58366 Safeguarding Important Areas of Natural Habitat in Mongolia alongside Economic Development January 2009 © January 2009 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, NW Washington, DC 20433 USA January 2009 All rights reserved. This study was prepared by the Rural Development, Natural Resources and Environment Sector Unit of the East Asia and Pacific Region (EASRE) in collaboration with BirdLife Asia (Tokyo) and the Wildlife Science and Conservation Center (Ulaanbaatar), and was funded by Japanese Consultant Trust Funds. The printing and launch of this publication were supported financially by the World Bank's East Asia and Pacific Safeguards Secretariat, and the Mongolia Country Management Unit. The World Bank's Environment and Social 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 and social development challenges through projects, programs, policy dialogue, non-lending services, and partnerships. The East Asia and Pacific Region Sustainable Development Discussion Paper series provides a forum for discussion on good practices and policy issues within the development community and with client countries. This publication is available online at www.worldbank.org/ eapenvironment and www.worldbank.org.mn where the GIS layers are also available. Suggested citation: BirdLife Asia. 2009. Safeguarding Important Areas of Natural Habitat alongside Economic Development. Mongolia Discussion Papers. East Asia and Pacific Region Sustainable Development Department, World Bank, Washington, DC. Cover image: Ariin Lake in Omnodelger soum, Khentii aimag. Photographer: Batbayar Nyambayar. Cover design by James Cantrell Contact information for study team: BirdLife Asia, TM Suidobashi Building, 4F, Misaki-cho 2-14-6, Chiyoda-ku, Tokyo 106-0061, Japan Tel: +81 3 52130461, Fax: +81 3 52130422 E-mail: info@birdlife-asia.org Website: www.birdlife-asia.org 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. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone +1 978-750-8400, fax +1 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax +1 202-522-2422, e-mail pubrights@worldbank.org Table of Contents Foreword iv Glossary of terms vi Abbreviations and acronyms used vii Acknowledgements ix Executive summary xi 1. Introduction 1 2. Background to the study 3 2.1 Important biodiversity under threat 3 2.2 Site safeguard position of the World Bank 5 3. Objectives of the study 7 4. Identification of important areas of natural habitat in Mongolia 9 4.1 Sources of information 10 4.2 Nationally protected areas in Mongolia 12 4.3 Locally protected sites in Mongolia 14 4.4 Internationally protected areas in Mongolia 15 4.5 Natural sacred sites in Mongolia 16 4.6 Important Bird Areas in Mongolia 17 4.7 Consolidated set of critical natural habitats 20 5. Overview of development planning in Mongolia 23 5.1 Sources of information 23 5.2 Mining development 24 5.3 Infrastructure development 30 5.4 Tourism development 35 6. Overview of regulatory and institutional frameworks 39 6.1 Regulatory and institutional framework for environmental protection 39 6.2 Regulatory and institutional framework for mining 40 6.3 Regulatory and institutional framework for tourism 42 6.4 Safeguard policies 44 i 7. Environmental impact of development plans 47 7.1 Analysis of overlap between exploration licences and critical natural habitat 47 7.2 Implications of overlap between exploration licences and critical natural habitat 49 7.3 Analysis of overlap between mining licences and critical natural habitat 51 7.4 Implications of overlap between mining licences and critical natural habitat 54 7.5 Analysis of overlap between mining-associated infrastructure and critical natural habitats 57 7.6 Implications of overlap between mining-associated infrastructure and critical natural habitats 59 7.7 Individual critical natural habitats where impact from exploration and mining is expected to be significant 60 7.8 Analysis of overlap between tourism development plans and critical natural habitats 65 8. Recommendations 75 8.1 Recommendations for site safeguard with regard to mining and infrastructure 75 8.2 Recommendations for site safeguard with regard to tourism 78 9. Best practice in site safeguard and mitigation 81 9.1 Examples of best practice with regard to mining and infrastructure 81 9.2 Examples of best practice with regard to tourism 98 References 104 Annexes 109 Annex 1. Nationally protected areas in Mongolia 109 Annex 2. Locally protected areas in Mongolia 112 Annex 3. Internationally protected areas in Mongolia 113 Annex 4. Natural sacred sites in Mongolia 115 Annex 5. Important Bird Areas in Mongolia 117 Annex 6. Regulatory framework for environmental protection 120 Annex 7. Regulatory framework for mining 127 Annex 8. Safeguard policies of international development banks 133 Annex 9. Overlap between nationally protected areas and exploration licences, mining licences and areas at high risk from mining-associated infrastructure 136 Annex 10. Overlap between IBAs and exploration licences, mining licences and areas at high risk from mining-associated infrastructure 139 Annex 11. Tourist camps located in or adjacent to State SPAs 142 Annex 12. Tourist camps located in or adjacent to Local SPAs 145 Annex 13. Tourist camps located in or adjacent to IBAs 146 ii Maps Map 1. State Special Protected Areas in Mongolia, as of June 2008 147 Map 2. Local Special Protected Areas in Mongolia, as of May 2008 148 Map 3. Internationally protected areas in Mongolia 149 Map 4. Natural sacred sites in Mongolia 150 Map 5. Important Bird Areas in Mongolia 151 Map 6. Consolidated set of critical natural habitats in Mongolia 152 Map 7. Exploration licences in Mongolia, as of May 2008 153 Map 8. Location of tourist camps in Mongolia 154 Map 9. Overlap between critical natural habitats and exploration licences 155 Map 10. Overlap between critical natural habitats and mining licences 156 Map 11. Overlap between critical natural habitats and areas within 20 km of mining licences 157 Map 12. Overlap between critical natural habitats and tourist camps 158 Map 13. Overlap between critical natural habitats and exploration and mining licences in the north-east of Dornod aimag 159 Map 14. Overlap between State SPAs, IBAs and exploration and mining licences in Omnogobi aimag 160 Map 15. Overlap between Ikh Gazriin Chuluu Nature Reserve and exploration and mining licences 161 Map 16. Overlap between Nagalkhan Nature Reserve and exploration and mining licences 162 Map 17. Overlap between Suikhent Uul Monument and exploration and mining licences 163 Map 18. Overlap between Tavan Tolgoi Local SPA and exploration and mining licences 164 Map 19. Overlap between Dashinchilen Bayan Lake IBA and exploration and mining licences 165 Map 20. Overlap between Tashgain Tavan Lakes IBA and exploration and mining licences 166 Map 21. Overlap between Tsengel Khairkhan Mountain IBA and exploration and mining licences 167 Map 22. Overlap between Shaazan Lake IBA and exploration and mining licences 168 Map 23. Overlap between Galba Gobi IBA and exploration and mining licences 169 iii Foreword F rom the boreal forests of the north advantage of opportunities to generate new funding to the deserts of the south, from the streams for the conservation of these areas. high peaks of the Altai range to the unending steppe, from ephemeral oases The World Bank has taken an advanced position to one of the largest bodies of freshwater in the in safeguarding important areas of natural habitat world, Mongolia's natural habitats form a major alongside its development work, which is set out component of the country's national wealth. These in its Operational Policy on Natural Habitats habitats support the nomadic pastoral lifestyle (OP 4.04) of June 2001. In order to strengthen of Mongolia's rural population, underpin the environmental safeguards in Mongolia, the Bank development of nature-based tourism, and provide commissioned a study on Safeguarding Important freshwater, fuel and other essential ecosystem Areas of Natural Habitat in Mongolia alongside goods and services. At the same time, Mongolia's Economic Development, funded by Japanese natural habitats still support healthy populations of Consultant Trust Funds. This study was prepared regionally and globally threatened wildlife species, by the Rural Development, Natural Resources many of which have declined or disappeared in and Environment Unit of the East Asia and other countries, following the pattern of habitat Pacific Region (EASRE), in collaboration with degradation, fragmentation and conversion that has BirdLife Asia, Tokyo, and the Wildlife Science and been witnessed elsewhere. Conservation Center, Ulaanbaatar. Mongolia has entered a period of rapid economic For the first time, this study pulls together data growth, which is being accompanied by rapid on `critical natural habitats' (as defined in our development in sectors such as mining, energy, policy) at a national scale, and overlays them with agriculture and tourism. Without effective planning development plans in three key economic sectors and mitigation measures, such developments (mining, infrastructure and tourism), in order threaten the very natural habitats that underpin the to provide a strategic overview of the potential Mongolian society and economy. A high priority impact of these developments on important areas is to safeguard important areas of natural habitat of natural habitat in Mongolia. It is my sincere (both protected and unprotected) from the negative hope that the detailed analysis and thoughtful impacts of economic development, while taking recommendations in this report will help to guide iv sustainable development planning and policy that in championing the conservation of natural habitats balances demands for growth with the need to in Mongolia and Asia. preserve the country's enviable natural wealth. Arshad Sayed I would like to congratulate the study team for Mongolia Country Manager their efforts, and acknowledge the commitment, The World Bank professionalism and persistence of BirdLife Asia Ulaanbaatar and the Wildlife Science and Conservation Center Mongolia v Glossary of terms A cid Rock Drainage (or Acid Mine Drainage): Important Bird Area (IBA): sites of international a major environmental risk associated importance for bird conservation at the global, with hard rock mining, where the regional or national level, based upon standard, exposure of sulphide minerals to water internationally recognised criteria. and air produces an acid solution that can affect water quality for wildlife and humans. Local Special Protected Area (Local SPA): locally protected area. Local SPAs can be designated at the aimag: the largest sub-national administrative unit, aimag (or capital city) and soum (or district) levels. equivalent to a province. There are 21 aimags in Mongolia plus the capital city, Ulaanbaatar. Millennium Road: a proposed east-west road corridor across the full width of Mongolia. bag: administrative unit below the level of soum, equivalent to a sub-district. soum: administrative unit below the level of aimag, equivalent to a district. The capital city is subdivided Citizens' Representative Khurals: local legislatures at into districts, not soums. aimag and soum level. State Special Protected Area (State SPA): nationally ger camp: tourist camp where visitors are protected area. State SPAs comprise Strictly accommodated in the traditional dwellings of Protected Areas, National Parks, Nature Reserves nomadic herders. and Monuments. Ikh Khural: the Mongolian Parliament. vi Abbreviations and acronyms used ADB ­ Asian Development Bank MNET ­ Ministry of Nature, Environment, ALAGC ­ Administration of Land Affairs, and Tourism Geodesy and Cartography MoRTT ­ Ministry of Road, Transport and ARC ­ Alliance of Religions and Tourism Conservation MRPAM ­ Mineral Resources and Petroleum BBOP ­ Business and Biodiversity Offsets Authority of Mongolia Program NEMO ­ Netherlands-Mongolia Trust Fund CBD ­ Convention on Biological Diversity for Environmental Reform EIA ­ Environmental Impact Assessment NMFS ­ National Marine Fisheries Service EITI ­ Extractive Industries Transparency NPI ­ Net Positive Impact Initiative OP 4.04 ­ World Bank Operational Policy on EPA ­ Environmental Protection Agency Natural Habitats GMI ­ Global Mining Initiative OP 4.11 ­ World Bank Operational Policy on GMIA ­ Geological and Mining Inspection Physical Cultural Resources Agency OSM ­ Office of Surface Mining IBA ­ Important Bird Area Reclamation and Enforcement IBAMA ­ Brazilian Institute for Environment RAPPAM ­ Rapid Assessment and Prioritisation and Renewable Resources of Protected Area Management ICMM ­ International Council on Mining and REA ­ Regional Environmental Assessment Metals SCA ­ Special Conservation Area IFC ­ International Finance Corporation SCI ­ Site of Community Importance INAP ­ International Network for Acid SDC ­ Swiss Agency for Development and Prevention Cooperation ITM ­ International Travel Mart SEA ­ Strategic Environmental Assessment IUCN ­ International Union for SMCRA ­ Surface Mining Control and Conservation of Nature Reclamation Act JICA ­ Japan International Cooperation SPA ­ Special Protected Area Agency STDC ­ Sustainable Tourism Development MNE ­ Ministry of Nature and Environment Center vii TNC ­ The Nature Conservancy USFWS ­ United States Fish and Wildlife UNESCO ­ United Nations Educational, Service Scientific and Cultural WSCC ­ Wildlife Science and Conservation Organisation Center UNIDO ­ United Nations Industrial WWF ­ World Wildlife Fund / World Wide Development Organisation Fund for Nature viii Acknowledgements T his report is an output of the World and Jonathan Stacey of the Rio Tinto-BirdLife Bank study Safeguarding Important Areas International Programme. of Natural Habitat in Mongolia alongside Economic Development, undertaken The study would not have been possible with funding from the World Bank's without the support of various organisations Japanese Consultant Trust Funds. The printing that generously provided data on important and launch of this publication were supported areas of natural habitat and developments in financially by the World Bank's East Asia and the mining, infrastructure and tourism sectors. Pacific Safeguards Secretariat, and the Mongolia Data on nationally protected areas were Country Management Unit. The study was prepared provided by WWF Mongolia and the Ministry by the Rural Development, Natural Resources and of Nature, Environment and Tourism. Data on Environment Unit of the East Asia and Pacific locally protected areas were collated by WWF Region (EASRE), where special thanks are due to Mongolia, The Nature Conservancy (TNC) and Tony Whitten, Senior Biodiversity Specialist, for the Administration of Land Affairs, Geodesy and his encouragement and guidance to the study team. Cartography (ALAGC). Data on Ramsar Sites Programmatic support to the study was provided were provided by the Institute of Biology of the by the World Bank Mongolia Office, where thanks Mongolian Academy of Sciences. Data on natural are due in particular to Arshad Sayed, Country sacred sites were compiled by the Alliance of Manager, Byambabaatar Ichinkhorloo and Badarch Religions and Conservation (ARC), and WWF Erdene-Ochir. Mongolia. Data on Important Bird Areas were collected by BirdLife Asia, WSCC, and the The study was conducted by a core team led Institute of Biology of the Mongolian Academy of by Noritaka Ichida (BirdLife Asia, Tokyo) and Sciences. Data on exploration and mining licences comprising Keiko Suzue (BirdLife Asia, Tokyo), were provided by the Department of Geological Richard Grimmett (previously with BirdLife Asia, and Mining Cadastre of the Mineral Resources Tokyo, now BirdLife International, Cambridge), and Petroleum Authority of Mongolia (MRPAM). Simba Chan (BirdLife Asia, Tokyo) and Batbayar Data on tourism were collected the Department Nyambayar (Wildlife Science and Conservation of Social Geography of the National University of Center (WSCC), Ulaanbaatar). Additional technical Mongolia, the Mongolian Tourism Association and inputs were made by Andrew "Jack" Tordoff WSCC; particular thanks are due to the 85 tourist ix camp operators who took the trouble to complete Tsolmon (National University of Mongolia); Jan the questionnaire commissioned by the study. Wigsten (Nomadic Journeys); Ms. A. Ariunaa (Nomads Tours & Expeditions); Tracey Naughton The study benefited greatly from information and (Pact Mongolia); Andrew Cuthbertson (Rio Tinto insights gained through consultations with experts Mongolia); Emma Pinnell (Rio Tinto Mongolia); from government, academia, private sector and Sugar Gonchigjantsan (Rio Tinto Mongolia); the donor and NGO communities, including: Badamsambuu Batdemberel (State Specialized Jadambaa Davaabaatar (ALAGC); Myagmarsuren Inspection Agency); Rebecca Darling (The Buyandelger (ALAGC); Guido Verboom (ARC); Asia Foundation); Shelagh Rosenthal (The Asia Shane Rosenthal (Asian Development Bank); Robin Foundation); Susan Antenen (TNC); Matt Durnin Grayson (EcoMinex); Chimed-Erdene Baatar (TNC); Amanda Fine (Wildlife Conservation (EcoMinex); Hans-Rudolf Hoffmann (GTZ); Mrs. Society Mongolia Country Program); Lkhamjav P. Suvd (GTZ); Dr. N. Tseveenmyadag (Institute Ochirkhuyag (Wildlife Conservation Society of Biology, Mongolian Academy of Sciences); Mongolia Country Program); Graeme Hancock Keith Marshall (Ivanhoe Mines Mongolia Inc.); (World Bank Mongolia Office); Arshad Sayed Layton Croft (Ivanhoe Mines Mongolia Inc.); Glen (World Bank Mongolia Office); Byambabaatar Ainsworth (Ivanhoe Mines Mongolia Inc.); Miho Ichinkhorloo (World Bank Mongolia Office); Jim Sasaki (Japan International Cooperation Agency Reichert (World Bank Mongolia Office); Bazarsad Mongolia Office); Davaadorjiin Delgertsogt (Deputy Chimed-Ochir (WWF Mongolia); Dorjgurkhem Minister, MNET); Banzragch Tsesed (Environment Batbold (WWF Mongolia); Mr. D. Sanjmyatav and Natural Resources Department, MNET); A. (WWF Mongolia); Jonathan Baillie (Zoological Namkhai (Special Protected Areas Administration, Society of London); Dr. Sheldon Severinghaus MNET); Shingo Sato (River Basin Management (freelance environmentalist and political scientist); Model Project, MNET); Dr. G. Yondongombo and Ariun Sanjaajamts (freelance consultant (Director of Tourism Department, MNET); on mining). Thanks are due to each of these Battulga Erkhembayar (Tourism Department, individuals for contributing their time, knowledge MNET); Lkhagva Shagdar (Mongol Kaze Travel and experience. Company Ltd.); Damdinsuren Batnasan (Mongolian Tourism Association); Sodnomvaanchig Ganbaatar Finally, great thanks are due to the peer reviewers of (MRPAM); Bazarsad Altan-Ochir (MRPAM); Ms. earlier drafts of this report: Carter Brandon (World D. Narantuya (National Geo-Informatics Centre for Bank); Christopher Finch (World Bank); Graeme Natural Resource Management); Ms. M. Bayasgalan Hancock (World Bank); Agi Kiss (World Bank); (National Geo-Informatics Centre for Natural Patti Moore (IUCN); Judith Schleicher (World Resource Management); Prof. G. Baatartsooj Bank); L. Panneer Selvam (World Bank); and Jan (National University of Mongolia); Prof. Renchin Wigsten (Nomadic Journeys). x Executive summary Background to the study elsewhere of good practice in avoiding, mitigating and compensating for impacts. In response to M ongolia retains vast areas of relatively this need, the World Bank, through the Japanese unspoiled natural habitats, including Consultant Trust Funds, contracted BirdLife Asia boreal forest (taiga), steppe grassland, to undertake a study on the potential impacts of semi-desert and desert, as well as mining, infrastructure and tourism development on many freshwater and saline wetlands of international important areas of natural habitat in Mongolia. importance. These natural habitats support globally important populations of a large number of wildlife Critical natural habitats in species, many of which have undergone massive Mongolia declines elsewhere in their ranges. In their current undeveloped or lightly developed state, these The World Bank has taken an advanced position habitats underpin the rural economy throughout on safeguarding important areas of natural habitat Mongolia, through, for instance, supporting alongside its development work, as set out in livestock herding and providing a supplementary its Operational Policy on Natural Habitats (OP food source during times of economic hardship. 4.04). As part of this policy, the World Bank is committed not to support projects that, in its As market reforms to the economy continue, and opinion, involve the significant conversion or the country experiences rapid economic growth, degradation of critical natural habitats. For Mongolia's natural habitats look set to enter a the purposes of this study, critical natural habitats period of unprecedented pressure. Alongside the in Mongolia were taken to include the following forestry and agriculture (mainly livestock herding) categories: sectors, the rapidly expanding mining, infrastructure and tourism sectors all pose risks to natural habitats 1. Formal protected areas, comprising: and the wildlife populations they support. a. Nationally protected areas (i.e. State Special Protected Areas - State SPAs) Given the development pressures they face, b. Locally protected areas (i.e. Local there is a need to assess the threats to important Special Protected Areas - Local SPAs) areas of natural habitat in Mongolia, strengthen c. Internationally protected areas (i.e. safeguard measures, and provide examples from Ramsar Sites, World Heritage Sites and xi Biosphere Reserve core areas) facilitate their extraction, processing and export. 2. Community protected areas (i.e natural Tourism in Mongolia is largely based on the sacred sites) equestrian-pastoralist lifestyle of its rural people, 3. Supporting sites that maintain conditions combined with vast, open landscapes, largely vital for the viability of protected areas devoid of globalised developments. Protected 4. Supplementary sites, critical for rare, areas are popular tourist destinations, with tourists vulnerable, migratory or endangered species typically accommodated in tented 'ger' camps run (i.e. Important Bird Areas - IBAs) by tour operators, based on concessions licensed by the government. Economic reform since the One quarter of Mongolia's territory falls early 1990s has led to the privatisation of tourism into one or more category of critical natural operations and the rapid development of the sector. habitat. Ninety-five percent of the critical natural This growth is putting an increasing pressure on habitat identified during the study is designated certain protected areas, as a result of increased as protected areas, although many of these sites, visitor numbers and infrastructure. particularly Local SPAs, have no management structures in place at present. Regulatory and institutional Mining, infrastructure and frameworks for environmental tourism development in protection Mongolia Since 1990, Mongolia has introduced several key pieces of legislation related to environmental World class mineral resources, coupled with a protection. There nevertheless remain a number strategic location between China and Russia, are of important gaps and limitations, and several driving rapid growth in Mongolia's mining sector. observers note that the existing regulatory Mining currently accounts for around a third of framework is weak in the area of public Mongolia's GDP and around half of its industrial participation. The 1994 Law on Special Protected output and export earnings. As of May 2008, over Areas explicitly prohibits exploration and 3,500 exploration licences and over 1,000 mining mining within State SPAs, and restricts tourism licences had been issued, covering 40 million and to certain zones. The 2007 Law on Forests 400,000 ha respectively. Omnogobi and Dornogobi appears to extend the prohibition on exploration aimags combined account for half of the total and mining to all "protected forests": a very broad mining area in the country. Gold, construction category. materials, coal and fluorspar are the minerals most widely targeted. Regulatory and institutional Mongolia will witness significant infrastructure frameworks for mining development over the next decade, driven by rapid urbanisation, expansion of international The 2006 Minerals Law sets out the process trade between Russia and China, and growth in for licensing large-scale exploration and mining the mining sector. Mining is likely to be the major activities. The Minerals Law prohibits economic and political driver for infrastructure exploration and mining within "Special Needs development in remote areas, where some of the Land", which includes State and Local SPAs. largest mineral deposits are located. Development However, the law does not provide for all the of these resources will require construction of procedural steps necessary to ensure effective water, power and construction infrastructure to implementation of these safeguards, and introduces xii a number of constraints on effective public mining licences and critical natural habitats in consultation during the licensing process. In order Mongolia is accounted for by Tavan Tolgoi Local to regulate the massive and informal artisanal SPA in Omnogobi aimag, which overlaps with six mining sector in Mongolia, the government recently coal mining licences. It appears that this site and passed a Temporary Regulation on Artisanal and some of the other overlapping Local SPAs were Small-scale Mining Operations, which explicitly knowingly sited on top of mining areas by local prohibits artisanal and small-scale mining within authorities. protected areas. Two minerals (coal and gold) account for more Impacts of mineral exploration than 90 percent of the total overlap between mining licences and critical natural habitats. It is notable on critical natural habitats that copper and wolfram (tungsten), which make up a significant proportion of the current area under At present, nearly 4 million ha of critical mining licences, do not account for any overlaps natural habitat in Mongolia is included within with critical natural habitats. exploration licences. The degree of overlap with Local SPAs and IBAs is significantly greater Recent studies have documented a range of direct than that with State SPAs and internationally impacts of mining operations on natural habitats. protected areas. These differences can be Direct impacts can include water pollution (resulting explained by the fact that many Local SPAs have from, for example, disposal of tailings in rivers), been designated relatively recently, and may, air pollution (in the form of dust, emissions from therefore, post-date the exploration licences smelters, etc.) and habitat loss (resulting from, for they overlap with, and the fact that IBAs are not example, exploration drilling, overburden stripping safeguarded from exploration under Mongolian or tailings impoundment). Changes to ground and law, except where they are otherwise designated surface water (resulting from water off-take for as protected areas. mining, mineral concentration or coal washing) may represent the most severe direct impacts, Overlaps with exploration licences have the particularly in arid and semi-arid environments. The following implications for critical natural habitats: implications of any given overlap between a mining licence and a critical natural habitat are determined · Direct impacts on biodiversity from by the following factors: exploration activities; · Indirect impacts on biodiversity arising · The environmental performance of the from exploration activities; licence-holding company; · Barriers to protected area establishment; · The nature of the target mineral; · Pressure for degazettal. · The sensitivity of the impacted ecosystem. Impacts of mining operations on It is important to note that the direct impacts critical natural habitats of mining, while locally significant, are generally restricted to small areas (the average mining licence Currently, less than half of one percent of the covers 374 ha), compared with those of sectors such total area of critical natural habitat in Mongolia as livestock herding. In the Mongolian context, the is included within mining licences, almost all direct impacts of mining on biodiversity are likely of which is made up of overlaps with Local SPAs. to be less significant than indirect ones, such as the Indeed, two-thirds of the total overlap between development of transport infrastructure. xiii Impacts of infrastructure on Khovsgol Lake (11); and Khangain Nuruu (nine). A comparison between camp locations and IBAs critical natural habitats revealed that nearly half of the camps that could be mapped are located in or adjacent to IBAs. Due to the projected rapid growth of the mining sector, the need for infrastructure to service new As part of the study, the Department of Social mines and the tendency for mines to be located Geography of the National University of Mongolia, in areas with a low baseline human footprint, the the Mongolian Tourism Association, and the category of infrastructure development with Wildlife Science and Conservation Center conducted the greatest potential for negative impacts on a questionnaire survey to assess the impact of tourist critical natural habitats is considered to be camps on the environment. Data were collected mining-associated infrastructure. from participants at the International Travel Mart, held in Ulaanbaatar in March 2008, with 85 camp Other forms of infrastructure development with operators responding. Garbage disposal, land potential impacts on critical natural habitats degradation, unregulated road development and planned for Mongolia over the next decade include water pollution were the environmental impacts of upgrades and enlargements of the national road tourist camps most frequently identified by camp and rail network, and new power generation and operators. Strengthened control and standardisation transmission infrastructure. Within the timeframe of tourist camps and strengthened environmental of the study, however, it was not possible to protection were the most commonly recommended evaluate the overlap between these developments government actions in response (18 respondents and critical natural habitats with any degree of each), followed by financial support to tourist confidence. For this reason, the analysis focused on camps to introduce environmentally friendly mining-associated infrastructure. technologies (16 respondents). Although only around 160,000 ha of critical Tourism development has the potential to make natural habitat are located within mining licences, a significant contributions towards the conservation further 6.5 million ha lies within 20 km of one or of critical natural habitats by contributing directly more mining licence. These areas are considered to financing the management of these sites or to be at high risk from being impacted by mining- by benefiting local economies and, thereby, associated infrastructure. Risk of impact is not, increasing political and community support for however, the same thing as actual impact, because their conservation. Tourism develop also has the risks can be avoided (through careful siting/ potential to impact negatively on critical natural routing of infrastructure) or minimised (through habitats, however. This study highlights seven key the implementation of appropriate mitigation tourism-related impacts, including disturbance measures). to wildlife, degradation of grassland steppe and deserts, and pollution of lakes and rivers. Impacts of tourism on critical At present, the threat posed by tourism natural habitats development appears to be more localised than that posed by mining and infrastructure development, Seventy percent of the tourist camp locations although severe at particular sites. Many of the mapped during the study are located in or are issues arising relate to protected areas management, adjacent to State or Local SPAs. The protected particularly the lack of capacity and resources, the areas with the greatest number of tourist camps poor application of management zoning, and lack are: Gorkhi-Terelj (with 38); Bogd Khan Uul (13); of awareness and visitor management programmes. xiv Recommendations for site 5. The environmental performance of mining operations should be improved. safeguard with regard to mining In particular, the government should and infrastructure support and facilitate the introduction of Best Available Techniques into placer Based on the analysis undertaken, the study formu- gold mining, and adopt a law on artisanal lates a series of key recommendations for safeguard- and small-scale mining that restricts these ing critical natural habitats from the negative im- activities to specific areas. pacts of mining and associated infrastructure. These recommendations can be summarised as follows: 6. The government of Mongolia should introduce regulations that require mining 1. Environmental safeguards in the mine companies to compensate for any licensing process should be strengthened. impacts on biodiversity that remain after In particular, the 1998 Law on EIA and mitigation has been pursued, by investing in the 2006 Minerals Law should be revised biodiversity offsets. to make public consultation an explicit requirement of the EIA and mine licensing Recommendations for site processes, respectively. safeguard with regard to tourism 2. Existing overlaps between exploration and development mining licences and critical natural habitats should be resolved, and MRPAM should Similarly, the study formulates a series of key not issue any new mining licences within recommendations for safeguarding critical natural State or Local SPAs. habitats from the negative impacts of tourism development. These recommendations can be 3. The safeguard of critical natural habitats summarised as follows: outside of protected areas should be strengthened. In particular, the 2002 Law 1. In those protected areas that already allow on Land should be revised to explicitly tourism, sustainable tourism plans should recognise sites designated under multilateral be prepared by the Ministry of Nature, environmental agreements and natural Environment and Tourism based on sacred sites as Special Needs Land, and IUCN's Guidelines for Tourism in Parks and the World Bank should ensure that the Protected Areas of East Asia. These plans list of IBAs in Mongolia is used in project should be prepared as a priority where screening. tourism impacts are of immediate concern, followed by those sites where tourism 4. On-the-ground protection of critical might be developed in the near future. natural habitats should be improved by improving management effectiveness of 2. The Ministry of Nature, Environment protected areas, strengthening enforcement and Tourism should establish a clear plan, of controls on artisanal mining on based on local and expert consultation, Special Needs Land, and supporting the identifying the next set of protected areas State Professional Inspection Agency to where tourism might be developed over overcome barriers to effective on-the- time. Tourism development should not be ground monitoring and enforcement of allowed to proceed at any new protected environmental protection regulations. areas until appropriate sites have been xv identified, EIAs have been carried out and tourism operations within protected areas consulted on, and sustainable tourism plans or their buffer zones. are in place. 4. A national sustainable tourism strategy 3. Innovative financing and governance should be developed by the government models should be piloted at selected of Mongolia, in consultation with relevant protected areas. This may involve stakeholders, and a cross-sectoral fund including private sector representation should be established by one or more on management boards and exploring interested donors to support collaborative decentralised revenue collection. This initiatives that address objectives set out in should be complemented by a feasibility the strategy. study for capturing revenue streams from xvi 1. Introduction A s market reforms to the Mongolian on the other. It determined the scale of overlap economy continue and the country at the national level, provided a strategic enjoys rapid economic growth, the overview of potential impacts, and identified environment has entered a period of particular sites where there is cause for unprecedented pressure. Mining, infrastructure concern. Recommendations were made for how development and tourism development, in environmental issues arising might be addressed, particular, are undergoing rapid expansion, and including examples of guidance and best practice all pose risks to Mongolia's globally important from outside of Mongolia. biodiversity. In addition to this report, BirdLife Asia and WSCC In order to strengthen its safeguard review process provided the World Bank with the original GIS in Mongolia, specifically implementation of its data compiled during the study. The GIS work Operational Policy on Natural Habitats (OP 4.04), benefited significantly from collaboration with the World Bank contracted BirdLife Asia to identify WWF Mongolia, The Nature Conservancy (TNC) important areas of natural habitat in the country, and the Administration of Land Affairs, Geodesy and assess the extent to which these areas overlap and Cartography (ALAGC). Furthermore, examples with development plans. BirdLife Asia undertook of best practice were shared through meetings with this study in close collaboration with the Wildlife government, industry and NGO representatives, Science and Conservation Center (WSCC) of including a presentation at the Responsible Mining Mongolia. and Resource Use Discussion Series. The study looked at the extent of overlap It is hoped that this study will help strengthen the between sites of conservation importance safeguard of important areas of natural habitat in on the one hand, and mining licences, major Mongolia, as well as inform sector work, project infrastructure plans, and tourist camp locations financing, and policy dialogue. 1 2 2. Background to the study 2.1 Important biodiversity under is resulting in overgrazing and degradation and desertification of pastures. threat Other pressures impacting on steppe grassland Mongolia retains vast areas of relatively unspoiled include: steppe fires, usually set in spring and steppe grassland (including forest steppe and early summer, which can be very destructive to mountain steppe) as well as semi-desert and nesting birds; the use of rodenticides to control desert habitat. This comprises part of the vast vole outbreaks; and the sinking of boreholes to Eurasian steppe, which extends in an increasingly supply water to domestic herds, which has led to fragmented form from eastern Europe through adjacent severe land erosion and generally lowered western and central Asia to north-east Asia. water-tables. Furthermore, there are government Mongolia's steppe habitats form the heart of the plans for the development of agriculture, as well as Daurian Steppe, which is recognised by WWF infrastructure, which could have a major impact on as a Global 200 Ecoregion. The Daurian Steppe the threatened steppe species (see below for further forms the best and most intact example of an details). undisturbed steppe ecosystem in the world, and is one of the last areas in the Palaearctic to still The steppe region has many freshwater and saline support stable herds of larger vertebrates (WWF wetlands of international importance, which 2008). support large numbers of breeding and migratory water birds. The water levels of many steppe Large-scale loss of steppe grassland has taken lakes have fallen in recent decades, with some place in neighbouring China and Russia, through wetlands completely disappearing. In some cases, ploughing and conversion to agricultural land, this is due to the damming or diversion of rivers and, as a consequence, Mongolia supports globally and streams, to provide water for irrigation and important populations of many steppe-dependent livestock. In other locations, the cause is believed IUCN Red List species that are close to extinction to be climatic, with some regions experiencing elsewhere in the region. There is, however, growing drought, milder winters with less snow fall, and pressure on steppe grassland from an increasing hotter summers. In addition, increasing livestock human population, which has tripled since 1950, numbers are adversely impacting reed and wet and an associated increase in livestock, which grasslands at many steppe wetlands, while steppe 3 fires can have a devastating impact on wetland Mining has the potential to affect biodiversity both vegetation. directly and indirectly. Direct impacts can include water pollution (e.g. tailings disposal in rivers), air Parts of northern Mongolia support extensive pollution and habitat loss (e.g. overburden stripping coniferous boreal forests, particularly in the or tailings impoundment). In Mongolia, changes Khentii mountains, around Khovsgol Lake, on to ground and surface water (resulting from the north and east sides of the Khangai mountains water off-take for mining, mineral concentration and in parts of the Khan Khokhii range. This or coal washing) may represent the most severe comprises the southern edge of the vast belt of direct impacts, particularly in arid and semi-arid boreal forest (also called taiga) that extends from environments. The indirect impacts of mining, such northern Europe across Russia to the Pacific coast. as planned and unplanned urban development and Large tracts of boreal forest remain in reasonable the construction of new transport infrastructure, are condition but forests in some areas have been likely to be more significant than the direct impacts. much reduced and fragmented by logging. Also of note are alpine habitats in the Altai and other high As the wider economy grows, and trade increases mountains in western and central Mongolia, which (especially with Russia, China and Korea), major support communities of high montane species. investments will need to be made in infrastructure, including road and rail networks, hydropower Despite the aforementioned concerns regarding plants and power transmission lines. Planned the state of Mongolia's natural and semi-natural developments include: construction of a new habitats, the pressure on important sites was bridge crossing from China into eastern Mongolia, until recently felt to be relatively low, especially passing through Nomrog Strictly Protected compared with neighbouring China. However, the Area; construction of a thermal power station in environment in Mongolia looks set to enter a period Omnogobi aimag, to serve mining operation there; of unprecedented pressure, as market reforms to and completion of the `Millennium Road' and five the Mongolian economy continue, and the country additional north-south roads across the country. enjoys rapid economic growth (in part fuelled Much of the planned infrastructure development by demand from China). Mining, infrastructure depends on the rapidly expanding mining sector for development and tourism development have been its funding and/or economic justification. highlighted recently as undergoing rapid expansion, and these all pose risks to Mongolia's biodiversity. The tourism sector is also growing strongly, with Furthermore, while Mongolia has made good a strong focus on nature and cultural tourism. progress with the establishment of a formal Of particular concern is the building of tourist protected area system, many of its most important camps at sites that are highly vulnerable to human areas of natural habitat remain unprotected. disturbance. For example, there have recently been a number of `ger' (tented) camps established With vast, largely untapped mineral resources, at wetlands of international importance, which Mongolia's mining sector is currently one of the are causing disturbance to breeding and migrating fastest growing in the world (see Section 5.2). waterbirds. However, the sector currently lacks adequate environmental safeguards (see Sections 6.1 and As a consequence of these trends, measures are 6.2) as a result there are a number of actual and urgently needed to safeguard important areas of potential overlaps between mining and exploration natural habitat (both protected and unprotected) activities and areas of high biodiversity importance. from the negative impacts of development. 