MANAGEMENT

The cost of mining in Mongolia

The Mongolian mining boom is driving huge economic growth but at the expense of social traditions.

Marion Lopez

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The finding was revealed in a two-year research by the University of Queensland into managing the impacts of minerals development on the Mongolian population and its traditional livelihoods.

While mining has led to unprecedented economic growth rating at a record high 17.5% in 2012, UQ said it has brought drastic social and environmental changes to the country, with the greatest impact observed on herder populations.

“Our findings suggest that unmanaged roads have impacted up to 400,000 hectares of area that supports herders,” researcher and geographic information systems specialist Phillip McKenna said. 

“This raises concerns for loss of access to pastureland and income.”

But UQ’s Dr Isabel Cane from the Centre for Social Responsibility in Mining Mongolia Research Hub said the recent minerals industry also had an upside for herders who have been impacted by a harsh summer and drought in 2009-10.

“Mining provides an alternative income source for herders during difficult seasons and extreme weather conditions,” she said.

“Improved public infrastructure through investments in hospitals, telecommunications and schools has also improved access to care and widened social networks.

“One of the most difficult issues for minerals development globally and within Mongolia is balancing or indeed ensuring that the positive impacts from mining outweigh the negative.”

Other mining-related impacts uncovered by researchers are environmental, with impacts recorded from coal mining in the South Gobi and coal shipments to China.

They are also social, with the recent economic growth failing to trickle down to broad-based development and widening the gap between the rich and the poor. Another observed factor by the team was an increase in gender-based violence in communities in close proximity to mining projects.

While mining is undoubtedly delivering economic and growth benefits to the country, the research shows a timely need for action to contain or balance out the negatives that come with it.

“A key challenge for Mongolia today is managing the impact and benefit of economic growth generated by the mineral wealth to create a solid foundation for sustainable development,” the centre said.

“Mongolia needs to increase the capacity and efficiency of key regulatory state institutions in the minerals sector to develop competitive strategies based on robust geo-scientific and socio-economic databases, and promote safe and responsible mining practices.”

The two-year research was funded by the Australian government’s Overseas Aid program, which funds projects that improve the quality and effectiveness of Australian aid in developing countries.

The research had a primary focus on gender issues in Mongolia and documented impacts on the population living in the Northern forest regions and the Southern Gobi Desert.

The team will present its findings at the Ministry of Foreign Affairs Mongolia with the International Mining for Development Alumni Forum on June 3.

The event will showcase Australian-Mongolian research and collaborations in responsible mining and development.

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