Major iron projects remain stalled

Iron mining projects at Dhaubadi, Jhumlabang and Phulchoki fail to gain momentum

 

Kathmandu, Aug. 23

Iron mining initiatives have failed to gain momentum at Dhaubadi in Nawalparasi (East), Jhumlabang in Rukum (East) and Phulchoki in Lalitpur – three large iron deposits in Nepal.

Jhumlabang, located in Bhume Rural Municipality-3 in Rukum (East), has the largest deposits of iron ore which is estimated to be around 200 million tons – almost double that of Dhaubadi in Nawalparasi (East).

The Department of Mines and Geology (DMG) was planning to begin the drilling work in Bhume by the end of 2025, but no progress could be made. The mine is tendered out to Ramesh Steel for 30 years but work is not begun, said Narayan Banskota, Information Officer at the DMG.

"The locals have filed compliants at the National Human Rights Commission, the government and the DMG demanding to halt the work at the site saying that it will damage the livelihood, culture and displace people who have been residing in the area for centuries," he said.

Chairperson of Bhume had updated the Department that the locals are not in the mood to allow even the study works other than the excavation. It might take more than a decade to begin exploration.

Minister for Industry Gauri Kumari Yadav has also shown interest in the matter and requested both the DMG and local government to facilitate in the project.

The site is located in a remote mid-hill area and is at a distance of 165 km from Ghorahi in Dang. The private company has demanded with the government for the construction of the basic infrastructure including roads, bridges and information technology.

"Access to the site is 7-km from the recently opened track of the Mid-Hill Highway but the industrial production of iron there needs a well facilitated road network because the processing industry should be established in Dang district," said Banskota while stating that construction of a cable way can also be a solution.

Likewise, Dhaubadi Iron Company Limited (DICL) is conducting the chemical analysis of the iron ore from the sites and is set to begin the preparation of the Detailed Project Report (DPR). Although the government had given priority to the DICL in its budgets for the past several fiscal years, substantive progress is not seen.

According to Dr. Janak Bahadur Chand, CEO of the company, the DPR is estimated to complete in one-and-a-half years.

The DMG reported that while 3000 tonnes of iron could be produced from ore processing at Jhumlabang, Dhaubadi can produce 1500 tonnes.

 

Highly potential Phulchoki

Meanwhile, iron mining at Phulchoki came to a complete halt after court, in Godavari Marble Case, barred commercial mining in ecologically sensitive conservation area as well. A private sector company Sagarmatha Iron has leased the iron excavation in Phulchoki but the government did not facilitate the company in clearing the policy hurdles, including that created by the court decision. It's been 12 years since the court barred mining and related works in Godavari and surrounding areas.

Feasibility study of Phulchoki iron deposit was conducted about 50 years ago and partial extraction was also conducted. The DMG said that iron ore from Phulchoki has the highest iron content of 56 per cent compared to 40 per cent of Bhume and 35 per cent of Dhaubadi.

It means processing one tonne of iron ore from Phulchoki can yield up to 560 kg of iron against 400 kg in Bhume and 350 kg in Dhaubadi. Production cost is also lowest at Phulchoki.

Banskota said that there is a possibility to extract iron ore at Phulchoki through underground tunnel from the outside of the Kathmandu Valley.

 

Second largest import

Iron and steel are the second largest imports of Nepal after petroleum products. The country imported iron and steel products worth Rs. 169.56 billion in Fiscal Year 2025/26. It was up by 7.37 per cent of previous year 2024/25 when imports of iron and steel stood at Rs. 162.50 billion. Steel and iron constituted 8.1 per cent share in the total imports.

Mining and quarrying sector is expected to contribute to 0.43 per cent to the national Gross Domestic Product (GDP) of the country in 2025/26 with an annual growth rate of 3.52 per cent. The total GDP of the country is expected to reach Rs. 6600 billion, according to the National Statistics Office.

Published in The Rising Nepal on 24 August 2026.   

DICL to begin iron production by 2030

Kathmandu, July 21

The Dhaubadi Iron Company Limited (DICL) has moved ahead with an initial plan to conduct mining in at least two of the six blocks identified for Iron Ore Mineralisation Area at Duaubadi in Hupsekot Rural Municipality–05 in Nawalparasi (East). 