4 2.2 Site safeguard position of · The Bank encourages borrowers to incorporate into their development and the World Bank environmental strategies analyses of any major natural habitat issues, including The World Bank has taken an advanced position identification of important natural habitat on safeguarding important areas of natural habitat sites, the ecological functions they perform, alongside its development work. Other development the degree of threat to the sites, priorities banks have taken similar positions with respect to for conservation, and associated recurrent- site safeguard. The World Bank's position is set out funding and capacity-building needs. in its Operational Policy on Natural Habitats (OP 4.04, June 2001), and includes the following: Further details of this policy and those of other lending institutions are provided in Section 6.4 and · The Bank supports the protection, Annex 8. maintenance, and rehabilitation of natural habitats and their functions in its economic In order to strengthen environmental safeguards and sector work, project financing, and in Mongolia, the World Bank recently funded, policy dialogue; with Japanese Consultant Trust Funds, the · The Bank's economic and sector work preparation of an inventory of the most important includes identification of (a) natural habitat areas of natural habitat in the country using birds issues and special needs for natural habitat as indicators of overall biodiversity value. Seventy conservation, including the degree of threat Important Bird Areas or IBAs (globally important to identified natural habitats (particularly sites for the conservation of birds and other critical natural habitats), and (b) measures biodiversity) were identified and documented. for protecting such areas in the context of These IBAs help to identify sites meeting the the country's development strategy; World Bank's criteria for critical natural habitats · The Bank does not support projects that, in that lie outside of existing and proposed protected the Bank's opinion, involve the significant areas. conversion or degradation of critical natural habitats; 5 6 3. Objectives of the study G iven the development pressures 4. To provide a strategic overview of the confronting Mongolia's biodiversity, potential impact of these developments on there is a need to assess the threats important areas of natural habitat; and to important areas of natural habitat, to strengthen safeguard measures, and to provide 5. To share best practice in site safeguard and examples from elsewhere of good practice in mitigation from around the world with avoiding, mitigating and compensating for impacts. government and business leaders in Mongolia. BirdLife Asia was contracted to undertake a study with the following objectives: The outputs of the study were: 1. To strengthen the World Bank's Safeguard 1. GIS layers and mapped information Review process in Mongolia and inform showing the extent to which plans for discussions on important areas of natural mining, infrastructure and tourism overlap habitat in its economic and sector work, project with important areas of natural habitat in financing, and policy dialogue; Mongolia; 2. To ensure information on important areas of 2. Strategic assessment of the impacts of these natural habitat in Mongolia is with business development pressures on important areas of leaders and decision-makers and planners in key natural habitat, with proposals for site safeguard national and local government departments, as and mitigation measures; well as other lending institutions; 3. Examples provided for decision makers and 3. To identify the important areas of natural business leaders of relevant site safeguard and habitat in Mongolia that are most likely mitigation measures from comparable situations to be affected by (a) mining development, elsewhere in the world. (b) infrastructure development and (c) tourism development; 7 8 4. Identification of important areas of natural habitat in Mongolia F or the purposes of this study, BirdLife supplementary lists prepared by the World Bank or interpreted important natural habitats as another authoritative source. Sites on supplementary comprising sites that qualify as critical lists may include: areas recognised by traditional natural habitats, as defined in World local communities; areas with known high Bank OP 4.04 (see Section 6.4). Following OP 4.04, suitability for biodiversity conservation; and sites critical natural habitats are: (i) existing protected that are critical for rare, vulnerable, migratory, or areas and areas officially proposed by governments endangered species. Listings are based on systematic as protected areas, areas initially recognised as evaluations of such factors as species richness; the protected by traditional local communities, and degree of endemism, rarity, and vulnerability of sites that maintain conditions vital for the viability component species; representativeness; and integrity of these protected areas; and (ii) sites identified on of ecosystem processes. Figure 1: Classification of Special Protected Areas Strictly Protected Areas National Parks State SPAs Nature Reserves Special Protected Natural Monuments Areas Monuments (SPAs) Historical and Cultural Monuments C lt l M t Aimag level Local SPAs Local SPAs Soum level Local SPAs Data source: 1994 Law on Special Protected Areas 9 Table 1: Categories of critical natural habitat in Mongolia Category Criteria set out in OP 4.04 Application in Mongolia Formal Existing protected areas and areas There are three categories of formal protected protected officially proposed by governments area in Mongolia: areas as protected areas (e.g. reserves (a) nationally protected areas that meet the criteria of the (b) locally protected areas World Conservation Union [IUCN] (c) internationally protected areas (i.e. classifications) Ramsar Sites, World Heritage Sites and Biosphere Reserve core areas) Community Areas initially recognised as protected A number of natural habitats (mountains, lakes, protected by traditional local communities (e.g. etc.) are recognised as natural sacred sites areas sacred groves) Supporting Sites that maintain conditions vital A number of natural habitats maintain conditions sites for the viability of protected areas vital for protected areas (e.g. forest that protect (as determined by the environmental the catchments of lakes, wildlife corridors, etc.). assessment process) Due to limitations of time and data availability, it was not possible to identify these sites during the study. Supplementary These may include: areas recognised Areas recognised by traditional local communities sites by traditional local communities; are included within the category of natural areas with known high suitability for sacred sites, above. The network of Important biodiversity conservation; and sites Bird Areas in Mongolia represents a set of that are critical for rare, vulnerable, sites with known high suitability for biodiversity migratory, or endangered species conservation that are critical for rare, vulnerable, migratory or endangered species Critical natural habitats in Mongolia fall these categories are not mutually exclusive, as some under four categories: formal protected areas; sites are recognised/designated under more than community protected areas; supporting sites; and one category. supplementary sites (Table 1). During the study, it was possible to identify and map sites under each of these categories, apart from supporting sites. To 4.1 Sources of information date, there has been no nationwide analysis of sites that maintain ecological conditions necessary to Formal protected areas maintain the viability of protected areas. While such an analysis would be possible, to have undertaken Following Article 3 of the 1994 Law on Special it would have been outside the scope of this study, Protected Areas, protected areas in Mongolia are which used existing data sets as inputs. classified into State Special Protected Areas (State SPAs) and Local Special Protected Areas (Local Each category of critical natural habitat is described SPAs). State SPAs are further classified into Strictly in the following sections, and further details are Protected Areas, National Parks, Nature Reserves provided in Annexes 1-5. It should be noted that and Monuments (Figure 1). 10 A GIS data layer on State SPAs was provided by Educational, Scientific and Cultural Organisation WWF Mongolia. Additional information on the (UNESCO) (www.unesco.org). Data on Ramsar official areas and dates of establishment of State Sites were downloaded from the website of the SPAs was collated from various official documents Ramsar Sites Information Service (www.wetlands. obtained from the former Ministry of Nature and org/rsis/). Boundary polygons on Ramsar Sites in Environment (MNE1) and downloaded from its Mongolia were digitised from paper maps, provided website (www.mne.mn). The data collated from by scientists from the Mongolian Academy of these sources were current as of June 2008. Sciences who originally proposed the sites for Ramsar designation. All data on internationally There are some discrepancies between the areas protected areas are current as of June 2008. given in the official documents and the areas calculated from the GIS polygons of State SPA In the case of Ramsar Sites, there are some major boundaries, amounting to less than 3 percent discrepancies between the official areas obtained of the total area of the system. The figures used from the Ramsar Sites Information Service and throughout this report are those calculated from the the areas calculated from the GIS polygons. These GIS polygons. In addition, although some official discrepancies are thought to arise from the fact that documents treat protected areas with several non- the official figures only give the area of water surface contiguous sectors (e.g. Great Gobi "A" and Great at the site but exclude the surrounding habitats. The Gobi "B") as single sites, each sector is treated as discrepancies are, therefore, particularly great in cases a separate protected area for the purposes of this such as Lake Ganga and its surrounding wetlands, report. where the Ramsar Site comprises a number of small lakes within a matrix of terrestrial habitats. Data on Local SPAs were collated by WWF The figures used throughout this report are those Mongolia and TNC, working through ALAGC. calculated from the GIS polygons. At a future point, These data were collated through correspondence there is a need to revise the official figures given on with aimag (or capital city) administrations, then the Ramsar Sites Information Service to reflect the verified and digitised. The data summarised in this full area of each site. report are current as of May 2008. However, it should be noted that Local SPAs continue to be Community protected areas designated by local administrations at aimag and soum level, and that the coverage of Local SPAs is As explained in Table 1, for the purposes of the expected to continue to expand. study, community protected areas were taken to comprise natural sacred sites. The list of natural For reasons of space, a full list of Local SPAs sacred sites in Mongolia was downloaded from the in Mongolia is not presented in this report. A Buddhist Ecology website (www.buddhistecology. comprehensive list, current as of December 2007, org/sacredsitesofmongolia.shtml). This list has recently been published by ALAGC and WWF was compiled by the Alliance of Religions and Mongolia (2008). Conservation (ARC) and WWF Mongolia. Other natural features (lakes, mountains, etc.) of cultural Data on three types of international protected areas and/or religious significance to local communities were collated for the study. Data on World Heritage are mentioned in various references but data on Sites and Biosphere Reserves were downloaded these sites were not included in the study due to from the website of the United Nations limitations of time. 1 In September 2008, MNE was restructured as the Ministry of Nature, Environment, and Tourism (MNET), with the addition of the Tourism Department of the former Ministry of Road, Transport, and Tourism. 11 Supplementary sites International. The workshop built, in turn, on a preliminary list of 40 IBAs in Mongolia presented in For the purposes of the study, supplementary the directory of IBAs in Asia (BirdLife International sites were taken to comprise IBAs (Table 1). It is 2004). Details on each of Mongolia's IBAs are recognised that other sites in Mongolia may meet available on WSCC's website (www.wscc.org.mn/ the criteria for supplementary sites set out in OP iba.html). 4.04. At present, however, systematic inventories of important sites are not available for any taxonomic 4.2 Nationally protected areas in group apart from birds. Data on IBAs, current as Mongolia of June 2008, were taken from the inventory of IBAs in Mongolia compiled by WSCC, the Institute Mongolia has one of the world's oldest traditions of of Biology of the Mongolian Academy of Sciences protected area establishment, dating back to three and BirdLife International (Nyambayar and sacred mountains designated by Chinggis Khan in Tseveenmyadag 2008). This inventory contains the the early 13th Century (Enebish and Myagmarsuren results of a workshop on Identification and Safeguarding 2000, Farrington 2005). In 1778, the introduction of Important Areas of Natural Habitat in Mongolia held of a formal ban on logging and hunting at Bogd in Ulaanbaatar in April 2007. This workshop was Khan Mountain, south of Ulaanbaatar, created convened by the former MNE and the World Bank one of the world's oldest continuously protected and attended by representatives of government, areas (Johnstad and Reading 2003). In 1818, similar academia and international and national NGOs. bans were introduced at Otgontenger and Bulgan The workshop participants applied a global set of Mountains (Enebish and Myagmarsuren 2000). criteria for identifying IBAs developed by BirdLife Figure 2: Cumulative increase in number of State SPAs in Mongolia 80 70 60 50 40 30 20 10 0 1778 1957 1964 1965 1975 1977 1992 1993 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Data source: WWF Mongolia and MNE 12 The State SPA system has evolved incrementally Strictly Protected Areas are areas in which natural since the 1950s, with a rapid increase in the rate conditions are very well preserved, and where of expansion during the 1990s, following the human use is severely restricted. National Parks introduction of a democratic system of governance are areas in which natural conditions are relatively (Farrington 2005). Since 2000, the rate of expansion well preserved, and which have historical, cultural, of the State SPA system has slowed considerably scientific, educational, and ecological importance. (Figure 2), although this period has witnessed the Nature Reserves comprise areas protected for rapid development of a nationwide system of Local the conservation, preservation and restoration of SPAs (see Section 4.3). ecological, biological, palaeontological or geological features. Monuments are areas protected for Alongside expanding the system, the government of the purposes of preserving natural heritage and Mongolia has put in place a regulatory framework historical and cultural sites (Johnstad and Reading for protected areas. The first piece of legislation 2003). on protected areas was enacted in 1975, when the "Procedure on Strictly Protected Areas of As of June 2008, Mongolia's State SPA system Mongolia" was approved. The key current pieces of covers around 22 million ha or around 14 percent legislation on protected areas and their buffer zones of its national territory (Table 2). The system are the 1994 Law on Special Protected Areas and comprises 18 Strictly Protected Areas (accounting the 1997 Law on Buffer Zones (see Section 6.1). for 49 percent of the system by area), 26 National Parks (41 percent), 20 Nature Reserves (9 percent) The Law on Special Protected Areas recognises four and 8 Monuments (less than 1 percent). The full list main categories of nationally protected area (i.e. of State SPAs in Mongolia is presented in Annex 1 State SPA): (i) Strictly Protected Areas; (ii) National and on Map 1. Parks; (iii) Nature Reserves; and (iv) Monuments. Table 2: State SPAs in Mongolia as of June 2008 Category No. GIS area (ha) Official area (ha) Strictly Protected Area 18 10,987,403 10,494,283 National Park 26 9,263,347 9,214,153 Nature Reserve 20 2,057,621 2,002,228 Monument 8 104,765 97,645 Total 72 22,413,136 21,808,309 Data sources: WWF Mongolia and MNE Mongolia has an ambitious plan to expand the The second phase of this programme (2005-2015) country's protected area system, in line with includes an aim for "Special Protected Areas to the Convention on Biological Diversity (CBD) occupy up to 30 percent of territory" (MNE 2007). Programme of Work on Protected Areas, which This reiterates a goal, originally set by the Ikh Khural aims to establish and maintain comprehensive, (Mongolian Parliament) in 1992, of placing 30 effectively managed, and ecologically representative percent of the nation under some form of protected networks of terrestrial protected areas by 2010. status (Johnstad and Reading 2003). With the recent In response to the CBD Programme of Work, enlargement of the nationwide system of Local the Mongolian government is implementing a SPAs (see Section 4.3), Mongolia is well on the way National Programme on Special Protected Areas. to meeting this target. 13 It is notable that the 30 percent target of the (D. Delgertsogt, Deputy Minister of Nature, Mongolian government far exceeds the target set Environment, and Tourism verbally 2008). To this at the IUCN World Parks Congress at Caracas, end, a process of gap analysis and consultation is Venezuela, in 1992 of extending the protected area currently underway, with a view to increasing the network to encompass, at minimum, 10 percent of coverage of species and habitats that are under- each major biome by 2000. However, this apparent represented within the present system. discrepancy should be viewed in the light of the fact that Mongolia contains vast natural ecosystems with 4.3 Locally protected areas in populations of wide-ranging megafauna that do not readily lend themselves to conservation within Mongolia small, fragmented protected areas, and the fact Article 28 of the Law on Special Protected Areas that the 10 percent target of IUCN is an arbitrary empowers Citizens' Representative Khurals at figure, based as much on pragmatism as sound aimag (or capital city) and soum (or district) levels conservation science. to designate Local SPAs and set their boundaries and management regulations (see Section 6.1). In the view of MNET, expanding the protected To date Local SPAs have been designated in area system is not simply a question of increasing Ulaanbaatar city plus all but one of the 21 aimags the size of the network but one of increasing (provinces) in Mongolia2. Initially, three aimags (all the coverage of important species and habitats in central Mongolia) designated their entire territory Figure 3: Cumulative increase in number of Local SPAs in Mongolia 900 800 700 600 500 400 300 200 100 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Data source: WWF Mongolia, TNC and ALAGC 2 In the case of many Local SPAs, it is unclear whether any formal process was followed to evaluate sites against biological or other criteria before conferring a protected area designation. In the future, therefore, there may be a need to rationalise the Local SPA network, in order to channel limited resources towards sites that make the greatest contribution to conserving biodiversity of national or local importance. 14 as a Local SPA (B. Chimed-Ochir verbally 2008). 4.4 Internationally protected However, after being requested to do so by the central government, they subsequently dropped the areas in Mongolia designation for the whole aimag, and designated a In addition to its protected area systems at series of individual Local SPAs instead. national and local levels, Mongolia has designated a number of sites in accordance with multilateral As of May 2008, there were 937 Local SPAs in environmental agreements to which it is a signatory, Mongolia, covering over 16.5 million ha, equivalent specifically the Ramsar Convention, the World to over 10 percent of the national territory. These Heritage Convention and UNESCO's Man and include at least 492 sites (covering at least 11.5 million the Biosphere Programme. These sites can be ha) designated at the aimag (or capital city) level and considered as internationally protected areas. at least 399 sites (covering at least 3.6 million ha) designated at the soum (or district) level; the relevant Ramsar Sites data are unavailable for the remaining 46 sites. A summary of the Local SPAs in each aimag (and The Ramsar Convention, officially known as capital city) is presented in Annex 2 and on Map 2. the Convention on Wetlands of International Importance especially as Waterfowl Habitat, came Local SPAs range in size from less than 1 ha to into force in 1975. The convention provides a nearly 1 million ha (Khangain Bus Local SPA in framework for international cooperation for the Bayankhongor aimag). Only 40 Local SPAs are conservation and wise use of wetlands. Parties greater than 100,000 ha in area but these account have a commitment to promote the wise-use of for over half of the total area of the Local SPA all wetlands in their territory, to designate suitable system. Of the Local SPAs for which the rele- sites for inclusion on the List of Wetlands of vant data are available, more than three quarters International Importance (Ramsar Sites), and to were established after 1 January 2000 (Figure 3). promote their conservation. This contrasts sharply with the expansion of the State SPA system, which slowed down after 2000 Mongolia became a contracting party to the (Figure 2). Convention in 1998 and 11 Ramsar Sites, covering 1,695,598 ha, have been designated so far; the full There is a limited amount of overlap between State list is presented in Annex 3 and on Map 3. Ten SPAs and Local SPAs. The total area of overlap Ramsar sites are partially covered by State SPAs is 929,202 ha, equivalent to nearly 6 percent of and/or Local SPAs but one site is fully protected. the Local SPA system. Interestingly, over half of In total, 455,069 ha of Ramsar Sites currently lies the overlap occurs in Bayankhongor aimag, with outside of the national and local protected area 222,820 ha being accounted for by overlaps with systems, thus adding to the area of critical natural Ikh Bogd Uul National Park and 194,395 ha being habitat in the country. accounted for by overlaps with Gobi Gurvan Saikhan National Park. In the case of Ikh Bogd World Heritage Sites Uul, the site has only recently (2007) been included in the State SPA system, which may explain overlap The aim of the World Heritage Convention, with pre-existing Local SPAs. which came into force in 1975, is to identify and conserve cultural and natural monuments and Taken together (and excluding overlaps), State SPAs sites of outstanding universal value. Parties to and Local SPAs cover a total area of 38,015,439 the Convention have a commitment to nominate ha, equivalent to over 24 percent of the national suitable sites for recognition by UNESCO as territory. natural or cultural World Heritage Sites. 15 Mongolia became a contracting party to the · Conservation: landscapes, ecosystems, Convention in 1990 and has since nominated one species and genetic variation; natural World Heritage Site (Uvs Nuur Basin) and · Development: economic and human and one cultural World Heritage Site (Orkhon Valley). culturally adapted; The total area of these two World Heritage Sites · Logistical support: research, monitoring, in Mongolia is 932,201 ha. More details about environmental education and training. these two sites are given in Annex 3 and on Map 3. Biosphere Reserves are organised into three types of management zone (core areas, buffer Uvs Nuur Basin is composed of 12 non-contiguous zones and transition areas), each of which has areas, five of which are in Mongolia and seven a defined management regime. The zonation of which are in Russia. All five areas in Mongolia scheme is applied differently in different settings, are almost entirely included within State SPAs. to accommodate geographical and socio-cultural Similarly, Orkhon Valley is almost entirely conditions, available legal protection measures and contained within two State SPAs. Recently, a local constraints. However, only the core area of a third site, Khovsgol Lake, has been proposed the Biosphere Reserves requires legal protection, and government as a natural World Heritage Site. This hence can correspond to an existing protected area, site is whole contained within an existing State such as a nature reserve or national park (UNESCO SPA. Consequently, the existing and proposed 2008). For this reason, for the purposes of this World Heritage Sites in Mongolia only make a small report, only the core areas of Biosphere Reserves additional contribution (27,721 ha) to the area of are considered to qualify as critical natural habitat. the country that qualifies as critical natural habitat under OP 4.04. To date, Mongolia has designated six Biosphere Reserves, the first (Great Gobi) in 1990 and the Biosphere Reserves most recent (Mongol Daguur) in 2007. These six sites cover a total area of 16,078,072 ha. However, The Man and the Biosphere Programme was only 2,064,505 ha of this comprise core areas; initiated in 1971 by UNESCO. The programme further details are presented in Annex 3 and on Map aims to develop a basis for the conservation and 3. The core areas of all six of Mongolia's Biosphere sustainable use of biological diversity, and for the Reserves are designated as State SPAs. Therefore, improvement of the relationship between people they do not increase the area of the country that and their environment. Countries participating in qualifies as critical natural habitat. the programme are expected to designate one or more Biosphere Reserves, which are examples of 4.5 Natural sacred sites in terrestrial and coastal ecosystems where solutions are promoted to reconcile biodiversity conservation Mongolia with its sustainable use. Broadly speaking, sacred sites fall into two categories: (i) natural sites, such as mountains and Biosphere Reserves build on traditional confined lakes revered traditional local communities; and conservation zones, combining core protected (ii) cultural sites, such as monasteries, deer stones, areas with zones where sustainable development is petroglyphs and burial mounds (G. Verboom fostered among local inhabitants and enterprises. verbally 2008). For the purpose of this study, only Governance systems for Biosphere Reserves natural sacred sites were considered to meet the are often highly innovative; in some cases, new definition of critical natural habitat under OP 4.04, legislation can be introduced. Biosphere Reserves which includes "areas recognized by traditional local have three inter-connected functions: 16 communities (e.g., sacred groves)". Cultural sacred and standardised format, particularly for sites sites are not natural habitats per se. The safeguard outside of the national protected area network. of cultural sacred sites, together with that of sites This dearth of information inhibits the early of archaeological or palaeontological interest is identification of potentially deleterious impacts addressed by the World Bank's Operational Policy arising from development projects, thereby delaying on Physical Cultural Resources (OP 4.11, July the safeguards clearance process and requiring 2006). substantial investments to undertake site inspections to determine whether any critical natural habitats Following the consolidated list of natural sacred will be potentially impacted. sites presented on the Buddhist Ecology website, there are 47 natural sacred sites in Mongolia. Of BirdLife International is recognised as the only these sites, three have been designated at the organisation in the world that is currently identifying national level by Presidential Decree, 34 have important sites for conservation in all countries been designated at the aimag (or capital city) level in a way that is consistent with World Bank OP and 10 have been designated at the "regional" 4.04; that is, irrespective of their formal status as level (meaning that they are shared by multiple protected areas. BirdLife's IBAs are identified using aimags). Natural sacred sites are found in all 21 of standard, internationally agreed criteria, through Mongolia's aimags, plus the capital city. The aimags national and local level consultations involving with the largest number of natural sacred sites NGOs, experts and government agencies. Birds are are Khovsgol and Ovorkhangai (with four each). the best available surrogate for general biodiversity The full list of natural sacred sites in Mongolia is and can be used as an effective (if imperfect) means presented in Annex 4 and on Map 4. of identifying natural habitats that are critical for other important flora and fauna also. Of the 47 natural sacred sites in Mongolia, 16 are protected within State SPAs, while a further eight As a group, birds have many features that make are protected within Local SPAs. The remaining 23 them good indicators for the selection of important sites represent additional critical natural habitats in sites that also have wider biodiversity importance, Mongolia. As boundaries have not been officially for example: defined for these sites, they were mapped as points during the study. Consequently, it was not possible · They contain high numbers of globally to calculate the total area of these additional sites. threatened and restricted-range species, and As a proportion of the total area of critical natural their distributions overlap with those of habitat in Mongolia, however, it is small. other globally threatened and endemic, but less well-known, taxa; · They are widely distributed at all elevations, 4.6 Important Bird Areas in in almost all habitats (including those Mongolia that are semi-natural) and throughout all geographical regions; Introduction · They have well understood distributions and habitat requirements, and are relatively In addition to existing and proposed protected easy to record and identify in the field; areas, the World Bank recognises important sites · They are good indicators of habitat for "rare, vulnerable, migratory or endangered condition and human disturbance, and species" as critical natural habitats (see Section provide a means of relatively easily 6.4). Information on these sites is not always monitoring ecological changes over time; readily available in an agreed, objectively assessed · Criteria exist (and have been developed 17 over a period of over 20 years) for the Birds are also an important conservation focus objective identification of important sites in their own right. They perform ecological roles for birds at global and regional scales; essential to the function of ecosystems, such as · They can act as flagships for conservation, seed-dispersal and pollination, and they have and there is a large community of people, economic values, particularly as a basis for nature- amateur and professional, who are based tourism, a growing industry in parts of motivated to work for their conservation. Mongolia. Table 3: Summary of global categories and criteria for identifying IBAs Category Criterion Application in Mongolia A1: Globally The site regularly holds significant The site qualifies if it is known, estimated or threatened numbers of a globally threatened thought to hold a population of a species species species, or other species of global categorised as Critical, Endangered or Vulnerable conservation concern. (Near-threatened and Data Deficient species are not covered under this category in the present analysis). A2: Restricted- The site is known or thought to The site qualifies if it forms one of a set range species hold a significant component of selected to ensure that, as far as possible, all the restricted-range species whose restricted-range species of an Endemic Bird Area breeding distributions define an or Secondary Area are present in significant Endemic Bird Area or Secondary numbers in at least one site in the set and, Area. preferably, in more. A3: Biome- The site is known or thought to The site qualifies if it forms one of a set selected restricted hold a significant component of the to ensure that, as far as possible, all species and assemblages group of species whose breeding habitats characteristic of a biome are adequately distributions are largely or wholly represented. confined to one biome. A4: Globally (i) The site is known or thought to This applies to waterfowl species as defined by important hold, on a regular basis, 1% of Wetlands International (2002). Thresholds for congregations a biogeographic population of a each species were set regionally, by estimating congregatory waterbird species. 1% of biogeographic populations. or (ii) The site is known or thought to This includes those seabird species not covered hold, on a regular basis, 1% of the by Wetlands International (2002). Thresholds for global population of a congregatory each species are set regionally or inter-regionally, seabird or terrestrial species. by estimating 1% of the global population. or (iii) The site is known or thought to For waterbirds, this is the same as Ramsar hold, on a regular basis, 20,000 Convention criteria category 5. There are no sites waterbirds or 10,000 pairs of meeting criteria A4 (iii), for seabirds, in Mongolia seabirds of one or more species. (for obvious reasons) or (iv) The site is known or thought to A threshold of at least 20,000 migrating exceed thresholds set for migratory individuals of all raptor or crane species was set species at bottleneck sites. regionally. 18 Criteria used to identify IBAs in Mongolia been identified as IBAs, and other landscape-scale measures will be essential, covering a much larger The criteria used to identify IBAs in Mongolia area, if the species's population and range are to were those used in the first Asia-wide inventory be maintained. These measures are likely to be in of IBAs (BirdLife International 2004). These the form of national and provincial policies and standardised criteria were designed to identify sites plans for land-use, rather than measures targeting of global significance, and thus permit meaningful particular sites. comparison between sites within each country, with neighbouring countries, and also at regional and Second, the threats facing some species may extend global levels (Table 3). beyond the IBAs at which they occur. The reasons for a decline in a species's population may, for As well as meeting the criteria in Table 3, an IBA example, be due to collection for the wildlife trade should also, as far as possible, be: or poisoning. In such situations, national or regional interventions are likely to be required in addition to · Different in character or habitat or site-specific ones. ornithological importance from the surrounding area; Third, birds are imperfect indicators of wider · An actual or potential protected area, with biodiversity. While birds occur in almost all habitats or without buffer zones, or an area that and geographical regions, their distributions and can be managed in some way for nature habitats do not exactly mirror all other groups. conservation; Plants and freshwater fish, for example, can · Alone or with other sites, a self-sufficient show patterns of diversity and endemism that are area, which provides all the requirements not necessarily matched by those of birds. Birds of the birds, when present, for which it is are not good indicators of important sites for important. specialised cave fauna, for obvious reasons. There will, therefore, be other sites important for fauna Limitations of the IBA approach and flora other than birds that will need to be identified at some later date. This will require the At this point, it is necessary to stress that there are development of additional site selection criteria and a number of limitations to using the IBA approach further desk studies, consultation and field work. for the identification of important areas of natural habitat. IBAs in Mongolia First, a number of species are widely disbursed in To date, 70 IBAs have been identified in Mongolia. their distributions and populations throughout all, All but one of these sites qualify as IBAs under or at key stages, in their life-cycle. These might category A1 (globally threatened species), 7 qualify be species that occur at low densities over large under category A2 (restricted-range species), ranges, or species occurring in habitats that are 41 qualify under category A3 (biome-restricted comparatively intact and covering a very large assemblages) and 46 qualify under category A4 area. In such situations, only a small proportion (globally important congregations). IBAs have of a species's population and range is likely to be been identified in 18 of Mongolia's 21 aimags. The covered in any network of IBAs. Examples of such aimags with the largest number of IBAs are Dornod species in Mongolia are birds of steppe grassland (with 10), Zakhan (with 8), Khovd and Khovsgol and boreal forest, where extensive habitat remains. (with 7 each). The full list of IBAs in Mongolia is In such situations, only representative sites have presented in Annex 5 and on Map 5. 