreement provided that the rate of royalty payable at any time shall not be less than
the rate notified pursuant to rule 66.

68. Payment of royalty. -

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(1) Royalty in respect of any mineral or group of minerals won, mined or found as provided in rule 65 and
disposed of shall be payable not later than 30 days after the end of calendar month in which the mineral
or group of minerals is disposed of.
(2) Where any person has failed to pay an amount of royalty as required by sub-rule (1). mark up calculated
at the rate of one per centum per day on the amount or any part thereof from time to time remaining
unpaid, shall be payable from the due date of payment until all outstanding amount is paid.
(3) The holder of a mineral title shall submit, in respect of each month and in such form and detail as the
Licensing Authority may determine, a return showing the amount of royalty to be paid in respect of any
mineral or group of minerals disposed of in the month.

69. Deferment of royalty. -

(1) Subject to sub-rule (2), the Government, on the advice of the Department and with the concurrence of
the Finance Department, on application made in writing by the holder of a mining lease, may, by notice
in writing to the holder defer payment of such royalty or mark up for such period and on such
conditions as may be determined by the Government and specified in the notice, or may refuse to so
defer the royalty or mark-up payable.
(2) The Government shall defer the royalty or mark-up payable in accordance with sub-rule (1) only when
the holder of the mining lease has demonstrated to the satisfaction of the Department and the Finance
Department that in the absence of the deferral, the mining operations, for economic reasons, otherwise
permanently cease or be suspended for an indefinite period.
70. Powers of government in case of failure to pay royalty. -
If the holder or mineral title referred to in rule 6 fails to pay any royalty payable by him in accordance with
rule 68 or, if applicable, on or before such date to which the payment of the royalty has been deferred under
rule 69, the Government may, by notice in writing given to the holder, prohibit: -

a. the removal of any mineral or group of minerals from the exploration area, mining area,
retention area, the land subject to the mining lease or, in the case of the holder of prospecting
licence, from the place where the mineral or group of minerals is found, won or mined;
b. (b) any dealing in connection with any mineral or group of minerals found, won or mined
from any such area, land or place,
until such time as the royally has been paid, or the payment has been deferred under rule 69.
71. Contravention of rule 70. -
Any person who contravenes or fails to comply with a notice given to the person under rule 70 shall be
guilty of an offence and be punishable with a penalty as prescribed by the Government besides,
rectification or default.
72. Proof of amounts payable under these rules. -
In any proceedings to recover in a competent court any amount payable under these rules, a certificate
purporting to be a certificate under the hand of the 23[Licensing Authority] certifying that the amount of
money specified in such certificate is payable under these rules by any holder such as is referred to in rule

23
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

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~ 40 ~

65 named in such certificate shall be received in evidence as prima facie proof of the facts stated in the
certificate.
73. Rentals and renewals. -
(1) Annual rent in respect of a mineral title shall be paid in respect of the category of mineral title in
accordance with Schedule 2 and sub- rule (2).
(2) Payment of the annual rental pursuant to sub-rule (1) in respect of a mineral title shall be made within
thirty days after the date of the issue of the mineral title and thereafter shall be made on he same date
of each year.
(3) Where any person has failed to pay any amount of annual rental mark-up calculated at the rate of one
per centum per day on the amount or any part thereof, from time to time remaining unpaid, shall be
payable from the due date of payment until all outstanding amount is paid.
(4) A renewal fee in respect of the mineral title shall be paid in accordance with column 3 of Schedule I.
24[73-A. Surface rent. -
(1) A licensee or lessee shall pay, for all Government land which he may use or occupy superficially for the
purposes of the operations conducted under the licence or the lease, a surface rent and water-rates
assessable under the revenue or any other law or rules in the district in which the land is situated:
Provided that if no such rent is assessable under the existing law, the rent and the water rate may be
fixed by the Licensing Authority.

(2) If the land belongs to a private person, a lessee or a licensee shall pay surface rent to the owner of the
area for the land actually used or occupied superficially at such rate and in such manner as may be
mutually agreed upon between the lessee and the land owner and in case of disagreement between them,
at such rate and in such manner as may be determined by the Licensing Authority by taking into account
produce unit of the area:
Provided that before proceeding under this rule, the Licensing Authority shall give the parties
reasonable opportunity of being heard.
(3) If no such rent is available under the laws of the district in which the land is situated, the rent may be
fixed by the Licensing Authority subject to a minimum of Rs.200/- per acre.]

IX - MISCELLANEOUS PROVISIONS
74. Force majeure. -
(1) to the holder, have exercised the rights concerned during Any failure on the part of the holder of a
mineral title to fulfill any of the conditions of the licence, or meet any requirement of these rules, shall
not be treated as a breach of the holder's mineral title in so far as the failure arises from an act of war,
hostility, insurrection, or an act of God, or from any other cause specified in the conditions of the
mineral title as constituting force majeure.
(2) Where the holder of a mineral title fails to fulfill any of the conditions of the mineral title as a result of
the occurrence of any circumstance of a kind referred to in or specified in sub-rule (1) the holder shall
forthwith give notice to the Licensing Authority, giving particulars of the failure and its cause.
(3) The Licensing Authority may, on application made to it by the holder of a mineral title referred to in
sub rule (2) who has been prevented from exercising any right under the mineral title for any period in

24
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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~ 41 ~

the circumstances contemplated in sub rule (1), extend by notice in writing, on such conditions as may
be determined by the Licensing Authority, the period for which the mineral title in question has been
issued, by such reasonable period as may be determined by the Authority.
(4) The Licensing Authority may refuse any application referred to in sub-rule (3) if the holder of the
mineral title could, by taking reasonable steps which were available that period.
(5) The provisions of this rule shall not be construed as absolving any holder of a mineral title from
complying with any obligation under the mineral title or these rules to pay royalties, annual charges, rent
or fees.
75. Joint liability. -
Where a mineral title is held by more than one holder, the liability of any holder in respect of any breach
thereof, shall be joint and several, but without prejudice to any right of contribution which a particular
holder may have against any other holder in respect of any liability incurred by the particular holder in
respect of the breach.
76. Competitive bids. -
The Licensing Authority may, when required by the 25[Secretary] to do so, invite competitive bids for the
issue of an exploration licence or a mining lease in respect of any area of land which is not subject to:
a. a reconnaissance licence which gives the holder an exclusive right such as is referred to in rule
14 (3).
b. an exploration licence, a mining lease or a mineral deposit retention licence or a prospecting
licence or a mining lease under small scale mining, or
c. an application for any such licence or lease, and may, in accordance with these rules, issue the
appropriate mineral title to the successful bidder.
77. Performance guarantees. -
(1) A person shall, at the time of the grant of a mineral title, other than a reconnaissance licence, lodge with
the Licensing Authority security for compliance with the holder's obligations under these rules and the
title.
(2) A security under sub-rule (1) shall be by way of bank guarantee, parent company guarantee or otherwise
as approved by the Licensing Authority.
78. Arbitration. -
(1) Subject to 26[sub-rule (2)], any dispute arising between the holder of a mineral title and Licensing
Authority or the 27[Secretary] out of or in connection with a mineral title shall, if it cannot be settled
amicably within a reasonable period, be submitted to the Mineral Investment Facilitation Board or such
other body or tribunal as the parties may agree, for arbitration or settlement.
28[***(2) Sub-rule (1) shall not apply where the holder of a mineral title is a citizen of Pakistan, or a company

formed by or under a law for the time being in force in Pakistan whose entire share capital is beneficially owned by
citizens of Pakistan.***

25
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
26
The word, bracket and figures “sub-rules (2) and (3)” substituted by word “sub rule (2)” vide Notification No. V(I&MD)3-21/95 Vol-III
dated 30.04.2003
27
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
28
Sub rule (2) omitted, and sub rule (3) re-numbered sub rule (2) vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

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~ 42 ~

(2) Sub-rule (1) shall not apply in relation to a dispute concerning any matter: -
a. where any such dispute is, under the mineral title or a relevant mineral agreement, to be
resolved by a sole expert; or
b. if the dispute concerns the alleged commission by the holder of the mineral title of a criminal
offence.]
79. Rights over data. -
(1) The 29[Licensing Authority] shall have the exclusive right to all data including geological, geophysical,
geochemical, petrochemical, engineering, pit logs, maps, magnetic tapes, cores and production data, as
well as all interpretative and derivative data including reports, studies, analyses, interpretations, bulk
sampling results, assaying results, evaluations and other information in respect of exploration or mining
operations, subject to sub-rule (2).
(2) The holder of a mineral title shall have the right to make use of the data referred to in sub rule (1) free
of cost, for the purpose of exploration or mining operations and to retain copies or samples of material
or information constituting the data subject to sub-rule (3).
(3) Data permitted to be used or retained as provided in sub-rule (2), which is not in the Public domain,
shall not be disclosed to any person without the prior consent of the Licensing Authority, except as
may be necessary for the purpose of, or in connection with, exploration and mining operations, or as
required by law, or for the purpose of arbitration or litigation.
80. Compliance with other laws. -
(1) Nothing in these rules shall be construed as authorising the holder of a mineral title or a prospecting
licence to do anything: -
a. which the holder is prohibited from doing under any law for the time being in force; or
b. otherwise than in accordance with any such law regulating the doing of that thing, and for that
purpose obtaining any prospecting licence, mineral title, approval, permission or other
document required under any such law.
81. Retention of fees. -
Where any application under these rules is refused, the application fee, which was paid at the time of the
application, shall be retained to defer administrative costs.
82. Notice of applications made and titles issued, etc. -
(1) The Licensing Authority shall give notice of any application for a mineral title received by it by posting
a notice, not later than seven days after the date of which the application was received in which: -
a. it is made known for general information that the application has been made; and
b. is stated: -
i. the name of the applicant;
ii. (ii) the nature of the title and the area of land and the mineral or group of minerals to
which the application relates;
iii. the date on which the application was received; and
iv. such other particulars as the Licensing Authority may determine,
and shall keep the notice so posted until such date as the application has been finally disposed of.

29
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 43 ~

(2) Where a mineral title is issued, the Licensing Authority shall cause notice of that fact to be published in
the Official Gazette stating in the notice: -
a. the name of the holder of the title,
b. the nature of the title and the area of land and the mineral or group of minerals to which the
title relates; and
c. such other particulars as the Licensing Authority may determine.
(3) Where a mineral title is renewed, transferred, surrendered or cancelled, or any land subject to a title or
prospecting licence is surrendered, the Licensing Authority shall cause notice of that fact to be published
in the Official Gazette stating in the notice such particulars as the Licensing Authority deems necessary
to identify the title and, where applicable, the land surrendered.
83. Order in which applications to be considered. -
(1) All applications made under these rules and received by the Licensing Authority shall be considered by
the Licensing Authority in the order in which they are received.
(2) For the purposes of sub-rule (1), applications so received on the same date shall be deemed to have
been received simultaneously and priority shall be determined by the Licensing Authority by drawing
lots in presence of the parties.
84. Removal and sale of property, etc. -
(1) Where a mineral title has been cancelled or surrendered, or has expired, or if any area of land has ceased
for any reason to be part of the area of land subject to the title, the Licensing Authority may, by notice
in writing given to the person who is or was holder of the title, direct him to do all or any of the
following, namely: -
a. to demolish any building, structure or other things erected or constructed by the person in that
area and to remove all debris and any other object brought into that area, except in so far as
any owner of land in that area retains any such buildings, structures or other things on such
conditions as may be mutually agreed upon between such occupier and person;
b. to take all steps as may be necessary to remedy to the satisfaction of the Licensing Authority
any damage caused by any exploration or mining operations carried on by such person to the
surface of, and the environment in, that area of land; or
c. to take such other steps as may be specified in the notice as the Licensing Authority deems
necessary or expedient to give effect to any direction such as is referred to in paragraph (a).
(2) Where a direction under sub- rule (1) has not been complied with, the Licensing Authority may: -
a. do or cause to be done all or any of the things required by the direction to be done;
b. remove or cause to be removed, in such manner as it thinks fit, all or any of the property from
the area that was, but is no longer, subject to the title;
c. dispose of, in such manner as it thinks fit, all or any of the property referred to in paragraph
(b); and
d. if it has served a copy of the notice by which the direction was given on a person whom the
Licensing Authority believed to be an owner of the property or part of the property, sell or
cause to be sold by public auction, or otherwise as the authority thinks fit, all or any of the
property referred to in paragraph (b) that belongs, or that it believes to belong, to that person.
(3) The [Licensing Authority] may deduct from the proceeds of a sale of property under sub- rule (2)
30

that belongs, or that the Licensing Authority believes to belong, to a particular person:

30
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 44 ~

a. all or any part of any costs and expenses incurred by the Licensing Authority under that sub-
rule in relation to that property;
b. all or any part of costs and expenses incurred by the Licensing Authority under that sub ¬rule
in relation to the doing of anything required by a direction under sub-rule (1) to be done by the
person;
c. all or any part of any fees or amounts due and payable under these rules by the person.
(4) The costs and expenses incurred by the Licensing Authority under this rule: -
a. if incurred in relation to the removal, disposal or sale of property, are a debt due by the owner
of the property to the Government; and
b. if incurred in relation to the doing of anything required by a direction under sub- rule (1) to be
done by a person who is or was a holder of a mineral title are a debt due by that person to the
Government,
and to the extent to which they are not recovered under sub-rule (3) are recoverable in a court of competent
jurisdiction as a debt due to the Government.
(5) Any person referred to in sub-rule (1) who contravenes or fails to comply with a direction given to him
under that sub-rule is guilty of an offence shall be punishable with a penalty as prescribed by the
Government from time to time, in addition to the rectification of the default within the time given by
the Licensing Authority failing which the mineral title may be with-drawn.
85. Weighing of minerals. -
The holder of an exploration licence, a mineral deposit retention licence, a mining lease shall provide in the
exploration area, retention area, a properly constructed and correct weighing machine or other suitable
means for determining the weight of any mineral or group of minerals won or mined in the exercise of the
rights such as are referred to in rules 21, 32 or 45.
86. Power of Licensing Authority to obtain information. -
(1) Where the Licensing Authority has reason to believe that a person is capable of furnishing information
or data relating to reconnaissance, exploration or mining operations, or to minerals won, mined, found
or sold or otherwise disposed of, or the value thereof, it may, by notice in writing served on that person,
require that person: -
a. to furnish the Licensing Authority in writing with that information or data, giving particulars,
within the period and in the manner specified in the notice;
b. to attend before a person identified in the notice at such time and place as is specified and there
to answer questions relating to those operations, to minerals won, mined, sold or otherwise
disposed of, or to that information or data; or
c. to furnish a person identified in the notice, at such time and place as is specified, with such data
as may be in his custody or power relating to those operations, or to minerals won, mined or
sold or otherwise disposed of, or the value thereof.
(2) A person shall not be excused from furnishing information or data, or answering a question when
required to do so under this rule, on the ground that the information or data so furnished, or the answer
to the question, might tend to incriminate him or make him liable to a penalty, but the information or
data so furnished or his answer to the question shall not be admissible in evidence against him in any
proceedings other than proceeding for an offence against this rule.
(3) Where data are furnished, pursuant to a requirement under sub-rule (1) (c), the person to whom the
data are furnished may make copies of or take extracts from the data.
(4) Any person who: -
a. refuses or fails to comply with the requirement in a notice under sub-rule (1) to the extent to
which he is capable of doing so;

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 45 ~

b. in purported compliance with a requirement referred to in sub-rule (1) (a), knowingly or

recklessly furnishes information that is false or misleading in a material particular; or
c. when attending before any person under a requirement referred to in sub-rule (1) (b) or
furnishing any data to any person under a requirement referred to in sub- rule (1) (c), knowingly
or recklessly makes a statement that is, or furnishes any data that are, false or misleading in a
material particular.
shall be guilty of an offence and be punishable with a penalty as prescribed by the Government from time
to time, in addition to rectification of the default within the time given by the Licensing Authority failing
which the mineral title may be withdrawn.

(5) In this section, "data" includes books, documents, interpretations, tapes, diagrams, profiles and charts,
photographs, lines or negatives and includes data recorded or stored by means of and tape recorder,
computer or other device and any material subsequently derived from data so recorded.
87. Liability for pollution. -
(1) Where in the course of reconnaissance, exploration or mining operations carried on under a mineral
title, any mineral is spilled on land, or in any water on or under the surface of any land, or any land or
any such water is otherwise polluted or damaged, or any plant or animal life, whether in water or on, in
or under land, is endangered or destroyed, or any damage or loss is caused to any person, including the
Government, by such spilling, pollution or damage, the holder of the mineral title or prospecting licence
shall forthwith:-
a. report such spilling, pollution, loss or damage to the Licensing Authority; and
b. take at his own cost all such steps as may be necessary in accordance with good reconnaissance,
exploration or mining practices or otherwise as may be necessary to remedy the spilling,
pollution, loss or damage.
(2) If the holder of mineral title or prospecting licence referred to in sub-rule (1) fails to comply with the
provisions of paragraph (b) or that sub-rule within such period as the Licensing Authority may deem in
the circumstances to be reasonable the Licensing Authority may order the holder, by notice in writing
given to him, to take, within such period as may be specified in such notice, such steps as may be
specified in order to remedy the spilling, pollution, damage or loss; and the Licensing Authority may, if
the holder fails to comply with the order to the satisfaction of the Licensing Authority within the period
specified in the notice or such further period as the Licensing Authority may, on good cause shown,
allow in writing, cause such steps to be taken as may be necessary to remedy the spilling, pollution,
damage or loss and recover in a competent court the costs incurred thereby from such holder.
88. Service of documents. -
(1) Any document, notice or other communication required or authorised under these rules to be given to
or served on any person by the Licensing Authority or any other person shall be deemed to have been
given or served: -
a. if given to or served on such person, personally;
b. if despatched by registered or any other kind of post addressed to such person, at his last known
address which may be any such place or office as is referred to in paragraph (c) or the person's
last known post office box number or private bag number or that of the person's employer;
c. if left with some adult person apparently residing at or occupying or employed at the person's
last known abode or office or place of business;
d. in the case of a company: -
i. if delivered to the public officer of the company;
ii. if left with some adult person apparently residing at or occupying or employed at its
registered address;

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 46 ~

iii. if despatched by registered post addressed to the company or its public officer at its
or the officer's last known address; or
iv. if transmitted by means of a facsimile transmission to the person concerned at the
registered office or the company.
(2) Any document, notice or other communication referred to in sub-rule (1) which has been given or
served in the manner contemplated in paragraph (b) or (d) (iii) of that sub-rule, shall, unless the contrary
is proved, be deemed to have been received by the person to whom it was addressed at the time when
it would, in the ordinary course of post, have arrived at the place to which it was addressed.

89. Powers of authorised officer. -

(1) For the purposes of these rules, the Licensing Authority, through an authorised officer, at all reasonable
times: -
a. may enter in any area, structure, Vehicle, vessel, aircraft or building that, in his opinion, has
been, is being or is to be used in connection with reconnaissance, prospecting or mining
operations;
b. may inspect and test any machinery or equipment that in his opinion, has been is being or is to
be used in connection with any of the operations referred to in paragraph (a);
c. may take or remove for the purpose of analysis or testing, or for use in evidence in connection
with an offence against these rules, samples of minerals or other substances from a mine or
any area where any of the operations referred to in paragraph (a) are being carried on;
d. may inspect, take extracts from, and make copies of, any data, as defined in rule 86 (5), relating
to any of the operations referred to in paragraph (a);
e. may, with respect to the health and safety of persons employed by a holder of a mineral title or
prospecting licence in connection with any of the operations referred to in paragraph (a), issue
in writing directions to, and impose restrictions on, the holder or any person so employed;
f. may in writing order: -
i. the cessation of operations on or in, and the withdrawal of all persons from, any
structure or building that is being used in connection with any of the operations
referred to in paragraph (a); or
ii. the discontinuance of the use of any machinery or equipment, which he considers
unsafe, unless and until such action as is necessary for safety and specified in the order
is taken and completed; or
g. may make such examinations and inquiries as are necessary to ensure that the provisions of
these rules, and any directions issued, conditions imposed or orders made under these rules,
are being complied with.
(2) Before exercising any of his powers under sub-rule (1), if there is any person who is or appears to be in
charge of the area, structure, vehicle, vessel, aircraft, building, machinery, equipment or matter or any
other thing in respect of which the power is about to be exercised, an authorised officer shall show
identification to that person and to any person to whom he is about to give an order or a direction.
(3) Any person who is aggrieved by a decision, direction or order of an authorised officer made under this
rule may appeal in writing to the 31[Secretary] which shall, as soon as practicable hear and dispose of
the appeal.

31
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

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COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 47 ~

(4) On an appeal under sub-rule (3), the 32[Secretary] may rescind or affirm the decision, direction or order
appealed from or may make a new decision, direction or order in substitution therefore, and that
decision, direction or order shall be final.
(5) In exercising his powers under sub-rule (1), an authorised officer may be accompanied by any person
whom the authorised officer believes has special knowledge or any matter being inspected, tested or
examined.
(6) A person who is an occupier or person in charge of any building, structure or place, or the person in
charge of any vehicle, vessel, aircraft, machinery or equipment referred to in sub-rule (1), shall provide
an authorised officer with all reasonable facilities and assistance including the provision of necessary
means of transport, for the effective exercise of the authorised officer's powers under this rule.
(7) Any person who: -
a. without reasonable excuse obstructs, molests or hinders an authorised officer in carrying out
his functions under this rule; or
b. knowingly or recklessly makes a statement or produces document that is false or misleading
in a material particular to an authorised officer carrying out his functions under this rule
shall be guilty of an offence and punishable with a penalty as prescribed by the 33[Secretary] from time to
time, in addition to the rectification of the default within the time given by the Licensing Authority filling
which the mineral title may be withdrawn.
90. Further powers of authorised officers. -
(1) If a person who was the holder of a mineral title, such as is referred to in sub-rule (2) of rules 20, 31,44
or 56, fails to comply with the requirement of that sub-rule, an authorised officer may: -
a. at all reasonable times, enter upon any premises whatsoever and search for the records, maps
and plans, reports, photographs, tabulations, tapes, discs, books and documents referred to in
paragraphs (a) to (d) of that sub-rule; and
b. seize any such records, maps and plans, reports, photographs, tabulations, tapes, discs, books
and documents.
(2) The provisions of rule 89 (5), (6) and (7) shall apply mutatis mutandis in relation to an authorised officer
and the carrying out of his functions under this rule as they so apply under rule 89.
91. Offences. -
(1) Any person who carries on reconnaissance, exploration or mining operations in Punjab except under
and in accordance with a mineral title or prospecting licence shall be guilty of an offence and punishable
with a penalty as prescribed by the Government from time to time, in addition to the rectification of
the default within the time given by the Licensing Authority failing which the mineral title may be with-
drawn.
(2) Any person who: -
a. makes or causes to be made in connection with any application under these rules any statement
knowing it to be false or misleading;
b. submits or causes to be submitted in connection with any such application or any notice,
report, return or statement issued or given under any provision of these rules or the conditions
of any title, or prospecting licence any document, information or particulars which are false or
misleading knowing them to be false or misleading;

32
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
33
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 48 ~

c. fraudulently and with the intent to mislead any other person to believe that a mineral or
group of minerals exists at any place, places or deposits or causes to be so placed or deposited
any mineral or group of minerals in or at any such place; or
d. fraudulently and with intent to deceive mingles or causes to be mingled with any sample
of ore any substance which may increase the value or nature of the ore, shall be guilty of an
offence and punishable with a penalty as prescribed by the Government from time to time, and
shall rectify the default within the time given by Licensing Authority failing which the mineral
title may be with-drawn.

92. Evidence. -
(1) The production in any criminal or civil proceedings in any court of law of any certificate purporting to
have been signed by an authorised officer certifying whether or not on a date specified in the certificate
that: -
a. mineral title or prospecting licence was issued, renewed or transferred to a person so specified;
b. any interest in such title or licence has been granted, ceded or assigned to a person so specified;
c. any person has been joined as a joint holder of a title or licence so specified;
d. any condition so specified is or was a condition of title or licence; or
e. a person mentioned in the certificate is or was the holder of a title;
f. title or licence has been issued in respect of an area of land so specified shall.
g. unless the contrary is proved, be received in evidence as conclusive proof of the fact so
certified.
(2) The production in any civil or criminal proceedings in any court of an extract of an entry in the Titles
Register kept pursuant to rule 60, certified by an authorised officer to be a true and correct extract of
such an entry shall, unless the contrary is proved, be received in evidence as conclusive proof of the
entry.
93. Forfeiture order. -
Where a person is convicted of an offence under these rules, the court before which he is convicted may, in
addition to any penalty imposed or other forfeiture ordered, order that any mineral or group of minerals won
or mined in the course of the commission or the offence, be forfeited to the government or, in the event of any
such mineral or group of minerals having been sold or otherwise disposed of, that an amount equal to the
proceeds of the sale or the market value of the mineral or group of minerals, as determined by the court, be paid
by such person for the benefit of the Government.

94. Appeal. -
(1) 34[Incase of large-scale mining, if] a person is aggrieved by an order of the Licensing Authority
passed under these rules, he may, within thirty days of the communication of the impugned order and
payment of such fee as may from time to time be prescribed by the Government, prefer an appeal to
the 35[Secretary].
(2) The decision of the 36[Secretary] on such appeal shall be final.

34
Inserted after the omitting the word “if” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
35
The word “Secretary” inserted by substituting the word “Government in the Department” vide notification No. SOT(M&M)3 -1/2015(Vol-
II) dated 06.09.2022
36
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 49 ~

(3) The 37[Secretary], while hearing the appeal under sub-rule (1) may, if it so considers necessary in the
interest of justice, grant a stay order:
Provided that no such order shall be passed in respect of Government dues unless the appellant deposits
25% of the disputed amount with the Licensing Authority.