Issuing a letter on June 24, the company announced that it awarded the contract for the preparation of Mining Scheme Report for two of its blocks – Pokhari and Ratekhola – to Ekjati Engineering Pvt. Ltd. 

The report will provide an operational blueprint detailing how the company will extract minerals systematically and safely.

According to the preliminary estimates of the Department of Mines and Geology (DMG), Duaubadi mineral area has 100 million tonnes iron ore deposits. The project details published by the Investment Board of Nepal (IBN) for the Investment Summit 2024, estimates that Pokhari has 7.3 million tonnes ore and Ratekhola 18 million tonnes. 

Other blocks include Dhaubadi 32.5 tonnes, Durlunga 14.2 million tonnes, Ramche (North) 15 million tonnes, and Ramche (South) 9.3 million tonnes. 

 According to Dr. Janak Bahadur Chand, CEO of the DICL, the company is in the phase of quality testing or chemical analysis of the sample deposits from the sites. 

"We have sent the sample to labs for the chemical analysis. The analysis will tell us what will be the share of iron ore in the total minerals. It will take 2-4 months," he said. 

Work for the preparation of the Detailed Project Report (DPR) will also begin soon. Eleven consultants have responded to the company's call for the DPR preparation, and the task is supposed to complete in one-and-a-half years. Earlier, in absence of multi-year policy for DPR preparation had created hurdles which is no more a case. 

The company has also performed drilling in multiple locations to extract materials for the testing and analysis. While the drilling was required to go 2200 metres down, the progress is made up to 1512 metres. This drilling has provided the required number and quality of samples, and the company said that further drilling might not be needed. 

At Dhaubadi, iron band thickness is estimated at 15-30 metres and features alternating sequences of hematite-rich bands and slate/phyllite. 

However, since the project is in its initial phase, it has to achieve multiple milestones before it begins industrial projection. The Rs. 51.25 billion (US$ 394.2 million) project (according to 2024 estimates) is supposed to generate US$391 million in revenue and earn net profit of $29 million. 

According to Dr. Chand, if things go as planned, the company will begin production by early 2030. 

The information published the IBN also mentions that Daubadi has reserves of 126.76 million tonnes of Hematite ore. Earlier chemical analysis has shown that it has 17 per cent to 58 per cent total iron (TFe) within mineralisation zone. Meanwhile, the metallurgical test has shown that it has 35 per cent iron on an average. 

Dr. Chand said that apart from iron, the company will produce silica and quartzite as well as gravel needed for the railway projects as the by-products. The plant will also produce about 70 megawatts of electricity. "It is a zero-waste project," he said. The project is expected to substitute about one fourth of the total iron demand in the country which is estimated to exceed 2 million tonnes. 

Meanwhile, the government has reannounced that the government's share in the DICL would be reduced and private sector companies will be invited to run the project in Public-Private-Partnership (PPP) model. Finance Minister Dr. Swarnim Wagle made this announcement in the budget for this year 2026/27.

Published in The Rising Nepal daily on 22 July 2026.         

Govt plans to complete exploration of five critical minerals within this fiscal

Kathmandu, Aug. 29

The government is set to complete the exploration of five industrial minerals in various locations across the country within current Fiscal Year 2024/25.

According to the Reform Action Plan of the Ministry of Industry, Commerce and Supplies (MoICS), 2081 published by the ministry on Wednesday, exploration of limestone, dolomite, kaolin, phosphorite and iron will be completed by the end of this fiscal, mid-July 2025.

The Department of Mines and Geology (DMG) said that these are the products that have the potential to propel industrial development so the exploration work will be conducted by the internal technicians and engineers.

"The Department has allocated budget for the exploration of these minerals. Since primary study on the feasibility of exploration and deposits has already been conducted, further work can be conducted on time," said Narayan Banskota, Senior Divisional Geologist of the DMG.

Currently iron extraction is being conducted in Dhaubadi of Nawalparasi (East) by the state-run company Dhaubadi Iron Company Limited. Further exploration of iron will be conducted in Rukum (East).

