The document discusses Nepal's mines and mineral resources potential and opportunities for investment. It provides an overview of Nepal's geological setting and locations of various mineral deposits. Some key mineral resources discussed include copper, iron, limestone, dolomite, magnesite, and precious stones. It also outlines the status of exploration, existing mining and cement industries, as well as opportunities for investment in various mineral prospects. Recent policy and regulatory reforms relating to mining activities and licensing are mentioned to encourage private investment.

1. Mines and Mineral in Nepal :
Unearthing the Path to
Prosperity
R. . P. Khanal
Ministry of Industry
Department of Mines and Geology
Kathmandu, Nepal
March 3, 2017

2. -
- General Geological Setting and Mineral Resources
- Present Status of Mines and Minerals, petroleum oil
and gas
-Investment Opportunities
-Some Sub-sectors of Mines and Mineral need for
FDI
- Policy and Activities Reforms
- Government Initiation for Investment
• Conclusion
General Outline

3. Geology of Nepal HimalayaGeology of Nepal Himalaya
(North to South)(North to South)
 Inner Himalaya (Tibetan Tethys Zone)Inner Himalaya (Tibetan Tethys Zone)
 -------------------- STDFS ------------------------------------------ STDFS ----------------------
 Higher HimalayaHigher Himalaya
 ----------- Main Central Thrust (MCT) ---------------------- Main Central Thrust (MCT) -----------
 Lesser Himalaya (Mahabharat Range and MidLesser Himalaya (Mahabharat Range and Mid
Valleys)Valleys)
 ---------- Main Boundary Thrust (MBT)----------------------- Main Boundary Thrust (MBT)-------------
 Sub Himalaya (Chure/ Siwalik Range)Sub Himalaya (Chure/ Siwalik Range)
 ---------- Main Frontal Thrust (MFT) Or HFT---------- Main Frontal Thrust (MFT) Or HFT
----------------
 Terai Plane / Indogangatic PlainTerai Plane / Indogangatic Plain
Each thrust/ fault forms boundary line between theEach thrust/ fault forms boundary line between the

4. Geological SettingGeological Setting

5. Mineral Potential of NepalMineral Potential of Nepal
Tibetan Tethys ZoneTibetan Tethys Zone
- Salt, gypsum, limestone and natural gas- Salt, gypsum, limestone and natural gas
- Black shale : favorable for REE- Black shale : favorable for REE
Higher Himalayan ZoneHigher Himalayan Zone
- Precious and Semi-precious stones :- Precious and Semi-precious stones :Ruby,Ruby,
Sapphire, Acquamarine Garnet, Kaynite, SilliminiteSapphire, Acquamarine Garnet, Kaynite, Silliminite
- Granites are favorable for Sn, W, U, REE- Granites are favorable for Sn, W, U, REE
- Salt encrustation in Nursing khola, Mustang- Salt encrustation in Nursing khola, Mustang
- L- Lead, zinc, tin, uraniumead, zinc, tin, uranium

6. Unexplored MountainsUnexplored Mountains
Higher HimalayaHigher Himalaya Tethys HimalayanTethys Himalayan

7. - Metal- Metal
Cu, Fe, Pb, Zn, Sn, W, Mo, Co, Ni, Bi, Au, Ag, UCu, Fe, Pb, Zn, Sn, W, Mo, Co, Ni, Bi, Au, Ag, U
- Non-Metal- Non-Metal
Marble, Limestone, Dolomite, Phosphorite,Marble, Limestone, Dolomite, Phosphorite,
Magnesite,Talc,Magnesite,Talc,
-Semi precious stone-Semi precious stone: kyanite, garnet, tourmaline,: kyanite, garnet, tourmaline,
quartz etc.quartz etc.
--PegmatitesPegmatites : favourable for REE: favourable for REE
Lesser Himalayan ZoneLesser Himalayan Zone

