A Nepalese government team that went to Nawalparasi to explore coal mining has instead found the third and possibly the largest iron ore deposit in the country.
The Department of Mines and Geology (DoMG) had initiated the exploration hoping to find coal deposits, given the past geological finding. However, its exploration team struck an iron ore deposit in Pokhari and Durlung villages, east of Arun Khola.
The deposit is 20 metres thick and two square kilometres in area. The quality of the ore and economic viability of extracting iron from it are yet to be ascertained.
Preliminary tests of the samples, nonetheless, have indicated that the ore could be of the best quality found so far in the country, said a senior DoMG official.
“We have forwarded the sample for detailed laboratory study, which will disclose its contents and quality,” Uttam Bol Shrestha, senior Divisional Mining Engineer at the department told myrepublica.com. Test report will come in next one-and-a-half month.
Although occurrence of iron ore has been reported in more than 85 localities across the country, government´s study has so far established only two reserves at Thoshe in Ramechhap district and Fulchowki in Lalitpur district as qualitatively and commercially viable for extraction.
However, the country has not been able to smelt the ores for commercial benefits.
The government never handed over the ore reserve of 10 million tons in Fulchowki to private extractors because the area lies in the area possessed by the Nepal Army. Besides, the mining factory could also threatened the rich bio-diversity available in the locality.
“We could never know the socio-economic benefits of iron mining, as environmentalists´ resistance to mining has prevailed without appropriate cost-benefit analysis,” said an official at Ministry of Industry.
Deposits in Thoshe, which is estimated to possess iron ore reserve of 10 million tons, on the other hand was extracted in bits and pieces during Rana regime for making arms and agricultural utilities.
It was also smelted and used for constructing bridges along Bhainse-Bhimphedi section of Tribhuvan Highway. The mine was, however, closed in later decades. Easy availability of finished iron in the market reduced significance of resuming its mining.
However, considering the latest technological viability and private sector´s interest, the department recently granted the prospection license to NNC Minerals for conducting further exploration and mining of Thoshe deposit.
Sources informed myrepublica.com that NNC Minerals is presently taking initiatives to bring in Chinese investment and technology for further study and mining. If things moved ahead positively, Nepal could have first ever commercial iron mining industry in the next few years, noted officials.
As for the newly found ore deposit, officials said they would need to conduct a detailed study of the site to assess the volume of deposits and determine commercial viability of its extraction.
However, as it was found after the department forwarded its annual programs and budget requirements at the Ministry of Industry and National Planning Commission, the officials doubt whether they will be able to conduct further study on it in the next fiscal year.
“The department receives a meager budget. Hence, there is a little room of pursuing the study before mid-July 2010, unless the government decides to give additional budget for it,” said Shrestha.
Source: Myreublica.com
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