Environmental Concerns Loom as Mongolia Mines Boom

Southern Mongolia is fast transforming from a great wilderness to “Minegolia”, thought to contain the world’s biggest deposit of coking coal. Mega mines look set to enter Mongolia as the nation prepares to auction off extraction rights to overseas bidders. This extraction will triple the national economy by 2020 and propel its impoverished people to a global middle class.

With heavy mining activities ongoing, environmentalists are concerned with depleting scarce water resources, damaging grasslands and disrupting natural habitats. Already at Southern Gobi, the truck drivers are churning up so much dust that they have to turn on their headlights during daytime. On an encouraging note, officials from the United National Development Programme (UNDP) said that Mongolia engage in transparent, environmentally-sensitive resource extraction that will benefit the population-at-large. “It’s very exciting. Mongolia has the potential to do it right,” said Ajay Chhibber, UNDP assistant secretary general.

In the spotlight is Oyu Tolgoi, a supermine jointly operated by Ivanhoe and Rio Tinto. It is expected to produce 450,000 tonnes of copper annually for the next 50 years, a net worth of $200 billion at today’s prices. From next year onwards, the operators will extract and treat water from a fossil aquifer 45km away. The water is not linked to any lakes or watering holes and will be recycled under the company’s zero-discharge policy.

Rio Tinto is committed to set the highest international standards to minimise impact on the environment. They will build an asphalt road to reduce dust, with underpasses for migrating animals. In fact, the company has been lauded by conservationists for their efforts to make-up for the damage to nearby eco-systems and wildlife.

Attend Asia Mining Congress and join Mr Batkhuyag Dorjpurev, Director General, Mineral Resources Authority of Mongolia, together with other mining executives, government officials and investors in their presentations on Mongolia as the next mining destination. Register today.

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