8. Mineral Potential in Lesser HimalayaMineral Potential in Lesser Himalaya
 Copper: Wapsa Solukhumbu), 2.53 millionCopper: Wapsa Solukhumbu), 2.53 million
tons, 0.88 to 3.24% Cutons, 0.88 to 3.24% Cu
 Pb-Zn: Khairang (Makawanpur), 1.54 millionPb-Zn: Khairang (Makawanpur), 1.54 million
tons, 2% Pb+Zntons, 2% Pb+Zn
 Iron: Those (Ramechhap), 10 million tons,Iron: Those (Ramechhap), 10 million tons,
44% Fe44% Fe
 Iron: Nawalparasi, possible >50 million tonsIron: Nawalparasi, possible >50 million tons
(under exploration), 55% Fe(under exploration), 55% Fe
 Polymetal: Bamangaon (Dadeldhura): 1.708Polymetal: Bamangaon (Dadeldhura): 1.708
million tons, 0.2 to o.43% Cu, 133ppm W, alsomillion tons, 0.2 to o.43% Cu, 133ppm W, also
Mo, BiMo, Bi
 Natural Gas: Kathmandu , 300 million cu. mNatural Gas: Kathmandu , 300 million cu. m

9. Mineral in Lesser HimalayaMineral in Lesser Himalaya
 Magnesite: Kharidhunga (Dolakha): 180 millionMagnesite: Kharidhunga (Dolakha): 180 million
tons, 24 - 47.6% MgO on dead burnt basistons, 24 - 47.6% MgO on dead burnt basis
 Gold: Lungri Khola (Rolpa):0.1 to 4 gm/ton goldGold: Lungri Khola (Rolpa):0.1 to 4 gm/ton gold
withwith 0.8-400.8-40m thickness bands.m thickness bands.
 U+Au : Gorang (Baitadi)U+Au : Gorang (Baitadi)
 Phosphorite: Baitadi about 3 million tons, PPhosphorite: Baitadi about 3 million tons, P22OO55
10-32%, Bhajhang Phosphorite: about 3 million10-32%, Bhajhang Phosphorite: about 3 million
tons, Ptons, P22OO55 1-20.5%1-20.5%
 Talc: Kharidhunga, Gaighat, and other placesTalc: Kharidhunga, Gaighat, and other places
alsoalso

10. Mineral Potential of NepalMineral Potential of Nepal
Contd.Contd.
Sub Himalaya ZoneSub Himalaya Zone ::
 Construction materials, U, REE andConstruction materials, U, REE and
Petroleum resourcesPetroleum resources
Terai Plain ZoneTerai Plain Zone ::
 Construction materials, and PetroleumConstruction materials, and Petroleum
resourcesresources

11. Exploration Status of MineralExploration Status of Mineral
Resources of NepalResources of Nepal
 AltogetherAltogether 6363 commoditiescommodities have been identified withhave been identified with
the categories ofthe categories of mineral showings,mineral showings, mineralmineral
occurrences, sub-economicoccurrences, sub-economic andand economiceconomic
depositdeposit
 2121 commodities of thecommodities of the metallic mineralmetallic mineral group,group,
 4242 commodities of thecommodities of the nonnon-- metallic mineralmetallic mineral group,group,
– 2323 commodities ofcommodities of chemical, fertilizer, insulator,chemical, fertilizer, insulator,
ceramic, refractory and abrasive mineralceramic, refractory and abrasive mineral groupgroup
– 66 commodities of thecommodities of the gem mineralgem mineral groupgroup
– 99 commodities ofcommodities of construction materialsconstruction materials group andgroup and

12. Status of Present Cement IndustriesStatus of Present Cement Industries
((in production)in production)
 Sonapur Cement,Sonapur Cement,
 Ghorahi CementGhorahi Cement
 Hetauda CementHetauda Cement
 Udaipur CementUdaipur Cement
 Rolpa CementRolpa Cement
 Shivam CementShivam Cement
 Maruti CementMaruti Cement
 ArghakhanchiArghakhanchi
CementCement
 KEPY CementKEPY Cement
 Nigale CementNigale Cement
 Butwal CementButwal Cement
 Sarbottam CementSarbottam Cement
Total estimated Installed Capacity: 11,000
TPD
Market Demand: 15,000 TPD

