Kathmandu, August 23
Provincial governments will be allowed to explore mines and mineral resources, but they will require approval from the federal government to extract them under a new bill being introduced by the government.
Minister for Industry, Commerce and Supplies Gauri Kumari has introduced the Mines and Mineral Resources Bill, 2083. The bill, registered in the House of Representatives on August 14, contains provisions on authority over minerals and their classification.
Section 3 of the bill states that any mineral resource found in its natural state on the surface or beneath any land in Nepal—whether privately, communally, publicly or government-owned—will be considered government property.
Section 4 states that the authority to explore mines and mineral resources will be exercised according to provincial law. If a mineral deposit extends across the territory of two or more provinces, exploration will be carried out through mutual agreement between the concerned provincial governments.
If the provinces request federal intervention or fail to reach an agreement, the Department of Mines and Geology under the federal government will conduct the exploration.
The bill defines exploration as activities such as searching, studying and examining mineral resources to identify deposits or determine their type, quality and quantity, including feasibility studies.
The department may also conduct exploration if specialised technology or expertise is required or if requested by a provincial government to issue an exploration permit for a specific period.
The federal government may additionally direct the department to conduct exploration of specified minerals by publishing a notice in the Nepal Gazette.
However, the bill reserves the authority to extract minerals for the federal government.
Section 5 states that the federal government will have the authority to extract mines and mineral resources. The department may conduct extraction itself or authorise companies to do so.
The federal government may also invest capital in or otherwise become a stakeholder in mineral extraction projects.
However, the bill allows provincial governments and local levels to conduct or arrange mineral extraction only for resources specifically designated by the federal government through a notice published in the Nepal Gazette.
