Mining and environmental rehabilitation challenges, Mongolia case

Bolormaa Purevjav, CIRDI FellowChair, Stakeholders Engagement for Sustainable Development

Content

• Mongolia background

• Mining development since 1990s

• Impacts of mining

• Environmental rehabilitation: why is it so of crucial importance

for us?

1990: A democratic country Rural nomadic culture and modern city lifestyle

Population: 3 million

Human Development Index: 0, 735 Progressive economic growth: 1998 - 2014

Mongolia background

Economic decline: 2015-2017 Poverty rate: 21,6 %

Socio-economic data

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

Male Female

Male Female

Male Female

69.89

98.46%

10.4% Life expectancy

Literacy rate

Unemployment rate (2016)

66.02%75.84%

98.20% 98.91%

12.30%

8.40%

Mining development dynamics

• Mineral Resources Law 1997

• Mineral Resources Law 2006 (amended 2010, 2012, 2013,2014)

• Mineral resources policy document: 2014 – 2025

• A mining law drafted and being discussed, 2017

Mining development dynamics

as of March 2017Exploitation licenses: 1571 Exploration licenses: 1978 Economic contribution: 17% of GDP

Gold program: 1992-2000Gold production increased dramatically and new gold reserves discovered: 110, 360 ton 107,6 million USD to state budget

2001-2004: mining intensified

Artisanal small scale mining (ASM)

only 5000 are organized, but

over 60000 people in illegal mining

Local movements“Take the gold and leave the dirt” approach

Land damaged, degraded and abandoned: 42,556 hectares (as of 2012)Water issues emerged: pollution and scarcity

Mongolian Nature Protection Civic Movement Council comprising 17 local grassroots movementsMongolian river protection movements

Policy implications• President’s Decree: stop permission for exploration licenses • 2006: 68 percent withhold tax introduction• July 2009 Law on Prohibition of Mineral Exploration and Mining in the

Headwaters of Rivers, Protected Water Reservoir and Forested Areas.

What were impacts?

• Over 2500 exploration licenses were cancelled and no new licenses until recently

• Mining companies put the gold as collateral in the commercial banks

• 252 mining exploitation licenses cancelled, Government had to pay money to companies but lacks budget

• Emergence of so called “environmental rehabilitation companies but doing mining”

Comprehensive environmental package law

Environmental rehabilitation in mining

Why environmental rehabilitation is so critical?Over million or 30 percent of population are in herding

Mongolia already experiencing impacts climate change which also contributes to pasture degradation; and frequent natural disasters

Environmental Rehabilitation in ASM

• Economic affordability: less costly, labor intense• Social acceptability: future economic use • Ecological viability: ecological and climatic

conditions across Mongolia

Alluvial, hard-rock gold and fluorspar

750 ASMrs rehabilitated 143 ha of abandoned land.

Building community knowledge and increasing rehabilitation skills

• Technical rehabilitation• Topsoil management• Biological rehabilitation

• Demonstrating collaborative approaches between stakeholders: local government and ASM NGOs

Gurvan Tes, Таmgat site, Umnugovi aimag

Munkhairkhan SPA /Uyench canyon /

Bayan Ovoo, Bayankhongor aimag, Altan Us

Bayankhongor aimag, Jargalant soum, Mandal buureg site

Thank you!