Act

Mines and Minerals Act, 2040

All laws Acts

Type
Act
Year
२०४२ BS
Status
In force
Category
खण्ड ८: उद्योग, वाणिज्य तथा आपूर्ति · Volume 8: Industry, Commerce and Supply
Official text
Official page Official text (PDF)
English translation
Official English translation archived copy: the original page is no longer online
Includes amendments up to: 2066 BS. Translations may not include later amendments. The Nepali text is the authoritative law.

Analysis drawn from official reports, court rulings and published research, each cited. Figures are being double-checked against the source documents; corrections are welcome.

What does it do?

  • All minerals on or under any land in Nepal, whether public or private, belong to the Government of Nepal, which holds the exclusive right to carry out mineral work (prospecting and mining). Minerals are classified as metallic or non-metallic and, by importance, as strategic, important and precious, or ordinary. The Department of Mines and Geology may carry out mineral work itself or license others to do so, and the government may take a share in any mining venture.नेपालभित्र निजी वा सार्वजनिक जुनसुकै जग्गाको सतह वा भूगर्भमा रहेका खनिज पदार्थ नेपाल सरकारको सम्पत्ति हुन्, र खनिज कार्य (खोजतलास र उत्खनन) गर्ने एकाधिकार नेपाल सरकारको हुन्छ। खनिज पदार्थलाई प्रकृतिका आधारमा धातु र अधातु, र महत्त्वका आधारमा अति महत्त्वपूर्ण, महत्त्वपूर्ण तथा बहुमूल्य र सामान्य खनिजमा वर्गीकरण गरिएको छ। खानी तथा भूगर्भ विभागले खनिज कार्य आफैँ गर्न वा अरूलाई अनुमति दिई गराउन सक्छ, र नेपाल सरकारले खनिज कार्यमा पुँजी लगानी गरी हिस्सेदार बन्न सक्छ। Nepal Law Commission, Government of Nepal Sections 2–4, pp. 2–3
  • Anyone wishing to do mineral work must apply to the Department for a prospecting licence or, where a deposit's quality and quantity are already known, a mining licence with a mining plan. The Department grants licences to applicants with adequate financial and technical capacity; a prospecting licence holder has the right to a mining licence for the same area. Licences must be renewed, and work must start within the period set by the rules. The Department can close areas to mining for national security, public interest or environmental reasons.खनिज कार्य गर्न चाहनेले विभागमा खोजतलास अनुमतिका लागि, वा गुणस्तर र परिमाण यकिन भइसकेको खनिजका हकमा उत्खनन योजनासहित उत्खनन अनुमतिका लागि निवेदन दिनुपर्छ। आर्थिक र प्राविधिक क्षमता भएका निवेदकलाई विभागले अनुमतिपत्र दिन्छ; खोजतलास अनुमति पाएकाले सोही क्षेत्रमा उत्खनन अनुमति पाउने अधिकार राख्छ। अनुमतिपत्र नवीकरण गर्नुपर्छ र नियमले तोकेको अवधिभित्र काम सुरु गर्नुपर्छ। राष्ट्रिय सुरक्षा, सार्वजनिक हित वा वातावरणका दृष्टिले विभागले कुनै क्षेत्रमा खनिज कार्य निषेध गर्न सक्छ। Nepal Law Commission, Government of Nepal Sections 5–7, pp. 3–5; Sections 11–12, pp. 5–6
  • Licence holders must avoid significant adverse effects on the environment and follow the Department's directions, pay royalties and fees at rates set by the rules according to the type, quality and quantity of mineral, pay a local development fee, and report to the Department. Land needed for mining can be leased from the government or acquired from private owners at the licence holder's cost, with compensation fixed by the rural or urban municipality for affected landowners.अनुमतिपत्रवालाले वातावरणमा उल्लेखनीय प्रतिकूल असर नपर्ने गरी काम गर्नुपर्छ र विभागको निर्देशन पालना गर्नुपर्छ, खनिजको प्रकार, गुणस्तर र परिमाणअनुसार नियमले तोकेको दरमा रोयल्टी र दस्तुर तिर्नुपर्छ, स्थानीय विकास शुल्क बुझाउनुपर्छ र विभागमा विवरण तथा प्रतिवेदन दिनुपर्छ। खनिज कार्यका लागि चाहिने सरकारी जग्गा भू-बहालमा लिन सकिन्छ र निजी जग्गा अनुमतिपत्रवालाकै खर्चमा प्राप्त गराउन सकिन्छ; जग्गाधनीलाई हुने हानिको क्षतिपूर्ति गाउँपालिका वा नगरपालिकाले निर्धारण गर्छ। Nepal Law Commission, Government of Nepal Section 11A, pp. 5–6; Sections 18–21, pp. 7–8
  • The Department inspects mineral work. Mining without a licence can lead to closure of the operation, confiscation of equipment and minerals, a fine of up to Rs 100,000 and compensation for damage. A licence holder who ignores environmental or safety directions can have operations suspended or the licence cancelled, and can be fined up to Rs 100,000 plus compensation for resulting damage; failure to report can also lead to suspension.खनिज कार्यको निरीक्षण विभागले गर्छ। अनुमतिबिना खनिज कार्य गरेमा काम बन्द गराई प्रयोग भएका यन्त्र, उपकरण र खनिज जफत गर्न, एक लाख रुपैयाँसम्म जरिबाना गर्न र हानिको क्षतिपूर्ति भराउन सकिन्छ। वातावरण वा सुरक्षासम्बन्धी निर्देशन वा आदेश नमान्ने अनुमतिपत्रवालाको खनिज कार्य स्थगित वा अनुमतिपत्र रद्द गर्न सकिन्छ, र एक लाख रुपैयाँसम्म जरिबानासहित क्षतिपूर्ति भराउन सकिन्छ; विवरण नबुझाएमा पनि काम स्थगित हुन सक्छ। Nepal Law Commission, Government of Nepal Section 23, pp. 8–9; Section 25, p. 9