(4) If the appeal in which a stay order has been granted is finally rejected and the Appellate Authority is of
the view that the appeal was preferred on frivolous grounds or the stay order was obtained by deceit or
fraud on the part of the appellant, it may while deciding the appeal, impose a penalty upto 5% of the
disputed amount.
(5) The amount deposited under sub-rule (3) shall first be adjusted towards the penalty imposed under sub-
rule (4). The remaining amount, if any, may be adjusted towards the satisfaction of the Government
dues, and the balance, if any, may be refunded to the appellant.

PART-3 SMALL SCALE MINING

1-GENERAL
95. Manner in which application may be made. -
(1) An application for a licence or a lease shall be in the form set out by the Licensing authority.
(2) The application shall be handed over alongwith the requisite documents to the officer authorised in this
behalf, by the Licensing Authority.
(3) The application, if complete in all respects, shall forthwith be allotted a registration number.
(4) The incomplete application shall be returned alongwith the objections duly signed by the authorised
officer.
96. Documents to be annexed. -
(1) An application for a licence or a lease made under rule 95 shall be accompanied by: -
a. the original copy of the Treasury Challan pertaining to the deposit of such application fee as is
notified by the Government from time to time;
b. in the case of a partnership firm, an authenticated copy of the partnership deed duly registered
with the Registrar of Firms concerned;
c. in the case of a company, a verified copy each of the Memorandum and Articles of Association
and Certificate of Incorporation;
d. fifteen copies of the map duly signed by the applicant, showing the boundaries of the area in
respect of which the licence or lease is applied for. The map shall be prepared from the Survey
of Pakistan Maps of Scale 1:50,000 or nearest scale available. It will be sufficient compliance
of this sub-rule if only one copy of the map or sketch plan showing area and grid lines is
attached with the application and such fee for preparing 15 copies of the plan, as is notified by
the Government from time to time, is paid in advance; and
e. evidence of financial status of the applicant in the manner as may be prescribed by the Licensing
Authority from time to time.
(2) An applicant shall also furnish such other information as may be required by the Licensing Authority.
If the requisite information is not furnished within two months, the application shall be liable to be
rejected.

37
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 50 ~

(3) The information contained in the application or furnished to the Licensing Authority in pursuance of
an application made in accordance with these rules, other than that incorporated in the register referred
to in rule 100 shall be treated as confidential by the Licensing Authority.
97. Acknowledgement of application. -
The officer receiving the application under these rules shall record thereon the date and time of its receipt
and shall deliver to the applicant an acknowledgement stating the date and time of receipt

98. Reciprocity. -
A licence or a lease shall not be granted to, or held by, any person who is or becomes controlled directly or
indirectly by a national of or by a company incorporated in any country the laws and customs of which do
not permit subjects of Pakistan or companies incorporated in Pakistan to acquire, hold and operate mining
concessions on conditions which, in the opinion of the Government, are reasonably comparable with the
conditions upon which such rights are granted to nationals of that country in Pakistan.
99. Application by an alien or a company incorporated outside Pakistan. -
In the case of an application for a licence or lease by an alien or a company incorporated outside Pakistan
or in the case of an application by a licensee or a lessee for the Government's consent to the assignment of
a licence or a lease to an alien or a company incorporated outside Pakistan, such licence or lease shall only
be granted or assigned to a company incorporated in Pakistan for the purpose of receiving and working any
such licence or lease.
100.Register of applications. -
(1) The Licensing Authority shall maintain a register of applications for licences and leases containing the
following columns: -
a. Serial No.
b. Date and time of the receipt of application.
c. Particulars of the applicant.
d. Mineral for which a licence or a lease is required.
e. Period for which a licence or a lease is required.
f. Full particulars of the area applied for.
g. Application fee paid.
h. Final orders regarding disposal of the application.
i. Remarks, if any.
(2) The register maintained under sub-rule (1) and the Master Plan showing the area in respect of which a
lease or a licence has been applied for or granted shall be open to public for inspection on payment of
such fee as is notified by the Government from time to time.
Explanation: - Master Plan would mean such survey of Pakistan Map on which the areas applied for and
the areas granted under licences and leases are marked by the Licensing Authority for record.

101. Separate application to be made for each area and each mineral. -
A separate application shall be made in respect of each area and for each mineral.

102.Grant of more than one licence or lease to the same person. -

More than one licence or lease may be granted to the same person

103.Availability of area. -

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 51 ~

On receipt of the application, the Licensing Authority shall, before granting the concession, ascertain that
the area applied for does not overlap with an area already covered by a licence or a lease or an application
for such a licence or a lease:
Provided that the Licensing Authority may fix the maximum and minimum limits of area for grant of
concessions for different minerals to an individual, firm or a limited company.
104.Priority. -
In case there are more applications than one for the grant of licence or a lease in respect of the same mineral
or area, unless the Licensing Authority in its discretion decides otherwise, by recording reasons therefore,
the principle of first come first served shall apply.

105.Refusal to grant licence or lease. -

If in the opinion of the Licensing Authority it is not expedient to grant licence or a lease, it shall refuse the
acceptance of the application 38[giving reasons thereof in a well-defined manner].
106.Lapse of right to licence or lease. -
If a licensee or a lessee fails to submit the accepted copy of the plan of the granted area, demarcation
certificate and prospecting/development scheme in the manner as prescribed under the rules, within the
time period fixed in the allotment letter, the Licensing Authority, after providing an opportunity to explain
the delay, may terminate the concession.
Provided that the Licensing Authority may condone the delay in submission of the said documents after
imposing penalty under rule, 177.

107.Terms and conditions of licences and leases. -

A licence and a lease shall stand granted on the issuance of allotment letter by the Licensing Authority and
may include such clauses relating to ancillary matters as the Licensing Authority may deem fit to insert.

108.Assignment. -
A licensee or a lessee shall not transfer any right or interest in the licence or the lease, nor part with the
possession of the area or any part thereof, without prior approval in writing of the Licensing Authority.
Provided that a licensee or a lessee shall not divide the licensed or the leased area between the partner or
the partners, as the case may be, without the prior approval of Licensing Authority.

109.Method of making application for assignment. -

(1) An application for assignment under these rules, shall be submitted at least three months before the
expiry of the licence and not less than eighteen months before the expiry of the lease in the Form set
out by the Licensing Authority and shall be accompanied by such fee as is notified by the Government
from time to time.

38
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 52 ~

(2) The applicant shall furnish in the application all such particulars in respect of the proposed assignee as
are required in case of an application for a licence or a lease under these rules and shall annex the
requisite documents.
(3) The application shall be 39[***presented in person and***] signed both by the assignor and the assignee in
the presence of the Licensing Authority or the officer authorised in this behalf 40[and shall be deemed
to be accepted]
110. Security deposit. -
(1) Every applicant shall, before a licence or a lease is granted or assigned to him deposit security in respect
of such licence or lease at the rate and in the form notified by the government from time to time;
provided that no security shall be payable afresh, where the licence or lease has been assigned to a
financing institution
(2) Subject to the provision of these rules, if a licence is converted into a lease, the security deposited under
sub-rule (1) shall be adjusted towards security for the lease.
111. Right of surrender. -
A licensee or a lessee desirous or surrendering the area under licence or lease, in whole or in part, shall give
at least one month's prior notice in writing to the Licensing Authority:

Provided that where the licence or the lease has been assigned to or charged in favour of a financing
institution, the licensee or the lessee shall not be entitled to surrender the licence or the lease in whole or in
part, except with the prior consent in writing of the financing institution concerned:
Provided further that in the case of partial surrender, the area to be retained shall not be less than the
economic limit fixed by the Licensing Authority and the shape of the area shall be subject to provisions of
rule 114:
Provided further that on the partial surrender of the area, the licensee or the lessee, as the case may be, shall
become entitled to proportionate reduction in annual fee or dead rent but the annual fee or the dead rent
that has already become due from or paid by the licensee or the lessee shall not be 41[refunded].

112. Publication. -
As soon as may be after the grant renewal, assignment, surrender, determination, or lapse of any licence or
lease under these rules, the Licensing Authority shall publish notice of such grant, assignment, surrender,
determination, or lapse in the official Gazette stating the name of the licensee, the lessee or the assignee
and a brief description of the area concerned.
113. Refund of security deposit. -
If the Licensing Authority is satisfied that the provisions of these rules have been duly complied with, on
the expiry, surrender, lapse or determination of a licence of a lease, the amount of the security deposit may
be refunded to the licensee or the lessee, as the case may be, after making deduction towards rents, royalties,
penalties or any other amount outstanding against him under the rules.
114. Shape of area. -

39
Omitted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
40
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
41
The word “refunded” inserted by substituting the word “referred” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 53 ~

Each area in respect of which a licence or a lease is granted shall, as far as practicable, be in a compact shape
and shall either be limited by well-marked permanent physical boundaries to be bounded by straight lines:
Provided that where a gap of 100 meters or less exists between the licensed or leased area it shall not be
granted to an applicant other than the licensee or the lessee of the adjoining area:

Provided further that on a request made in writing by the licensee or a lessee, the Licensing Authority may
order the merger of his contiguous areas under a license or a lease subject to provision of these rules.
115. Release of lands included by inadvertence. -
In the event of the inclusion, by inadvertence, of the area under a licence or a lease in respect of which it
may subsequently transpire that the rights for the same mineral have already been granted to another
individual, firm, or company or part of the area has been included through typographical or clerical mistake,
the licensee or the lessee shall immediately release to the Licensing Authority any such land or area when
required to do so by the Licensing Authority without any claim of compensation

116. Grant of same area to different parties. -

The Licensing Authority may grant the same area to different persons for different minerals.
117. Mode of payments. -
(1) All amounts payable under these rules, unless otherwise prescribed by the Licensing Authority, shall be
deposited into a Government Treasury or into any bank authorised by the Government for the purpose,
under the Head of Account specified by the Licensing Authority, from time to time.
(2) The receipt or the challan shall, in original, be submitted to the Licensing Authority.

II - PROSPECTING LICENCES
118. Licensee's right under a licence. -
A licence shall, subject to these rules and conditions contained in the licence, confer on the licensee the
rights given in the Allotment Letter.
119. Grant of prospecting licence. -
The Licensing Authority may in accordance with these rules grant a prospecting licence for a mineral over
the area specified therein provided the applicant is considered fit.
120.Area. -
Except as otherwise determined by the Government, a licence shall not be granted in respect of any area of
more than 42[12.5] square kilometers.
121. Register of licence. -
The Licensing Authority shall maintain a register of licence granted by it, specifying: -
(1) Number of the prospecting licence;
(2) Mineral for which the licence is granted;

42
Figure “12.5” inserted by substituting the figure “50” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 54 ~

(3) Name and address of the licensee;

(4) Particulars of the licensee whether individual, firm or company;
(5) Date of grant of the licence;
(6) Total area;
(7) Situation and boundaries of the area;
(8) Amount of Security deposit;
(9) Particulars of disposal or refund of security deposit;
(10) Dates of renewals;
(11) Date of assignment of the licence;
(12) Particulars of the assignee;
(13) Date of application for mining lease;
(14) Date of conversion of licence into lease; and
(15) Remarks, if any.

122.Period of licence. -
The licence shall, in the first instance, be valid for a period of 43[three] years.

123.Renewal. -
Subject to the licensee having carried out the working obligations under rule 125, the Licensing Authority
may grant renewal of the licence for a period of 44[two years] at anyone time to enable the licensee to
complete the prospecting work to the satisfaction of the Licensing Authority:

Provided that the total period of the licence including the initial period shall not exceed 5 years:
Provided further that the period of 5 years shall be in addition to the grace period provided in rule 124.

Provided further that the licensee shall apply in writing to the Licensing Authority for renewal at least one
month before the licence expires. The Licensing Authority may, however, condone the delay in the
submission of the application.
Explanation. - The period of a licence shall be reckoned from the initial date of grant of the licence
irrespective of any assignment made during the currency of the licence.

124.Right of a licensee for renewal of his prospecting licence, on applying for mining lease. -
The licensee having applied for the grant of a lease over the area specified in the licence before the expiry
of the licence shall have the right to renewal of the licence until the lease applied for has been granted or
refused.
125.Working obligations. -
(1) The licensee shall, in respect of the areas covered by each licence, prepare and submit, within three
months of the grant of the licence, a scheme of prospecting for the approval of the Licensing Authority
and shall not commence the operations unless the scheme has been 45[submitted].