Likewise, the country has iron deposits in Jelbang of Rolpa, Jhumlabang of Rukum (East) and Those of Ramechhap. However, Jumlabang is said to have more than 200 million tonnes of hematite deposit, making it a lucrative project for mining and industries.

The DMG is in the final stage of conducting the chemical test of the iron retrieved from the site in Rukum (East).

Exploration of dolomite will be conducted in Dhading and Tanahun districts, and additional study on phosporite exploration will be taken up in Baitadi district. Dolomite is used in cement and bitumen mixes instead of limestone while phosporite is used in animal feed, detergents, fertilisers, herbicides and other industrial products.

Similarly, limestone exploration is underway in Udayapur district which has a reputation of having a high quality of the product. The exploration site is nearby Jaljale, where the limestone mine of the Udayapur Cement Industry is located.

Likewise, kaolin exploration will be completed in various areas of Madhes Province and other Tarai districts, informed Baskota. Kaolin is a kind of clay that is used in making tiles and similar products.

Meanwhile, the Action Plan of the MoICS, has set out the plan to complete the petroleum drilling work in Dailekh, prepare the Detailed Project Report (DPR) of the Dhaubadi iron mine, and complete petroleum exploration in other blocks within this year.

Nepal has 10 identified petroleum exploration blocks – Dhangadhi, Karnali, Nepalgunj, Lumbini, Chitwan, Birgunj, Malangawa, Janakpur, Rajbiraj and Biratnagar, which are assigned with number from 1 to 10, respectively.

The MoICS is also set to issue license for the six mineral sites that have the deposits of limestone, iron and copper oars.

To expedite the industrial development, the Ministry has laid out the plans to implement various development works at the proposed new industrial zones including Laxmipur, Daiji, Naubasta, Motipur, Shaktikhor and Mahurdhap, and Special Economic Zones (SEZ) in Panchkhal of Kavre and Simara of Bara.

"A proposal will be forwarded to lease out the SEZ in Panchkhal and Simara (Block B and C) to operate them in public-private-partnership model," mentions the action plan.

It has also  proposed the formulation of various policy and legal instruments for micro, cottage and small enterprise, startups, industrial villages, business incubators, inustrial investment promotion and corporate social responsibility. Standardisation rules wil be implemented for the use of raw materials, contract manufacturing and production and branding of micro-brewaries.

In terms of trade facilitaion, a master plan for trade logistics will be formulated. Dry port at Timure in Rasuwa and Integrated Check Post at the Nepal-India border in Bhairahawa will be completed.

Likewise, the country will prepare a strategy for trade promotion in at least three countries, conduct bilateral dialogue with India to review the Trade Treaty, sign trade agreements with Bangladesh and Bhutan, and sign trade and investment framework agreements with South Korea and Vietnam.

Published in The Rising Nepal daily on 30 August 2024.        

Govt opens licenses of 10 non-petroleum mines

Kathmandu, Jun 17

The Department of Mines and Geology (DMG) has opened licenses of 10 mines ranging from coal to gold located in various States across the country.

Of the total non-petroleum mines opened for licensing, three are of copper, two of limestone, and one each of salt, gold, coal, kaoline and granite.

The DMG has published a notice on Wednesday to bid out mining license of four mines and prospecting licenses for the remaining sites.

Mining license will be awarded for limestone deposits at Khamilek in Kapurkot Gaunpalika of Salyan district and Kandrang Gadhi in Benighat-Rorang Gaupalika of Dhading with 5 km and 5.3 km square km area. Kamilek has electricity and road access while Kandrang Gadhi has only road connectivity.

Other projects ready for mining license award are salt deposit at Narsing Khola in Barahagaun Muktikshetra Gaunpalika in Mustang district and granite deposit at Daman in Thaha Municipality in Makwanpur.

Rest of the sites – gold deposit in Rolpa, Coal in Palpa, Kaoline in Makwanpur, and copper in Makwanpur, Udaypur and Dhading - are ready for the prospecting licenses.

“As the quantity and quality of the deposits of those six sites is not studied in detail, the department has opened licenses for exploration as well,” said Dr. Janak Bahadur Chand, Information Officer of the DMG.