Gaps, loopholes and improvement ideas

  • Outdated The Act has not been updated for the federal Constitution. The Constitution puts mines and minerals on the concurrent list of all three levels of government (mining with the federation, mine management with provinces and conservation with local governments), but the Auditor General found that the Mines and Minerals Act 2042 and its 2056 Regulation, as well as the Petroleum Act 2040, had not been revised even after the National Mineral Policy 2074. The High-Level Economic Reform Suggestion Commission likewise describes the mining Acts as outdated.ऐन सङ्घीय संविधानअनुरूप अद्यावधिक भएको छैन। संविधानले खानी तथा खनिजलाई तीनै तहको साझा अधिकारसूचीमा राखेको छ (उत्खनन संघ, खानी व्यवस्थापन प्रदेश र खनिजको संरक्षण स्थानीय तह), तर राष्ट्रिय खनिज नीति, २०७४ जारी भएपछि पनि खानी तथा खनिज पदार्थ ऐन, २०४२ र नियमावली, २०५६ तथा नेपाल पेट्रोलियम ऐन, २०४० समयसापेक्ष परिमार्जन नभएको महालेखापरीक्षकले औँल्याएको छ। उच्चस्तरीय आर्थिक सुधार सुझाव आयोगले पनि खानीसम्बन्धी ऐनहरू पुराना भएको उल्लेख गरेको छ। Office of the Auditor General, Nepal · High-Level Economic Reform Commission (उच्चस्तरीय आर्थिक सुधार सुझाव आयोग), submitted to the Ministry of Finance OAG 62nd Annual Report, MoICS chapter, Department of Mines and Geology, para 38, printed p. 199 (PDF p. 229); HLERC report, mining section para 6, printed p. 200 (PDF p. 267)
  • Not enforced Many licensed mines never start. Under Section 5 the Department has issued mining licences to 166 companies and individuals, but by its own records 93 of those mines had not come into operation; 77 operating companies had not installed the equipment the Regulation requires to measure mined quantities, despite repeated notices. The year before, the Auditor General found that only 61 of 159 holders of mining licences were actually mining.अनुमति पाएका धेरै खानी सञ्चालनमै आएका छैनन्। दफा ५ बमोजिम विभागले १६६ कम्पनी तथा व्यक्तिलाई उत्खनन अनुमति दिएकोमा विभागकै अभिलेखअनुसार ९३ खानी सञ्चालनमा आएका छैनन्; खानी सञ्चालन गरेका ७७ कम्पनी तथा व्यक्तिले पटकपटक सूचना दिँदा पनि नियमावलीले तोकेको उत्खनन परिमाण नाप्ने यन्त्र राखेका छैनन्। अघिल्लो वर्ष महालेखापरीक्षकले उत्खनन अनुमति पाएका १५९ मध्ये ६१ ले मात्र उत्खनन गरिरहेको देखाएको थियो। Office of the Auditor General, Nepal · Office of the Auditor General, Nepal OAG 63rd Annual Report, MoICS chapter, Department of Mines and Geology, para 22, printed p. 187 (PDF p. 219); OAG 62nd Annual Report, same chapter, para 40, printed p. 200 (PDF p. 230); Act s. 5, pp. 3–4
