Nepal's Mining Sector Faces Policy Challenges Despite Rich Resources

Nepal is a country rich in geological resources gifted by nature. It is estimated that more than 60 types of mineral resources, including limestone, iron, copper, magnesite, dolomite, and silica, are present within the Nepali terrain spread from the Himalayas to the Terai. The proven reserve of approximately 2.5 billion metric tons of limestone and the potential of about 100 million tons of iron ore in Dhauwadi, Nawalparasi, indicate a huge opportunity for mining-based industrial development in Nepal.

Despite such great potential, the contribution of the mining sector to Nepal's total economy has not yet risen above 0.5 percent. The reason for this is not a lack of minerals, but rather policy complexities, delays in permit processes, multi-agency approvals, lack of infrastructure, and long-term policy uncertainties. This raises a significant question—why has Nepal, rich in natural resources, not been able to reap its expected economic benefits?