59703 MONGOLIA Southern Gobi Regional Environmental Assessment January 2010 THE WORLD BANK © 2010 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, NW Washington, DC 20433 USA January 2010 All rights reserved. This study was prepared by the Social, Environment and Rural Development Unit (EASER) of the East Asia and Pacific Region, and was funded by the World Bank's Netherlands-Mongolia Trust Fund for Environmental Reform. Social, environment and rural development issues are an integral part of the development challenge in the East Asia and Pacific (EAP) Region. The World Bank's Sustainable Development Strategy for the region provides the conceptual framework for setting priorities, strengthening the policy and institutional frameworks for sustainable development, and addressing key environmental, social and rural development challenges through projects, programs, policy dia- logue, non-lending services, and partnerships. The EASER Discussion Paper series provides a forum for discussion on good practices and policy issues within the development community and with client countries. This series of publications is available online at www.worldbank.org/mn and www.worldbank.org/nemo. Suggested citation: Walton, T. 2010. Southern Gobi Regional Environmental Assessment. Mongolia Discussion Papers, East Asia and Pacific Sustainable Development Department. Washington, D.C.: World Bank. Contact details: Thomas Walton, Consultant, twalton@worldbank.org Cover photograph: Transmission line in South Gobi. Cody Sheehy This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Table of Contents Foreword ...............................................................................................................................................vii Acronyms And AbbreviAtions .................................................................................................................. ix Acknowledgments .................................................................................................................................. xi executive summAry ...............................................................................................................................xiii i. introduction .................................................................................................................................... 1 Objectives of the Regional Environmental Assessment ....................................................................... 1 Methodology ...................................................................................................................................... 2 Information Sources ........................................................................................................................... 4 2. development in the southern gobi region .................................................................................... 5 Base-Case Development Scenario ....................................................................................................... 5 Base-Case Demands on Natural Systems .......................................................................................... 14 High-Case Development Scenario .................................................................................................... 18 High-Case Demands on Natural Systems ......................................................................................... 18 3. environmentAl resources And their opportunities, constrAints, And vulnerAbilities ............. 23 Geology ............................................................................................................................................ 23 Climate Change ............................................................................................................................... 23 Hydrology ........................................................................................................................................ 24 Water availability ......................................................................................................................... 24 Present and projected water consumption ....................................................................................... 25 Vulnerability of water resources ...................................................................................................... 25 Soils ................................................................................................................................................ 26 Opportunities ............................................................................................................................... 26 Constraints and vulnerabilities ...................................................................................................... 27 Vegetation ........................................................................................................................................ 27 Opportunities ............................................................................................................................... 28 Constraints and vulnerabilities ...................................................................................................... 29 Wildlife ............................................................................................................................................ 29 Opportunities ............................................................................................................................... 29 Constraints and vulnerabilities ...................................................................................................... 29 iii Mongolia ­ Southern Gobi Regional Environmental Assessment Protected Areas ................................................................................................................................. 32 Opportunities ............................................................................................................................... 33 Constraints and vulnerabilities ...................................................................................................... 34 Physical Cultural Resources .............................................................................................................. 34 Opportunities ............................................................................................................................... 35 Constraints and vulnerabilities ...................................................................................................... 36 4. synthesis: evAluAtion oF the development scenArios And recommendAtions For environmentAl And nAturAl resource mAnAgement ............................................................. 37 The Base-Case Scenario .................................................................................................................... 39 Impacts of traffic and transport ...................................................................................................... 39 Impacts of mine dewatering and water consumption ....................................................................... 42 Impacts of power generation and transmission ................................................................................. 43 Impacts of planned and unplanned urban development ................................................................... 48 The High-Case Scenario ................................................................................................................... 48 Impacts of traffic and transport ...................................................................................................... 48 Impacts of mine dewatering and water consumption ....................................................................... 49 Impacts of power generation and transmission ................................................................................. 50 Impacts of planned and unplanned urban development ................................................................... 50 5. institutionAl ArrAngements For implementAtion oF the reA ..................................................... 57 Soum Government ........................................................................................................................... 57 Aimag Government .......................................................................................................................... 61 Ministry of Nature, Environment and Tourism ................................................................................ 63 Capacity and readiness .................................................................................................................. 64 Ministry of Roads, Transportation, Construction and Urban Development ...................................... 64 State Specialized Inspection Agency .................................................................................................. 65 Capability and readiness ............................................................................................................... 66 Mining Companies and other Private Sector Entities ........................................................................ 66 NGOs in the Mining Sector ............................................................................................................. 67 6. summAry oF recommendAtions ....................................................................................................... 69 Strengthening Capacity of Existing Government Agencies................................................................ 69 Creating New SGR Institutions ........................................................................................................ 70 Developing Standards and Guidelines .............................................................................................. 70 Improving Mine Permit and EIA Procedures .................................................................................... 70 reFerences.............................................................................................................................................. 71 list oF tAbles Table 3.1: List of Threatened Vertebrate Species in SGR .....................................................................30 Table 4.1: Impact Evaluation Rules ....................................................................................................38 Table 4.2: Summary of Impacts on the Natural Environment of the Base-Case Scenario ....................44 Table 4.3: Summary of Impacts on the Natural Environment of the High-Case Scenario ...................52 Table 5.1: Summary of Institutional Responsibilities for Impact Management Measures ....................58 list oF Figures Figure 1.1: The Southern Gobi Region ..................................................................................................3 Figure 2.1: The Mines in the Base-Case Development Scenario .............................................................6 iv Table of Contents Figure 2.2: Planned Transportation Infrastructure for the Base-Case Scenario ........................................7 Figure 2.3: Population Projections for Khanbogd Soum ......................................................................11 Figure 2.4: The Mines in the High-Case Scenario ................................................................................19 Figure 2.5: Infrastructure for the High-Case Scenario ..........................................................................21 Figure 3.1: Mining and Exploration Licenses in Southern Gobi Region (May 2008) ...........................24 Figure 3.2: Protected Areas, Important Bird Areas and Overlap with Boundaries of Mining Licences ............................................................................................................33 list oF photos Photo 1: Open pit mining at Tavan Tolgoi .........................................................................................6 Photo 2: Cashmere goats are becoming increasingly common in the SGR ..........................................8 Photo 3: Wells are crucially important for livestock herding ...............................................................9 Photo 4: A well in Omnogovi...........................................................................................................10 Photo 5: Khanbogd Soum Center ....................................................................................................12 Figure 6: Trucks transporting coal across the desert ...........................................................................13 Photo 7: `Desert Ginseng' or Cistanche deserticola is a parasite on Saxcaul trees in SGR and is collected for medicinal purposes to such a degree that it is now placed on Appendix 2 of CITES ..........................................................................14 Photo 8: The disposal of solid waste, as here outside Dalanzadgad, will become a major issue in the population centers of SGR.....................................................................16 Photo 9: Water kiosk in Dalanzadgad ...............................................................................................20 Photo 10: Privately irrigated vegetable garden in Huldt Soum, Dundgovi ..........................................26 Photo 11: In wet years the vegetation in the SGR can be abundant as here in Dund Gov in an area dominated by Anabasis brevifolia ........................................................................27 Photo 12: Many parts of the SGR are very dry yet some hardy plants can still survive ........................28 Photo 13: The Asian Viper Gloydius halys is quite common in the SGR ..............................................30 Photo 14: Group of gazelles in the SGR .............................................................................................31 Photo 15: Wild ass or khulan in southern Omnogovi .........................................................................32 Photo 16: Rock formation in Khanbogd Soum, Omnogovi Aimag ....................................................35 Photo 17: Restored main stupa at Demchig Monastery ruins, Khanbogd Soum .................................36 Photo 18: Stockpile of coal .................................................................................................................42 Photo 19: Schools will have to be provided as the population expands and demands increase .............43 Photo 20: A water kiosk in Huldt Soum from which a herder who lives 40 km away is collecting ......51 Photo 21: Female houbara bustard photographed during a recent NEMO-RTZ financed survey in SGR......................................................................................................63 Photo 22: Coal trucks haul coal to China ...........................................................................................65 v Foreword T he World Bank's 1996 publication on The SGR REA has taken the approach of Regional Environmental Assessments defining two development scenarios. The base-case (REA), defined them as tools "to help assumes that the operating mines will continue development planners design investment and expand according to their existing plans, that strategies, programs and projects that are environ- the large new mines in or near their initial stages mentally sustainable for a region as a whole. REAs of development will proceed into production, and take into account the opportunities and limitations that all necessary ancillary developments proceed. represented by the environment of a region and as- The high-case adds in further expansions of those sess on-going and planned activities from a regional mines, plus the development of a number of perspective". It is precisely for that purpose that this proposed mines and a major new cement factory, REA has been produced. plus some large-scale infrastructure projects. The REA then examines the different impacts--indi- Somewhat over two years ago the Mongo- vidual and cumulative, both direct and indirect. It lian government approached the World Bank also considers the institutional capacity to manage to request assistance in their development of the impacts identified. The report concludes that appropriate plans for the mineral-rich southern planning and implementing a development path Gobi region (SGR). The SGR faces many develop- in the SGR that is sustainable is a major challenge. ment constraints such as poor water availability The stakes are high, but then so are the chances and quality, extreme climatic events, poor soils, that Mongolia can make wise and appropriate a scattered and highly mobile human popula- decisions that demonstrate a pragmatic sensitivity tion, wildlife which ranges over enormous areas, towards the development of globally-significant great distances to sizeable markets, and weak local mineral resources in an ecologically- and socially- capacity. We have responded to the request by as- fragile area. This would be an exciting demonstra- sisting with the formulation of the Southern Gobi tion for many other countries. We hope that the Infrastructure Strategy (to be published shortly), analyses in this report will support and inform the a series of background papers, some of which will further discussions on this topic. be appearing in this Mongolia Discussion Papers series, and this REA. vii Acronyms and Abbreviations ALAGAC Administration of Land Affairs, Geodesy and Cartography CO Carbon monoxide CO2 Carbon dioxide EIA Environmental impact assessment EMP Environmental management plan ha Hectare km Kilometer m3/day Cubic meters per day MASIA Mongolian Academy of Science, Institute of Archeology MFA Ministry of Food and Agriculture MME Ministry of Mines and Energy MNET Ministry of Nature, Environment, and Tourism MNMA Mongolian National Mining Association MoH Ministry of Health MRPAM Mineral Resource and Petroleum Authority of Mongolia MRTCUD Ministry of Roads, Transportation, Construction and Urban Development Mt/yr Million tons per year MW Megawatt NEMA National Emergency Management Agency NOX Nitrogen oxide PM Particulate matter REA Regional environmental assessment RMI Responsible Mining Initiative (for Sustainable Development) ix Mongolia ­ Southern Gobi Regional Environmental Assessment SGR Southern Gobi Region SMIS Southern Mongolia Infrastructure Strategy SO2 Sodium dioxide SPA Strictly protected area SPM Suspended particulate matter SSIA State Specialized Inspection Agency (recently changed to GASI ­ Government Agency for Special Inspection) µg/m3 Micrograms per cubic meter x Acknowledgments T he report was written by Thomas October 2008, and a field mission to the Southern Walton with inputs from Tony Whit- Gobi Region in November 2008. Other informa- ten, Oyuna Finch, Judith Schleicher, tion was obtained from various mining companies Giovanna Dore, Dennis Sheehy, and in Mongolia including Ivanhoe Mines Mongolia, Erdene-Ochir Badarch. Inc., and its consultant EcoTrade; Rio Tinto; Energy Resources LLC; and Southgobi Sands. We are grateful to the authors of background Agencies of the Mongolian Government cooper- studies and strategy papers: ated in the reporting, including the Ministry of Nature, Environment and Tourism, the Ministry Albert Tuinhof and Buyanhishig Nemer of of Roads, Construction and Urban Development, Acacia Water (water resources) (Tuinhof and the State Specialized Inspection Agency, and the Nemer, 2010); Mongolia Academy of Sciences. And information Dennis P. Sheehy, Cody M. Sheehy, D. was provided by non-governmental organizations, Bayartsogt and D. Daalkhaijav (livestock and including MercyCorps, Centre for Policy Re- development) (Sheehy et al. 2010); search, Wildlife Conservation Society, Responsible Denzel Hankinson and David Ehrhardt of Mining Initiative for Sustainable Development, Castalia (urban infrastructure); Mongolian National Mining Association, and Richard Bullock of Bullpin Consulting (land Wildlife Science and Conservation Center. transport); William Derbyshire of Economic Consulting This report was discussed in draft form at Associates (electricity); stakeholder workshops held in Ulaanbaatar and Michael Warlters, World Bank (regional infra- Dalanzagdad in April 2009 and has been revised structure strategy) (World Bank, 2009); to reflect comments received. Thanks are due to all L. Bayan-Altai (community concerns). those who joined those discussions. The report draws on information from work- Workshop proceedings and background stud- shops held in Mongolia, in May, September, and ies are available at www.worldbank.org/southgobi. xi Executive Summary T he primary objective of the Southern supply groundwater for processes at Oyu Tolgoi Gobi Regional Environmental Assess- and the Energy Resources LLC mine; and housing ment (REA) is to provide guidance for for workers and their families. Large infrastructure sustainable management of environ- to support the base-case includes improved roads mental resources in the future development of to transport coal and other mine outputs south to the Southern Gobi Region (SGR), development the China border crossings and, somewhat later, that will be led by rapid expansion of mining. rail lines roughly parallel with the roads. The REA defines two development scenarios--a base-case and a high-case--and explores their direct The high-case scenario includes the mines, and indirect impacts on the natural environment, ancillary facilities, and infrastructure in the taking into account the opportunities, constraints, base-case, with additional expansions; plus a and vulnerabilities of the Gobi natural systems; copper-molybdenum mine at Tsagaan Suvarga, the individual and cumulative direct environ- coalmines at Baruun Naran and Eldev, a large mental impacts and potential indirect impacts of mine-mouth power plant at the existing Shivee the planned development; and, at a general level, Ovoo coal mine, uranium in situ leach projects in the institutional capacity to manage the impacts. the northern tip of Dornogovi, and a large cement The REA target audience includes Government factory at Khukh Tsav. New major infrastructure officials at central, regional, and local levels; included in the high-case scenario consists of a rail private sector investors and the consultants who connection from Tavan Tolgoi northeastward to are engaged for project design and environmental the Trans-Mongolia Railway and water pipelines impact assessment; development finance organiza- from rivers to the north of SGR. tions; and Mongolian civil society. The natural resources and environmental The base-case scenario assumes that current characteristics of the SGR present unique op- mining operations will continue, expanding portunities and constraints for development. according to their respective plans, and that the The opportunity to exploit its abundant mineral large new mines that are in or near initial stages wealth--chiefly coal, gold, copper, molybde- of development will proceed into production. The num, fluorite, and uranium--is the basis for the new mines are the copper and gold mine at Oyu development plans that warrant this REA. Besides Tolgoi, the coal mine being developed by Energy the mineral products themselves, the extensive Resources LLC at Tavan Tolgoi, and a larger coal deposits of thermal coal will support electric mining operation at Tavan Tolgoi. Minimal ancil- power generation in amounts considerably larger lary facilities required for the new mines are one than Mongolia requires, thus available for export coal-fired power plant, probably at Oyu Tolgoi; to neighboring China. The desert and desert well fields and connecting transmission mains to steppe vegetation supports animal husbandry in a xiii Mongolia ­ Southern Gobi Regional Environmental Assessment unique, semi-nomadic style that has existed in the Natural food chains are of course also based on SGR for centuries and that may be enhanced but the productivity of the desert soils. Large wild at the same time threatened by gradual commer- herbivores compete with domestic herds for food cialization. Outputs include hides, meat, and dairy and water and are, in addition, sensitive to distur- products as well as cashmere and camel's hair. bance by human activities, especially those related Ecotourism, because of the region's wildlife that to transportation and water resource development. includes several rare species, is part of the slowly Commercialization in the livestock industry, growing tourism sector. incentives to increase the numbers of goats in the herds, and individual herders' efforts to increase Foremost among the constraints is water income are changing traditional herding patterns availability, which is closely linked to the SGR and having additional impacts on the large wild climatic extremes--hot, dry summers; and long, herbivores as well. cold winters. Precipitation is low and seasonal, there are no perennial surface streams, evaporation The direct impacts of mine construction rates are high, and groundwater recharge is about itself, whether in the base or high-case, are of one millimeter per year. There are large reserves of relatively low importance on a regional scale; fossil groundwater that have only been partially they result in conversion of 15,700 and 30,000 identified and assessed, but because they are not hectares, respectively. In the long term, proper recharged, they are a nonrenewable resource that implementation of mine reclamation plans will be must be used with care. essential. Considerably larger are the areas of land that will be affected by mine dewatering, where With the extremes of climate come weather lowering of the surface water table will dry up the phenomena that can be catastrophic, especially springs and shallow wells and stress the few tree for herder families and their flocks: prolonged species that grow in the desert and desert steppe droughts (dzud) in winter that kill livestock in soils and other plants dependent on the water large numbers because food and water become table. Even impacts of this magnitude--approxi- inaccessible due to low forage production in the mately 31,400 and 62,800 hectares affected in the previous growing season, or prolonged ice or snow base and high-case scenarios, respectively--are not cover, dust storms, and flash floods. Wild animals of great consequence in the context of the entire are also vulnerable to the climatic extremes. Some SGR, but they can be quite significant on a local climate change predictions for Mongolia sug- or subregional scale in the context of herders and gest that some of these extremes will worsen in their animals, resident and migratory wildlife, and frequency and duration, while others may become land degradation. moderate. Water supply needs for mining and mine-relat- Soils are thin and not readily arable; moreover, ed developments can likely be met by resources the thin surface crust that forms on them and within the SGR up to 2020 and perhaps beyond protects what little moisture and humus they under the base-case. The mine operations contain is easily disturbed by vehicle traffic and themselves are by far the largest water users, and sharp-hooved animals, mainly goats, facilitating whether the extraction of fossil groundwater as entrainment by vehicles and in dust storms and planned by the mining companies is the best use exacerbating land degradation that is recognized as of this nonrenewable resource has to be carefully one of the major SGR environmental challenges. weighed. Gaps in information on groundwater Pastureland is plentiful but low in plant produc- resources need to be filled to support more ac- tivity. This, together with scarce water sources, curate predictions and planning, and this warrants necessitates rotation of herds from one location