Problems of Mineral Resource Development in Nepal - Economics Notes Grade XI

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Problems of Mineral Resource Development in Nepal - Economics Notes Grade XI

Problems of Mineral Resource Development in Nepal

Problems of Mineral Resource Development:
There is no doubt that we have a large variety of minerals and some of them are available in large quantity. But minerals development in Nepal in handicapped by various problems. Minerals deposits that have been identified are remaining unextracted. Some major problems of mineral resource development in Nepal can be explained as follows:

1. Lack of capital:
Nepal is a poor country and to extract the mineral resource, a large quantity of capital is required. The extraction of minerals need a large amount of capital investment but the shortage of such capital has become the greatest problem in Nepal.

2. Lack of advanced technology:
The utilization of mineral resources requires advanced technology and efficient technical manpower. But require technical manpower and technology are lacking in Nepal. So, Nepal is dependent on foreign experts who are very expenses.

3. Lack of infrastructures:
The transportation and communication are the most essential infrastructures required for extraction of mineral resource. But such facilities are not available in hilly and mountain region where major mineral deposits are supposed to have been located.

4. Lack of research:
Identification of new places with definite capacity of mineral deposits requires scientific research in different parts of the country. But, Nepal has not undertaken adequate research due to lack of capital & trained manpower.

5. Shortage of energy:
The sources like coal, petrol, diesel, etc are the pre-requisite for the extraction, purification & utilization of mineral resources. However, the supply of energy is still inadequate in Nepal.

6. Defective government policy:
The government has not been able to adopt an appropriate mineral policy. Government has no clear policy for the development of mineral resource due to frequently changing the government. Therefore, foreign investors are not encouraged to invest their capital in Nepal.

There are other problems of mineral resource in Nepal such as low rate of Capital formation, the limited scope of the market, growing political instability, lack of people’s participation, etc.

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