Nepal's Dhaubadi Iron Company plans to extract 96 million tonnes of iron ore

Dhaubadi Iron Company Limited (DICL) has unveiled an ambitious plan to mine 96 million tonnes of iron ore from its concession in Hupsekot Rural Municipality-5, Dhaubadi, Nawalparasi. The company, an undertaking of the Government of Nepal, has submitted a detailed report to the Department of Mines and Geology, outlining the scope of operations for the mine, which spans approximately 41 square kilometers.

The mining area has been strategically divided into two blocks: the Dhaubadi Pokhari block, covering 25 square kilometers, and the Durlung block, spanning 16 square kilometers. Following the approval of this extraction plan, DICL intends to proceed with further exploration and mining activities.

To assess the iron ore deposits, the company has already completed 1,500 meters of drilling across 12 different locations. Shailesh Kumar Thapa, a director at DICL, confirmed that environmental impact assessment work is currently in progress, and the preparation of a Detailed Project Report (DPR) will commence soon. The company was established in 2076 BS (Nepali calendar) with the primary objective of commercial iron production.

Director Thapa expressed optimism about the project's economic impact, stating that once operational, the mine's output is expected to substitute roughly 25% of Nepal's total iron import demand. He also highlighted the potential for significant job creation and contribution to the national economy. Necessary infrastructure, including road upgrades to access the mine, is reportedly underway.

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Once the mine is operational, the iron products produced are expected to replace about 25 per cent of the country’s overall import demand. He believes that mining operations will create a large number of jobs and contribute to the national economy.