13. List of Cement Industries (in pipeline)List of Cement Industries (in pipeline)
 Hongshi Shivam, Nawalparasi,10,000Hongshi Shivam, Nawalparasi,10,000
TPD, FDITPD, FDI
 Sourya Cement, Udayapur, 1200 TPDSourya Cement, Udayapur, 1200 TPD
 Riddhi Siddhi Cement, Makwanpur, 2200Riddhi Siddhi Cement, Makwanpur, 2200
TPDTPD
 CG Cements, Palpa, 6000 TPDCG Cements, Palpa, 6000 TPD
 Dang Cement, Dang, 1200 TPDDang Cement, Dang, 1200 TPD
 Samrat Cement, Dang, 1200 TPDSamrat Cement, Dang, 1200 TPD

14. Mining Lease (ML) & Prospecting LeaseMining Lease (ML) & Prospecting Lease
(PL) Status(PL) Status
S.N Minerals Mining
Special License
(Included)
1Calcite 1
2Coal 14
3Dolomite 1
4Iron-ore 3 2
5Kyanite 9
6Lead 3 1
7Limestone 46 12
8Magnesite 1 1
9Marble 2
10Quartz 4
11Quartzite 7
12Red Clay 5 4
13Talc 12
14Tourmaline 12
15Zinc 1 1
Total 121 21
S.N Minerals P License Special License
1Calcite 1
2Coal 3
3Dolomite 7
4Iron-ore 5
5Lead 2 1
6Limestone 145
7Quarzite 20
8Red-clay 1
9Talc 16
10Zinc 3
11Aquamerin 4
12Quartz 2
13Beryl 1
14Copper 8 1
15Corondum 1
16Feldspar 1
17Gold 14
18Granite 2
19Industrial clay 1
20Kaynite 11
21Keolin 1
22Marble 1 1
23Silica sand 8
24Tourmaline 10
total 268 3

15. Location Map of Mining
Licenses

16. Opportunity for More InvestmentOpportunity for More Investment
 Cement grade Limestone (about 1.3 billion tons)Cement grade Limestone (about 1.3 billion tons)
 Dolomite: Huge depositDolomite: Huge deposit
 Construction materials: Huge depositConstruction materials: Huge deposit
 Magnesite: Nepal Oriend Magnesite, DolkhaMagnesite: Nepal Oriend Magnesite, Dolkha
 Zinc-Lead: RasuwaZinc-Lead: Rasuwa
 Iron: Dhoubadi, Nawalparasi ( Exploration workIron: Dhoubadi, Nawalparasi ( Exploration work
on going by DMG)on going by DMG)

17. List of Prospects for InvestmentList of Prospects for Investment
S.No. Prospects
1 Jaitpani-Khamilek Limestone Deposit, Salyan
2 Lakharpata Limestone Deposit, Surkhet
3 Thumki Limestone Deposit, Balthali, Kavre
4 Diyarigad Limestone Prospect, Baitadi
5 Madanpur Limestone Deposit, Palpa
6 Kepchhaki Limestone Prospect, JalpaChilune, Udayapur
7 Dhanpure Limestone Deposit, Syanjga
8 Primary Gold Kimasepo-Jharban, Lungri khola, Rolpa
9 Primary Gold Bargo Gam Prospect, Lungri Khola, Rolpa
10 Agra Khola Copper Prospect, Makawanpur
11 Kurule Copper , Udayapur
12 Dumariya Copper Prospect, Chitwan

18. List Of Prospects for InvestmentList Of Prospects for Investment
S. No Prospects
13 Kalitar Copper Deposit, Makawanpur
14 Pandavkhani Copper, Baglung
15 Minamkot Copper Prospect, Tanahun
16 Kottham Copper, Lead and Zinc prospects,
Tanahun
17 Dhusa Copper Prospect, Dhading
18 Labdi Iron Prospect, Tanahun
19 Labang-Khairang Lead and Zinc Prospect,
Dhading, Makawanpur
20 Kurule Copper Prospect, Udayapur