43
The word “three” inserted by substituting the word “two” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
44
The words “two years” inserted by substituting the words “twelve months” vide Notification No. V(I&MD)3-21/95 Vol-III dated
30.04.2003
45
The word “submitted” inserted by substituting the word “approved” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 55 ~

(2) The scheme shall inter alia include (i) location of the area; (ii) nature of deposits; (iii) methods of
prospecting including machinery and equipment to be used; (iv) phasing of prospecting operations; (v)
technical personnel to be employed; (vi) details of roads, residential accommodation for staff and
labourers to be constructed; and (vii) phase-wise estimated expenditure on the scheme.
(3) The scheme shall be accompanied by necessary geological maps, plans, etc.
(4) The Licensing Authority shall communicate the approval of the scheme to the licensee within three
months of its receipt.
(5) If, in the opinion of the Licensing Authority the licensee fails to fulfill the working obligations as
required by the scheme, the licensee shall forfeit the right to renewal of the licence or the grant of lease
over any part of the area covered by the licence.
126.Annual fee. -
(1) The licensee shall pay such annual fee as is notified by the Government from time to time for the land
covered by the licence. The fee shall be enhanced by 50 per cent over the last fee paid each time the
licence is renewed. The fee shall also be payable for the period of renewal granted under rule 124, as a
single renewal or term, as the case may be.
(2) The fee shall be payable for each mineral separately even if the area under licence for different minerals
is the same.
127.To plug boreholes, etc. -
Save in the case of land over which the licensee has been granted a lease on or before the determination of
the licence, he shall, within one month after the determination of the licence or the date of abandonment
of the under-taking, whichever may occur earlier, securely plug all mines and fill up or fence any holes or
excavations that he may have made in the land to such extent as the Licensing Authority may require and
shall, to the like extent restore the surface of the land and all building thereon which he may have damaged
in the course of prospecting:
Provided that the licensee shall not be required to restore the surface of the land or any building in respect
of which compensation has been paid under these rules.
128.Right of the licensee to a mining lease. -
Subject to the provisions of these rules, the licensee shall have a right to lease:
Provided he has carried on prospecting operations to the satisfaction of the Licensing Authority, proved
mineral reserves and has been paying all Government dues regularly and has paid such compensation, if
any, as is provided in these rules:

Provided further that the licensee shall apply in the prescribed form alongwith documents as laid down
under rule 96, by hand, for the grant of a lease at least one month before the expiry of the licence. The
Licensing Authority may, condone the delay upto a maximum period of three months in the submission of
such an application after imposing penalty under rule, 177.

129.Disclosing the information acquired by the licensee during the course of his operations. -
If so required by the Licensing Authority, the licensee shall, before the security is returned to him under
rule 113, disclose to the Licensing Authority all information required in the course of the operations carried
on under the licence regarding the minerals contained therein, and geological formation of any area not
taken or granted under a mining lease.

III-MINING LEASES

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 56 ~

130.Lessee's right under a lease. -

A lessee shall subject to these rules and the conditions contained in the lease, confer on the lessee the rights
as envisaged in these rules.
131. Grant of mining lease. -
The Licensing Authority may grant a mining lease in accordance with these rules, for a mineral over the
land specified therein provided the applicant is considered fit.
132.Comprehensive mining Lease. -
Except where special exemption is granted by the Government no lease shall be granted in respect of an
area of more than 12.5 square kilometers.

133.Register of mining leases. -

The Licensing Authority shall maintain a register of leases granted by it, specifying: -

(1) Number of the mining lease;

(2) Mineral for which lease is granted;
(3) Name and address of the lessee;
(4) Particulars of lessee, whether individual, firm or company;
(5) Date of grant of lease;
(6) Period for which granted;
(7) Total area;
(8) Situation and boundaries of the land;
(9) Amount of security deposit;
(10) Particulars of disposa1 or refund of deposit;
(11) Dates of renewals with periods;
(12) Date of assignment of the lease;
(13) Particulars of the assignee; and
(14) Remarks.
46[***Provided that the Licensing Authority may renew the lease for the whole area or only a part thereof. ***]

134.Period of Lease. –
(15) 47 [The initial term of a lease shall not exceed ten years.
(16) If a lessee has carried out all the working obligations under these rules and implemented the exploitation
scheme to the satisfaction of the Licensing Authority and if he has paid all the dues on account of:
a. rents, royalty, penalties, damages and surface rent as required under these rules; and
b. bid money, in case of mining leases granted under rule 187, at the rates and manner prescribed
by the Secretary on the basis of recommendation of Technical Expert Committee as is referred
in Rule 3- A, the Licensing Authority may grant further renewal of the lease for a period not
exceeding 10 years at a time, on such terms and in such form as it may determine.
Provided that the lessee shall apply to the Licensing Authority in writing, in the prescribed Form for renewal
not more than one year and not less than six months before the expiry of the term already granted to him:

46
Proviso deleted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
47
Rule 134 substituted vide notification No. SOT (M&MD)8-15/1990(Vol-V) dated 06.01.2023

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 57 ~

Provided further that the Licensing Authority may condone the delay in submission of the application in
appropriate cases, upto a period of three months after imposing penalty under rule 177, and the Appellate
Authority may condone the delay up to six months:
Provided further that a lessee having applied for the grant of renewal of the lease under these rules shall
have a right to work in the area till the request has been accepted or refused:
Provided further that the Licensing Authority may renew the lease for the whole area or only a part thereof
except lease granted under rule 187, if feasible.]

134. Period of Lease

(1) The initial term of a lease shall not exceed thirty years.
(2) If a lessee has carried out all the working obligations under these rules and implemented the exploitation scheme to the
satisfaction of the Licensing Authority and if he has paid all the dues on account of rents, royalty, penalties, damages and
surface rent as required under these rules, the Licensing Authority 48[shall] grant further renewal of the lease for a period
not exceeding 30 years at a time, on such terms and in such form as it may determined:
Provided that the lessee shall apply to the Licensing Authority in writing, in the prescribed Form for renewal not more than
two years and not less than one year before the expiry of the term already granted to him49[.] 50[The Licensing Authority
shall also issue a registered notice to the concessionaire about the date of expiry of concession at
least one year prior to the date of expiry;]
Provided further that the Licensing Authority may condone the delay in submission of the application in appropriate cases, upto
a period of six months after imposing penalty under rule 177 51[and the Appellate Authority may condone the
delay up to one year;]
52[***Provided further that a lessee having applied for the grant of renewal of the lease under these rules shall have a right to
work in the area till the request has been accepted or refused.

Provided further that the Licensing Authority may renew the lease for the whole area or only a part thereof, in case of renewal
over part of the area, the balance area shall be leased out under rule 187. ***]

135.Yearly dead rent. -

The lessee shall pay a fixed half yearly dead rent in advance on the first day of January and the first day of
July each year and a proportionate advance dead rent for the broken period, if any, at the commencement
or termination of the lease, at such rate as is notified by the Government from time to time:

Provided that the lessee shall pay either royalty or the dead rent, whichever is higher.
136.Submission of development scheme. -
(1) An applicant for grant of a lease or its renewal shall also submit, alongwith the application, a
development scheme for the approval of the Licensing Authority. The scheme shall be prepared and
authenticated by a qualified Mining Engineer.
(2) The development scheme shall, inter alia, include (i)in case the applicant already holds a licence for the
area for which he makes an application for a lease, detailed account of the work done during the
prospecting period, geological description of the major deposits alongwith a detailed geological plan of

48
The word “shall” be inserted by substituting the word “may” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
49
The full stop “.” inserted by substituting the colon “:” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
50
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
51
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
52
Provisos “third and fourth” omitted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 58 ~

the area on a scale as prescribed by the Licensing Authority from time to time; (ii) a detailed plan of the
area on a scale as prescribed by the Licensing Authority from time to time showing its location, outcrop,
topography, existing / proposed mines and other infrastructures; (iii) location and description of the
major deposit; (iv) proved and probable reserves; (v) planned minimum rate of production; (vi) method
of mining, including machinery and equipment to be used;(vii)technical personnel to be employed at
various stages of development; (viii) details of the roads and other surface as well as underground
construction such as stores and lamps rooms, workshops, beneficiation and mineral dressing plants,
office and residential accommodation and facilities for staff and labour to be provided; (ix) time
schedule for all the work involved; and (x) estimated phased expenditure on the scheme with detailed
break up of cost.
(3) The applicant shall, where necessary, furnish plans or sections to illustrate, justify and amplify the
development scheme.

137.Approval of development scheme. -

(1) The Licensing Authority may subject to such modifications as may be deemed necessary approve the
development scheme provisionally, within a period of three months from the date of submission of the
development scheme. The development scheme shall be implemented through a phase-wise
programme of development approved by the Licensing Authority.
(2) If the Development Scheme is rejected, the Licensing Authority shall communicate to the applicant the
reasons for such rejection. The applicant shall within two months of the receipts of such
communication, submit a revised scheme to the Licensing Authority failing which the right of the
applicant for the grant of the lease shall lapse.
(3) On a request to be made in writing by the lessee, the development scheme may be prepared by the
Licensing Authority itself or through a Mining Consultant and charge a fee as determined by the
Licensing Authority from the lessee for preparation of the scheme.
Provided that the Licensing Authority may register mining consultant for a period of five years on the
payment of fee and further renew in the manner prescribed by it. On proof of misconduct of Mining
Consultant, the Licensing Authority may impose penalty under rule 177 and on persistent violation may
cancel the registration of that Mining Consultant.
Provided further that before such communication, the Mining Consultant shall be given an opportunity to
explain his position and will be heard in person, if he so desires.

138.Failure to act according to the development scheme. -

If at any time but not less than six months after the grant of the lease, or its renewal it is found that the
lessee is not working in accordance with the approved development scheme, the Licensing Authority may
impose penalty under rule 177 and shall direct the lessee in writing to remedy the violations within six
months:
53[Providedthat if lessee seeks revision of Development Scheme giving cogent reasons, the Licensing
Authority may revise the Phased Program of Development; and]

53
Proviso inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 59 ~

Provided 54[further] that if a lessee fails to remedy the violations without cogent reasons within the time
limit fixed by the Licensing Authority, the lease may be cancelled:
Provided further that before such cancellation, the lessee shall be given an opportunity to explain his
position and shall be heard in person, if he so desires.

139.Keeping development schemes at mines. -

The lessee shall at all times keep a copy of the approved development scheme and latest working plans at
the site.

140.Commencement of operations. -
(1) Unless the Licensing Authority, for sufficient reasons otherwise directs, the lessee shall commence
operations from the date of the communication of the approval of the Development Scheme to him.
(2) The lessee shall carry out operations in a skillful and workman like manner and in accordance with the
approved development scheme.
Explanation: - It shall amount to non-fulfillment of working obligations and a breach of this condition,
if the lessee, without sufficient cause, fails to produce enough minerals so as to earn royalty at least equal
to the dead rent within one year of the commencement of the operations.

IV – MISCELLANEOUS
141. Royalty. -
(1) A licensee or a lessee shall, on the first day of the month of January and July each year, pay royalty at
such rate or in any manner as prescribed by the Government from time to time on all minerals produced
and carried away.
(2) In case of non-payment of rent and royalty dues within the grace period of two months, a penalty at
the rate of one percent of the outstanding dues for the delay of every month or part thereof shall be
charged from the date the payment became due.
142.Compensation. -
A licensee or a lessee shall pay such compensation as may be assessed by the authority concerned in
accordance with the law for the time being in force for all damage, injury or disturbance which may be done
by him in exercise of the powers granted by the licence or the lease and shall indemnify the Licensing
Authority against all claims which may be made by third parties in respect of any such damage, injury or
disturbance. In case of dispute the matter shall be referred to the Licensing Authority for a final decision.

143.Surface rent. -
(1) A licensee or lessee shall pay, for all Government land which he may use or occupy superficially for the
purposes of the operations conducted under the licence or the lease, a surface rent and water-rates
55[***at the rate***] assessable under the revenue or any other law or rules in the district in which the

land is situated:
Provided that if no such rent is assessable under the existing law, the rent and the water rate may be fixed
by the Licensing Authority.

54
The word “further” inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
55
Omitted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 60 ~

(2) If the land belongs to a private person, a lessee or a licensee shall pay surface rent to the owner of the
area for the land actually used or occupied superficially at such rate and in such manner as may be
mutually agreed upon between the lessee and the landowner and in case of disagreement between them,
at such rate and in such manner as may be determined by the Licensing Authority 56[by taking into
account produce unit of the area]:
Provided that before proceeding under this rule, the Licensing Authority shall give the parties
reasonable opportunity of being heard.
(3) 57[Ifno such rent is available under the laws of the district in which the land is situated, the rent may
be fixed by the Licensing Authority subject to a minimum of Rs.200/- per acre.]
144.Not to cut or injure any tree. -
A licensee or a lessee shall not cut or injure any tree on Government land or on reserved forests without
the prior permission in writing of the Licensing Authority or of such officer or officers as the Government
may authorise in this behalf.

