Govt to establish gemstone processing industry

Kathmandu, May 11: The government has no intention to open the export of precious and semi-precious stones as raw materials. Gemstones processing plants will be established instead.

The Ministry of Industry, Commerce and Supplies (MoICS), said that the export of gemstones was not in the plan and policies of the government.

The government had imposed a ban on the export of gemstones about five years ago. Miners and exports have been complaining that the embargo had severely impacted their business.

According to the Policy and Programmes for the Fiscal Year 2019/20, the government will promote the export of refined gemstones. "Refinery of precious stone will be established and export of refined gemstones will be promoted," it said.

The government plans to carry out exploration and implementation for the excavation of feasible gold mines in Dailekh district, precious stones and copper in Jajarkot district and uranium in Mustang district.

"Export of raw materials is not beneficial to the country. In order to gain higher returns, only refined precious stones will be promoted," said Yam Kumari Khatiwada, Secretary at the MoICS.

She said that there are various categories of precious stones which can be exported in tons, kilos and carats therefore the country must be aware about the type and price of the exportable goods. "We know the exact quality and price of gemstones after refining."

Khatiwada said that the Ministry had a plan to establish a gemstone processing plant in Surkhet, capital city of Karnali province while the latter has also included it in its Provincial Plan and Policy.

A small gemstone processing centre is in operation there which would be upgraded in to a full-fledged industry.

President of Federation of Nepal Gold Silver Gem and Jewellery Association Ramesh Maharjan said that the inclusion of mining sector development in the policy of government was a welcome step. He supported the embargo on the export of raw gemstones.

"If the gems and jewellery producers get domestic raw materials, the price of jewelries might go down which increases the competitiveness of Nepali products," he said.

Published in The Rising Nepal daily on 12 May 2019.