In 1895, the Government of India (British Government) initiated steps to frame legislation for safety of workers. In 1897, first major disaster of subcontinent in mining hit the Kolar Goldfields killing 52 persons and followed soon by the Khost Coal Mine disaster in Baluchistan killing 47 persons. The disaster hastened the process of formulation of safety laws and the first Mines Act was enacted in 1901. For administering the provisions of the Indian Mines Act, 1901, the Government of India (British Government) set up a "Bureau of Mines Inspection" on the January 7, 1902 with headquarters at Calcutta. The name of the organization was changed to Department of Mines in 1904 and its headquarters shifted to Dhanbad in 1908.

With further experience, this Act was superseded by the Indian Mines Act, 1923, which was adopted by the Government of Pakistan in August,1947 as Mines Act, 1923.

Inspectorate of Mines existed since pre-partition and remain working under the Labour & Manpower Department till the implementation of the "National Mineral Policy, 1995" and attached with newly created Mines and Minerals Department with effect from August 1, 2003. The Mines Labour Welfare Organization was also shifted from the Labour & Human Resource Department to the Mines & Minerals Department under the operational control of Chief Inspector of Mines (head of attached department) with effect from December 31, 2003.