The history of mining and mineral extraction in Nepal is believed to be around 2 centuries old. Small amounts of iron, copper, lead, zinc, cobalt, nickel and gold have been mined in Nepal since prehistoric times. The importance of the mineral sector in Nepal is also evident from the fact that old mine pits, audits, waste places and remains of mine tailings found in many places, and villages named after mineral names such as Tama Khani (copper mines), Falam Gau (iron village), Sisha Gau (lead village), Khani Gau (Mines village) or Sun Chahari (gold falls). The systematic study of mines across the country began in the 1950s. Later, after the establishment of the Department of Mines and Geology in 1976, more systematic exploration, evaluation and excavation of minerals have been taking place.

During this period, some success has been achieved in the identification of many minerals that can contribute significantly to the national economy. More than 1000 mineral deposits have been identified in various parts of Nepal ranging from Economic Deposits to Mineral Occurrence. Some important resources have been studied in detail and their characteristics have been evaluated based on availability, quality and price, while some mineral industries have been established and are contributing to the country's economy. 
On the basis of economic potential, minerals are divided into

1) Economic Deposit, which includes mineral resources that are technically and economically profitable for production, and

2) Sub-Economic Deposit, which includes resources whose tonnage and quality are not proven to be profitable.

3) Mineral Reserves (minerals whose thickness, grade, and depth characteristics exhibit less than the required current economic limits), and

4) Mineral Occurrence (minor resources) are defined.

Based on the commodity, the minerals of Nepal have 64 different categories so far identified as 21 items of metal mineral group, 23 items of non-metallic industrial mineral group, 6 items of gemstone group, 10 items of construction materials, and 4 items of fuel mineral group.
Metallic minerals of Nepal include Antimony, Arsenic, Bismuth, Cadmium, Chromium, Cobalt, Copper, Gold, Iron, Lead, Zinc, Lithium, Mercury, Molybdenum, Nickel, Silver, Tantalum/Niobium, Tin, Titanium, Tungsten and Uranium.
Nonmetallic industrial minerals of Nepal include minerals such as Barite, Calcite, Clay, Common Salt, Corundum, Dolomite, Feldspar, Garnet, Graphite, Magnesite, Mica, Ocher, Pegmatite, Phosphorite, Pyrite, Silica Sand, and Sillimanite that are used to make chemicals, fertilizers, insulators, ceramics, refractories and abrasives.
Non-Metallic Gem minerals of Nepal include Beryl and Aquamarine, Kyanite, Quartz, Ruby, Sapphire and Tourmaline.

Non-Metallic construction materials of Nepal include Basic Rocks, Boulder, Gravel and Sand, Granite, Gypsum, Limestone, Marble, Quartzite, Slate, Syenite.

Fuel Minerals and Thermal Springs of Nepal have Coal, Geothermal Hot Spring, Natural Methane Gas, Petroleum and Natural Gas.

Nepal has five geological units with their own geological features and mineral resources. In Terai and Siwalik/Chure, there is possibility of petroleum deposits and construction aggregates. Metalic minerals, industrial minerals, precious and semi-precious stones and coals are expected in the Lesser Himalaya. Similarly, there is a possibility of precious and semi-precious stone, marble and metallic minerals in the Higher Himalaya. The Tethys Himalaya has a wide potential of limestone, salt, gypsum and natural gas.