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The NWFP government is working on preparation of mineral policy with the vision to attract investment, build capacity for acquiring new technology in order to register an increase in mineral production to help poverty reduction and social development in the province.
The draft Mineral Policy NWFP has been prepared in collaboration with Small & Medium Entrepreneurs Development Authority (Smeda). The policy is likely to be announced after passage from the provincial cabinet.
The basic objectives of the draft policy are to explore mineral wealth of the state expeditiously by adopting modern exploration techniques in the remote areas, facilitation in export of minerals having potential and international demand, to give clear and simple objectives and achieve transparency in decision making and devising a labour friendly policy that would also discourage child labour in the mining sector of the province.
The other objectives of the draft policy are including skill development of human resource in the mining and mineral related industry, generate employment opportunities, and encourage corporate merger of small-scale mine operators. The policy also suggests the establishment of a separate mines department and inspectorate, as well as an environment permitting and compliance monitoring unit in the provincial departments of mineral development.
The suggestions given in the draft provincial mineral policy are granting of incentives in the shape of longer lease. It said that for the investment of Rs 20 million and above the tenure of lease should be 20 to 30 years, Rs 15 million to 20 million (15 to 20 years), Rs 10 million to Rs 15 million (10 to 15 years and Rs 5 million to Rs 10 million the lease tenure should be 5 to 10 years.
The draft policy calls for the establishment of Alternate Dispute Resolution (ADR) on the pattern of Pakistan Customs, a committee comprising of the concerned parties and a mediatory third party to resolve any rising dispute without recourse to the court of law.
It suggests that the government may hold exhibitions on regular basis to display the variety of minerals to seek interest from both local and foreign parties.
"The government may consider developing infrastructure facilities like making or maintenance of access to roads, ropeways and power supply to mineral resources receipts or special funds, the draft policy said adding it will bring more mineral potential areas under exploitation and leasing resulting in the socio-economic uplift of remote areas.
Similarly, it called for the allocation of environment protection fund to facilitate the environment friendly policies and compulsory obtaining of a mineral certificate from the Office of the Director General Mines & Mineral (DGMM) before carrying out mineral excavation on any scale.
The draft policy also called for the establishment of a legal cell in DGMM office to facilitate the miners and those interested in this sector about any legal issues involved or that may arise.

Copyright Business Recorder, 2006

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