Department of Mines & Geology
News Updates
2066-08-11
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  Foreign Investment Opportunities
 

Nepal is a net importer of gold, silver, copper, lead, zinc, iron/ steel, aluminium, gypsum, salt, fertilizer, high grade coal etc. mainly from India, Bhutan, Japan, Hong Kong, China and South Asian and Southeast Asian countries. Only few indigenous raw and finished materials like marble, magnesite, talc, garnet, quartz crystals, kyanite, tourmaline, beryl, corundum/ ruby, natural aggregates (river boulders, gravel and sand) are exported mainly to India and few in China, Hong Kong, Thailand, Singapore, Japan, Germany etc. Being a landlocked country Nepal has to depend on the surface and air transport that is quite costly. There are ample opportunities for the investors to invest in the commercially viable mineral commodities that deserve investment. Some of the proved economic mineral deposits have been developed and are being used in industries like cement, industrial lime, agriculture lime, dead burnt magnesite, paper, soap and marble industries. Some small-scale industries are using limestone, dolomite, quartz, talc, coal, peat, precious and semiprecious stones, brine water (salt) etc. Construction materials (aggregate, dimension stones, slates, river boulders, gravel, sand, clay) are in high demand. Since only about 30-35% of the total demand of cement is fulfilled by internal production there are ample opportunities to exploit existing cement grade limestone and establish more cement and allied industries in Nepal. International companies can invest in petroleum exploration and development.

• Lesser Himalaya is the prospective area for cement grade and chemical grade limestone, dolomite, magnesite, phosphorite etc. Limestone has good prospect for the investors in Nepal. About 1,250,000,000 tons limestone deposits are identified. High quality chemical grade limestone has good market in the subcontinent. Limestone deposits of Diyarigad, Chaukune, Katari-Galtar, Narpani, Nigale, Kazeri, Dnag etc. are promising for cement & allied industries. Based on these deposits establishment of few cement industries are in the process. More limestone deposits are under exploration in Udayapur, Khotang, Syangja, Dang, Rolpa, Palpa etc.

• There is a huge potentiality of dolomite (>5,000,000,000 tons) in the Lesser Himalaya.
• Prospection of Decorative stones/ Dimension stones in Kathmandu, Lalitpur, Kavre, Makwanpur, Dhadhing and Sindhuli districts appears promising. Godavari marble industries contribute partly in domestic demand. Requires more exploration to find new deposits.
• Exploration and exploitation of River boulders, gravel, and sand in the Terai and Churia and identification and development of new quarry for raw stone as a source aggregate for civil works is promising.
• Promotion of gem industries is likely to be highly rewarding. Ruby, sapphire, tourmaline, aquamarine, garnet, kyanite and quartz crystals reveal high potential.
• Petroleum exploration provides promise for investment in Nepal.
• Potential target for gold exploration, alluvial gold mining in major rivers and recent discovery of primary gold in Rolpa, Baitadi and Darchula are encouraging for investment.
• Lead and Zinc deposits in Ganesh Himal area can be mined economically. Investors can collaborate with Nepal Metal Company for mining.
• A number of small to medium size sub economic Cu, Pb, Zn, phosphorite, mica, graphite, kaoline, quartzite deposits exist in the country. Further investigation of these deposits is awaited.