(1) Subject to this Act and the rules made under this Act, a person who wants to do mineral work shall first search for a permit for mineral substances whose quality and quantity have not been ascertained, and for mineral substances whose quality and quantity have been ascertained. If necessary, an application should be submitted to the department in the prescribed format for permission to carry out excavation work, including the proposed plan of excavation work.
(2) Upon receipt of the application according to sub-section (1), the department, after conducting the necessary investigation, if it is found that the applicant has financial and technical ability and has the necessary qualifications to carry out mineral operations, he may be given a permit to carry out mineral operations by obtaining a prescribed fee in the prescribed format.
(3) Notwithstanding anything written in sub-section (1), if the department deems it appropriate in relation to a specific mineral substance, it may enter into a mineral contract with a person who has the necessary financial and technical ability and qualification for mineral work and grant permission to him to carry out mineral work by taking the instructions of the person specified in the prescribed format.
(4) According to this section, if the person who has permission to carry out exploration work wants to get permission to carry out excavation work, he must submit an application to the department in the prescribed format before the end of the exploration period. (5) After receiving the application according to sub-section (4), the department will give permission to carry out the excavation work by taking the prescribed fee in the prescribed format and if the plan of the excavation work is deemed suitable after conducting the necessary investigation.
(6) The Government of Nepal may, if it wishes, take an amount or shares equal to the direct expenses incurred in such prospecting work from the person who wants to obtain a permit for the mining of mineral substances, whose quality and quantity have been ascertained by the department.

(7) While granting permission to carry out mineral operations according to this section, the department shall also mention the area period of mineral operations and the related matters if the Government of Nepal becomes a shareholder in such mineral operations.