The Bhutanese Leading the way.
The 13th FYP will see the unveiling of a comprehensive mining strategy focused on both traditional growth drivers and new sources of growth.
The Economic Transformation Programme (ETP) has been allocated Nu 80,000 million to implement approximately 76 projects.
Recognizing the critical role of the mining sector in the national economic development, and its contribution to national income, job creation, and export revenues, the government has outlined specific initiatives aimed at enhancing its contribution.
Notably, only about 40 percent of the country has been geologically mapped and prospected at a detailed scale of 1:50,000. This indicates that there is a substantial portion of the country with potentially valuable mineral resources that have not yet been fully explored or understood.
The government has outlined four key initiatives to address these challenges.
Firstly, a comprehensive nationwide effort will be undertaken to map the geological and mineral resources through magnetic, gravity, geochemical, and metallic surveys, providing a detailed understanding of the country’s mineral wealth.
Secondly, there will be focused efforts on the development of graphite deposits, aiming to harness this valuable resource for its significant industrial applications.
Thirdly, strategies will be implemented to enhance the export capabilities of minerals, and promote value addition within the country, thereby increasing the economic benefits derived from the mining sector.
Lastly, capacity development initiatives will be introduced to enhance professional management capabilities within the mining industry through targeted training and development programs.
The mining sector aims to increase its GDP output from Nu 4.080 billion to Nu 9 billion.
During the Question Hour of the National Assembly, Radhi-Sakteng Constituency Member of Parliament, Tashi Tenzin, inquired about the Ministry of Energy and Natural Resources’ (MoENR) plans to capitalize on Bhutan’s abundant mineral resources for increased production and export.
He highlighted the country’s vast reserves of industrial minerals such as dolomite, limestone, marble, quartzite, gypsum, and construction materials, predicting significant export potential to neighboring markets in India and Bangladesh, as their economic growth accelerates.
In response, MoENR Minister, Gyem Tshering, outlined a comprehensive strategy prioritized in the 13th Five-Year Plan (FYP) aimed at enhancing the mining sector. Lyonpo Gyem revealed key initiatives, including: Review of the Mineral Development Policy 2017: Updating policies to align with current market demands and technological advancements. Conducting an Aero-Magnetic Survey: This will aid in detailed mineral resource mapping across Bhutan.
Lyonpo said that there will be an assessment and re-submission of the Mines and Minerals Bill 2020 aimed at ensuring legislative support for the sector’s growth. Review and Amendment of the Mines and Minerals Management Regulations 2022 will aid in streamlining the regulatory frameworks for better management. The House will also look into Proposal for Revision of Export Royalty and Domestic Royalty Rates: Introducing incentivized royalty rates under the Revised Taxes and Levies Act of Bhutan 2016 to encourage in-country value addition.
Digitization of the Mines Leasing Process is expected to reduce the turnaround times for leasing mines and quarries. Facilitation of Private Sector participation is aimed at encouraging the private sector involvement in marketing and exporting minerals, like dolomite and gypsum, which are mined by state-owned agencies.
Lyonpo further emphasized that these policy changes and streamlined processes are designed to boost domestic industries and enhance export capabilities.
He said, “The above policy changes and easing of facilitation will not only promote the domestic industries for value addition but also increase the export of mines and minerals from Bhutan. Therefore, our Bhutanese private sector has a huge potential to participate and take a proactive role in the mining sector.”
In conversation with the Lyonpo, he also elaborated on the types of minerals available in Bhutan with export potential, including dolomite, limestone, marble, Ferro-silicon-grade quartzite, gypsum, talc, graphite, and coal. Specifically, dolomite and gypsum are primarily exported to India, while coal meets domestic industrial needs.
For metallic minerals like tungsten, lead, zinc, copper, gold, iron, and rare earth elements, the Department plans to conduct extensive studies through aero-magnetic and gravity surveys during the 13th FYP to better understand these resources.
Furthermore, it was revealed that the limestone and marble mines are predominantly leased for captive use in the cement production and mineral processing industries, respectively. Similarly, Ferro-silicon-grade quartzite mines are leased for mineral processing.
Quarries, surface collection, and dredging sites cater to both domestic and export markets and primarily support infrastructure development.
