Mining

When one thinks of mining in Bhutan, the visual is often some Stone Quarries, Dolomite and Gypsum mines with trucks plying.

Given that the mining sector has come under much criticism from local communities and oversight bodies over the years, one cannot deny the sector does not enjoy a great domestic reputation.

However, when one looks at the top 10 exports of Bhutan by commodities all of them have to do with mining, be it finished products like ferro silicon and cement or raw ones like boulders and dolomite.

Without mining, Bhutan would not have much of an export sector and the trade balance would be even worse.

The economic impact of mining thus goes beyond the mining sector in terms of mineral rent and royalties, but also its role in industries.

The above economic impact has been achieved with only limited mineral exploration of around 34 percent and that too of patchy quality.

It is good now that the DGM will be conducting a huge aerial survey of the mineral deposits in Bhutan so that we have a better idea of the mineral wealth in the country.

There is a misnomer that mining is not in line with GNH, but that is only in the cases of poorly run or regulated mines. It is possible to have a large and well regulated mine in line with best international practices and GNH principles.

There is also a false perception that Bhutan never went for mining for environmental reasons. The truth is that we never went for mining because we did not have the resources to conduct large scale surveys and actually find out viable mines.

Bhutan has graduated from the Least Developed Country status meaning grants and soft loans of the past will become more difficult. We also have ambitious economic projects and targets. Large numbers of our youths have left for foreign shores in search of better economic opportunities.

It is imperative that Bhutan actively explore the mineral wealth under its soil and then extract what is economically viable in a responsible and sustainable way. Bhutan in fact can lead the way in setting up environmentally and socially responsible mining as an example to the world.

‘Mining is not everything, but without mining everything is nothing.”
 Henry Sanderson,