HoR committee directs to bring clear legal arrangement on minerals extraction

Kathmandu, June 21: The industry, Commerce, Labour and Consumer Interest Committee under the House of Representatives (HoR) has directed the Ministry of Industry, Commerce and Supplies to make clear legal arrangement on mines and minerals extraction in the country.

The parliamentary committee instructed the ministry to amend the provisions of the Mines and Minerals Rules, 2056 so as to make it relevant and contextual.

Committee President Abdul Khan informed that the decision was made after discussion on the application received from the Nepal Cement Manufacturers Association in today’s meeting.

“The Committee has drawn serious attention to the application noting domestic cement industries could not smoothly operate or continue production works in compliance with the existing regulatory arrangements”, Khan added.

The Rule 19 (e) of the Mines and Minerals Extractions Rule, 2056 has specified the provision to put necessary instrument of measurement of quantity of minerals in the place of collection and storing materials. The cement producers however said there has been an interpretation that weighbridge should be used to measure the minerals extracted from the mining sites.

President Khan informed that the directive has been issued to extend timeline for six months in a way to measure the quantity of extracted minerals by using the weighbridge at cement manufacturing industry site and bring clear legal arrangements by amending the existing Rule.

In the meeting, Minister for Industry, Commerce and Supplies Damodar Bhandari said the tasks are being carried out to amend the act governing mines and minerals extraction industry in Nepal. “Policy reform is imperative to make it relevant. Tasks are being undertaken to amend the Rule and prepare the draft of the Act. This would address the demands of the cement manufacturers’ association”.

Vice-Chairperson of Association Tara Prasad Pokharel demanded an arrangement to measure the extracted materials by using weighbridge in the industry site as the extraction related works take place in remote and mountainous areas where power supply is also not smooth.

“In lack of clear policy decision to this effect, the task of mines and minerals extraction work has been stopped leading the shutdown of entire industry”, he mentioned.