to the establishment of a specialized agency to collect another and imposes natural limits on herd sizes and consolidate information and evaluate propos- and composition that have been respected over the als and plans for allocation of SGR groundwater centuries. resources. xiv Executive Summary Under the high-case, and perhaps even the base- and wildlife can only worsen. In the interest of case, additional water sources will be needed, transport efficiency and economics, construction and there are two schemes already under con- of improved roads and, eventually, railroads will sideration to transfer surface water from central occur before truck traffic reaches such high vol- Mongolia. This raises two very significant issues umes; both will mitigate some of the impacts de- of development planning. First, it means that one scribed but, at the same time, may become more of the natural limits to growth in the SGR, water significant barriers to the movement of livestock availability, is going to be exceeded. A decision and, especially, wildlife. If however a railroad line of this magnitude demands a precautionary ap- passes through the Small Gobi Strictly Protected proach to ensure that such growth is in all ways Area or results in its partial degazetting, the im- sustainable, recognizing not only present condi- pact on two threatened large mammal species-- tions but also the future under changed climatic the Asiatic Wild Ass that is regionally and globally conditions. Second, the transfer of water may have endangered, and the black-tailed or goitered opportunity costs in terms of constraints on future gazelle that is regionally and globally vulnerable-- development in the river basins where other con- will likely be severe. ditions are more favorable for sustainable growth. Intensive data collection and analysis as well as Population will increase dramatically in the debate by experts and policymakers is essential on soum centers in the vicinity of the mines. Not both counts before plans to move to the high-case all of the mining companies have disclosed hiring scenario in SGR and construct the water pipelines and housing strategies, but based on the informa- become commitments. tion available, total employment at the base-case mines when in full operation is projected to be Coal transport is already having significant more than 2,500. Some of the miners will work impacts. Coal dust that spreads downwind from on a "fly-in, fly-out basis", but most will be living the coal-loading points at the mines and from integrated in the soum centers or in gated com- unloading and reloading at coal storage and trans- munities constructed by the mining companies. shipment yards near the Chinese border has seri- Assuming a household size of four, the number ous local impacts. The most significant regional- of miners and family members in SGR in the scale impact from the standpoint of residents is base-case will be between 12,000 and 16,000. In the dust stirred up by heavy trucks travelling on the high-case, this number could exceed 40,000. unimproved roads; it affects quality of life and These numbers will not be net increases in the the health of humans and livestock. Travel in new population of the SGR or even in the affected tracks across the desert soils adds to land degra- soums; however the distribution of employment dation, which is further exacerbated when plant between present residents and in-migrants cannot growth is retarded by deposition of dust around be predicted, dependent as it is on mining compa- plant stems and on leaves. The physical presence nies' recruitment strategies and the availability in of the trucks and their noise and dust interfere the region of interested persons with the desired with movement of wildlife; for example gazelle skills. A significant population increase can be and Asiatic wild ass no longer move between the expected, and it will be augmented by the influx two sections of the Small Gobi Strictly Protected of additional people who come to the area either Area because of traffic volume on the road that as employees of industries that cater to the min- passes between them to the border crossing. ing operation or as job seekers or entrepreneurs With truck volume expected to increase (from in search of business opportunities. Based on a 600 per day in 2009) to 1,300 per day under the sample from global experience with mine devel- base-case--or nearly one per minute in the most opment, the REA assumes for planning purposes intensively used corridor from Tavan Tolgoi to the that influx will be equal to the number of miners border at Gashuun Sukhait--or 2,000 per day in and family members. The results are that the total the high-case, these impacts as well as the fre- mining-related populations in SGR under the quency of accidents involving vehicles, livestock, base and high case, respectively, will be as much xv Mongolia ­ Southern Gobi Regional Environmental Assessment as 30,000 and 80,000, respectively.1 To the extent the base-case and at Shivee Ovoo in the high-case, that some of the people that will be engaged in and the plants should be designed so that they can or attracted to mining are already living in the operate without degrading air quality or produc- region--a number that has not been estimated-- ing acid precipitation in the region. not all of that increase will translate into net population growth in SGR. Mitigation measures are available for many of the likely impacts. Offsets should be required for The new base-case population will require those that cannot by mitigated. Where dewatering 5,300 new housing units. It will consume affects springs and wells, alternative water sources water and generate wastewater at the rate of can be provided and/or other existing sources 2,500 cubic meters per day (m3/day) of water, in the area can be enhanced and protected. The require 5 megawatts (MW) of power generation impacts of dewatering on trees should be moni- and heating, and produce 12.6 tons per day of tored and mitigated through irrigation or offset by solid waste. All of these amounts are more than replanting and protection. Reviewers of environ- doubled in the high-case scenario. There are pres- mental impact assessments and permit applica- ently no wastewater treatment plants in soum tions for mines should pay attention to whether centers, but on-site systems will not function well appropriate water-conserving technology is being at the new population densities and will pollute applied, and the impacts of fossil groundwater groundwater that may be used for drinking. Solid extraction should be carefully monitored. Major waste is already not well managed at the soum decisions regarding water resource allocation both and aimag centers, and the problem will worsen within the SGR and from river basins to the north with increased volume, leading to groundwater should only be made when adequate information pollution, smoke and fire, odors, vermin and dis- is available and through agencies that have the ease vectors, and aesthetic impacts. Construction necessary geographic reach, responsibility, author- and operation of urban infrastructure, including ity, and provision for full stakeholder representa- roads, municipal service buildings, heating and tion to deal with the issues comprehensively. power plants, will all have local impacts that need to be managed. In addition, so-called induced Reducing the present impacts of the transporta- development will follow in soum centers, near tion of coal and other mine outputs involves a border crossing points, and along the hauling number of steps, chief among which is improv- routes--some desirable, such as markets, pharma- ing the routes currently used and, when volume cies, vehicle repair shops, hotels and restaurants; permits or necessitates, constructing rail connec- and some undesirable, including drug dealing, tions at least to the China border-crossing points prostitution, and illegal trade in endangered at Gashuun Sukhait and Shivee Khuren. It is plants and animals. imperative in both cases of roads and railroads that an adequate number of effective wildlife crossings Air quality in SGR is routinely well within the (underpasses or overpasses) be appropriately lo- ambient quality limits of Mongolia, with the cated and properly designed and constructed, oth- exception of the standard for suspended particu- erwise the mitigation of present transport impacts lates that is violated along coal transport routes will come at the expense of further fragmentation and during dust storms. Increased truck traffic of wildlife habitat and reductions in populations will add substantially to air emissions (e.g., 420 of large herbivores. Research should commence kilograms per day of nitrogen oxides (NOX) and immediately on the movement patterns of animals 290 kilograms per day of carbon monoxide (CO) that may be affected and on arrangement for plus nearly 3 tons/day of carbon dioxide (CO2): the extent to which air quality will be degraded cannot be determined without dispersion models. 1 As an indication of how dramatic the population increases will Dispersion modeling should be required for the be on a subregional scale, approximately 3,000 persons lived in Khambogd Soum Center in 2008. Under the base-case, by power plants at Oyu Tolgoi and/or Tavan Tolgoi in 2013 there could be15,000 inhabitants. xvi Executive Summary crossings that have worked elsewhere. Particular systems, for example, could be shared. Where the attention is needed to restore and protect the integrated community model is chosen, it is in the viability of the Small Gobi Strictly Protected best interests of the mining companies to assist Area, which is overlapped by two important bird their employees in purchasing or constructing areas and which is the habitat of at least two large suitable homes and to give some assistance to local mammal species that are in regionally endangered governments in providing for municipal services. or vulnerable status. Livestock crossings will also However, it is clear that even for the mining fami- be required to avoid unduly restricting the move- lies and much more so for the additional influx ments of herds moving from one pasture area to population, local governments urgently need to another, but these are easier to design since the be strengthened with adequate authority, qualified animals can be guided through them by herders. staff, equipment, training, expert advice, and bud- What is sufficient for herded animals will not be gets for both large capital expenditures (water and so for wild animals. Appropriate driving rules and wastewater systems, landfills, heating and generat- traffic regulations need to accompany the infra- ing plants) and for operations. structure improvements; they can be put in place and enforced by mining and trucking companies The largest challenge remains that of planning and police. and implementing development in the SGR that is sustainable. This has to take into account Aimag and particularly soum governments are collectively all of the constraints imposed by the unprepared to handle the population increases region's natural resources and all of the present that will result from even the base-case develop- and potential demands on those resources on a ment scenario. They need land use plans and regional scale. Development that overcomes one zoning ordinances to guide the planning of new constraint--water supply for mining, for exam- housing and supporting businesses and services. ple--will ultimately be unsustainable if the limits Mining companies have been assisting with such of water resources available for public supply planning in several soum centers. Where a mining and livestock are exceeded as a result of mining- company is using a gated community to house induced population growth. It is clear that a new its workers and their families, the company will agency is needed to coordinate development be providing housing and infrastructure, but the planning and decisionmaking. Its membership latter needs to be coordinated with local gov- should encompass aimag and soum govern- ernment. Wastewater collection and treatment ment, private sector, and civil society. It should have access to whatever expertise it requires for its deliberations, from the Academy of Science, other academic institutions, central government agencies, specialized nongovernmental organiza- tions, and consultants. xvii I. Introduction Nature to be commanded must be obeyed. -- Francis Bacon (Novum Organum, 1620) M ongolia's Southern Gobi Region guidance for sustainable management of environ- (SGR) is vast and richly endowed mental resources in the future development of with mineral wealth, but served the Southern Gobi Region--development that is by few transport links. One of going to be led by rapid expansion of mining as the most sparsely populated areas on Earth, the called for in the Action Plan of the Government SGR supports a small human population, which of Mongolia for 2008­2012 (State Grand Khural has grown slowly but is poised to accelerate of Mongolia, 2008): "[to] Accelerate the develop- rapidly, and is habitat to many threatened plant ment and reform the legal environment of miner- and animal species. Many of the inhabitants are als sector, bring forward a pragmatic solution to livestock herders who make their livelihood fol- commercialize the strategic and major minerals lowing centuries-old traditional practices. There is sites, and share the profits with the citizens." In so a trend to more commercialized animal husbandry doing, the REA takes into account: in the SGR since Mongolia began the transition to a privatized market economy, but this is not Opportunities, constraints, and vulnerabilities the reason for the population growth. Most new of the SGR natural systems with respect to arrivals are directly associated with or attracted by development impacts and impacts of climate the mining industry, which is expanding rapidly change; in the Region as a matter of government policy as Individual and cumulative direct environmen- well as, of course, economic opportunity. Ecotour- tal impacts of SGR development plans; ism is also growing in the Region, but its impact Potential indirect impacts (e.g., impacts of in- on development thus far has been small. It is the duced development, planned and unplanned); establishment of mines, together with their associ- and ated infrastructure needs and human population General capacity of the regulatory framework movements that could cause significant impacts and institutional structure to manage develop- on the SGR environment. ment impacts. The REA is intended to promote strategic Objectives of the Regional thinking with regard to a desirable development Environmental Assessment future for the SGR and to encourage consideration of development impacts in an integrated way. It The objective of the Southern Gobi Regional does so by describing likely development scenarios Environmental Assessment (REA) is to provide in terms of their demands on natural resources and 1 Mongolia ­ Southern Gobi Regional Environmental Assessment the environment, and by evaluating their regional golia Infrastructure Strategy (SMIS). The REA impacts for stakeholder consideration. The REA reflects heavily on the SMIS and its companion is prepared for a primary audience of officials working papers in framing the mine development responsible for development planning, imple- scenarios; identifying the necessary infrastructure mentation, monitoring, and oversight at all levels to support it; and describing associated outcomes of government. It should also be useful to active such as population growth, waste generation, traf- and potential investors, particularly during the fic, and demand for municipal services. The SMIS processes of assessing the environmental impacts coverage of the environment (chapter 8) is based of their projects and planning and designing the substantially on REA findings. facilities and procedures to mitigate and monitor those impacts. International development banks, bilateral donors and lenders, and other develop- Methodology ment finance organizations should find it useful as a resource for evaluating their supported activities, Coverage. The SGR consists of three aimags (prov- or in selecting aspects of environmental manage- inces): Dornogovi, Dundgovi, and Omnogovi (Fig- ment for future funding. Research institutes and ure 1.1). They occupy a combined area of 350,000 civil society organizations will see in the report square kilometers and in 2007 had a total popula- many of their concerns about the future of the tion of 153,000. Approximately 40 percent of the SGR environment, along with suggestions for ad- inhabitants live in towns--the three aimag centers dressing many of them. of Mandalgovi, Dalanzadgad, and Sainshand, and the centers of the 41 soums (districts) into which the The REA takes into consideration the follow- aimags are divided (Acacia Water, 2009). ing main strategies articulated by the Ministry of Nature, Environment and Tourism (MNET) for Development scenarios. The principal SGR eco- management of the environmental issues associ- nomic activity has been livestock farming, but the ated with mining investment and infrastructure future development is going to be based primar- development in SGR (Gantulga, 2008): ily on exploitation of the Region's rich mineral resources, mainly coal, copper, molybdenum, Complete a detailed survey of SGR ground- gold, and fluorospar. Mineral exploration licenses water resources in order to improve the cover 55 percent of the area (BirdLife Asia, 2008), estimates of sustainably exploitable water but it is of course unrealistic to anticipate that all resources; explorations will discover economically exploit- Establish a groundwater monitoring network; able deposits or that mining will proceed at every Reverse increases in concentrations of dust; deposit that is discovered. For the purposes of Weaken the intensity of desertification; the REA, two scenarios have been constructed. Make biological and ecological surveys of The base-case assumes that current mining opera- keystone species in Gobi Desert; tions will continue and that the large mines that Develop suitable conservation and manage- are in or near initial stages of development will ment measures for rare animals and plants, proceed into production. The high-case takes a including biotechnological methods of breed- more optimistic view, adding to the base-case a ing to maintain a healthy gene pool, and co- group of additional mines that could be developed management of conservation programs with within the next 10 to 15 years. For both scenarios, participation of local stakeholders; and the ancillary infrastructure needed to support the Develop strategic environmental assessment mining activity is projected, including transporta- procedures and landscape and species conser- tion systems to carry products to shipping points vation policies. or markets. There is a close, two-way linkage between the Demands and impacts on natural systems. REA and the World Bank (2009) Southern Mon- For each scenario, estimates of natural resource 2 Introduction: Figure 1.1: The Southern Gobi Region demands and impacts on natural systems have been environment that are most important for devel- prepared. These demands include those of so-called opments in the two scenarios and/or are most induced development--growth in population and vulnerable to their potential impacts: business activity that will occur in response to mine development, and the resulting planned and Groundwater in confined and unconfined unplanned construction of housing, shops and of- aquifers, fices, and supporting infrastructure--that has to be Springs and wells, estimated for each scenario. Among the parameters Soils, considered are land conversion for the project and Grazing land, ancillary infrastructure; impacts of mine dewatering Vegetation, and disposal of tailings and waste rock; abstraction Wildlife, of water; power generation and transmission; trans- Threatened species and their habitats port; housing; solid, liquid, and hazardous waste Protected areas, generation; vibration and noise; light, barrier, and Archaeological and cultural resources, and habitat fragmentation effects; and air emissions. Regional air quality. These estimates have to take into account existing developments such as Tavan Tolgoi. The vulnerability of the Region and its po- tential developments with regard to the effects of Relevant environmental and natural resources. climate change are also considered in this part of The REA focuses on those features of the natural the REA. 3 Mongolia ­ Southern Gobi Regional Environmental Assessment Institutional framework to manage development Information Sources impacts. While institutions are not the central focus of this REA, it is important to know which The REA draws heavily from companion papers agencies are responsible for the various functions prepared on key aspects of development: live- necessary to manage and monitor development stock, water, transport, power, urban infrastruc- impacts, from enforcement of environmental regu- ture, and protected areas (see www.worldbank. lations and laws regarding wildlife and protected org/southgobi, Sheehy, 2010, and Tuinhof, 2010). areas to planning and management of land develop- Environmental impact assessments for the large ment at local-level government. It will also be im- mines at Tavan Tolgoi and Oyu Tolgoi provided portant to know if there are items missing--either a great deal of information on the individual regulations to control certain activities or agencies projects, the resources they may affect, their likely to carry out certain functions such as regional water impacts, and their plans to manage those impacts. resource management--and if there are weaknesses Special purpose studies conducted by Ivanhoe in capacity that ought to be remedied in order to Mines Mongolia, Inc. on water and population improve the effectiveness of the existing structure. influx were consulted, as were various World Bank papers and government reports mentioned Stakeholder consultation process. The REA in the text and References. While the REA does was first issued as a discussion draft to serve as a not itself contain a comprehensive review of the basis for raising stakeholder awareness, to collect current state of performance in and capacity for additional relevant information from stakeholders, environmental management in the mining sec- to initiate consideration of the implications and tor, this topic is covered in detail in Mongolia: outcomes of possible development, and to obtain a Review of Environmental and Social Impacts in stakeholder views on a sustainable and accept- the Mining Sector (World Bank, 2006). Scholarly able development future for the SGR. The report papers were used for topics such as impacts of, outline was presented for stakeholder comment at and adaptations to, climate change, trends in land an initial workshop in September 2008, and the cover, and groundwater resources. A field mission draft report was discussed at workshops conducted in November 2008 provided the opportunity to in connection with the Southern Mongolia Infra- tour the Region and to speak with government structure Strategy in April 2009. This version of officials at state, aimag, and soum levels, as well the REA incorporates the stakeholder inputs and as with researchers, national and international provides recommendations for achieving a desir- nongovernmental organizations (NGOs), mining able development outcome. Neither the SMIS nor companies, and other representatives of the min- the REA are envisioned as static documents, and ing industry. so further consultations are likely to occur. 