DMG's continuous efforts since four and half decades has been successful to identify a number of metallic, nonmetallic and fuel mineral deposits/ prospects/ occurrences and prove some economic and sub-economic deposits and also promote few mineral based industries like cement, agri-lime, marble, talc, dead burnt magnesite, zinc-lead etc. Similarly small-scale mines of coal, peat, clay, salt, talc, quartz crystals, semiprecious stones, precious stones and quite a few dimension/ paving stones, roofing slates are in operation by the private entrepreneurs after obtaining the licenses from DMG. There are very few gem industries in Nepal. Construction aggregates, sand, gravel, dimension stone and decorative stones are the other important mineral resources. Many known prospective resources are yet to be explored in detail and promote more mineral based industries.

Minerals are the valuable natural resources for the development of a country. They constitute important raw materials for industry as well as for basic needs. Every individual mineral resource is finite and nonrenewable in nature and therefore, exhaustible on exploitation. However, if mineral resources in demand are not harvested at an appropriate time, they may loss value in future. For example, the high-grade and one of the largest magnesite deposit of Kharidhunga, Sindhupalchok district of Nepal, having high market value in eighties in the Indian Sub-continent remains idle today due to delay in project implementation. As a consequence, even comparatively low grade magnesite from other countries discovered later emerged into the market due to rapid development of new technology and overshadowed the high grade Kharidhunga magnesite deposit.

The endowment of Nepal by metallic minerals is poor though both base metal and precious metal deposits/ prospects are known. However, small scale metal mining has been historically exploited and copper, lead, iron, nickel and cobalt had been exported to Tibet and India. Thus, the small to medium size and low to medium grade metallic mineral deposits do exist and the apparently poor discoveries may be a function of the relatively limited modern exploration in the country’s very difficult terrain.

Nepal does, however, possess commercially important nonmetallic mineral resources like limestone, dolomite, marble, magnesite, talc etc. The potential for finding economic gold, gemstones (ruby, sapphire, tourmaline, and aquamarine) and petroleum resources is high in the country but detail exploration for those minerals and fuels has yet to be carried out. Cairn Energy PLC (British) and Texana Resources (American) companies are in the process to do detail exploration of petroleum in Nepal. A huge potentiality of the construction materials does exist in the country.

The contribution of the existing nonmetallic mineral based industries in terms of production is considerably lower in amount than today’s domestic needs. However, their contribution is not less significant to the national economy in terms of the creation of employment, reduction of dependence on foreign imports, and saving of foreign currency.

According to the national policy DMG is giving high priority to explore, evaluate and sustainable development of industrial minerals, high price metals, base metals, gemstones, construction materials and fuel minerals. These mineral resources are vital for industrial development and increase the national GDP.

DMG administrates the Mining Rules and Regulations, issue both Prospecting and Mining licenses to the interested investors and regularly inspects and monitors the mining activities of the lease holders. In the present changed situation in the country it is envisaged that within few years time a number of mines will be operated and more mineral based industries and petroleum industries will be established, many people will have job opportunity that will contribute substantially in national GDP. In FY 2064/65 only 74 mines/ quarries (for over 20 different mineral commodities) excluding the licenses issued by District Development Committees (DDC) were in operation or in development stage. Out of which 67 mining license were renewed and 7 new mining licenses were issued on request. Similarly 173 prospecting licenses (69 for limestone, 34 for coal, 15 for iron, 9 for copper, 6 for gold, 5 for mica and 35 others like quartz crystal, lead, zinc, talc, marble, kyanite, tourmaline, corundum, clay, etc.) were issued and 133 prospecting licenses were renewed to explore more than 20 mineral commodities and it has collected Rs17, 225,373.00 as royalty/ revenue. It is expected that DDCs collect in total more than Rs.500, 000,000.00 per year from such licenses. In petroleum sector the government receives annually about Rs.24, 500,000.00 only from surface rental of lease area (7 blocks). Once the more mineral industries are established and petroleum is discovered in the country its economy will be bust remarkably.
At present, DMG is running 2 development projects such as (1) Geological survey and research and (2) Mineral exploration and development as well as 2 Seismological Centers one in Kathmandu and other in Birendranagar, Surkhet. These centers with the help of 21 seismic stations located in different parts of Nepal are regularly recording earthquakes of intensity more than 2 Richter scale. They have recorded 15 earthquakes of intensity more than 4 Richter scale in FY 2064/065. In addition to these under DMG there is a Petroleum Exploration Promotion Project (PEPP) which carried out petroleum exploration activities and coordinates with petroleum companies that are working in Nepal.