Mines-related industry to be recognized as national-priority project

Kathmandu, May 20: The government is to adopt a strategy to categorise the minerals according to their nature and importance, and recognise the mines-related industries as the national priority projects.

According to the recently implemented National Mineral Policy, 2017, high priority will be given to the preservation, promotion and utilisation of minerals.

“Minerals like gold, iron, copper and zinc-lead will be the priority areas for the mines development strategy, and the government will develop necessary infrastructure, such as access road and dedicated electricity line to the promising areas,” read the policy.

Likewise, the industries that produce value added mineral products or produce high-quality minerals would be facilitated with discount in customs duty and would be supported in infrastructure development.

The first ever policy on minerals paves the way for creating database of various mines scattered across the country and were in operation at different period.

According to Director General of the Department of Mines and Geology Rajendra Prasad Khanal, the policy created with the aim of conserving the natural resources and mineral deposits and exploiting them in a sustainable way.

It envisions creating a legal, institutional arrangement and developing a process to develop the mines and mineral sector in a sustainable way so that it can contribute to the economic progress of the country. 

As per the policy, a detailed geological study will be conducted for the mapping of minerals and geological information, and a Mineral Fund will also be created with an aim of carrying out studies on geology and minerals, research and environment protection and development.

 It says that the government will partner with the private sector in establishing industry for the refinement of semi-precious and precious stones, human resource development and training.

Likewise, special discount on customs duty will be provided while importing machines and equipment in extracting and refining minerals.

“There will be a modern central laboratory to manage the geological survey and mineral exploration. Such facilities will be expanded to provincial level if necessary,” said the policy.

It has given special attention to the universities, capacity of the departments at the universities that are related with the mines, minerals and geology will be enhanced.

It also envisions of using modern information and communications technology along with the excavation and extracting technologies, creating other legal instruments required to develop the mines sector, promote Nepalese mineral products in the international market, and involve private sector as well as foreign investors in the development of mines and minerals sector.

The policy has duly identified that because of the lack of relevant policies and legal instruments, sufficient investment, failure to attract the private sector and lack of modern technology and human resource were the hurdles in developing the sector in Nepal.

Nepal had introduced Mines Act, 1956 for the first time while Office of Canals and Geology was established almost 88 years ago which was later converted into Mines Office in 1957.