145.Operation in the reserved and Protected forests. -

(1) All operations conducted under these rules within a reserved or protected forest shall be subject to such
conditions as the Government may, from time to time, by a general or a special order, prescribe
(2) It shall be a condition of every licence or lease granted under these rules that before the commencement
of prospecting or mining operations within a reserved or protected forest, 30 days notice shall be given
to the Forest Officer concerned of the intention to commence operations
(3) The operations shall be conducted subject to such precautions regarding prevention of fire and
conservation of forest as the licensee or the lessee may be required, from time to time.
146.Limits of boundaries. -
The boundaries of the area covered by a licence or a lease shall run vertically down-wards below the surface
towards the centre of the earth.
147.Demarcation of area. -
(1) A licensee or a lessee shall, within sixty days of the issue of the licence or a lease, cause the granted area
to be demarcated on ground according to the survey data and submit a certificate on the prescribed
form signed by a Registered Surveyor of having carried out the said boundary demarcation.
(2) On receipt of the certificate referred in sub-rule (1), the Licensing Authority may cause boundary
demarcation to be checked and corrected.
(3) A licensee or a lessee may get his area demarcated officially, after paying such fee as may be notified by
the Licensing Authority from time to time.
(4) A licensee or a lessee shall not commence prospecting or mining operations unless he has submitted
the demarcation certificate to the Licensing Authority.
(5) A boundary dispute in respect of the licensed or leased area, shall be referred to Licensing Authority
whose decision shall be final.
148.Boundary marks. -
The licensee or the lessee shall, at his own expense, erect and at all times maintain boundary marks and
pillars standing not less than one meter above the surface of the ground and being not less than one meter

56
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
57
Sub rule (3) inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 61 ~

square or in diameter at the base at every angle or corner of boundary lines to be fixed according to the
demarcation under rule 147.
149.Not to construct buildings upon any public place, etc. -
A licensee or a lessee shall not erect any building or carry on any surface operation upon any public
recreation grounds, grave-yards, place held sacred by any class of persons or any house, village site, or public
road or any other place which the Government or the Licensing Authority may specify in this behalf.
150.Not to work within 100 meters from any railway line, etc. -
A licensee or a lessee shall not carry on or permit to be carried on any prospecting or mining operations at
or upto any point within a distance of 100 meters from any railway line, reservoir, canal, power line, gas
pipeline or other public works, or building or place of archaeological importance except with the previous
permission of the Government and in accordance with such conditions as may be imposed.
151. Distance from boundaries. -
No prospecting or mining operations shall, except with the prior consent in writing of the Licensing
Authority, be carried on by the licensee or the lessee in or under the licensed or leased area at or to any
point within a distance of 50 metres from the boundaries of the area.

152.Weighing machine. -
A Licensee or a lessee shall provide at or near the mine or quarry a properly constructed and correct weighing
machine or other suitable means for determining the weight or quantity of the mineral produced.
153.Keeping of record. -
(1) A Licensee or a lessee shall, at all times, keep in the form prescribed by the Licensing Authority,
complete record at the mine premises, showing the quantity of the minerals obtained and despatched
from the mines on the authenticated register issued by it or its authorized representative. The Licensee
or the lessee shall also maintain the record showing the number of mines and persons employed therein
and complete plans of the mines. The minerals excavated from any licensed or leased area shall be
despatched from the area on the prescribed despatch slips duly authenticated by the Licensing Authority
or its authorized representative:
Provided that despatch slips shall clearly indicate the date, licence/lease No., name of buyer, vehicle
No., quantity of mineral and its destination:

Provided further that any vehicle/carrier carrying mineral without prescribed despatch slip duly
authenticated by the Licensing Authority or its authorized representative shall be considered as under
reported production and shall be dealt with accordingly.
(2) A licensee or a lessee shall allow the officer so authorised by the Licensing Authority in that behalf to
examine such record and plans, to take extract, or if necessary, collect record for scrutiny on giving a
receipt.
(3) If a licensee or a lessee fails to produce the record at the mine premises at the time of inspection, he
shall render himself liable to a penalty under rule 177 to be imposed by the Licensing Authority.
Provided that the Licensing Authority before imposing penalty, shall afford the licensee or the lessee
an opportunity of being heard.

154.Submission of production returns. -

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COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 62 ~

A licensee or a lessee shall send monthly returns of production and despatch of mineral to the Licensing
Authority in the prescribed form on or before the 1st day of each succeeding month. In case there is no
production of mineral in any month, a 'NIL' report shall be submitted with reasons therefore.
155.Submission of periodical return. -
A licensee or a lessee shall be required to abide by all instructions issued by the Licensing Authority from
time to time regarding the maintenance of record of production and system of despatch of mineral from
the licensed or leased area, and: -

a) submit at the end of every year balance sheet account audited by a qualified and registered Auditor
and such other information and periodical returns as may from time to time be prescribed by the
Licensing Authority;
b) submit statistical data, geological reports, including interpretation, mineral analysis, photographs,
ore logs tests and such information as may be required by the Licensing Authority or a statistical
organization in such form as may be prescribed; and
c) meet any target of production fixed by the Licensing Authority based on the off-take of mineral.
156.Inspection. -
A licensee or a lessee shall provide the Licensing Authority, or an officer authorised by the Licensing
Authority in this behalf, all reasonable facilities to enter upon the mine premises including underground
workings for purposes of inspection of mines and shall also make available all records at the mines and else-
where for carrying out survey, measurement, examination or enquiry about any matter, ancillary or incidental
to the matters set out in these rules.

157.Strengthening and supporting mines. -

A licensee or a lessee shall strengthen and support to the satisfaction of the Licensing Authority, whole or
any part of the mine when, in its opinion such strengthening or support is needed for the conservation of
the mineral and safety of personnel or any railway, reservoir, canal or any other public work or any building.
158.Power to assess and claim compensation for damage to mineral property. -
(1) In the event of any damage caused to the mineral property due to un-scientific working, lack of
supervision, negligence or any other omission or commission on the part of a licensee or a lessee, the
Licensing Authority shall assess the extent of the damage and the compensation payable therefore by
the licensee or the lessee:
Provided that before so doing, the Licensing Authority shall afford the licensee or the lessee a fair
opportunity of being heard and explain his position.
58[***(2) The decision of the Licensing Authority under this rule shall be final. ***

(2) The licensee or the lessee shall be liable to pay the compensation so assessed in the same manner as
arrears of rents and royalties are payable.]
159.Non-conservational mining activities. -
(1) If, on inspection or otherwise, the Licensing Authority is of the opinion that a licensee or a lessee is
working in a manner contrary to the conservation of mineral property, the Licensing Authority may
require the licensee or the lessee in writing to remove the defects or amend the method of mining or

58
Sub rule (2) deleted and sub rule (3) re-numbered as sub rule (2) vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 63 ~

prospecting within a period to be determined by the Licensing Authority subject to the condition that
the period shall not exceed 59[six] months in any case.
(2) If the licensee or the lessee fails to comply with the instructions within the specified period, the
Licensing Authority shall have 60[the power to stop] the work of the extraction of mineral in whole or
in any part of the area demised under licence or lease till such time the defects are removed to the
satisfaction of the Licensing Authority.
(3) If the defects are not removed or the method of mining is not amended to the satisfaction of the
Licensing Authority within two months from the date of the stoppage of work, the licence or the lease
may be cancelled 61[after providing an opportunity of personal hearing to the licensee or the
lessee].
62[***(4) If prior approval of the Licensing Authority is not obtained, a licensee or a lessee shall not depillar or abandon

mines unless depillaring is the part of the approved scheme. ***]

160.Under-reporting of mineral production. -

(1) If as a result of inspection of the mines or areas demised under the licence or the lease or otherwise it
is discovered to the satisfaction of the Licensing Authority that the licensee or the lessee has under-
reported mineral production, the Licensing Authority shall charge royally upto ten times the notified
rate, on the quantity of mineral under-reported by the licensee or the lessee, forfeit the security deposit
and may also cancel the licence or lease on the merits of the case:
Provided that no action under this rule shall be taken without giving the licensee or the lessee an opportunity
of being heard.
(2) An entry in the record of the licensee or lessee shall be made regarding under-reporting and shall be
exhibited at the time of the renewal of the licence or the lease.
161. Employment of technical personnel. -
A licensee or a lessee shall employ such technical personnel as is required by Licensing Authority.

162.Training. -
A licensee or a lessee shall when asked to do so by the Licensing Authority, arrange and provide facilities
for training to students of any Mining Engineering Institution or to any other person associated with the
profession of Engineering, Geology or other related science.
163.Access to other licensee or lessee both on surface and underground. -
A licensee or a lessee shall allow existing and future licence or lease holders of any area which is comprised
in or adjoins or is reached by the land held by the licensee or the lessee all reasonable facilities of surface or
underground access thereto, on the terms and conditions as may be determined by the Licensing Authority.
164.Discovery of other minerals. -
A licensee or a lessee shall, without delay, report to the Licensing Authority the discovery on or within any
of the lands or mines demised under the licence or the lease of any mineral not specified in the licence or

59
The word “six” inserted by substituting the word “two” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
60
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
61
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
62
Sub rule (4) deleted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 64 ~

the lease, but he shall not unless a fresh licence or lease in respect of the mineral so discovered is granted
to him under these rules, have any right to that mineral.
165.Pre-emption. -
The government shall at all times have the right of pre-emption of the minerals lying upon the land in
respect of which it licence or a lease has been granted, or elsewhere under the control of the licensee or the
lessee:
Provided that a fair price as determined by the Licensing Authority for all minerals taken in pre-emption
shall be paid to the licensee or the lessee.
166.Meeting the internal requirements of Pakistan. -
The Government shall have the right to require a licensee or a lessee: -
a. to meet the internal requirements of Pakistan to the satisfaction of the Government before
exporting any mineral or its products to other countries;
b. to associate Pakistan capital subject to any law for the time being in force to the extent of 51
% of all classes of capital and debentures issued by him from time to time; and
c. to employ nationals of Pakistan in his organization in all grades and in all branches including
technical and administrative personnel and to arrange for the training in Pakistan or abroad of
the nationals of Pakistan to fill up these aforesaid appointments. The number of Pakistan
nationals to be employed or trained will be determined in consultation with the Government.

167.To ascertain and verify the value of precious stones, etc. -

The Licensing Authority may from time to time ascertain and verify in such manner as it may deem fit, the
value of all precious stones and other minerals, ore and metals dressed or extracted by a Licensee or a Lessee
for the purpose of ascertaining the royalty payable under these rules.
168.Change in the constitution of the licensee or lessee. -
A licensee or a lessee may issue any fresh capital or make any change in its constitution which shall be
intimated in writing within 30 days to the Licensing Authority, which may finally confirm it:

Provided that if more than 50% transfer of capital/share is involved, the case shall be dealt in accordance
with rule 108 of these rules.

169.Exclusion of lands for public purposes. -

If an area or a portion thereof held under a licence or a lease is required at any time for any public purpose,
the licensee or the lessee shall forthwith release to the Licensing Authority such area and to such extent as
is required by the Government under such terms and conditions as may be determined by the Licensing
Authority:
Provided that where any area excluded as above becomes subsequently available for the purpose of grant
under licence or lease, the previous licensee or the lessee shall have prior right over such area if his original
licence or lease subsists.

170.Report of accident, etc. -

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 65 ~

A licensee or a lessee shall report immediately to the Licensing Authority any incident of fire, explosion,
inundation or roof-fall causing damage to mineral property or loss of human life. The Licensing Authority
may direct an enquiry to assess the loss caused to mineral property and reasons thereof. In case, it is proved
to the satisfaction of the Licensing Authority that the accident had taken place due to the negligence of the
licensee or the lessee, action may be taken under these rules.

171. Sub-letting. -
(1) No licensee or lessee shall sublet the mine for the purpose of extraction of the mineral.
(2) The licence or the lease shall be cancelled by the Licensing Authority, if the provision of sub-rule (1) is
violated:
Provided that before proceeding under sub-rule (1) the licensee or the lessee shall be given an opportunity
of being heard.

Explanation. - Sub-letting includes such act on the part of a licensee or a lessee whereby the liberties,
powers, privileges and obligations under the licence or lease as the case may be, are transferred to a third
party in respect of the area demised under the licence.
172.Taking possession of works, etc. in time of war or national emergency. -
(1) In the event of a state of war or national emergency, the Government may take control of works, plant
and premises under the licence or the lease.
(2) In such an event, the licensee or the lessee shall conform to and obey all directions issued by the
Licensing Authority or the Government in this behalf.
(3) A fair compensation as determined by the Licensing Authority shall be paid to the licensee or the lessee.
173.Licensee or lessee ceasing to be national of Pakistan. -
(1) If a licensee or a lessee ceases to be a national of Pakistan or if a company ceases to be incorporated in
Pakistan, he shall within a period of one month inform the Licensing Authority and apply to him for
its consent to assignment of the rights granted by the licence or the lease under these rules.
(2) In the event of the licensee or the lessee failing to obtain such consent, the Licensing Authority may
without prejudice to any obligation or liability imposed by, or incurred under these rules, revoke the
licence or the lease.
174.Unauthorized mining. -
(1) If any person starts prospecting or mining any mineral outside the area granted to him under a licence
or a lease or in any area for which he has not obtained a licence or a lease or if any person obstructs
free access of a licensee or a lessee to the licensed or leased area or directly or indirectly tries to interfere
with the prospecting or mining operations by a licensee or a lessee, he shall be punishable by a court of
competent jurisdiction, with imprisonment for a term which may extend to three years or with fine upto
Rs.50,000 or with both.
(2) Notwithstanding anything contained in sub-rule (1), the Licensing Authority shall have the power to
stop unauthorized work in such manner as it may deem fit and recover in addition to the penalty, the
pit-mouth value of the mineral so excavated from the person responsible for such unauthorised work.
175.Registration of Surveyors. -
(1) The Licensing Authority shall register and maintain a list of suitably qualified Mine Surveyors who, in
its opinion, are competent to carry out boundary demarcation, survey both underground and above-
ground and to prepare plans as are required under these rules on the rates of fee fixed by the Licensing
Authority from time to time:

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 66 ~

Provided that the Licensing Authority may register such Mine Surveyors initially for a period of 5 years on
the payment of fee and further renew it in the manner prescribed by it.
(2) A boundary demarcation certificate required under rule 147 shall be accepted by the Licensing Authority
only if the demarcation has been carried out by a registered Mine Surveyor and the prescribed certificate
is signed by him.
(3) If at any time the Licensing Authority has reasons to believe that the registered Surveyor has committed
gross negligence or misconduct in the discharge of his duty under these rules, it may impose a penalty
under rule 177 and may also, subject to notice, cancel the registration of the Surveyor:
Provided that before such cancellation, the mining surveyor shall be given an opportunity to explain his
position and shall be heard in person, if he so desires.