19. Map of Mineral Potential Area for
Investment

20. Mines and Mineral sectors Needs to
attract More Private Investment
- To set up Value Add Technology
for Precious and semi-precious
stones/ minerals

21. Legal ProvisionsLegal Provisions
 Acts and regulations areActs and regulations are
1.1. Mines and Mineral Act 2042 (1985) with first amendment,Mines and Mineral Act 2042 (1985) with first amendment,
2050( 1993)2050( 1993)
2.2. Mines and Mineral Regulation, 2056(1999) with 4Mines and Mineral Regulation, 2056(1999) with 4thth
amendment in 2016amendment in 2016
3.3. Nepal Petroleum Act, 2040 (1983)Nepal Petroleum Act, 2040 (1983)
4.4. Petroleum Regulation, 2041(1985) with first amendment,Petroleum Regulation, 2041(1985) with first amendment,
2046(1989) and second amendment, 2051(1994)2046(1989) and second amendment, 2051(1994)
5.5. Petroleum Industry (Income Tax) Regulation, 2041(1985)Petroleum Industry (Income Tax) Regulation, 2041(1985)
• Other relevant Acts and regulations are
1. Environment Protection Act and Regulation
2. Forest Conservation Act and Regulation
3. Foreign Direct Investment Regulations

22. Mines and Mineral Act andMines and Mineral Act and
RegulationRegulation
 Licensing SystemLicensing System
Prospecting License:Prospecting License:
-Mineral resource having quality and quantity has not yet-Mineral resource having quality and quantity has not yet
been determinedbeen determined
-Prospecting Lease area: 0.25 sq km to 250 sq km-Prospecting Lease area: 0.25 sq km to 250 sq km
initial period of 2 to 4 years with a provision ofinitial period of 2 to 4 years with a provision of extensionextension
of 2 years.of 2 years.
Mining LicenseMining License
-Mineral deposit having quality and quantity has already-Mineral deposit having quality and quantity has already
been established by explorationbeen established by exploration
-Mining Lease area: 0.5 sq km to 25 sq km-Mining Lease area: 0.5 sq km to 25 sq km
Initial period of 5 to 30 years depending on the level ofInitial period of 5 to 30 years depending on the level of
mineral work with a provision of an additional 1 to 10mineral work with a provision of an additional 1 to 10
yearsyears..

23. Mines and Mineral Act,Mines and Mineral Act,
RegulationRegulation
 Other provisions are-Other provisions are-
1.1. Right of access to use the landRight of access to use the land
2.2. Approval of testing and analyzing the samples outsideApproval of testing and analyzing the samples outside
the countrythe country
 GoN possesses exclusive right to engage in mineralGoN possesses exclusive right to engage in mineral
works either undertaking mining operations directly orworks either undertaking mining operations directly or
have such operations conducted by any other individualhave such operations conducted by any other individual
by granting a license.by granting a license.
 GoN bids the potential areas for PL or ML based on theGoN bids the potential areas for PL or ML based on the
minimum exploration cost. Nepal government has rightminimum exploration cost. Nepal government has right
to participate in the mineral development activities as ato participate in the mineral development activities as a
partner in terms of capital sharing or any other form ofpartner in terms of capital sharing or any other form of
contributions.contributions.

24. Policy Reform
Mines and Mineral Regulation (3rd
Amendment in
2016)
Mandatory Provisions for Mining Activities ( including
Production ) within 1 year
Mines and Mineral Regulation (4th
Amendment in
2016)
-Provisions of separate Technical and Financial
proposals
-Eligible if pass in Technical proposal
-Rating of technical (60) and Financial ( 40)
-New Prospecting Licenses and Bidding process
open from 14 March, 2017
--First National Mineral Policy, 2017 is in the

