Kathmandu— Dhaubadi Iron Company Limited, a state-owned enterprise established in Nepal, has submitted plans to the Department of Mines and Geology for the extraction of 96 million tonnes of iron ore from its mining site in Hupsekot Rural Municipality-5, Dhaubadi, Nawalparasi district. The company aims to commercially produce iron and potentially replace approximately 25 percent of Nepal’s current iron import demand through this operation, which encompasses a 41 square kilometer area divided into the Dhaubadi Pokhari and Durlung blocks. Initial drilling work has been completed, with environmental impact assessments and detailed project report preparation underway to facilitate further exploration and mining.

Mining Site Details

The proposed mining site covers approximately 41 square kilometers and is divided into two distinct blocks: the 25-square-kilometer Dhaubadi Pokhari block and the 16-square-kilometer Durlung block. The company has completed 1,500 meters of drilling at twelve different locations to analyze underground iron ore samples. These initial investigations are crucial for assessing the viability and scale of the mining operation.

Economic Impact and Import Substitution

Dhaubadi Iron Company Limited anticipates that once operational, the mine will significantly reduce Nepal’s reliance on imported iron products. Director Shailesh Kumar Thapa stated that the domestically produced iron is expected to fulfill around 25 percent of the country’s total import needs. The company also projects that the mining operations will generate substantial employment opportunities and contribute positively to the national economy.

Project Development and Infrastructure

The company is currently undertaking an environmental impact assessment and preparing a Detailed Project Report (DPR) to move the project forward. Necessary infrastructure development, including road upgrades to improve access to the mine site, are also in progress. These preparations indicate a commitment to responsible resource extraction and sustainable development.

With plans submitted and preliminary assessments underway, Dhaubadi Iron Company Limited awaits approval from the Department of Mines and Geology to begin full-scale exploration and mining operations at the Hupsekot site.

Originally published on abcnews.com.np.