19 Mongolia's IBAs cover a total area of 8,358,313 internationally as Ramsar Sites, World Heritage Sites ha, equivalent to 5 percent of its territory. Seventy and/or Biosphere Reserve core areas, of which percent of the IBA network (5,858,813 ha) is 280,481 ha is not otherwise protected within either protected within State SPAs. Six percent of the State SPAs or Local SPAs. Therefore, 1,829,386 ha network (519,341 ha) is protected within Local of the IBA network (22 percent of the total) are not SPAs, of which 389,633 ha is not otherwise protected at the local, national or international level. protected within State SPAs. Seventeen percent of This represents an addition to the area of Mongolia the IBA network (1,390,317 ha) has been designated that qualifies as critical natural habitat (Table 4). Table 4: Coverage of IBAs in locally, nationally and internationally protected areas Area not otherwise IBA statistic Total area (ha) protected (ha) Area covered by State SPAs 5,858,813 5,858,813 Area covered by Local SPAs 519,341 389,633 Area covered by international designations 1,390,317 280,481 Area unprotected 1,829,386 1,829,386 Total area of IBA network - 8,358,313 4.7 Consolidated set of critical This study did not identify any supporting sites. If the remaining categories are overlaid with one natural habitats another, the consolidated set of critical natural habitats covers 40.3 million ha, equivalent to To summarise, there are four categories of site one quarter of Mongolia's territory (Table 5 and in Mongolia that meet the criteria for critical Map 6). natural habitat set out in World Bank OP 4.04: From the figures presented in Table 5, it can be 1. Formal protected areas, comprising: calculated that 56 percent of the critical natural a. Nationally protected areas (i.e. State habitat identified in this report is included within Special Protected Areas - State SPAs) State SPAs. Under Mongolian law, State SPA b. Locally protected areas (i.e. Local status affords the highest level of safeguard from Special Protected Areas - Local SPAs) the negative impacts of mining, infrastructure and c. Internationally protected areas (i.e. tourism development (see Section 6.1). A further Ramsar Sites, World Heritage Sites and 39 percent of the critical natural habitat identified Biosphere Reserve core areas) in this report is included within Local SPAs but 2. Community protected areas (i.e natural not formally protected at the national level. While, sacred sites) Mongolian law still affords Local SPAs some level 3. Supporting sites (i.e. sites that maintain of safeguard from negative development impacts, conditions vital for the viability of protected there is less clarity and consistency about how areas) environmental protection regulations apply to them 4. Supplementary sites (i.e. Important Bird (see Section 6.1). In particular, there are no standard Areas) management regulations for Local SPAs. 20 Table 5: Consolidated set of critical natural habitats in Mongolia Incremental addition Number of Total area Critical natural habitat to critical natural sites (ha) habitat (ha) 1. Formal protected areas a. Nationally protected areas 72 22,413,136 22,413,136 b. Locally protected areas 937 16,531,505 15,602,303 c. Internationally protected areas - - - (i). Ramsar Sites 11 1,695,598 455,069 (ii). World Heritage Sites 2 932,201 27,721 (iii). Biosphere Reserve core areas 6 2,064,505 0 2. Community protected areas Natural sacred sites 47 not available [23 sites] 3. Supporting sites [none identified during study] n/a n/a n/a 4. Supplementary sites Important Bird Areas 70 8,358,313 1,829,386 TOTAL 40,327,615 Only 5 percent of the consolidated set of critical equate to on-the-ground protection, particularly natural habitats in Mongolia identified by this in the case of Local SPAs, the majority of which study is not designated as State or Local SPAs. have no protected area management structures in A small proportion of this area is designated under place, and exist, at present, purely as `paper parks'. multilateral environmental agreements (as Ramsar In the second place, there are undoubtedly other Sites and World Heritage Sites) but the remainder critical natural habitats, outside of formal protected is not under any form of formal protected area areas, that have not been identified by this study, designation. One explanation for this finding is the particularly supplementary sites critical for rare, fact that many critical natural habitats identified vulnerable, migratory, or endangered species in outside of State or Local SPAs are relatively small, taxonomic groups other than birds. For example, discrete sites, such as wetlands, whose combined this study identifies no critical natural habitats in area is not large relative to the protected area limestone areas, which are known to have high networks, which include some vast areas of desert, levels of endemism in plants, land snails and other semi-desert and boreal forest habitats. Another taxa. explanation is the fact that the combined coverage of the State and Local SPA systems is high, relative In addition, 23 natural sacred sites do not overlap to other countries in the region. with any other critical natural habitat. As the boundaries of these sites have not yet been The 5 percent figure should not be interpreted defined, it is not possible to calculate the area they as meaning that 95 percent of the critical natural contribute to the consolidated set of critical natural habitats in Mongolia are protected. In the first habitats in Mongolia. place, formal designation does not necessarily 21 22 5. Overview of development planning in Mongolia 5.1 Sources of information Tourism Mining The Department of Social Geography of the National University of Mongolia, the Mongolian A GIS data layer showing the exploration Tourism Association and WSCC, supported by this and mining licences in Mongolia, study, conducted a questionnaire survey to assess current as of 19 May 2008, was obtained the impact of tourist camps on the environment. from the Department of Geological The survey was endorsed by the Tourism and Mining Cadastre of the Mineral Resources and Department of the former Ministry of Road, Petroleum Authority of Mongolia (MRPAM). The Transport and Tourism (MoRTT3). metadata attached to this layer included date of licence and licence holder's name for both types Data were collected from participants at the of licence. However, metadata on target mineral(s) International Travel Mart (ITM), the biggest were available for mining licences only. tourism related event in Mongolia, which was took place on 29 and 30 March 2008 in Ulaanbaatar. Infrastructure The ITM was organised by the Mongolian Tourism Association and the Tourism Department. The Data on existing and planned roads, railroads questionnaire survey was based on face-to-face and airports were digitised from maps presented interviews. The survey team consisted of two lead in the National Transport Strategy for Mongolia persons plus assistants. A total of 12 volunteer (MoRTT 2007), cross-referenced with maps and assistants were drawn from undergraduate and tables presented in the National Land Management graduate students of tourism business at the Master Plan (ALAGC 2003). Data on existing and National University of Mongolia under the planned energy infrastructure were digitised from guidance of Prof. G. Baatartsooj. The questionnaire maps and tables presented in the National Land consisted of three parts: (i) background information Management Master Plan for 2004-2023 (ALAGC on tourist camps; (ii) information on visitors; and 2003). (iii) information related to environmental issues. 3 In September 2008, MoRTT was restructured as the Ministry of Road, Transport, Construction, and Urban Development; the Tourism Department joined the new MNET. 23 Seventy one (93 percent) of the 76 tourist camps (estimates range between 30,000 and 100,000 participating in the ITM responded to the participants; World Bank 2006). questionnaire survey. Information was collected from an additional 14 tourist camp representatives Development of the mining sector that did not have displays at ITM, bringing to 85 the total number of camps responding to the Prior to the shift to a market economy in 1992, questionnaire. This is just under half (42 percent) Mongolia's mining sector was dominated by state- of the 200 camps registered with the Tourism owned joint ventures between the Mongolian Department in 2006. Additional information on government and the Soviet Union, Bulgaria, the location of tourism camps was compiled from Czechoslovakia, East Germany and Hungary (World brochures, websites and various other sources by Bank 2006). Following the break up of the Soviet WSCC. Union and the ensuing collapse of Soviet Bloc markets for Mongolia's animal products industries, 5.2 Mining development mining rapidly became Mongolia's most important industry, with annual growth of the sector over the Significance of the mining sector to period 1993 to 2003 ranging from 8 to 13 percent Mongolia's economy (Jargalsaikhan 2004 cited in Farrington 2005). Since 1992, the number of private companies (mainly World class mineral resources, coupled with a Mongolian, sometimes partnering with Canadian, strategic location between China and Russia, are British, Australian, Russian and Chinese companies) driving rapid growth in Mongolia's mining sector, involved in exploration and mining has increased and mean that it is poised to become a major (World Bank 2006). supplier of mineral resources to some of the world's largest and fastest growing economies. The passing of a Minerals Law in 1997, the Mining accounts for around a third of Mongolia's abolition of a 10 percent tax on gold and the widely GDP and around half of its industrial output and publicised discovery of the Oyu Tolgoi copper/gold export earnings (IMMI 2007, World Bank and deposit in 2001 triggered a rapid increase in mineral PPIAF 2007). Major export-related minerals include exploration during the late 1990s and early 2000s copper, molybdenum, gold, coal (both thermal and (World Bank 2006). The number of exploration coking) and fluorspar (World Bank 2006). licences issued per year increased exponentially over this period, from only four in 1998 to 580 in Over 12,000 people are employed by the formal 2004 (Figure 4). Foreign investment in the mining mining sector, while the informal (artisanal) sector also increased rapidly, from 43 billion tugriks sector involves many times this number (World (US$37 million) in 2002 to more than 227 billion Bank 2006). Although it is not a long-standing tugriks (US$195 million) in 2006 (IMMI 2007). tradition of Mongolians, artisanal mining has Private investors during this period concentrated become an important social safety net during almost exclusively on six high-value export times of economic hardship, and now provides the minerals: gold; copper; zinc; uranium; fluorspar; main livelihood for tens of thousands of people and coal (World Bank 2006). 24 Figure 4: Number and area of exploration licences issued per year 8000000 800 , Area, ha 7000000 700 Count 6000000 600 5000000 500 4000000 400 3000000 300 2000000 200 1000000 100 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Data source: Department of Geological and Mining Cadastre, MRPAM In 2006, the government responded to the rapid to prospect or conduct exploration, whereas a growth of the mining sector by passing a new "mining licence" (or operating licence) grants the Minerals Law, which provided for government right to conduct mining operations. participation in partnerships with private companies. This new law, coupled with citizen advocacy and As of 19 May 2008, 3,572 exploration licences had increased windfall taxes on profits from copper and been issued, covering a total area of 40,027,296 gold, dampened investor enthusiasm for mining in ha, equivalent to one quarter of the territory of Mongolia (The Asia Foundation 2007b). As Figure Mongolia. More than 80 percent of these licences 4 shows, the period since 2004 has witnessed a were issued after 1 January 2004, with over 28 tailing off of the rate of increase in the issuing of percent being issued in the 12 month period since exploration licences. 19 May 2007. As Figure 5 shows, most of the expansion of Mongolia's State SPA system was in Current status of exploration and the period up to 2000, while most of the growth mining in Mongolia in the area under exploration licence has been in the period since 2001. Consequently, almost all There are two types of licence for mining in State SPAs predate the granting of exploration Mongolia: an "exploration licence" grants the right licences. 25 Figure 5: Cumulative increases in areas of exploration licences and State SPAs in Mongolia 45 Millions Special Protected Areas 40 Exploration Licences 35 30 25 20 15 10 5 0 Data sources: Department of Geological and Mining Cadastre, MRPAM, and WWF Mongolia The areas covered by individual exploration licences copper-gold deposit. High densities of exploration range in size from 2 ha to over 380,000 ha. The licences are also found in several other aimags, mean exploration area is 11,206 ha, and the median including Gobi-Altai in the west, Bulgan and is only 2,674 ha, demonstrating the influence that a Orkhon in the north, Dornod in the east and few very large areas have on the mean. Article 17 of Dundgobi and Gobi-Sumber in the centre. the 2006 Minerals Law stipulates that exploration areas should be between 25 and 400,000 ha. With regard to mining licences, 1,066 had been While no exploration areas exceed the maximum issued as of 19 May 2008, covering a total area permissible size, around 1 percent are smaller than of 398,306 ha, equivalent to one quarter of one the 25 ha minimum size. percent of the territory of Mongolia. In area terms, the coverage of mining licences is only around Exploration licences are not distributed evenly one percent of that of exploration licences. In around the country. Rather, they are concentrated impact terms, however, the potential of mining in certain aimags (Table 6 and Map 7). The parts of licences to impact negatively upon biodiversity Omnogobi and Dornogobi aimags that lie outside is disproportionate to the area they occupy. This of protected areas are almost completed covered is due in particular to the potential for mining by exploration licences. It is no coincidence that operations to contribute to indirect impacts (road this part of the country contains the largest known and rail development, construction of high voltage proven deposits of mineral resources, including power lines, etc.) that extend well beyond their the Tavan Tolgoi coal deposit and the Oyu Tolgoi direct footprints. 26 Table 6: Distribution of exploration licences by aimag Exploration area as Aimag name Total area (ha) Exploration area (ha) percentage of total Arkhangai 5,509,445 578,829 10.5 Bayankhongor 11,496,246 1,526,766 13.3 Bayan-Olgii 4,713,266 674,412 14.3 Bulgan 4,749,907 1,278,579 26.9 Darkhan-Uul 318,342 46,811 14.7 Dornod 12,389,523 3,756,170 30.3 Dornogovi 10,914,054 6,565,096 60.2 Dundgovi 7,424,510 2,165,917 29.2 Gobi-Altai 14,203,734 4,501,843 31.7 Gobi-Sumber 545,291 227,506 41.7 Khentii 8,061,439 1,210,159 15.0 Khovd 7,729,575 1,290,851 16.7 Khovsgol 10,073,127 536,122 5.3 Omnogobi 16,309,375 9,328,091 57.2 Orkhon 81,022 44,096 54.4 Ovorkhangai 6,246,365 510,840 8.2 Selenge 4,112,396 649,691 15.8 Sukhbaatar 8,224,176 2,132,036 25.9 Tov 7,867,003 1,234,388 15.7 Ulaanbaatar 135,778 3,353 2.5 Uvs 7,041,905 945,592 13.4 Zavkhan 8,265,690 820,147 9.9 TOTAL 156,412,168 40,027,296 25.6 The areas covered by mining licences range in size altogether unexpected result (Map 8). The aimags from less than 1 ha to over 37,000 ha. The mean with the greatest area covered by mining licences mining area is 374 ha, and the median is only 71 are Omnogobi and Dornogobi, which, together, ha, much lower than the corresponding figures for account for half of the total mining area in the exploration licences. Article 24 of the 2006 Minerals country. Darkhan-Uul and Orkhon aimags and Law stipulates that mining areas should cover no Ulaanbaatar city all have greater densities of less than 1 ha for salt and common minerals and no mining licences than Omnogobi and Dornogobi, less than 25 ha for other minerals; no upper limit is but this reflects their small size overall, rather than set. Only three mining areas cover less than 1 ha. a larger mining area. Across the remainder of the country, mining licences cover less than 1 percent The geographic concentration of mining licences of the aimag area, sometimes considerably less is similar to that of exploration licences: a not (Table 7). 27 With regard to target minerals, Table 8 shows materials and fluorspar - individual mining that gold, construction materials, coal and areas tend to be small (averaging just 55 and 79 fluorspar are the minerals most widely targeted by ha respectively). Consequently, although they mining licences, in terms of number. Together, make up a large proportion of the total number these four minerals account for 84 percent of the of mines, their total footprint on the ground is total number of mining licences issued as of May relatively small (a little over 10,000 ha in each 2008. For two of these minerals - construction case). Table 7: Distribution of mining licences by aimag Exploration area as Aimag name Total area (ha) Mining area (ha) percentage of total Arkhangai 5,509,445 9,521 0.17 Bayankhongor 11,496,246 12,229 0.11 Bayan-Olgii 4,713,266 4,267 0.09 Bulgan 4,749,907 10,086 0.21 Darkhan-Uul 318,342 7,048 2.21 Dornod 12,389,523 10,655 0.09 Dornogovi 10,914,054 43,149 0.40 Dundgovi 7,424,510 5,535 0.07 Gobi-Altai 14,203,734 963 0.01 Gobi-Sumber 545,291 4,650 0.85 Khentii 8,061,439 12,687 0.16 Khovd 7,729,575 5,056 0.07 Khovsgol 10,073,127 1,413 0.01 Omnogobi 16,309,375 168,889 1.04 Orkhon 81,022 2,672 3.30 Ovorkhangai 6,246,365 12,295 0.20 Selenge 4,112,396 28,625 0.70 Sukhbaatar 8,224,176 2,274 0.03 Tov 7,867,003 40,848 0.52 Ulaanbaatar 135,778 3,731 2.75 Uvs 7,041,905 4,936 0.07 Zavkhan 8,265,690 6,778 0.08 TOTAL 156,412,168 398,306 0.25 The mining licences that tend to cover the largest 6). The third mineral with a large combined areas are those for copper (mean of 3,812 ha) footprint is gold. This reflects the large number and coal (mean of 1,280 ha). Consequently, these of mining licences for gold, rather than the size two minerals account for a significant proportion of individual mines (Table 8). Taken together, of the total area under mining licences (Figure gold, copper and coal account for 87 percent 28 of the area of Mongolia currently under mining Temporary Regulation on Artisanal and Small- licences. The implications of each of these target scale Mining Operations in February 2008, was minerals for biodiversity are discussed in Section essentially unregulated (see Section 6.2). Had 7.4. figures on artisanal mining been available, it is likely that the proportion of the direct mining The figures in these sections do not include footprint attributable to gold would have increased artisanal mining, which, prior to the passing of a significantly. Table 8: Distribution of mining licences by target mineral No. of As % of Mining area As % of Mean mining Target mineral licences total (ha) total area (ha) Gold 469 44.00 113,956 28.61 243 Construction materials 186 17.45 10,184 2.56 55 Coal 161 15.10 206,106 51.75 1,280 Fluorspar 130 12.20 10,237 2.57 79 Iron ore 24 2.25 8,205 2.06 342 Salt 14 1.31 674 0.17 48 Wolfram (tungsten) 10 0.94 6,647 1.67 665 Mixed minerals 9 0.84 3,995 1.00 444 Copper 7 0.66 26,684 6.70 3,812 White lead 7 0.66 5,153 1.29 736 Phosphate 6 0.56 826 0.21 138 Zinc 4 0.38 1,200 0.30 300 Alabaster 4 0.38 212 0.05 53 Rare earths 3 0.28 675 0.17 225 Molybdenum 2 0.19 202 0.05 101 Crystal 2 0.19 136 0.03 68 Silver 2 0.19 41 0.01 20 Uranium 1 0.09 264 0.07 264 Other 18 1.69 1,604 0.40 89 Unknown 7 0.66 1,304 0.33 186 TOTAL 1,066 100 398,306 100 374 29 Figure 6: Distribution of mining areas (ha) by target mineral 205 22,934 10,184 8,205 22, 10,184 8, 934 10,237 10,237 26,684 26,684 Coal Coal Gold d G ol Copper Copper 206,106 206 106 206, Fluorspar uor Fl spar Construction at i s Constucton m materials r i er al Iron r Ion 113,956 113,956 Other her Ot Future directions for the mining sector 5.3 Infrastructure development Mining sector output is expected to double or even Social and economic context for infrastructure treble from 2003 levels by 2010, provided that development in Mongolia large projects get development approvals and are successfully commissioned (World Bank and PPIAF As alluded to in the previous section, Mongolia 2007). It is very likely that mineral exports will is currently witnessing unprecedented rates of continue to be one of Mongolia's most important economic growth, in large part driven by growth sources of revenue for decades to come (Farrington in the extractive industries (mining and oil and 2005). Major new mines in the process of being gas). In addition to possessing world class mineral developed include the Boroo gold mine, a hard-rock deposits, Mongolia sits astride the shortest land mine located in northern Mongolia, the Oyu Tolgoi route between Moscow and Beijing. Between copper-gold mine, located in Omnogobi aimag, and 2000 and 2005, total Russia-China trade increased the Tavan Tolgoi coal mine, also in Omnogobi. by 200 percent (World Bank and PPIAF 2007). A Oyu Tolgoi alone will double Mongolia's exports, third factor influencing Mongolia's development while Oyu Tolgoi and Tavan Tolgoi together will trajectory is rapid urbanisation, as a nomadic, treble them. This will create huge trade surpluses and agricultural economy gives way to a sedentary, distort the national economy (G. Hancock verbally service-based one. Consequently, Mongolia is 2008). In addition to social and economic impacts, poised for rapid growth, underpinned by mining, the continued growth of the mining sector can be trade and continued urbanisation (World Bank and expected to have a number of implications for critical PPIAF 2007). natural habitats and the fauna and flora species they support. These are explored in Section 7. 30 The mining-infrastructure nexus Because mines are often situated in remote locations, the infrastructure developments they One of the key economic and political drivers for require are often very specific; without the mine, infrastructure development over the next decade the infrastructure is usually of little value (World will be mining. Mineral deposits are frequently Bank and PPIAF 2007). Consequently, over the located in remote areas, poorly served by existing next decade, mines can be expected to provide infrastructure. Development of these resources the economic justification, and in many cases the will require the construction of water and power capital, for a large proportion of the infrastructure infrastructure to facilitate their extraction and developments that will take place in Mongolia. This processing, as well as the construction of transport is especially the case as far as potential impacts infrastructure to facilitate their export to markets on biodiversity are concerned, because mining- (particularly China). As a recent World Bank study associated infrastructure will extend into areas that observes, "almost all medium- and large-mine have hitherto had very limited human footprints, developments likely to occur in Mongolia will require whereas investments in infrastructure not directly significant new power, water and transportation linked to mining will (with a few exceptions) be infrastructure" (World Bank and PPIAF 2007, p6). concentrated in urban areas. With regard to transport infrastructure, projected For the purposes of this study, therefore, the increases in rail traffic due to increased international potential impacts of infrastructure development trade between Russia and China are likely to be on important areas of natural habitat were able to be catered for by improvements to the considered mainly in terms of the indirect impacts existing main line (World Bank and PPIAF 2007). of mining (i.e. construction of road, rail and power Therefore, the principal economic driver for infrastructure, growth of mining settlements, expansion of the rail network into new areas will be etc.). Exceptions were made for major planned mining developments. infrastructure developments not directly linked to mining that were thought to have the potential With regard to power infrastructure, Mongolia's to cause severe impacts on biodiversity if they relatively high per capita consumption of electricity were located within critical natural habitats. These (1,300 kWh) is driven by the energy demands of the developments include construction of new mining sector (World Bank and PPIAF 2007). Several railroads, arterial roads, airports and hydropower proposed power infrastructure developments, such plants. as the construction of a thermal power station near Tavan Tolgoi and a high voltage transmission line Current status of infrastructure linking it to the Central Energy System, are driven by the projected demand of new mines and the Mongolia has an extensive infrastructure stock for opportunity to export surplus power to consumers a country at its level of economic development. in Ulaanbaatar or neighbouring countries. Rates of access to roads, electricity and mobile telephony are higher than might be expected given With regard to urban development, existing mining the country's income and geography (World Bank areas, such as Erdenet, are already witnessing and PPIAF 2007). Nevertheless, considerable rapid urban expansion and will need additional infrastructure gaps remain. Less than one third of infrastructure (World Bank and PPIAF 2007). New households in the country have adequate access to mines are expected to catalyse the development water supplies, for example, and only a little over of mining towns. For example, a mining town of half of rural Mongolians have access to electricity 14,000 people is expected to develop in Omnogobi (World Bank and PPIAF 2007). aimag to service the Oyu Tolgoi mine. 31 Although Mongolia's road density (0.009 roads little over 1 percent being met by diesel, and small- per 1,000 km2) is one of the lowest in the world, scale hydropower accounting for 0.3 percent. The it is denser than would be expected based on the balance was made up of electricity imports, mainly country's income density (World Bank and PPIAF from Russia (World Bank and PPIAF 2007). As 2007). As of the end of 2005, Mongolia's road of 2003, there were six medium-scale hydropower network totalled 49,250 km, comprising 11,219 km plants in Mongolia. The largest of these, on the of national roads and 38,031 km of provincial and Bogd River in Zavkhan aimag, had an installed local roads (MoRTT 2007). Of Mongolia's total capacity of 20 MW (ALAGC 2003). road network, only about 1,900 km is surfaced. A further 1,900 km is gravel and 1,800 km is Projected infrastructure developments improved earth tracks. The remaining 43,600 km is earth tracks (World Bank and PPIAF 2007). Over the next 10 years, expanded access to quality infrastructure will be required to sustain GDP Most domestic freight transport is by road. growth predicted to be as high as 7 or 8 percent per However, rail dominates international freight annum (World Bank and PPIAF 2007). A recent transport, because of its comparative advantage World Bank study recommended investments for moving minerals. Road freight is mainly from in three key areas, to prevent infrastructure Ulaanbaatar to the aimags, whereas rail freight is becoming a constraint on economic performance: mostly of coal to Ulaanbaatar (World Bank and (a) investments required to maintain the existing PPIAF 2007). Mongolia's rail network comprises stock of infrastructure; (b) investments required to 1,815 km of broad-gauge track, of which 1,110 km exploit the potential of recent mining discoveries; are on the main line linking Russia to China, 238 km and (c) investments in national capacity to avoid are on a separate network in eastern Mongolia linked electricity shortages and to upgrade distribution to the Russian railway, and 477 km are branches off facilities (World Bank and PPIAF 2007). the main line (World Bank and PPIAF 2007). One important branch line connects major coal mines As the government of Mongolia formulates with the power plant used to operate the Erdenet and implements plans to meet the country's copper mine in Orkhon aimag (MoRTT 2007). infrastructure needs, it is committed to the principles of sustainable development. These commitments Regarding aviation, Mongolia has 17 domestic are set out in the 1995 Law on Environmental airports but only two international airports. One Protection and the 1998 Law on Environmental of these, Chinggis Khan International Airport in Impact Assessment (EIA), which provide the legal Ulaanbaatar, receives 98 percent of international air basis for regulating the environmental impacts services (World Bank and PPIAF 2007). of infrastructure development (see Section 6.1). Further specific reference to the principles of At present, Mongolia has three regional energy sustainable development is made in a number of systems. The largest by far is the Central Energy recent policy statements by the government. For System, which covers Ulaanbaatar, Erdenet and example, the 2007 National Transport Strategy other urban centres in the centre of the country and for Mongolia states that "government-funded accounts for 96 percent of energy consumption. investment decisions will be based on thorough The Eastern Energy System covers urban centres in technical, economic, financial and environmental Dornod and Sukhbaatar aimags, while the Western analyses of all alternatives" (MoRTT 2007, p3). Energy System covers urban centres in Bayan-Olgii, Uvs and Khovd aimags (World Bank and PPIAF There is no single document covering all current 2007). In 2002, coal was the fuel source for 90 infrastructure development plans in Mongolia. percent of Mongolia's electricity generation, with a In 2003, ALAGC prepared a National Land 32 Management Master Plan, covering the period reviewed planned developments in the transport, 2004-2023, which presented information on energy and communications sectors, and made planned developments of transport, energy, water, recommendations for enhancing efficiency, communications and tourism infrastructure. improving planning and prioritising investments However, the information contained in this plan in infrastructure (World Bank and PPIAF 2007). was compiled from individual line ministries, which, While not an official document, this study provides in most cases, have subsequently revised or updated a valuable insight into the feasibility of the various their plans. infrastructure developments proposed by the government of Mongolia. In the transport sector, a national strategy was prepared in 1999 by the World Bank (1999). A At the sub-national level, the government of new strategy was prepared in 2007 by the former Mongolia is currently preparing a regional MoRTT, with technical assistance from the Asian development plan for the South Gobi, with Development Bank (ADB) (MoRTT 2007). technical assistance from the World Bank and The new transport strategy sets out 14 general additional support from the Netherlands-Mongolia sector strategies, including one on environmental Trust Fund for Environmental Reform (NEMO). sustainability, specifically that "the Government This plan frames and explores the implications of will ensure that all transport projects will be different options for the infrastructure that will environmentally sustainable, respect the ecosystems, be necessary to facilitate economic growth in the preserve the socio-cultural balance, and minimize the South Gobi region (J. Reichert verbally 2008). environmental impact of any infrastructure works This planning process provides an opportunity and transport services" (MoRTT 2007, p4). This to evaluate the potential environmental and social includes a commitment to observe "environmental impacts infrastructure developments in the region impact assessments and other requirements of that is the major focus for mining activity in the the Government's environmental policies" in the country (see Section 6.1, Tables 6 and 7). planning and operation of transportation facilities and services (MoRTT 2007, p30). Over the period until 2015, Mongolia's transport system will need to respond to increasing Realising the objectives and targets set out in the congestion in Ulaanbaatar, ensure adequate access new transport strategy will require a total investment from mining regions to international markets, of US$1,275 million over the period 2006-2015, of provide reliable trade access to the Russian and which US$926 million is expected to come from the Chinese borders, and improve the connectivity government of Mongolia and US$349 million from between Ulaanbaatar and the regions (World Bank other sources (MoRTT 2007). and PPIAF 2007). Policy for the energy sector is set by the Ministry of With regard to road infrastructure, the National Minerals and Energy. The legal basis for the current Transport Strategy identifies "improvements structure and operations of the sector is provided to the main north-south road corridor via by the 2001 Energy Law, which limits the central Ulaanbaatar" as the top priority, followed by government's role to policy making and provides "improvements to the main east-west road for the operation and ownership of energy services corridor (i.e. Millennium Road)" and improved by public or private companies (World Bank and connections between Ulaanbaatar and these PPIAF 2007). corridors (MoRTT 2007). A recent World Bank-commissioned study on According to data collated in the recent World the delivery of infrastructure services in Mongolia Bank study (World Bank and PPIAF 2007), 33 the government's investment plan for road and operated by the mining firms themselves development includes the following projects: (World Bank and PPIAF 2007). No decisions have yet been made about which mining railways will · Completion of the Millennium Road (600 be built, if any (World Bank and PPIAF 2007). km); However, the National Transport Strategy identifies · A new north-south road in western a particular need for new rail services between the Mongolia, linking Russia to China (800 Chinese border and mines in the South Gobi region km); (MoRTT 2007). · Four additional new north-south roads linking to the Millennium Road (1,100 km With regard to civil aviation, the National in total); Transport Strategy identifies improvements to · Completion of the road from Ulaanbaatar to domestic air services to link the west of the country Zamyn Uud on the Chinese border (300 km); with Ulaanbaatar and other key locations and · A southern road to Altay (225 km). improvements to domestic air services to meet tourism needs as the top priorities (MoRTT 2007). Completion of sections of the Millennium Road is In addition, the strategy recommends undertaking a being supported by the World Bank and bilateral feasibility study to assess the viability and timing of donors. A project to construct one of the north- a new international airport for Ulaanbaatar. south roads linking to the Millennium Road (Tsagan Nuur to Yarantay) is currently under preparation According to the World Bank study (World Bank with funding from ADB. ADB is also financing and PPIAF 2007), the government's investment completion of the road from Ulaanbaatar to Zamyn plan for civil aviation includes the following Uud (MoRTT 2007). projects: With regard to rail infrastructure, the National · A new international airport for Ulaanbaatar. Transport Strategy identifies "improvements to the · Upgrading four domestic airports (Olgiy, north-south rail corridor linking Russia and China" Ulaangom, Uliastay and Altay). and "establishment of rail as the main option for connectivity to the mining sector" as the top On 3 March 2008, the governments of Japan and priorities (MoRTT 2007). Mongolia concluded an agreement to build a new international airport at Zuun Mod, 40 km south of According to the World Bank study (World Bank Ulaanbaatar. This airport, which will be built at a and PPIAF 2007), the government's investment cost of ¥28.8 billion (US$175 million), is expected plan for rail development includes the following to open in 2015 (Kyodo News Agency 2008). projects: With regard to energy, the National Land · A new rail line linking Russia to China Management Master Plan presents a list of eight (1,100 km); hydropower plants planned for construction · New east-west railways in the south of during the period 2004 to 2012. The total installed Mongolia (500 km); capacity of these plants will be 266.5 MW, of which · New mining railways (300 km); 83 percent will be provided by the Egiin plant in · Railways for the maintenance sector. Bulgan aimag (ALAGC 2003). The dams created by the eight hydropower plants will inundate The study notes that new mining railways will be a combined area of nearly 1.1 million ha, with contingent on the availability of private financing, potentially serious implications for aquatic and and that they should, as far as possible, be built terrestrial biodiversity. 34 According to the World Bank study (World Bank Second, many proposed developments, particularly and PPIAF 2007), the proposed energy investment in the transport sector, appear to lack economic programme of the Mongolian government justification. One example is the recent expansion comprises the following elements: of the Millennium Road Programme to include five new north-south routes. No prefeasibility or · Commissioning of both phases of the Egiin feasibility studies have as yet been conducted on hydropower plant; these routes, and there is a high risk that the system · Construction of new coal-fired combined will attract insufficient traffic to justify its costs heat and power plants in Ulaanbaatar; (World Bank and PPIAF 2007). · Increased imports of power from Russia, using existing transmission capacity; Third, there needs to be a realignment of · Construction, by the private sector, of a investment from new construction to maintenance. coal-fired power plant at Tavan Tolgoi. Between 2000 and 2006, overall expenditure on capital maintenance across infrastructure sectors The first stage of the 220 MW Egiin hydropower dropped from 0.6 to 0.2 percent of GDP (World plant is proposed for commissioning in 2012 Bank and PPIAF 2007). Taking road transport as (World Bank and PPIAF 2007). an example, national and local road funds currently spend 75 percent of their (limited) resources on Apart from hydropower plants, other water new road construction rather than maintenance infrastructure has not been looked at in any (World Bank and PPIAF 2007). detail by this study. It is recognised, however, that some planned developments have significant In response to these constraints, the World Bank biodiversity implications. One example is the formulated preliminary recommendations on proposed Herlen-Gobi water project, which how the government's investment plan for the proposes transferring water from the Herlen 2008-2015 period could be modified to make River to the south-east Gobi, 70 percent of which it more consistent with the likely availability of is projected to meet mining demand (World Bank resources (World Bank and PPIAF 2007). These and PPIAF 2007). recommendations included: dropping plans for new east-west railways in the south of the country; There are a number of reasons to expect that the reducing the need for a new rail line linking Russia infrastructure development plans summarised and China by adding capacity to the existing line; above will not be realised in full by 2015. First, the reducing the construction of new north-south required funding is unlikely to be available. For roads under the Millennium Road Programme from example, based on independent assessments carried 1,100 to 150 km; and deferring the construction of out during the recent World Bank study, the total a new international airport (World Bank and PPIAF cost of transport infrastructure developments 2007). proposed for Mongolia over the period 2008- 2015 is three to four times what countries typically 5.4 Tourism development spend on transport infrastructure, and would be very difficult to realise (World Bank and PPIAF Background 2007). This mismatch between likely resources and proposed investments suggests that plans Tourism in Mongolia is largely based on its rural will have to be considerably scaled back, even if population and their pastoralist lifestyle, combined tax revenues devoted to infrastructure were to with its open, vast and attractive landscapes increase significantly (World Bank and PPIAF (Wigsten 2005). Alongside the generalist nature 2007). 35 tourist are small but increasing numbers of tourists are typically accommodated in tented ger organised and independent travellers with specialist camps run by tour operators, based on concessions interests, ranging from horse-riding and fly-fishing licensed by the government. The local government to bird and butterfly-watching. Not surprisingly, a charges rent for land used by these camps. number of protected areas in Mongolia are popular tourist destinations for their landscape, cultural Increasingly, based on others' perceived success and wildlife values and opportunities for outdoor and initiatives such as ger-to-ger, herder families activities. are establishing independent camps in popular visitor destinations. However, their activities are Tourism development has the potential to not yet coordinated, and they lack business skills make significant contributions towards the and capacity for promotion of their products and conservation of protected areas by directly services. As a result, they have not yet developed financing their management and/or benefiting integrated products and services, which could be local economies and, thereby, increasing political easily sold, via the supply chain, to the international and community support for their conservation. market (Wigsten 2005). Tourism development also presents considerable opportunities to support sustainable development The benefits accrued by communities from tourist in Mongolia. Unlike certain other sectors, travel camps vary. Where a camp is locally owned or and tourism is not centred on Ulaanbaatar, and the investor originates from area, it can provide represents a considerable counterbalance to rapid significant local benefits through employment, urbanisation (J. Wigsten in litt. 2008). It also allows the renting of horses and camels, and the sale of young Mongolians who have moved to the capital vegetables, milk products and meat (Wigsten 2005). city to return to their native rural areas seasonally or It is often the case, however, that tour operators permanently, and it can generate good employment use their own animals and bring in produce from opportunities for women, helping to maintain a outside, due to reliability and safety considerations. gender balance among rural populations (J. Wigsten In this case, benefits to the local community can be in litt. 2008). In addition, barriers to entry into the extremely limited. tourism industry for rural people are relatively low in terms of investment costs (J. Wigsten in litt. The expansion of tourism 2008). Political and economic reforms since the early 1990s Due to the long, cold winters, and the extremely have led to the privatisation of tourism operations, limited opportunities for winter-tourism, the tourist the lifting of restrictions on entry to and travel season runs from April to October, with July and around Mongolia, and the rapid development of August being the busiest months. The limited the sector. The number of foreign visitors entering infrastructure, especially relating to transportation Mongolia is growing rapidly, with an increase from and accommodation, means that tourists are heavily 137,000 in 1999 to 385,000 in 2006 (MoRTT 2007) dependent on tour operators, who provide a package (Figure 7). A significant proportion of these arrivals that includes transport, food and lodging, which are are not leisure visitors but business travellers, who pre-booked and linked together as part of a tour do not typically use ger camp accommodation near programme (Wigsten 2005). Outside Ulaanbaatar, protected areas (J. Wigsten in litt. 2008). 