Kathmandu, July 8: In order to reduce the excessive import of iron, the government is planning to operate iron mine in the country.
The Department of Mines and Geology has decided to excavate after finding the presence of iron ore in West Namjakot to East Dhaubadi area in Hupsekot Rural Municipality-5 in Nawalparasi (East) of Gandaki Province.
During the study, a large amount of iron ore was discovered in the 10 kms area of Dhaubadi.
The Council of Ministers had decided to establish ‘Dhaubadi Iron Company Limited’ on Bhadra 4, 2076 BS. The company was registered in the company registrar’s office on Ashwin 9, 2076 BS under the name of “Dhaubadi Iron Company Limited” and has been operating since Falgun of the same year.
India’s M & Dastur, SRK and Nepal’s Z Company have spent eight months for exploration of iron ore mining over there. It is mentioned in the study report that iron can be produced from 2084 BS onwards. The Chief Executive Officer (CEO) of the company, Dr. Janak Bahadur Chand, said that a detailed feasibility study for the establishment of an iron/steel industry based on the Dhaubadi iron ore mine has been conducted and the final report has been received.
The study suggests the feasibility of iron and steel production from both technical and financial perspectives. The company has planned for mining seismic assessments, environmental impact assessments, and the preparation of a detailed project report.
Dr. Chand said once the industry is established, around 2,000 to 2,500 individuals will be employed directly, with an additional 20,000 to 25,000 employed indirectly.
The project is estimated to cost Rs. 51.25 billion. It is anticipated that it will take seven years for the company to achieve profitability and recover its initial investment. Land acquisition processes have already commenced in Kawasoti and Devchuli municipalities in East Nawalparasi for the establishment of the industry.
It is said that there is deposit of 99 million tonnes iron ore in the area and out of this only 96 million tonnes can be extracted. Company chairperson and Department director-general Ram Prasad Ghimire said that the Department has been studying the mine since 2068 BS.