(4) A surveyor referred to in sub-rule (1) shall have such qualifications, as may from time to time be
prescribed by the Licensing Authority by Notification.
(5) A surveyor who wishes to be registered under this rule shall make application to the Licensing Authority
and shall also pay such registration fee as is prescribed by it.
176.Persistent violation of rules and conditions. -
If a licensee or a lessee persists in violating any of the terms and conditions of the licence or the lease or the
provisions of these rules, and fails to remedy the violation within such period as may be fixed by the
Licensing Authority, the licence or the lease may, subject to notice be cancelled.
177.Penalties. -
Notwithstanding any other penalty provided by these rules, the Licensing Authority or an officer so
authorized by the Government may impose penalty on a licensee or a lessee for violation of these rules as
notified by the Government from time to time.

178.Power of distress. -
If any dues payable under a licence or a lease are not paid within six months next after the due date, the
Licensing Authority may, subject to notice determine the licence or lease and take possession of the premises
comprised therein.

179.Delivery of mines, etc., in good condition. -

On the expiry, surrender or termination of a licence or a lease, the licensee or the lessee, as the case may be,
shall deliver to the Licensing Authority, the demised premises and all mines, if any, in a proper and workable
state save in respect or any working as to which the Licensing Authority may have earlier sanctioned
abandonment in which case he shall securely plug any bores and fill up or fence any holes or excavations
that he may have made in the land to such extent as the Licensing Authority may require. The lessee or the
licensee shall also to like extent restore the surface of the land and buildings and other structures not
belonging to him which he may have damaged in the course of prospecting or mining.
180.Force majeure. -
Failure on the part of a licensee or a lessee to fulfill any of the terms and conditions of these rules shall not
give the Licensing Authority or the Government any claim against the licensee or the lessee or be deemed
a breach of the condition of the licence or the lease in so far as such failure arises from force majeure.

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 67 ~

Explanation: - In this rule, the expression ‘Force Majeure’ means the act of God, war, insurrection, riot,
civil common, tide, storm, tidal, wave, flood, lightening, fire, earthquake and any other happening which the
licensee or the lessee could not reasonably prevent or control.
181. Blacklisting. -
(1) A person, a firm or a company may be blacklisted by the Licensing Authority on account of serious and
repeated violations of these rules.
(2) The licensee or lessee held by such person, firm or company shall stand terminated and such person,
firm, or company shall be debarred from obtaining any further concession.
(3) In case such person or any partner of such firm or a Director of such company forms a new firm or
becomes a Director of another company it shall render such other firm or company ineligible to receive
a mining concession.
182.Establishment of check posts. -
(1) The Licensing Authority may, for the purpose of verification or collection of royalty on minerals
despatched from the licensed or leased areas, establish check posts at suitable places, authorize any
official to check the mineral in transit and take such other measures with regard to recovery of royalty
as it may deem fit.
(2) Notwithstanding the provision of rule 141 the Licensing Authority may order the collection of royalty
on minerals despatched from the licensed or leased area or areas, as the case may be, through sealed
tenders or open auction on the terms and conditions determined by it.
183.Forfeiture of plants etc. -
If any machinery, building structure, mineral or other property belonging to the licensee or the lessee is not
removed by him from the licensed or leased area within six months after the date of expiry or determination
of the licence or the lease, the Licensing Authority may enter upon the said land, take possession of all the
machinery, building structures, mineral or any other property belonging to the licensee or the lessee and
may dispose it off in any manner as it may deem fit.

184.Unit development and beneficiation of the minerals. -

The Licensing Authority shall have the right to require the licensee or the lessee to:

a. merge his uneconomic holding under a licence or a lease with the holding of another licensee
or lessee, as the case may be, for the purpose of joint exploitation on the terms and conditions
to be mutually decided by the licensees or the lessees and in case of disagreement as the
Licensing Authority may decide; and
b. grade, beneficiate, refine or concentrate the mineral to a marketable standard.
185.Appeal. -
(1) 63[Incase of small scales mining, if a person is aggrieved by an order of the Licensing Authority passed
under these rules he may, within thirty days of the communication of the impugned order and payment
of such fee as may, from time to time, be prescribed by the Government, prefer an appeal to the
Director General, Mines & Minerals, Punjab.

63
Rule 185 substituted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 68 ~

(2) The Director General, Mines & Minerals, Punjab may, pending the decision of the appeal grant a stay
order;
Provided that an application for stay order in respect of Government dues shall be accompanied by pay
order of 10% of the disputed amount in favour of the Director General, Mines & Minerals, Punjab in
his official capacity failing which the application shall stand dismissed.

(3) If the appeal in which a stay order had been granted is finally rejected and the Director General, Mines
& Minerals, Punjab is of the view that the appeal was preferred on frivolous grounds or the stay order
was obtained by deceit or fraud on the part of the appellant, it may, while deciding the appeal, impose
a penalty on the appellant up to 10% of the bid money or the disputed amount, as the case may be.
(4) The amount deposited under sub rule (2) shall be adjusted towards the penalty imposed under sub rule
(3) and the remaining amount, if any, may be adjusted towards the satisfaction of the Government dues
and the balance, if any, shall be refunded to the appellant.

***185. Appeal. - (1) If a person is aggrieved by an order of the Licensing Authority passed under these rules, he may,
within thirty days of the communication of the impugned order and payment of such, fee as may from time to time be
prescribed by the Government, prefer an appeal to the Government in the appropriate department.

(2) The decision of the Government on such appeal shall be final.

(3) The Government, while hearing the appeal under sub-rule (1) may, if it so considers necessary in the interest of justice,
grant a stay order:
Provided that no such order shall be passed in respect of Government dues unless the appellant deposits 25% of the disputed
amount with the Licensing Authority.
(4) If the appeal in which a stay order had been granted is finally rejected and the Appellate Authority is of the view that
the appeal was preferred on frivolous grounds or the stay order was obtained by deceit or fraud on the part of the appellant,
it may while deciding the appeal, impose a penalty on the appellant upto 5% of the disputed amount.

(5) The amount deposited under sub-rule (3) would first be adjusted towards the penalty imposed under sub-rule (4). The
remaining amount, if any, may be adjusted towards the satisfaction of the Government dues, and the balance, if any, may
be refunded to the appellant. ***]
64[185-A Revision. -
(1) Any person aggrieved by an order of the Director General, Mines & Minerals, Punjab may, on payment
of such fee as may be prescribed by the Government, file a revision petition with the 65[Secretary]
within a period of thirty days from the communication to him of the impugned order.
Provided that the 66[Secretary] may condone the delay in filing the revision petition upto two months in
deserving cases.

64
Rule 185-A inserted by substituting earlier rule vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
65
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
66
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 69 ~

(2) The 67[Secretary] may, at any time, call for the record of the any proceedings under these rules to
examine the validity and legality of the order or action and may pass such orders as it may deem
necessary.
(3) The 68[Secretary] may pending the decision of revision petition grant a stay order;
Provided that an application for stay order in respect of Government dues shall be accompanied by pay
order of 10% of the disputed amount in favour of the Director General, Mines & Minerals, Punjab in his
official capacity failing which the application shall stand dismissed.

***185-A. Revision. - The Government may, at any time, call for the record or proceedings under these rules to
examine the validity and legality of any action and may pass such orders as it may deem necessary:
Provided that if a person is to be adversely affected no such order shall be passed without giving that person an opportunity
of being heard. ***]

186.Outstanding dues payable even after expiry of a licence or lease. -

On the surrender, expiry or determination of a licence or la lease, the licensee or the lessee, as the case may
be, shall be responsible for payment of all outstanding dues and other charges which, in the event of non-
payment, shall be recoverable as arrears of land revenue

187.69[Grant of mineral concessions through bidding.-

(4) The minerals notified by the Secretary shall be granted as prospecting license and mining lease through
competitive bidding or sealed tenders.
(5) The terms and conditions of competitive bidding or sealed tenders under sub-rule (1) shall be notified
by the Secretary.
(6) The viable areas over the minerals notified under sub- rule (1) shall be prepared and approved by the
Technical Expert Committees as is referred to in rule 3- A.
(7) If an area under an expired, terminated or cancelled prospecting license or mining lease for a mineral
other than notified under sub-rule (1) is to be re-granted, its viability shall be subject to the preparation
and approval of Technical Expert Committee as is referred to in rule 3- A
187. 70[Auction of area with proved mineral reserves. -

(1) Where a mineral is exposed to surface and does not require exploration and the magnitude of investment required for
exploration, in the opinion of the 71[Secretary], is low, the 72[Secretary] may declare the mineral as 'proven mineral'
(2) If a mineral is declared as proven mineral under sub-rule (1) or the license or lease of an area containing proven mineral
reserves is cancelled, the Licensing Authority may lease out the area by inviting sealed tenders on such terms and conditions
as the Licensing Authority may determine
(3) If an area does not fetch a reasonable bid in five consecutive tenders or auctions, the Licensing Authority may delete the
areas from the list of tenders or auction.

67
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
68
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
69
Rule 187 substituted vide notification No. SOT (M&MD)8-15/1990(Vol-V) dated 06.01.2023
70
Rule 187 inserted by substituting earlier rule vide notification No. SOT(M&M) 3-4/2012 dated 20.03.2013
71
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
72
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 70 ~

Explanation: The entire areas covered by a previous license or lease shall be treated as the area containing proven mineral,
if the ex-licensee or lessee has reported production of the mineral through mining or has proved the area through drilling of
borehole or boreholes.]

***187. Auction of area with proved mineral reserves. - In case of cancellation of licence or lease in respect of an
area containing proved mineral reserves the Licensing Authority may lease out the area by inviting sealed tenders on such terms
and conditions as may be prescribed by it:
Provided that if an area does not fetch a reasonable bid in five consecutive tenders or auctions the area may be deleted from the
list of tender or auction.
Explanation. The entire area covered by a previous license or a lease shall be treated as proved, in case the ex-licensee or
lessee had reported production of the mineral through mining or proved the area through drilling of borehole or boreholes, as the
case may be.***]

188.Membership of an association. -
The Licensing Authority may require a licensee or a lessee to become a member of an association recognized
by it as representing the interests of the Private Sector or Mining Industry as a whole.
189.Constitution of Board. -
Government may, by a notification constitute a Board comprising official and non-official members and
assign the functions and duties regarding the development of mining areas, provisions of infrastructure
facilities and other ancillary matters connected therewith.

190.Exemption. -
The Government may, by notification declare that any area or mineral or any class or description thereof
shall be exempted from all or any of the provisions of these rules or that such provisions shall apply thereto
with such modifications or subject to such conditions as may be specified in the order.

PART – 4 MINOR MINERALS

191. Mining of Minor Minerals. -
There shall be no mining of minor minerals except under a lease granted in accordance with these rules.
Notwithstanding anything contained in these rules a lease for minor minerals to a Government Department
or a public sector organization and for limestone and dolomite to a large size Industrial Undertaking
manufacturing cement or sodium carbonate or sodium bicarbonate or other product as may be specified by
the Government, shall be granted and governed by rules relating to 73[Large and] Small Scale Mining under
these rules.
192.Period of Lease. -
74[The Government shall, through notification, specify the period of a lease for minor minerals, not
exceeding three years

***192. Period of Lease. - The period of a lease shall not exceed five years. ***]

73
Inserted vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
74
Rule 192 inserted by substituting the earlier rule vide notification No. SOT(M&M)3-1/15.VOL(II) dated 19.01.2016

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 71 ~

193.Mode of grant. -
A lease shall be granted on "as is, where is basis" through open auction conducting by a committee
constituted under these rules. The area granted under a mining lease shall not be substituted in any case.
194.Constitution of an Auction Committee. -
(1) Government may, by notification, constitute an Auction Committee in each District, to conduct auction
of leases for minor minerals.
(2) An officer in BS-17 or above of the Directorate General, Mines and Minerals, Punjab shall act as
Secretary of the Auction Committee, hereinafter called "Secretary".
(3) Three members including the Chairman, or his authorized representative shall constitute the quorum
of the Committee.
195.Schedule of Auction. -
The Secretary shall, for the purpose of general information, cause to be prepared and maintained a schedule,
alongwith necessary plans based on Survey of Pakistan maps of the area in a district where minor minerals
are situated and shall also cause a tentative programme for auction formulated and maintained in his office.
75[195-A Schedule of rates. -
(1) The Government may, by notification, fix the schedule of rates for minor minerals in a District.
(2) A lessee who contravenes or fails to comply with the schedule of rates for minor minerals shall be
punishable with imprisonment which may extend to ten days or with fine which may extend to fifty
thousand rupees or with both.
(3) Notwithstanding anything contained in sub-rule (2), the licensing authority may also proceed to cancel
the mining lease in accordance with rules.]
196.Shape of the area. -
Each area in respect of which a lease is granted shall, as far as practicable, be in a compact shape and shall
be identified by well-marked permanent physical boundaries or by straight lines.