36 Figure 7: Increase in visitors to Mongolia, 1999-2006 (MoRTT 2007) 450 nds Thousan 400 350 300 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 2006 The growth in visitors is matched by an increase Development of a tourism strategy for Mongolia in the number of hotels and tourist camps, with the latter increasing from 63 in 1999 to 200 in The most recent strategy for tourism development 2006 (MoRTT 2007) (Figure 8). Over 90 percent is the Tourism Development Strategy for Mongolia of visitors originate from 10 countries: China, 2007-2011, published by the former MoRTT. Russia, Korea, Japan, the United States, Germany, The strategy proposes the need to establish an France, the United Kingdom, Australia and the independent structure which would be responsible Netherlands, in that order. The income from for implementing state policy, training, information, tourism in Mongolia in 2006 was US$210 million, awareness and research. Objectives in the strategy or 10 percent of Mongolia's gross national product. include, inter alia: (1) protection of the environment and nature, and the social and cultural heritage of Tourism development is viewed as a priority for Mongolia; (2) mitigation of poverty with benefits economic development by the government (T. for households on low incomes, and social fragile Batjargal pers. comm.). It is widely recognised groups; (3) building the capacity of human resources that development of the sector should focus on in the tourism sector; (4) intensifying stakeholder specialist rather than mass tourism. Since most cooperation, and encouraging initiative and of the tourism in Mongolia is nature based, it can investment by the private sector; (5) developing be expected that tourist numbers and pressure on community-based tourism; (6) improving tourism Mongolia's nature, especially on its protected areas, management in the protected areas; and (7) will both increase over time (Schleicher and Hotz developing winter tourism to extend the tourism 2007). season. Specific projects include the establishment of hot spring resorts (Khujirt, Shargaljuut and Domestic tourism is currently very low, except Tsenkher hot springs) and winter sport complexes at for visitors to Gorkhi-Terelj National Park near Ulaanbaatar and Khovsgol. Ulaanbaatar. It is, however, expected to rise as incomes rise and infrastructure improves. No data It should be noted that, despite the existence were obtained on the levels and destinations of of a national strategy, tourism development in domestic tourists. Mongolia remains largely demand-driven, devoid 37 Figure 8: Increase in tourist camps and hotels in Mongolia, 1999-2006 (MoRTT 2007) (the green line shows number of hotels; the blue line shows number of tourist camps) 350 Tourist camps 300 Hotels 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 of any strategic guidance. The sector appears to operators, collaboration with local communities as develop almost wherever it wishes to. Evidence of part of the `Community Based Tourism Network', rapid expansion of tourist developments leading and providing guidance on tourism development to to saturation can be seen in a number of projected provincial authorities. areas, such as Khovsgol Lake and Gorkhi-Terelj National Parks (J. Wigsten in litt. 2008). The successes of STDC have been achieved without any intervention by international donor Development of sustainable tourism in agencies, and have been developed around a clear Mongolia mission of destination management. Because STDC has a clear mission and communication strategy, its Perhaps the most significant initiative is the stakeholders know from the outset what they are Sustainable Tourism Development Center (STDC). choosing, and cooperation can be built around the The mission of STDC is to contribute towards the intended business results of the organisation. The design, monitoring, evaluation and improvement emergence and maturation of STDC will create an of sustainable tourism practices and principles in interface between the tourism industry and future Mongolia. Its work includes establishing policy and spatial development planning needs for tourism to planning for sustainable development in protected continue to make a large contribution to Mongolian areas, defining guidelines and rules for tour GDP (Wigsten in litt. 2008). 38 6. Overview of regulatory and institutional frameworks 6.1 Regulatory and institutional The cornerstones of the regulatory framework for environmental protection are the 1995 Law frameworks for on Environmental Protection and the 1998 Law environmental protection on Environmental Impact Assessments. Among other things, these laws enshrine the polluter-pays Regulatory framework for environmental principle and grant citizens the right of access to protection environmental information. S · ince 1990, Mongolia has introduced several key pieces of legislation related to environmental protection, including: The Constitution of Mongolia (1992); Provision for EIA is made by Article 7 of the 1995 Law on Environmental Protection, and this is expanded upon by the 1998 Law on EIA. The Law on EIA provides for financial and criminal penalties, and even the suspension of implementation, for · The Law on Environmental Protection project proponents who do not comply with the (1995); requirements set out in EIA reports. However, · The Law on Environmental Impact there is there is no specific provision for public Assessments (1998); consultation in the EIA process, and the public is · The Law on Special Protected Areas (1994); only guaranteed access to EIA reports after they · The Law on Buffer Zones (1997); have been completed. · The Law on Land (2002); · The Law on Forests (2007). The 1994 Law on Special Protected Areas provides for the establishment of protected area systems at There remain, however, a number of important national and local level, and establishes management gaps and limitations. Some observers (e.g. regulations for nationally protected areas (State IIED and WBCSD 2002) note that the existing SPAs). Articles 12, 18, 21 and 24 of the Law on regulatory framework is weak in the area of public Special Protected Areas explicitly prohibit participation. In particular, there is no specific exploration and mining within State SPAs, provision for public consultation in the EIA and restrict tourism to certain zones. According process. Other observers (e.g. Wingard and Zahler to Article 28, whether tourism is permitted within 2006) point to the lack of any law or regulation Local SPAs appears to be determined on a case-by- directed at controlling the wildlife trade. case basis by the relevant Citizens' Representative 39 Khural. The 2007 Law on Forests appears to extend not have a dedicated wildlife management agency the prohibition on exploration and mining within (Wingard and Zahler 2006). Instead, management areas of natural habitat to all "protected forests": a authority is delegated to local governments, very broad category. which lack the necessary training and funding to implement effective management, particularly given A key piece of legislation is the 2002 Law on Land, the challenges of policing Mongolia's vast open which creates the category of `Special Needs Land', areas (Wingard and Zahler 2006). Local departments which includes State and Local SPAs. Special Needs are understaffed, underpaid, poorly equipped and, Land is the property of the state and may not be therefore, unable to control the unsustainable and given for private ownership. illegal hunting that is causing dramatic declines in Mongolia's wildlife (Wingard and Zahler 2006). A more detailed discussion of the regulatory framework for environmental protection in The Environmental Protection Agency (EPA), Mongolia is presented in Annex 6. which was previously an agency of the former MNE, was integrated into the State Professional Institutional framework for environmental Inspection Agency in February 2003 (World Bank protection 2006). State chief inspectors are assigned to the aimags (and capital city), while state inspectors and The state administrative organisation responsible rangers are appointed at the soum (or district) level. for land management and cadastre is the The Law on Environmental Protection empowers Administration of Land Affairs, Geodesy and state inspectors to require the elimination of adverse Cartography (ALAGC). ALAGC is responsible for impacts or the suspension of activities with adverse preparing the National Land Management Master environmental impacts, and impose administrative Plan, the most recent version of which, covering the penalties on violators. period 2004-2023, was approved by Government Decree No. 264, dated 24 December 2003. 6.2 Regulatory and institutional The state administrative organisation responsible frameworks for mining for developing and enforcing environmental Regulatory framework for mining and natural resources policies is the Ministry of Nature, Environment and Tourism (MNET). The Prior to 2006, the regulatory framework for mining Ministry was established in 1989 as the Ministry of in Mongolia was formed by the 1988 Law on Nature and Environment (MNE). In September Subsoil (updated in 1995) and the 1997 Minerals 2008, MNE was restructured as MNET, with Law, complemented by the various pieces of the inclusion of the Tourism Department of the environmental legislation summarised in Section former MoRTT. Within MNET, responsibility for 6.1 and Annex 6. A number of observers (e.g. protected areas lies with the Special Protected Areas IIED and WBCSB 2002, World Bank 2006) noted Administration, established in 1993. The ministry weaknesses with this framework, particularly in is one of the most poorly funded in Mongolia. In the areas of public participation in the permitting 2003, for intance, the former MNE received less process, sanctions, funding for rehabilitation, than 1 percent of the total state budget (Wingard informal mining, protected areas and compensation and Zahler 2006). for land use. MNET faces particular capacity limitations with To some degree, these weaknesses were addressed regard to wildlife management. The ministry has by a 2006 revision of the Minerals Law. This no specific budget allocated for wildlife, and does 40 amendment strengthened environmental Institutional framework for mining protection and clarified some of the procedures for exploration, mining and related investment Since its creation in Spetember 2008, the (The Asia Foundation 2007a). With regard to state administrative organisation with overall informal mining, a significant recent development responsibility for development of the mining sector was the approval, in February 2008, of temporary has been the Ministry of Minerals and Energy. The regulations and a sub-programme on artisanal and ministry is responsioble for promoting the sector small-scale mining. Despite these developments, overall, putting in place the necessary regulatory detailed regulations necessary for the effective framework, and collating and evaluating the results management of the mining sector still need to be of regional geological surveys. completed. Within the ministry, the key implementing agency The 2006 Minerals Law sets out the process for mining is MRPAM, which is responsible for licensing large-scale exploration and mining for issuing mineral licences, compiling industry activities. Articles 17 and 24 of the Minerals information, archiving geological data, and Law prohibit exploration and mining within conducting geological surveys. It has three divisions: "Special Needs Land", which includes State the Department of Geological and Mining Cadastre; and Local SPAs. However, the law introduces the Mining Office; and the Office of Geology/ a number of constraints on effective public Mongolian Geological Survey. The Department of consultation during the licensing process, including Geological and Mining Cadastre, which has a staff no specific requirement to consult with affected of 12, is responsible for processing exploration and local communities, and a 30-day deadline for mining licence applications (World Bank 2006). comments, after which exploration licences are granted automatically. Another shortcoming of the When the 1997 Minerals Law was approved, an current law is that MRPAM, the agency responsible independent regulatory agency, Geological and for issuing exploration licences, is only required Mining Inspection Agency (GMIA), was created to notify MNET, the ministry responsible for the (World Bank 2006). GMIA has since become national protected area system, after the licence has a division of the State Professional Inspection already been granted, giving MNET no opportunity Agency, the consolidated inspection agency. Its 12 to double-check that the requested area does not officers are linked to aimag-level mine inspection overlap with any protected area. agencies, which report directly to the prime minister's office (World Bank 2006). In order to regulate the massive and informal artisanal mining sector in Mongolia, the government A number of weaknesses have been identified in recently passed a Temporary Regulation on the institutional framework for mining, including Artisanal and Small-scale Mining Operations, which the lack of an appropriate structure to ensure the will remain in place until a full law is passed. This timely enforcement of regulations relating to the regulation explicitly prohibits artisanal and small- procedures for local governments to issue land use scale mining within protected areas and other permissions and for enforcement of sanctions for Special Needs Areas defined by the 2002 Law on licence violations, and poor coordination between Land. MRPAM and MNET, the Ministry of Finance, the State Professional Supervision Agency, and local A fuller discussion of the regulatory framework for administrative bodies (World Bank 2006). MRPAM environmental protection in Mongolia is given in requires additional capacity in a number of areas, Annex 7. including capacity to regulate artisanal and small- scale mining, and capacity to audit the technical and 41 environmental performance of mining operations · The Tourism Development Strategy for against the conditions specified in permits and Mongolia 2007-2011 (2007). licences. To address the former constraint, a new Artisanal and Small-scale Mining Unit was The basis for regulation of tourism is provided by established within MRPAM in 2005, with the the Law of Mongolia on Tourism (promulgated in assistance of SDC (World Bank 2006). May 2000), with the conduct of tourism business in special protected areas being governed by the 1994 To address the broader capacity constraints Law on Special Protected Areas. faced by MRPAM, the Mongolia Mining Sector Technical Assistance Project, currently being Under the 2000 Law on Tourism, tourism developed by the government of Mongolia and the organisations (tour operators and tour agencies) World Bank, will include a component on capacity are required to "take necessary measures within building for the Department of Geological and [their] control, to protect and preserve rare Mining Cadastre of MRPAM. As part of this, objects of national, historical, cultural and natural mining cadastral data will be fully computerised, value, and report the breaches to the relevant allowing protected areas (and, potentially, other authorities" (Article 8.1.5) and "endeavor to critical natural habitats) to be built into the develop environmentally-friendly tourism that shall system and licence applications that overlap contribute to the socio-economic development with them to be automatically rejected. The of Mongolia, as well as to the health, customs and proposed World Bank project will also promote traditions of the population" (8.2). more effective inter-ministerial cooperation, by making individuals responsible for inter-agency The powers of the Tourism Department are coordination (G. Hancock verbally 2008). set out in Article 16, and include the power to: develop and coordinate the unified state policies 6.3 Regulatory and institutional with respect to tourism and provide specialised administration (Article 16.1.1); develop a tourism framework for tourism development plan and ensure its implementation (16.1.3); approve rules for the grading and Regulatory framework for tourism licensing of tourism organisations, high-level hotels and tourist camps (16.1.6); determine the number Since 1990, Mongolia has developed several key and location of tourist camps, relaxation and laws, regulations and guidelines related to tourism recuperation centres, and sanatoriums operating development, including: in the tourism regions, and keep a unified registry thereof (16.1.7); set the number of tourists to be · The Law on Special Protected Areas (1994); received in a tourism region (16.1.12); set tourist · The State Policy on Tourism Development routes and itineraries (16.1.13), and prohibit (1995); the conduct of any activity that could possibly · Ministerial Order No. 43 on the Regulation adversely impact the development of tourism of Tourism Operations in Protected Areas (16.1.14). (1996); · The Master Plan for Developing Tourism The Law on Tourism also provides for the in Mongolia, supported by JICA (1999); establishment of the Mongolian Tourism · The Law on Tourism (2000); Board (Article 15), which is responsible for the · Guidelines and organisational systems for development and implementation of unified ecotourism programs in the Mongolian policies on tourism. The Tourism Board includes Tourism Master Plan by JICA (2002); inter alia representatives from MNET and 42 members proposed by non-governmental tourism are obtained and "environmentally safe technology" organisations (15.3). is used, eco-travel and tourism can be organised and accommodation for temporary residence or Citizens' Representative Khurals at aimag, soum camping can be built within limited use zones and bag levels are authorised to make decisions (Article 11). However "any activities which pollute about economic and social development, as the soil, water and air" and "using open water well as allocation of natural resources in their sources such as lakes, rivers, streams, springs or respective territories. With respect to tourism, they ponds for commercial purposes" are prohibited are responsible (Article 18.1) for: overseeing the (12.1). implementation of state policies and legislation on tourism within their respective territories (18.1.1); National Parks are divided into special zones, travel ensuring the implementation of the national and tourism zones and limited use zones (Article programme on development of tourism (18.1.2); 14). The management regulations for National submitting to the Tourism Department proposals Parks are similar to those for Strictly Protected regarding the inclusion of particular parts of their Areas, insofar as tourism activities are permitted respective territories in the tourism resource region (within travel and tourism zones and limited use (18.1.3), and approving tourism development zones; Articles 16 and 17). programmes in their respective territories (18.1.4). The Law on Special Protected Areas does not Governors at all three administrative levels have appear to appear to prohibit responsible tourism the authority with respect to tourism (Article 18.2) activities within Nature Reserves, providing they to: implement, in their respective territories, state do not change the natural original condition or policies regarding tourism, and the implementation have negative environmental impacts such as the of the tourism legislation (18.2.1); issue, within the construction of buildings, and the digging of land limits of their authority and in accordance with etc. (Article 21). Responsible tourism activities number and location approved by the Tourism appear to be permitted at Monuments, although Department and applicable legislation, permits it is prohibited to "construct buildings which soil to possess land by tourist organisation to be the view and scenery, to plough or dig land, to use established in the given territory, and conclude explosives, to explore or mine natural resources, agreements to this effect (18.2.2); and develop to touch, erode or remove Natural or Cultural programmes and projects in conformity with and Historical Monuments, or conduct any other the policies of regional tourism development in activities which cause damage to them" (Article 24). their respective territories, submit proposals to the relevant Citizens' Representative Khural, and Development of tourist infrastructure, both inside develop and implement tourism plans in line with and outside of protected areas, is also covered by the approved programmes (18.2.3). the legal requirement for EIAs, which sets out the process for screening new projects, and the The 1994 Law on Special Protected Areas is explicit contents for environmental protection plans where about whether tourism can be organised in the four these are needed. types of protected area at national level: (i) Strictly Protected Areas; (ii) National Parks; (iii) Nature Institutional framework for tourism Reserves; and (iv) Monuments. The past decade has seen the government of Strictly Protected Areas are divided into pristine Mongolia shift from owning and running tourism zones, conservation zones and limited use zones operations to setting the legal and policy framework. (Article 8), and providing the appropriate permits As managers of protected areas, several of which 43 are popular destinations, the government is also financing operations (Annex 8). These policies responsible for visitor facilities and management of provide a basis for safeguarding important sites tourists in these areas. for biodiversity conservation from incompatible development. Given the threats to biodiversity Responsibility for formulation and coordination outlined above, and the rapid pace of economic of tourism sector policy lies with the Tourism development currently underway in Mongolia, the full Department, which is also responsible for implementation of these policies is an urgent priority. formulation and update of sector standards and regulations, and for marketing, promotion The availability and provision of information on and development of tourism infrastructure, important sites is an essential requirement in order human resources and tourism products. Prior to to assist the effective implementation of safeguard September 2008, the Tourism Department was part policies. Such information helps to: (i) ensure greater of the former MoRTT. Following a government coherence and clarity about the implementation restructuring, the department is now part of MNET, of safeguard policies between donor agencies and the ministry responsible for managing the protected borrowers; (ii) ensure increased consistency and area network, a key resource attracting tourists to transparency of safeguard policies, and promote Mongolia. This restructuring is expected to improve greater public trust in donor agencies; and (iii) assist coordination between tourism development and with the standardisation and comparability among protected area management. safeguard policies, thereby reducing opportunities for borrowers to "shop around" for donors with The Japan International Cooperation Agency less stringent safeguard requirements (aid recipients (JICA) has also played a key role in the frequently cite differences in donor operational development of tourism in Mongolia. It supported policies and procedures as a major impediment nationwide research to develop a master plan for to the effectiveness of external development national tourism development in Mongolia in 1999. assistance). Based on the research reports, JICA organised a national workshop on Mongolian ecotourism Safeguard commitments by the private sector development in 2002. This workshop developed recommendations concerning the guidelines, Standards set by the International Finance criteria and definition of Mongolian ecotourism Corporation (IFC) have greatly helped to set and its organisation, design, financial bases and standards for other financial institutions. In 2003, safety standards. Ecotourism was viewed as a way a small group of banks, working together with the of improving Mongolia's socio-economic situation. IFC, launched the so-called `Equator Principle'. The A summary of work supported by JICA was aim was to develop a common set of environmental submitted to the Cabinet and the first Tourism Law and social safeguard policies that could be applied of Mongolia was enacted in May 2000. globally and across all development sectors. These principles have subsequently been adopted by 6.4 Safeguard policies nearly 50 financial institutions. Safeguard policies of international development Signatories to the Equator Principles apply the banks IFC's Performance Standard 6 on Biodiversity Conservation and Sustainable Natural Resources The World Bank and other multilateral development Management (see Annex 8) to all investments in banks have introduced environmental safeguard excess of US$10 million. This has greatly expanded policies to ensure that appropriate measures are the safeguard framework for protecting sites of taken to mitigate potential negative impacts of their biodiversity importance. 44 Mining companies in particular are increasingly and by making appropriate contributions to conservation in realising that they need to demonstrate a the regions in which it operates." commitment to biodiversity conservation, as an essential element of their sustainable development Rio Tinto's approach to achieving a Net Positive strategies. This is of particular significance to site Impact on biodiversity comprises a number safeguard in Mongolia, where the mining sector is of steps: (1) identifying the scale and nature of undergoing rapid expansion. biodiversity impacts; (2) avoiding or reducing these impacts wherever possible; (3) putting mitigation The International Council on Mining and Metals measures in place for unavoidable impacts; and (4) (ICMM) was formed in October 2001 to represent ensuring that any residual impacts are compensated leading international mining and metals companies. for through biodiversity offsets, such as support for ICMM's Sustainable Development Framework nearby protected areas. Finally, the company also states its members' commitment to "contribute invests in additional conservation actions, which to conservation of biodiversity and integrated may not necessarily be linked to the mining impacts, approaches to land use planning". Building on this and are not a form of compensation for them. commitment, in 2006, ICMM published its Good Practice Guidance for Mining and Biodiversity (ICMM Other mechanism of relevance to the 2006). conservation of natural habitats These commitments towards biodiversity Whilst this is not the place to cover this in detail, it conservation are being further elaborated by is worth stressing that the safeguarding of important individual ICMM members. Rio Tinto, for example, areas of natural habitat will also be of relevance in a company with substantial mining interests assisting the Mongolia in meeting its commitments in Mongolia, launched an organisation-wide under multilateral environmental agreements. biodiversity strategy at the World Conservation Forum in Bangkok in November 2004. This These agreements include the CBD, the Convention strategy enshrines the principle of Net Positive on Wetlands of International Importance (Ramsar Impact, which is articulated as follows: Convention), the Convention on Migratory Species (Bonn Convention), and the World Heritage "Rio Tinto aims to have a Net Positive Impact on Convention. Mongolia is a Contracting Party to all biodiversity by minimising the negative impacts of its activities of these Conventions. 45 46 7. Environmental impact of development plans 7.1 Analysis of overlap between Mongolia (see Section 4.7). As summarised in Section 5.2, more than 40.3 exploration licences and million ha, equivalent to one quarter of Mongolia's critical natural habitats territory, is covered by exploration licences. Of A this area, 3,874,886 ha overlap with critical natural s a basis for evaluating the impacts of habitats, representing for nearly 10 percent of mineral exploration on critical natural the consolidated set of critical natural habitats in habitats, a GIS analysis was conducted Mongolia (Table 9 and Map 10). These figures mask of the overlap between exploration significant differences among different categories of licences (as of May 2008) and each category of critical natural habitat, with respect to overlap with critical natural habitat defined in Section 4 (i.e. exploration licences. The area of overlap with State nationally protected areas, locally protected areas, SPAs only amounts to 141,014 ha, equivalent to less internationally protected areas, natural sacred sites than 1 percent of the State SPA system, while the and IBAs). This was followed by a GIS analysis area of overlap with internationally protected areas of overlap between exploration licences and the (which mainly lie within State SPAs) is only 72,179 consolidated set of critical natural habitats in ha (2 percent). Table 9: Overlap between exploration licences and critical natural habitats Area within Percentage within Critical natural habitat Total area (ha) exploration licences exploration licences (ha) 1. Nationally protected areas 22,413,136 141,014 0.6 2. Locally protected areas 16,531,505 3,083,781 18.7 3. Internationally protected areas 3,988,448 72,179 1.8 4. Natural sacred sites [47 sites] [2 sites] 4.3 5. Important Bird Areas 8,358,313 724,512 8.7 Consolidated set 40,327,615 3,874,886 9.6 Note: Because of overlap among different categories of critical natural habitat, the sum of the figures for the five separate categories is greater than the figure for the consolidated set of critical natural habitats. 47 The degree of overlap with other categories of 17 of the 2006 Minerals Law (i.e. Special Needs critical natural habitat is substantially greater: Land, including State SPAs and Local SPAs). These 3,083,781 ha of Local SPAs (19 percent of the overlaps fall into two types: marginal overlap (where total), two natural sacred sites (4 percent) and less than 10 percent of the licence overlaps with one 724,512 ha of IBAs (9 percent) are included within or more protected area); and major overlap (where exploration licences. The greater degree of overlap 10 percent or more of the licence overlaps with one with these categories appears to be explained or more protected area). by a combination of two factors. First, natural sacred sites and IBAs are not safeguarded from For around one third of the exploration licences exploration under Mongolian law, except where that overlap with Special Needs Land (296 licences), they are otherwise designated as protected areas. the overlap is marginal (Table 10). For the most Second, most Local SPAs have been designated part, these overlaps appear to be due imprecise relatively recently (more than three quarters after 1 mapping of exploration licence boundaries and/or January 2000; Figure 3), and may, therefore, post- failure to observe Article 17 of the Minerals Law, date exploration licences that overlap with them. which stipulates that exploration area boundaries must deviate from straight lines to avoid overlap Of the 3,572 exploration licences in Mongolia, with Special Needs Land. Visual examination of 878 (or 25 percent) overlap with one or more overlaps suggests that mapping errors introduced critical natural habitats. For most of these during the GIS analysis, due to the imperfect fit of licences (826), the overlap is with areas where different data layers, also account for some of the exploration is explicitly prohibited under Article marginal overlaps. Table 10: Overlap between exploration licences and Special Needs Land Total area of overlap Mean area of overlap Type of overlap Number of licences (ha) (ha) Marginal (<10%) 296 187,074 632 Major (10%) 530 2,989,441 5,640 TOTAL 826 3,176,515 3,846 For the remaining 530 exploration licences that exploration licences predate the Local SPAs they overlap with Special Needs Land, the overlap overlap with. Second, prior to 2008, data on is major (Table 10); in 283 cases, the licence lies Local SPAs were not available in a consolidated wholly (99.5 percent) inside Special Needs format. In particular, boundary polygons for Local Land. All but 29 of the major overlaps between SPAs were not available as a GIS data layer until exploration licences and Special Needs Land the recent compilation exercise undertaken by involve Local SPAs. This can be explained by ALAGC, WWF Mongolia and TNC (ALAGC and two factors. First, more that 90 percent of State WWF Mongolia 2008). Consequently, the main SPAs were designated before 1 January 2004, safeguard against the inclusion of Local SPAs while more than 80 percent of exploration within exploration licences has, to date, been the licences were granted after this date. This requirement by Article 19 of the Minerals Law contrasts with Local SPAs, of which only a little that MRPAM sends licence applications to aimag more than half were designated before 1 January governors for their review and approval, prior 2004. Therefore, in many (but not all) cases, issuing them. 48 7.2 Implications of overlap Direct impacts on biodiversity from exploration activities between exploration licences and critical natural habitats Mining has the potential to affect biodiversity throughout the life cycle of a project, both directly As the previous section shows, nearly 3.2 million and indirectly. The greatest impacts typically occur ha of Mongolia's protected area systems at state during the operational phase, whereas impacts and local levels are included within exploration during the exploration phase are typically much licences. Most of these overlaps are major (i.e. less intense, albeit dispersed across larger areas. representing 10 percent or more of the exploration Nevertheless, mineral exploration, especially in the area in question) and almost all of them involve later stages, can involve significant infrastructure, Local SPAs. There is also significant overlap including exploration camps, exploration shafts, between exploration licences and IBAs, amounting processing plants and access roads. The physical to over 700,000 ha, and reflecting the fact that footprint of this infrastructure can result in direct more than one quarter of the IBA network is either loss of natural habitats, while its construction unprotected or only designated as Local SPAs and operation can result in disturbance to animal (which do not appear to afford effective safeguard species. against mineral exploration, at least not until recently). Direct impacts on biodiversity are not confined to the later stages of mineral exploration. Even The implications of overlaps with exploration during initial prospecting and test drilling activities, licences for Local SPAs and IBAs (and, to a lesser the presence of exploration teams in areas that are extent, other categories of critical natural habitat) often sparsely populated, with a low baseline level are of four main types: of human activity, can place significant additional pressures on fragile ecosystems. These pressures · Direct impacts on biodiversity from may include vehicle damage to ground vegetation. exploration activities; In addition, unless exploration teams are carefully · Indirect impacts on biodiversity arising monitored by their employers, opportunistic from exploration activities; hunting of wildlife is a genuine risk. Siberian · Barriers to protected area establishment; Marmot Marmota sibirica, Black-tailed Gazelle Gazella · Pressure for degazettal. subgutturosa, Mongolian Gazelle Procapra gutturosa and Grey Wolf Canis lupus are among the species most Each of these types of impact is described below. commonly targeted by opportunistic hunters. These In addition, the presence of an exploration licence impacts represent the greatest threat to biodiversity may indicate an elevated risk that a critical natural at sites where conservation management personnel habitat may be impacted by an actual mining are either not present or under resourced. It is operation in future. However, given that a large significant, therefore, that most overlap between majority of mining explorations will never proceed critical natural habitats and exploration licences to an operating mine, and considering that, for involves Local SPAs or IBAs, which typically lack the minority of projects that do proceed, both the effective, on-the-ground conservation management. licence and the direct footprint of the mine will usually occupy only a fraction of the exploration One weakness of Mongolia's exploration permitting licence (the mean mining area in Mongolia is 374 system is that there is no requirement to rehabilitate ha, compared with 11,206 ha for exploration areas), sites following exploration. As a consequence, some this risk is not necessarily as great as might be companies have been known to leave scars on the supposed. landscape from trenching or roadway developments 49 (G. Hancock in litt. 2008). There is a need to revise are not under any form of active conservation and strengthen the enforcement of regulations, so management and no protected area management that companies are required to lodge refundable structures are in place, either formal or community- environmental protection bonds sufficient to based. At present, most Local SPAs remain `paper cover the costs of reclamation, and thereby ensure parks', existing on paper but not established on that sites will be reclaimed even if the company the ground. Moreover, the designation of Local abandons them. SPAs does not appear to have followed consistent biological criteria, hence it is possible that a number Indirect impacts on biodiversity arising from of them do not make major contributions to the exploration activities conservation of biodiversity of global, national or even local importance. Exploration activities may give rise to indirect impacts on biodiversity, which are not necessarily As has been seen, exploration licences already caused by the company conducting the exploration overlap more than 3 million ha of Local SPAs. In but triggered or increased by its presence in an about half of these cases, totalling 1,436,323 ha (or area. Throughout the exploration process, the 47 percent of the total overlap), the designation of presence of teams of geologists and support staff the Local SPA pre-dates that of the exploration in remote areas may create an additional market for licence. In these cases, the inclusion of part wildlife products, particularly wild meat, leading to of a Local SPA within the exploration licence increased levels of hunting by local people. contravenes Article 17 of the 2006 Minerals Law, and the boundary of the exploration area should Another issue is that artisanal mining is anecdotally be adjusted to excise the area that overlaps with linked with commercial mining, as artisanal miners the Local SPA. In the remaining half of cases, specifically target companies' exploration areas either the granting of the exploration licence pre- (T. Naughton verbally 2008). Hence, presence dates the designation of the Local SPA or the date of exploration activities in an area, or even the of designation of the Local SPA is not available (in simple act of granting an exploration licence, some cases, the aimag or soum authorities appear may draw artisanal miners to that area, in search to have purposefully designated a Local SPA on of minerals, particularly alluvial (placer) gold. top of a pre-existing exploration licence). In cases Communications among artisanal miners are very where the exploration licence pre-dates the Local good, which enables them to avoid monitoring by SPA, the protected area designation remains valid government authorities and quickly respond to new but, under Article 14 of the 2006 Minerals Law, opportunities. Discoveries of areas with alluvial the authority whose decision it was to establish the gold mining potential can lead to rapid influxes Local SPA is obligated to compensate the licence of artisanal miners from all over the country (T. holder. Naughton verbally 2008). The risk of exploration triggering an in-rush of artisanal miners is perhaps Direct compensation for licence holders is a greatest when two conditions are met: (i) the target method frequently used in developed countries mineral is gold; and (ii) a discovery is made but to eliminate mining claims inside protected areas not in sufficient quantities to warrant the company (Farrington 2005). However, the lack of public proceeding to an operational mine. funds to cover the high costs of these settlements means that the provision for compensation Barriers to protected area establishment in Article 14 of the Minerals Law will be very difficult to implement in practice, especially In almost all cases, although Local SPAs may be where aimag and soum budgets are concerned. formally designated at aimag or soum level, they Consequently, the presence of pre-existing 50 exploration licences across around 1.6 million ha 7.3 Analysis of overlap between of the Local SPA system presents a considerable barrier to establishing these areas on the ground. operating licences and This problem is compounded by the fact that critical natural habitats an exploration licence creates an obstacle to protected area establishment even when it covers The next stage of the GIS analysis was to look only part of a protected area. Thus the total area at the overlap between mining licences (as of of the Local SPA system adversely affected may May 2008) and critical natural habitats. A similar be greater than the area of overlap alone. approach to that used in Section 7.1 was adopted, with separate analyses being conducted for each An additional but related issue is that proposing category of critical natural habitats, as well as for areas for designation as protected areas could the consolidated set as a whole. encourage pre-emptive applications for exploration licences in these areas (Farrington 2005). This is Of the 400,000 ha of Mongolia's territory that is because of the legal loophole mentioned in Section covered by mining licences, 158,006 ha overlaps 6.2, that Mongolia does not restrict granting with critical natural habitats. This represents less of exploration licences for areas proposed for than half of one percent of the consolidated set of protection. critical natural habitats identified in this study (Table 11 and Map 11). As with exploration licences, these Pressure for degazettal figures mask significant differences among different categories of critical natural habitat, with respect to The final implication of the overlap between overlap with mining licences. Overlap with State exploration licences and protected areas (mainly SPAs is only 891 ha, comprising a 428 ha overlap Local SPAs) is that it could contribute to with Khangain Nuruu National Park (designated in pressure to degazette or reduce areas in order 1996), a 413 ha overlap with Toson Khulstai Nature to permit exploitation. In mid-2002, MRPAM Reserve (designated in 1998) and a handful of very proposed withdrawing protected area status from small overlaps, some of which might be mapping 1.9 million ha across 18 State SPAs, in order to errors. As a proportion of the total area of the State stimulate investments in exploration and mining. SPA system, the overlaps with mining licences are In a counter-proposal, the former MNE proposed insignificant, and strengthen the conclusion that dropping protection status from a somewhat State SPA status has, to date, provided an effective smaller area, amounting to 434,000 ha in 10 safeguard against formal mining activities. State State SPAs. Both proposals were rejected by the SPAs are not the only category for which overlap Mongolian Parliament in late 2002 (World Bank with mining licences is insignificant at present: only 2006). Subsequently, in late 2003, the government 18 ha of internationally protected areas (which may proposed to removing protected status from be a mapping error), 175 ha of IBAs and no natural an even greater area, totalling 3.1 million ha sacred sites overlap with mining areas. in four State SPAs (Small Gobi, Great Gobi and Mongol Daguur Strictly Protected Areas, Compared with the other categories of critical and Onon Balj National Park), to allow formal natural habitat, the degree of overlap with Local mineral exploration and mining to take place. SPAs is several orders of magnitude greater This proposal was also