IGF MINING POLICY FRAMEWORK ASSESSMENT Bhutan

This report provides a comprehensive assessment of Bhutan's mining policy framework against the standards of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). Conducted between February and August 2024, the assessment evaluates Bhutan's readiness to implement sustainable mining practices across five themes: laws and institutions, financial benefits, socio-economic benefits, environmental management, and post-mining transition. While the report highlights Bhutan's strong constitutional commitment to environmental conservation and the integration of Gross National Happiness (GNH) into its development philosophy, it identifies critical gaps in legislative coherence, community engagement, and the technical capacity for monitoring and enforcement.

• Bhutan's primary mining legislation, the Mines and Minerals Management Act (MMMA) 1995, is outdated and inconsistent with more recent regulations and guidelines, leading to a fragmented legal framework.
• The mining permitting and clearance system is described as onerous and inefficient due to bureaucratic fragmentation and a lack of communication between the multiple agencies required for approval.
• Community consultation and engagement are inadequate and not systematically integrated into the permitting process or the overall life cycle of mining projects.
• Bhutan's fiscal regime is clear and based on law, utilizing cost-based tax incentives like investment allowances rather than profit-based incentives, but it lacks economic modelling to assess total impact.
• Environmental protection is a high strength, with a constitutional mandate to maintain at least 60% forest cover and over 50% of the territory designated as protected areas.
• Despite strong regulations, mining activities have negatively impacted local communities through dust emissions and the degradation of natural spring water sources.
• The post-mining transition framework requires Mine Restoration Plans (MRPs) and Environmental Restoration Bonds (ERBs), but the financial assurance formula is outdated and does not reflect actual closure costs or inflation.
• Geological mapping and surveying are insufficient to support the government's goal of economic diversification, with only approximately 59% of the country mapped at a 1:50,000 scale as of 2023.
• Monitoring and enforcement of mining operations are weak due to a shortage of financial resources, equipment, and competent professional personnel.

APA

Ortega, C., Naré, C., Taquiri, J., Ruete, M., Dhital, N., & Halim, T. (2025). IGF MINING POLICY FRAMEWORK ASSESSMENT Bhutan. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-03/bhutan-mining-policy-framework-assessment.pdf

Chicago

Ortega, Carlos, Clémence Naré, Jaqueline Taquiri, Marina Ruete, N.B. Dhital, and Thelma Halim. IGF MINING POLICY FRAMEWORK ASSESSMENT Bhutan. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-03/bhutan-mining-policy-framework-assessment.pdf.

Wikipedia

{{cite report |last1=Ortega |first1=Carlos |last2=Naré |first2=Clémence |last3=Taquiri |first3=Jaqueline |last4=Ruete |first4=Marina |last5=Dhital |first5=N.B. |last6=Halim |first6=Thelma |title=IGF MINING POLICY FRAMEWORK ASSESSMENT Bhutan |publisher=International Institute for Sustainable Development |date=March 2025 |url=https://www.iisd.org/system/files/2025-03/bhutan-mining-policy-framework-assessment.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ortega2025igf, author = {Ortega, Carlos and Naré, Clémence and Taquiri, Jaqueline and Ruete, Marina and Dhital, N.B. and Halim, Thelma}, title = {{IGF MINING POLICY FRAMEWORK ASSESSMENT Bhutan}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = mar, url = {https://www.iisd.org/system/files/2025-03/bhutan-mining-policy-framework-assessment.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }