Iron Mining Holdup

Summary

Nepal’s major iron mining projects in Dhaubadi, Jhumlabang and Phulchoki have stalled due to local opposition, infrastructure gaps, environmental restrictions and policy hurdles. The delays have deepened the country’s dependence on imported iron and steel despite large domestic deposits.

Key Points
  • Iron and steel are Nepal’s second-largest import item after petroleum products, with imports reaching Rs. 169.56 billion in fiscal year 2024/25.
  • Major iron mining projects in Dhaubadi, Jhumlabang and Phulchoki have failed to make progress despite significant deposits.
  • Jhumlabang faces local resistance and lack of infrastructure, while Phulchoki remains halted by a court verdict over conservation-area mining.
  • The article urges the government to remove policy barriers and use domestic resources to reduce import dependence.
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