Government Initiates Iron Ore Exploration

In a significant move to enhance self-sufficiency in iron ore resources, the government has intensified efforts towards iron ore exploration within the country. The decision to prioritize domestic iron production was propelled by the findings of a comprehensive study conducted by the Department of Mines and Geology.

The study revealed substantial iron ore deposits spanning from west Namjakot to east Dhaubadi under Hupsekot Rural Municipality-5 in the Gandaki province. Eager to capitalize on this discovery, the government established the ‘Dhaubadi Iron Company Limited’ following a cabinet meeting decision on August 21, 2019.

The formal registration of the company as ‘Dhaubadi Iron Company Ltd’ took place on September 26, 2019, with operations commencing in February 2020. Dr. Janak Bahadur Chand, the Chief Executive Officer of the company, shared insights into the comprehensive studies conducted by the company.

“The Company diligently assessed the quality of iron ore, determined the volume of deposits, and completed geological studies, drilling activities, and chemical testing at the iron mines area,” stated Dr. Chand. Despite facing limitations in resources and human capital, the company is actively pursuing financial and commercial feasibility studies.

In a bid to secure land for the industry, the company has initiated processes for land acquisition in Kawasoti Municipality and Devchuli Municipality. The efforts underscore the commitment to establishing a robust domestic iron industry.

As a crucial step in validating the quality of the iron ore discovered, the government has dispatched five tonnes of iron to the Sichuan Institute of Metallurgical Geology and Exploration in Chengdu, China, for testing. The Chinese laboratory has confirmed that the iron extracted from the mines is suitable for industrial production.

This initiative marks a significant stride towards reducing dependence on iron imports and fostering economic self-sufficiency in the crucial sector of iron and steel production. The government’s commitment to supporting the ‘Dhaubadi Iron Company Limited’ and advancing iron exploration showcases a strategic vision for the sustainable development of the country’s natural resources.