In the last fiscal, around 14 Chinese companies sought the permission of the industry department to extract natural resources like placer gold, copper and natural gas. These companies have pledged to invest some Rs 400 million for the purpose and provide employment to over 2,000 people.
Nepal has always attracted foreign investment commitments in sectors like energy, manufacturing and service, but the interest expressed by investors, especially Chinese, to inject large chunk of money in the mining business is something new, a senior official at the industry department told myrepublica.
Although the source did not have a clear cut answer for the reason behind this, he said: "It must be the finite nature of these resources, which is creating a sort of rush."
Of the total number of Chinese companies that expressed interest to invest in the mining sector last fiscal, 11 were involved in extraction of placer gold. Placer gold or tiny particles of gold are obtained from deposits of sand and gravel in the river. Most of the rivers in Nepal, including, Mahakali, Chamliya, Jamari Gad, Seti, Karnali, Bheri, Rapti, Lungri and Phagum, Kali Gandaki, Myagdi, Modi, Madi, Marshyangdi, Trishuli, Budigandaki and Sunkoshi, contain small particles of the precious yellow metal.
However, the excavation results, so far, have not been so encouraging.
"We know there is gold in the river," Zhao Sutan, a Chinese investor who has already spent some Rs 8 million in exhuming precious yellow metal particles, told Republica. "But the process of collecting those very tiny bits is very difficult." According to him, there are others who have spent 10 times more than he has and are returning empty handed. "But still they have not given up."
While placer gold has caught attention of investors like Zhao, there are other Chinese who are eyeing the country´s deposit of natural gas. A Chinese company last fiscal pledged to invest Rs 119.67 million in excavating the fossil fuel. Currently, the mining department has identified 14 wells containing 316 million cubic meter of natural gas in Kathmandu.
Another mining sector in which Chinese investors have pledged to put in their money is copper extraction. Copper Manufacturing Industry of China had expressed commitment to invest Rs 49 million in extracting this ore. According to the website of Department of Mines and Geology, around 107 places in Nepal most likely contain copper mines.
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