PM Oli Announces: Dhauwadi Iron Mine to Produce Steel for Next 100 Years

PM Oli Announces: Dhauwadi Iron Mine to Produce Steel for Next 100 Years

Prime Minister K P Sharma Oli has announced that Nepal will soon begin producing enough iron and steel to meet its national needs for the next 100 years.

Speaking at the inauguration of the Gwarko Overpass on Friday, PM Oli revealed that the Dhauwadi Iron Factory, located in Eastern Nawalparasi, will be operational soon.

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“We are moving ahead with the Dhauwadi Iron Project. Once completed, this plant will enable Nepal to produce sufficient iron and steel for the next century. It will significantly strengthen our economy. The money currently spent on imports will stay within the country. The project will generate massive revenue and create employment opportunities within Nepal. It will also pave the way for the extraction of other mineral resources,” Oli stated.

Confirmed Reserve & National Importance

Experts from the Department of Mines and Geology have confirmed the presence of iron ore at Dhauwadi after multiple drilling and sampling phases conducted between 2012 and 2018. Following this, the Ministry of Industry established Dhauwadi Iron Company Limited in October 2019 to push the project forward.

According to the company’s own research, Nepal currently imports about 2.7 million tonnes of iron-related products annually. A special feasibility report shows that the Dhauwadi mine—spread across 41 square kilometers—has the potential to produce up to 1,500 tonnes of iron per day.

The company believes that if iron is produced domestically, Nepal could reduce up to 25% of current iron imports.

Economic Impact

This initiative is expected to:

  • Boost domestic industrial production
  • Strengthen foreign exchange reserves
  • Create local employment opportunities
  • Reduce dependency on iron imports
  • Support national self-reliance in steel and construction material supply

This major step towards industrial self-sufficiency aligns with the government’s broader goal of enhancing “Made in Nepal” capabilities and uplifting the economy through natural resource utilization.

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