The government is set to issue mining licences to the private sector for extraction of a range of minerals, including iron and gold. In the first phase, the government has invited bids for extraction in 10 mines. Following the model used for granting limestone mining licences to cement industries, the private sector will now be licensed to mine iron, gold, granite and magnesite. The Department of Mines and Geology has issued a 45-day notice inviting bids from private companies. The licensed companies will be responsible for the excavation, processing and study of the minerals.

After obtaining the licence, there will be a separate agreement on the investment required for the excavation.The government aims to involve the private sector in mining and processing instead of handling it directly. Due to the government's limited capacity to manage mining operations independently, the excavation will proceed under a Public Private Partnership (PPP) model. The department plans to hand over the iron mining operations in Jhumlawang in East Rukum, which is considered the largest iron mine in Nepal, to the private sector.