4 2. Development in the Southern Gobi Region T he base-case development scenario as- Mines in base-case scenario. The base-case mines sumes that current mining operations are shown in Figure 2.1 and include the following: will continue and that the large mines that are in or near initial stages of de- Small Tavan Tolgoi coal mine, operated by the velopment will proceed into production. The high- aimag government and Qinhua, producing case development scenario takes a more optimistic 1 million tons per year and likely to continue view, adding to the base-case a group of additional indefinitely; mines that could be developed within the next 10 MAK/Qinhua joint venture Nariin Sukhait, to 15 years. For both scenarios, the ancillary in- producing at 2 million tons per year; frastructure needed to support the mining activity Southgobi Sands coal mine at Ovoot Tol- is projected, including transportation systems to goi, which began production in April 2008, carry products to shipping points or markets. will increase to 2 million tons per year; full production of perhaps 6 to 8 million tons per year if rail connection to China is con- Base-Case Development Scenario structed; Energy Resources LLC coal mine at Tavan This scenario is centered around one coal mine Tolgoi, just beginning construction and that has been operating for some time and that expected to produce at 2 million tons per year will likely be expanded, one that began coal in 2009 and could reach 10 million tons per production in April 2008, and one coal mine and year if railroad transport becomes possible; one copper and gold mine that are in early stages Oyu Tolgoi copper and gold mine, expected to of construction. Ancillary facilities include access be fully under construction in 2009, produc- roads, power and water supply systems, airstrips, ing by 2013, full-scale production in 2017; and worker camps or colonies. Major regional Big Tavan Tolgoi coal mine, commencement transportation infrastructure, which is planned of construction unlikely before 2010, depends to support mining development, is also included. on railroad transport availability to reach full Projections of induced development for all mines production of 15 million tons per year.2 are based on Mongolia Southern Gobi Region Urban Infrastructure Background Study (Castalia, Ltd., 2008) from among the discussion papers Information is from the environmental impact assessment 2 for entire Tavan Tolgoi mining area (EcoTrade ERA, 2007) prepared for the World Bank in support of the prepared for Energy Resources LLC. Subsequent changes to the SGR Infrastructure Strategy, and on a popula- configuration of Energy Resources LLC license area necessitate tion influx risk model for Oyu Tolgoi prepared a new EIA for a smaller area that is in preparation. The estimate of total production of 15 million tons per year was taken from for Ivanhoe Mines Mongolia, Inc. and Rio Tinto the 2007 EIA and therefore includes production from current (Barclay & Associates, 2007). Energy Resources LLC license area. 5 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 1: Oyu Tolgoi Airport Photo by B. Bayarmaa/Oyu Tolgoi Project Photo 2: Developing informal town-site and businesses at Tsagaankhad, outside Gobi Strictly Protected Area B Photo by Luke Distelhorst/Oyu Tolgoi Project 6 Development in the Southern Gobi Region Photo 3: Oyu Tolgoi Project Shaft #1 headframe, currently providing exploration access to the deep underground deposits Photo by Luke Distelhorst/Oyu Tolgoi Project Photo 4: Oyu Tolgoi Project construction camp Photo by Mike Chalker/Oyu Tolgoi Project 7 Mongolia ­ Southern Gobi Regional Environmental Assessment Figure 2.1: The Southern Gobi Region Photo 5: Open pit mining at Tavan Tolgoi Photo by Jim Reichert 8 Development in the Southern Gobi Region Ancillary facilities for the base-case. The ancil- systems possible for water supply and waste- lary facilities for the base-case scenario include the water collection and treatment; following: Housing and supporting infrastructure (water supply, sewerage, electricity, etc.) for Oyu Coal-fired power plant at Oyu Tolgoi, 450 Tolgoi miners and families in Khanbogd and megawatt, air cooled, primarily to serve the other nearby soum centers; Oyu Tolgoi mine; Housing and supporting infrastructure for Coal-fired power plant at Tavan Tolgoi, 600 MAK/Qinhua mine; megawatt in stages, probably air-cooled, to Housing and supporting infrastructure for big meet regional power demand that is domi- Tavan Tolgoi mine. nated by mining; Well field at Gunii Hooloi and 70-kilome- Planned regional infrastructure. Infrastructure ter transmission line for Oyu Tolgoi process planned to support the base-case mines is shown water supply; in Figure 2.2: Well field at the dry Balgas Lake and 70 kilometer pipeline to supply process water for Sealed road from Tavan Tolgoi via Oyu Tolgoi Energy Resources LLC Tavan Tolgoi;3 to border crossing with China at Gashuun Worker colony for miners of Energy Re- sources LLC Tavan Tolgoi and their families, near or adjacent to soum center, with shared 3 Investigation to determine water availability is ongoing. Figure 2.2: Planned Transportation Infrastructure for the Base-Case Scenario 9 Mongolia ­ Southern Gobi Regional Environmental Assessment Sukhait, total distance of 95 kilometers (Oyu Tolgoi to border) plus 165 kilometers (Tavan Photo 6: Cashmere goats are becoming Tolgoi to Oyu Tolgoi) for a total of 260 increasingly common in the SGR kilometers; Sealed road from Ovoot Tolgoi via Nariin Sukhait to border crossing with China at Shivee Khuren, for total distance of 45 kilo- meters; Rail connection from Tavan Tolgoi southward via Oyu Tolgoi to Gashuun Sukhait, covering a distance of 250 kilometers; Rail connection from Ovoot Tolgoi to border crossing with China at Shivee Khuren, for a distance of 45 kilometers. Continuing importance of the livestock in- dustry. Livestock production is detailed only in this section on the base-case (Sheehy and other, 2008) but is assumed to be similar in the high- case. Extensively managed livestock production in Mongolia is a viable system and one that is well adapted to Mongolian conditions. Livestock species present in the SGR herd reflect differences in pastureland capacity and species adaptability to the different SGR land-cover types. The desert steppe and desert environment characteristics Photo by Tony Whitten provide most suitable habitat for camel, sheep, and goats. Although livestock herders have fol- lowed the trend toward higher goat numbers as (e) few negative impacts, under normal produc- a percentage of the national herd, they have also tion conditions, on the natural environment or retained relatively high numbers of horses and wildlife habitat. cattle in the regional herd. Dry steppe pastureland in the northern part of the SGR and along the The major disadvantages of the SGR livestock Chinese border does provide suitable habitat for production system are (a) being a forage supply- these livestock species. driven livestock production system in which temperature and moisture conditions determine, The extensively managed, pastoral livestock during a short period of forage growth, the supply production system as it now exists presents ad- of animal feed for the entire year irrespective of vantages and disadvantages relative to economic animal needs; (b) having always been subject to development and conservation of wildlife and natural climate-related catastrophe that can cause natural ecosystems. The major advantages of the widespread livestock mortality in the short term SGR livestock production system are (a) low-in- and reduce animal and pasture productivity in put/low-cost system based on using renewable and the long-term; (c) lacking availability of inputs of no-cost resources; (b) production system that has any kind (feed, veterinary care, marketing op- adapted itself to SGR environmental conditions; portunities, etc.) to support extensively managed (c) capacity to supply meat and off-take products livestock production and relieve livestock pressure desired by the Mongolian population; (d) rela- on regional pastureland; and (d) herders respond- tively self-sufficient in meeting self-consumption ing to market incentives by increasing livestock needs and producing a marketable product; and numbers and changing herd structure to cashmere 10 Development in the Southern Gobi Region Photo 7: Wells are crucially important for livestock herding Photo by Tony Whitten goats. The change in numbers and herd structure In the desert steppe and desert regions, lack of can lead to catastrophic losses among the herd water wells is a major limiting factor to successful population in the event of natural and commonly livestock production and livelihood sustainability. occurring weather events; and as livestock num- Many of the wells developed during the collective bers increase and herd structure changes, oppor- era no longer function because pump and water de- tunities for conservation of wildlife and natural livery systems have been destroyed or gravel filters ecosystems decrease. used in deep wells no longer function. For example, only 1,000 of the 1,800 wells established in Dor- Privatization of livestock ownership and nogovi, which has virtually no permanent surface production has increased the level of uncertainty water resources, were operable in 2003. Developing and amount of risk to which individual herd- new wells or rehabilitating old wells provides con- ers or groups of herders must respond in making siderable benefit to SGR livestock producers rela- decisions relative to livestock production and use tive to pastureland access and could be beneficial of natural resources. The risk and uncertainty nor- to wildlife if appropriate water distribution systems mally associated with livestock production itself were implemented along with construction of new is being compounded by new factors, including wells. Government and donor projects to rehabili- (a) the concentration and expansion of livestock tate existing, non-functioning mechanical wells and numbers, (b) a decrease in the number of herding drill new wells in waterless pastureland areas of the families, (c) changes in customary herder insti- Region are being implemented. tutions, (d) uncertainties from the marketplace and government, and (e) increased potential for Between 1990 and 2000, SGR livestock num- conflict over use of pasture resources. bers increased from 762,000 to 1,121,000 head 11 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 8: A well in Omnogovi Photo by Judith Schleicher (47 percent increase) following the collapse of ancillary activities such as golf courses). In the the collective. Similar to the national situation, longer term, commercialized tourism will require the increase in livestock numbers corresponded infrastructure development and will increasingly with a change in livestock composition. The most use critical resources such as water (Sheehy and dramatic shift occurred in goats and camels with others, 2008). the percentage of goats increasing from 30 percent in 1970 to 58 percent in 2004, and the percentage Estimates of population increasing from mine of camels decreasing from 18 to 6 percent during construction and operation and influx. Devel- the same period. opment of the mines in the base-case will cause the regional population to increase substantially. Tourism development. Tourism is a fast-growing Consider the following: E is existing population industry in the SGR, especially in Omnogovi (with adjustments for natural increase during the aimag. The current industry need for infrastruc- projection period), M is the number of miners, ture is minimal since the clientele prefers the F is the number of miner family members, and existing small hotels or tourist camps, which I is influx or the number of people who migrate are in or near provincial centers, and engages to the area for various reasons, mainly in search in activities that have limited impact on the for employment and actual or perceived business environment. Tourism, especially as it becomes opportunities. The increase in regional popula- more commercially oriented and the diversity of tion will be the sum of E+M+F+I. The amount of clientele expands, will benefit from infrastructure increase will depend to a considerable extent on development by other industries (i.e., transporta- the recruitment and settlement models adopted by tion, communication, electricity generation, etc.) the mining companies, since these affect both the and will develop its own infrastructure to meet M+F numbers and the amount of influx (Castalia, client needs (e.g., hotels, new and improved roads, Ltd., 2008). 12 Development in the Southern Gobi Region The operating life of the mines is the period For Oyu Tolgoi, Castalia, Ltd. (2008) has of most concern since it could be 40 years or projected population growth in Khanbogd soum more. Energy Resources LLC, intends to begin as shown in Figure 2.3. This projection has popu- with a "fly-in, fly-out" model, in which min- lation increasing from nearly 3,000 as the exist- ers will be transported to the site, housed and ing population at the beginning of operations to fed at a camp near the mine during their work 12,000 within the first three years of mining and rotation, and transported back to their home roughly 19,000 by year 15. Taking the population towns for their time off. Energy Resources LLC, in year 3 as an example, it would consist of rough- is considering a future transition to a "gated ly 3,000 soum residents, 1,000 miners, 3,000 community" model in which the company will miner family members, and an influx population construct housing and supporting infrastructure of 4,000. Castalia bases its estimates of influx on for miners and their families adjacent to or near an analysis of worldwide experience with various the Tsogttetsii soum center. Some infrastructure mine recruitment and settlement models. and municipal services may be shared with the soum. Ivanhoe Mines Mongolia, Inc., is likely to Ivanhoe Mines Mongolia, Inc., plans to recruit follow recommendations from its consultants for an additional 1,500 to 2,000 miners from other a combination of fly-in, fly-out for a small por- soums near the mine. Assuming that the number tion of its professional staff and the "integrated is 1,500 and that the same household size (4.1 per- community" model in which miners and their sons) and influx rate prevail (one additional person families will be recruited as much as possible from for each miner and family member), this would the Region and will live in existing communities, add another 12,000 persons to the subregion's pop- mainly Khanbogd but also several other soum ulation by year 3. The total population of all the centers. Southgobi Sands houses its workforce of soums surrounding Oyu Tolgoi could more than approximately 200 at a camp near the mine but double, from approximately 12,000 to 29,000 as also buses approximately 50 workers from nearby a result of Oyu Tolgoi's operation. By year 15, it Gurvantes. could reach 33,000 (Castalia, 2008). To the extent Figure 2.3: Population Projections for Khanbogd Soum (from Castalia, 2008) 20,000 18,000 16,000 14,000 Khanbogd Population 12,000 10,000 8,000 6,000 4,000 2,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Years from Start of Oyu Tolgoi Mine Operation In ux Miner Families Miners Existing Population 13 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 9: Khanbogd Soum center residential area Photo by Luke Distelhorst/Oyu Tolgoi Project that miners who already live in the Region are the big Tavan Tolgoi, the population in the Region hired, the total of new arrivals will be smaller.4 The could expand by 25,000 in 15 years, with about same can be said of influx; while the number will half of the increase being miners and families and not change, a significant number of new arrivals the other half from influx. The big Tavan Tolgoi will have come from elsewhere in the Region. could add another 8,000 new inhabitants. The population in the soums surrounding these mines For the Energy Resources LLC, mine at Tavan would increase to 37,000 without the big Tavan Tolgoi, little influx will occur under the fly-in, fly- Tolgoi and 45,000 with it. out model. If the mining camp evolves to become a gated community, influx would be comparable Influx during construction. During construc- to that projected for Khanbogd: 500 mine workers tion, the companies that have disclosed their plus 1,500 family members and 2,000 migrants, plans--Ivanhoe Mines Mongolia, Inc., and increasing the population of Tsogttsetsii by 4,000. Energy Resources LLC--are housing their In the case of Southgobi Sands, an influx of 200 workforces in camps on or near the mine sites migrants would be predicted because of the 50 and are providing all infrastructure and services. miners that live with their families in Gurvantes. The influx assessment that was commissioned by There is insufficient information on recruitment Ivanhoe and Rio Tinto estimates that between 500 and settlement plans for other mines, including and 1,700 in-migrants will settle in the vicinity the big Tavan Tolgoi, to provide the basis for reli- of Oyu Tolgoi, mostly in Khanbogd soum center, able predictions; however, a consultant advising Ivanhoe Mines Mongolia, Inc., hazarded a guess that Tavan Tolgoi at full production could add 4 In February 2009, Ivanhoe Mines Mongolia, Inc., conducted 8,000 to the population of Tsogttetsii soum (Bar- a regional labor and skills assessment that will allow better clay & Associates, 2007). Consequently, without predictions of net population growth. 14 Development in the Southern Gobi Region during the construction period. The assessment Entrepreneurs that see the mine workforce also estimates that the population influx caused and other migrants in the Region as prospec- by construction of Tavan Tolgoi could be between tive customers; 850 and 1,500 under a high-technology develop- Formal and informal businesses along trans- ment scenario, and between 2,800 and 5,600 portation routes and at key locations such under a labor-intensive scenario. In any case, the as the border crossing to China, including numbers of construction workers plus migrants providers of food and lodging, fueling and tire will be less than the total additions to the popula- and vehicle repair shops, money changers, sex tion that result from mining operations. workers, drug dealers, and illegal traders in plants and animals. Induced development. Barclay and Associates (2007) describe the kinds of induced development For the REA, it is assumed that the numbers likely in the SGR as a result of mining: of people moving to the Region to conduct the businesses described above are subsumed in the Housing for workers not accommodated at influx estimates. The environment and social im- the mine sites, along with family members, pacts vary, of course, with the type of activity. that will seek housing in local communities, mainly the soum centers; None of the activities is quantified in the Housing for new arrivals or returning com- influx assessment, with the exception of one munity members with or without families roadside development that is highly significant-- that are attracted by the possibility of employ- the 115 hectares at Tsagaankhad, near the border ment at one of the mines; crossing, that have been leased to Mongolian Businesses that serve the mining industry; trucking companies for unloading and stockpiling Photo 10: Trucks transporting coal across the desert Photo by Jim Reichert 15 Mongolia ­ Southern Gobi Regional Environmental Assessment coal that is picked up there by Chinese trucks. The area used for this purpose will certainly expand Photo 11: Desert Ginseng' or Cistanche if coal continues to be transshipped rather than deserticola trucked or hauled by rail directly to China. Base-Case Demands on Natural Systems Land conversion. The most obvious and im- mediate impact on natural systems is conversion of land for the mines, ancillary facilities, and regional infrastructure. The total area is estimated at 16,500 hectares, broken down as follows:5 Hectares Oyu Tolgoi 8,500 Tavan Tolgoi 5,400 Ovoot Tolgoi 69 MAK-Qinhua JV Not available Road construction 500 Railroads to border with China 295 `Desert Ginseng' or Cistanche deserticola is a parasite on Saxcaul trees in SGR and is collected for medicinal purposes to such a degree that it is now Tavan Tolgoi workers community 1,700 placed on Appendix 2 of CITES. Photo by Tony Whitten Total 16,464 Land affected by dewatering. Even in the arid 10 kilometers around Oyu Tolgoi--an area of Gobi, groundwater accumulates in mines and 31 square kilometers. The primary objective was must be pumped out. Mine dewatering causes a to establish sufficient distance between settlements cone of depression that, according to estimates in and the mining operation to avoid impacts of various environmental impact assessments (EIAs), noise, dust, and vibration on local communities. could lower the water table and adversely affect For example, the environmental and social impact springs and deep-rooted plants such as saxaul assessment for Oyu Tolgoi predicts total suspend- and Siberian elm that depend on the surface ed particulate concentrations exceeding standards water table in a radius of from 3 to 7 kilometers for a distance of 6 kilometers downwind under around a mine. Assuming 5 kilometers to be the worst-case conditions. By means of consultations affected radius, 7,850 hectares could be affected and benefits packages, including new sites with by dewatering around each mine, for a total of 31,400 hectares for the 4 mines in the base-case scenario. Note that this is not in addition to the 5 The main information sources were EIA for Tavan Tolgoi and nearly 15,000 hectares disturbed by the mines; it Ovoot Tolgoi. There were inconsistencies between land areas es- includes nearly all of the disturbed area. timated to be disturbed by mining and areas of soils that would be disturbed by mining and various other activities. The latter have been used as being the most logical measure of impact and Exclusion zones. Ivanhoe Mines Mongolia, Inc., as being the same as the respective EIA estimates of the area of has defined an "exclusion zone" with a radius of grazing land that would be affected. 16 Development in the Southern Gobi Region water supply plus education assistance and em- point where coal is unloaded and stock- ployment for one household member, the herder piled for pick-up by Chinese truckers, near families who were residing in this zone were Gahsuun Sukhait. This is likely to continue successfully encouraged to relocate (Eco-Trade indefinitely. LLC, 2006). Herder complaints about dust from MAK/Qinhua joint venture is generating the mines at Tavan Tolgoi were serious enough approximately 75 round-trips per day with its to cause the local government to begin negotia- output of 2 million tons per year, on an un- tions with mining companies about relocating as improved road southward to a border crossing many as 15 herder families;6 this action attests to at Nariin Sukhait. the utility of the exclusion zone concept, at least Southgobi Sands coal mine at Ovoot Tolgoi downwind of a mining operation. Ivanhoe Mines hauls coal to a nearby storage yard using 100- Mongolia, Inc., is reportedly reconsidering the ton trucks, where it is picked up by Chinese concept however and may significantly reduce the truckers using 80-ton trucks. At projected size of the zone at Oyu Tolgoi or eliminate it alto- production of 3 million tons per year in 2009, gether in favor of agreements to avoid residential the traffic generated on the same route used construction too close to the mine fenceline. by MAK/Qinhua should be 100 round-trips per day. Process water requirements. The companies The Energy Resources LLC, coal mine at proposing major new mines have been exploring Tavan Tolgoi is acquiring a fleet of 200 trucks for potential sources of process water. Respective to ship coal to the trans-shipment point at volumes required, all of which are projected to be Tsagaankhad and anticipates that each truck withdrawn from groundwater sources, are listed can make one round-trip per day. Its fleet below (Acacia Water, 2009). In virtually all cases, presently numbers 104, which will generate the mineral content of the water makes it nonpo- that many round-trips on the Oyu Tolgoi- table, and drinking water for the mine workforces Gashuun Sukhait portion of the unimproved must be obtained from other sources: road from Tavan Tolgoi, increasing to 200 when the fleet is complete. Tavan Tolgoi 76,000 m3/day from beneath the dry Balgas Oyu Tolgoi copper and gold mine at peak Lake production (some time after 2013) expects to generate 180 round-trips per day of 35-ton Oyu Tolgoi 60,000 m3/day from Gunii Hooloi Aquifer trucks hauling concentrate on the road to Ovoot Tolgoi 33 m3/day for domestic use, no process Gashuun Sukhait. water required The big Tavan Tolgoi coal mine, with com- MAK-Qinhua JV Not available mencement of construction unlikely before 2010, depends on railroad transport availability Total 136,000 m3/day to reach full production of 15 million tons per year. If one assumes initial production of Transport requirements. Based on assump- 2 million tons per year, then 75 round-trips per tions about the timing of initial production and day are likely on the road to Gashuun Sukhait. increases therein mentioned in the description of the base-case scenario, the following is a summary Recognizing that these numbers are rough of the estimated volume of truck traffic that will estimates, the volume of traffic on the road to be generated by the mine: Gashuun Sukhait could be on the order of 600 truck movements per day in 2009, increasing to The small Tavan Tolgoi coal mine reportedly at least 1,300 truck movements per day or nearly generates 200 round-trips per day when coal demand is high in China. Trucks travel on the unimproved road from Tavan Tolgoi past 6 Governor, Tsogt-Tsetsii Soum, personal communication, Oyu Tolgoi to Tsagaankhad, a trans-shipment November 2008. 17 Mongolia ­ Southern Gobi Regional Environmental Assessment one every minute. At Nariin Sukhait, volume will in planning for new housing construction in the likely be 350 movements per day, or one every four integrated communities. It is also likely that they minutes, in 2009. Further increases are possible on will assist their employees in securing adequate both routes but are not being projected here because housing through measures such as loan guaran- of the probability that rail will replace truck as the tees and low interest loans. They will of course method of transporting coal from the Region when provide the housing in a gated community. More those increases occur. Output of an individual coal problematic is housing for the influx population mine of 5 million tons per year and beyond makes of 10,500--another 2,560 units--for which the rail haul realistic, perhaps essential (Bullock, 2008). mining companies have no direct responsibility. It The combined volumes of two or more mines is fortunate that gers are the traditional housing of would justify construction of rail lines sooner. choice and can be easily set up where land is avail- able. This reduces the risk that migrants will live Housing needs. Whether in gated or integrated in substandard accommodations, as Castalia, Ltd. communities, the 10,500 miners and family mem- (2008) observed in its review of global experience. bers from Oyu Tologoi, Ovoot Tolgoi, and the Energy Resources LLC, mine at Tavan Tolgoi will Municipal water use and wastewater generation. need housing; the 2,560 new units, based on the Assuming water use at an "urban" rate of 120 liters household size of 4.1 that Castalia, Ltd. (2008) used in its projections, was derived from Khan- 7 The big Tavan Tolgoi is omitted from consideration here bogd statistics.7 Since responsible companies will because of uncertainty about its development, but if Barclay & feel an obligation to ensure that their employees Associates (2007) are close in their prediction, the total of min- ers and family members could be increased by 4,000, as could and families have acceptable housing, it is likely the amount of influx population. The number of housing units that they will collaborate with local governments required would increase accordingly. Photo 12: The disposal of solid waste, as here outside Dalanzadgad, will become a major issue in the population centers of SGR. Photo by Erdene-Ochir Badarch 18 Development in the Southern Gobi Region per capita per day, the additional population of Induced development. Induced development has 21,000 will consume 2,500 cubic meters per day many definitions. In this REA, the term is used to and generate nearly as much wastewater. Boreholes identify the development that takes place because and various levels of treatment depending on the of the mining but not as part of the mine and mineral content of the raw water will be needed ancillary facilities or supporting infrastructure. It for public supply. Population density will make is in effect unplanned, but some of it is a logical pit privies and septic systems inappropriate; sewer result of the growth in mining, and much of that systems and treatment works will be necessary fulfills needs for essential commodities or services and in most locations must be sized for the entire such as markets, specialty shops, workshops, petrol population rather than just the new arrivals. stations, hotels and restaurants. There are also unplanned developments that are predictable but Solid waste generation. Solid waste is already undesirable; this may include prostitution, drug managed poorly at the soum and aimag centers; dealing, and illegal trade in plants and animals. extensive open dumps are found along the roads Some of the induced development will occur in leading into the towns. Figure 2.4 shows a typical soum centers, but much of it will locate along dump. With solid waste volume set to double or the haul routes from the mines to their markets. triple (with increasing affluence comes increased Adverse environmental and social impacts can be waste production), this bad situation will worsen. significant if induced development is allowed to Using a standard urban waste generation coeffi- occur without any controls. cient for Mongolia of 0.6 kilogram per capita per day (Hoornweg and Thomas, 1999), there will be Air emissions. The EIA for Oyu Tolgoi mentions 12.6 tons of new solid waste each day to be col- that the ambient air quality in the proposed trans- lected, recycled, and disposed of in environmen- port corridor from the mine to Gashuun Sukhait tally and aesthetically acceptable ways. Solid waste is "pristine" apart from periodic dust storm events management facilities will need to be sized for that cause suspended particulate matter (SPM) the entire population since no acceptable facilities levels to exceed the Mongolian national 24-hour currently exist. average standard of 150 micrograms per cubic meter (µg/m3). Monitoring at Oyu Tolgoi during Heat and electricity. Castalia, Ltd., (2008) June 2003 recorded a maximum 24-hour average estimates that 5 megawatts of combined heat- and SPM concentration of 530 µg/m3, with maxima power-generating capacity will be needed for the during dust storms for PM10 and PM2.5 of 129 projected population of the Region. While this and 51 µg/m3, respectively. Between 20 and 30 could be considered under other supporting infra- dust storm events can be expected in a year, with structure, it is included separately because it is also average durations from 3 to 6 hours (Eco-Trade an environmental management measure to reduce LLC, 2006) demands for fuelwood and use of individual heat- ing facilities with higher emissions of air pollutants Dust. In contrast, the dust levels along the and possible negative effects on indoor air