Criteria for Determination of Fair Surface Rent Added into the KP Minerals Sector Governance Act, 2017

Reform Description 

Categorization of Minerals into Groups with Fixed Surface Rents

Before: Businesses in the mineral sector have to pay excessive surface rents as there was no prescribed surface rent criteria.

After: A fair criteria for charging surface rent has been notified to safeguard businesses in the minerals sector.

Sector  Minerals Sector
Beneficiaries All the Businesses Involved in the Minerals Sector
Jurisdiction/Location  KP
Department  Khyber Pakhtunkhwa Minerals Development Department
Date of Implementation  17-06-2021
Details Difficulty

●      A wide range of different minerals being extracted in the industry, uncertainty in surface rent led to a lack of fairness in the rent actually charged.

●      This meant that some businesses were being charged more than the fair amount, leading to an increase in costs for them.

Analysis ●      Through consultations, it was deemed necessary to create a system by which minerals could be clubbed together in groups and have a surface rent rate prescribed to each of these groups.
Solution  ●      To allow a fair surface rent, a fixed rate was devised for each of the mineral categories.

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