Proposed law seeks to keep strategic mineral mining under state control

Nepal is introducing a new mining law that would give the state exclusive authority over the extraction of minerals considered strategic or of national importance. The draft bill, prepared by the Ministry of Industry, Commerce and Supplies, aims to consolidate and amend existing laws related to mines and minerals.

Under the proposed legislation, any company involved in mining these designated minerals must be entirely owned by the Nepal government. This marks the first time Nepal is creating a specific category for minerals vital to national interests. The government can designate minerals as strategic or nationally important through a notice in the Nepal Gazette, based on their use, availability, and relevance to national security and economic goals. Such designations could lead to restrictions on storage, use, transportation, and export.

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this is the first time Nepal is introducing a separate category for minerals of strategic and national importance.

Minerals with long-term implications for the country or significant economic potential, such as gold, platinum, rare earth elements, uranium, and thorium, are likely candidates for this classification. The exact list will be finalized after regulations are established. The bill also grants the government sole authority over radioactive minerals, requiring state ownership or a fully state-owned company for their extraction, along with strict safety and environmental protocols.

This legislative initiative responds to global trends, including increased competition for critical minerals and radioactive resources. While the potential value of these resources in Nepal is still uncertain, the proposed law seeks to ensure national control and strategic management of these valuable assets.

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A list of strategic and nationally important minerals will be prepared after regulations under the law are finalised.