The State Min­ing Cor­po­ra­tion handed over to DHI

Bhutan Times - - Front Page - THUKTEN NORBU

The Min­istry of Eco­nomic Af­fairs (MOEA) has handed over the cer­tifi­cate of in­cor­po­ra­tion of the State Min­ing Cor­po­ra­tion (SMC) to the Druk Hold­ing and In­vest­ment on the 31st of De­cem­ber 2014 at a func­tion held on the con­fer­ence hall of the Na­tional Assem­bly hall.

To take the SMC for­ward, DHI has put in place a small man­age­ment team. An im­me­di­ate ac­tion of the SMC will be to ex­plore po­ten­tial mar­kets for phylite and sub­se­quently mine the min­eral on a pri­or­ity ba­sis as de­sired by the MOEA. Ad­di­tion­ally, the SMC man­age­ment will also ini­ti­ate ex­plo­ration of gyp­sum, and coal to be sup­plied to Dungsam Ce­ment Cor­po­ra­tion Limited and Pen­den Ce­ment Au­thor­ity Limited. In terms of other min­er­als, the MoEA feels that the SMC should fo­cus on and ex­plore min­er­als of strate­gic im­por­tance. There­fore, the fu­ture plans and ac­tiv­i­ties of the SMC will de­pend on the fi­nal and ap­proved Min­eral De­vel­op­ment Pol­icy (MDP) in which strate­gic min­er­als will be de­fined. The SMC will op­er­ate mines based on best prac­tices of the in­dus­try, demon­strat­ing trans­par­ent al­lo­ca­tion of re­sources, us­ing the clean­est min­ing tech­nol­ogy, and al­ways

tak­ing into con­sid­er­a­tion the en­vi­ron­men­tal im­pact of the business.

In the Hon’ble Prime Min­is­ter’s 2014 State of the Tsa-Wa-Sum ad­dress he iden­ti­fied the min­ing sec­tor as one of the five jew­els of the Bhutanese econ­omy:

“the min­ing sec­tor has im­mense po­ten­tial to in­crease eco­nomic op­por­tu­ni­ties, in­crease jobs, gen­er­ate more rev­enue not just for the gov­ern­ment but also our lo­cal com­mu­ni­ties. And we can cap­i­tal­ize on this po­ten­tial with­out de­stroy­ing the en­vi­ron­ment by us­ing en­vi­ron­men­tally friendly tech­nol­ogy and en­forc­ing en­vi­ron­men­tal rules and reg­u­la­tions. A Min­eral De­vel­op­ment Pol­icy is un­der con­sid­er­a­tion by the gov­ern­ment to pro­vide strate­gic over­view and di­rec­tion to the min­eral sec­tor and to en­sure that min­ing has min­i­mum im­pact on the en­vi­ron­ment and lo­cal com­mu­ni­ties.”

Against this back­drop, the Royal Gov­ern­ment of Bhutan (RGOB) took the very im­por­tant pol­icy decision to form a State Min­ing Cor­po­ra­tion (SMC). In do­ing so, the Min­istry of Eco­nomic Af­fairs (MoEA) and Min­istry of Fi­nance (MoF) de­lib­er­ated the pros and cons of es­tab­lish­ing the SMC un­der ei­ther MOEA or DHI to de­ter­mine the most ap­pro­pri­ate par­ent agency for the SMC.

The core man­dates of the SMC have been drawn from the Terms of Ref­er­ence (ToR), which was jointly finalized by MoEA, MoF and DHI. The Ar­ti­cles of In­cor­po­ra­tion (AoI) for the SMC are based on the agreed ToR. And hav­ing ful­filled all reg­u­la­tory re­quire­ments of the Com­pa­nies Act of King­dom of Bhutan 2000, the SMC has been regis­tered as a new sub­sidiary company un­der DHI. To mark this im­por­tant mile­stone, the for­mal hand­ing over of the SMC from the gov­ern­ment to DHI was held on 31st De­cem­ber 2014.

SMC is ex­pected to ex­hibit lead­er­ship in the min­ing sec­tor by de­vel­op­ing ex­per­tise and hu­man re­sources and bring­ing in best tech­nol­ogy and best min­ing prac­tices. Dur­ing the launch of the SMC, Ly­onpo said that SMC is the hope to ful­fill the wishes of the King, the peo­ple of Bhutan and the Coun­try to de­velop a min­ing sec­tor that ben­e­fits the present and the fu­ture gen­er­a­tion.

Min­is­ter for Eco­nomic Af­fairs, Ly­onpo Norbu Wangchuk handed over the In­cor­po­ra­tion Cer­tifi­cate of the State Min­ing Cor­po­ra­tion (SMC) to the Chair­man of the DHI Dasho San­gay Khandu.

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