rejected (Farrington 2005, (although still only about 1 percent of the Local World Bank 2006). SPA network). Mining licences cover 157,799 ha within Local SPAs, accounting for 99.9 percent of the total overlap between mining licences and critical natural habitats. As in the case of 51 exploration licences, the greater degree of overlap date the mining licences they overlap with. In with Local SPAs appears to be explained by a particular, Tavan Tolgoi Local SPA in Omnogobi combination of the facts that, until recently, aimag overlaps with 100,609 ha in six coal mining consolidated information on the status and areas. It would appear that this site and some of location of Local SPAs was not available to the the other overlapping Local SPAs were knowingly Department of Geological and Mining Cadastre sited on top of mining areas by the local within MRPAM, and that many Local SPAs post- authorities who designated them. Table 11: Overlap between mining licences and critical natural habitats Area within mining Percentage within Critical natural habitat Total area (ha) licences (ha) mining licences 1. Nationally protected areas 22,413,136 891 0.004 2. Locally protected areas 16,531,505 157,799 0.955 3. Internationally protected areas 3,988,448 18 0.000 4. Natural sacred sites [47 sites] [0 sites] 0.000 5. Important Bird Areas 8,358,313 175 0.002 Consolidated set 40,327,615 158,006 0.392 Note: Because of overlap among different categories of critical natural habitat, the sum of the figures for the five separate categories is greater than the figure for the consolidated set of critical natural habitats. Of the 1,066 mining licences in Mongolia, 307 (or Only 11 percent of the overlaps between mining 29 percent) overlap with one or more critical natural licences and Special Needs Land (33 licences) habitats. For almost all (305) of these licences, the are marginal (Table 12). For the most part, these overlap is with either Local SPAs (most cases) or appear to be genuine overlaps due to failure to State SPAs (a handful of cases). As they are Special observe Article 24 of the Minerals Law, which Needs Land, mining is explicitly prohibited in these stipulates that mining areas cannot overlap with areas under Article 24 of the 2006 Minerals Law. Special Needs Land. For the remaining 272 These overlaps fall into two types: marginal overlap mining licences that overlap with Special Needs (where less than 10 percent of the licence overlaps Land, the overlap is major; in 222 cases, the with one or more protected area); and major licence lies wholly (99.5 percent) inside Special overlap (where 10 percent or more of the licence Needs Land. overlaps with one or more protected area). Table 12: Overlap between mining licences and Special Needs Land Total area of overlap Mean area of overlap Type of overlap Number of licences (ha) (ha) Marginal (<10%) 33 2,328 68 Major (10%) 272 155,523 570 TOTAL 305 157,850 514 52 With regard to the minerals targeted by mining materials, white lead, zinc and fluorspar (Table licences, two minerals (coal and gold) account for 13). In each case, however, the overlaps total more than 90 percent of the total overlap between only one or two thousand hectares across the mining licences and the consolidated set of critical whole country. It is notable that copper and natural habitats (Figure 9). Gold accounts for the wolfram (tungsten), which make up a significant greatest number of individual overlaps with critical proportion of the current area of Mongolia natural habitats (148) but coal accounts for the under mining licences, do not account for any greatest proportion of the overlap by area (117,873 overlaps with critical natural habitats. The case ha). One explanation for this is that coal mining of copper is particularly notable, as it makes areas are, on average, five times bigger than gold the largest contribution after gold and copper mining areas (Table 8), and this is reflected in the to the total mining area in Mongolia (Table 8). relative difference in size of overlaps involving The explanation for this fact is that, with the these metals (a mean of 1,684 ha for coal versus exception of two small areas (in Dornogobi and 183 ha for gold). Khentii aimags), mining areas for copper are relatively large and clustered in two locations The target minerals of other mining licences that (Erdenet in Orkhon aimag and Oyu Tolgoi in overlap significantly with critical natural habitats Omnogobi aimag) that lie outside of critical comprise iron ore, mixed minerals, construction natural habitats. Figure 9: Overlap (ha) between mining licences and critical natural habitats, by target mineral 1323 7152 1747 2795 Coal 27116 Gold Iron Mixed minerals Construction materials Other 117873 53 Table 13: Overlap between mining licences and critical natural habitats, by target mineral No. of licences Area of overlap Area of overlap Mean area of Target mineral overlapping (ha) as % of total overlap (ha) Coal 70 117,873 74.6 1,684 Gold 148 27,116 17.2 183 Iron ore 8 2,795 1.8 349 Mixed minerals 3 1,747 1.1 582 Construction materials 36 1,323 0.8 37 White lead 1 1,280 0.8 1,280 Zinc 4 1,124 0.7 281 Fluorspar 17 1,014 0.6 60 Phosphate 4 745 0.5 186 Uranium 1 264 0.2 264 Molybdenum 2 202 0.1 101 Salt 4 151 0.1 38 Alabaster 1 40 0.0 40 Other 5 2,036 1.3 407 Unknown 3 296 0.2 99 TOTAL 307 158,006 100 515 Series, it was estimated that, of the approximately 7.4 Implications of overlap 300 companies that currently hold mining licences, between mining licences and only around 70 are actively mining. At present, critical natural habitats therefore, although mining is already having significant impacts at specific locations, the main The first point that needs to be made regarding the threat to critical natural habitats is an anticipated implications of overlap between mining licences not a current one. Nonetheless, if appropriate and critical natural habitats is that, although safeguard, mitigation and compensation measures mining licences indicate mining companies that are not taken, there is a significant risk that the have received a licence to mine, only a proportion growth of the mining sector will be accompanied of them are actively mining at present. The by a rapid increase in threats to critical natural remainder are not yet mining for a number of habitats. reasons. Some are still concluding investment agreements with the government of Mongolia. The next point to make is that direct impacts Some have yet to secure the necessary investment of mining operations on critical natural habitats finance. A few are bankrupt. At a recent meeting are typically felt across a smaller area than those on Citizens' Engagement in Mine Licensing, held arising from exploration but are generally greater in in Ulaanbaatar on 28 January 2008, as part of the intensity. Excluding marginal overlaps, the average Responsible Mining and Resource Use Discussion overlap between mining licences and critical natural 54 habitats (570 ha) is only about one tenth the size within critical natural habitats that do not result of that between exploration licences and critical in significant conversion or degradation of these natural habitats (5,640 ha). Within mining areas, habitats sensu OP 4.04 would be consistent with however, the intensity of impacts on biodiversity the aims of the World Bank's safeguard policy on can be expected to be greater than that within natural habitats. exploration areas. The implications of any given overlap between Recent studies (e.g. World Bank 2006) have a mining licence and a critical natural habitat documented a range of direct impacts of mining are determined by three main factors: (i) the operations on natural habitats in Mongolia. Direct environmental performance of the licence-holding impacts associated with mining operations can company; (ii) the nature of the target mineral; and include water pollution (resulting from riverine (iii) the sensitivity of the impacted ecosystem. tailings disposal, Acid Rock Drainage, use of mercury, etc.), air pollution (in the form of dust, It was beyond the scope of this study to analyse emissions from smelters, etc.) and habitat loss the first factor in any detail. However, a mining (resulting from exploration drilling, overburden company's environmental performance is a critical stripping, tailings impoundment, etc.). It is worth factor in determining the degree to which potential noting, however, that direct habitat loss resulting impacts on biodiversity are avoided, minimised or from mining operations may be limited in extent compensated for through restoration/rehabilitation relative to that associated with developments in and/or biodiversity offsets. A recent report by other sectors (such as agriculture and forestry), the World Bank (2006, p1) observed that: "the because of mining's localised primary footprint. environmental record of the Mongolian mining In the Mongolian context, changes to ground and sector is mixed at best. Many ongoing operations surface water (resulting from water off-take for are managed in a sub-optimal way leading to mining, mineral concentration, coal washing, etc.) significant environmental damage and production may represent the most severe direct impacts, losses". Mining operations with limited financial particularly in arid and semi-arid environments, capacity that use outdated technologies not only where vegetation may be dependent upon ground leave large quantities of valuable product behind water and wildlife on localised, sometimes but can also contribute to repeated mining of an ephemeral, surface water sources. In the near area, failure of natural rehabilitation and illegal future, these changes could place increased pressure mining of waste rock piles by artisanal miners (The on ecosystems already stressed by hydrological Asia Foundation 2007a). Despite this generally changes associated with climate change. gloomy picture, the increasing number of foreign mining companies investing in Mongolia provides The third point to make is that certain types of an indication that standards within the industry may mining activity are not necessarily inconsistent improve. Several of these companies are members with the maintenance of the integrity of critical of ICMM, and have therefore signed up to the Good natural habitats, particularly if they are combined Practice Guidance for Mining and Biodiversity (ICMM with measures to strengthen protection of these 2006), which provides a benchmark against which areas from other threats, such as over-grazing the performance of individual companies can be and hunting. Underground mining methods, in assessed. particular, can have minimal surface impacts in area terms, especially if surface infrastructure (such as The implications of particular target metals mineral concentration facilities, tailings management with regard to the direct impacts of mining on facilities and workers camps) is located outside biodiversity are, to some degree, specific to the of the critical natural habitat. Mining activities particular ecological context in which a mine is 55 being developed or operated. For instance, water- · With regard to gold mining, there is a suite intensive mining processes (such as coal washing) of environmental problems associated with have greater implications for desert ecosystems, artisanal mining. Foremost among these where water is scarce, than for boreal forest is the use of mercury, which is ubiquitous ecosystems, where water is generally plentiful. The among artisanal hard-rock gold miners key implications of different target minerals in the in Mongolia and has begun to spread to Mongolian context are outlined below. artisanal alluvial gold miners (World Bank 2006). A recent study by PACT found Gold, copper, molybdenum, iron ore, zinc, that artisanal miners were taking mercury- silver, uranium, lead and "mixed minerals" contaminated tailings and processing them with cyanide (T. Naughton verbally 2008). · The rocks from which these minerals are For commercial gold mining, gravitational extracted have potential for Acid Rock methods are more frequently used to Drainage. Consequently, intensive, well recover alluvial gold. Where cyanide is planned and long-term water treatment used, the cyanide process needs to be (and management is required. A recent study can be) well managed. Depending on the observed that Acid Rock Drainage is quality of gold ore, the quantity of tailings becoming a growing concern in relation to generated can be very significant. tailings management facilities, particularly · Poor standards of atmospheric emissions in Erdenet (World Bank 2006). Large- at smelters associated with copper mines scale mines that discharge acid into major and steel plants associated with iron rivers and lakes could have disastrous ore mines can give rise to acid rain or consequences for Taimen Hucho taimen and forest degradation in areas experiencing other aquatic biodiversity. inversions. · All the above minerals generally require · Regarding uranium, beyond the obvious significant tailing impoundments as a issue of radioactive contamination, result of the metallurgical process: copper processing hard rock uranium ore can give tailings are some of the most extensive rise to large tailing impoundments. primary impacts associated with mining but · Molybdenum is usually associated with others, such as gold, can also be significant. copper mining and is rarely pursued in In other parts of the world, the practice isolation. of riverine tailings disposal, where large · Mining for most of the above minerals quantities of tailings are simply dumped is a water-intensive process, as water is into water courses, has received particularly required for metallurgy, tailings disposal intense criticism. In Mongolia, river flows and transport of concentrates. It has been are unlikely to facilitate this practice in observed that current mining practices many parts of the country. are inefficient and use excessive process · Waste rock dumps for copper and other water, thus overtaxing surface waters and base metals can also be very significant underground supplies. At the Erdenet primary impacts. In Mongolia, waste rock copper mine, for example, 800 m3 of piles from commercial mining are frequently freshwater are needed every hour for the unstable and prone to erosion (World Bank concentrate washing process (World Bank 2006). Heavy rainfall can wash gravel and 2006). Water management and recycling are soil down into valleys, with implications for crucial, therefore, particularly in semi arid/ aquatic and terrestrial biodiversity alike. arid zones. 56 Coal Fluorspar · As explained in Section 7.3, coal mining · Fluorspar is often won as a by-product areas account for the majority of the associated with base metals ores. In overlap with critical natural habitats. Mongolia, however, it is pursued in its own · Acid Rock Drainage can be an issue in right. Fluorspar mines could give rise to older coal mines. However, cyclical coal localised Acid Rock Drainage impacts, if removal and ongoing reclamation can they were significant in volume. reduce sulphide exposure to short periods and ensure that non-oxidised rock gets In general, water-related impacts will be among buried before new oxidation can get a the most significant direct biodiversity impacts hold. Acid Rock Drainage is a particular of mines in most parts of Mongolia. In arid and consideration where mining occurs near semi-arid ecosystems, groundwater extraction drainages. will be a particular concern, as it has the potential · Coal mining has the potential to cause large to impacts on water sources depended on by primary footprints, unless best practice wildlife species, especially in the context of recent reclamation procedures followed. The climate trends (drying). Hydrological resources data collated by this study show that, in will need to be mapped and assessed to determine Mongolia, coal mining areas are larger, on sustainable levels of use. In the north of the average, than mining areas for all other country, where water is more available, pollution minerals, apart from copper. will be a particular concern, and Acid Rock · Coal mines can have very high water Drainage and tailings management will need to be demand for coal washing prior to product addressed carefully. transport. In arid/semi-arid areas, this could place particular stresses on ground water 7.5 Analysis of overlap sources. between mining-associated Phosphates infrastructure and critical natural habitats · Specific biodiversity impacts of phosphate mining include the potential for The third stage of the GIS analysis was to look eutrophication of drainages due to pollution at overlap between projected infrastructure with phosphate. developments and critical natural habitats. There is an intrinsic challenge to looking at the potential Construction materials, granite, chalk and impacts of projected infrastructure developments at alabaster the national scale, because infrastructure plans rarely designate specific areas for installations or definite · These minerals are generally inert, with few alignments for roads and railroads. Most nationwide chemical hazards associated with waste rock plans for infrastructure development in Mongolia and no tailings issues of note. The principal either do not map individual developments at all or biodiversity impacts of these mines relate to only map them at a very broad scale. Consequently, the primary footprint of the mine pit and it was not possible, within the timeframe of associated infrastructure. the study, to map individual infrastructure 57 developments at a scale that would have allowed during this analysis. The rationale for this was that, degree of overlap with critical natural habitats to be because most exploration licences will not proceed evaluated with any degree of confidence. to become operating mines for a variety of reasons (most commonly that they fail to identify an For these reasons, the analysis hereafter focuses economically viable mineral resource), the presence on mining-associated infrastructure (which is of an exploration licence does not, by itself, facilitated by the locations of mining licences being represent a significantly increased risk that mining- known with a considerable degree of confidence). associated infrastructure will be built through or This category of infrastructure development close to a critical natural habitat. is considered to have the greatest potential for negative impacts on critical natural habitats, due to As mentioned in Section 7.3, only 158,006 ha of the the projected rapid growth of the mining sector, the consolidated set of critical natural habitats is located need for infrastructure to service new mines and within mining licences, most of which is Local the frequent location of mines in areas with a low SPAs. However, a further 6,521,266 ha lies within baseline human footprint. 20 km of one or more mining licence, bringing to 6,679,272 ha the total area considered to be at high As mentioned in Section 5.3, although mining- risk from being impacted by mining-associated associated infrastructure is expected to account for infrastructure (Table 14 and Map 12). This is a large proportion of infrastructure developments equivalent to 16 percent of the consolidated set of with significant biodiversity implications over critical natural habitats in Mongolia. In addition, 11 the next decade, and while a number of specific natural sacred sites are located within 20 km of one needs have already been identified, final decisions or more mining licence. have yet to be made regarding the siting of key pieces of infrastructure (roads, railroads, etc.). The analysis presented in Table 14 highlights Consequently, an indirect approach was adopted the fact that, while some categories of critical to assess potential for overlap between mining- natural habitat (namely State SPAs, internationally associated infrastructure and critical natural habitats. protected areas and IBAs) are unlikely to experience Specifically, critical natural habitats were assessed significant direct impacts from mine development, as having a high risk of being impacted (directly a significant proportion of sites in each category are or indirectly) by mining-associated infrastructure if at high risk of being impacted by mining-associated they: (i) overlap with one or more mining licences; infrastructure. It must be emphasised that a risk of or (ii) do not overlap with any mining licence but impact is not the same thing as an actual impact, are located within 20 km of one or more mining because a risk can be avoided (through careful licences4. siting/routing of a piece of infrastructure) or minimised (through the introduction of appropriate Critical natural habitats that overlap with or lie mitigation measures). close to exploration licences were not identified 4 20 km was chosen as the threshold because the probability of an average critical natural habitat (i.e. a site 474 km2 in area; which can be mapped as a circle 25 km in diameter) being intersected by a single piece of linear infrastructure originating in a random direction from a mine 20 km away (i.e. a line passing at a random point through a circle 126 km in circumference) is 20 percent. 58 Table 14: Critical natural habitats at high risk of being impacted by mining-associated infrastructure Area outside but Total area at Area within mining Critical natural habitat within 20 km of high risk of being licences (ha) mining licences (ha) impacted (ha) 1. Nationally protected areas 891 1,479,779 1,480,670 2. Locally protected areas 157,799 4,731,877 4,889,676 3. Internationally protected areas 18 295,306 295,324 4. Natural sacred sites [0 sites] [11 sites] [11 sites] 5. Important Bird Areas 175 874,330 874,505 Consolidated set 158,006 6,521,266 6,679,272 Note: Because of overlap among different categories of critical natural habitat, the sum of the figures for the five separate categories is greater than the figure for the consolidated set of critical natural habitats. 7.6 Implications of overlap where large, unenclosed, sparsely population spaces are the norm, inappropriately designed and sited between mining-associated linear structures can have the effect of fragmenting infrastructure and critical wildlife habitat. For example, Ito et al. (2005) natural habitats examined the potential influence of the international railroad on Mongolian Gazelle Procapra gutturosa In the Mongolian context, the development of migration, using satellite tracking. They found the associated infrastructure may be the biggest single tracked gazelles never crossed the railroad, despite source of pressure on critical natural habitats making movements along it in winter and the arising from growth in the mining sector. If we presence of better quality habitat on the other side. take the example of the Tavan Tolgoi deposit in They concluded that it is likely that the railroad Omnogobi aimag: it contains over 5 billion tonnes has a barrier effect on gazelle migration because it of coking and thermal coal but it is situated over splits their habitat. It is likely that the barbed wire 400 km from the nearest railway line. Exploitation fencing along the railroad, constructed to avoid of deposits such as Tavan Tolgoi will require major collisions with domestic livestock, is the major infrastructure developments in previously very reason why the railroad acts as a barrier to wildlife inaccessible areas. The potential for both direct and movement. Linear infrastructure can also increases indirect impacts are great. levels of disturbance to wildlife species, leading to reduced breeding success or increased mortality. Where it overlaps with critical natural habitats, For instance, the development of powerlines has linear infrastructure (roads, railroads, powerlines, been identified as a particular threat to the globally etc.) has the potential to cause direct habitat loss. threatened Houbara Bustard Chlamydotis undulata, For example, the National Land Management because of the disturbance they can cause to Master Plan identifies four aimags where proposed breeding birds. Direct mortality through collision is railroad developments will intersect with protected also an impact that can arise from the construction areas: 7.5 km in Bayan-Olgii; 25 km in Khovd; of infrastructure. Collision deaths with powerlines 0.6 km in Bulgan; and 125.8 km in Omnogobi and windfarms have been documented for a (ALAGC 2003). Linear infrastructure, particularly number of species of soaring birds in Mongolia, roads and railways, can also act as a barrier to including cranes Grus spp., raptors and Great wildlife movements. In a country such as Mongolia, Bustard Otis tarda. 59 Habitat loss, habitat fragmentation and disturbance the mine is predicted to employ a maximum of to wildlife populations notwithstanding, over the 1,850 full-time-equivalent employees (IMMI 2007). longer term, it is likely that the most significant According to economic studies conducted by the impacts on Mongolia's biodiversity arising from the Mongolian School of Mines in 2006, for every job construction of mining-associated infrastructure created at Oyu Tolgoi, four additional jobs will will be indirect ones. Development of infrastructure be created in related industries (IMMI 2007). On can facilitate access to previously remote areas top of this, the aimag and soum administrations and enable uncontrolled regional development. are expected to retain and reinvest a significant Such trends can place increased pressure on plant proportion of mining revenues, drawing people and animal populations (for food, fuelwood, etc.), into the area in search of work with contractors and resulting in habitat degradation and/or species loss. sub-contractors providing goods and services to the mine and to benefit from improved public services. The issue of mining associated infrastructure New urban developments on this scale have the facilitating human access to previously remote potential to entirely transform local economies, areas is particularly significant in Mongolia, which and place new and unpredictable pressures on has recently witnessed a rapid escalation in hunting natural habitats and wildlife populations, including and trade of wildlife, following the re-opening of increased groundwater extraction, intensified the border with China, with its enormous capacity hunting pressure and increased fuelwood use. to absorb resources. Rapid declines have already been observed in economically important wildlife 7.7 Individual critical natural species, such as Mongolian Saiga Antelope Saiga tatarica mongolica, Red Deer Cervus elaphus, Argali Ovis habitats where impact from ammon, Siberian Marmot Marmota sibirica and Saker exploration and mining is Falcon Falco cherrug (Wingard and Zahler 2006). expected to be significant There is near unanimous agreement among hunters, traders and biologists that continued wildlife trade Nationally protected areas at the current volumes is unsustainable (Wingard and Zahler 2006). Construction of transport Thirty eight State SPAs overlap with exploration infrastructure linking new mines in Mongolia to licences and/or mining licences (Annex 9). markets in China is a particular cause for concern, However, only in the case of three protected areas given the volume of cross-border wildlife trade. does the combined overlap account for more With their existing enforcement capacity, the than 10 percent of the site (i.e. constitutes a major Mongolian authorities are already unable to overlap): Ikh Gazriin Chuluu and Nagalkhan effectively control trade through the existing border Nature Reserves; and Suikhent Uul Monument trade points, most of which are remote and severely (Table 15). In the case of Nagalkhan and Suikhent understaffed (Wingard and Zahler 2006). Uul, the protected area significantly pre-dates the exploration licences that overlap with it. In the A final indirect impact of mining development case of Ikh Gazriin Chuluu, however, the protected worthy of mention here is creation of new mining area (designated in 2003) pre-dates one of the settlements and expansion of existing ones, licences it overlaps with (issued in January 2007 and driven by economic growth in mining regions and overlapping by 1,067 ha) but post-dates a second facilitated by the development or improvement licence (issued in February 1998 and overlapping of infrastructure. To cite one example, the Oyu by 20,233 ha). These three cases are illustrated by Tolgoi project in Omnogobi aimag is expected to Maps 15-17. Almost all of the overlaps with State catalyse the development of a new mining town SPAs involve exploration licences. Six State SPAs to the north-east of the mine. When operational, do overlap with mining licences but only two of 60 these overlaps are larger than 50 ha. The total area mining licences is 141,905 ha, equivalent to less of overlap between State SPAs and exploration and than 1 percent of the State SPA network. Table 15: Nationally protected areas with major overlaps with exploration licences and/or mining licences Mining Total Total area Exploration Rank Site name overlap overlap % overlap (ha) overlap (ha) (ha) (ha) 1 Ikh Gazriin Chuluu 34,096 21,301 0 21,301 62.5 2 Nagalkhan 4,806 1,455 0 1,455 30.3 3 Suikhent Uul 7,717 2,112 0 2,112 27.4 With regard to potential impacts arising from 20 km of one or more mining areas. Measured by mining-associated infrastructure, 35 State SPAs are percentage overlap, 25 State SPAs have more than located within 20 km of mining areas, in whole or 10 percent of their area within 20 km of mining in part. In terms of area, 1,480,705 ha, or nearly 7 licences, of which eight have more than half of their percent of the State SPA network, is located within area (Table 16). Table 16: Nationally protected areas with more than half of their area within 20 km of mining licences Area in 20 km of Rank Site name Total area (ha) % overlap mining licence (ha) 1 Develiin Aral 10,022 10,022 100.0 2 Bogd Khan Uul 41,383 41,383 100.0 3 Nagalkhan 4,806 4,806 100.0 4 Bulgan River 11,892 11,892 100.0 5 Khar Yamaat 51,274 40,653 79.3 6 Turgen 133,810 84,183 62.9 7 Ikh Nartiin Chuluu 70,088 42,287 60.3 8 Siilkhem "B" 76,647 46,035 60.1 Locally protected areas greater degree of overlap than that of any other category of critical natural habitat. A total of 357 Local SPAs overlap with exploration licences and/or mining licences. Of these sites, Measured by percentage overlap, 277 Local SPAs 341 overlap with one or more exploration licences have major overlap with exploration licences and/ and 75 overlap with one or more mining licences. or mining licences (i.e. combined overlaps that total The total area of overlap between Local SPAs and at least 10 percent of the site). For 187 Local SPAs, exploration and mining licences is 3,241,579 ha, licences occupy more than half of the site, while equivalent to nearly 20 percent of the State SPA the whole site is occupied in 100 cases. In terms of network. As discussed earlier, this is a significantly area, 16 Local SPAs have overlaps with exploration 61 and/or mining licences greater than 50,000 ha in percent of the total overlap between Local SPAs area (Table 17). These Local SPAs account for 45 and exploration and mining licences. Table 17: Locally protected areas with more than 50,000 ha within exploration licences and/or mining licences Mining Total Total area Exploration % Rank Site name Aimag overlap overlap (ha) overlap (ha) overlap (ha) (ha) 1 [Near-border area] Omnogobi 863,271 179,035 0 179,035 20.7 2 Tavan Tolgoi Omnogobi 184,466 66,029 100,609 166,638 90.3 3 Ikh Chingis Uul Gobi Altai 217,874 151,223 45 151,269 69.4 4 Khangain Bus Bayankhongor 989,126 120,469 4,069 124,538 12.6 5 Nariin Sukhait Omnogobi 117,393 102,385 10,547 112,932 96.2 6 Buduun Uul Sukhbaatar 87,011 87,009 0 87,009 100.0 7 Zotol Khan Uul area Sukhbaatar 530,942 81,568 283 81,851 15.4 8 [Ulaan Uul soum] Khovsgol 404,781 76,554 0 76,554 18.9 [Choibalsan, 9 Dornod 86,685 71,951 91 72,042 83.1 Gurvanzagal soums] 10 Khoyor melkhiit Dornod 115,941 63,819 0 63,819 55.0 11 Galiin Gol Dornod 70,638 62,280 0 62,280 88.2 12 Gobi Gurvan Saikhan Omnogobi 66,126 61,769 0 61,769 93.4 [Near-border area in 13 Omnogobi 157,028 57,973 144 58,118 37.0 Khanbogd soum] 14 Erdenekhairkhan Omnogobi 129,112 55,410 0 55,410 42.9 West of Sukhbaatar 15 Sukhbaatar 71,380 53,530 39 53,569 75.0 soum 16 Baruun Ol Dornod 64,407 51,872 97 51,969 80.7 Note: Square brackets denote that the site's name is not known, so a description of its location is given. It is worth drawing particular attention to Tavan The overlaps between Local SPAs and Tolgoi Local SPA in Omnogobi aimag, which exploration and mining licences are not was designated by the aimag government on 23 distributed evenly throughout Mongolia but, December 2003. Tavan Tolgoi Local SPA overlaps rather, are concentrated in certain aimags. Eighty with six coal mining licences. These overlaps total percent of the overlapping area is concentrated 100,609 ha and account for two-thirds of the total in just five aimags, each of which contains over area of overlap between mining licences and critical 300,000 ha of overlap: Dornod; Omnogobi; natural habitats in Mongolia. Bearing in mind the Sukhbaatar; Gobi-Altai; and Bayankhongor high profile of the Tavan Tolgoi coal mining area, (Table 18; Maps 13-14). Given that these include it would appear that Tavan Tolgoi Local SPA was the four aimags with the largest area of Local deliberately and knowingly sited on top of the SPA, this result is not entirely surprising. What existing mining areas by the aimag government. is surprising, perhaps, is the inclusion of Gobi- The case of Tavan Tolgoi Local SPA is illustrated Altai, which only has around 760,000 ha of on Map 18. Local SPAs, almost half of which overlap with 62 exploration and mining licences. These five overlaps between mining and exploration licences aimags should be the focus of efforts to resolve and protected areas. Table 18: Distribution of overlaps between Local SPAs and exploration/mining licences by aimag Area of Local SPAs No. of overlapping Aimag Total overlap (ha) % overlap (ha) Local SPAs Arkhangai 552,375 12 93,991 17.0 Bayankhongor 2,817,750 18 310,528 11.0 Bayan-Olgii 126,632 3 31,839 25.1 Bulgan 49,173 2 20,218 41.1 Darkhan Uul 56,830 7 11,020 19.4 Dornod 3,211,381 40 813,868 25.3 Dornogobi 49,870 71 28,117 56.4 Dundgobi 470,785 34 77,350 16.4 Gobi-Altai 759,360 14 326,609 43.0 Gobi-Sumber 0 0 0 n/a Khentii 680,742 8 25,476 3.7 Khovd 257,499 5 21,057 8.2 Khovsgol 530,492 8 84,084 15.9 Omnogobi 2,149,805 13 699,412 32.5 Orkhon 3,544 1 2 0.0 Ovorkhangai 104,888 4 2,178 2.1 Selenge 277,222 22 66,310 23.9 Sukhbaatar 2,461,656 35 430,866 17.5 Tov 1,413,616 39 90,792 6.4 Ulaanbaatar 41,054 8 13,545 33.0 Uvs 379,686 8 80,978 21.3 Zavkhan 137,145 5 13,341 9.7 TOTAL 16,531,505 357 3,241,579 19.6 IBAs Over two thirds of the overlap is accounted for by a single IBA, Galba Gobi, which overlaps with 26 Twenty-nine individual IBAs overlap with exploration licences, totalling 497,627 ha. Measured exploration and/or mining licences (Annex 10). by percentage overlap, 11 IBAs have major overlap In 28 cases, the overlap involves exploration with exploration licences and/or mining licences licences, while mining licences are involved in just (i.e. combined overlaps that total at least 10 percent four cases, none of which is greater than 138 ha. of the site). For five of these IBAs, more than half The total area of overlap is 724,687 ha, equivalent of the site is included within licences (Table 19). to nearly 9 percent of Mongolia's IBA network. These overlaps are illustrated in Maps 19-23. 63 Table 19: IBAs with major overlaps with exploration licences and/or mining licences Mining Total Total area Exploration Rank Site name overlap overlap % overlap (ha) overlap (ha) (ha) (ha) 1 Dashinchilen Bayan Lake 1,598 1,598 0 1,598 100.0 2 Tashgain Tavan Lakes 53,304 53,304 0 53,304 100.0 3 Tsengel Khairkhan Mt. 52,726 49,663 0 49,663 94.2 4 Shaazan Lake 5,485 3,752 0 3,752 68.4 5 Galba Gobi 828,328 497,627 0 497,627 60.1 6 Uvsiin Khar Us Lake 13,601 4,239 0 4,239 31.2 7 Oigon Lake 20,189 4,758 0 4,758 23.6 8 Bulgan River 32,700 7,212 0 7,212 22.1 9 Tolbo Lake 16,334 2,761 0 2,761 16.9 10 Ulaagchinii Khar Lake 13,439 1,584 0 1,584 11.8 11 Borzon Gobi 399,467 43,487 0 43,487 10.9 With regard to IBAs at high risk of impacts from area (Table 20). Interestingly, several IBAs that mining associated infrastructure, 31 individual do not overlap with any licence were assessed as IBAs are located within 20 km of mining areas, being at high risk of impact from mining-associated in whole or in part. In terms of area, 874,505 ha, infrastructure, including Erkhel Lake, Teshigiin or more than 10 percent of the IBA network, is Olon Lakes and Khar Yamaat Nature Reserve. located within 20 km of mining areas. Measured This highlights the need for mining companies to by percentage overlap, 24 IBAs have more than assess and manage potential impacts on critical 10 percent of their area within 20 km of mining natural habitats in the wider landscapes beyond the licences, of which 10 have more than half of their boundaries of their mining areas. Table 20: IBAs with more than half of their area within 20 km of mining licences Area in 20 km of Rank Site name Total area (ha) % overlap mining licence (ha) 1 Dashinchilen Bayan Lake 1,598 1,598 100.0 2 Shaazan Lake 5,485 5,485 100.0 3 Maikhant Mountain 42,015 42,015 100.0 4 Erkhel Lake 3,537 3,355 94.9 5 Teshigiin Olon Lakes 5,774 4,947 85.7 6 Khar Yamaat Nature Reserve 51,404 41,521 80.8 7 Delta of Orkhon and Selenge Rivers 21,405 15,758 73.6 8 Uvsiin Khar Us Lake 13,601 8,773 64.5 9 Turgen Tsagaan, Zegst, Tuulaitiyn Bur 35,282 22,023 62.4 10 Ikh Nartiin Chuluu Nature Reserve 66,601 40,709 61.1 64 7.8 Analysis of overlap between SPAs where they are located, are given in Annex 11. The State SPAs with the greatest number of tourism development plans tourist camps are Gorkhi-Terelj (with 38), Bogd and critical natural habitats Khan Uul (with 13), Khovsgol Lake (with 11) and Khangain Nuruu (with nine) (Table 21). The fact GIS analysis of overlap between tourist camps that Bogd Khan Uul and Gorkhi-Terelj contain and critical natural habitats the most camps is explained by their proximity to Ulaanbaatar: the vast majority to leisure visitors to From the sample 140 tourist camps covered by the Mongolia by rail stay in or near the capital for three GIS analysis, 84 are located in or adjacent to 10 or four nights, in order to meet connecting trains State SPAs. The names of the camps, and the State to/from China and Russia (J. Wigsten in litt. 2008). Table 21: The overlap between tourist camps and State SPAs State SPA area Density (camps per Name of State SPA Category No. of camps (ha) 100,000 ha) Gorkhi - Terelj NP 38 292,010 13.0 Bogd Khan Uul SPA 13 41,383 31.4 Khovsgol Lake NP 11 848,828 1.3 Khangain Nuruu NP 9 889,986 1.0 Orkhonii Khundii NP 4 92,955 4.3 Khogno Tarna NP 3 78,798 3.8 Khorgo Trekhiin Tsagaan Nuur NP 3 85,007 3.5 Moltsog Els NP 1 488 204.8 Ugtam NR 1 42,595 2.3 Khyargas Lake NP 1 374,746 0.3 Total 84 From the sample 140 tourist camps covered by (two camps), Gobi Gurvan Saikhan (three camps) the GIS analysis, an additional 17 are located in or and Ogii Lake and surrounding area (four camps). adjacent to 11 Local SPAs (Table 22), with more The names of the camps, and the Local SPAs where than one camp at three Local SPAs: Kharkhorin they are located. are given in Annex 12. 65 Table 22: The overlap between tourist camps and Local SPAs Density (camps per Name of Local SPA No. of camps Local SPA area (ha) 100,000 ha) Ogii Lake and surrounding area 4 3,649 109.6 Gobi Gurvan Saikhan 3 66,126 4.5 Kharkhorin 2 45,146 4.4 Moltsog Els 1 1,133 88.3 Bulgan Khangai Uul 1 2,740 36.5 Bayanzag 1 3,404 29.4 Ongiin Khiid 1 6,677 15.0 Baga Gazriin Chuluu 1 11,354 8.8 Nariin Khamar 1 27,391 3.7 Baruun Ol 1 64,407 1.6 Tuin Gol River Valley 1 150,694 0.7 Total 17 From the sample 140 tourist camps covered by the to those sites mentioned above are Terkhiin Tsagaan GIS analysis, 65 are located in or adjacent to eight Lake, Shaazan Lake and Airag Lake. The names of IBAs (Table 23). Additional Critical Natural Habitats the camps are given in Annex 13. Table 23: The overlap between tourist camps and Important Bird Areas Density (camps per IBA name No. of camps IBA area (ha) 100,000 ha) Gorkhi-Terelj National Park 39 293,937 13.3 Khovsgol Lake 10 380,212 2.6 Khangain Nuruu National Park 9 897,840 1.0 Ogii Lake 2 10,189 19.6 Terkhiin Tsagaan Lake 2 21,072 9.5 Shaazan Lake 1 5,485 18.2 Ugtam Nature Reserve 1 46,162 2.2 Airag Lake 1 73,348 1.4 Total 65 It is often the case that, when several tourist camps been effectively converted into a recreation area are situated at a critical natural habitat, they are (J. Wigsten in litt. 2008). Even where there are few concentrated within a particular part of the site. tourist camps at a site, they may be inappropriately For example, the entire south-western shore of sited. For instance, at Bayanzag (Flaming Cliffs) Khovsgol Lake has been developed with tourist Local SPA, ger camps have been allowed to be camps, while Gorkhi-Terelj has so many camps in built right below the famous cliffs (J. Wigsten close proximity that part of the national park has in litt. 2008). Such adverse developments can be 66 attributed to a lack of strategic tourism planning spread around the country (J. Wigsten in litt. 2008). and poor coordination with conservation objectives For instance, in most of the western aimags and all (J. Wigsten in litt. 2008). of the eastern aimags, it is felt that there will not be any major tourism development for years to come A practitioners' perspective (Wigsten 2005). According to (Wigsten 2005), the four main clusters It is believed that protected area authorities of Mongolian tourism development are: allow tourist camps to be developed within their boundaries because it generates revenue for the 1. Kharkhorin (Ovorkhangai) and Khogno protected area system. One exception is at Gobi Khan Uul (Bulgan), which are popular Gurvan Saikhan, where tourist camps are restricted due to the remains of the former capital to the fringes of the national park, presumably of the Mongol Empire and the Erdenezuu because of the intervention of an international Monastery; donor-funded protected area management project (J. Wigsten in litt. 2008). 