LAHORE: The first-ever mineral policy recently approved by the Punjab government encourages private sector involvement both at the exploration and mining stages for saving public sector money and efficiency, supervising it with a strong institutional arrangement.

`It ensures a modern, innovative, dynamic and private sector driven mineral sector that is environmentally responsible, socially sustainable and safe, and that contributes significantly to the overall economic growth of the country and the province,` said a senior government of ficial.

He said the provincial government had spent its money for the detection and exploration of Chiniot assets. But it could not apply this model everywhere because of resource constraints. Under the policy, the government planned to invite international mining companies and venture capital funds to assess mining assets after indications of potential sites.

The private sector thus engaged would spend its own resources in confirming the presence of any mining asset, its nature and value in financial terms. If confirmed, a second agreement would be made for extraction and marketing of the find.

He said mining blocks would be madeanew. For example raw material for cement would be rationalised while keeping in mind health, safety issues and labour reforms.

According to him, the policy aims at ensuring responsible mineral development that contributes to the optimal level of mineral revenue while respecting the principles of sustainable development. It allows for making mineral sector attractive for both local and foreign investors, creating a highlevel multi-stakeholder Policy Advisory Council headed by the provincial minister to provide strategic policy advice and information-sharing on key sectoral issues and developing other participatory mechanism.

The official said the policy had been made while adopting the best practices followed by the leading mining nations including Australia, South Africa and India.

Under the policy, mineral sector would be linked to the economic development while focusing on safety, health, labour care, social and environmental issues, also introducing a broad-based decision body which at present is missing.

The broad based decision making would be done by the top advisory council. Having experts from private sector, the council would oversee all aspects of mining in the province.

The policy ensures introduction of a strong institutional arrangement and arobust regulatory control. Under it, various steps have already been taken to restructure the mines and mineral department and its attached bodies that include Punjab Mineral Company, Mineral Development Corporation, Chief Inspectorate of Mines, Office of the Commissioner Mines Labour Welfare and Directorate of Mines and Minerals which grants leases.

This was being done under the guidance of an international mineral advisory team which had a vast experience of guiding 13 mining countries in the world, the senior of ficial said.

All laws regulating the mineral and mines sector including the Mineral Act of 1923 were being reviewed for improvement.

The of ficial said the mission of the policy was to make the department an efficient, objective facilitator and a guarantor to the private sector, givingit a stable tenure of leases and protectingits investments. This was so because of the long gestational time from discovery to mining of minerals. Private sector, as per research conducted while making the policy, desired at least 40-year leases. And for that the government would provide a legal framework.

Officials said the policy would push the province towards master land use planning.

At present there is no mention of industrial corridors in the district master plans. Theylacked clarity about the industrial corridors especially in contiguous districts in the Salt Range. The policy emphasised the need for introducing industrial land use planning.

And this would be provided in the law, making it compulsory for all departments concerned to do so.

The policy conceives a balanced distribution of royalty. One part will necessarily be to restore the mined land. Leases in the past were granted on a first come first served basis.

Now, the policy demanded a revision of the terms and conditions of the inactive leases and licenses. It emphasised on small and medium scale mining additions. It also pressed for promotion and value addition of minerals like coal, rock salt, silica and gypsum.

The policy revolved around creating quality assets in the mineral sector, through exploration of natural resources on international standards. `If we fail to do so, no bank will of fer us long term credit for business. That is why the Chiniot assets have been handled on Canadian Standards,` the of ficial said.

He said the policy provided for a research and development fund through which equipment especially drilling rigs, and other diagnostic tools would be purchased.

The of ficial said a cabinet committee had been constituted to oversee implementation of the policy.