197.Size of the area. -

No lease shall be granted in respect of an area exceeding 500 acres; provided that a lease for gravel or
ordinary sand may be granted for larger area with prior permission of the 76[Secretary].
77[197-A Reserved price. -
(1) The Special Experts Committee, as notified by the Government shall determine the reserved price of
lease before auction of a block or zone of minor minerals.
(2) The Special Experts Committee shall consider the following factors while determining the reserved
price of a block or zone of minor minerals: -
a. geological survey, location of the block and assessment of mineral in the blocks or zones;
c. quality of the mineral in the blocks or zones;
d. availability of access road to the blocks or zones;
e. accessibility to the market and consumption of the mineral in the blocks or zones;

75
“Rule 195–A” inserted vide notification No. SOT (M&M)2-69/2009 dated 28.01.2010
76
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.20221
77
Rule 197-A was inserted vide notification No. SOT(M&M)3-1/15.VOL(II) dated 19.01.2016

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 72 ~

f. average excavated quantity of mineral from the block or zone during the last five years;
g. previous bidding history of the blocks or zones;
h. future potential for excavation from the blocks or zones; and
i. any unique factor at the site of the blocks or zones relevant for determining the reserved price.]
198.Public notice of Auction. -
For the general information of the public, the Licensing Authority shall, through a public notice, advertise
at least 15 days prior to the date of auction:
i. the location of the area in respect of which the lease is proposed to be granted.
ii. the details of the auction programme specifying the date, time and place where the
auction is to take place; and
iii. the terms and conditions of the auction
199.Registration of applicant. -
(1) A person desirous of taking part in an auction shall submit, by hand, an application complete in all
respects to the Secretary or to an officer authorised by him in this behalf in Form as may be prescribed
by the Licensing Authority, at least one day prior to the auction.
(2) Every application under sub-rule (1) shall be accompanied by: -
i. earnest money as prescribed by the Government; and
ii. a copy of:
a. the National Identity Card of the applicant;
b. income tax registration certificate;
c. the duly registered partnership deed where the applicant is a partnership firm;
and
d. the Articles and Memorandum of Association alongwith evidence of paid up
capital, if the applicant is a company.
(3) If an application is not submitted in accordance with provisions of sub-rules (1) and (2) it shall be
rejected, and the applicant shall not be eligible to take part in the auction.
200. Acknowledgement of applications. -
The officer receiving the application shall record thereon the date and time of its receipt and deliver to the
applicant a registration slip stating the date and time of the auction.

201.Powers to accept or reject a bid. -

The Licensing Authority shall have the discretion to accept or reject the highest bid received in an auction
without assigning any reason.
202. Refund of earnest money. -
The earnest money deposited under rule 199 may be refunded after the auction except to highest bidder
whose earnest money shall be refunded only after acceptance or rejection of the bid by the Licensing
Authority:

Provided that the earnest money deposited by the highest bidder shall be forfeited if he fails to deposit the
required part of the bid at the time of auction.

203. Payment of bid money. -

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 73 ~

The highest bidder shall deposit the balance of the bid money in the manner and within the time
prescribed by the 78[Secretary] failing which the earnest money shall stand forfeited and the next highest
bid may be treated as the highest bid.
204. Refund of bid money. -
In case the highest bid is rejected by the Licensing Authority, the bid money deposited by the bidder shall
be refunded.
205. Security deposit. -
(1) 79[The highest bidder shall, with fifteen days from the date of the issuance of the letter of approval of
the bid, deposit fifteen percent of the bid money as security in accordance with the directions of the
Licensing Authority.
(2) If the highest bidder fails to deposit the security within the time prescribed under sub-rule (1), the
Licensing Authority shall reject the bid.
(3) On rejection of the bid, the Licensing Authority shall forfeit the following amounts: -
a. bid money already deposited;
b. earnest money already deposited; and
c. any other amount deposited by the bidder pursuant to the terms and conditions of the auction.
(4) If a bid is rejected under sub-rule (2), the Licensing Authority may treat the next highest bidder as the
highest bidder for the award of lease.
(5) 80[[On successful completion of the period of lease, the Licensing Authority shall order the refund of

the security deposit, after adjustment of the amount, if any, payable by the lessee.

***(5) Subject to the adjustment of any amount due, the Licensing Authority shall return the security deposit to the lessee on
successful completion of the lease period***]]

***205. Security deposit. - (1) On approval of the bid, the highest bidder shall deposit 25% of the bid money as
security within a period of fifteen days from the date of issue of the letter of approval in the manner prescribed by the Licensing
Authority.

(2) If the highest bidder fails to deposit the security amount within the time limit given under sub rule (1), the bid money and
the earnest money already deposited by him shall be forfeited, his bid rejected and next highest bid may be treated as the
highest bid.

(3) On the expiry or termination of the lease, as the case may be, the security deposit shall be refunded to the lessee after
making such deductions on account of outstanding dues, compensation for surface damage, penalty or otherwise as the
Licensing Authority may order. ***]

206. Grant of Lease. -

(1) After the security deposit is made the Secretary shall issue an allotment letter whereupon the lease shall
stand granted to the highest bidder.

78
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
79
Rule 205 inserted by substituting the earlier rule vide notification No. SOT(M&M)3-1/15.VOL(II) dated 19.01.2016
80
Sub rule (5) inserted by substituting the earlier sub rule (5) vide notification No. SOT(M&M)3-1/2015 dated 06.06.2018

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 74 ~

(2) After the security deposit is made the Secretary shall issue an allotment letter whereupon the lease shall
stand granted to the highest bidder.
207. Payment of instalments. -
(1) The lessee shall pay the instalments, if any, of the bid money in advance on the dates stated in the
allotment letter and submit the original Treasury Challan to the Secretary.
(2) 81[In case of default in the payment of an installment by the due date, the Licensing Authority may,
subject to notice and after cancel the lease, resume the area under the lease and forfeit the amount of
security deposited by the lessee.
***(2) In case the Lessee fails to pay any instalment by the due date, the Licensing Authority may cancel the lease and
through its agent resume the possession of the area. ***]

(3) 82[***If
the lease is cancelled under sub-rule (2), the Licensing Authority shall: -
a. forfeit the amount of security deposited by the lessee; and
d. blacklist the lessee for future grant of any lease under these rules.***]
83[207-A Maximum limit of leases. -
The 84[Secretary] may fix the maximum number of leases for different minerals in an area or district on the
basis of extent of area, number of blocks, production of mineral and market share of an individual, firm or
company.]
85[207-B Necessary production. -
(1) The Licensing Authority shall determine the necessary or appropriate level of production which the
lessee shall be required to maintain during the subsistence of the lease.
(2) If the lessee fails to maintain the necessary or appropriate level of production as mentioned in the
subrule (1), the Licensing Authority may cancel the lease after providing the lessee an opportunity of
hearing.]
208. Surface rent. -
(1) A lessee shall pay, for all Government land which he may use or occupy superficially for the purpose
of the operations conducted under the lease, a surface rent at the rate assessable under the Revenue
Law or rules applicable in the district in which the land is situated:
Provided that if no such rent is assessable under the existing law, the rent may be fixed by the Licensing
Authority.

(2) If the land belongs to a private person, a lessee shall pay surface rent to the owner of the land actually
used or occupied superficially at such rate and in such manner as may be mutually agreed upon between
the lessee and the landowner and in case of disagreement between them, at such rate and in such manner
as may be determined by the Licensing Authority whose decision shall be final.
209. Acquisition of land. -

81
Sub rule (2) inserted by substituting the earlier sub rule (2) vide notification No. SOT(M&M)3-1/2015 dated 06.06.2018
82
Sub rule (3) inserted vide notification No. SOT(M&M)3-1/15.VOL(II) dated 19.01.2016, However sub rule (3) omitted vide notification No.
SOT(M&M)3-1/2015 dated 06.06.2018
83
Rule 207-A inserted vide notification No. SOT(M&M)3-1/15.VOL(II) dated 19.01.2016
84
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
85
Rule 207-B inserted vide notification No. SOT(M&M)3-1/15.VOL(II) dated 19.01.2016

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 75 ~

If, in the opinion of the Licensing Authority, it is necessary to acquire land to provide access to the leased
area, it may acquire it under the Land Acquisition Act, 1894.
210.Compensation. -
A lessee shall pay such compensation as may be assessed by the authority concerned in accordance with law
for the time being in force for such 86[loss], which may be caused as a result of the operations carried on
by him under the lease and shall indemnify the Licensing Authority or any officer working on its behalf
against all claims which may, be made by third parties in respect of any such damage, injury or disturbance
and in case of dispute the matter shall be referred to the Licensing Authority, whose decision shall be final:

Provided that before proceeding under this rule, the Licensing Authority shall give the 87[parties]

reasonable opportunity of being heard.

211. Operation in the reserved and protected forests. -

(1) All operations conducted under these rules within a reserved or protected forest shall be subject to such
conditions as the Licensing Authority may by a general or a special order, prescribe.
(2) It shall be a condition of every lease granted under these rules that before the commencement of mining
operations within a reserved or protected forest, a notice shall be given to the Forest Officer concerned
of the intention to commence operations.
212.Demarcation of area. -
(1) The lessee at his own expense shall, within fifteen days of issue of allotment letter, cause the granted
area demarcated on ground according to the survey data and erect and maintain at all times
correct/permanent boundary marks and pillars standing not less than 1 meter above the surface of the
ground and being not less than ½ meter square or in diameter at the base at every angle or corner of
boundary line in case, the lessee fails to erect or maintain the boundary pillar the Licensing Authority
or its authorized agent may impose penalty at such rate as prescribed by Government
(2) The Licensing Authority may demarcate the area officially on payment of such fee by the lessee as
prescribed by the Government.
(3) Any boundary dispute, in respect of the leased area, shall be referred to the Licensing Authority, whose
decision shall be final.
213.No work within 100 meters from any railway line etc. -
A lessee shall not carry on or permit to be carried on any mining operation at or upto any point within a
distance of 100 meters from any Railways line, water reservoir, power line, gas pipeline or other public
works, or building or place of archaeological importance except with the prior permission, in writing, of the
Licensing Authority and in accordance with such conditions as it may impose.

214.Inspection. -
A lessee shall provide the Licensing Authority or an officer authorized by it in this behalf, all reasonable
facilities to enter upon the leased area for purpose of inspection, survey, measurement or inquiry about any
matter relating to the lease and shall make available all records pertaining thereto for examination.
215.Access to other lessees. -

86
The word “loss” inserted by substituting the word “laws” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
87
The word “parties” inserted by substituting the word “parities” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 76 ~

(1) A lessee shall allow lease holders of any area adjoining or accessible through the land held by the lessee
all reasonable facilities of access thereto on the terms and conditions as may be determined by the
Licensing Authority.
(2) Failure on the part of the lessee to comply with the terms and conditions determined by the Licensing
Authority under sub-rule (1) shall render him liable to penalty as may be prescribed by the Government.
216.Change in the constitution of the lessee. -
A lessee shall not make any change in its constitution without prior consent in writing of the Licensing
Authority.
217.Exclusion of lands for public purposes. -
If an area or a portion thereof held under a lease is required at any time by the Government for any public
purpose, the Licensing Authority shall have the powers to withdraw such area without notice and the bid
money shall be reduced proportionately.
218.Unauthorized mining. -
(1) If any person carries out mining of minor minerals outside the area granted to him under a lease or in
any area for which he has not obtained a lease or obstructs free access of a lessee to the leased area or
directly or indirectly tries to interfere with the mining operation by a lessee, he shall be punishable by a
court of competent jurisdiction, with imprisonment for a term which may extend to three years or with
fine not exceeding Rs.50,000/- or with both.
(2) Notwithstanding sub-rule (1) the Licensing Authority shall have the power to stop unauthorized work
in such manner as it may deem fit and recover upto three times the sale price of mineral so excavated
from the person responsible for such unauthorized work:
Provided that before proceeding, the person shall be given a reasonable opportunity of being heard.

219.88[Right of surrender. -
(1) If the lessee dies during the subsisting lease, all of his legal heirs may surrender the lease after giving
two months prior notice to the Licensing Authority.
(2) The legal heirs of a deceased lessee may retain the lease till the expiry of the lease period or notice
mentioned under sub-rule (1), whichever is earlier.
(3) Subject to the adjustment of the amounts due, the Licensing Authority shall refund the security deposit
or any other amount of the lessee to his legal heirs in case of surrender or expiry of lease of the deceased
lessee.