According to the notice, gold prospect at Gam in Sunchhahari Gaunpalika of Rolpa, kaoline prospect at Daman in Thaha Municipality, coal prospect at Jhirubas in Nisdi Gaunpalika of Palpa, and copper at Dhusa in Benighat-Rorang Gaunpalika of Dhading, Agrakhola in Thaha Municipality of Makwanpur and Lekhani in Katari Municipality of Udaypur district are open for prospecting license.

Kaoline is clay created by weathering minerals and used in ceramics, said Dr. Chand.

The gold prospect site in Ropla has the largest site including 30 sq. km followed by copper prospect in Udaypur with 24 sq. km, and copper in Dhading and Makwanpur with 12 sq. km each.

The DMG has already carried out exploration works of these minerals and prepared data packages consisting of Terms of Reference (TOR) with general and technical information of these prospects/deposits.

“The bid notice is published in the newspaper and online. But this is not e-bidding,” said Dr. Chand.

He said that since the company needed to be registered in Nepal to be eligible to apply for the mining and prospecting license, the lockdown would not deter the interested ones.

The DMG had prepared the detail of the sites and bid notice much earlier but had waited for the government to ease the lockdown to publish it, said Dr. Chand.

Published in The Rising Nepal daily on 18 June 2020. 

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. 

DMG to start iron exploration, mining model soon

Kathmandu, April 19:

The Department of Mines and Geology (DMG) is planning to give special focus to iron mining in the next decade.

“In the past decade, limestone got special attention which helped make the country self-reliant in cement, and we, soon, will have cement surplus. The next product will be iron which equally has the potential to have significant impact in the country’s economy,” said Director General of the DMG Dr. Somnath Sapkota.

He said that policy would be created to rope in the private sector companies and entrepreneurs in iron mining and processing, new technology would be transferred, and the areas where mapping conducted earlier would be revisited.

According to him, the primary need of the country is the latest mining technology.

Dr. Sapkota also said that the model iron exploration and excavation would soon be developed.

“Public-Private-Partnership, Built-Own-Operate-Transfer, government or any other suitable model would be adopted after consulting with the stakeholders in order to find the sustainable development of iron mining in the country,” he said.

He also said that single mine might not be feasible in Nepal as the minerals were scattered in multiple deposits across the country, so collective license should be given to the mining companies.

Meanwhile, the DMG is set to conclude the feasibility study of iron ore deposits in Dhaubadi of Nawalparasi district in Gandaki State within a year.

Dr. Sapkota said that the site was estimated to have more than 100 million geological reserves of iron ore.

The DMG is conducting chemical testing at Dhaubadi in order to get the exact potential of the site.

The country has iron deposits in Phulchoki in Lalitpur, Those of Ramechhap, Purchaundi of Baitadi, Dhuwakot of Parbat, Jirbang of Chitwan, Labdikhola of Tanahun, Dahabagar, Kachali and Ekghar in Bajhang district.

Published in The Rising Nepal daily on 20 April 2019. 

Govt fails to call global tender for petroleum exploration

Kathmandu, Mar. 23: The government has failed to call a global tender to explore for petroleum at different 10 locations across the country.

The Ministry of Industry, Commerce and Supplies (MoICS) last year had announced to expedite the petroleum exploration process – in 10 identified blocks, from Dhangadhi in the west to Biratnagar in the east – by calling proposals from international companies for the petroleum exploration and development work.

But there has been no significant progress in this regards.

Ministry sources said that the frequent changes in the government, elections and implementation of federalism have halted the process of petroleum development.

“However, the MoICS and the Department of Mines and Geology (DMG) have been working on the project. The tender will be called at the earliest,” said the DMG.

A Chinese company had come to Nepal last year for the same purpose after the then government made a request to the northern neighbor, but the company is yet to submit the report.

The government had brought out the National Mines Policy in 2017, and amended the Petroleum Regulations 1985 for the fifth time in order to simplify the modalities and processes for selecting companies for petroleum exploration and development.

A high-level government committee, Infrastructure Project Monitoring High-Level Committee, in 2016 had directed the MoICS to initiate petroleum exploration process in 10 different blocks across the Terai and the Chure area, and asked the government to seek international technical assistance to conduct geological studies.

