IGF MINING POLICY FRAMEWORK ASSESSMENT Bhutan

The assessment finds that while Bhutan has a strong commitment to sustainability and environmental protection, its mining legal framework is fragmented and outdated. Key strengths include the integration of Gross National Happiness (GNH) and strict forest conservation. However, significant gaps exist in community consultation, fiscal transparency, and the adequacy of mine restoration financial assurances. The report recommends updating the Mines and Minerals Management Act 1995, improving geological data generation, and streamlining the permitting process.

• Bhutan's primary mining legislation, the Mines and Minerals Management Act (MMMA) 1995, is outdated and inconsistent with more recent regulations and guidelines, leading to a fragmented legal framework.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 a lack of communication and information sharing between the multiple agencies required for approval.
• Community engagement is inadequate, as there are no mandatory requirements for systematic consultation during the permitting process or throughout the mining life cycle, often leaving CSR outcomes dependent on local leaders.
• Bhutan maintains a high standard of environmental protection, with over 50% of its territory as protected areas and a constitutional mandate to keep at least 60% forest cover.
• The fiscal regime is clear and based on law, utilizing cost-based tax incentives like investment allowances rather than profit-based incentives, though it lacks an economic model to assess total impact.
• Financial assurance for mine closure via the Environmental Restoration Bond (ERB) is flawed because the calculation formula does not account for inflation, escalation, or actual estimated closure costs.
• Geological data is insufficient for the country's economic goals, with only approximately 59% of the country mapped and prospected at a 1:50,000 scale as of 2023.
• Mining operations negatively impact local communities through dust emissions and the degradation of natural spring water sources, while monitoring and enforcement are weak due to resource shortages.

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} }