The government is preparing to amend the Mines and Minerals Act to impose fines up to NPR 10 million for unauthorized mineral extraction. The new bill, presented by the Ministry of Industry, Commerce and Supplies, will replace the Mines and Minerals Act of 1985 (2042 BS). The proposed legislation aims to clarify the authority of the federal, provincial, and local governments under the federal system while regulating the mineral exploration and extraction processes. Kathmandu, 25th Shrawan.
The amendment will include provisions to fine up to NPR 10 million for any mineral exploration or extraction carried out without proper authorization. According to Industry Minister Gauri Kumari Yadav, the new law will ensure the scientific, sustainable, and organized use of mines and minerals. The act will clearly define the roles, coordination, and powers of the federal, provincial, and local levels of government in line with the federal system.
The new law aims to make mineral conservation, exploration, and extraction processes transparent, competitive, and efficient. It includes special protection and regulation for strategic, tactical, and radioactive minerals, as well as measures to ensure environmental protection and disaster risk reduction related to mineral use. The authority for exploration will be increasingly delegated to the provinces, with mineral exploration rights governed by provincial laws. Previously, all mineral-related work was an exclusive authority of the Nepal government.
Under the new provisions, the validity of previously issued permits will be adjusted accordingly. Extraction permits will be valid for a maximum of 30 years. Specifically, permits for very small, small, medium, and large mineral extractions will be valid for 10, 15, 20, and 30 years respectively. There is also a provision to extend the permit period if extraction is not completed within the stipulated timeframe. The fine amount can range from NPR 2.5 million to NPR 10 million, which is up to 100 times higher than the current law.