2. Gorkhi-Terelj National Park (Tov), an area of mountain, forest and grassland, which It is important to view tourism development as serves as a major picnic area for Ulaanbaatar bringing not only threats to critical natural habitats residents due to its proximity to the capital; but also opportunities for sustainable development. Certain kinds of tourism development, such as 3. Gobi Gurvan Saikhan National Park low-impact ger camps, horse-riding, trekking, (Omnogobi), where tourism is highly birdwatching and catch-and-release fly fishing, concentrated at: Yoliin Am, a gorge in the are fully compatible with the conservation of Gurvan Saikhan Mountains; Bayanzag, Mongolia's natural heritage. At the same time, with its 'Flaming Cliffs', where the first ever these kinds of development can help to diversify fossilised dinosaur eggs were discovered local economies and provide employment for in the 1920s; and Hongoriin Els, a 180 km a young, seasonal workforce that can develop long sand dune; their communication and language skills. There is potential to develop a tourism industry in Mongolia 4. The south-western shore of Khovsgol Lake with a diverse range of markets and products and the village of Hatgal, at 1,635 m above that limits visitor numbers and strikes a balance sea level near the Russian border, which is between sustainability and profitability. Many of the only recent major tourism destination the destinations with potential for such forms of to have emerged over the last 10 years. tourism development overlap with protected areas and other critical natural habitats (J. Wigsten in litt. These represent centres where there has been 2008). rapid tourism development, with many seasonal ger camps and guest houses providing for organised WWF Mongolia's perspective in relation to groups as well as independent travellers. All of protected areas these sites, except possibly Gobi Gurvan Saikhan, have experienced over-development, and have WWF have recently undertaken a review of the reached saturation point (Wigsten 2005). Over- management effectiveness of the Mongolian concentration of tourist camps leads to excessive protected area system (Batsukh and Belokurov competition, eroding local yields. Another problem 2005). This used WWF's Rapid Assessment and is that the economic benefits from tourism are Prioritisation of Protected Area Management disproportionately concentrated in a few areas, not (RAPPAM) methodology (Ervin 2003). The review 67 covered 31 protected areas (12 Strictly Protected and are placing pressure on six of them (Figure Areas and 19 National Parks). According to this 10). Tourism activities also threaten 18 of the review, tourism activities threaten eight of the 19 National Parks covered by the study, placing 12 Strictly Protected Areas covered by the study, pressure on 12 of them (Figure 11). Figure 10: Occurrence of pressures and threats in Strictly Protected Areas using WWF's RAPPAM methodology Occurrence of pressure Occurrence of threat 12 10 8 6 4 2 0 68 Figure 11: Occurrence of pressures and threats in National Parks using WWF's RAPPAM methodology Occurrence of pressure Occurrence of threat 20 18 16 14 12 10 8 6 4 2 0 Tourist camp operators' perspectives Lake, Arkhangai aimag; Gorkhi-Terelj National Park, Tov aimag; Yoliin Am, Omnogobi aimag; Based on the questionnaire circulated at the Amarbayasgalant Monastery, Selenge aimag; and International Travel Mart (see Section 5.1), tourist Kharkhorin, Ovorkhangai aimag. camp operators identified the following sites as being under particular pressure due to the number Tourist camp operators identified the main of foreign visitors: Gorkhi-Terelj National Park, impacts of tourist camps on the environment as Tov aimag; Ogii Lake, Tsenkher Hot Spring garbage disposal, land degradation, unregulated and Khorgo-Terkhiin Tsagaan Lake, Arkhangai road development and water pollution. They aimag; Khatgal, Khovsgol Lake and Jatgalant Hot also identified the impact of adjacent mining, Spring Area, Khovsgol aimag; Khongoriin Gol, uncontrolled camping, and the unsustainable use Khongoriin Els and Yoliin Am, Omnogobi aimag; of wood and other natural resources as being of Elsen Tasarkhai and Kharkhorin, Ovorkhangai concern. aimag; and Khogno Khan Mountain, Bulgan aimag. Tourist camp operators were asked to identify the Tourist camp operators identified the following measures that they currently take and planned to sites as being under particular pressure due to take to reduce their impact on the environment. the number of domestic visitors: Tsenkher Hot The responses to this question are summarised in Spring, Taikhar Chuluu and Terkhiin Tsagaan Figure 12. 69 Figure 12: Comparison of current and planned activities to mitigate impacts from tourist camps on the environment Limit number of tourists Limit number of tourists present actions p Pledge to use less energy Pledge to use less energy future plans Provide training Provide training for... Pl d to use l lesswater Pledge to useless water Pledge Road signs Road signs Water purificationsystem ate pu cat o system Water purification syste Increase green investment Increase green investment Renewable energy... Renewable energy Plant tress Plant trees Clean litters Cleaningup litter 0 20 40 60 80 100 120 The tourist camp operators were also asked to government and by themselves. Their responses are recommended actions that should be taken by summarised in Tables 24 and 25. Table 24: Government actions recommended by tourist camp operators Type of action Count % Strengthen control and standardisation of tourist camps 18 23.7 Strengthen environmental protection 18 23.7 Provide financial support for environmentally friendly technologies 16 21.1 Improve infrastructure 12 15.8 Improve the management and control of mines 6 7.9 Improve foreign cooperation in tourism sector 4 5.3 Improve capacity 1 1.3 Support cooperation between tourist camps 1 1.3 70 Table 25: Tourist camps actions recommended by the tourist camp operators Type of action Count % Landscaping and habitat improvement 16 28.1 Wise and sustainable use of resources 11 19.3 Environmental promotion 9 15.8 Reduce littering 7 12.3 Improve environmental control 5 8.8 Wildlife protection 4 7.0 Prevent natural disaster 2 3.5 Promote green investment 2 3.5 Designate protection 1 1.8 Overview of the impact of tourism on Critical disturbance and allow access to breeding bird Natural Habitats colonies on offshore islands. The peak visitor period coincides with the breeding and post- From a nature conservation point of view, and breeding season when birds are on eggs, have based on information gathered from the 2007 vulnerable young and congregate to moult (when IBA workshop, the tourist camp questionnaire ducks and geese are flightless). Disturbance can and a literature review, the following threats lead to increased mortality (e.g. from increased are highlighted. These are considered to be predation). Mongolian wetlands are internationally geographically localised but having a significant important for a number of globally threatened bird impact in some cases. At present, the threat species, including Hooded Crane Grus monacha, posed by tourism development appears to be White-naped Crane G. vipio and Swan Goose Anser more localised than that posed by mining and cygnoides, which are highly sensitive to disturbance. infrastructure development, although severe at particular sites. Furthermore, with commitment and Similar concerns have been expressed about best practice, there is the opportunity for tourism disturbance to (and sometime chasing of) larger development to proceed in a way that is entirely mammals, such as Mongolian Wild Ass Equus compatible with the conservation of natural values. hemionus, Argali Ovis ammon and Mongolian Saiga Indeed, the success of Mongolian tourism depends Antelope Saiga tatarica mongolica, especially in open on this: it is the natural environment and its steppe and desert landscapes, where the use of off- interrelationship with human culture and economic road vehicles is of concern in some areas. activity that is the country's principal tourist attraction. Disturbance can be easily addressed through the zoning of protected areas, restricted access to Disturbance to wildlife sensitive sites, and provision of location-specific guidance to park managers, tour operators and A number of tourist camps are situated close to visitors. wetlands of international importance, for example Terhiin Tsagaan Nuur, with unrestricted tourist Degradation of grassland steppe and deserts access to the lake shore and to wetland habitats of high conservation value (K. Schleicher pers. Grassland steppe and desert habitats are extremely comm.). Boating and fishing activities can increase vulnerable to degradation from vehicular access. 71 The lack of sealed roads, Mongolia's often flat and unpleasant, and something that visitors notice terrain and a constitutional right of access to the and are disturbed by. Hence, it can start to affect countryside leave protected areas open to off-road a site's reputation. The impact on nature is usually use by tourist vehicles. Indeed, this access to the localised, however. countryside, and the sense of off-road adventure it can provide, is part of the attraction for many Issues related to waste water and sewage disposal visitors. When dirt roads become impassable, are best addressed through tourism regulations, new routes are opened up, and the `road' can end sharing and promoting best practice, and impact up hundreds of metres wide, and meandering assessment and mitigation during the planning of in many directions. This can lead to destruction new tourist camps. of vegetation, erosion and unsightly scaring of the landscape, although the impact on wildlife Firewood collection populations is unlikely to be significant. The collection of wood for cooking and heating Where tour operators bring with them their own is having a negative impact at some sites (e.g. animals (for recreational riding, as draught animals, Gorkhi-Terelj National Park). At other sites, there or for meat and milk), this can lead to an increase in is ample dead wood available, and the number of summer grazing pressure around camps. Similarly visitors is so low that this issue is not of undue the `permanence' of ger camps can lead to an concern. Where this issue is of concern, tour increase in grazing pressure, and result in grassland operators need to bring in fuel supplies, and use degradation and desertification. of firewood needs to be regulated. As tourist numbers increase, this may become a more serious The impact of vehicular access can best be issue in remote areas. addressed through park planning, restricting access, maintenance and judicious development of sealed Depletion of water resources roads, and provision of guidance to visitors and tour operators. An increase in grazing pressure is best Water, especially freshwater, is one of the most addressed through promoting greater dependence critical natural resources, and is extremely limited in on locally owned livestock, and, in places, ger camps drier regions of the country. The tourism industry may need to be relocated. generally overuses water resources at hotels and camps, through personal use of water by tourists. Pollution of lakes and rivers This can result in water shortages and degradation of water supplies, as well as generating a greater The location of tourist camps close to lakes and volume of waste water. rivers frequently results in localised pollution. The prime concern is sewage and waste water from Solid waste tourist facilities, and use of soap and shampoo by tourists washing outdoors. This is frequently cited In areas with high concentrations of tourist as being of concern at protected areas that receive activities, waste disposal is a serious problem. As visitors. The washing of tourist vehicles is also with pollution, visible solid waste pollution can of concern. Swimming can also be regarded as be unsightly: despoiling rivers, scenic areas and pollution by local communities. tourist camps, and significantly undermining the attractiveness of a location. In remote areas, where Pollution can lead to changes in salinity and solid waste collection and disposal facilities are wetland eutrophication, and can threaten the unavailable, tourists often leave behind their garbage health of humans and animals. It is also unsightly and unwanted equipment. Attempts to burn solid 72 waste, particularly plastics, are often only partly birds). Nevertheless, the aesthetic pollution it successful, and leave un-burnt material behind sometimes causes undermines the tourist attraction, which is then wind-blown across the landscape. and it is in the long term interests of the tourism It is difficult to argue that this has any impact on industry to proceed with caution and tradition nature, and some species may even benefit during in the design and building of infrastructure. This the winter months from poor refuse disposal. requires guidelines, building regulations, inspection Nevertheless it undermines the attraction of sites and enforcement. for visitors, and thus the justification for protecting them, and urgently needs to be addressed at many Protected area management issues sites in Mongolia. From a nature conservation perspective, and taking This issue is best addressed through enforceable into account information gathered from the 2007 solid waste disposal programmes for each protected IBA workshop, the tourist camp questionnaire, area (including those not receiving significant and a literature review, the following protected area numbers of visitors at this time). This may involve management issues have been highlighted. regulations requiring separation of compostable waste from plastics, for tour operators to take Zoning and management planning their waste with them, and for management to organise regular refuse collection and transport The Law on Protected Areas allows for protected out of the park. A positive example has been set at areas to be zoned. Strictly Protected Areas, Khovsgol Lake National Park, which is distributing for example, are divided into pristine zones, biodegradable bags for collecting and transporting conservation zones and limited use zones, while out solid waste (Schleicher and Hotz 2007) National Parks are divided into special zones, travel and tourism zones and limited use zones. In Tourist infrastructure practice however, zoning has rarely reflected wildlife values and often does not adequately address Ger camps are part of the tourist attraction, and management needs. Zoning is rarely apparent on often fit well with a protected area's natural and the ground, maps depicting management zoning are cultural surroundings. They are often sensitively typically unavailable, and park managers and tour located, such that they do not undermine the operators are often unclear about the location of aesthetics of a site. In this regard, Mongolia is more different zones. Any change to management zoning successful than many other countries in minimising within protected areas requires central government the impact of infrastructure development in approval, which has yet to be tested. Lakeshores, protected areas. However, sites' aesthetics can often for example, where disturbance can be a particular be undermined by concrete buildings (e.g. staff concern, do not appear to have been considered in accommodation, reception and dining facilities), management zoning (Wigsten 2005) which are out of place, and the location of parking, service and waste disposal areas. In addition, some Protected area management tourist camps are poorly situated, despoiling the landscape or facilitating disturbance. The tourism sector is dependent on government for protected area management and the upkeep Tourist and protected area infrastructure does not of tourist destinations. Strictly Protected Areas generally have significant direct impacts on wildlife and National Parks are managed by the central (although care is needed in the location of power government and depend almost entirely on and telecommunication lines, which can be a serious allocations from the national budget. As is the case hazard for raptors, cranes and other large-bodied in almost all developing countries, there are serious 73 budgetary constraints in Mongolia, and human and protected area management as an important call on financial resources are extremely limited. the national budget. WWF's RAPPAM study (Batsukh and Belokurov Environmental awareness amongst tourists 2005) analysed protected area inputs in terms of staffing, communication, infrastructure, facilities Most tourists have some understanding about and financing. This revealed a system "that is the purpose and importance of protected areas chronically lacking resources in practically all levels in principle and about conservation in general. of management", and where "low salary levels However, they are provided with little in the way and other employment conditions hamper full of information about the biodiversity values and recruitment of staff, causing few and inadequately conservation issues at particular sites, or about what qualified staff". visitor conduct is appropriate. Tourists interviewed at Khuisin Naiman Nuur Natural Monument for Mongolia's protected areas are thus under-funded, example, did not have a clear understanding about lacking in capacity, and "thereby a dysfunctional correct behaviour at the site, or much background partner to private sector" (Wigsten 2005). If tourism knowledge about the area; most would have liked is seen as a major focus for economic development, to have more information, such as brochures, maps central government will need to view investment in and information boards (Schleicher and Hotz 2007). 74 8. Recommendations 8.1 Recommendations for site governors, the overall application process need not be lengthened. safeguard with regard to mining and infrastructure 4. Up-to-date GIS data layers on critical natural habitats (especially Local SPAs and Recommendations to strengthen environmental IBAs) should be provided to MRPAM's safeguards in the mine licensing process Department of Geological and Mining Cadastre by the organisations that originally 1. Article 5 of the 1998 Law on EIA and prepared them (i.e. WWF Mongolia, TNC Articles 24 to 26 of the 2006 Minerals Law and WSCC), and relevant staff should be should be revised to make public consultation briefed on the data's relevance to the review an explicit requirement of the EIA and of licence applications, pursuant to Articles mining licensing processes, respectively. 19 and 24 of the 2006 Minerals Law. 2. Article 19 of the 2006 Minerals Law should Recommendations to resolve existing be revised to extend the 30 day deadline overlaps between exploration and for aimag governors to comment on mining licences and critical natural exploration licence applications to at least habitats 90 days, and to make consultation with affected local communities (not simply their 5. Exploration licences that have a marginal Citizen's Representative Khurals) a formal overlap with one or more critical natural requirement. habitats recognised as Special Needs Land under Article 16 of the 2002 Law on Land 3. Article 19 of the 2006 Minerals Law should (i.e. State SPAs and Local SPAs) should be further revised so that MRPAM is have their exploration area boundaries required to circulate exploration licence revised when they come up for renewal. applications to MNET for its review and approval before they are granted. If this 6. Exploration licences that have a major step is taken in parallel to circulation of overlap with one or more State SPAs and/ applications to aimag (or capital city) or Local SPAs and where the protected 75 area(s) in question pre-dates the exploration the authority that designated the protected licence should be immediately cancelled, area (in most cases the aimag or soum without compensation, for being in direct government) should revoke the licence and contravention of Article 17 of the 2006 pay compensation to the licence holder, as Minerals Law. specified under Articles 14 and 56 of the 2006 Minerals Law. 7. Exploration licences that have a major overlap with one or more State SPAs 10. MRPAM should not issue any new mining and/or Local SPAs but where the licence licences within any State or Local SPA, pre-dates the protected area(s) in question regardless of whether there is a valid should remain valid for the duration of the exploration licence for the area. present licence. Renewal of these licences should be conditional upon the boundaries 11. Objective, scientifically based guidelines of the exploration area being adjusted to and criteria should be developed, to ensure excise the overlap. consistency in the designation of Local SPAs by aimag and soum governments, 8. Mining licences that overlap with one or under Articles 3 and 28 of the 1994 Law more State SPAs and/or Local SPAs and on Special Protected Areas. These criteria where the protected area(s) in question pre- should be retroactively applied to all dates the licence are in direct contravention existing Local SPAs, by the relevant local of Articles 24 and 26 of the 2006 Minerals authorities, and sites shown not to meet Law. However, as the licence holder may them should be degazetted, following due be operating within the protected area(s) process. In addition, standard management unknowingly, revoking the licence without regulations for Local SPAs should be compensation would be a draconian developed and introduced. penalty. The authority that designated the protected area (usually the aimag or soum Recommendations to strengthen government, as most cases involve Local safeguard of critical natural habitats SPAs) should enter into negotiations with currently outside of Mongolia's protected the licence holder, to promote exchange of area system their licence for one that does not overlap with any critical natural habitat. The licences 12. The definition of Special Needs Land in used for exchange could belong to inactive Article 16 of the 2002 Law on Land should or bankrupt companies or delinquent be extended to explicitly include sites operations that have failed to pay taxes designated under multilateral environmental or comply with environmental protection agreements (i.e. Ramsar Sites, Biosphere regulations. All resale or transfer of mineral Reserve core areas and World Heritage licences in such cases should be prohibited. Sites) and natural sacred sites, thus affording them protection from exploration 9. Mining licences that overlap with one or and mining within their boundaries. more State SPAs and/or Local SPAs but where the licence pre-dates the protected 13. Ramsar Sites and IBAs that are not fully area(s) in question should remain valid. On protected within nationally or locally an exceptional basis (for instance where the protected areas should be considered for mine is compromising the protection of an designation as either State SPAs or Local area of extreme biodiversity importance), SPAs, particularly where their gazettal 76 would address gaps in the coverage of Recommendations to strengthen on-the-ground Mongolia's protected area system. protection of critical natural habitats 14. A provision should be included in the 1994 18. The recommendations contained in a Law on Special Protected Areas to extend recent WWF review of the management the prohibition on mining and exploration effectiveness of the Mongolian protected that currently applies to designated area system (Batsukh and Belokurov 2005) protected areas (State SPAs and Local should be implemented. SPAs) to sites that have been officially proposed by the government for protection 19. Enforcement of environmental protection but not yet formally designated. In order regulations should be strengthened in areas to prevent large areas of the country being with concentrations of artisanal mining. declared off-limits to exploration and In particular, the prohibition on artisanal mining by pre-emptive protected area mining within protected areas and other proposals, the moratorium on exploration Special Needs Land should be strictly and mining within proposed protected enforced, following Article 10 of the areas should be for a fixed time period (say, temporary regulation on artisanal and small- two years) from the point the proposal is scale mining. made. If the site is not formally designated within this period, the moratorium should 20. A programme of support to the State be lifted. Professional Inspection Agency at national, aimag and soum levels should be 15. If the interpretation of Article 8 of the 2007 developed, with support from international Law on Forests that exploration and mining donors. This programme should aim to are prohibited in all protected forests is address key barriers to effective on-the- correct, these areas should be mapped and ground monitoring and enforcement of inventoried, and GIS data layers should be environmental protection regulations, provided to the Department of Geological including staff capacity, transport and and Mining Cadastre in MRPAM. Articles communication equipment, and inter- 17 and 24 of the 2006 Minerals Law should agency coordination. be revised to include protected forest among the categories of land for which Recommendations to improve the exploration and mining licences cannot be environmental performance of mining granted. operations 16. A nationwide study should be undertaken 21. Article 39 of the 2006 Minerals Law should to identify sites that maintain ecological be revised to require exploration licence conditions vital for the viability of holders to lodge refundable environmental protected areas, such as forests that protect protection bonds sufficient to cover the the catchments of protected lakes, wildlife costs of reclamation, thereby ensuring that corridors, etc. sites will be reclaimed even if a company abandons them or fails to complete its 17. The World Bank should ensure that the list permit obligations. of IBAs in Mongolia (as well as those for other Asian countries) is used in screening 22. As recommended in the recent World Bank all development projects it finances. review of environmental and social impacts in 77 Mongolia's mining sector (World Bank 2006), Mongolia, in consultation with stakeholders the government should support and facilitate from the private sector, civil society and the introduction of Best Available Techniques the donor community. This strategy should into placer gold mining, and adopt a law on complement the Tourism Development artisanal and small-scale mining that restricts Strategy for Mongolia 2007-2011 by these activities to specific areas. informing the overall development of sustainable tourism in the country. 23. The government of Mongolia should give careful consideration to the wide range 2. At the aimag level, spatial tourism of best practice guidance available for development plans should be prepared. mining activities relevant to Mongolia. In These plans, which should be informed particular, the government should require by the national sustainable tourism mining companies to manage impacts strategy and the results of this study, on biodiversity following the mitigation should show sites (such as critical natural hierarchy (i.e. avoid then minimise then habitats) where mass tourism is not rehabilitate/restore). appropriate, as well as sites with potential for sustainable tourism development. 24. A feasibility study for capturing revenue Revenue flows from tourism may create streams from mining operations within an incentive for local government to or close to protected areas should be protect these sites from incompatible undertaken. This study should explore the forms of development. channelling of such revenue to support the conservation management of these 3. To inform the development of these aimag- areas and the sustainable development of level plans, MNET should identify, based communities living in their buffer zones. on local and expert consultation, the next set of protected areas where sustainable 25. Informed by this feasibility study and tourism might be developed. Tourism the experience of initiatives such as the development should not be allowed to Business and Biodiversity Offsets Program proceed at any new protected areas until (BBOP), the government of Mongolia appropriate sites have been identified, should introduce regulations that require EIAs have been carried out and consulted mining companies to compensate for any on, and sustainable tourism plans are in impacts on biodiversity that remain after place. mitigation has been pursued, by investing in biodiversity offsets. 4. In those protected areas already allowing tourism, sustainable tourism plans 8.2 Recommendations for site should be prepared, following IUCN's Guidelines for Tourism in Parks and Protected safeguard with regard to Areas of East Asia (Eagles et al. 2001) (see tourism Chapter 9.2). These, plans should be developed by MNET, in collaboration Recommendations to improve planning for with other relevant bodies including local sustainable tourism development administrations, and building on the considerable in-country experience that 1. A national sustainable tourism strategy exists in the conservation and tourism should be developed by the government of sectors. 78 5. After sustainable tourism plans have the objectives of the national sustainable been prepared for protected areas where tourism strategy. tourism impacts are an immediate concern, they should next be prepared for other Recommendations to realise tourism's potential protected areas where tourism is likely to be for contributing to protected area financing developed in the near future. 8. Innovative financing and governance Recommendations to support the development models should be piloted at selected of sustainable tourism protected areas with significant tourism potential. These models could include 6. A centralised, web-based resource of protected area business plans, private sector sustainable tourism case studies and representation on management boards, and guidelines should be compiled and made local management of decentralised revenue publicly accessible. This resource could streams. Experience from these pilots possibly be hosted at the STDC, and should be documented and used to inform disseminated through the Community the development of national policy. Based Tourism Network. These documents should cover such topics as the planning 9. A feasibility study for capturing revenue of sustainable tourism, development of streams from tourism operations within tourist camps, visitor management, visitor protected areas or their buffer zones should awareness, solid waste management and be undertaken. This study should explore waste water management. the channelling of such revenue to support the conservation management of these 7. A cross-sectoral fund should be established areas and the sustainable development of by one or more interested donors, to communities living in their buffer zones. support collaborative initiatives, among Sustainable financing mechanisms such as tourism companies, conservation these present an opportunity for tourism organisations and protected area operators to contribute to the conservation of management authorities, that address the attractions their clients are coming to see. 79 80 9. Best practice in site safeguard and mitigation 9.1 Examples of best practice range of examples of best practice from both environmental and mining legislation, reviews with regard to mining and practical guidelines for the mining sector that infrastructure go beyond compliance, and gives consideration A to mine planning that has environmental targets s described in Sections 6.1 and 6.2, while based on the mitigation hierarchy. This last there is legislation in place in Mongolia topic includes the need for and appropriate use to ensure that exploration and mining of biodiversity offsets to achieve better industry licences are applied for in a manner performance. which gives an opportunity for environmental assessment, there clearly remain weaknesses in the Selected examples of effective legislation with process, which does not necessarily allow for the respective to mining and the environment ready participation of MNET or of communities potentially effected by mining development at the While this section does not aim to effectively local level. present a comprehensive review of environmental legislation from around the world, it does present This section looks beyond the existing regulatory some selected examples of environmental legislation and policy framework in Mongolia, to see what that could be useful in informing opportunities for can be done to gain benefit from practices enhancing more effective legislation in Mongolia. elsewhere that could both help the development Selected legislation from various countries includes of the regulatory framework and ensure that the legislation both for species and site safeguard and practice of mine development planning becomes for the operational management of mining. It is more effective at minimising environmental recognised that to achieve responsible mining, there impacts. Relevant best practice from outside the needs to be cross-compliance between legislation country is considered, with particular respect to designed to protect the environment from critical natural habitats and the species that they incompatible forms of development, and legislation support, as well as to ensuring that the sustainable designed for the licensing and implementation of development context for mining brings mining activities (e.g. access to land, mineral rights, ongoing support to biodiversity conservation mine closure and rehabilitation of mined land). in Mongolia. This section examines a selected 81 The European Union and its member states Special Protection Areas form an integral part of the Natura 2000 network. It is important to bear The Habitats Directive and the Birds Directive in mind that BirdLife International's global criteria underpin nature conservation policy within EU for IBAs underpin EU Special Protection Areas, member states. This is built around two key although not all IBAs in the EU are necessarily safeguards: the Natura 2000 network of protected afforded Special Protection Areas status. sites; and a strict system of species protection. The Habitats Directive3 protects clearly identified It is important to recognise that such nature animal and plant species (Annex II) and a range conservation legislation is a horizontal legislation, of over 200 so-called "habitat types" (Annex I), which has a bearing on and needs to be taken into which are of European importance. Priority species account when implementing other EU-policies, and habitats are also identified, based on their such as structural, transport or agriculture policy. conservation status. The Natura 2000 network Domestic development planning legislation identifies a protected area network that is based on and environmental legislation also needs to be biogeographical analysis of the EU's varied habitats consistent with both the EU Habitats and Birds and the species associated with them. The European Directives. In the United Kingdom, for example, Union has nine biogeographical regions. Natura all development planning legislation is required 2000 sites are selected on the basis of national to be consistent with the EU Habitats and Birds lists proposed by the Member States. For each Directives. Inconsistencies proposed by planning biogeographical region, the European Commission local authorities or by developers are subject to adopts a list of Sites of Community Importance rigorous government review. (SCIs), which then become part of the network. Finally, the SCIs are designated at the national level Key attributes of this legislation are that applies to a as Special Conservation Areas (SCAs). large and diverse geographic area and that protected species and sites are selected on the basis of both The Birds Directive4 is the EU's oldest piece of threat status and biogeographic significance. nature legislation and one of the most important, In addition, the legislation is horizontal and is creating a comprehensive scheme of protection for generally met with a high degree of statutory cross- all wild bird species naturally occurring in the EU. compliance. The directive was also introduced in recognition of the facts that wild birds, many of which are United States of America migratory, are a shared heritage of the Member States, and that their effective conservation The 1973 Endangered Species Act is regarded as a required international co-operation. The directive very significant piece of legislation, which adopts a recognises that habitat loss and degradation are species-focused approach to habitat and ecosystem the most serious threats to the conservation of conservation. It has its critics, within both the wild birds. It therefore identifies sites critical for conservation and the development sectors. The wild bird populations, highlighting the need for stated purpose of the ESA is to protect species and habitat protection for both threatened species and also "the ecosystems upon which they depend". It migratory species (listed in Annex I). It achieves is administered by two federal agencies: the United this through the establishment of a network of States Fish and Wildlife Service (USFWS); and the Special Protection Areas, comprising all the most National Oceanic and Atmospheric Administration suitable sites for these species. Since 1994 all (NOAA), which includes the National Marine 3 Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora. 4 Council Directive 79/409/EEC on the conservation of wild birds. 