Mines, minerals sector: Minister for introducing reforms

Provincial Minister for Mines & Minerals, Chaudhry Sher Ali Khan has said to increase the revenue and royalty rates of large scale and small scale minerals along with discouraging monopoly factor in the mines leasing sector, important reforms have been ensured with mutual understanding of all the stakeholders.
He stated this while presiding over third meeting of the Cabinet Committee for Mines & Minerals Department in the Committee Room of Board of Revenue.
DG Mines & Minerals Raja Khurram Jehangir said that rectification of reserve prices of various blocks under miner scale and large scale mining along with blocks of limestone under small scale mining to be auctioned in the forthcoming schedule is reviewed with new reserve prices according to their demand and importance after the recommendations of Special Experts Committee. He said that the tenure of leasing of the mines has been shortened from previous ten years to 5 years so as to enable maximum number of people for an open and fair bidding process for investment in the this sector.
He said that out of total amount of Rs Ten million, 8.5 million has been collected as revenue income under leasing of large scale minerals in the FY 2015-16, while an amount of Rs 22.4million is being expected as revenue income in the next fiscal year as a result of the reforms made in the leasing sector. He further said that last year an amount of Rs 24 lakh was collected under application fees and rent of small scale mining whereas according to newly introduced reforms, the said income will increase to a total amount of Rs 24.8 million, next year. Raja Khurram Jehangir said that 142 blocks of different minerals escalated from 26 districts of the province will be auctioned according to the new reserve prices soon, increasing the revenue of the department to a great extent.
Ch Sher Ali Khan said that the mining sector has a great importance in the industrial and financial development of the province and the new reforms in the leasing system will eliminate monopoly of a particular segment, newly reserve prices according to the ground realities and estimation will increase the investment in the mining sector as well. The members of the committee also discussed different proposals to increase in royalty rates for major minerals and also gave proposals for revision of application fee and rents under small scale mining.