The 10 exploration blocks, each consisting of about 5,000 square kilometers, are Dhangadhi, Karnali, Nepalgunj, Lumbini, Chitwan, Birgunj, Malangwa, Janakpur, Rajbiraj and Biratnagar.

Though a British company, Cairn Energy, obtained license in 2004 to explore five fields – Dhangaghi, Karnali, Lumbini, Birgunj and Malangawa – and BBB Champion and EABG also joined the suite in 2012 to explore Biratnagar and Janakpur blocks respectively, they remained inactive and the exploration witnessed no progress.

The government scrapped the licenses of these companies in January 2015. 

Published in The Rising Nepal on 24 March 2018.

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.   

Govt to call global tender for petroleum exploration

Kathmandu, May 19: The government is planning to call a global tender to explore for petroleum at multiple points across the country.

The government has identified 10 blocks, from Dhangadhi in the west to Biratnagar in the east, that have petroleum potential, said Minister for Industry Nabindra Raj Joshi while addressing a press conference organised at the ministry on Friday.

According to him, proposals will be called from international companies for petroleum exploration and development in all those blocks.

"There have been remarkable achievements in terms of petroleum sector development process. Petroleum Regulations, 1985 has been amended for the fifth time in order to make timely changes in the legal provisions. The amendment has simplified the modalities and processes of selecting companies for petroleum exploration and development," minister Joshi said.

In order to save the petroleum fields from a low-bidding syndrome and make sure that the country gets due benefits, the ministry has been mulling over awarding the projects to technically capable companies.

"The companies that participate in the tender process will be evaluated on the basis of both technical and economic aspects. We have decided to give 70 and 30 per cent weightage to technical expertise and economic capability respectively," said the minister.

He said that if everything goes as per the plan, within 4-5 years the country would be drilling its own oil.

A high-level government committee had directed the Ministry of Industry (MoI) in March last year to initiate the petroleum exploration process in 10 blocks across the country in the Terai and Chure area.

The Infrastructure Project Monitoring High-Level Committee had even asked the ministry to seek technical assistance from other countries to conduct geological studies.

The government has divided the Terai and Chure hills into 10 exploration blocks, each consisting of about 5,000 square kilometers.

The identified blocks are Dhangadhi, Karnali, Nepalgunj, Lumbini, Chitwan, Birgunj, Malangawa, Janakpur, Rajbiraj and Biratnagar, from 1 to 10, respectively.

Petroleum exploration in Nepal was initiated in the 1990s after a company from the USA, Texana, was allowed to drill to extract oil at two blocks - Banke and Chitwan.

In 2004, a British company, Cairn Energy, obtained license to explore five fields – Dhangadhi, Karnali, Lumbini, Birgunj and Malangawa.

But citing the Maoist insurgency and political instability, these companies continued to shy away from the exploration. Two other companies, BBB Champion and EABG, joined the petroleum exploration bandwagon in 2012, with licenses to explore the Biratnagar and Janakpur blocks respectively.

However, as the companies remained inactive for many years, the government scrapped the licenses of these companies in January 2015.

A Chinese company had come to Nepal for the same purpose after the government made a request to the Chinese counterpart.

But, according to the director general of the Department of Mines and Geology, Rajendra Prasad Khanal, the company is yet to submit its report.

Meanwhile, the government has approved the National Mines Policy, 2017.

The policy is said to increase the contribution of minerals in the economic development of the country, pave the way for Foreign Direct Investment (FDI) in the sector and channelise more government investment into the development of the mines sector.

The ministry has decided to expedite the works to excavate iron ore at Dhaubadi of Nawalparasi district.

Khanal said that the site in Dhaubadi has enough iron ore, where about 3,000 metric tons of iron ore can be extracted per day for 50 to 60 years.

Similarly, the government has also decided to bring the Nepal Metal Company Limited into operation. The company, established three decades ago in Dhading with the aim of extracting zinc-lead ores, couldn't come into operation and had remained dysfunctional for many years.

(Published in The Rising Nepal Daily, May 20) 

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.