quality. current multi-track unimproved roads in the transport corridor between Tavan Tolgoi and Other supporting infrastructure. Castalia, Gashuun are far from pristine. Soil particles Ltd., (2008) also estimates the needs and costs entrained by truck traffic as in Figure 2.5 for infrastructure, such as roads, schools, clinics are reportedly carried by normal winds a and hospital rooms, public transport, and storm considerable distance from their sources and drainage, based on projected population increases. cause health and environmental problems. In Castalia argues correctly that local and regional addition, coal handling at the trans-shipment governments need to include influx population depots at Tsagaankhad generates wind-borne in planning for them to avoid having overloaded coal dust that affects residents and animals facilities and/or a significant unserved or under- downwind (Figure 2.6). According to the served population. Director of the Small Gobi Strictly Protected 19 Mongolia ­ Southern Gobi Regional Environmental Assessment Area, the environmental protection plans for (Figure 2.7), augmented by the below-listed group the four trans-shipment yards that require of mines whose development is more speculative dust-suppression measures show no evidence and by additional infrastructure particularly for of having been implemented (personal com- water supply and transport of mine output: munication, 2008). Vehicle emissions. The EIA for Oyu Tolgoi Tsagaan Suvarga Copper Molybdenum provides estimates of the emissions of carbon Project ­ Large-scale copper project, not dioxide (2,020 grams), nitrogen oxides (320 likely before 2015. grams), and carbon monoxide (220 grams) Baruun Naran Thermal Coal project ­ North- that could be expected from one truck west of Tavan Tolgoi, 6 million tons per year making a round-trip from Oyu Tolgoi to potential from 2012, owned by QGX, Inc., Gashuun Sukhait based on emission factors and now controlled by the MCS Group and obtained from MNET (Eco-Trade LLC, Kerry Group of Hong Kong. Can be tied into 2006). Based on these unit emission values, rail exports by Energy Resources LLC. the truck traffic from Oyu Tolgoi in one day Scale up of operations at Ovoot Tolgoi to 10 at full operation would emit 364 kilograms million tons per year. CO2, 58 kilograms NOX, and 40 kilograms Khukh Tsav Cement Factory (MAK com- CO. Adjusting the coefficients in the EIA for pany). the different distances, CO2 emissions from Shivee Ovoo mine-mouth power plant (3,600 truck traffic from Tavan Tolgoi to Gashuun megawatts) with power export to China. Sukhait in one day would be 2,627 kilo- Uranium in situ leach projects (at least 2) in grams. Traffic between Ovoot Tolgoi and the area at the northern tip of Dorn Govi. Chinese border would add to the regional Eldev Coal Mine MAK. total (but not the same transport corridor) Rail connection from Tavan Tolgoi to Trans- another 177 kilograms CO2, 28 kilograms Mongolian Railway, 500 kilometers or longer. NOX, and 19 kilograms CO. Carbon dioxide Possible transfer of surface water from north- emissions of nearly 3 tons per day from min- ern Mongolia. eral product hauling in the Region are not inconsequential as contributions to green- High-Case Demands on Natural house gas production. Whether the emissions Systems of NOX and CO would result in health effects or violations of ambient quality standards Land affected by dewatering. The most obvious along the haul routes cannot be determined and immediate impact on natural systems is con- without air quality modeling that is beyond version of land for mines, ancillary facilities, and this REA scope. regional infrastructure. Not knowing the actual Other air emissions. Central heating plants, area proposed for each mine, an estimated 5-kilo- small diesel-powered generators, and larger- meter radius around a mine that would be affected coal-fired power plants will contribute ad- by dewatering is used as a basis for estimation. ditional SPM, CO2, SO2, NOX, and CO that Each of the proposed new mines would dewater need to be considered in assessing impacts on 7,850 hectares. Assuming that approximately air quality in the SGR. This should be done 50 percent of that area is actually converted to when plans are more definite and the indi- mine and ancillary facilities, which is the ratio vidual EIAs, which are needed for the power that occurs in the base-case, 3,925 hectares will be plants, have been completed. converted. The cement plant and expansions of existing mines are excluded. The result is that the High-Case Development Scenario high-case scenario would approximately double both the amount of land affected by dewater- The high-case scenario includes the same mines ing (31,400 to 62,800 hectares) and the amount and related infrastructure in the base-case of land converted (15,000 to 30,000 hectares). 20 Development in the Southern Gobi Region Figure 2.4: The Mines in the High-Case Scenario Estimates of land converted or otherwise affected case is assumed to double the requirements for by the uranium mines must be added but were water from the mining industry. not available at time of reporting for the REA. Construction of the rail connections to the Trans- Tavan Tolgoi 76,000 m3/day from Balgas Lake Mongolian Railway will cause the conversion of at least 500 hectares. Oyu Tolgoi 60,000 m3/day from Gunii Hooloi Aquifer Ovoot Tolgoi 33 m3/day domestic use, no process Process water requirements. Water volumes that water required may be required are listed below (Acacia Water, MAK-Qinhua JV Not available 2008). The first four mines listed are from the base-case scenario. Water requirements for some Tsagaan Suvarga 32,000 m3/day of the high-case mines are not available. Estimates Baruun Naran Not available would vary depending on whether coal mines plan to ship washed coal (as in the case of Tavan Tolgoi) Khukh Tsav cement Not available or unwashed coal (e.g., Ovoot Tolgoi according to Shivee Ovoo coal mine 53,000 m3/day the initial plans).8 For the time being, the high- Uranium Leach Not available projects 8 Washing one ton of coal requires from 500 to 800 cubic meters, depending on coal quality (Acacia Water, personal com- Eldev coal mine Not available munication). 21 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 13: Water kiosk in Dalanzadgad Photo by Judith Schleicher The increased water demand from the de- liters per second, or 130,000 cubic meters per day velopment that is forecast under the high-case sce- through a 540-kilometer pipeline to Shivee Ovoo, nario could exceed the SGR groundwater poten- Shainsand, and Zamin-Udd, with a side branch to tial (i.e., the amount that can be abstracted from Tsagaan Suvarga copper mine. The Orhon-Gobi the aquifers under reasonable criteria to avoid Pipeline Project would transport 2,500 liters per rapid, excessive depletion) by as early as 2020 second, or 215,000 cubic meters per day through (Acacia Water, 2009). This could happen sooner a 740-kilometer pipeline to Tavan Tolgoi and Oyu in some parts of the Region and later in others; Tolgoi, with side branches to Mandalgovi and the timing depends on the match or mismatch Dalanzadgad. Herlen-Gobi Pipeline and Orhon- between local or subregional demands and the Gobi Pipeline are included in the high-case supplies available from aquifers that are accessible scenario. to those demand centers at reasonable cost. Water supply could thus become a limit to growth in Transport requirements. The estimated volume the SGR, and some planners would advocate that of truck traffic that will be generated by the expan- such a limit be observed in reviewing proposals sions and additional operations in the high-case for future development. scenario mines is also assumed, for the moment, to be double that of the base-case on the route to The alternative is to import additional water. Gashuun Sukhait. The numbers of one-directional Prefeasibility studies have been completed on truck movements per day could exceed 2,000, two schemes to transfer surface water from river or more than 1 per minute. It is unlikely that basins in the northern parts of Mongolia. The truck traffic would actually rise to this volume Herlen-Gobi Pipeline Project would carry 1,500 since it would imply that total tonnage of coal 22 Development in the Southern Gobi Region to be shipped would have increased beyond the considering alternative strategies, including the crossover point at which rail transport becomes construction of one or two new towns in the min- economical and perhaps imperative. However, ing areas instead of assuming all new arrivals will new mines not adjacent to the main haul routes, be housed either in gated communities or existing whether highway or railroad, will require access population centers. roads to connect with them. Transport infrastruc- ture may be augmented by a rail connection from Water use and wastewater generation. The Tavan Tolgoi northeastward to the Trans-Mongo- additional population of 40,000 will consume lian Railway for a distance of 500 kilometers or 6,000 cubic meters per day and generate nearly more depending on the route (Figure 2.8). as much wastewater. Boreholes and various levels of treatment depending on the mineral content Housing needs. Based on the best information of the raw water will be needed for public supply. available from mining companies and from esti- Population density will make pit privies and septic mates where information is lacking, the increase in systems inappropriate, therefore sewer systems the SGR population caused by additional miners and treatment works will be necessary and in most and family members plus influx that would come locations must be sized for the entire population under the high-case scenario (which includes the rather than just the new arrivals. base-case increase) could reach 80,000 (World Bank, 2009). Total needs for new housing would Solid waste generation. There will be 25 tons of reach 20,000 units. The Government has been new solid waste each day to be collected, recycled, Figure 2.5: Infrastructure for the High-Case Scenario 23 Mongolia ­ Southern Gobi Regional Environmental Assessment and disposed of in environmentally and aestheti- Air emissions. Transport-related air emissions cally acceptable ways. Solid waste management would double; however, this result is hypotheti- facilities will need to be sized for the entire popu- cal since coal hauling will shift from truck to rail. lation since no acceptable facilities currently exist. Other air emissions would increase proportionally with population. Heat and electricity. The Castalia, Ltd. (2008) estimate that 5 megawatts of combined heat- and Other supporting infrastructure and induced power-generating capacity would be needed for development. The descriptions of the items in the projected population of the Region under the these two categories remain the same as in the base-case and would be increased to 10 megawatts base-case; there will simply be more of them. for the high-case. 24 3. Environmental Resources and their Opportunities, Constraints, and Vulnerabilities T his section follows the presentation extreme southeastern part. Potential evapotranspi- of development scenarios because the ration increased 7 to 12 percent (Batima, 2006). presentation on resources is not meant The duration of heat waves increased by 6 to 8 to be open-ended or encyclopedic. days in the Gobi during the same period, and cold Instead, it focuses on the elements of the natural wave duration decreased by 13 days. The worst environment that offer opportunities for develop- droughts were experienced in 1999, 2000, 2001, ment, impose constraints on development, or are and 2002, and the ensuing dzud were devastating particularly vulnerable to development. to livestock (Batima and others, 2005). Impacts on rangeland productivity are difficult to measure since it is probable that excessive grazing has had Geology more effect than higher temperatures (Angerer and others, 2008). The mineral resources of the SGR represent the op- portunity for development that warrants a regional Models to predict climate scenarios for environmental assessment. There is no compre- 2020, 2050, and 2080 have shown mixed results hensive map of mineral deposits. In its absence, a for SGR. Plant biomass is predicted to decrease map of the areas being mined and those for which overall and in the steppe but to increase in the mining exploration licenses have been issued is desert. The northern boundary of the desert area presented as Figure 3.1. It goes without saying that will move northward by 2080. Drought and not all explorations will result in finds that lead dzud will increase in frequency. Spring snowmelt to development of mines, but some certainly will. will take place one to three weeks earlier than Figure 3.1 gives an indication of how much of the it does at present. Overall, the summers will be SGR is of potential interest to mining companies. hotter and the winters milder. The summer heat will shorten the hours during which animals graze (Batima, 2006). The desert steppe zone Climate Change will also move northward, and its productivity may increase because of heavier precipitation in Average temperature increased in Mongolia 1.8 winter (Angerer and others, 2008). Milder winters degrees Celsius between 1940 and 2003, with the might be thought to be beneficial to herders, but increase more pronounced in winter temperature they tend to bring heavier snowfall, occasional than in summer in the Gobi. Changes in precipi- melting followed by formation of ice sheets that tation were variable across the country; decreases impede grazing and frequent windstorms (Batima of 30 and 70 millimeters were measured in the and others, 2005). Adaptations for the livestock 25 Mongolia ­ Southern Gobi Regional Environmental Assessment Figure 3.1: Mining and Exploration Licenses in Southern Gobi Region (May 2008) industry would include returning to traditional Water availability management in which a pasture is used for just one season and then allowed to rest, rehabilitating Water supply depends almost exclusively on pasture, creating irrigated pasture, and not allow- groundwater in the SGR. Water for livestock and ing herd size to exceed pasture carrying capacity public supplies is taken from traditional, shallow (Batima, 2006). and deep wells from aquifers that are recharged by rain and snow. For the large quantities of water re- quired for mining and mineral processing, deeper Hydrology aquifers are available. Many of these contain fossil water--that is, they have at some time in the past If minerals provide the greatest opportunities for been cut off from sources of recharge by geologic development, availability of water is probably the changes--and many because of high salinity single greatest constraint. Mining and mineral are not suitable for drinking without treatment. processing consume water in large quantities. Estimates of groundwater potential in the SGR are With limited rainfall, no perennial surface water continually subject to change as new information bodies, and the predictions (in section 3.2 above) becomes available, for example, as mining com- of reduced precipitation and higher evapotrans- panies explore for new sources and test potential piration (i.e., reduced groundwater recharge), yields. A recent estimate, based on conservative development decisions in the SGR must consider assumptions, is that the groundwater potential is water supply first of all. 500,000 cubic meters per day for the next 25 to 26 Environmental Resources and Their Opportunities, Constraints, and Vulnerabilities 40 years. However, because so much of it is fossil growth, they do not provide a good basis for land groundwater, extraction at that rate cannot go on use planning. Clearly, the cumulative demand indefinitely. Studies of the Gunii Hooloi aquifer several mines would exert if they tap the same that is considered the primary source for Oyu Tol- aquifer needs to be considered in project-specific goi suggest that it can be tapped at a sufficient rate EIAs and approvals for water abstraction. The to support the mine for approximately 40 years extent to which mining will compete with other (Aquaterra, 2007). About 285,000 cubic meters uses--livestock, primarily, and also rural and per day can be withdrawn from the SGR's shal- urban public supply--depends on the characteris- lower aquifers altogether, assuming recharge at the tics of the aquifer that a mine will tap. The Gunii conservative rate of 1 millimeter per year (Acacia Hooloi aquifer that Ivanhoe Mines Mongolia, Water, 2009). Inc. plans to tap for Oyu Tolgoi is believed not to be connected to shallow aquifers, and the EIA for the mine's water supply considers that it is Present and projected water consumption unlikely that withdrawals for the mine will affect either the 72 herders' wells or plants such as saxaul An estimate of the water used in existing mining (Haloxylon ammodendron) that depend on the and mineral processing operations and in those surface water table in the area above the aquifer. In that will come into operation in the near future is the case of the Galbyn Gobi aquifer that has been 240,000 cubic meters per day. The present total considered as an additional supply for Oyu Tolgoi, of water consumption for livestock and rural and tests have shown a connection between the deep urban water supply is approximately at 40,000 and shallow aquifers over at least part of the area cubic meters per day. The three urban centers-- the aquifer underlies (Eco-Trade LLC, 2004b). the aimag capital cities--consume together 6.500 cubic meters per day from well fields. Average per capita consumption ranges from 110 to 130 liters Vulnerability of water resources per day. Rural consumption includes individual supplies from herder wells and water points and In addition to decreases in precipitation that may deep wells for soum centers and totals approxi- result from climate change as discussed in Section mately 6,200 cubic meters per day, with average 3.2, the SGR groundwater resources are vulnerable per capita consumption between 10 and 30 liters to the projected mining development and the pop- per day. Livestock consumption is estimated at ulation growth that will result from it in a variety 32,000 cubic meters per day (Acacia Water, 2009). of ways. The aquifers containing fossil groundwater Approximately 30,000 small wells are thought to are a one-time reserve that, once exhausted or so exist in the desert and desert steppe regions, and reduced as to be unproductive, will not be replen- numerous mechanical wells were drilled during ished. They therefore warrant special care in their the collective era and maintained by the govern- exploitation. Prolonged exploitation of other deep ment. Most mechanical wells (i.e., engine and aquifers, where there is a vertical connection to the pump or Archimedes screw wells) have fallen into surficial aquifers, can result in lowering of the wa- disrepair, or the underground water source has ter table and failure of shallow wells on which rural failed (Sheehy and others, 2008). residents and livestock depend (Eco-Trade LLC, 2004b). The possibility of horizontal interconnec- Based on conservative assumptions, there is tion between aquifers needs to be considered as enough groundwater to sustain projected develop- well, though the SGR geology is such that many ment until 2020 (Acacia Water, 2009). There is of the deeper aquifers such as Gunii Hooloi are insufficient information to support an analysis of bounded by relatively impermeable rock forma- the spatial distribution of groundwater potential tions that would limit interconnectedness (Acacia across the SGR, and, while the aggregate figures Water, 2009). Dewatering lowers the water table cited here may give an indication of the overall in a large area--a radius of 5 kilometers around limits the Region's water resources may impose on the mine is assumed in this report, based on the 27 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 14: Privately irrigated vegetable garden in Huldt Soum, Dundgovi Photo by Albert Tuinhof EIA for Oyu Tolgoi (Eco-Trade ERA, 2007)--and and limited humus and clay content. Freezing this will cause shallow wells and springs to dry up. occurs to depths of up to 1.5 meters and lasts 6 Wells that tap a surficial aquifer and are too close to 7 months. Many of the soils are alkaline, with together will interfere with one another because high sodium carbonate content (Eco-Trade ERA, of the cone of depression or drawdown that forms 2007). Arsenic and fluoride are naturally occur- around each well as it is being pumped. More- ring soil contaminants (Tuinhof, 2010). In some over, if the estimated rate of recharge is correct at of the desert soils, for example the light brown 1 millimeter per year, water table aquifers can- semi-desert soil that is common at Oyu Tolgoi and not sustain heavy drawdowns, because a recharge many other locations, a thin, hard, cryptobiotic area of 1 square kilometer would only add 1,000 crust forms through fungal and microbial action. cubic meters of new water in one year. Finally, The crust holds moisture, protects the limited the shallow aquifers are vulnerable to pollution organic content of the soil, and provides some from wastewater, leachate from solid waste dumps, protection against wind erosion (World Bank, and chemical spills. The potential for pollution, 2003; Eco-Trade ERA, 2007). while low at present, will increase with population growth and urban development. Opportunities Soils With thin to non-existent topsoil and low humus and moisture content, opportunities for cultivation Most of the soils in the SGR can be characterized are limited. Soil supplements and irrigation would as semi-desert, desert, or arid desert soils. They be necessary. The surface crust is vulnerable to dis- are rarely deep, typically have thin A-horizons turbance from sharp-hooved animals (mainly goats) 28 Environmental Resources and Their Opportunities, Constraints, and Vulnerabilities Photo 15: In wet years the vegetation in the SGR can be abundant as here in Dund Gov in an area dominated by Anabasis brevifolia Photo by Tony Whitten and vehicle traffic. Once disturbed, it no longer Mercury is in widespread use by artisanal gold provides any protection against wind erosion and miners in Mongolia (World Bank, 2006). Govern- dust entrainment (Eco-Trade ERA, 2007). Changes ment surveys in 2007 by the Ministry of Nature, in herd composition across Mongolia in recent Environment, and Tourism (MNET), the State years--relatively more goats, fewer softer-footed Specialized Inspection Agency (SSIA), and the Na- animals--are viewed as one of the principal causes tional Emergency Management Agency (NEMA) of land degradation (MNET, 2008). revealed widespread soil contamination caused by use of cyanide and mercury. There are sites of con- tamination in the three SGR aimags, most numer- Constraints and vulnerabilities ous in Omnogovi (MNET, 2008). The NEMA has established a processing and containment Dust entrained by vehicle traffic using the un- facility in Khanbogd soum, Omnogovi (Figure improved roads, most extensively by 80-ton coal 3.2), and expects that it will receive 50,000 tons trucks, is considered one of the top 2 or 3 envi- of contaminated soil from all 10 aimags in which ronmental problems in the soums that have coal contamination has been found (personal commu- mines or segments of the coal transport routes. nication with facility manager, 2008). It affects the health of humans and livestock and degrades the overall quality of life. In the words of one official, when the flow of coal trucks is Vegetation at its normal volume, "It is a continuous dust storm; people cannot stay in it" (Director, Small The primary vegetation types in the SGR are Gobi Strictly Protected Area, personal communi- desert steppe and desert although grass steppe cation, 2008). occurs along the northern edge of Dundgov and 29 Mongolia ­ Southern Gobi Regional Environmental Assessment Dornogov provinces. Both provinces are dominat- ed by desert steppe (55 and 62 percent, respec- Photo 16: Many parts of the SGR are very dry tively). Omnogovi aimag is equally dominated by yet some hardy plants can still survive desert steppe and desert (49.1 and 49.0 percent, respectively) although grass steppe occurs at higher elevation in the eastward extension of the Altai Mountains and the province has relatively large areas of barren and sand land (Sheehy and others, 2008). Detailed floristic studies at Oyu Tolgoi pro- vide useful descriptions of communities in the desert steppe vegetation zone that covers much of the SGR. They consist of drought-tolerant low shrubs and thinly distributed short grasses. The only trees in the vicinity of Oyu Tolgoi are Siberian elms (Ulmus pumilla) that occur infrequently along seasonal drainage channels. Overall plant cover is about 5 percent (Eco- Trade LLC, 2004b). Elsewhere in the SGR are found groves of saxaul trees (Haloxylon ammodendron), which are capable of sending roots as far as 10 meters below the ground surface to reach the surface water table even in dry periods. These trees can grow to 4 meters tall if left relatively uncut and ungrazed. Saxaul groves are important in protecting arid land Photo by Tony Whitten from erosion and desertification (World Bank, 2003; Eco-Trade LLC, 2004b). Desert steppe and desert communities gener- Opportunities ally have standing crop yields between 290­380 kilograms per hectare and contain a high diversity Vegetation communities occurring in the SGR of vegetation communities, soils, and topography have variable floristic characteristics and a wide that create "forage patch" grazing opportunities range of annual standing crop yield. Grass steppe for livestock and wild herbivores. Desert steppe is communities have standing crop yield ranging dominated by grasses, herbs, and shrubs. Desert from 650 to 1,300 kilograms per hectare. These steppe formerly was the habitat of the Mongolian communities are dominated by grasses including wild horse (Equus ferus) and the current habitat the genera Cleistogenes, Stipa, Aneurolepidium, of the Asian wild ass (Equus hemionus), Argali Elytrigia, Festuca, Helictotrichon, and Koeleria; vari- bighorn sheep (Ovis ammon), Saiga antelope ous Carex species; and forbs including Artemisia, (Saiga tatarica), and wild camel (Camelus bactria- Filifolium, and Allium. The shrub Caragana is nus ferus). Deserts are especially suited to grazing often present in the community as a co-dominant. by domestic camels, sheep, and goats, and provide Most grass steppe is grazed throughout the year by habitat for a number of large wild herbivores all livestock except camel. Gazelle and the Asian (Sheehy and others, 2008). The vegetation grow- wild ass are the most common wild herbivore ing season is short, from mid-May to mid-August grazers in grass steppe areas. (World Bank, 2003). 