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Commercial Production of Iron from Dhaubadi Mine to take 2 more Years

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Commercial Production of Iron from Dhaubadi Mine to take 2 more Years
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February 20: A study conducted at Dhaubadi iron mine in Nawalparasi has found that the mine has more iron ore that it was estimated earlier.

The study conducted by Dhaubadi Iron Company Limited with the involvement of senior geologists has found that there are more than 150 million metric tons of iron ore reserves in the mine. An earlier study by the Department of Mines and Geology had estimated that the mine contained 100 million metric tons of iron ore.

A recent study by the state-owned company on the mine's storage capacity estimated an additional 50 million metric tons of iron.

Janak Bahadur Chand, chief executive officer (CEO) of the company, said that the mine was re-studied to ascertain the reserves of the iron mine.

He said that the study was completed one month ago with the involvement of experts from the Department of Mines.

The exploration of the mine at that place was started from the Fiscal Year 2067/68. During the exploration, the company estimated that the storage of iron was 100 million metric tons.

Six international companies have submitted proposals for the feasibility study called by the company. The company is going to conduct a feasibility study to ascertain the production capacity of the mine, production technology, and other investment issues.

According to the company, firms from India, China, and the United Kingdom are among the applicants. Chand said that the companies that have provided the letter of intent will be asked to submit financial and technical proposals and then they will be asked to submit a feasibility study report within three months. He said that the work of preparing a detailed project report (DPR) will be started after the feasibility study.

The company has started discussions with the Nepal Electricity Authority to supply electricity to the project.

According to Chand, the mine is estimated to require about 125 MW (mega) of electricity for iron production and processing. Nepal will have to wait for another two years for commercial production.

He said that it would take more than a year to prepare the environmental impact assessment and for approval of electricity supply to the factory. Dhaubadi mine, considered as the largest iron mine in the country, is 10 km in length, 15 to 30 meters wide, and 100 m deep.

The department had sent five tonnes of iron to China last year to officially confirm the quality of iron found in the mine. The report from China confirmed that iron could be produced commercially. There is a 10 km long iron mine (a hill with a lot of iron) in Dhaubadi to the north of Kawasoti in East Nawalparasi.













 

 

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