82 Fisheries Service (NMFS). Interestingly, the Act been limited. It is recognised, therefore, that the contains a citizen suit clause, which allows citizens best incentives for positive conservation action are to sue the government to enforce the law; this has to prevent species from the necessity of becoming been a key influence on how species conservation listed because their status does not require it. Listing has continued to make progress in the United Stares of species has such significant implications for land since the Act was promulgated. Civil society has had management that developers often seek to avoid a major role in bringing conservation imperatives listing at all cost, sometimes to the detriment to the to the attention of government and of testing the species and its associated habitats. Hence the Act accountability of federal agencies. has been and continues to be subject to political interference and amendment. The ESA only protects species that are officially listed as "threatened" or "endangered", and can Public lands in the US make up the greatest be listed in one of two ways. The first is for the proportion of protected areas in the country. federal agencies to take the initiative and directly Such public lands include National Parks Service, list the species. The second is by petitioning from USFWS, Forest Service and Bureau of Land individuals or organisations, which prompts the Management lands. Core areas within such lands respective agencies to undertake a scientific review. are frequently identified as Wilderness Areas (under Civil society has played a key role in furthering this the 1964 Wilderness Act). Such areas could be second approach in recent years. regarded as the equivalent of the pristine zones within Mongolia's Strictly Protected Areas. With habitat loss recognised as the primary threat to most listed species, the Act allows the relevant With respect to mining and reclamation, a useful federal agencies to designate specific areas as and effective piece of legislation in the USA is the protected "critical habitat" zones. In 1978, the Act Surface Mining Control and Reclamation Act (1977), was amended to require critical habitat designation known as SMCRA. Administered by the US Office for all threatened and endangered species. Critical of Surface Mining Reclamation and Enforcement habitats are required to contain "all areas essential (OSM), the Act is aimed at securing appropriate to the conservation" of the target species (Section standards of environmental performance at strip 3(5)(A)). Such lands may be private or public. or open cast coal mines. It addresses permitting, Federal agencies are prohibited from authorising, where SMCRA requires that companies must funding or carrying out actions that "destroy or describe the pre-mining environmental conditions adversely modify" critical habitats (Section 7(a)(2)). and land use before mining takes place, what the While the regulatory aspect of critical habitat does proposed mining and reclamation will be, how the not apply directly to private and other non-federal mine will meet the SMCRA standards, and what landowners, large-scale development, logging and post-mining land-use will be after reclamation is mining projects on private and state land typically complete. Such information is intended to help require a federal permit and thus become subject to the government determine whether to permit the critical habitat regulations. mine and set conditions that will ensure appropriate environmental protection. SMCRA also requires Since 1973, the Act has been subject to various that companies post a bond sufficient to cover amendments reflecting changing political the cost of reclamation, ensuring that the site will administrations and perspectives. While the be reclaimed even if the company abandons the Act is recognised as providing strong statutory mine or fails to complete its permit obligations. protection to listed species through constraints to The bond is not released until the mining site has development within critical habitats, the incentives been completely rehabilitated and the government for positive engagement in conservation action has has (after an agreed period) found reclamation to 83 be successful. SMCRA also identifies protocols of federal, tribal, state, and/or local regulatory for inspection and enforcement, and identifies and resource agency representatives that advises land restrictions where mining is inappropriate the Corp's district engineer on, the establishment such as in National Parks and Wilderness Areas. It and management of a mitigation bank. The permit also allows citizens to challenge proposed surface recipient, either on a permit-by-permit basis or mining operations on the ground, so ensuring within a single-user mitigation bank, carries out public participation in the permitting process. While the mitigation action. There is also the option SMCRA has equivalent statutory mechanisms within of creating a third-party mitigation bank (i.e. a Mongolia's 2006 Minerals Law, there are aspects of commercial mitigation bank), where another party SMCRA which could be useful to consider when accepts a payment from the permittee and assumes seeking to improve Mongolia's minerals law in the the permittee's mitigation obligation. However, future. most compensatory mitigation has been undertaken by permit recipients, rather than by third parties. Another useful legislative tool is the Clean Water Act (Section 404 programme), whereby the US This mechanism has been used by a number of Corps of Engineers, or a state programme approved mining companies in the US where tailing expansion by the Environmental Protection Agency, has and other mine developments have impacted authority to issue permits that would affect wetland natural wetlands. As a model it could be considered habitat and to decide whether to attach conditions for application elsewhere, both geographically and to them. This tool is of interest in that it established in terms of offsetting net residual biodiversity loss by statute the principle of biodiversity offset, associated with mine development. although it was designed to be applied to wetland habitats. To achieve no net loss of wetlands within Brazil the Section 404 programme, a permittee is first expected to avoid deliberate discharge of materials In 2006, the Brazilian Government passed into wetlands and then to minimise discharge that Resolution 371, based on Law 9985 on the cannot be avoided. When damage is unavoidable, National System of Conservation Units (dated the Corps of Engineers can require the permittee to 18 July 2000). This requires developers of major provide "compensatory mitigation" as a condition projects to contribute at least 0.5 percent of the of issuing a permit. The creation of compensatory project budget as a compensatory investment in mitigation banks are one of several ways to biodiversity conservation. These funds must be compensate for unavoidable, negative impacts to invested in the implementation and maintenance wetlands and other aquatic resources. A mitigation of a strict protected area, selected by a technical bank is a site where wetland resources are restored, committee. Eligible sites for such a compensatory established, enhanced, and/or conserved for the offset include: purpose of providing compensatory mitigation for impacts authorised by permits issued by the Corps · Existing protected areas or their buffer that result in impacts to natural wetlands through zones directly affected by the project, development. selected according to the criteria of distance, area, vulnerability and infrastructure; The operation and use of a mitigation bank is · In the absence of the above, the priority governed by a mitigation banking instrument, is the creation, implementation or which is the legal document for the establishment, maintenance of strict protected areas in the operation, and use of a mitigation bank. The same biome and, preferably, in the same mitigation banking instrument must be approved catchment, and/or considering the results by an Interagency Review Team, which is a group of the Priority Setting Exercise; 84 · Other sites proposed in writing to the Act makes specific reference to environmental government environment authority. offsets with reference to the clearing of native vegetation. Section 51H(1) states that a clearing In order to comply with Resolution 371, a permit may be granted subject to such conditions mining company would be required to invest in as regarded necessary for the purposes of avoiding, a biodiversity offset for the mine and associated mitigating environmental damage or offsetting the developments, such as smelters and transport loss of cleared vegetation. The permittee will be infrastructure. The offset associated with the required to take specific measures to establish and mine development must be approved by the maintain vegetation on land other than that cleared environmental licensing authorities at the federal in order to offset the loss of cleared vegetation or level, whereas those associated with other ancillary make monetary contributions to a fund maintained infrastructure need to be approved at the state level. for the purpose of conserving native vegetation. In South Australia, the Native Vegetation Act 1991 Here is a statutory mechanism essentially recognis- that the Native Vegetation Council may impose ing the value of biodiversity offset as a compensa- conditions when permitting native vegetation tory mechanism for addressing net residual impacts clearance. A set aside formula is applied where 10 of development, which is built into the permitting ha is identified as an offset for every 1 ha cleared. process. In Brazil such a process brings valuable re- sources to IBAMA (the federal agency - Brazilian In New South Wales, the government has launched Institute for Environment and Renewable Resourc- a Green Offsets programme which aims to ensure es), but whether the identification of such offsets that there is a net environmental improvement as effectively offsets the biodiversity impacts resulting a result of development, with the offsets princi- from such development is not clear. It does provide ples underpinned by needs for prerequisite impact funds for deployment at priorities identified by the avoidance and mitigation, the need to compliment federal agency. Such a mechanism could be useful other government programmes, to be based on and in Mongolia where such resources could be used by reward good, not poor environmental performance an under-resourced MNET to support management and result in a net positive gain for the environ- of protected areas and expansion of the protected ment. Such offsets as are identified must be endur- area network. ing, quantifiable, targeted ("like-for-like" or better), located appropriately (preferably local to the im- Australia pact), supplementary and enforceable. Various legislations in Australia have implemented In Queensland, recent development in a range of mechanisms that could usefully inform environmental legislation and the consolidation and models for biodiversity offset in relation to mining alignment of existing initiatives have resulted in the development in Mongolia. The Commonwealth establishment of an innovative - Australian-first - Environmental Protection and Biodiversity green fund, Eco Fund Queensland (March 2008). Conservation Act 1999 makes provision for approval Eco Fund Queensland will allow developers within of developments that could impact biodiversity but government, the private sector and eventually such include the need for conditions that relate to making parties outside of Australia to invest in it. It aims good such damage in the form of biodiversity to secure the benefit of adding to Queensland's offsets. conservation areas and will work as follows: Similar policies are underway at the state level in Based on a current need for developments to avoid Victoria and New South Wales and other states. In or minimise environmental impacts, a calculation Western Australia the Environmental protection of the residual unavoidable impacts will see such 85 impacts being off-set by a financial contribution to conducting mineral exploration and operational the Fund. The Fund then professionally identifies and rehabilitation activities. Semi-arid and arid and secures an appropriate offset on behalf of the areas frequently are considered to be intrinsically developer, many of which will make their way into devoid of life, or at least are not valued as national parks and the Protected Area network in having other land-uses associated with them, Queensland. In due course, once the offsetting with the exception perhaps of extensive grazing. procedure is well established, government, industry, Therefore mining activities have been typically and in time, interstate and overseas entities will be and traditionally undertaken with little account for able to approach Eco Fund Queensland in order to the sparse but nevertheless significant biodiversity offset their greenhouse emissions. that is associated with desert environments. The physical footprints of mine activities have often This mechanism will be underway by January 2009 been imposed on desert habitats with impunity, and through this, Queensland proposes to increase with little constraint imposed on the locational its National Park estate by 50 percent by 2020, with nature and extent of vehicle tracks, drilling pads, the area under protection increasing from almost overburden and waste rock dumps and tailings 7.6 million ha to around 12 million ha, covering the facilities. In addition, water abstraction has equivalent of almost two islands of Tasmania. Such frequently been irresponsible and unsustainable, a mechanism may be worthy of consideration by with tailings facilities losing considerable volumes the Mongolian government which itself maintains of water to evaporation, and groundwater an ambitious policy to increase the coverage or its reservoirs being depleted to the detriment of protected area network to 30 percent. riparian corridors and emergent springs that are of crucial importance to biodiversity in such Environmental guidelines for the mining environments. sector that go beyond regulatory compliance: some examples with relevance for Mongolia Fortunately, many of the problems associated with large scale mining activities in semi-arid and arid Much of Mongolia is classified as semi-arid or arid. environments have been recognised and addressed Hence when considering mining development there with the development of best practice guidelines. will be issues that relate to minimising biodiversity Such guidelines for mining in desert environments impacts, addressing habitat recovery rates and should address such issues as: water management that government and mining companies should be particularly aware of. · Minimising the physical footprint represented by vehicle tracks, exploration In addition, the analysis in this report indicates activities, heap-leaching processes, waste that nearly 90 percent of the total area covered rock and overburden dumps and tailings by mining licences is accounted for by just three facilities; minerals: coal, gold and copper. Therefore it · Minimising groundwater water abstraction is appropriate that awareness of best practice by introducing efficient water recycling guidelines for managing the environmental issues schemes into operational management for associated with these products is profiled in this metallurgical processing, heap-leaching, report. tailings management, dust suppression and domestic use; Best practice for mining in semi-arid or arid environments · Minimising inappropriate availability of (potentially) contaminated water to In semi-arid and arid environments there are a wildlife and livestock in semi-arid and arid number of key considerations to bear in mind when environments; 86 · Implementing effective waste management the coal industry, although coal mining landscapes procedures that: throughout the country have experienced varying minimise artificial water availability; levels of successful reclamation with respect avoid pollution to groundwater and to biodiversity outcomes. In the mountainous drainage systems; Appalachians of the east impacts have been avoid artificial availability of food to generally more significant and difficult to mitigate wildlife populations (such availability and reclamation more challenging. However, in can lead to distortions in predator and the west the SMCRA has been more effective. scavenger populations and their impacts Furthermore, the industry, together with OSM, on other biodiversity). has collectively developed a Handbook of · Topsoil harvesting and storage to facilitate Western Reclamation Techniques that has been more effective rehabilitation of disturbed very useful in realising high standards of habitat habitats; reclamation throughout the mine cycle (Hansen · Management of wind and water erosion; 1996). · Effective dust suppression management; · Appropriate landscape assessment and The handbook covers operational management and planning for development in environments reclamation techniques, addressing in great detail where such impacts are difficult to mitigate. the following issues: An IUCN publication in the Ecosystem · Topsoil management: salvage and Management Series was published in 2003 replacement; specifically addressing problems and approaches for · Hydrology: control structures; sediment best practice associated with extractive industries control; reconstruction of hydrological in semi-arid and arid zones (Gratzfeld 2003). This features; document is useful and should be available to all · Topography: hill and slope analysis; stakeholders concerned about mining development topographic shaping and backfill in such zones. techniques; · Wildlife mitigation and protection during Best practice guidelines for strip and opencast coal mining the mining process: fencing; reducing powerline impacts; traffic and roads; While underground coal mining is still widely providing interim habitat; raptor nest practiced globally, most modern coal mining adopts relocation; strip mining or opencast techniques. While such · Vegetation: designing revegetation techniques have the potential for significant primary programmes; seeding, drill and impacts, the geology of coal seams can allow for an hydroseeding and mulching techniques; ongoing operational approach to reclamation that planting and vegetation establishment; can be implemented while the mine is in operation. surface stabilisation; revegetation husbandry This allows for habitat recovery to proceed while and monitoring; production continues, so reducing the extent and · Post-mining land use: planning; establishing duration of the primary impact of the mine on and managing new grazing regimes and habitats and other land-uses. ongoing livestock management. As discussed earlier in this section, the 1977 The areas where coal mining is most prevalent in Surface Mining Control and Reclamation Act in the west USA such as northern Colorado and the USA has been a useful statutory tool ensuring Wyoming, with steppe and mountain landscapes acceptable standards of reclamation practice in that bear some similarity to Mongolia. Therefore 87 these techniques outlined in this document may serious, long-term nature of Acid Rock Drainage, be useful for consideration, modification and the International Network for Acid Prevention application in the country. (INAP) is an industry group that has formed to help address this challenge. INAP exists to fill the Copper and gold mining: managing Acid Rock Drainage need for an international body which mobilises acid drainage information and experience. The Acid Rock Drainage (or Acid Mine Drainage) is network was founded in 1998. Since then INAP a weathering process where sulphide minerals has become a proactive, global leader in this field. exposed to water and air through mining of It comprises some of the leading mining companies hard rock ore bodies react to produce an in the world, many of which are ICMM members acid solution. The resulting acid solution can (www.inap.com.au). significantly affect water quality both for wildlife and for human use. Acid Rock Drainage is one Other organisations working on best practice of the problems associated with the mining responses to Acid Rock Drainage are: of ore bodies rich in sulphides, such as those associated with copper-rich porphyries. Acid · The Mine Environment Neutral Drainage Rock Drainage is a major environmental risk that Program is regularly assessed for new mines and remains a (www.nrcan.gc.ca/ms/canmet-mtb/mmsl- problem at many historical and abandoned mines. lmsm/mend/); Historically, Acid Rock Drainage was not a matter · The Acid Drainage Technology Initiative for regulation and as it is a long term problem, (www.unr.edu/mines/adti/); Acid Rock Drainage becomes a lasting and costly · The Australian Centre for Minerals negative environmental legacy. Where recognised Extension and Research as a potential problem, Acid Rock Drainage (www.acmer.uq.edu.au/); can often be prevented and managed for. Even · The Partnership for Acid Drainage so, such management programmes will need to Remediation in Europe be in place often long after the mine has been (www.padre.imwa.info/index.html). closed. Current practices in mine development and impact assessment identify the potential for Gold mining and mercury pollution Acid Rock Drainage at an early stage, and should be fully addressed at EIA stage. The assessment Artisanal and small-scale gold mining is widespread should include includes strategies to control or in Mongolia and in contrast to other mining manage Acid Rock Drainage at the outset of sectors, where mercury pollution is decreasing, operations. There are several mine sites that have the artisanal mining of gold remains an area of had the potential for Acid Rock Drainage and have serious concern, where a high percentage of small- operated and closed successfully without causing scale miners use the mercury-based amalgamation pollution problems. Water collection, retention process. Mercury is a key pollutant and a cause for and lime treatment is a typical method employed, growing concern because of the long-term impacts allowing for de-acidified water to be released to the on ecosystems and human health. Artisanal mining environment. However, treatment may be required accounts for about 25 percent of the world's gold in the long-term, beyond mine closure. The output. The resulting associated contamination requirements and costs for managing Acid Rock and introduction of mercury into the food chain Drainage should be identified in Mine Closure have potentially catastrophic results for the Plans and financial provisions or bonds provided environment, miners' health and the health of to ensure that mining companies are able to people living in catchments affected by such manage the long term liability. In recognition of the artisanal mining. 88 In response to this situation, much effort has Johannesburg. Within this context, biodiversity gone into weaning small-scale miners off the and the environment became more clearly defined mercury process. One such body addressing the as issues requiring clear policy development among problem has been the United Nations Industrial many of the leading companies in the sector. As a Development Organisation (UNIDO). UNIDO result of this sectoral collaboration, ICMM was has been conducting a global programme on the established and now lists 16 of the world's leading Abatement of Mercury in Artisanal Mining funded mining companies and 27 industry associations by the Global Environment Facility (http://www. as members. This organisation has been a very gefweb.org) and participating countries. significant vehicle for the ongoing development of best practice, both in terms of biodiversity as in UNIDO (http://www.natural-resources.org/ terms of societal issues. minerals/cd/unido.htm) has been developing a programme for introducing cleaner artisanal In the meantime, individual mining companies, gold mining and extraction technologies. In themselves ICMM members, have been developing this respect, UNIDO offers a range of cross- policies and practices for more strategic and discipline programmes, addressing measures effective management of the biodiversity risks that for environmental protection, introduction they face. A number of examples are given below: of new technologies and manufacturing of relevant equipment and development of training BHP-Billiton programmes. Within the context of BHP-Billiton's Sustainable Some selected mining company approaches Development policy of 2007, which aspires to to responsible biodiversity safeguard and Zero Harm to people, host communities and the management environment, the policies on biodiversity and the environment reads as follows: In the 1990s, the global mining sector recognised that it was perceived in a very poor light worldwide. · Identify, assess and manage the risks to The sector realised that attaining the `Licence to employees, contractors, the environment operate' was becoming difficult and there was and our host communities; recognition that something needed to be done · Set and achieve targets that promote to improve standards and standing across sector. efficient use of resources and include There was a realisation that a sector-wide response reducing and preventing pollution; was necessary, because poor performers in the · Enhance biodiversity protection by industry were influencing the reputation of better assessing and considering ecological companies. values and land-use aspects in investment, operational and closure activities. The Global Mining Initiative (GMI) was established in 1998 by nine of the leading mining companies With this overarching policy statement in mind it in the world to address sectoral reform, undertake appears that BHP-Billiton product groups across an internal review of the sector and a rigorous the company are responding to local challenges study of the societal issues the sector was facing. for addressing biodiversity management. So for The GMI set out a programme of work that example, BHP Billiton Iron Ore is developing a culminated in the development and completion of Biodiversity Strategy informed by the issues that the Mining, Minerals and Sustainable Development are being met in the Pilbara region of Western Project, which presented its report to the 2002 Australia. The development of the strategy has World Summit on Sustainable Development in involved a consultative approach engaging relevant 89 stakeholders (government, academia, NGOs) as the global biodiversity policy and strategy target was well as consultants, in order to build an informed not completed as climate change became a priority strategy. The resulting goals are: issue for 2007. · To conserve, protect and minimise impacts Rio Tinto on biodiversity; · To ensure no loss of species; In 2004, Rio Tinto completed the development of · To leave sustainable, functioning a corporate biodiversity strategy. The strategy was ecosystems that mimic regional landscapes. informed by Rio Tinto's leading participation in ICMM and its biodiversity partnerships with some It would appear that the initiative to develop such of the world's leading conservation NGOs, such as strategies are business-unit or product-group led, BirdLife International, Conservation International, rather than through an overarching global approach. Fauna & Flora International and the Smithsonian Whether this approach can result in a true global Institution. The development of the strategy was strategic appreciation for biodiversity priority- managed by an internal Rio Tinto steering group, setting and action planning is not clear at this time. supported by an external advisory panel of six invited international experts from conservation and Newmont community development organisations, chaired by BirdLife International. The company acknowledges that mining intrinsically impacts the land where it operates. As a company Rio Tinto published its biodiversity strategy in it is committed to protect biodiversity throughout 2004, and launched the strategy at the IUCN the lifecycle of its mines, from exploration through World Conservation Congress in Bangkok. It construction, and operations to closure. The declared its position statement on biodiversity to approach is to conduct relevant detailed baseline be as follows: surveys to identify key ecological sensitivities in areas where they plan to operate. These surveys "Rio Tinto recognises the importance of the conservation help assess potential environmental impacts and and responsible management of biological diversity as a plan ways to minimise negative impacts throughout business and societal issue. We aim to have a Net Positive the mine lifecycle. Impact on biodiversity. We are committed to the integration of biodiversity In 2005, Newmont began collaborating with conservation considerations into environmental and social Conservation International, an NGO focused on decision making in the search for sustainable development conserving global biodiversity, to help it better outcomes. We recognise that this may mean that we do not understand its impacts and develop a global proceed in some cases. biodiversity strategy. Newmont's relationship with Rio Tinto seeks a position of leadership and influence Conservation International is intended to help in the mining industry on biodiversity issues. We believe integrate biodiversity issues into their environmental that recognition of that position and of our performance on policies, operating standards and management biodiversity issues will create benefits for our business. We systems. are committed to: Newmont intended to develop its global biodiversity · The prevention, minimization and mitigation of policy through 2006, with a view to undertaking biodiversity risks throughout the business cycle; site-targeted biodiversity risk assessments. As of · Responsible stewardship of the land we manage; 2007, biodiversity risk mapping was conducted at · The identification and pursuit of biodiversity two operations and one exploration site. However, conservation opportunities, and; 90 · The involvement of communities and other constituencies Xstrata in our management of biodiversity issues." Xstrata's Health Safety and Environment The implementation of this strategy across the standard for biodiversity and land management Rio Tinto group has been underway for many requires all operations and projects to years. The aspirational position on achieving identify biodiversity-rich and sensitive areas Net Positive Impact requires that the mitigation systematically. It requires such operations and hierarchy approach be followed, seeking to projects to develop and implement biodiversity reduce the impacts they have on biodiversity by: action plans. Biodiversity-rich sites are those avoiding impacts in the first place; minimising associated with Protected Areas and non- them where they cannot be avoided; and restoring protected areas recognised for their biodiversity natural ecosystems after operations are complete value, while sensitive sites are those associated (or during operations if possible). If, after all with significant levels of species endemism and mitigation measures are undertaken to reduce globally threatened species. The company has impacts, there is still recognised to be net residual a clear and documented appreciation of the loss of biodiversity, then compensation in the location and significance of its global managed form of a "biodiversity offset' can be used to meet, operations with respect to Protected Areas and and in some cases exceed, this residual loss. With areas of high biodiversity value. new mine project under design and the permitting process it is recognised that identifying and Within the context of their sustainability policy, assessing the quantified values along the mitigation "all significant potential and actual impacts of hierarchy is possible, and that the appropriate their activities and operations on the environment, biodiversity offset can be identified at an early biodiversity and landscape functions are identified, stage in the project's development. In addition, Rio analysed, evaluated and eliminated or otherwise Tinto is currently developing a methodology for treated, with the aim of preserving the long- identifying biodiversity offsets, with advice from term health, function and viability of the natural BirdLife and other NGOs. environments affected by their operations. Scientifically sound technologies and procedures Rio Tinto has produced a guidance document for are developed and implemented for the effective its operations, entitled Sustaining a Natural Balance: a management and conservation of biodiversity and Practical Guide to Integrating Biodiversity into Rio Tinto's landscape functions in the areas affected by their Operational Activities. The guidance is designed to operations". help Rio Tinto staff evaluate, assess and manage biodiversity issues on their sites. It helps them Xstrata appears committed to address to work with their neighbouring community comprehensively all aspects of site and project and other interested groups (including external operations that could impact the natural specialists when needed) to set priorities for action. environment and to undertake baseline surveys Biodiversity Action Planning and biodiversity and EIAs at appropriate points in the project or value assessments (at new projects) are underway operating life cycle. Essentially Xstrata appear to at mining projects in Brazil, Guinea, Madagascar, be addressing the mitigation hierarchy in their and Namibia. In addition, through collaborative systematic approach to evaluating biodiversity partnership with various biodiversity NGOs, Rio features of interest, undertaking priority-setting Tinto is supporting relevant conservation actions and identifying and addressing the potential in the vicinity of their many operations that can impacts on these, with respect to the full range of contribute to an assessment of their contribution to operational activities associated with their mining achieving Net Positive Impact. operation. 91 Systems and procedures are established and exhaustive public consultation through regional implemented to identify and document significant stakeholder workshops with NGOs and ICMM natural resource conservation issues, such as the use members during 2005. The resulting document of water, energy and raw materials. An emphasis on is a very useful toolkit addressing mine project achieving high levels of understanding on baseline development and associated biodiversity risks biodiversity and landscape function at an early stage and management throughout the mine cycle from is commendable, with an appreciation on ecosystem exploration through to closure. function a significant attribute of their approach. The publication documents different components A monitoring commitment throughout the life of the mine cycle through exploration, pre-feasibility cycle of a project including post-closure, with assessment, construction, development of ancillary regard to species and habitat loss or gains; factors infrastructure, extraction and mineral/metals that impact on biodiversity; security of protected processing, closure planning and implementation. areas; management of biological resources; ongoing rehabilitation and restoration of ecosystems. It presents a very straightforward practical approach Xstrata has adopted an approach to identifying to the identification of potential impact intersections and safeguarding biodiversity offsets at some of its between biodiversity and environmental features operations and appreciates the value of achieving through the various activities associated with project like-for-like offset outcomes. development, mine operations and closure planning and implementation, highlighting the relationships The International Council for Mining and Metals (ICMM) between these activities and the environmental features that might be impacted by them. ICMM commenced its dialogue with IUCN in 2002, following the WSSD Summit in Johannesburg, in It outlines management systems and assessment an effort to progress better value exchange between tools both in terms of Social and Environmental the biodiversity conservation sector and the global Impact Assessment, scoping and screening, mining community. Since then there have been determining, evaluating biodiversity significance, a number of useful outcomes clarifying ICMM's determining significant biodiversity aspects, and position and approach to developing best practice. how this process leads on to the development of These are few selected examples: targeted biodiversity action planning. It also looks critically at the stakeholder engagement process. · Position Statement on Mining and In short, as a toolkit, it is an extremely useful Protected Areas (August 2003); document, which if used by the mining sector and · Integrating mining and biodiversity government, will guide effective best practice in conservation: case studies from around the managing and safeguarding biodiversity throughout world (2004); the mining cycle. · ICMM Biodiversity Offsets paper (2005); · Mining and Indigenous Peoples issues The ICMM is a valuable forum for global and (March 2006); national engagement, one where a variety of · WCPA Management Categories Task Force best practices relevant to the industry are being ­ response to IUCN in 2007. debated, developed and shared. It is recommended that the Mongolian National Mining Association A landmark document was the production of the consider the benefits of engaging with ICMM and Development of Good Practice Guidance for Mining that all sectors in Mongolia (private, public and and Biodiversity (2006); this was a key outcome of civil society) consider the capacity that ICMM the IUCN ­ ICMM dialogue and involved an and its members can bring to achieving improved 92 standards of environmental and social practice to to effectively enter the process of following the the extractives sector in Mongolia at this important mitigation hierarchy. time of growth and development. What should be aspired to in obtaining an effective Addressing biodiversity impacts and and adequate baseline data set for a project? The conservation through the Mitigation screening and scoping of biodiversity issues is Hierarchy: aspiring to "no net loss" critical. It is appreciated that many areas will not have ready data on biodiversity but this will only Considerable mention has been made previously be established after a thorough desktop search of the concept of the mitigation hierarchy. This has been undertaken, looking at all historical has been a concept adopted by many in the and current survey activities that may have been extractives industries sector to identify a system of undertaken in the area. This will help identify the understanding whereby the extent and responsibility gaps and inform which surveys are appropriate and for biodiversity (and other) impacts are clarified necessary. Protected areas and their local, regional, and the process of minimising those impacts can national and international significance needs to be be realised and put into practice as a mine project established, both in terms of the impact assessment develops. Ultimately, it is about recognising that but also to potentially inform offset options in the efforts should be made at the outset of project future. Even if the area is not formally protected, development and design that seek to minimise has it been identified as a biodiversity priority environmental and biodiversity impacts at the (many IBAs will fall into this category)? What earliest possible stage. is the government or other stakeholder value regarding the area? Does the area support globally We have seen that such companies as BHP- or nationally threatened species? Billiton and Rio Tinto aspire to "no net loss", "Zero Harm" or "Net Positive Impact" (NPI). A thorough baseline analysis is a key prerequisite to These are inherently quantitative commitments an effective and thorough EIA. As part of the EIA that can only be achieved and accounted for if or following receipt of an environmental licence adequate baseline data on the biodiversity interests or permit, a company may wish to undertake a pertinent to the mine project site and its wider area further Biodiversity Values Assessment: identifying is secured and appreciated. If adequate baseline appropriate areas for targeted management action is not achieved, then any claims to zero harm or within the context of the project's development and NPI cannot be verified and efforts at mitigation operation. This will in turn inform the company's throughout the various operational phases of mine engagement with the mitigation hierarchy, as it will development will not have the benefit of clearly be able to: identified biodiversity targets. For existing mine projects, many of which may have operated for · Avoid unnecessary impacts by the decades, the absence of adequate baseline at the undertaking of informed project design; EIA stage precludes the ready achievement of "no · Avoid unnecessary impacts through an net loss" or NPI. Such operations may attempt to understanding of the project's potential retrospectively identify a baseline but this will be indirect impacts in the wider environment difficult. For new projects, at exploration or pre- and plan accordingly; feasibility stage, the task is more straightforward. · Minimise its impacts through project Nevertheless achieving an adequate baseline will development, construction and ongoing require a clear commitment, one that government operational management; should require as standard for assessing permit · Avoid unnecessary impacts through applications and that the company should obtain informed project design when mine 93 expansion phases are considered; restoration techniques appropriate to the · Achieve optimum outcomes for restoration outcomes identified in the biodiversity and rehabilitation based on best practice values assessment. On the basis of biodiversity impacts being avoided measures for development in Brazil) , it is now where possible and minimised and mitigated receiving considerable cross-sector attention as a key throughout mine operation and restoration to tool for offsetting residual impacts to biodiversity closure, then the application of an appropriate through various types of development, be it mining, offset can be identified. In practice of course, a built development, agriculture or forestry. However, biodiversity offset need not only be identified when "biodiversity offsets" can be potentially abused, a mine is going into closure. Effective and informed should they be used to gain permits where the forward planning can obtain a clear sense of what biodiversity value is so critical that development is the net residual loss of biodiversity may be during either inappropriate because of the significant and the mine cycle, and inform a prior decision as to the lasting losses that will result, or where no like-for- identity and extent of biodiversity action required like offset can be identified to rectify such loss. In to offset such residual loss. It is this practice which addition, loose and undisciplined use of the concept can bring biodiversity offsets into the permitting may become a currency for attaining development process and which is receiving a considerable permits in many inappropriate situations, whether amount of attention at the present time. Permitting they are environmental or social impacts or both. legislation in Brazil and Australia, as discussed As a result there is considerable criticism of the earlier, institutionalise the process of biodiversity approach from some quarters and opposition to its offsetting for development permitting. However, development and mainstream use. it is important that the process of identifying and permitting a biodiversity offset be based on a clear Consequently organisations that are working with set of principles to ensure legitimacy of the concept industry to improve biodiversity outcomes are in serving to safeguard and protect biodiversity. In becoming aware of the need to use offsets only addition such principles will ensure a clear rationale in appropriate circumstances. Some biodiversity that brings transparency to the process and working groups representing a range of stakeholders encourages appropriate stakeholder participation addressing biodiversity planning for specific mining and support. projects recognise the need to identify biodiversity offsets within the rigorous context of the mitigation Biodiversity offsetting hierarchy, and with a clear need to achieve significant positive outcomes for biodiversity that The concept of biodiversity offsetting is gaining may not otherwise be achievable. momentum as a biodiversity and development tool. While as a rough concept it has been in use Development of the concept is also being in various countries in a variety of forms (e.g. progressed by BBOP, a relatively new partnership mitigation banking in the US, compensatory between companies, governments and conservation 94 experts to explore the development of the · Establishing corridors linking protected biodiversity offset concept and how it should be areas and other key sites; implemented in practice to achieve "no net loss" · Establishing buffer zones around protected for biodiversity. Its Secretariat is comprised of areas; Forest Trends, Conservation International and the · Removing invasive species; Wildlife Conservation Society. Technical guidance is · Addressing underlying causes of biodiversity provided by an International Advisory Committee, loss; comprising experts from government (e.g. State · Developing sustainable livelihoods that Government of Victoria, Australia, and USFWS), benefit both local communities and civil society (e.g. TNC, WWF, BirdLife International biodiversity at such sites identified above. and IUCN) and companies in different sectors (e.g. Rio Tinto, Anglo American, Newmont, Shell and Mindful of the risks associated with mainstreaming Insight Investment). biodiversity offsets, BBOP, in order to minimise these risks, takes a strong stance, conveying to BBOP is trying to demonstrate, through the companies that: development of best practice guidelines and a portfolio of pilot projects, that biodiversity · All operations should comply with all offsets can help achieve significantly more, better relevant international, national and and more cost-effective conservation outcomes customary law; than normally occurs in major development · Some projects may be inadvisable given projects. BBOP expects that biodiversity offsets their likely damage to biodiversity and will become a standard part of business practice associated business risk, even if they are for those companies with a significant impact allowed by law; on biodiversity. The routine mainstreaming of · The mitigation hierarchy of avoiding, biodiversity offsets into development practice minimising and mitigating harm to will result in long-term and globally significant biodiversity should be followed prior to conservation outcomes. At the same time, considering offsetting the residual impacts demonstrating "no net loss" of biodiversity will ­ the aim is to achieve "no net loss" to help companies secure their license to operate and biodiversity. manage their costs and liabilities. Furthermore, biodiversity offsets should be BBOP is clear that developers should pursue developed through the identification and biodiversity offsets only at the end of the appreciation of key biodiversity values pertinent mitigation hierarchy, after they have reduced and to the development site. There should be a alleviated residual environmental harm as much rigorous attempt to quantify the residual impacts as possible. Offset activities must demonstrate to determine the amount of offset required. There additional, measurable conservation outcomes. should be a range of appropriate options explored While appropriate offset activities will vary from and there should be stakeholder consultation on the site to site, a range of different land (and marine) identification of the offset, engaging government, management interventions could typically be relevant NGOs and local communities. involved in biodiversity offsets, including: Given that engagement in the offset approach is · Strengthening and supporting ineffective currently voluntary, the private sector is keen to protected areas: stewardship; ensure that their voluntary efforts are regarded as · Safeguarding and supporting unprotected both scientifically credible and socially acceptable. areas; There is therefore interest in BBOP helping design 95 a standard methodology, to provide credibility, its primary impacts, a mine may trigger or facilitate practicality and political support for the approach. other socio-economic developments within its BBOP is therefore developing toolkits to catchment that change land-use patterns and provide guidance on designing and implementing pressures. biodiversity offsets to industry, policy makers, financial institutions and civil society organisations. A mine may develop within one of a range BBOP profiled its draft guidelines at CBD COP 9 of development contexts. Understanding the in Bonn, Germany in May 2008. nature of a particular context will be important in determining the nature of responsibility that a While it is important to maintain a disciplined company, and government, should demonstrate if approach to the identification and use of social and environmental risks are to be minimised. biodiversity offsets, this should not preclude The following questions help assess the nature of creative consideration as to how such a mechanism, the risk: particularly if considered as a legislative tool (such as being developed and implemented in · Is the mine to be located in an area that has Queensland's Eco-Fund (Australia)), can bring real minimal infrastructure? benefits to the national protected area network and · Does it take place within an already well- to wider biodiversity and sustainable development established settlement pattern? interests. With Mongolia's joint aspirations for · Is it within a region with a developing development in the mining and tourism sectors, economy? expanding and bringing support to the national · Is institutional capacity well developed or protected area network could be an exciting area not? for consideration. · Is development planning adequately regulated? Identifying the indirect impacts · Will the proposed mine bring employment associated with mining development and other development benefits to the and the need for Strategic region, significantly beyond what is already Environmental Assessment (SEA) present? · Is the mine development isolated or is it Understandably, most attention on assessing part of a wider national or regional wave of a mine development focuses on the primary development? impacts associated with the mine's "footprint". · Is it dependent on the provision of other The primary impacts can be dramatic, involving resources, such as energy (power), water the mass removal off vast amounts of rock, (pipelines, reservoirs), major transport sometimes removing mountains, or covering facilities (roads, railways, ports)? significant areas of land under waste materials. · Will it provide for these independently However, the "indirect (secondary) footprint" of a and exercise management control, or mine, for which a company and government may in partnership with regional/national share joint responsibility, is frequently ignored or government and other agencies? underestimated. The reality of such an indirect · Are there existing but potentially related impact may take years to manifest, until such development issues in the region? time as the development really establishes itself, · Can the mine contribute to cumulative with considerable accumulative impacts on local impacts? and even regional populations. What follows · Will the mine have the potential to facilitate are often associated impacts on biodiversity at the spread of invasive species into/ considerable distance from the mine itself. Beyond throughout the region? 