30 Environmental Resources and Their Opportunities, Constraints, and Vulnerabilities Constraints and vulnerabilities China at Gashuun Sukhait is open to all trade (personal communication, 2008).12 Government studies show that 77 percent of Mongolia's territory is affected to some degree by desertification. The area strongly affected has Wildlife increased from 16 percent in 2004 to 34 percent in 2008 (MNET, 2008). This may be overstated. Opportunities From a global perspective, the 40 percent of Mon- golia's "Gobi" surface area did not change appre- The animal species present in SGR are important ciably in the 40 years leading up to 2003 (World in the regional ecosystem. They also have im- Bank, 2003). However, from local perspective, mediate economic value for Mongolia. Wildlife land degradation (often described loosely as de- is a primary attraction for tourists in the SGR. It sertification) is perceived as a real concern.9 Aimag also attracts trophy hunters that pay substantial and soum governors and environmental officers fees for licenses--US$18,000 for the argali, or usually name land degradation as the foremost wild mountain sheep, for example (Clark et al., environmental problem in SGR. A government- 2006). funded "greenbelt" program to combat land degra- dation is active in SGR (personal communications with aimag and soum officials, 2008), but the area Constraints and vulnerabilities covered is as yet insignificant in comparison to the areas of land affected (MNET, 2008). Causes of The 11 species listed in Table 3.1 appear on the land degradation in SGR include: Red List of Threatened Species issued by the Interna- tional Union for Conservation of Nature (IUCN, Reduced precipitation, possibly related to 2009). climate change; Increases in herd size; Threats to these species and to wildlife can Herd concentration in smaller areas due to be loosely grouped into four forms: destruction, decreases in functioning water points;10 degradation or fragmentation of habitat; physical Changes in herd composition--more goats, disturbance; competition with domestic livestock; and fewer camels, horses, and cattle; and illegal hunting and trade. Some examples of Damage by vehicle traffic;11 threats to different species follow: Dust that accumulates on leaves and blan- kets roots, impeding plant growth (personal Bustards will desert otherwise appropriate communication with Mongolia Academy of habitat when power lines are constructed Science, Institute of Botany, 2008). because they perceive the towers as perches for raptors. Collisions with power lines are The two tree species mainly found in SGR, responsible for some bird mortality (personal Siberian elm (U. pumilla) and saxaul (H. am- modendron) depend on moisture from the surface water table and are vulnerable to significant lower- 9 There is no agreement on a single definition for "desertifica- ing of it (Eco-Trade LLC, 2004b and 2006). Trees tion". The term "land degradation" is used in this report instead. are also harvested for firewood (Bedunah and 10 Environmental officials in Dundgobi aimag explained that Schmidt, 2000). concentration of animals around wells exceeds pasture-carrying capacity and that the reason 1.45 million hectares of good pasture exist in the aimag is that there are no water sources in it Illegal trade in rare plants and plants of me- (personal communication, 2008). dicinal significance occurs in SGR. The Director 11 Some 44,000 hectares have been degraded by truck traffic in of the Small Gobi Strictly Protected Area has ob- Dundgobi aimag (personal communications, 2008). 12 The crossing at Gashuun Sukhait is open year-round for coal served that illegal harvesting increases noticeably transport and 20 days each quarter, in April, July, October and during the periods when the border crossing with December, for general trade. 31 Mongolia ­ Southern Gobi Regional Environmental Assessment Table 3.1: List of Threatened Vertebrate Species in SGR Red List Category Scientific name Common name Regional Global Ovis ammon Argali EN NT Gazella subguttorosa Goitered gazelle VU VU Procapra gutturosa Mongolian gazelle EN LC Equus hemionus Asiatic wild ass EN EN Marmota sibirica Siberian marmot EN EN Euchoreutes naso Long-eared jerboa VU LC Spermophilus alashanicus Alshan ground squirrel EN LC Uncia uncia Snow leopard EN EN Oreoleuciscus humilis Small osman VU NE Falco cherrug Saker falcon NE EN Chlamydotis undulata Houbara bustard NE VU EN=endangered; VU=vulnerable; NT=near threatened; LC=least concern; NE=not yet evaluated Photo 17: The Asian Viper Gloydius halys is quite common in the SGR Photo by Tony Whitten 32 Environmental Resources and Their Opportunities, Constraints, and Vulnerabilities Photo 18: Group of gazelles in the SGR Photo by B. Bayarjargal communication, Wildlife Science and Con- of water and forage. Construction of fences servation Center, 2008). along with the Trans-Mongolian Railway, and In the steppe areas of Mongolia, there was erection of fences along the China-Mongolia a dramatic decrease in the number of sa- border have fragmented habitat and inter- ker falcons, a species that is valuable in the fered with large-scale movement of khulan world market and can be legally exported herds (Clark et al., 2006). Sub-populations of from Mongolia under license. Dundgovi and Mongolian gazelle have been isolated from the Dornogovi provinces experienced near 100 main population in eastern Mongolia by the percent falcon population loss. In 2006 the Trans-Mongolian Railway, the highway that Government issued a decree establishing a parallels it, and the fences along them (Clark quota of 300 birds per year and high fees for et al., 2006). Satellite tracking has shown that falcon export presumably to reverse the im- gazelle move along the railway but do not pact of excessive capture and export (MNET, cross it, despite better habitat on the other 2008). side (BirdLife Asia, 2008). Ibex, wild sheep, ungulates, and marmots are Permanent human settlements, mining devel- the main prey of snow leopards. Decreases opment and fences degrade wildlife habitat by in the populations of these food sources have restricting access to water. directly affected leopard populations and have Ecotourism campsites are often established also led to increases in attacks on domestic near watering places to increase the probabili- herds, which in turn have provoked killings ty of animal sightings. Their presence disturbs by herders (MNET, 2008). wildlife and, if continued for several days, The SGR is the principal habitat of the deprives the wildlife of water (personal com- regionally endangered Asiatic wild ass, or khu- munication, Wildlife Science and Conserva- lan, which migrates long distances in search tion Center, 2008). 33 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 19: Wild ass or khulan in southern Omnogovi Photo by B. Bayarjargal Even though no improved road or railroad hunting of wild sheep have also contributed yet exists, coal transport between Small Gobi to their decline (Clark et al., 2006). Strictly Protected Area "A" and "B", which There is a substantial wildlife trade in Mongo- involves transit through the designate buffer lia, both internal and for export. Body parts zone, has already ended periodic migration of and small numbers of living animals can be khulan between the two parts of the protected found in markets in Ulaanbaatar. Traffic is area. With their habitat thus restricted, they highest in winter because freezing conditions have been moving eastward onto unprotected facilitate storage and transport and fur-prized land where they are vulnerable to illegal hunt- animals have their more luxurious winter coats. ers. The width of the informal roadway (close The traffic peaks in January when temporary to 100 meters in places), the size and number border crossings are open to facilitate shopping of coal trucks, dust, and noise are factors that in China for two to three weeks in advance prevent the khulan (and to a lesser extent, of the New Year holidays and dealers have an black-tailed gazelle or goitered gazelle, also a easy time moving in and out of China. Ship- long-distance traveler) from crossing (personal ments are moved undetected inside tires or in communication, Director, Small Gobi Strictly containers under other loads, including coal Protector Area Director, 2008). (personal communication, Wildlife Conserva- Illegal hunting is partly the cause for declines tion Society, Mongolia Office, 2008). in large wild herbivore populations in general and is specifically related to declining num- bers of snow leopard (now popular in tradi- Protected Areas tional medicines), khulan, Mongolian gazelle (hunted for meat), and wild sheep (hunted There are seven Special Protected Areas in the for horns). Excessively liberal quotas for legal SGR: 34 Environmental Resources and Their Opportunities, Constraints, and Vulnerabilities Figure 3.2: Protected Areas, Important Bird Areas and Overlap with Boundaries of Mining Licences Small Gobi Strictly Protected Area A, Opportunities Small Gobi Strictly Protected Area B, Gobi Gurvan Saikhan National Park, Fifty percent of Mongolia's critical natural habitat Ergeliin Zoo Nature Reserve, is included within Strictly Protected Areas, while a Ikh Nartiin Chuluu Nature Reserve, further 39 percent is included within local Strictly Zagiin Us Nature Reserve, and Protected Areas. Only 5 percent of the consoli- Suikhent Uul Natural and Historic Monument. dated set of critical natural habitats in Mongolia is not formally protected at the local or national There are 242 locally protected areas, 34 of level. Tourism in Mongolia is largely nature based, which are designated at the aimag level and 208 the main attractions being the rural population by the soum (BirdLife Asia, 2008). BirdLife Asia and their pastoralist lifestyle, combined with the has identified 5 important bird areas in SGR, open, vast, and attractive landscapes. Protected totaling approximately 1.8 million hectares, one- areas in Mongolia are popular tourist destinations, third of which have some official protected status with tourists typically accommodated in tented because they partially coincide with a state or ger camps run by tour operators, based on conces- local protected area. All but 76,000 hectares are in sions licensed by the government. Omnogovi aimag. Figure 3.3 shows the protected areas and important bird areas as well as the extent Economic reform since the early 1990s has to which areas licensed for mining or mine explo- led to the privatization of tourism operations and ration conflict with them. the rapid development of the sector. In 2006, 35 Mongolia ­ Southern Gobi Regional Environmental Assessment 385,000 tourists entered Mongolia, up from To assess the impact of tourism on critical 137,000 in 1999. This growth is matched by an natural habitats, BirdLife has looked at the overlap, increase in the number of hotels and tour camps, using Geographic Information System analysis, with the latter increasing from 63 in 1999 to 200 between tour camp locations and areas of criti- in 2006. This is putting pressure on protected cal natural habitat (state specially protected areas, areas. The Government views tourism develop- local specially protected areas, and important bird ment as a priority for economic development. The areas). Over half of the total number of tour camps Ministry of Roads, Transport and Tourism has (101 of 200) registered in Mongolia are therefore adopted a strategy for tourism development cover- located in or adjacent to state or local specially pro- ing the period 2007­2011. tected areas. A comparison of locations reveals that 65 camps are located in or adjacent to 8 important bird areas (BirdLife Asia, 2008). Constraints and vulnerabilities As part of this study, the Department of BirdLife Asia (2008) analyzed the overlap between Social Geography of the National University of protected areas and mineral exploration and min- Mongolia, Mongolian Tourism Association, and ing license areas. Where state protected areas are Wildlife Science and Conservation Center of concerned, the overlap is small--3 percent or less, Mongolia conducted a questionnaire survey to except 9 percent for Ikh Nartiin Nature Reserve assess the impact of tourist camps on the environ- and 27 percent for Suikhent Uul Monument--and ment. From a nature conservation point of view, is virtually entirely with exploration licenses. In the and based on information compiled during this case of protected areas designated by aimag and study, the following tourism-related threats to soum, the overlap is greater--32 percent of the critical natural habitats in Mongolia are highlight- total protected area in Omnogovi, 56 percent in ed: (a) disturbance of wildlife; (b) degradation of Dornogovi, and 16 percent in Dundgovi. Overlap grassland steppe and deserts; (c) pollution of lakes with important bird areas ranges from negligible and rivers; (d) fire wood collection; (e) depletion to substantial; the worst case is 60 percent of the of water resources; (f ) rubbish; and (g) tourist Galba Gobi area (828,000 hectares) in Omnogovi. infrastructure. The lack of serious overlap with strictly Issues such as wildlife disturbance are of protected areas probably results from the facts that particular concern. In many cases, however, these the review of license applications occurs at the concerns are localized, with minimal impact from national level and that most of the locations have a biodiversity point of view. At present, the threat been in protected status for 10 years or more. In posed by tourism development is considered to the case of local protected areas, the designation of be of less concern than that posed by mining and the protected area sometimes post-dates the issu- infrastructure development. Many of the issues ance of the exploration or mining license, as is the arising relate to protected areas management, case at Tavan Tolgoi (BirdLife Asia, 2008). More particularly the lack of capacity and resources; importantly, aimag and soum governors are not the poor application of park zoning; and lack accorded much opportunity to influence decision- of awareness and visitor management programs making, either in EIA preparation, review, and (BirdLife Asia, 2008). approval, or in review and approval of applications for exploration or mining permits. However, as BirdLife points out, the adverse impacts of min- Physical Cultural Resources ing on protected areas are likely to be associated with supporting infrastructure, especially roads, In this category are archaeological and paleonto- railroads, and water supply, and with the urban logical sites that are considered sacred or have spir- development that follows the mines, more than itual significance to the local or regional populace, with the mines themselves. or have geological formations or other features of 36 Environmental Resources and Their Opportunities, Constraints, and Vulnerabilities the landscape that contribute to visual interest. than 200 petroglyphs at the top of nearby Javkha- The information presented here is fragmentary, lant Mountain (Eco-Trade LLC, 2006). Numer- as it is beyond the scope of the REA to provide a ous ovoo (rock piles with traditional cultural complete inventory of physical cultural resources, significance) have been created along vehicle tracks but it gives an indication of what may be encoun- through SGR (Figure 3.4). A large one of religious tered in the course of major development activities importance is located at the summit of Javkhalant in SGR, such as mines, transport infrastructure, Mountain. A survey of the proposed road cor- and new towns. ridor between Oyu Tolgoi and Gashuun Sukhait conducted for Ivanhoe Mines Mongolia, Inc., in 2002­03 identified 52 artifacts including stone Opportunities tools at two settlements from the Upper Paleo- lithic period (40,000 to 12,000 years ago) and 50 Much of what is known about physical cul- tombs from Bronze Age and earlier. Certain of the tural resources in the Region comes as a result tombs that were discovered caused a revision in of investigations carried out in the preparation what was previously thought to be the southern of major development projects. Several dinosaur limit of settlements by Bronze Age peoples from eggs were discovered during excavations for one northern Mongolia (MASIA, 2003). of the mineshafts at Oyu Tolgoi, and construction workers have been instructed to be alert for other BirdLife Asia (2008) has mapped 6 natural such finds (personal communication, Oyu Tolgoi sacred sites in SGR--2 in Dornogovi, 3 in Dund- environmental supervisor, November 11, 2008). govi, and 1 in Omnogovi (Figure 3.5). All but Paleolithic and Bronze Age artifacts, ancient cop- one of the sites in Dornogovi have fully protected per mines, and two petroglyphs have been found status at the aimag level. These are natural areas at the Oyu Tolgoi project site, and there are more revered by traditional local communities. Photo 20: Rock formation in Khanbogd Soum, Omnogovi Aimag Photo by Erdene-Ochir Badarch 37 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 21: Restored main stupa at Demchig Monastery ruins, Khanbogd Soum Photo by Erdene-Ochir Badarch Developers may be enlisted in the effort that were found in the future open pit area at Oyu to preserve physical cultural resources. Ivanhoe Tolgoi. The Mongolian Protection of Cultural Mines Mongolia, Inc., is protecting the petro- Heritage Law requires a developer to seek the ad- glyphs in its project area. It has also contributed vice of Mongolian Academy of Science, Institute funds for restoration of the main stupa that had of Archeology (MASIA) with regard to projects been destroyed at the Demchig Monastery ruins, that could disturb or damage archaeological sites. or "World Energy Center" (see Figure 3.6). The developer must obtain MASIA approval before undertaking activities that could damage or destroy the site. Procedures for chance finds are an Constraints and vulnerabilities obvious requirement for any development projects in SGR. Artifacts can easily be obliterated by mine and in- frastructure developments. In some cases, oblitera- In many cultures, local shrines could be relo- tion might be an unavoidable impact and must be cated if local traditional leaders agree and proper considered in the EIA review and the decision to ceremonies are performed. This might be true for approve or reject the proposed project. This situ- small ovoo, though probably not for the large, old ation presents itself at the ancient copper mines ones such as the one on Javkhalant Mountain. 38 4. Synthesis: Evaluation of the Development Scenarios and Recommendations for Environmental and Natural Resource Management P ositive and negative impact evaluations Weak intensity. Negative impact--there is will be summarized for both base-case very little impact on the component in terms and high-case scenarios based on impact of ecological functions, or abundance or intensity, spatial extent, and duration. Us- distribution is only slightly modified. Positive ing this three-pronged format as a basis, the impact impact--there is a small improvement in con- will be rated as having major, moderate, or minor dition, function, abundance, or distribution. significance in development decisionmaking. The evaluation criteria are shown in Table 4.1. Descrip- Spatial extent is evaluated as regional (R), subre- tors and abbreviations are described below: gional (Sr), or local (Lo): Impact intensity is evaluated as high (H), me- Regional extent is defined as affecting the dium (M), or weak (W): entire SGR or a significant part of it. If the impact extends beyond the SGR--is global or High intensity. Negative impact--a compo- national, for instance--that will be separately nent of the environment is destroyed or so noted. altered as to eliminate the ecological functions Subregional extent signifies that the impact it performs or to cause a major shift in abun- is felt in an area broader than that immedi- dance or distribution in the SGR. Positive ately affected by the activity in question, but impact--there is a definite improvement in smaller than the Region or significant part condition, function, abundance, or general (e.g., one of the three aimags) of the Region. distribution in the SGR. Local extent implies that the impact does not Medium intensity. Negative impact--a com- extend beyond the area directly affected by ponent is altered so it results in a reduction of the activity. ecological function or a limited shift of abun- dance or distribution in the SGR, but the Duration is evaluated as long-term (Lt), medium integrity of the component is not altogether term (Mt), or short term (St). damaged. Positive impact--there is a moderate improvement in condition, function, abun- Long-term indicates that the impact is es- dance or distribution. sentially permanent or is felt continuously 39 Mongolia ­ Southern Gobi Regional Environmental Assessment Table 4.1. Impact Evaluation Rules Criteria of analysis Significance of impact Intensity Extent Duration Negative Positive High Regional Long-term Medium-term Short-term Major Major Subregional Long-term Medium-term Short-term Moderate Moderate Local Long-term Major Major Medium-term Moderate Moderate Short-term Medium Regional Long-term Major Major Medium-term Short-term Subregional Long-term Medium-term Moderate Moderate Short-term Local Long-term Medium-term Short-term Minor Minor Weak Regional Long-term Moderate Moderate Medium-term Short-term Minor Minor Subregional Long-term Moderate Moderate Medium-term Short-term Local Long-term Minor Minor Medium-term Short-term 40 Evaluation of Development Scenarios and Environmental and Natural Resource Management or sporadically over period of more than 10 200 round-trips per day between Tavan Tolgoi and years. When an impact is irreversible, that will Gashuun Sukhait and approximately half of that be separately noted. volume from Ovoot Tolgoi and Nariin Sukhait to Medium-term applies to an impact that is the Chinese border at Shiveehuren. The impacts continuous or sporadic over a period of from of the present relatively low volumes of truck 1 to 10 years, hence not in any sense perma- traffic traveling on unimproved routes, which nent or irreversible. are in many places unnecessarily wide because of Short-term means an impact that is felt over a multiple tracks, are soil disturbance/desertifica- period of less than 1 year. tion, dust that affects vegetation and human and animal health, noise, and physical disturbance. The impacts are considered moderate, local (except The Base-Case Scenario where wildlife are concerned), and medium term. The traffic between the two sections of the Small Table 4­2 summarizes the impacts in the base-case Gobi Strictly Protected Area that transits the buf- scenario. In addition to the impact evaluation and fer zone of Section "A" has already disrupted the the determination of significance of the impacts, movements of khulan and Mongolian gazelle to the summary also reflects the extent to which the point that they are rarely found in that section. impacts can be avoided, minimized, mitigated, Because these two species are listed as region- or offset. The final column of the table presents ally endangered, and because Small Gobi Strictly impact-specific recommendations. Protected Area is a main part of their remaining habitat, the impact is high intensity, regional, and The accompanying text provides more detail long term. Mitigating measures consist of improv- on each impact or group of impacts, organized ing the road, restricting traffic to a single set of by the type of activity that needs to be man- lanes to reduce the width of the transport corridor, aged. The impacts of the mines themselves are enforcing speed and loading limits, constructing not described in the text because they are covered at least one properly designed overpass or under- in individual EIAs. In addition, although mine pass for large mammals, and implementing other impact is of high intensity and long duration in measures to allow wildlife to cross the road (e.g., terms of permanently altering landform, possibly designating certain periods of the night when causing subsidence, and constituting hazards to traffic would have to be halted). Spraying for dust humans and animals as well as to groundwater if suppression on the road has been mentioned as not properly reclaimed, they do not have regional a mitigating measure in the EIA for Oyu Tol- significance in the same way as does the infrastruc- goi (Eco-Trade LLC, 2004a), but experience at ture needed to support them and the development the Energy Resources LLC site at Tavan Tolgoi they may induce. suggests that it is of limited effectiveness because of rapid drying in summer and rapid freezing in winter. Energy Resources LLC has found that Impacts of traffic and transport improving the surface of its haul roads at the mine site with the coarser material being excavated as Transport of mineral products from mine to overburden is more effective. However, personal market under existing arrangements are already a observations in the field show that it does not significant source of adverse impacts. Increases in eliminate dust altogether. traffic volume with no improvement in infrastruc- ture, construction of improved and new infra- Existing and near-term situation ­ at projected structure, and transport using new infrastructure traffic volume. A doubling in traffic volume will are evaluated along with existing impacts. occur as early as 2009 due to commencement of operations at Energy Resources LLC mine in Tavan Existing and near-term situation ­ at present Tolgoi and expansion of the South Gobi Sands op- traffic volume. Present traffic volume is low at eration at Ovoot Tolgoi. As the base-case scenario 41 Mongolia ­ Southern Gobi Regional Environmental Assessment unfolds, truck traffic will increase to the point that duration. Mitigating measures mostly involve there could be nearly one truck per minute mov- establishing contractual requirements for good ing along the road from Tavan Tolgoi to Gashuun construction practice, which includes restor- Sukhait. The CO2 emissions will reach nearly 3 tons ing quarries and borrow pits and proper waste per day, other air pollutant emissions may degrade management and enforcing good practice through regional air quality, and dust generation will be adequate supervision. If there is not one already continuous and extensive. The impacts are high in place, there should be a process for selection intensity, regional (except global for greenhouse and approval of quarry sites, overseen by aimag gases), and medium term. In the near term, the or soum environmental officials, to ensure that mitigation measures are the same as for the present geologic features of scenic or cultural importance traffic volume, but, in the medium term, a shift to are not damaged. rail transport is the best mitigation measure and will likely have become economically preferable, Wildlife management should be one of the perhaps imperative. It is worth noting that higher key considerations in selecting the alignments for truck traffic volumes increase opportunities for railroads and in designing the roads and railways. traders to move endangered (as listed by the Con- These linear infrastructure features obstruct move- vention on International Trade in Endangered Spe- ment of wildlife in SGR, effectively fragmenting cies) and other unsustainably harvested plants and habitat. Habitat fragmentation is a significant animals out of the country. The mitigation measure factor leading to species becoming endangered or is better public awareness coupled with more effec- eventually extinct. In addition, physical barri- tive inspection and prosecution of violators. ers divide the populations of large mammals and thus may create isolated subpopulations that lack Construction impacts of new transport infra- the numbers or the genetic diversity to remain structure. Three stages of construction are likely viable. There have been successes in other parts of to occur, either as mitigating measures for the the world, notably Canada and the Netherlands, present and near-term impacts of coal hauling where carefully designed overpasses have been or as developments that would proceed in due rapidly accepted by large mammals as a means of course to support mining development. These moving across highways (Swenson, 2007). This latter include improving the surface of present approach should work in SGR. roads with gravel, sealing the roads, and construct- ing rail lines. When completed, these mitigat- At present, except in the case of the Small ing measures will have positive effects (with the Gobi Strictly Protected Area, not enough is exception of effects on wildlife), by