  • Not enforced Royalties are under-collected. Section 18 requires licence holders to pay royalties according to the quantity mined. In 2081/82 the Department collected Rs 1.59 billion, but the Auditor General, relying on the Department's own study of stone extraction, found licence holders who had not paid royalties for more than a year and had mined more than permitted, and asked for Rs 237.8 million (royalty, 30% penalty and 10% local development fee) to be recovered; three companies owed a further Rs 49.95 million in royalty.रोयल्टी पूरा उठेको छैन। दफा १८ ले उत्खनन परिमाणका आधारमा रोयल्टी तिर्नुपर्ने व्यवस्था गरेको छ। २०८१/८२ मा विभागले रु. १ अर्ब ५९ करोड रोयल्टी उठाएकोमा, विभागकै ढुंगा उत्खनन परिमाण मापनसम्बन्धी अध्ययनका आधारमा एक वर्षभन्दा बढी समयदेखि रोयल्टी नतिरेका र अनुमतिभन्दा बढी उत्खनन गरेका अनुमतिपत्रवालाबाट रोयल्टी, ३० प्रतिशत जरिबाना र १० प्रतिशत स्थानीय विकास शुल्कसहित रु. २३ करोड ७७ लाख असुल गर्नुपर्ने महालेखापरीक्षकले औँल्याएको छ; तीन कम्पनीबाट थप रु. ४ करोड ९९ लाख रोयल्टी उठ्न बाँकी छ। Office of the Auditor General, Nepal · Nepal Law Commission, Government of Nepal OAG 63rd Annual Report, MoICS chapter, para 24 (24.1–24.2), printed p. 188 (PDF p. 220); Act s. 18, p. 7

Ideas to fix it

  • Draft or revise mining laws in line with the Constitution and the National Mineral Policy.संविधान र खनिज नीतिअनुरूप खानीसम्बन्धी कानून तर्जुमा तथा परिमार्जन गर्ने। Proposed by: Office of the Auditor General (62nd Annual Report) Office of the Auditor General, Nepal
  • Make a clear and effective mining policy, draft a new mining Act suited to the federal structure, and strengthen the Department of Mines and Geology to speed up exploration and mining.स्पष्ट र प्रभावकारी खानी नीति बनाउने, सङ्घीय संरचनाअनुसार खानीसम्बन्धी नयाँ ऐन तर्जुमा गर्ने, र खानी अन्वेषण तथा उत्खननलाई गति दिन खानी तथा भूगर्भ विभागको क्षमता बढाउने। Proposed by: High-Level Economic Reform Suggestion Commission (2081) High-Level Economic Reform Commission (उच्चस्तरीय आर्थिक सुधार सुझाव आयोग), submitted to the Ministry of Finance

Where does it conflict with other laws?

No conflict with another law is documented in the sources we have reviewed so far.

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