The government is planning to operate an iron mine in the country to reduce the excessive import of iron.

The Department of Mines and Geology has decided to excavate iron in Nawalparasi (East) after discovering iron ore in between Namjakot and Dhaubadi area of Hupsekot Rural Municipality-5, Nawalparasi (East).

During the study, a significant amount of iron ore was found in the 10 km area of Dhaubadi. The Council of Ministers decided to establish 'Dhaubadi Iron Company Limited' on August 21, 2019. The company was registered with the company registrar's office on September 26 the same year, under the name "Dhaubadi Iron Company Limited," and has been operating since February 2020.

India's M & Dastur, SRK, and Nepal's Z Company spent eight months exploring iron ore in the area. The study report indicates that iron production can begin from 2027 onwards.

The Chief Executive Officer (CEO) of the company, Dr. Janak Bahadur Chand, stated that a detailed feasibility study for establishing an iron/steel industry based on the Dhaubadi iron ore mine has been completed, and the final report has been received.

The study suggests that iron and steel production is feasible from both technical and financial perspectives. The company is now planned for seismic assessments, environmental impact assessments, and the preparation of a detailed project report.

Dr. Chand said that once the industry starts operation, around 2,000 to 2,500 individuals will be employed directly, with an additional 20,000 to 25,000 employed indirectly.

The project is estimated to cost Rs 51.25 billion. It is anticipated that the company will take seven years to achieve profitability and recover its initial investment. Land acquisition processes have already commenced in Kawasoti and Devchuli municipalities in East Nawalparasi for the establishment of the industry.

It is estimated that there is a deposit of 99 million tonnes of iron ore in the area, of which 96 million tonnes can be extracted. The company’s chairperson and the department’s director-general Ram Prasad Ghimire said that the department has been studying the mine since 2011.