eliminating or known about the migration patterns of animals greatly reducing the adverse impacts of the present such as the khulan or Mongolian gazelle-- transport situation. The adverse environmental whether they are regular or predictable, spa- impacts during construction are short term for the tially or temporally--and so it is not possible most part, and include the following: to identify corridors where road and railroad design would best provide for wildlife passage. Opening of quarries and borrow pits, It is also not possible to determine whether the Operation of stone crushers, north-south alignment of a railroad from Tavan Operation of asphalt plants, Tolgoi to Gashuun Sukhait is better or worse for Noise, dust, and air emissions from hauling large mammals than the longer connection to and heavy equipment operation, the Trans-Mongolia Railway with its northeast- Waste from equipment maintenance and southwest alignment. It is not clear, in the case worker camps, and of the Mongolian gazelle, whether the barrier to Poaching for food and illegal animal trade. track crossing is the railroad itself or the barbed- wire fence running along the rail line (BirdLife Adverse impacts are considered moderate Asia, 2008). All of this urgently requires intensive in severity, local in extent, and short term in study, some of which the Wildlife Science and 42 Evaluation of Development Scenarios and Environmental and Natural Resource Management Conservation Center plans to undertake in 2009 more constant speed, somewhat reducing fuel con- (personal communication with the Director, sumption and emissions of CO2 and air pollut- November 2008). If effective means cannot be ants. The positive impacts are substantial, regional, identified and implemented, negative impacts are and medium term. inevitable. In the worst case, the impacts are high intensity, regional, and not merely long term but The main negative impact (moderate, local, permanent and irreversible. and medium term) besides obstruction of wildlife movement discussed earlier will be increased The Small Gobi Strictly Protected Area pro- risk of livestock and wildlife mortality, higher vides a more immediate opportunity to implement frequency of vehicle accidents because of prox- and learn from a wildlife overpass. The fact that imity of oncoming traffic, and greater severity khulan and gazelle migration occurs or used to of accidents when they occur because of higher occur, between the "A" and "B" sections, has been speeds. Some measures necessary to ensure that established, and so the focus can be on designing the benefits are realized include enforcement of an effective overpass at an appropriate location. truck loading limits and speed limits and rules Road improvement should be addressed at this against travelling off the roadway. Measures to Strictly Protected Area as a matter of first priority. mitigate potential adverse impacts are enforcing Experts should be engaged for overpass design in speed limits, issuing and enforcing laws and com- order that its construction is connected with road pany rules (mining and trucking) that prohibit improvements. Monitoring should be included drinking alcohol while driving and driving under in the planning to determine effectiveness of the the influence of alcohol,13 demarcating zones for overpass design in re-establishing regular move- passage of livestock (and perhaps wildlife), and ment of large mammals. including accidents involving wildlife as report- able safety incidents under mining company Livestock should also be considered in the procedures. design of roads and railroads, but the task is easier: their movements can be managed to a A further shift to rail transport would provide great extent by the herders, and they either will more significant positive impacts that are substan- cross the barriers of their own accord or can be tial, regional/global, and long term: elimination driven across, as long as ways for passage are of dust entrainment, reduction of CO2 and air provided. Impacts are moderate, regional, and pollutant emissions, reduction in motor vehicle medium term, and adequate and feasible mitiga- traffic, and reduced risk of livestock and wildlife tion measures exist. mortality. By reducing the number of vehicles moving from Mongolia to China, rail transport Operation of new transport infrastructure. The would also sharply restrict opportunities for illegal shift to transport on one improved, two-lane road trade in plants and animals. However, an align- with adequate shoulders would have significant ment being considered for the rail line from Tavan positive impacts. Dust entrainment would be dras- Tolgoi reportedly passes through Small Gobi tically reduced and with it the local impacts on Strictly Protected Area "B". A decision to sacri- vegetation, health, and quality of life. Motorists fice part of the Strictly Protected Area indicates a would be less inclined to cut new tracks parallel low priority for protection of already threatened to the existing ones for their own convenience wildlife in SGR. It would be equally easy, from a or comfort, and there would be less consequent cost and feasibility point of view, to avoid Small disturbance of fragile soils and vegetation cover Gobi Strictly Protected Area altogether and even that adds to desertification and exacerbates dust the buffer zone between Areas "A" and "B". An storms. The existing multiple tracks would begin to regenerate their surface crust and to revegetate 13 The large numbers of empty vodka bottles left along the vehicle (Eco-Trade LLC, 2004a). Better road surface tracks and placed at ovoo is evidence of a culture of drinking would allow trucks to run more efficiently and at and driving that needs to be changed as traffic increases in SGR. 43 Mongolia ­ Southern Gobi Regional Environmental Assessment Photo 22: Stockpile of coal Photo by B. Bayarjargal alignment that avoids Small Gobi Strictly Pro- Impacts of mine dewatering and tected Area is strongly recommended. water consumption Coal dust from trans-shipment. The pres- Mine dewatering will lower the water table in an ent arrangements whereby coal is unloaded and estimated 70,000 hectares. Local water sources stockpiled near the border for pick-up and onward such as wells and springs used by livestock, wild- transport by Chinese truckers is not only inef- life, and herder families would be interrupted. ficient but is a source of air pollution and adverse Vegetation that depends on the surface water impacts on human and animal health. Entrained table might not survive, with resulting impacts coal dust can travel several kilometers downwind on habitat, plant cover, and desertification. In the from storage and handling areas. Dust suppression aggregate, the impact on available pastureland is is required in the environmental protection plans small. However, on a local scale, herders might for the coal yards but apparently rarely practiced find themselves displaced from grazing land. (personal communication, Director, Small Gobi The potential impact is moderate, local/regional, Strictly Protected Area, November 2008). The im- and long term (persisting for some years after pact of the present arrangement is high intensity, mine closure). The overall impact on the water local, and medium term. Effective dust suppres- table cannot be mitigated. But there are mitiga- sion would mitigate it, but eliminating multiple tion measures for some of the resulting impacts, handling at the borders by allowing direct ship- mainly in the form of offsets to be provided by ment from mine to market would eliminate this the mining companies: new water supply points; impact altogether and reduce the cost of coal improvement and protection of other springs in transport as well. Implementing this recommenda- the vicinity such as South Gobi Sands is doing tion will require a bilateral agreement with China. at Ovoot Tolgoi; and monitoring the growth 44 Evaluation of Development Scenarios and Environmental and Natural Resource Management of plants such as saxaul and Siberian elm, with to be exceeded, it must be on the basis of such replanting and protection programs outside the planning, with wide stakeholder participation. zone of dewatering effect to replace those that do The best available information on climate change not survive. effects must be factored into the planning, and, where there is uncertainty, a precautionary ap- Overall, the SGR groundwater resources can proach is appropriate. sustain the development forecast in the base-case. Not enough is known about regional variations in groundwater availability to enable areas of Impacts of power generation and potential water supply shortfall in the short to transmission medium term to be identified. The necessary information should be collected since it may be Peak demand for electric power is expected to useful in siting water-using facilities and in ensur- increase from a very low number in 2009 to 294 ing that some aquifers are not over-allocated. The megawatts in 2012 and 650 megawatts by 2020. establishment of a central repository to accumu- In the base-case scenario, the most likely power late and manage information on groundwater is investment to go forward in SGR is a 450-mega- recommended. In the long term, water resources watts coal-fired plant at Oyu Tolgoi, intended planning on a national scale is important since to mainly serve the needs of the mine. Coal will development planners evidently have in mind likely be supplied from Tavan Tolgoi or Tsagaan growth in the SGR that is likely to exceed avail- Tolgoi. A second plant is possible at Tavan Tolgoi, able water resources. If the natural limits to up to 600 megawatts; this one would meet part of growth that water imposes on SGR are going the overall demand for the Region. Photo 23: Schools will have to be provided as the population expands and demands increase Photo by Tony Whitten 45 Table 4.2: Summary of Impacts on the Natural Environment of the Base-Case Scenario 46 Demands on Significant Impacts Impact Activity Natural Resources Intensity/Extent/Duration Rating Management Measures Development of mines and Physical conversion of 15,700 ha. · Change in landform M/Lo/Lt Irreversible Moderate · Company implement reclamation plan, Government officials on-site facilities inspect and enforce. · Loss of vegetation, habitat and pasture W/Lo/Lt Minor · Company implement reclamation plan, Government officials inspect and enforce. · Accident hazard to public, livestock, wildlife M/ Moderate · Maintain site security; implement reclamation plan. Lo/Lt · Dust, vibration, groundwater contamination, etc. Major · Company implement EIA and EMP. Government officials inspect H/Lo/Lt and enforce. Development of transport · Physical conversion of 800 ha · Barrier to livestock movement. M/Sr/Lt Irrevers- Moderate · Design and construct facilities for livestock passage. infrastructure for rail and road rights of way ible · Investigate wildlife migration and movement patterns. · Opening of quarries and borrow · Barrier to movement of wildlife; fragmentation of Major Determine appropriate locations and appropriate designs and pits habitat. H/R/Lt Irreversible construct wildlife crossing facilities. · Operation of heavy equipment Moderate · Use quarries and borrow pits approved by local environmental and concrete and asphalt plants · Land degradation at quarries, borrow pits, asphalt authorities and comply with standards for operation and · Establishment of construction plants, construction camps and storage yards. M/ reclamation. Require contractors to prepare and implement camps Lo/St waste management plans and to restore areas used for plants, Mongolia ­ Southern Gobi Regional Environmental Assessment camps and yards. Development of electric Interconnection with the national · Transmission towers provide perches for raptors, Moderate · No mitigation measure available. Offset with improved protec- power infrastructure grid. Construction of 450-MW degrade habitat for endangered bustard species; tion of other habitat. coal-fired plant at Oyu Tolgoi. lines cause bird mortality. M/Sr/Lt Construction in stages of 600-MW · Air emissions and ash from coal-fired plants; acid Major · Comply with national standards for power plants. Ensure proper coal-fired plant at Tavan Tolgoi. rain. M/R/Lt Global facilities for ash disposal. Mine dewatering Cone of depression created around · Loss of local wells and springs reduces useable Major · Create artificial springs; replace shallow wells with deep wells; mines will lower surface water pasture and degrades habitat. H/Lo/Lt offset loss through restoration, enhancement, and protection of table; an area of about 31,400 ha., other springs and wells. including the area of the mines · Loss of elms and saxaul trees degrades habitat, Moderate · Monitor condition of trees; irrigate to avoid loss if feasible; themselves plus ancillary facilities contributes to desertification. M/Lo/Lt plant and protect replacement trees in other locations to offset could be affected. unavoidable. (continued on next page) Table 4.2: Summary of Impacts on the Natural Environment of the Base-Case Scenario (continued) Demands on Significant Impacts Impact Activity Natural Resources Intensity/Extent/Duration Rating Management Measures Water for coal washing At least 136,000 m3/day · Depletion of nonrenewable resource in the Major · Further study needed. Monitor during operation and correct and mineral processing abstracted from deep aquifers, absence of adequate data, considered. problems caused by loss of surface supplies or land subsidence mainly fossil groundwater, and · H/Sr/Lt Irreversible if they occur. transmitted by buried pipeline. Transport of mine products 600 truck movements/day to · Dust from unimproved roads causes human and Major · Improve road surfaces and thereafter restrict trucks to the by road Gashuun Sukhait in 2009, increas- animal health problems, affects vegetation, and improved road lanes, enforce loading and speed limits, prohibit ing to 1,300 or nearly one per contributes to land degradation. H/Sr/Mt off-road driving by truckers; assist residents in relocating homes minute. 100 truck movements/day and herds if dust cannot be mitigated. Long-term fix is to shift in Nariin Sukhait increasing to 350 most hauling to rail. or nearly one every four minutes · Dust from coal loading and unloading at mines Moderate · Enforce dust control measures in EIAs for mines and coal depots. and transshipment points. H/Lo/Mt Eliminate transshipment operation at border. · Traffic presence and noise disturbs and repels Major · Improve road surface, restrict trucks to established lanes, wildlife in general and in the Small Gobi SPA in enforce speed and loading limits, set hauling schedule that particular. H/R/Mt provides for no traffic during hours in which wildlife are most likely to cross the road. Long-term solution is to shift most haul traffic to rail, with well-designed crossings for wildlife. · Increased frequency of accidents with wildlife, · Enforce speed and loading limits, provide well-designed cross- livestock, pedestrians and other vehicles. M/Sr/Mt ings for livestock, set and enforce regulations against drinking and driving, make accidents reportable safety incidents under mining company rules with disciplinary action as appropriate, including termination for alcohol-related incidents. Shift most Moderate hauling to rail. · Emissions of NOX, CO, HC, SPM degrade air qual- · Require mining and trucking companies to inspect trucks annu- ity--see text for quantities. W/Sr/Mt ally and test for compliance with air emission standards. · 3 tons/day of CO2 contribute to global warming. · Shift most hauling to rail. W/R/Lt Global (continued on next page) 47 Evaluation of Development Scenarios and Environmental and Natural Resource Management Table 4.2: Summary of Impacts on the Natural Environment of the Base-Case Scenario (continued) 48 Demands on Significant Impacts Impact Activity Natural Resources Intensity/Extent/Duration Rating Management Measures Transport of mine products One train can replace a large · Elimination of substantial amount of dust from · Need to ensure common rail gauge with China. Need bilateral by railroad number of trucks hauling and transshipment. H/Sr/Lt Major agreement to allow trains to cross border. · Reduced disturbance to wildlife because of quieter · To have full positive impact, effective wildlife crossings have to and less-frequent movements. M/R/Lt be designed and constructed. · However, if alignment chosen is through Small · Select railroad alignment around rather than through Small Gobi SPA, the impact will be negative instead. Major Gobi SPA. H/R/Lt · Reduced accident risk due to fewer trucks on the road. M/Sr/Mt · Reduced emissions of air pollutants. W/Sr/Lt Moderate · Reduced greenhouse gas emissions. W/R/Lt Recruitment of miners: · More than 5,000 new units of · Impacts of new construction. W/Lo/St Minor · Local government to enforce basic good practice. housing, the majority of it in · Unplanned and underserved housing develop- · Mining companies planning gated communities for workforce Recruitment doubles soum centers around Oyu Tolgoi. ments in soum centers. M/Lo/Lt will provide housing and all services. Companies planning population of soums · More than 2,500 m3/day of ad- integrated communities need to work with local government to surrounding mines by add- ditional water consumption provide housing. Local government needs to plan for housing ing between 12,000 and · More than 2.500 m3/day of Moderate for influx population, using five-year projection and monitoring Mongolia ­ Southern Gobi Regional Environmental Assessment 16,000 miners and family additional wastewater outcomes. members over 15 year · Nearly 13 tons/day of additional · Depletion of local water supplies. H/Lo/Mt · Develop new boreholes and provide treatment systems for period. Mining develop- solid waste public supply. ment triggers population · Additional heating and electric · Groundwater contamination and health hazards · Construct treatment works for entire soum population, as on- "influx" for additional power (at least 5 MW for entire from wastewater. H/Lo/Lt site systems will not accommodate the larger populations and population growth of population) there are no collection and treatment systems in place now. between 12,000 and · Schools, clinics, hospitals, police · Visual impact, groundwater contamination, land · Poor solid waste management already is having adverse 16,000 over same period. and fire, other municipal ser- degradation, potential source of disease and injury impacts. Construct solid waste collection and recycling/disposal Combined with recruit- vices for additional population from solid waste disposal by current practices. H/ Major facilities to serve the entire soum populations. ment, net effect is tripling Lo/Lt of population in soums surrounding mines. (continued on next page) Table 4.2: Summary of Impacts on the Natural Environment of the Base-Case Scenario (continued) Demands on Significant Impacts Impact Activity Natural Resources Intensity/Extent/Duration Rating Management Measures · Air emissions and ash (if coal-fired) from heating · Design and operate plants according to national standards. and generating facilities. W/Lo/Mt Coordinate ash disposal with solid waste management. · Medical waste from clinics and hospitals poses Minor · Provide proper storage and disposal facilities for medical waste health hazard. M/Lo/St and train medical personnel in approved methods. Induced development Service industries, hotels, shops, · Unplanned/under-serviced developments cause · Land use planning and zoning and enforcement thereof by local follows mining and related restaurants, desirable and undesir- land use conflicts, pollution, land degradation, government. infrastructure develop- able entertainment industries visual impacts. M/Lo/Mt · HIV/AIDS awareness and prevention programs. Enforce prohibi- ment. (including prostitution, drugs) · Prostitution and drug use spread HIV/AIDS and Moderate tions on illegal activity. will spring up in towns along other infectious diseases. M/Sr/Mt highways, and near mines. 49 Evaluation of Development Scenarios and Environmental and Natural Resource Management Mongolia ­ Southern Gobi Regional Environmental Assessment Impacts of planned and unplanned urban The High-Case Scenario development Table 4.3 summarizes the impacts in the high- Housing. An estimated 5,000 new units of case scenario. In addition to the evaluation of housing will be required, half for house miners intensity, spatial extent, and duration and the and their families and half for influx. Mining determination of significance of the impacts, the companies will provide some of the miners' hous- summary also reflects the extent to which impacts ing and will probably assist those who are going can be avoided, minimized, mitigated, or offset. to be housed in local towns in finding suitable The final column of the table presents impact- accommodations. The housing for the influx specific recommendations. The accompanying population--an estimated 10,500 people who text highlights comparisons and contrasts with will be attracted to the area because of the mining the base-case. development--is more problematic. If there is no housing available, the migrants may end up living in informal settlements. If housing is constructed Impacts of traffic and transport but without a formal town plan to guide its location and that of shops and other businesses, Moving from the base to the high-case will have development will not be orderly or easy to service. negative and positive impacts. In general, the same Impacts will be moderate, local, and long term. kinds of impacts described for truck traffic and Mitigation measures include town planning, sup- transport in the base-case (section 4.1.1) will occur port administration of land development in accor- in the high-case but at higher levels because of in- dance with plans, and enforcement of local laws creases in truck traffic. Certain differences between such as zoning. While government may not be the the two scenarios are highlighted in the following: provider of the housing, it will want to create an enabling environment in addition to the necessary There will be more roads. Additional mines will plans and infrastructure so that private developers require connecting roads to reach the main and individual owners can construct it. highway or railroad. If these are not developed from the outset as improved roads with the Municipal infrastructure and services. The same mitigating measures in design, construc- additional population, most of which is likely to tion, and use as are recommended for the settle in soum centers, will generate wastewater base-case, they will make more widespread the and solid waste. Population densities would rise adverse impacts of dust, noise, accident hazard, to the point that pit privies and septic tanks will and related disturbance to wildlife and deterio- not be suitable means of wastewater treatment, ration in the health of citizens and livestock. and informal dumping of solid waste, already Emissions of air pollutants and CO2 will a problem, will rapidly result in environmental increase at a rate that is higher than one that degradation. Impacts will be high intensity, lo- would be directly proportional to the increases in cal (or regional if an aquifer is contaminated by traffic volume, at least on the road from Tavan untreated wastewater or leachate from solid waste Tolgoi to Gashuun Sukhait. With more than dumps), and medium term. Corrective measures one truck movement per minute, congestion will be considerably more difficult and expensive will increase, causing trucks to run at slower than prevention. Mitigation specifically requires speeds and with more frequent and protracted design, construction, and operation of appropriate periods of idling, consuming more fuel. wastewater and solid waste management facilities. The shift to rail haul will be all but inevitable. Expanding towns will also need streets, water sup- If the potential cost and time savings at ply, and electricity. Clinics and schools will have to the higher volumes of coal and other mine be provided as population expands and demands outputs even in the base-case have not already increase. Their development should be provided caused a shift to rail transport, the combi- for in town plans and budgets. nation of higher truck volume and lower 50 Evaluation of Development Scenarios and Environmental and Natural Resource Management efficiency on the roads will accelerate that that water consumption information is not avail- shift. It is not difficult to imagine the road to able for some of the mines, it is possible that the Gashuun Sukhait being choked with traffic, demand for water from the developments in the and the delays and attendant costs will be high-case scenario will exceed the overall SGR intolerable to mine operators. Most of the im- groundwater potential. There are several uncer- pacts of that shift will be positive in compari- tainties: in sufficient data on groundwater avail- son to those of even present-day coal hauling ability that make it difficult to define limits, un- by truck (as discussed in base-case). known timing of new mining developments and Further fragmentation of wildlife habitat is related population growth, and decisions still to be likely. Rail connections from the mining areas made regarding processing (e.g., Will the various to the Trans-Mongolian Railway will consti- mines export washed or unwashed coal?). There tute an additional barrier to the movement is little doubt that there is adequate groundwater of livestock and wildlife. The rail lines will be to support development anticipated in the next oriented more or less in a northeast-southwest 10 to 12 years and perhaps, given the conservative direction. Already affected by the north-south assumptions underlying current estimates (Aca- road and rail lines of the base-case, the habi- cia Water, 2009), up to 25 years. It is probable, tats of wildlife that migrate or move widely though, that planned development plus necessary within SGR will be further fragmented. The supporting development (housing, for example) studies, which are necessary to better un- and induced development will generate demand derstand wildlife migration patterns and to that exceeds the potential of subregional or local design and locate crossings that will perform groundwater sources. More data are needed, and well, should be conducted on an urgent basis. water availability needs to be an ingredient in Transshipment of coal at border crossings must planning and review of all major developments. be eliminated. The greater coal volumes in the high-case merely add justification for alter- Transfer of surface water from the north. The ing the arrangements that lead to unloading, Herlen-Gobi Pipeline and Orhon-Gobi Pipeline stockpiling and reloading coal at the border projects are looked upon as the logical sources to crossings. augment water supply and support development in SGR, and they may well meet that objective. Impacts of mine dewatering and water However, in addition to feasibility studies, envi- consumption ronmental impact assessments, and other neces- sary preparatory work, they should be analyzed Mine dewatering will lower the water table in with respect to three " big picture" development an estimated 60,000 hectares in the high-case. planning concerns. While the total area is still small in comparison to the amount of available pastureland in SGR, The first of these is the sustainability of devel- this means that local water sources such as wells opment in arid regions. Since the beginnings of and springs used by livestock, wildlife, and herder urban development, cities have formed along riv- families will be interrupted in more locations. ers and near coastlines of oceans and large lakes-- Vegetation that depends on the surface water table in short, in places where water is available for may exist in some of the new locations and may drinking, irrigation, transport, and industrial use. not survive, with resulting impacts on habitat, There are few large cities in arid locales, and those plant cover, and desertification. On a local scale, that do exist, such as Phoenix, Arizona, and Los more herders may find themselves displaced from Angeles, California, depend heavily on imported grazing land. See 4.1.2 for the details on the evalu- water at considerable cost. Mongolia needs to be ation of this impact and its mitigating measures. sure that the costs of maintaining cities that are in many respects artificial--not, in the words of the Keeping in mind that lack of data on ground- late environmental planner Ian McHarg, "de- water resources makes predictions difficult and signed with nature"--are justified and sustainable. 