25. National Mineral Policy, 2017National Mineral Policy, 2017
(In final Stage)(In final Stage)
 Sustainable use of mineralsSustainable use of minerals
 Establishment of National Mineral Development FundEstablishment of National Mineral Development Fund
 Demarcation of Mine Zone for the area with defined mineralDemarcation of Mine Zone for the area with defined mineral
potentiality in terms of quality and quantitypotentiality in terms of quality and quantity
 Allow to hire international experts according to the principle ofAllow to hire international experts according to the principle of
Doctrine of NecessityDoctrine of Necessity
 Construction of Approach road and electrification to all minesConstruction of Approach road and electrification to all mines
with special prioritization to metal mines.with special prioritization to metal mines.
 Subsidy to exploration drilling costSubsidy to exploration drilling cost
 Felicitation to mines and mineral based industry thatFelicitation to mines and mineral based industry that
employees more than 500 peopleemployees more than 500 people
 Special facilities in Royalty and tax to mines developing inSpecial facilities in Royalty and tax to mines developing in
least and underdeveloped regions.least and underdeveloped regions.
 No nationalization of mines and mineral based industryNo nationalization of mines and mineral based industry

26. Government Incentive for Private
Sector Engaged in Exploration
-High Priority for Infrastructure Development in Mines Area
- Providing the forest area for mines ( Expect National
Parks)
-Very Nominal Custom Tax for Exporting Mining Technology
-Coordinating with various organization and local people
-Subsidy to exploration drilling cost (Mineral policy)
-Felicitation to mines and mineral based industry that
employees more than 500 people (Mineral policy)
-Special facilities to mines developing in least and
underdeveloped regions mentioned by government (Mineral
policy)
- Special facilities in Royalty and tax to mines developing in
least and underdeveloped regions. ( Mineral policy)

27. Petroleum Exploration Status inPetroleum Exploration Status in
NepalNepal
 PEPP/ DMG has conducted a series of geological andPEPP/ DMG has conducted a series of geological and
geophysical studies in southern part of countries withgeophysical studies in southern part of countries with
bilateral and multilateral cooperationbilateral and multilateral cooperation
 Terai and Siwaliks have been divided into 10Terai and Siwaliks have been divided into 10
exploration blocks, each of approx. 5,000 sq. kmexploration blocks, each of approx. 5,000 sq. km
 Presence of petroleum source, seal and reservoirPresence of petroleum source, seal and reservoir
rocks as well as structural trapsrocks as well as structural traps
 Presence of petroleum oil and gas seeps in DailekhPresence of petroleum oil and gas seeps in Dailekh
 The geological study reveals that Nepal has potentialThe geological study reveals that Nepal has potential
geological environment to have natural oil and gasgeological environment to have natural oil and gas
within Terai and Siwalik foot hills.within Terai and Siwalik foot hills.
 Already Production in Asam basin in India and PotwarAlready Production in Asam basin in India and Potwar
basin of Paksithan: similar geological setting of Nepalbasin of Paksithan: similar geological setting of Nepal

28. Investment Opportunity in Petroleum oilInvestment Opportunity in Petroleum oil
and gasand gas

29. PETROLEUM LAW
Model
Agreement:
PSC

30.  Bidding process will be opened soon.Bidding process will be opened soon.
 National and International oil companiesNational and International oil companies
request for participation during the biddingrequest for participation during the bidding
processprocess
Request for the Investment

31.  Needs more investment in Metallic minerals:Needs more investment in Metallic minerals:
(Iron Copper. Lead, Zinc & Poly metals)(Iron Copper. Lead, Zinc & Poly metals)
 Needs to establish more and more Cement plants andNeeds to establish more and more Cement plants and
allied industries based on limestone depositsallied industries based on limestone deposits
 High scope to Establish Magnesite Refractory Bricks,High scope to Establish Magnesite Refractory Bricks,
Dolomite and allied industries, Construction materialsDolomite and allied industries, Construction materials
 Opportunity for Petroleum as well as Natural gasOpportunity for Petroleum as well as Natural gas
Exploration Development and ProductionExploration Development and Production
 Scope for Institution development for man-powerScope for Institution development for man-power
enhancement in mining, metallurgy and geological field.enhancement in mining, metallurgy and geological field.
Conclusion

32. View toward outh