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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.

Institution: EBRD

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

Location: South Gobi area

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Publications

Preliminary comments and recommendations on the EBRD Draft Mining Strategy
Policy comments

May 14, 2012

As it is now, the EBRD foresees growth in the mining sector and sees its involvement as crucial in this process. At the same time the Bank recognizes that mining can cause significant adverse environmental and social impacts, including permanent ones, and that no single mine can be sustainable since it exploits a finite local resource.

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Letter to EBRD: Request for update on Centerra Gold Revolving Debt Facility
Advocacy letter

April 6, 2012

With the letter Bankwatch requests information about the status of the Centerra Gold Revolving Debt Facility and raises issues and findings from the recent reports on the company’s performance.

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Letter to EBRD: request to clarify conflicting information on mining projects in Mongolia
Advocacy letter

March 23, 2012

Following a fact-finding mission to Mongolia in June 2011, CEE Bankwatch sent a letter on August 18, 2011 with several questions for clarification to the EBRD. Additionally OT Watch submitted a paper on November 1, 2011 to representatives of the EBRD Board of Directors during their visit to Mongolia. While the EBRD replied to both of these, several issues still need clarification, as there is conflicting information.

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Silence is golden for some - the strange case of the EBRD's mining policy
Bankwatch Mail

March 13, 2012

It is coming up for three years since the EBRD's 2009 Annual Evaluation Overview Report “alerted Management to develop a new Operation Policy to cover all forms of non-energy related extraction of natural resources (mining policy)”. The EBRD does not appear to have been in any great rush with the preparation of this policy, and one has to wonder how long the bank will allow for the new policy to be consulted with the interested public. More importantly, how influential will public input be in setting the policy objectives and requirements?

Spirited away – Mongolia's mining boom and the people that development left behind
Study

January 30, 2012

The report, based on a fact finding mission to the Tavan Tolgoi and Oyu Tolgoi mines in Mongolia, examines the social and environmental impacts of mining in Mongolia. It offers a more in-depth look at the impacts on herders who have been displaced by the mining operations, the local effects of the construction of infrastructure and the mining operations themselves.

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The EBRD and coal. Dirty business unnoticed.
Briefing

October 3, 2011

Despite numerous international calls for the discontinuation of public support for fossil fuels in the face of climate change, the EBRD continues to finance the dirtiest among them, coal. What is more, the bank plans to expand its activities in this field. CEE Bankwatch Network urges the EBRD to phase out any support for coal industry making it more competitive and disadvantaging sustainable energy.

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News and updates

Report: Spirited away

Download as pdf

 

Images from our fact-finding mission