Gold diggers keep up futile search, raise suspicion

KATHMANDU, Feb 23:

Data shows that 17 firms and individuals are currently prospecting for gold in seven districts, and five of them are Chinese companies. These have been concentrating on gold mining although it is already proven that there are no feasible deposits, and this has raised eyebrows at the Department of Mines and Geology (DMG).

Several explorations by DMG itself and dozens of such attempts by private firms, both domestic and foreign, have confirmed that there are no viable gold mines in the country, but new prospectors are lining up all the same.

Talking to Republica, Director General of DMG, Sarbajeet Prasad Mahato, said he doesn´t know why they are continuing to propsect although it is already proven that there are no gold deposits in the country that are feasible for mining. Most of the explorations are carried on the banks of rivers. The companies/persons involved can carry out their actities for four years maximum once they receive the prospecting licenses, which are issued on a first come first serve basis and in designated locations. The licenses can be extended for a maximum of two years if there is satisfactory progress.

Sources at DMG not wishing to be identified said that the prospectors might in fact be searching for something more than gold. And with the number of Chinese prospectors on the rise in recent years, there is speculation that they might be looking for rare earth elements.

Rare earth elements are in high demand and command premium prices as they are used for making microchips and have other high-tech uses in vital sectors. Seventeen types of rare earth elements are used by the armaments, alternative energy and communications industries.

Asked about the state of knowledge in Nepal about such elements, DMG chief Mahato said, “We have not yet studied them but there are plans.”

Despite the long history of gold prospecting across the country no entity or individual has yet been gven a license for excavating the yellow metal.

The DMG website says that occurences of gold are known in the Lungri Khola area (in Rolpa district); Bangabagar, Gorang and Jamarigad (Baitadi); and Bamangaon (Dadeldhura). But the occurences are yet to be evaluated through detailed exploration.

Source: Republica