51 Mongolia ­ Southern Gobi Regional Environmental Assessment The second concern is large-scale water degrade bustard habitat by providing perches for resource management. Transferring a significant raptors, and there is no realistic mitigation mea- fraction of the flow of two rivers to SGR will have sure. The transmission line from Shivee Ovoo to impacts on the flow regime and consequently on a connection point in China is long, hence a great the ecology of the rivers. These impacts may have deal of habitat will be affected. An offset in the implications for future water use and develop- form of improved protection for another impor- ment in the exporting river basins. Planning must tant bird area will be appropriate. be done at a broad enough scale to reveal impacts and balance water needs for both ecology and economic activities in both the importing and the Impacts of planned and unplanned exporting regions. urban development The third concern is, not surprisingly, impacts Housing. An estimated 10,000 new units of hous- of and adaptation to climate change. Here again, ing will be required, half to house miners and their more data and more analysis are needed. The im- families, and half for influx. Mining companies plications of climate change are not clear or simple will provide some of the miners' housing and will in Mongolia; there is little doubt that average probably assist those who are going to be housed temperatures are rising but the implications for in local towns in finding suitable accommoda- precipitation could vary across the country. Milder tions. The housing for the influx population--an winters in SGR could, for example, result in more estimated 10,500 people who will be attracted to winter precipitation and earlier thawing (Batima the area because of the mining development, is and Dagvadorj, 2000). Droughts are likely to be more problematic. If there is no housing available, more frequent and to last longer. In view of the the migrants may end up living in informal settle- uncertainty in exactly what ways climate change ments. If housing is constructed but without a will affect Mongolia, a precautionary approach formal town plan to guide its location and that of is essential in making major natural resource al- shops and other businesses, development will not location decisions such as allocating surface water be orderly or easy to service. Impacts will be mod- for interbasin transfers. Fortunately, a National erate, local, and long term. Mitigation measures Integrated Water Resource Management Plan that include town planning, support administration of should examine these questions is in preparation land development in accordance with plans, and (Acacia Water, 2009). enforcement of local laws such as zoning. While government may not be the provider of the hous- ing, it will want to create an enabling environment Impacts of power generation and in addition to the necessary plans and infrastruc- transmission ture so that private developers and individual owners can construct it. In addition to the medium-sized, coal-fired gener- ating stations that will be constructed in the base- Municipal infrastructure and services. The case scenario at Oyu Tolgoi and probably at Tavan additional population, most of which is likely to Tolgoi, the high-case scenario includes a large, settle in soum centers, will generate wastewater coal-fired plant at Shivee Ovoo. The generating and solid waste. Population densities will rise to capacity may be as much as 3,600 megawatts, the point that pit privies and septic tanks will and some or all of the power will be exported to not be suitable means of wastewater treatment, China. Such a plant will have major environmen- and informal dumping of solid waste, already tal impacts on regional air quality and greenhouse a problem, will rapidly result in environmen- gas emissions. Fly ash and bottom ash will require tal degradation. Impacts will be high intensity, recycling and/or disposal. Strict standards should local (or regional if an aquifer is contaminated be applied and aggressively enforced. As explained by untreated wastewater or leachate from solid in the base-case description, transmission towers waste dumps), and medium term. Corrective 52 Evaluation of Development Scenarios and Environmental and Natural Resource Management measures will be considerably more difficult and streets, water supply, and electricity. Clinics and expensive than prevention. Mitigation specifical- schools will need to be provided as population ly requires design, construction and operation of expands and demands increase. Their develop- appropriate wastewater and solid waste manage- ment should be provided for in town plans and ment facilities. Expanding towns will also need budgets. Photo 24: A water kiosk in Huldt Soum from which a herder who lives 40 km away is collecting water Photo by Albert Tuinhof 53 Table 4.3. Summary of Impacts on the Natural Environment of the High-Case Scenario 54 Significant Impacts Activity Demands on Natural Resources Intensity/Extent/Duration Impact Rating Management Measures Development of mines and on-site Physical conversion of 30,000 ha. · Change in landform. M/Lo/Lt Moderate · Company implement reclamation plan. Government facilities Irreversible officials inspect and enforce. · Loss of vegetation, habitat and Minor · Company implement reclamation plan. Government pasture. W/Lo/Lt officials inspect and enforce · Accident hazard to public, livestock Moderate · Maintain site security; implement reclamation plan. and wildlife. M/Lo/Lt · Dust, vibration, groundwater con- · Company implement EIA and EMP. Government of- Major tamination, etc. H/Lo/Lt ficials inspect and enforce, Development of transport infrastruc- · Physical conversion of 1,300 ha. for rail · Barrier to livestock movement. Moderate · Design and construct facilities for livestock passage. ture--connecting roads for new and road rights of way. M/Sr/Lt Irreversible mines, and rail connection to Trans- · Opening of quarries and borrow pits. · More barriers to movement of wildlife · Investigate wildlife migration and movement patterns. Mongolian Railway · Operation of heavy equipment and and further fragmentation of habitat Major Determine appropriate locations and appropriate concrete and asphalt plants. than in base-case. H/R/Lt Irrevers- designs and construct wildlife crossing facilities. · Establishment of construction camps. ible · Use quarries and borrow pits approved by local · Land degradation at quarries, environmental authorities and comply with standards borrow pits, asphalt plants, construc- for operation and reclamation. Require contractors to tion camps, and storage yards. Moderate prepare and implement waste management plans and Mongolia ­ Southern Gobi Regional Environmental Assessment Disturbance to local residents and to restore areas used for plants, camps and yards. wildlife. M/Lo/St Development of electric power In addition to the power plants and · Transmission towers provide perches · No mitigation measure available. Offset with improved infrastructure transmission lines of the base-case (to for raptors, degrade habitat for protection of other habitat. be described when more fully known) endangered bustard species; lines there will be a mine-mouth plant of 3,600 cause bird mortality. H/Sr/Lt MW capacity at Shivee Ovoo, which more · Air emissions and ash from coal-fired Major · Comply with best available technology to control than doubles generating capacity of the plants. H/R/Lt Global emissions. Recycle fly ash. Construct and operate ash base-case, with at least 300 km of 500-kV disposal facility. transmission line to China and additional · Acid precipitation. M/R/Lt · Use low-sulfur coal. lines for connection to the national grid. · Water consumption for cooling. H/R/Lt · Use closed-loop cooling system. (continued on next page) Table 4.3. Summary of Impacts on the Natural Environment of the High-Case Scenario (continued) Significant Impacts Activity Demands on Natural Resources Intensity/Extent/Duration Impact Rating Management Measures Mine dewatering Cone of depression created around mines · Loss of additional local wells and · Create artificial springs; replace shallow wells with will lower surface water table; an area of springs reduces useable pasture and Major deep wells; offset loss through restoration, enhance- about 60,000 ha including the area of the degrades habitat. H/Sr/Lt ment, and protection of other springs and wells. mines themselves plus ancillary facilities · Loss of additional elms and saxaul · Monitor condition of trees; irrigate to avoid loss if could be affected. trees degrades habitat, contributes to Moderate feasible; plant and protect replacement trees in other desertification. M/Lo/Lt locations to offset unavoidable Water for coal washing and mineral Water demand for mining and energy will · Coupled with projected increases · Obtain more complete data on water resources. Limit processing rise to at least 280,000 m3/day in domestic and livestock demand, development to that which water resources can ac- overall groundwater potential of SGR commodate. will be exceeded. H/R/Lt · Fossil aquifers will be depleted, caus- Major · Insist on state of the art water conserving facilities and ing local shortage. Competition for equipment for all new industrial or commercial devel- supply from surface aquifers causing opment. Monitor impacts of groundwater extraction. local shortages. H/Sr/Lt Construct one or both water transfer 130,000 or 215,000 or 345,000 m3/day · Reduction in river flows degrades wa- · Collect adequate data and prepare a comprehensive schemes (Herlen-Gobi and Orhon-Gobi abstracted from Herlen or Orhon Rivers, or ter quality, adversely affects aquatic water resource management plan for Mongolia, with Pipelines) both. Impact temporarily rated as major ecosystems. ?/?/? full stakeholder participation. because of high risk and lack of adequate · Existing users experience water · Establish a water management agency with commen- information. shortage. ?/?/? Major surate responsibility and authority. · Future uses of river water foreclosed. ?/?/? · Unsustainable development enabled in SGR. ?/?/? (continued on next page) 55 Evaluation of Development Scenarios and Environmental and Natural Resource Management Table 4.3. Summary of Impacts on the Natural Environment of the High-Case Scenario (continued) 56 Significant Impacts Activity Demands on Natural Resources Intensity/Extent/Duration Impact Rating Management Measures Transport of mine products by road Increase to 2,000 truck movements/day to · Dust from unimproved roads causes · Improve road surfaces and thereafter restrict trucks to Gashuun Sukhait in 2020, more than one human and animal health problems, the improved road lanes, enforce loading and speed per minute. 100 truck movements/day in affects vegetation, and contributes to Major limits, prohibit off-road driving by truckers; assist Nariin Sukhait, increasing to 350 or nearly land degradation. H/Sr/Mt residents in relocating homes and herds if dust cannot one every four minutes. be mitigated. Long-term fix is shift to rail. · Coal dust from loading and unloading · Enforce dust control measures in EIAs for mines and coal at mines and transshipment points. Moderate depots. Eliminate transshipment operation at border. H/Sr/Mt · Traffic presence and noise disturbs · Improve road surface, restrict trucks to established and repels wildlife in general and lanes, enforce speed and loading limits, set hauling in the Small Gobi SPA in particular. schedule that provides for no traffic during hours in Major H/R/Mt which wildlife are most likely to cross the road. Long- term solution is to shift most haul traffic to rail, with well-designed crossings for wildlife. · Increased frequency of accidents with · Enforce speed and loading limits, provide well-designed wildlife, livestock, pedestrians and crossings for livestock, set and enforce regulations other vehicles. M/Sr/Mt against drinking and driving, make accidents reportable safety incidents under mining company rules with disci- Mongolia ­ Southern Gobi Regional Environmental Assessment plinary action as appropriate, including termination for Moderate alcohol-related incidents. Shift most hauling to rail. · Additional emissions of NOX, CO, HC, · Require mining and trucking companies to inspect SPM degrade air quality--see text trucks annually and test for compliance with air emis- for quantities. M/Sr/Mt sion standards. · 4.7 tons/day of CO2 contribute to · Shift most hauling to rail. global warming. W/R/Lt Global (continued on next page) Table 4.3. Summary of Impacts on the Natural Environment of the High-Case Scenario (continued) Significant Impacts Activity Demands on Natural Resources Intensity/Extent/Duration Impact Rating Management Measures Transport of mine products by railroad One train will replace a large number of · Elimination of substantial amount · Need to ensure common rail gauge with China. Need trucks of dust from hauling and trans- bilateral agreement to allow trains to cross border. shipment. H/Sr/Lt Major · Reduced disturbance to wildlife · To have full positive impact, effective wildlife crossings because of quieter and less-frequent have to be designed and constructed. movements. M/R/Lt However, If alignment chosen is · Select railroad alignment around rather than through through Small Gobi SPA, the impact Major Small Gobi SPA. will be negative instead, H/R/Lt · Reduced accident risk due to fewer trucks on the road. M/SrMt · Reduced emissions of air pollutants. W/Sr/Lt Moderate · Reduced greenhouse gas emissions. W/R/Lt Recruitment of miners: · More than 16,000 new units of housing. · Impacts of new construction. W/Sr/St Minor · Local government to enforce basic good practice. · More than 8,000 m3/day of additional · Unplanned and under-served hous- · Mining companies planning gated communities for Recruitment plus family members water consumption. ing developments in soum centers. workforce will provide housing and all services. Com- plus influx add at least another 40,000 · More than 8,000 m3/day of additional M/Lo/Mt panies planning integrated communities need to work to the populations of the soums sur- wastewater. with local government to provide housing. Local govern- · 50 tons/day of additional solid waste. Moderate rounding mines over 15-year period. ment needs to plan for housing for influx population, The effect is a total increase of as much · Additional heating and electric power using five-year projection and monitoring outcomes. as 80,000. (at least 10 MW for entire population). · Depletion of local water supplies. H/ · Develop new boreholes and provide treatment systems · Schools, clinics, hospitals, police and Lo/Mt for public supply. fire, other municipal services for ad- · Groundwater contamination and · Construct treatment works for entire soum population, ditional population health hazards from wastewater. H/ as on-site systems will not accommodate the larger Lo/Lt Major populations and there are no collection and treatment systems in place now. 57 Evaluation of Development Scenarios and Environmental and Natural Resource Management (continued on next page) Table 4.3. Summary of Impacts on the Natural Environment of the High-Case Scenario (continued) 58 Significant Impacts Activity Demands on Natural Resources Intensity/Extent/Duration Impact Rating Management Measures · Visual impact, groundwater · Poor solid waste management already is having contamination, land degradation, adverse impacts. Construct solid waste collection and potential source of disease and injury Major recycling/disposal facilities to serve the entire soum from solid waste disposal by current populations. practices, H/Lo/Lt · Air emissions and ash (if coal-fired) · Design and operate plants according to national from heating and generating facili- standards. Coordinate ash disposal with solid waste ties. L/Lo/Mt management. · Medical waste from clinics and hospi- Minor · Provide proper storage and treatment/disposal facili- tals poses health hazard. M/Lo/St ties for medical waste and train medical personnel in approved methods. Induced development follows mining Service industries, hotels, shops, restau- · Unplanned and unserviced develop- · Land use planning and zoning and enforcement and related infrastructure develop- rants, desirable and undesirable entertain- ments cause land use conflicts, pol- thereof by local government. ment. ment industries (the latter including lution, land degradation, and visual prostitution, drugs) will spring up in towns impacts. M/Lo/Mt Moderate along highways, and near mines. · Prostitution and drug use spread HIV/ · HIV/AIDS awareness and prevention programs. Enforce AIDS and other infectious diseases. prohibitions on illegal activity. Mongolia ­ Southern Gobi Regional Environmental Assessment M/Sr/Mt 5. Institutional Arrangements for Implementation of the REA T his chapter summarizes the respon- ernors of Khanbogd and Tsogt-Tsetsii Soums, sibilities of the agencies and other November 2008). organizations that need to be involved in the implementation of the recom- Simply put, soum governments are going to mended actions and programs in the REA. These have to prepare their towns for rapid increases in management measures are proposed in Tables 4.2 population and business activity and maintain ba- and 4.3 for the impacts of the base-case and high- sic municipal services as the increases occur. This case development scenarios, respectively. Table will involve a range of activities: 5.1 summarizes the management measures and identifies the entities that will be tasked for carry- Update land use plans and develop zoning to ing them out and, where relevant, those that will support orderly development and "livable" be responsible for monitoring and oversight. The soum centers; discussion is organized by agency, presenting the Enforce compliance with land use plans and functions recommended for each of them, along procedures for reviewing and approving devel- with brief comments on their capacity and readi- opment proposals; ness to undertake those responsibilities. In addi- Work with mining companies to plan for tion, two new agencies are proposed--a regional housing construction, with a five-year plan- development coordinating body and groundwater ning horizon (Castalia, 2008); management information center. Obtain and operate additional public water supply; Obtain and operate expanded power and Soum Government heating systems; Obtain and operate wastewater collection and The soum governors and their staffs and the treatment systems; and soum citizens' representative khurals should be Work with bag governors to replace present key players in planning for the rapid urban de- ad hoc solid waste dumps on town outskirts velopment that is going to follow the expansion with appropriately located sanitary landfills. of mining and construction of new large infra- structure in SGR, even in the base-case scenario. Capacity and readiness. Soum government staffs The governors themselves acknowledge that their are small and do not have all of the necessary tasks will be substantial and varied, and they are skills to deal with the tripling populations in the concerned about their readiness to undertake soum centers and maintain desirable and efficient them (personal communication with the Gov- places to live. Planners, building inspectors, health 59 Table 5.1. Summary of Institutional Responsibilities for Impact Management Measures 60 Activity Management measures Implementation responsibility Oversight responsibility Development of mines and on- · Implement reclamation plan Mining company for all items MNET and SSIA officers in aimags site facilities · Maintain site security · Implement EIA and EMP Development of transport infra- · Design and construct facilities for livestock passage. · MFA to design crossings for livestock; · MRTCUD to ensure highway and railway structure--connecting roads for · Investigate wildlife migration and movement patterns. Determine roads contractor or mining company to designs include crossings as recommended . new mines, and rail connection appropriate locations and appropriate designs and construct wildlife construct. · MNET and SSIA officers in aimags to Trans-Mongolian Railway crossing facilities. · Academy of Science and MNET to design · MNET and SSIA officers in aimags · Use quarries and borrow pits approved by local environmental wildlife crossings in collaboration with authorities and comply with standards for operation and reclamation conservation NGOs and other experts. · Prepare and implement waste management plans and restore areas · Contractor or mining company used for plants, camps and yards. · Contractor or mining company Development of electric power · Offset bustard habitat degradation with improved protection of other · Developer (mining company or energy · MNET infrastructure habitat. company) · MNET; MME · Comply with best available technology to control emissions. Use · Developer (mining company or energy · MNET and SSIA officers in aimags closed loop cooling system. company) · MNET and SSIA officers in aimags · Recycle fly ash. Construct and operate ash disposal facility. · Operator · Use low-sulfur coal · Operator Mongolia ­ Southern Gobi Regional Environmental Assessment Mine dewatering · Create artificial springs; replace shallow wells with deep wells; offset Mining company for all items MNET officers in aimags loss through restoration, enhancement, and protection of other springs and wells. · Monitor condition of trees; irrigate to avoid loss if feasible; plant and protect replacement trees in other locations to offset unavoidable losses Water for coal washing and · Obtain more complete data on water resources. · Proposed groundwater management · MNET-Water Authority mineral processing · Limit development in SGR to that which water resources can accom- information center. · GMIC; MNET-Water Authority modate, or construct pipelines from rivers to the north · Aimag governors; proposed regional de- · MNET · Insist on state of the art water conserving facilities and equipment for velopment coordinating body; MRTCUD all new industrial or commercial development · Line ministries; aimag government (continued on next page) Table 5.1. Summary of Institutional Responsibilities for Impact Management Measures (continued) Activity Management measures Implementation responsibility Oversight responsibility Construct one or both water · Establish a water management agency with commensurate responsi- · Government of Mongolia (MNET to lead) transfer schemes (HGB and OGB) bility and authority. · New water management agency · Collect adequate data and prepare a comprehensive water resource management plan for Mongolia, with full stakeholder participation. Transport of mine products by · Improve road surfaces and thereafter restrict trucks to the improved · Mining companies; MRTCUD · MNET road road lanes, · Mining companies; police · MRTCUD; MNET and SSIA officers in aimags · Enforce loading and speed limits, prohibit off-road driving by truck- · Soum governments; mining companies · MNET officers in aimags ers; · Mining companies; MRTCUD · MRTCUD · Assist residents in relocating homes and herds if dust cannot be · SSIA officers in aimag centers · SSIA mitigated. · Government of Mongolia · MNET · Long-term fix is to shift most hauling to rail. · Mining companies; trucking companies; · MRTCUD · Enforce dust control measures in EIAs for mines and coal depots. aimag governments; MNET · SSIA · Eliminate transshipment operation at border. · Police at aimag level · SSIA · Set and enforce hauling schedule that provides for no traffic during · Mining companies hours in which wildlife are most likely to cross the road. · SSIA in aimag centers · Set and enforce regulations against drinking and driving, · Make accidents including those involving wildlife reportable safety incidents under mining company rules with disciplinary action as appropriate, including termination for alcohol-related incidents. . · Require mining and trucking companies to inspect trucks annually and test for compliance with air emission standards. Transport of mine products by · Need to ensure common rail gauge with China. · Government of Mongolia MNET railroad · Need bilateral agreement to allow trains to cross border so that trans- · Government of Mongolia shipment can be eliminated. · MRTCUD · To have full positive impact, effective wildlife crossings have to be designed and constructed. (continued on next page) 61 Institutional Arrangements for Implementation of the REA Table 5.1. Summary of Institutional Responsibilities for Impact Management Measures (continued) 62 Activity Management measures Implementation responsibility Oversight responsibility Recruitment of miners: · Local government to enforce basic good practice in constructing new · Soum government · Aimag government housing, shops, etc. · Mining companies and local govern- · Aimag government Recruitment triples populations · Mining companies planning gated communities for workforce will ments · Aimag government of soums surrounding mines by provide housing and all services. Companies planning integrated · Soum governments · Aimag government adding 20,000 miners and family communities need to work with local government to arrange for · Soum governments · Aimag government members over 15-year period. housing. Local government needs to plan for housing for influx popu- · Soum governments · MNET and SSIA officers in aimags Mining development triggers lation, using five-year projection and monitoring outcomes. · Soum governments · MoH; SSIA population "influx" for additional · Develop new boreholes and provide treatment systems for public · Soum or aimag governments · MRTCUD; MNET, etc. population growth 20,000 over supply. · Aimag governments same period. Combined with re- · Construct treatment works for entire soum population, as on-site cruitment, net effect is five-fold systems will not accommodate the larger populations and there are increase of population in soums no collection and treatment systems in place now. surrounding mines. · Poor solid waste management already is having adverse impacts. Construct solid waste collection and recycling/disposal facilities to serve the entire soum populations. · Design and operate power and heating plants according to national standards. Coordinate ash disposal with solid waste management. · Provide proper storage and treatment/disposal facilities for medical waste and train medical personnel in approved methods. Mongolia ­ Southern Gobi Regional Environmental Assessment · Establish a new coordinating body for sustainable development of SGR. Induced development follows · Update land use plans and enforce compliance. · Aimag and soum governors MRTCUD mining and related infrastructure · HIV/AIDS