NepalMinerals
Because only a few minerals were available in small
quantities
for commercial utilization, the mineral industry's
contribution to
the economy was small. Most mineral commodities were used
for
domestic construction. The principal mineral agency was
the
Department of Mines and Geology. Geological surveys
conducted in
the past had indicated the possibility of major metallic
and
industrial mineral deposits, but a poor infrastructure and
lack of
a skilled work force inhibited further development of the
mineral
industry.
The most important mineral resources exploited were
limestone
for cement, clay, garnet, magnetite, and talc. Crude
magnetite
production declined from a high of approximately 63,200
tons in
1986 to approximately 28,000 tons in 1989; it was
projected to
decline further to 25,000 tons in 1990.
In 1990 mineral production decreased significantly,
largely
because of political unrest. Production of cement fell
approximately 51 percent over 1989--from approximately
218,000 tons
to about 107,200 tons. Production of clays for cement
manufacture
dropped from 7,206 tons to 824 tons. Lignite production
decreased
19 percent, and talc production fell 73 percent.
Ornamental marble
production, however, increased in 1989--by 100 percent in
cut
marble and 1,560 percent in marble chips.
Nonetheless, the mining industry had the potential to
become a
more important part of the economy, as new mines were
being planned
or were being developed. Two cement plants already were in
operation, and a third one was being planned. It was
expected that
with full production in the three plants, Nepal might
become selfsufficient in cement. A magnetite mine and pressuring
plant east of
Kathmandu had completed its construction phase and began
production
of chalk powder (talcum powder) on a trial basis in 1990.
A highgrade lead and zinc mine was being developed north of
Kathmandu in
the region of Ganesh Himal and was expected to become
operational
in the 1990s, although raising enough capital for the
project was
problematic. Production of agricultural lime in 1989
doubled that
of the previous year, suggesting that progress was being
made
towards meeting requirements of the agricultural sector.
Data as of September 1991
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