Watch HD Video Download VideoFuel Minerals
a) Coal: Existence of peat, lignite and coal are known in the different parts of the country. Such occurrences are known in four stratigraphic positions e.g. (i) Quaternary lignite in Kathmandu valley (ii) Siwalik coal (iii) Eocene coal and (iv) Gondwana coal. Lignite deposit in Kathmandu valley. Small scale 19 coal mines are in operation in Dang, Salyan, Rolpa and Palpa districts. Gondwana Coal encountered near Barahakshetra and Kampughat areas are not up to the suitable grade. Coal production in Nepal is insignificantly small (100 -200ton /day).
b) Petroleum and Natural Gas:
A series of Oil and Natural gas seeps are recoded in a stretch of 14km in Padukasthan, Sirsathan and Navisthan area in Dailekh and only gas seep in Muktinath (Mustang). GON/ DMG are giving high priority to explore and promote petroleum exploration in Nepal since 1982. DMG/ Petroleum Exploration Promotion Project (PEPP) identified 10 prospective blocks in the southern parts of the country (Fig.6). Shell Company of Netherlands conducted exploration in Block no.10 in eastern Nepal. It has drilled a well up to 3520m deep but the hole appeared dry. At present Texana Resources Company of USA and Cairn Energy PLC of UK have initiated the exploration works in Block no 3 & 5; and 1, 2, 4, 6 & 7 respectively. The possibility of finding oil in some of these blocks appears fairly high region