Govt to scrap mining license of idle companies

Kathmandu, Jan. 3:

The government Tuesday said that it would not renew the license of those mining companies that have been only holding the permit for long but doing nothing.

Minister for Industry Nabindra Raj Joshi at a press meet held at the ministry Tuesday said that the government had been planning to award the licenses to the companies which are technically sound and have a good track record.

"By-laws related to mines and geology have been obstructing the government to make progress in this regard. But, as the Cabinet recently approved the Mines and Minerals By-laws (Fourth Amendment), 1997,  we can now select technically-fit companies to exploit the potential of the mines in the country," said Joshi.

He said that the government would call for a tender from the companies after the amendment to the by-laws is published in the National Gazette.

He remarked that there would be new studies on the existing mines in order to look for additional potential.

Director-general of the Department of Mines and Geology (DMG) Rajendra Prasad Khanal said that the department had completed preliminary exploration over a 15 square-kilometre area of the Dhaubadi iron mines in Nawalparasi district in the current fiscal year.

"We have conducted topo-geological survey over a 202-hectare area and collected 354 samples. After the testing of 63 samples, we found 24.58 per cent iron in them," he said.

He stated that due to lack of drilling equipment and diamond drilling bit, progress was slow at the site.

According to the DMG, preliminary uranium exploration works were completed in Mustang  while geological survey mapping has been completed at the Kurule bronze site in Udayapur, Mahadevsthan magnesite in Dhading and Namatar magnesite in Makwanpur.

Similarly, geological survey is underway in Baitadi, Surkhet, Gorkha, Lamjung, Dhading and Khotang.

Nepal Drugs to operate soon

Meanwhile, preparations are in the final stage to operate Nepal Drugs Company Limited. The government has appointed a general manager and formed a new Board of Directors.

"The regulatory authority, Department of Drug Administration (DDA), has approved the proposal to restart the manufacturing of medicines at the company," said minister Joshi.

He said that the design to manufacture Cetamol tablets and oral rehydration solution (Jeevan Jal) had been finalized, and documents were being prepared to procure the necessary equipment and machines.

After assuming the post of Industry minister, Joshi has given top most priority to run the state-owned sick industries, such as Nepal Drug Company, Hetauda Textile Mill, Butwal Spinning Mills and Birgunj Sugar Factory.

Hetauda Textile Mill is being operated by the government in collaboration with the Nepal Army, Nepal Police and Armed Police Force while Butwal Spinning Mills and other factories will be leased to the private sector.