***219. Right of surrender. - A lessee may surrender the mining lease at any time after four months from the date of
its grant by giving either two months prior notice in writing to the Licensing Authority or pay propionate bid money in lieu
thereof:
Provided that in case of partial surrender of the lease area, the lessee shall not be entitled to any reduction in the bid money.
***]

220. Assignment. -

88
Rule 219 inserted by substituting the earlier rule vide Notification No. SOT(M&M) 3-1/15.VOL(II) dated 19.01.2016

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 77 ~

A lessee shall neither transfer any right of interest under the lease, nor part with the possession of the area
or any part thereof, without prior permission, in writing, of the Licensing Authority.
221.Method of making application for assignment. -
(1) An application for assignment shall be submitted at 1east three months before the expiry of lease and
shall be accompanied by the fee as prescribed by the Government.
(2) The application shall be presented in person and shall be signed by both the assignee and the assignor
before the Licensing Authority or an officer authorized by it in this behalf.
(3) The security deposited by the assignor shall be refunded after receiving fresh security deposit from the
assignee on approval of the assignment by the Licensing Authority
222. Refund of proportionate bid money. -
In case a lessee fails to assume possession of the area or work therein due to circumstances beyond his
control and informs within a period of fifteen days from the date he first faced the hindrance in this respect
and proves it to the satisfaction of the Licensing Authority, it may refund the proportionate bid money to
that extent:

Provided that no relief under this rule shall be admissible due to rains or floods in the rivers, streams or of
dangerous quarry operations.
223. Removal of buildings, structures etc. on expiry of lease. -
(1) On expiry or termination of a lease, the lessee shall hand over the possession of the area to the Licensing
Authority or its authorized representative clear of all buildings, structures, machinery, excavated
minerals and other things.
(2) In case such buildings, structures, machinery, minerals or other things are not removed within one
month from the date of expiry or termination of lease, it shall vest in the Licensing Authority without
any right of the lessee for compensation and the Licensing Authority may dispose them off in such
manner as it may deem fit.
224. Violation of rules or lease agreement. -
(1) Except as otherwise provided in these rules, in case of violation or breach of any rule or any term or
condition of the grant of lease, the Licensing Authority shall give a notice to the lessee providing him
with an opportunity to remedy the breach within the time specified in the notice
(2) If the lessee fails to remedy such violation or breach within the specified time, the Licensing Authority
may terminate the lease and forfeit the bid money already paid by the lessee.

225. Erection of buildings, etc. -

Nobody other than a lessee shall erect any building, structure, machinery or plant within a distance of 100
meters from the foot of a hill in the leased area except with the prior permission, in writing, of the Licensing
Authority.

226. Service of letters and notices. -

Any letter or notice issued to the lessee or to any person at his postal address by registered post shall, for
purpose of these rules, be considered sufficient service.
227. Safe working. -
(1) If, on inspection or otherwise, the Licensing Authority is of the opinion that a lessee is working in a
manner contrary to the conservation of mineral property or safety of workers or other people, the

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 78 ~

Licensing Authority may require the lessee, in writing, to remove the defects or amend the method of
mining within a period, not exceeding two months, as is determined by the Licensing Authority.
(2) If the lessee fails to comply with the instructions within the specified period, the Licensing Authority
shall have the power to stop the work of extraction of minerals in whole or in any part of the area
demised under the lease till such time that the defects are removed to the satisfaction of the Licensing
Authority and the lessee shall not be entitled to any relief whatsoever on this account.
(3) If the defects are not removed or the method of mining is not amended to the satisfaction of the
Licensing Authority within two months from the date of stoppage of work, the lease shall be cancelled
and the bid money already paid, shall be forfeited.
228. Re-auction of leased area. -
A leased area may be re-auctioned within three months before its expiry but if the auction or the grant of
lease is delayed due to certain reasons, the Licensing Authority may extend the period of previous lease
upto the date of next grant on payment of proportionate bid money in advance for the extended period:
Provided that any extension beyond a period of six months on this account shall be subject to the
approval of Director General, Mines and Minerals, Punjab.

Provided further that extension beyond a total period of one year shall be subject to the approval of the
89[Secretary].

229. Issuance of despatch slips. -

(1) The lessee shall not despatch any mineral from the leased-out area without issuing a despatch slip duly
signed by him or his authorized representative in the form prescribed by the Licensing Authority.
(2) If a lessee fails to issue proper despatch slips, the Licensing Authority or an officer authorized by it in
this behalf may impose a penalty as may be prescribed by the Government.
(3) If a lessee commits repeated violations of this rule, the Licensing Authority may terminate the lease and
forfeit the installment or bid money already paid.
230. Mode of payment. -
All amounts payable under these rules shall be deposited into a Government Treasury or into any Bank
authorized by the Government for the purpose under the Head of Account specified by the Government.
231.Taking over possession of area. -
(1) On expiry or earlier termination of a lease, the possession of the area shall be assumed by the Licensing
Authority or its authorized representative and entry in this respect shall be made in the record of the
Licensing Authority.
(2) Possession of the area shall be considered as validly assumed if entry to this effect is available in the
record of the Secretary or the Licensing Authority and an intimation has been sent to the concerned
revenue officer of the district.
232. Outstanding dues payable even after expiry of a lease. -
(1) The lessee shall be responsible for payment of all outstanding dues and other charges even after the
surrender, expiry or termination of the lease.

89
The word “Secretary” inserted by substituting the word “ Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
05.07.2021

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 79 ~

(2) Possession of the area shall be considered as validly assumed if entry to this effect is available in the
record of the Secretary or the Licensing Authority and an intimation has been sent to the concerned
revenue officer of the district.
233. Blacklisting. -
(1) 90[If
a lessee violates any of the rules, the Licensing Authority shall, by notice, warn him fully to observe
the rules but, if the lessee again violates any of the rules, the Licensing Authority may, subject to notice
and after affording him opportunity of hearing, black-list the lessee for a period not exceeding five years
but which shall not be less than three years; and, on such black-listing, the lessee shall stand terminated
and the Licensing Authority shall resume the area under the lease.
(2) A person black-listed under sub-rule (1) shall not participate in any public auction during the period he
is blacklisted under this rule.

***233. Blacklisting. - (1) A person may be blacklisted by the Licensing Authority on account of serious or repeated
violations of these rules.
The lease held by such person shall stand terminated and he shall be debarred from taking part in all future auctions.
***]

234. Appeal. -
(1) 91[In
case of minor minerals, if] a person is aggrieved by an order of the Licensing Authority passed
under these rules, he may, within thirty days of the communication of the impugned order and on
payment of such fee as may be prescribed by the Government, prefer an appeal to the Director General,
Mines and Minerals, Punjab.
(2) The Director General, Mines and Minerals, Punjab may, pending the decision of the appeal, grant a stay
order:
Provided that an application for stay order in respect of Government dues shall be accompanied by a
pay order of one fourth of the disputed amount in favour of the Director General, Mines and Minerals,
Punjab in his official capacity, failing which the application shall stand dismissed.
(3) If the appeal in which a stay order had been granted is finally rejected and the Director General, Mines
and Minerals, Punjab is of the view that the appeal was preferred on frivolous grounds or the stay order
was obtained by deceit or fraud on the part of the appellant, it may, while deciding the appeal, impose
a penalty on the appellant upto 10% of the bid money or the disputed amount, as the case may be.
(4) The amount deposited under sub-rule (2) shall first be adjusted towards the penalty imposed under sub-
rule (3) and the remaining amount, if any, may be adjusted towards the satisfaction of the Government
dues, and the balance security shall be refunded to the appellant.
235. Revision. -
(1) Any person aggrieved by an order of the Director General, Mines and Minerals, Punjab may on payment
of such fee as prescribed by the Government file a revision petition with the 92[Secretary] within a
period of 30 days from the communication to him of the impugned order:

90
Rule 233 inserted by substituting the earlier rule vide Notification No.SOT(M&M)3-1/2005 dated 06.06.2018
91
Inserted by omitting the word “if” vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003
92
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 80 ~

Provided that the 93[Secretary] may in its discretion condone the delay in filing the revision petition
upto two months in deserving cases.
(2) The 94[Secretary] may at any time call for the record of any proceedings under these rules to examine
the validity and the legality of the order or action and may pass such orders as it may deem necessary.
(3) The 95[Secretary] may pending the decision of revision petition grant a stay order.
Provided that an application for stay order in respect of Government dues shall be accompanied by a
pay order of one fourth of the disputed amount in favour of the Director General, Mines and Minerals,
Punjab in his official capacity, failing which application shall stand dismissed.

236. Bar of jurisdiction. -

(1) Notwithstanding anything provided in any other law for the time being in force no court or other
authority whatsoever shall have jurisdiction to entertain or to adjudicate upon any matter which the
96[Secretary], the Director General, Mines and Minerals, Punjab or the Licensing Authority or any

other person is empowered by or under these rules, to dispose of or to determine.

(2) The validity of anything done or an order passed by the 97[Secretary], the Licensing Authority, the
Director General, Mines and Minerals or any other person empowered by or under these rules shall not
be called in question in any manner whatsoever before or by any court or other authority whatsoever.
(3) All proceedings in respect of any matter referred to in sub-rules (1) and (2) which may be pending
before such court or other authority shall abate at once.

PART-5 REPEALS AND SAVINGS

237. Repeals. -
The following laws are hereby repealed
98[***(i) The Punjab Mining Concession Rules, 1960 ***]

i. The Punjab Mining Concession Rules, 1986.

ii. The Punjab Minor Minerals Concession Rules, 1990.
238. Savings. -
Any prospecting licence or mineral title granted, renewed or saved under any law for the time being in
force and existing immediately before the coming into force of these rules shall be deemed to have been
granted, renewed or saved for the subsisting period in accordance with the provisions of these rules as if
these rules were in force at the time such prospecting licence or mineral title was granted, renewed or
saved and shall be treated accordingly.

93
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
94
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
95
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
96
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
97
The word “Secretary” inserted by substituting the word “Government” vide notification No. SOT(M&M)3-1/2015(Vol-II) dated
06.09.2022
98
Clause (i) omitted and clause (ii) & (iii) renumbered as (i) & (ii) vide Notification No. V(I&MD)3-21/95 Vol-III dated 30.04.2003

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
~ 81 ~

THE PUNJAB MINING CONCESSION RULES 2002 (AMENDED UP TO JANUARY 2023)

COMPILED BY: ZAHEER ABBAS, DEPUTY DIRECTOR MINES & MINERALS
SCHEDULE 3
(APPLICABLE TO LARGE SCALE MINING)
GROUPS OF MINERALS

A. CONSTRUCTION AND INDUSTRIAL MINERALS GROUP

Alunite, and lusive-sillimanite-kyanite, anhydrite, aplite, asbestos, barite, beryl, boron

minerals, calcium carbonate, celestite, clay(including bentonite and Fuller's Earth
(Palygorsite and attapulgite), ball clay, halloysite, hectorite, kaolin, refractory clay),
corundum, diatomite, dolomite, epsomite, feldspar emeralds, garnet (for industrial
purposes), graphite, gypsum, heavy mineral sands, ioding minerals, leucoxene, emerald
minerals, limestone and marble, magnesite, mica nepheline syenite, nitrate, olivine, perlite,
phosphate, fossil guano, quartz (for emeralds purposes), picture-stone, potash, pumice,
pyrophylite, salt, sepiolite, silica sand, soapstone, soda-ash and other sodium compounds,
strotianite, sulphur and pynite, talc, vermiculite, wollastonite and any other mineral as
declared by the Government.

B. PRECIOUS STONES GROUP

Diamonds, Emeralds, rubies and sapphires.

C. PRECIOUS METALS GROUP

Gold, silver, platinum, palladium, osmium, rhodium, iridium and ruthenium.

D. SEMI-PRECIOUS STONES GROUP

Amozonite, aventurine, beryl (including aquamarine, heliodor and morganite, but

excluding beryl as a source of beryllium metal or as an industrial mineral), chrysoberyl,
chrysocolla, cordierite, dioptase, dumortierite, garnet, milarite, quartz (including amethyst,
citrine, rock crystal, rose and strawberry quartz, agate, carnelian, chalcedony, chrysoprase,
jasper, moss agate, hyalite, opal, pietersite and tiger's eye), sodalite, topaz, tourmaline and
turquoise.

E. BASE METALS GROUP

Aluminium, antimony, arsenic, beryllium, bismuth, cadmium, caesium, chromium, cobalt,

copper, gallium, geranium, hafnium, indium, iron, lead, manganese, mercury,
molybdenum, nickel, riohium, radium, "Rare Earths" or lanthanides, including the
actinides, scandium and yttrium, rhenium, rubidium, rubidium, selenium, tantalum,
tellurium, thallium, tin, tungsten, vanadium, zinc or zin-conium, but does not include any
such minerals if such mineral is incidentally included in a mineral falling in any other group of
minerals.

NOTE:
The Government may include or exclude any mineral or group of minerals in the above
said groups through Notification as deemed appropriate.