MINERALS, MINES AND THEIR CONTRIBUTION

All the mineral resources that occur in the country are owned by the state. DMG under the Ministry of Industry is the responsible government authority which is conducting systematic geological mapping and mineral exploration activities in the country since last five decades. In course of time DMG has been successful to identify a number of metallic, nonmetallic/ industrial and fuel mineral deposits/ prospects/ occurrences and prove some economic and sub-economic mineral deposits and also promote few mineral based industries like cement, agrilime, marble, talc, dead burnt magnesite, zinc-lead, coal, gemstones, pottery etc. Few small to medium scale mines of limestone, magnesite, marble, talc, coal, peat, clay, salt, talc, mica, quartz crystals, semiprecious and precious stones, dimension/ paving stones, roofing slates are in operation by the private entrepreneurs after obtaining the licenses from DMG. There are over 29 limestone quarries from which limestone are supplied to cement industries. Six gem mines are in operation and few gem industries, which do cutting and polishing of semiprecious and precious stones from Nepal and abroad are established. Construction aggregates, sand, gravel, dimension stone, decorative stones, paving stones and roofing slates are the other important mineral resources which have high demand for infrastructural development works. Metallic minerals like, iron, copper, lead, zinc, cobalt, nickel, gold, are known from different parts of Nepal but they are not yet mined. Only Two placer gold mining license has been issued to private sector but till this time they did not show any production. A private Company did detail exploration of Thoshe iron deposit in Ramechhap and now in the process of obtaining mining license from DMG. It is envisaged that if the GON give high priority to exploit mineral resources with liberal policy, within next few years time some more industrial minerals, base metals, precious metals, gemstones, coal and petroleum deposits will be proved, a number of mines will be operated and more mineral based industries and petroleum industries will be established in Nepal.

Department of Mines and Geology administrates and fully exercises the Mines and Mineral Act (2042BS) and Regulation (2065BS). Under the existing Rules and Regulations DMG issue both Prospecting and Mining Licenses to the interested investors (national/ international) and regularly inspects and monitors the mining activities carried out by the private lease holders. In FY 2066/67 about 80 mines/ quarries (for 12 different mineral commodities) excluding the licenses issued by District Development Committees (DDC) are in operation. Similarly 451 prospecting licenses for prospection/ exploration of 21 mineral commodities are issued (DMG/ Planning section). In this FY 2066/67 DMG has collected around Rs2,00,00,000.00 as royalty/ revenue from this sector. From petroleum companies the government receives about Rs.2,55,60,000.00/year only from surface rental of lease area (7 blocks), taxes etc. Once the more mines come in operation, mineral industries are established and petroleum is discovered in the country many people will have job opportunity and all these will contribute substantially in national GDP.

6. INVESTMENT OPPORTUNITY IN MINERAL AND MINING SECTORS

 There are ample opportunities for the investors to invest in the commercially viable mineral commodities that deserve investment. Some of the proved economic mineral deposits have been developed and are being used in industries like cement, industrial lime, agriculture lime, dead burnt magnesite, talk (in paper, soap) and marble industries. Some small-scale industries are using local limestone, dolomite, quartz, talc, clay, coal, peat, precious and semiprecious stones, brine water (salt) etc. There is a high demand of construction materials such as aggregate, dimension stones, paving stones, slates, boulders, gravel and sand. Investment in these resources is highly rewarding.