Mining boom in Mongolia

With huge amounts of unexploited natural resources (gold, copper, coal and more) the Mongolian economy is estimated to grow massively in the years to come. But will it also benefit the people in Mongolia? Or will environmental damages and disruptions of traditional lifestyles prevail?


Father and daughter, resettled by the Oyu Tolgoi mine.

The highly intensive mining industry with its need for immense water resources can pose precarious risks to the livelihoods of the herders in the Gobi desert.

So far there is no scientific evidence to prove these fears - but neither is there evidence to dispel them.

See photos from our investigations in Mongolia on flickr.

Download the study Spirited away - Mongolia's mining boom and the people that development left behind (pdf).

EBRD investments

The EBRD finances the Ukhaa Khudag coal mine (within the Tavan Tolgoi coal deposit) and examines a potential investment in the Oyu Tolgoi gold and copper mine project.

Additionally, the Bank approved a USD 350 million loan for the Tsagaan Suvarga copper mine and loan and equity investments of 55 million in the Tayan Nuur iron ore mine.

The European Bank for Reconstruction and Development's investments in Mongolia are already heavily biased towards the natural resources sector. With more new mining projects appearing in the pipeline, the EBRD is not helping Mongolia to reduce its dependency on commodity exports.

Bankwatch suggests that rather than following the investment trend, the EBRD could better serve the Mongolian economy by diversifying its own portfolio in the country, e.g. through investments in agriculture, infrastructure, municipal and environmental services.

Online debate on the EBRD's mining strategy and mining projects in Mongolia

Following a discussion in the European Parliament on the EBRD's mining operations, Bankwatch organised a live-streamed google hangout with Mongolian campaigner Sukhgerel Dugersuren.

Watch the recording here:

Institution: EBRD

Theme: Energy & climate, Social & economic impacts, Other harmful projects

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Publications

The climate crisis and the role of Europe's public banks
Briefing

April 22, 2013

With each passing day, there is less chance that we will manage to keep the planet within the "safe" limit of two degrees Celsius global warming that would avoid disastrous climate change. The European Investment Bank and the European Bank for Reconstruction and Development can play a pivotal role in leveraging more private investment for sustainable energy. Both institutions are now reviewing their energy lending policies.

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Comments on draft EBRD country strategy for Mongolia (2013)
Policy comments

March 29, 2013

Bankwatch's comments focus on the aspects of mining and economic diversification; modernising infrastructure; energy efficiency, renewables and climate change; environmental, social and gender implications of the bank’s
activities.

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NGOs suggest key recommendations for Oyu Tolgoi copper and gold mine project in Mongolia
Advocacy letter

February 15, 2013

The letter, signed by 39 organisations, outlines ongoing concerns about the Oyu Tolgoi copper and gold mine in Mongolia, which is currently under consideration for financing by the European Bank for Reconstruction and Development. The project, one of the largest and most complex infrastructure investments proposed by the EBRD, poses a significant environmental and social risk to the local communities, as well as to the country at large.

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More questions than answers as new EBRD mining policy is chiseled out
Bankwatch Mail

December 14, 2012

After long delays and more than three years in the making, the European Bank for Reconstruction and Development (EBRD) finally in early November published its new mining sector policy. Yet both the consultation process and the final outcome have left “consulted stakeholders” disappointed.

A useless sham - Review of the Oyu Tolgoi Copper and Gold Mine Environmental and Social Impact Assessment
Study

December 14, 2012

The potentially EBRD supported Oyu Tolgoi copper/gold mine in southern Mongolia project poses significant adverse social and environmental impacts. This in-dept review - based on our own research as well as that of expert reviewers - shows that the Environmental and Social Impact Assessment (ESIA) is a non-starter and deeply flawed. The study is complemented by detailed expert analyses in five annexes.

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The EBRD's new Mining Operations Policy: A commentary on consultation process and content
Briefing

November 2, 2012

The long awaited EBRD Mining Operations Policy was released last week without much noise. It has taken the EBRD more than 3 years to prepare a document which had raised hopes it could improve the bank's activities in the mining sector. Most of these hopes, however, have not been fulfilled.

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Money, and the EU's climate agenda, to burn: EBRD mining strategy on a carbon collision course
Bankwatch Mail

October 9, 2012

With the EBRD due to sign off on its new mining strategy in November this year, 22 MEPs have pointed out in an open letter to European commissioners that given the state of the policy draft the bank risks contradicting the EU Resource Efficiency Roadmap and responsible mining principles. At risk of being compromised too, Bankwatch believes, are the EU's 2020 strategy and EU commitments on climate change and biodiversity protection.

Letter to DG Environment: Flaws in Environmental Impact Assessment of the Oyu Tolgoi mine in Mongolia
Advocacy letter

September 25, 2012

The Environmental and Social Impact Asessment (ESIA) for the Oyu Tolgoi mine in Mongolia has been delayed for years and comes at a time when the commercial operations are soon to begin. By including only the construction phase of the mine, the impacts of its actual operations are neglected with potentially devastating impacts on water reserves in the Gobi desert - especially because the interrelation of the deep (fossil water) and shallow aquifers that are used by herders has not been thoroughly assessed and is based only on modelling and assumptions with no monitoring data publicly available.

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EBRD investments in Mongolia's mining sector
Briefing

September 19, 2012

International mining companies and financial institutions want to help transform Mongolia into a modern mining nation. To realise this plan they are banking on the vast coal, copper and gold deposits in the Gobi desert. This paper examines the environmental and social risks connected to this approach and offers suggestions for the EBRD's engagement in the country.

Read more on our blog

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Greens call for active efforts by European Commission to ensure an improved EBRD mining strategy
Advocacy letter

July 12, 2012

The letter by the Green members of the European Parliament calls for active efforts of the EU representative at the European Bank for Reconstructoin and Development to ensure that the bank's new mining strategy endorses EU principles and standards for resource efficiency, biodiversity protection, poverty eradication, inclusive growth, transparency and public participation in the mining projects the EBRD supports.

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Report: Spirited away

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Images from our fact-finding mission