awareness and prevention programs. Enforce prohibitions · Aimag and soum governors, Ministry of development. on illegal activity. Health officers in aimags, SSIA Institutional Arrangements for Implementation of the REA officers, and utility operators are some of the new aimag function (in contrast to functions per- jobs that require new skills. The typically small formed by MNET and SSIA from their offices in budgets set by the aimag will need to be increased Ulaan Baator). prior to mining development. Budgets should not be a problem for those soums where mines Update land use plans and enforce compli- are located and have begun operating provided a ance; sufficient portion of the mine revenue is allocated Monitor and enforce implementation of EIAs to the soum for capital and operating expenses. and mine reclamation plans; Tsogt Tsetsii Soum, which contains Tavan Tolgoi Enforce compliance with environmental coalmine, takes in ample revenue to cover the standards, including for quarries and borrow costs of government operation (personal com- pits during road construction, management munication with the Governor, November 2008). of wastes from construction sites, and power However, soums near mines that house some of plants; the miners and experience population influx and Enforce power plant emission standards, induced development do not have that ready vehicle emission standards; source of revenue and will need budget support. Enforce wastewater treatment plant effluent standards; Soum governors and soum citizens representa- Monitor impacts of mine dewatering and tive khurals need to have adequate voice in region- implementation of offsets (replacement wells al development decisions that affect their jurisdic- and springs, replanting of trees, etc.); tions. Preparation of regional development plans, Limit development to that which can be ac- review and approval of EIAs for mines and major commodated by available water resources; infrastructure, and issuance of mining permits are Require state of the art water conservation centralized functions that do not afford the soums facilities in new commercial and industrial much opportunity to influence outcomes. developments; Enforce truck loading and speed limits and restrictions on off-road driving by truckers; Aimag Government Enforce dust control measures in EIAs for mines and coal depots; In addition to land use planning and development Enforce hauling schedules to permit wildlife management activities, the three aimags in SGR movement across highways; have environmental impact management func- Set and enforce regulations against drinking tions that will be important in REA implementa- and driving; tion. The aimags are somewhat better equipped Require mining and trucking companies to than are the soums to undertake their responsibili- inspect trucks annually for compliance with ties, primarily because officers from central minis- air emission standards; tries are posted there and are provided budgets by Oversee, advise and facilitate coordination their respective ministries. However, in terms of between soum governments and mining com- the sheer number of REA-related activities requir- panies on issues including housing, municipal ing implementation, the aimags have the most services, infrastructure for workforce and challenging task menu. There are significant gaps influx population; that need to be filled to enable aimags to fulfill Oversee, advise, and facilitate soum govern- their functions. ments in providing water supply, wastewater collection and treatment, solid waste disposal The functions listed for the aimags in Table for rapidly growing population; 5.1 are summarized below. Where a function is Provide for proper storage and disposal of being carried out by MNET or SSIA staff posted medical wastes; to the aimag and reporting jointly to the gover- Implement HIV/AIDS awareness and preven- nor and their central agencies, it is shown as an tion programs; 63 Mongolia ­ Southern Gobi Regional Environmental Assessment Establish a new coordinating body for sus- a tool for decisionmakers. Ideally, approval of EIA tainable development of SGR. reports should include a voice from local admin- istrations since the local administration carries Capacity and readiness. The magnitude and range most of the responsibility of implementation of of tasks of aimag governments is huge with the environmentally preferred products and environ- expectations of increasing the probability that min- mental management plans (EMP) included in ing-based development in SGR will be sustainable the EIAs. Moreover, since an applicant for a mine and will lead to desirable outcomes for the Region's license must submit the EIA with the application natural and human environments and its economy. (The Asia Foundation, 2007), review of the EIA Advance preparation is essential. The staffing, skills is an appropriate way for the aimag governor to levels, facilities and equipment, and levels of ex- become involved in a decision on mineral resource penditure on environmental management and de- development. Currently, the local administration velopment management and planning need to be is not involved in decisions on approval of EIAs. reviewed in each of the three SGR aimags for the This needs to be changed. present situation and projected for the base-case or high-case scenarios. Adequate resources should Expanded role in development policymaking be made available in advance of need. In addition, and planning. Another gap is the lack of a frame- described below are several issues of responsibility work and systems to ensure that local governments and authority that need to be addressed. and citizens are consulted in the process of for- mulating development policies, strategies, plans, Expanded role in reviewing mining license ap- and regulations. Policymaking is largely seen to be plications. Local governments are decisionmakers the realm of the national government, with weak on land possession. Aimag governors exercise the mechanisms to gain informed input or to circulate right to issue land use permits for infrastructure drafts to key stakeholders or to the general public. development projects that are in the land manage- The same situation applies to other sectors. De- ment plan approved by aimag citizen representa- velopment policy and strategies are often carried tive's khural. The governors are formally allowed to out at the national level with little contribution participate in mine licensing. However, the limited from local administrations including citizen rep- time provided does not allow adequate consulta- resentative's khurals (councils), even though local tion with soum and aimag citizen representative's authorities are expected to play a significant role khurals and soum governors. For a mining permit, in the implementation of these strategies. Much the aimag governor whose territory contains the of the land use planning function in Mongolia is proposed site is formally notified by the Mineral centralized in the Administration of Land Affairs, Resource and Petroleum Authority of Mongolia Geodesy and Cartography (ALAGAC). (MRPAM) in writing. The governor can organize consultations or public hearings and can reject the Mechanism for inter-aimag coordination in application with justification but has only 30 days planning. As explained above, local administra- to respond. Under the Law on Minerals (Article tions should be much more involved in EIA 19.4), MRPAM would consider the application to and development planning and decisionmaking be approved by the aimag governor if no response that affects SGR, including approvals for mines is forthcoming within the 30-day period. Aimag and major infrastructure. There should be a governors should be accorded a longer time for mechanism for coordination of these functions review of mine license applications, and a positive among the SGR aimags when the activities under or negative reply from the governor concerned consideration have implications for the SGR. The should be required prior to MRPAM approval. proposed regional development planning com- mittee would meet this need, provide it includes Participation in review of EIA. Because EIA private sector and civil society members and has reviews and approvals are centralized at MNET, access to the necessary scientific, engineering and the EIA is perceived as an MNE task rather than planning expertise. The committee would have 64 Institutional Arrangements for Implementation of the REA formal responsibility to review, analyze, and make Oversee compliance with best available emis- recommendations on mine licenses, EIAs, risk sions control technology in design and opera- mitigation plans, mine closure plans, environmen- tion of electric power plants, in collaboration tal rehabilitation plans, and all other development with MME; projects with potential environmental and social Oversee, through the Water Authority, the impacts. The aimag governors could chair the establishment of the proposed groundwa- committee on a rotating basis. ter management and information center to obtain more complete data on groundwater resources in SGR and to serve as the focal Ministry of Nature, Environment point for water resource management in SGR; and Tourism Oversee development of decision making that conforms to the limitations imposed by avail- The functions listed for the MNET at the central able water resources; level in Table 5.1 are detailed below: Oversee implementation of state of the art water conservation facilities and equipment in Design and locate wildlife crossings along new industrial or commercial development; railroads and highways, in collaboration with Lead the Government in establishing a water the Academy of Science, conservation NGOs, management process to develop plans and and other experts; make decisions on national water resource Oversee implementation of offsets for degra- issues such as north-south transfer of surface dation of houbara bustard habitat caused by water to support economic growth in SGR, installation of electricity transmission lines; perhaps resolving overlapping and unclear Photo 25: Female houbara bustard photographed during a recent NEMO-Rio Tinto financed survey in SGR Photo by B. Bayarjargal 65 Mongolia ­ Southern Gobi Regional Environmental Assessment mandates that limit the effectiveness of the plans and reclamation plans in SGR because there existing institutions; are few mines actually operating. At mines else- Oversee improvement of main road surfaces where in Mongolia, it is common to find failure of in SGR; the Government to collect the required reclama- Oversee enforcement of loading and speed tion deposit (50 percent of the estimated annual limits and limitations on off-road driving by cost of reclamation), inadequate reclamation plan- truckers; ning, and insufficient attention to the environ- Set hauling schedule that provides for no traf- mental impacts of tailings and waste rock deposits fic during hours when wildlife are most likely (World Bank, 2006). These problems are more to cross highways, and oversee enforcement; prevalent at operations of domestic mining com- Oversee inclusion of effective wildlife cross- panies; international companies generally comply ings in railways; with environmental requirements (personal com- Collaborate with MRTCUD in forming a munication, Mongolian National Mining Associa- new development coordinating body in and tion, November 2008). Project-specific EIAs, such for SGR. as the one prepared for Oyu Tolgoi, devote a great deal of attention to mine reclamation and closure, Capacity and Readiness addressing both social and environmental aspects. Mine closure is therefore not considered in detail The MNET plays a key role in management of in the REA. development impacts through the EIA process. Within MNET, the Department of Environment The EIA has great potential to assist in and Natural Resources is responsible for formula- guiding development in SGR in the direction tion of EIA guidelines and implementation. It of sustainability. However, for this to occur, EIA carries out EIA screening, review, and approval, review and approval will need to be less central- but there are only 7 staff to do this work. It also ized, with greater opportunity for aimag and soum manages the licensing of consulting companies to and civil society inputs to the process. In addition, prepare EIAs. The MNET Department of Pro- line ministry decisionmaking will need to be bet- tected Area Management develops policies, action ter linked with EIA so that MNET environmental plans, and protected area development proposals management function can have more effect. The and coordinates management of state protected MNET staff in the aimags need to be trained areas in Mongolia. The MNET officers at the and empowered in environmental planning, and aimag level do not have the equivalent authority MNET will need to be engaged with the proposed as their SSIA counterparts to impose penalties and SGR development committee, perhaps by provid- fines. There are fewer MNET officers than SSIA ing trained staff to support its work. Clarification inspectors. The MNET employs 211 rangers at of the respective roles of environment officers and the soum level, working in protected areas. The SSIA inspectors and better coordination between World Bank (2006) mining sector review stated them and with local government are also desirable. that monitoring and enforcement in the min- ing sector was improving, but that effectiveness was constrained by two factors: first, lack of an Ministry of Roads, Transportation, appropriate structure to ensure the timely enforce- Construction and Urban ment of rules and procedures for local government Development and land user permissions/contracts, governors' approval of environmental submissions, and noti- The REA-related functions listed for the MRT- fications and enforcement of sanctions for license CUD in Table 5.1 are detailed below: violations; and, second, poor coordination among the MNET, SSIA, and aimag and soum adminis- Ensure that railway and highway designs trative bodies. There is not much of a track record include livestock and wildlife crossings as rec- on implementation of environmental management ommended respectively by Ministry of Food 66 Institutional Arrangements for Implementation of the REA and Agriculture (MFA) and by MNET and Collaborate with MNET in leading the the Academy of Science; establishment of a new coordinating body for Assist aimag governors and new regional sustainable development in the SGR; coordinating body in limiting development in Oversee and support updating of land use SGR to that which can be sustained by avail- plans for aimags and soums; able water resources; Play a lead role in assessing and meeting needs Improve road surfaces in SGR; for strengthened development planning and Oversee enforcement of loading and speed management capacity at aimag and soum limits and prohibition on off-road driving by levels. truckers, in collaboration with MNET and SSIA officers at aimag level; State Specialized Inspection Agency Plan and oversee development of railways to shift most coal hauling from highway to rail, The Department of Environment, Geology, Min- which includes ensuring a common rail gauge ing and Radiation Inspection is the relevant part with Chinese rail system; of the SSIA for most of the functions involving Lead Government in eliminating trans-ship- mining and environmental management. The ment of coal at border crossings by allowing REA-related functions listed for the SSIA at the trucks and trains to continue into China; central level in Table 5.1 are detailed below: Oversee implementation of regulations pro- hibiting drinking and driving; Oversee enforcement activities of SSIA Ensure that railroads include effective wildlife inspectors in the aimags, with special atten- crossings; tion to implementation of EIA provisions, Photo 26: Tavan Tolgoi coal trucks near the Gashuun Sukhait Mongolia-China border point Photo by Luke Distelhorst/Oyu Tolgoi Project 67 Mongolia ­ Southern Gobi Regional Environmental Assessment dust control in coal hauling, mining company Improve road surfaces and thereafter restrict safety programs regarding highway accidents, trucks to the improved lanes; annual inspections of trucks; Enforce truck loading and speed limits and Oversee aimag and soum governments' prohibitions on off-road driving by truckers; provisions for proper storage and disposal of Shift hauling from road to rail; medical waste. Set and enforce hauling schedules that pro- vide for no traffic during hours when wildlife Capability and Readiness are most likely to cross highways; Make accidents including those involving The SSIA functions do not have to change wildlife reportable safety incidents under min- radically, but the magnitude of its task will grow ing company rules; rapidly with development of new mines, power Take disciplinary action as appropriate, includ- plants, wastewater treatment plants, landfills, and ing termination for alcohol-related incidents; other industry and infrastructure. At present the Inspect trucks annually and test for compli- Department of Environment, Geology, Mining, ance with air emission standards; and Radiation Inspection has 3 to 5 environ- Work with local communities to arrange for mental inspectors in each aimag. There are about housing where integrated community is the 380 rangers employed at the soum level who company's approach; report to the Aimag Specialized Inspection Unit Assist local government in land use planning, They are responsible for reporting illegal activities infrastructure and municipal service planning including unlicensed hunting, littering, and dis- to cope with population increases; turbance in local communities. As mining devel- Support and participate in the establishment opment and related urban development proceeds, of a regional body to coordinate development SSIA will need to monitor workloads and provide in SGR. additional trained staff in advance of need. Miscellaneous functions of other private sec- tor entities are listed below: Mining Companies and Other Private Sector Entities Construct facilities for livestock and wildlife crossing, according to designs developed by The REA-related functions listed for the mining Government--roads and railroad contractors; companies and other private sector entities in Use quarries and borrow pits approved by Table 5.1 are detailed below: local environmental authorities and comply with standards for operation and reclama- Implement EIA and EMP recommendations; tion--roads, railroad and utility contractors; Implement mine reclamation plans; Prepare and implement waste management Use quarries and borrow pits approved by plans and restore areas used for plants, camps, local environmental authorities and comply and yards--roads, railroad, and utility contrac- with standards for operation and reclamation; tors; Offset bustard habitat degradation by power Offset degradation of bustard habitat caused transmission lines with improved protection by power transmission lines, with improved of other habitat; protection of other habitat--electric utility Manage impacts of dewatering: create artifi- companies and their contractors; cial springs; replace shallow wells with deep Comply with best available technology to wells; offset loss through restoration, enhance- control emissions; used closed loop cooling ment and protection of other springs and systems--electric utilities; wells; monitor condition of trees and irrigate Construct and operate ash disposal facility; re- to avoid loss if possible, otherwise plant and cycle fly ash where possible--electric utilities; protect replacement trees in other locations; Use low-sulfur coal--electric utilities. 68 Institutional Arrangements for Implementation of the REA NGOs in the Mining Sector Responsible Mining Initiative for Sustainable Development (RMI). The REA-related functions Mongolian National Mining Association for RMI are detailed below: (MNMA). The REA-related functions for the MNMA are detailed below: Began as a multi-stakeholder forum including industry, government, parliamentarians, and Advocates principles of responsible mining academics, from which have emerged a defini- among its more than 100 members; tion of responsible mining and a list of the Works with environmental NGOs such as principles to be observed in achieving it; Nature Conservancy; The forum established RMI as an NGO that Lobbies for improved legislation and regula- would promote transparency, knowledge- tions to promote sustainable mining. sharing, and stakeholder participation. Emphasizes value of transparency; Sees need to improve local government capac- ity to deal with mining companies. 69 6. Summary of Recommendations T he Tables 4.2 and 4.3 details the many to MNET and observations on some areas of recommended measures aimed at strengthening, though not comprehensive, are re- avoiding or mitigating the potentially viewed in Section 5.3. The recommended next step negative environmental impacts of for MNET is to establish an internal task force, mining-centered development in SGR. The rec- supplemented if necessary by outside experts, to de- ommendations summarized in this final chapter tail capacity-building needs and develop an action of the REA are for the broader activities, mainly plan. It is likely that more staff are needed in the institutional in nature, that need to be carried out EIA review division as well as in the SGR aimags in order to support sustainable development and to monitor environmental management plan enable effective environmental impact monitoring and reclamation plan implementation by mining and management in the SGR. companies. One action of particular importance, to be undertaken jointly with SSIA, is to improve coordination so that the resources of MNET and Strengthening Capacity of Existing SSIA will be used to their best advantage in over- Government Agencies seeing management of the environmental and social impacts of mining sector development. Aimag and soum governments. The most urgent needs are to strengthen the capacities of aimag Ministry of Roads, Transportation, Construc- and soum governments in order to plan for and tion and Urban Development. The actions that manage mining-based land development in SGR. MRTCUD will need to take in order to imple- This can be accomplished in three steps: (a) needs ment the REA are covered in section 5.4. The assessment and action planning, (b) action plan REA process did not include an assessment of the implementation, and (c) financing for initial ministry's capacity to undertake these actions, and activities and ongoing operations. Two options ex- it may be that no strengthening is necessary. How- ist to begin the process: the needs assessment and ever, it would be helpful to have an individual or planning could be undertaken by an interagency a unit assigned the responsibility of coordinating task force led by MRTCUD, or these functions REA-recommended functions for SGR. could be the first activities of a new agency, the proposed development coordinating body for State Specialized Inspection Agency. Col- SGR. The choice depends in part on how quickly laboration would help to improve SSIA-MNET the coordinating agency can be established and coordination. It would be wise for SSIA to assign made operational. an individual or a unit to monitor workloads in SGR as mining development proceeds, in order to Ministry of Nature, Environment and Tourism. provide early warning of needs for additional staff, The implementation activities logically relegated training, equipment, or other resources. 71 Mongolia ­ Southern Gobi Regional Environmental Assessment Creating New SGR Institutions collaboration with Ministry of Agriculture and MTRCUD. Regional development coordinating body. Determine hauling schedules and speed limits Independently, the REA and the SMIS have to minimize disturbance to wildlife in critical recommended the establishment of a new coordi- areas--MNET in collaboration with Mongo- nating body for sustainable development in SGR. lian Academy of Sciences, Wildlife Conserva- This body would focus primarily on timely and tion Society, Wildlife Science and Conserva- well-planned provision of the infrastructure neces- tion Center, and MTRCUD. sary to support mining development and to meet related environmental protection and resource management priorities. This will not happen Improving Mine Permit and EIA without a champion in the central government. Procedures The REA recommends that MRTCUD take the lead, in close collaboration with MNET and the Local and regional government participation in Ministry of Mines and Energy. mine permit issuance. Issuance of mining permits needs to be more closely linked to decisionmaking Groundwater management information cen- on land use and infrastructure decisionmaking, ter. The REA and the Groundwater Assessment given the demands for housing, municipal services, Study for the South Gobi Region (Acacia Water, and infrastructure that the new mines will impose. 2009) agree on the need for an agency to act as a The process should also allow for deliberation at the focal point for information and initiation of new proposed development coordination agency that studies essential for a more complete understand- the REA and SMIS have recommended. The 30- ing of the potential for SGR groundwater, and to day period allowed for permit application review by develop guidelines for its sustainable allocation the aimag governor needs to be extended to 60 or and use. This would help to ensure that ground- even 90 days, to allow adequate consultation with water is presented as a single resource and that soum and aimag citizen representative's khurals and the full range of prospective uses is considered in soum governors and, if desired, public meetings or allocation decisions. The logical institutional home hearings. Ministry of Minerals and Energy should for this agency is under the oversight of the Water take the lead in amending the mining permit ap- Authority, and MNET should therefore take the plication, review, and approval procedure. lead in setting it up. Decentralization and wider participation in EIA review. Since an applicant for a mine license must Developing Standards and submit the EIA with the application (The Asia Foun- Guidelines dation, 2007), review of the EIA is an appropriate way for the aimag governor to become involved in The REA has identified needs for standards and decisionmaking on mineral resource development. guidelines in several areas. The main ones and the Currently, the local administration is not involved institutions that could logically undertake their in decisions on EIA approval, and the review process development are listed below. is seen as a centralized function of MNET. The MNET needs to modify the procedures to provide Designs and standards for effective road for parallel reviews by the affected aimag and soum and railroad crossings for wildlife, based on governments (and/or the proposed regional devel- international best practice--MNET in col- opment coordinating body) and to incorporate a laboration with Mongolia Institute of Sciences, requirement that MNET approval not be issued Wildlife Conservation Society, Wildlife Science until the relevant aimag and soum governors have and Conservation Center, and MTRCUD. provided their views on the proposed project and Designs and standards for effective road and their recommendations for EIA approval, request for railroad crossings for livestock--MNET in specified revision by applicant, or rejection. 72 References Acacia Water. 2009. Groundwater Assessment in National Conservation Park, Mongolia." the Gobi Region. Background document for Rangelands 22(4): 18­24. the REA. BirdLife Asia. 2008. 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