96 · Will the mine development be adjacent or In many countries to date, mine, infrastructural near wilderness areas or protected areas? and other developments are frequently assessed · Are there globally threatened species and progressed in isolation. However, just as conservation issues within the region? individual mining projects are not conceived in isolation, particularly where regional development Mine developments can trigger unintended impacts initiatives are responsive to increasingly global in a variety of ways: commodity and energy markets, so their environmental and social impacts should be · Through ancillary roads, provide access into considered on a similar, wider scale. In today's areas that were previously inaccessible. e.g. increasingly globalised environment, where even exploration tracks can provide new access some of the most remote areas are influenced by to loggers and herders and farmers; commodity and energy demands experienced in · Through creating a perception of newly developing and developed regions of the world, available employment, or by creating there is a clear need for strategic environmental settlements that require a variety of assessment that can underpin and inform regional services, effect the in-migration of planning initiatives. An example that BirdLife peoples not previously associated with International is currently engaged with is in the area; Namibia, where the global demand for uranium · The expanded population can pressurise has increased to trigger a national "uranium rush", regional resources at local levels. e.g. which is poised to have significant regional effects fuelwood, charcoal, meat from wild animals, on the socio-economic environment and on the recreational and commercial hunting and unique biodiversity and landscapes associated trapping; with the central Namib desert (which underpins · Where dependent on other resource Namibia's leading tourism industry). There is developments, the mine becomes associated currently a belated but nevertheless welcome and identified with wider national scramble to develop an SEA for the region, led by development initiatives, such as road and the Chamber of Mines of Namibia and supported port development or hydroelectricity and by the growing number of mining companies other energy provision schemes; arriving in the area and by a rapidly growing · Such developments may pressurise local stakeholder community. resources accumulatively, leading to local or regional habitat degradation, To this end, this section ends with a recommen- transforming high quality biodiversity dation for developing Strategic Environmental resources into highly developed Assessments at both regional and national levels landscapes; within Mongolia, if the advantages to develop- · In addition, in-migrating populations with ment are to be fully realised, while the risks associ- high expectations may suffer from a range ated with it to biodiversity and culture are to be of social problems if these expectations avoided and minimised. Such SEAs will benefit cannot be met; from the development of the following: · Changes in levels of regional development can impact local communities negatively · Biodiversity resource mapping: priority- as well as positively, if no socio-economic setting; planning occurs; · Ecosystem services mapping; · Pressure on communities can in turn put · Industrial development dependencies ­ additional pressure on biodiversity (greater power/energy, water, etc.; affluence and greater poverty). 97 9.2 Examples of best practice · Settlement services ­ energy, water, with regard to tourism agricultural products, etc.; · Institutional mapping and stakeholder IUCN guidelines for tourism in protected areas analysis; · Analysis of the wider development IUCN's Guidelines for Tourism in Parks and Protected environment; Areas of East Asia (Eagles et al. 2001) provide an · Wide stakeholder engagement; excellent basis for developing sustainable tourism · Options analysis ­ alternate sustainable plans for protected areas in the region. Table 26 developments; alternate locations; outlines the principal steps for formulating such · Development of integrated cross-sectoral plans, as recommended by IUCN, together with planning frameworks ­ decision making suggestions on how these could be applied in the institutions and issues (cultivating 'joined- Mongolian context. As the guidelines stress "some up thinking'); items, such as creating an inventory of natural, · Lastly, it would not be inappropriate to cultural and tourism resources, are best placed in consider the potential effects of climate the early planning stages. If tourism development change. is already in progress without a plan, it is never too late to incorporate steps from the checklist in an attempt to better plan for development and associated impacts". Table 26: Steps for formulating sustainable tourism development plans for protected areas recommended by IUCN and their application to Mongolia Recommended step Application to Mongolia 1. State clear objectives for IUCN provides useful guidance (adapted from FNNPE 1993) on what these sustainable tourism for objectives might cover that is highly relevant to Mongolia. each park. Environmental objectives might include: (1) ecological conservation, including conservation of biodiversity; (2) land conservation; (3) watershed management; and (4) and air quality maintenance. Cultural objectives might include: (1) better knowledge and awareness of conservation among local people and visitors; (2) appreciation of local natural and cultural heritage; and (3) making sustainable tourism part of local and national culture. Social objectives might include: (1) visitor satisfaction and enjoyment; (2) improvement of living standards and skills of local people; (3) demonstration of alternatives to mass and package tourism and promotion of sustainable tourism everywhere; and (4) enabling all sectors of society to have the chance to enjoy protected areas. Economic objectives might include: (1) improvement of the local and national economies; (2) provision of local business and employment opportunities; and (3) generation of increased revenue to maintain protected areas. 98 Recommended step Application to Mongolia 2. Compile an inventory The conservation importance of a protected area will vary from site to site, as of natural and cultural will the extent to which this resource is vulnerable to tourism development. features, as well as of It is important, for example, to document the presence of breeding and existing tourism use moulting water birds, and ranging requirements of ungulates. This knowledge and potential. Map and is essential for protected area planning and impact assessment. analyse the information. Detailed inventories are not essential, and can be built up over time, providing systems are in place to store and recover data. Local knowledge is often the best and quickest starting point. 3. Involve local people. Perhaps more than in any other country in East Asia, both the tourist experience and the provision of tourist services in Mongolia are dependent on the involvement of local people. They need to be involved in the planning and provision of sustainable tourism and tour operators and government agencies need to ensure they derive real benefits. Opportunities should be taken to outsource the purchase of goods and services from local communities, and to link them to the supply chain where local communities themselves have invested in gers for tourists. 4. Work in partnership with Partnerships between protected area authorities, tour operators and local local people, the tourism communities are essential. Given that a high proportion of visitors to protected sector and other regional areas in Mongolia are on organised tours it is important that their operations are and local organisations. sensitive to the environmental and cultural features of the site, follow protected area rules, and provide accurate and up-to-date information to visitors. Useful guidelines for tour operators have been produced by the Tourism Council of Australia (1999) and the Ecotourism Society (1993). The latter provides guidance on inter alia pre-departure programs, guiding programs, monitoring programs, management programs, and local accommodation. IUCN have adapted the Ecotourism Society guidelines, to focus on the following: (1) prepare travellers in advance of their trip by providing advice in advance on how negative impacts can be minimised, and how to interact with local cultures; (2) minimise negative visitor impacts by offering literature and briefings, leading by example, taking corrective actions, maintaining small enough tour groups, and avoiding areas that are under-managed and over- visited; (3) minimise nature tour company impacts by ensuring that managers and staff know and participate in all aspects of company policy to prevent negative impacts; (4) provide training to managers and staff in programs that will upgrade their ability to communicate with and manage clients in sensitive natural and cultural settings; (5) contribute to conservation of the regions being visited; (6) provide competitive local employment in all aspects of business operations; and (7) offer site-sensitive accommodation that is not wasteful of local resources or destructive to the environment and that provide ample opportunities for learning about the environment and sensitive interchange with local communities. It is essential that any guidelines developed are brought together in a participatory way to maximise the chances of ownership, adherence and self- regulation. 99 Recommended step Application to Mongolia 5. Utilise zoning to identify As previously discussed, zoning of protected areas to accommodate tourism and plan for areas where is critical. Zoning needs to be specific in covering access, use of vehicles, higher levels of tourism location of ger camps, suitable camping places and access to water, and impacts may occur visitor hotspots. Zoning needs to give primary consideration to areas that are without harming areas of especially sensitive from a wildlife point of view, and where soils and water ecological significance. supplies are especially vulnerable. It is important that zoning is as simple as possible, and translatable into management actions and visitor materials that are easy to understand and comply with. Advising on tourism development in Western Mongolia, Wigsten (2005) has commented that if ger camps are to be permitted within protected area boundaries they should not be allowed to develop freely, and that certain standards should be followed, including: (1) no concrete floors: gers should rest directly on the ground, as is the case for all herdsmen; (2) parking places should be kept at a distance from gers and the access road should be thought out; (3) windmills and solar panels should be used for power generation, and not diesel generators; (4) there should be a maximum 14 gers for guests, so that the site is manageable, possible to run with composting toilets, basic shower devices and solar and wind power generation for the freezer; (5) the tour company should demonstrate a readiness to buy meat and milk products from local people, hire their animals, and provide employment; (6) there should no flush toilets - long drop dry composting toilets should be used, kept 60m away from a water source; (7) staff (usually young and urban) should not be allowed to play loud music; and (8) gers should not be located at prime tourist attractions, but situated in such a way that visitors need to travel from the camp to the main attractions and therefore stay for longer at the camp. According to Wigsten, the above works well at some existing sites in Mongolia (i.e. Jalman Meadows and Arburd Sands in Tov aimag, Dungenee in Omnogobi aimag and Delger Ger Camps in Bulgan aimag). Wigsten's company, Nomadic Journeys, offers US$ 5 per person per night additional payment to ger camp owners that offer the above low impact services. Unfortunately, water conservation management and the development of low impact ger camps, such as those described above, are discouraged by current EIA processes performed by environmental inspectors at aimag level. Ger camps owners who do not put up sign posts to their ger camps, do not provide flush toilets and western style showers (with running tap water) are not getting so-called "flowers" certification, and are required to pay penalties every year for not conforming to these regulations. Moreover, there is no incentive for investing in the more expensive solar panels and windmills, rather than diesel generators (J. Wigsten in litt. 2008). 6. Develop the limits of Each protected area should determine the limits of acceptable use and this acceptable use for all should be incorporated in the management plan for each site. This will need parts of the protected to be based on the best available information and best judgement by those area, set environmental knowledgeable about the area. Once levels of acceptable use are established, standards, and ensure environmental standards need to be set and then monitored. they are met. 100 Recommended step Application to Mongolia 7. Determine which tourism Related to Step 6, and informed by Step 2, each protected area should activities are compatible consider what activities are compatible with the sites natural values, and what with the protected area would not be compatible based on experience elsewhere in the country. As and which are not, and with Step 6, this will need to be based on the best available information and develop related policies. best judgement by those knowledgeable about the area. 8. Assess the environmental, Development of tourist infrastructure, both inside and outside of protected economic, social and areas, is covered by the legal requirement for EIAs, which sets out the process cultural impacts of for screening new projects, and the contents for environmental protection proposals for tourism plans where these are needed. Where major developments are planned, these development should be subject to extensive public consultation. EIAs should be informed by the values identified by Step 2. 9. Develop education and Critical to the success of any protected area is the need to develop education interpretation programs and interpretation programs for visitors and local people. These should aim for visitors and local to increase awareness about the natural and cultural values of an area, affect people that increase visitor behaviour of visitors in order to minimise any impact, explain the understanding and objectives of protected area management, and alert the visitor to the sites appreciation of the area's main attractions and how they might be reached and experienced environment, culture, heritage and important At sites where there is limited or no management capacity, codes of conduct issues. for visitors should be developed and made available though brochures and signs. These codes need to brief, provide clear guidance on conduct, and provide reasoning for what is expected of the visitor. At certain sensitive sites, where globally threatened or otherwise sensitive species are present, it should be a requirement that certified guides accompany tourists in these places, and charges should be levied for this, and paid to the protected area. 10. Design methods The problem of disturbance has been highlighted above, and this is best dealt to channel visitors with through the use of methods to channel visitors. through desired areas with minimal negative These might be trails, blinds or hides for observing wildlife, or natural impacts. observation points. These should be located with caution, and with the interests of the target species taking priority. Structures should be kept simple and easy on the landscape. The IUCN guidelines advise that trails should be easy to find, take visitors to interesting or well-known features, be of varying distances allowing for short and longer duration trips, be easier to walk on than surrounding land, be contoured on hills, be circular, be clearly marked especially at junctions, and avoid very sensitive habitat or species. Where possible, trail guides and simple maps should be available. 11. Survey and analyse tourist Tour operators and protected area managers should collaborate to determine markets and visitors' needs visitors' needs and expectation, under the guidance of the Tourism and expectations. Ideally, Department. this occurs both before and after developing ideas for new forms of tourism. 101 Recommended step Application to Mongolia 12. Brainstorm tourism Protected area staff should take the opportunity of visits by tour companies products to be potentially to discuss the values, and tourism opportunities, for their protected areas, developed and influence and how these might be developed and promoted as attractions with due types of visitors choosing consideration given to conservation priorities. Outside assistance will likely be to visit. Identify the needed in the development of promotional strategies and materials. values and image of the protected area on which to base sustainable tourism and outline a promotional strategy for them. 13. Establish a program for Simple monitoring systems can be designed, that can involve protected area monitoring the protected staff and local communities. Monitoring schemes should cover key species area and its use by and habitats, management activities and use of the protected area by visitors visitors. At appropriate (e.g. arrival date, duration of stay, group size, nationality, name of the tour intervals evaluate the operator, and any impacts on the area). success of the plan in ensuring that tourism use maintains environmental standards. Revise the plan as needed. 14. Assess resource needs Capacity development and a shortage of financial resources have already and sources, including been identified as major limiting factors in the sustainable management of provisions for training. protected areas. An assessment of requirements, extending beyond tourism- related needs, will help managers to push for a greater allocation of resources. Stressing the links between protected areas, growth in tourism, and overall economic development, provide an important basis for making the case for more resources. 15. Implement the plan. All too often, plans sit on shelves, with more time and resources invested in their preparation than there implementation. Plans need to be used in planning activities, preparing budgets, assigning staff, and reporting on progress. Their implementation needs to be monitored regularly. 102 Australian example of a funding mechanism to the strategy were able to make alliances across support a national ecotourism strategy sectors and access funds. The funding mechanism enabled different stakeholders to work together on In 1994, the Australian tourism industry developed implementing the strategy, according to their own a National Ecotourism Strategy. This strategy strengths and interests. contained 12 programme areas, covering 12 key ecotourism issues, such as integration of indigenous Such a fund could be developed in Mongolia, people into tourism, trail development, etc. This where there is considerable scope for strategic strategy was developed entirely by the private partnerships between private sector tourism sector. However, once the Australian government companies, conservation organisations and saw that there was consensus within the industry, protected area management authorities. It would fill it backed the National Ecotourism Strategy with a gap in donor funding for tourism development, an allocation of AUD 10 million over four years. which has concentrated on overseas marketing This mechanism meant that companies, civil and community-based tourism, while conservation society organisations or other stakeholders who issues and spatial planning have yet to be addressed wished to address any of the issues identified in (J. 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Nationally protected areas in Mongolia No. Site name Year(s) designated GIS area (ha) Official area (ha) Strictly Protected Areas 1 Bogd Khan Uul 1778/1957/1978 41,383 41,651 2 Dornod Mongol 1992 615,732 570,374 3 Great Gobi "A" 1975 4,644,091 5,311,730 4 Great Gobi "B" 1975 921,551 5 Khan Khentii 1992 1,233,351 1,227,074 6 Khasagt Khairkhan 1965 31,854 27,448 7 Khokh Serkhiin Nuruu 1977 74,474 65,920 8 Khoridol Saridag 1997 227,968 188,634 9 Mongol Daguur "A" 1992 85,085 103,016 10 Mongol Daguur "B" 1992 18,617 11 Nomrog 1992 333,155 311,205 12 Otgontenger 1992 96,620 95,510 13 Small Gobi "A" 1996 1,166,346 1,839,176 14 Small Gobi "B" 1996 695,036 15 Uvs Lake 1993/1995 462,503 16 Altan Els 1993/1995 171,203 712,545* 17 Tsagaan Shuvuut 1993/1995 34,624 18 Turgen 1993/1995 133,810 National Parks 1 Altai Tavan Bogd 1996 623,220 636,161 109 No. Site name Year(s) designated GIS area (ha) Official area (ha) 2 Dariganga 1993/2004 70,086 62,860 3 Gobi Gurvan Saikhan 1993/2000 2,680,819 2,694,307 4 Gorkhi-Terelj 1993 292,010 293,168 5 Ikh Bogd Uul 2007 262,858 282,931 6 Khan Khokhii 2000 214,331 555,924** 7 Khyargas Lake 2000 374,746 8 Khangain Nuruu 1996 889,986 888,455 9 Khar Us Lake 1997 862,014 850,272 10 Khogno Tarna 2003 78,798 84,390 11 Khorgo Trekhiin Tsagaan Nuur 1965/1995 85,007 77,267 12 Khovsgol Lake 1992 848,828 838,070 13 Khustain Nuruu 1993/1998 57,341 50,620 14 Moltsog Els 1993/1998 488 15 Munkhkhairhan Uul 2006 308,230 300,000 16 Myangan Ugalzat 2002 63,129 60,000 17 Noyon Khangai 1998 59,162 59,088 18 Onon Balj "A" 2000 291,814 402,100 19 Onon Balj "B" 2000 102,881 20 Otkhonii Khundii 2006 92,955 90,000 21 Siilkhem "A" 2000 77,843 142,778 22 Siilkhem "B" 2000 76,647 23 Tarvagatai Nuruu 2000 557,447 545,609 24 Tsambagarav 2000 113,012 111,462 25 Tujiin Nars 2002 70,864 80,691 26 Ulaantaiga 2003 108,832 108,000 Nature Reserves 1 Alag Khairkhan 1996 36,100 36,400 2 Batkhan 1957/1995 21,759 21,850 3 Bulgan River 1965/1995 11,892 7,657 4 Burkhan Buudai 1996 51,571 52,110 5 Develiin Aral 2000 10,022 10,338 6 Ergeliin Zoo 1996 57,581 60,910 7 Ikh Gazriin Chuluu 2003 34,096 35,000 8 Ikh Nartiin Chuluu 1996 70,088 43,740 9 Khanjargalant Uul 2003 62,971 60,000 10 Khar Yamaat 1998 51,274 50,594 110 No. Site name Year(s) designated GIS area (ha) Official area (ha) 11 Lkhachinvandad 1964/1995 55,382 58,800 12 Nagalkhan 1957/1995 4,806 3,076 13 Namnan Uul 2003 29,709 29,600 14 Sharga 1993 320,046 390,071 15 Mankhan 1993 84,701 16 Tesiin Gol 2006 108,589 101,000 17 Toson Khulstai 1998 471,937 469,928 18 Ugtam 1993 42,595 46,160 19 Yahi Lake 1998 248,672 251,388 20 Zagiin Us 1996 283,832 273,606 Monuments 1 Bulgan Uul 1965/1995 2,002 1,840 2 Dayandeerkhiin Agui 2006 31,303 28,000 3 Eej Khairkhan 1992/1995 22,904 22,475 4 Khuisiin 8 Lake 1992/1995 11,158 11,500 5 Khurgiin Hundii 2004 6,109 6,000 6 Shiliin Bogd 2004 18,152 17,200 7 Suikhent Uul 1996 7,717 4,830 8 Uran Togoo-Tulga Uul 1965/1995 5,420 5,800 TOTAL 22,413,136 21,808,309 Data sources: WWF Mongolia and MNE; GIS areas calculated from polygons provided by WWF Mongolia Notes: * = the official area is a combined figure for Uvs Lake, Altan Els, Tsagaan Shuvuut and Turgen, which are under a common management body; ** = the official area is a combined figure for Khan Khokhii and Khyargas Lake, which are under a common management body; = the official area is a combined figure for Khustain Nuruu and Moltsog Els, which are under a common management body; = the official area is a combined figure for Sharga and Mankhan, which are under a common management body. 111 Annex 2. Locally protected areas in Mongolia No. of Local Aimag-level Soum-level Area of Local Aimag Unknown level SPAs Local SPAs Local SPAs SPAs (ha) Arkhangai 30 3 27 0 552,375 Bayankhongor 36 19 2 15 2,817,750 Bayan-Olgii 14 5 9 0 126,632 Bulgan 3 3 0 0 49,173 Darkhan Uul 16 4 12 0 56,830 Dornod 57 57 0 0 3,211,381 Dornogobi 95 15 80 0 49,870 Dundgobi 134 11 117 6 470,785 Gobi-Altai 43 5 33 5 759,360 Gobi-Sumber 0 0 0 0 0 Khentii 35 10 24 1 680,742 Khovd 10 7 3 0 257,499 Khovsgol 127 124 3 0 530,492 Omnogobi 23 8 11 4 2,149,805 Orkhon 1 1 0 0 3,544 Ovorkhangai 15 11 3 1 104,888 Selenge 51 47 3 1 277,222 Sukhbaatar 56 28 27 1 2,461,656 Tov 145 131 2 12 1,413,616 Ulaanbaatar 12 1 11 0 41,054 Uvs 14 0 14 0 379,686 Zavkhan 20 2 18 0 137,145 TOTAL 937 492 399 46 16,531,505 Data source: WWF Mongolia, TNC and ALAGC. 112 Annex 3. Internationally protected areas in Mongolia Ramsar Sites in Mongolia Area not Year Official GIS area Site name Mongolian protection status protected designated area (ha) (ha) (ha) Mongol Daguur 1997 210,000 325,221 Partially protected 155,393 (Mongolian Dauria) (Mongol Daguur Strictly Protected Area and four Local SPAs) Ogii Lake 1998 2,510 3,859 Partially protected (Local SPA) 720 Terkhiin Tsagaan 1998 6,110 7,277 Fully protected (Khorgo Trekhiin 0 Lake Tsagaan Nuur Natural Park) Valley of Lakes 1998 45,600 62,306 Partially protected (two Local 7,289 SPAs) Airag Lake 1999 45,000 45,799 Partially protected (Khyargas 12,772 Lake National Park) Khar Us Lake 1999 321,360 374,147 Partially protected (Khar Us Lake 26,851 National Park National Park) Lake Achit and its 2004 73,730 100,133 Partially protected 91,955 surrounding wetlands (Develiin Aral Nature Reserve) Lake Buir and its 2004 104,000 106,305 Partially protected 16,767 surrounding wetlands (two Local SPAs) Lake Ganga and its 2004 3,280 31,595 Partially protected 1,390 surrounding wetlands (Dariganga National Park) Lakes in the Khurkh- 2004 42,940 36,478 Partially protected (Local SPA) 33,929 Khuiten river valley Lake Uvs and its 2004 585,000 602,478 Partially protected 108,004 surrounding wetlands (Uvs Lake Strictly Protected Area and Tesiin Gol Nature Reserve) TOTAL 1,439,530 1,695,598 455,069 Data source: Ramsar Convention Secretariat; GIS areas calculated from polygons provided by scientists at the Mongolian Academy of Sciences who originally proposed the sites for Ramsar designation. 113 World Heritage Sites in Mongolia Year Area not Site name Area (ha) Mongolian protection status designated protected (ha) Uvs Nuur Basin (natural 2003 810,234 Partially protected 16,191 site) (excluding (Altan Els, Tsagan Shuvuut, Turgen 258,619 in and Uvs Lake Strictly Protected Areas Russia) and Tesiin Gol Nature Reserve) Orkhon Valley (cultural 2004 121,967 Partially protected 13,490 site) (Khangain Nuruu and Otkhonii Khundii National Parks) TOTAL 932,201 29,681 Data source: UNESCO. Biosphere Reserves in Mongolia Year Total area Core area Area not Site name Mongolian protection status designated (ha) (ha) protected (ha) Great Gobi 1990 5,300,000 985,000 Fully protected (Great Gobi 0 Strictly Protected Area) Bogd Khan 1996 67,300 41,651 Fully protected (Bogd Khan Uul 0 Uul Strictly Protected Area) Uvs Nuur 1997 771,700 366,080 Fully Protected (Uvs Lake Strictly 0 Basin Protected Area) Khustain 2002 778,000 50,000 Fully Protected (Khustain Nuruu 0 Nuruu National Park) Dornod 2005 8,429,072 570,374 Fully Protected (Dornod Mongol 0 Mongol Strictly Protected Area) Mongol 2007 732,000 51,400 Fully Protected (Mongol Daguur 0 Daguur Strictly Protected Area) TOTAL 16,078,072 2,064,505 0 Data source: UNESCO. 114 Annex 4. Natural sacred sites in Mongolia No. Site name Level Aimag(s) Mongolian protection status 1 Suvraga Khairkhan Regional Arkhangai Fully protected (Khangain Nuruu National Park) 2 Tsogt Sumber Aimag Arkhangai Fully protected (Khangain Nuruu National Park) 3 Ikh Bogd Uul Aimag Bayankhongor Fully protected (Ikh Bogd Uul National Park and Ikh Khalbagant Local SPA) 4 Khongorkhairkhan Aimag Bayankhongor 5 Khureemandal Aimag Bayankhongor (Edenemandal) 6 Noyonkhairkhan Aimag Bayankhongor Fully protected (Khangain Bus Local SPA) 7 Olziit Uul Aimag Bayankhongor 8 Altai Tavan Bogd Uul Aimag Bayan-Olgii Fully protected (Altai Tavan Bogd National Park) 9 Tsambagarav Regional Bayan-Olgii, Fully protected (Tsambagarav National Park) Khovd 10 Bulgan Uul Aimag Bulgan 11 Khognokhan Regional Bulgan, Tov Fully protected (Khogno Tarna National Park) 12 Darkhan Uul Aimag Darkhan Uul 13 Naidag Uul (Haliar) Aimag Darkhan Uul 14 Noyon Khongor Aimag Darkhan Uul 15 Ikh Burkhant Regional Dornod 16 Bayanbogd Aimag Dornogobi Fully protected (Bayanbogd Local SPA) 17 Shariliin Ovoo Aimag Dornogobi 18 Baga Gazriin Chuluu Aimag Dundgobi Fully protected (Baga Gazriin Chuluu Local SPA) 19 Gurvansaikhan Uul Aimag Dundgobi Fully protected (Tevsh, Baruun, Dund, Zuun Saikhan Uul Local SPA) 20 Ikh Gazriin Chuluu Aimag Dundgobi Fully protected (Ikh Gazriin Chuluu Local SPA) 21 Ikh Khongor Aimag Gobi-Sumber 22 Otsol Sansar - Choiriin Regional Gobi-Sumber 23 Eej Khairkhan Aimag Gobi-Altai Fully protected (Eej Khairkhan Monument) 24 Bereeven Khiid Regional Khentii 25 Burkhankhaldun National Khentii Fully protected (Khan Khentii Strictly Protected Area) 26 Ondorkhaan Aimag Khentii Fully protected (Ondorkhaan Local SPA) 115 No. Site name Level Aimag(s) Mongolian protection status 27 Dayan Deerkhiin Agui Aimag Khovsgol Fully protected (Dayan Deerkhiin Khureenii Suuri Local SPA) 28 Nuuriin Khuis - Khovsgol Aimag Khovsgol Fully protected (Khovsgol Lake National Park) 29 Oliin Ovoo Aimag Khovsgol 30 Renchinlhumbe Uul Aimag Khovsgol 31 Gurvansaikhan Aimag Omnogobi Fully protected (Gobi Gurvan Saikhan National Park) 32 Bayan Ondur Aimag Orkhon 33 Batkhan Regional Ovorkhangai, Fully protected (Bakhan Nature Reserve) Tov 34 Ikh Baga Khangain Ovoo Regional Ovorkhangai Fully protected (Otkhonii Khundii National Park and Kharkhorin Local SPA) 35 Amarbayasgalant Aimag Selenge 36 Tovkhon Khan Aimag Selenge Fully protected (Tovkhon Khan Local SPA) 37 Altan Ovoo Regional Sukhbaatar Fully protected (Dariganga National Park) 38 Darkhan Khan Regional Sukhbaatar 39 Monkhkhaan Aimag Sukhbaatar 40 Lamtnii Ovoo Aimag Tov Fully protected (Bogd Khan Uul Strictly Protected Area) 41 Bogd Khan Uul National Ulaanbaatar Fully protected (Bogd Khan Uul Strictly Protected Area) 42 Khan Khokhii Aimag Uvs 43 Tsagaan Ergiin Ovoo Aimag Uvs 44 Ulaan Uul (Ulaangom) Aimag Uvs 45 Altan Els Aimag Zavkhan 46 Bayasgalant Aimag Zavkhan 47 Otgontenger National Zavkhan Fully protected (Otgontenger Strictly Protected Area) Data source: ARC and WWF Mongolia. 116 Annex 5. Important Bird Areas in Mongolia IBA criteria met Area not Total area No. Site name Aimag(s) protected A1 A2 A3 A4i A4iii (ha) (ha) 1 Khoton-Khorgon Lakes Bayan-Olgii X X X X 19,629 0 2 Tsengel Khairkhan Bayan-Olgii X X X 52,726 52,726 Mountain 3 Dayan Lake Bayan-Olgii X X X X 13,537 0 4 Bulgan River Khovd X 32,700 29,197 5 Khokh Serkhiin Nuruu Bayan-Olgii, X X X 74,502 8,365 SPA Khovd 6 Tolbo Lake Bayan-Olgii X X X 16,334 9,342 7 Achit Lake Bayan-Olgii, Uvs X X X 98,278 88,272 8 Uureg Lake Uvs X X X 28,308 28,308 9 Uvs lake Uvs X X X X 502,462 49,319 10 Baga and Bayan Lakes Uvs X X 5,317 749 11 Uvsiin Khar Us Lake Uvs X X 13,601 13,601 12 Airag Lake Uvs X X X X 73,348 13,653 13 Khongil Khovd X 6,027 4,939 14 Khar Us Lake Khovd X X X X 297,265 38,272 15 Jargalant Khairkhan Khovd X X X 162,264 18,019 Mountain 16 Khar Lake Zavkhan, Khovd X X 83,798 3,701 17 Khomiin Tal Zavkhan, Khovd X X X 78,059 73,644 18 Santmargatsiin Bayan Zavkhan X X 14,205 14,205 Lake 19 Ulaagchinii Khar Lake Zavkhan X 13,439 13,439 20 Oigon Lake Zavkhan X X 20,189 20,189 21 Telmen Lake Zavkhan X X X 24,175 24,175 22 Otgontenger Mountain Zavkhan X X X X 88,753 4,733 23 Zavkhan River - Ereen Gobi-Altai X X 65,735 63,205 Lake 24 Khasagt Khairkhan Gobi-Altai X X 28,309 3,597 Mountain 25 Taigam Lake Gobi-Altai X X 4,170 3,243 26 Boon Tsagaan Lake Bayankhongor X X X 43,262 3,588 27 Ikh Bogd Mountain Bayankhongor X X 86,440 0 28 Orog Lake Bayankhongor X X X 20,195 0 29 Taatsiin Tsagaan Lake Ovorkhangai X X X 12,385 12,385 117 IBA criteria met Area not Total area No. Site name Aimag(s) protected A1 A2 A3 A4i A4iii (ha) (ha) 30 Khangain Nuruu Arkhangai, X X 897,840 33,034 National Park Bayankhongor, Ovorkhangai 31 Terkhiin Tsagaan Lake Arkhangai X X 21,072 2,676 32 Khovsgoliin Sangiin Khovsgol, X X 25,194 25,175 Dalai Lake Zavkhan 33 Erkhel Lake Khovsgol X X X 3,537 1,055 34 Darkhad Depression Khovsgol X X X 195,223 187,117 35 Khovsgol Lake Khovsgol X X 380,212 33 36 Bulgan Tal Khovsgol X 40,445 40,420 37 Teshigiin Olon Lakes Bulgan X X 5,774 5,774 38 Airkhan Lake Khovsgol, Bulgan X X 7,212 7,212 39 Tarialan Khovsgol X X 31,630 31,630 40 Selenge - Teel Bulgan X X 18,568 18,568 41 Sharga Lake Bulgan X X 2,118 2,118 42 Ogii Lake Arkhangai X X X 10,189 6,998 43 Dashinchilen Bayan Lake Bulgan X X 1,598 1,598 44 Erdenesant Mountains Tov X X X 34,776 34,323 45 Ulziitiin Sangiin Dalai Ovorkhangai X X X 1,491 1,491 Lake 46 Govi Gurvan Saikhan Omnogobi X X X 544,794 25,583 Mountain 47 Borzon Gobi Omnogobi X X 399,467 45,483 48 Galba Gobi Omnogobi X X 828,328 530,865 49 Ikh Gazriin Chuluu Dundgovi X 9,300 2,142 50 Ikh Nartiin Chuluu Dornogovi X X 66,601 7,606 Nature Reserve 51 Eej Khad Tov X 36,867 36,828 52 Khustain Nuruu National Tov X X 49,932 690 Park 53 Selengiin Tsagaan Lake Selenge X X 17,143 16,970 54 Delta of Orkhon and Selenge X X 21,405 19,203 Selenge Rivers 55 Khan Khentii SPA Tov, Khentii, X X 1,234,755 8,059 Selenge 56 Gorkhi-Terelj National Tov X X 293,937 1,762 Park 118 IBA criteria met Area not Total area No. Site name Aimag(s) protected A1 A2 A3 A4i A4iii (ha) (ha) 57 Maikhant Mountain Khentii, X 42,015 35,530 Dornogobi 58 Valleys of Khurkh- Khentii X X 35,722 31,302 Khuiten Rivers 59 Onon-Balj Khentii, Dornod X X X 104,841 25,797 60 Khar Yamaat Nature Khentii, X 51,404 3,792 Reserve Sukhbaatar 61 Ganga Lakes Sukhbaatar X X X 26,841 753 62 Shaazan Lake Dornod X X 5,485 164 63 Tsengeleg Lakes Dornod X X X 8,877 768 64 Turgen Tsagaan, Zegst, Dornod X 35,282 24,860 Tuulaitiyn Bur 65 Ugtam Nature Reserve Dornod X X 46,162 6,111 66 Mongol Daguur Dornod X X X 309,440 176,614 67 Khukh Lake Dornod X X X X 11,548 0 68 Buir Lake Dornod X X X 90,476 12,214 69 Tashgain Tavan Lakes Dornod X X X 53,304 53,304 70 Nomrog Dornod X X 378,097 49,376 TOTAL 8,358,313 2,109,867 Data source: WSCC. 119 Annex 6: Regulatory framework for environmental protection M ongolia has a long tradition of Law of Mongolia on Environmental Protection environmental protection legislation, dating back to Chinggis Khan's 13th The purpose of the Law of Mongolia on century legal code, the Ikh Zasag, Environmental Protection (promulgated on 30 which prohibited, among other things, the pollution March 1995) is to "regulate relations between the of water and the destruction of soil (Khamaganova State, citizens, economic entities and organizations 2001 cited in Farrington 2005). in order to guarantee the human right to live in a healthy and safe environment, an ecologically Since the introduction of a democratic system of balanced social and economic development, the government in 1990, Mongolia has introduced protection of the environment for present and several key pieces of legislation related to future generations, the proper use of natural environmental protection, including the resources and the restoration of available resources" Constitution of Mongolia (1992), and Laws on (Article 1). Environmental Protection (1995), Environmental Impact Assessments (1998), Special Protected Article 4 imposes on citizens certain duties with Areas (1994), Buffer Zones (1997), Land (2002) and regard to protecting the environment, while also Forests (2007). However, there remain a number of granting them certain key rights in this regard, important gaps and limitations. including "to bring claims for compensation for damage to their property or health resulting from The Constitution of Mongolia adverse environmental impact against the person responsible for causing the damage" (4.1.1) and The fundamental rights of Mongolian citizens "to commence legal action against persons whose are set out in the Constitution of Mongolia, conduct causes adverse environmental impact adopted on 13 January 1992. These include "the and jeopardises the enforcement of legislation on right to a healthy and safe environment, and to environmental protection" (4.1.2). be protected against environmental pollution and ecological imbalance" (Article 16.1.2). The Article 6 clarifies ownership of natural resources. constitution imposes on its citizens a sacred According to this article, "the land, its underground duty "to protect nature and environment" resources, forests, water, animals, plants and (Article 17.2), and empowers the government other natural resources shall be protected by "to undertake measures on the protection of the State and... ...unless owned by citizens of the environment and on the rational use and Mongolia, shall be the property of the State" (6.1), restoration of natural resources" (Article 38.2.4). and "unless otherwise provided by law, citizens, More specifically, the constitution imbues the economic entities, organizations, foreign citizens state with the right to "hold responsible the and legal persons may use natural resources upon landowners in connection with the land, to the payment and collection of relevant fees in exchange or take it over with compensation on accordance with any contract, special permit, or the grounds of special public need, or confiscate licence" (6.2). the land if it is used in a manner adverse to the health of the population, the interests of Article 14 confers a number of powers on environmental protection or national security" the government with regard to environmental (Article 6.4). protection, including the power "to prohibit 120 citizens, economic entities and organizations from Article 34 provides for economic incentives to conducting production and other activities which companies to protect the environment, by such would have an adverse effect on human health means as "the introduction of modern non-polluting and the environment regardless of the form of and non-waste technology, progressive methods for ownership" (14.1.3). environmental protection, the use and restoration of natural resources, and the reduction of adverse Article 16 confers on aimag (or capital city) environmental impacts" (34.1.1). The carrot of Citizens' Representative Khurals the power to Article 34 is combined with the stick of Article 35, establish Local SPAs. Specifically, they are granted which provides for fees and payments for the use the power to "make decisions on putting items of natural resources, and for compensation in the not under special State environmental protection event that usage of natural resources or discharge under local protection and to establish boundaries of wastes or pollutants exceeds the limits permitted and protection regimes and to supervise their by contract and licence. Moreover, Articles 37 and implementation" (16.1.3). 38 provide for compensation and fines to be paid by companies and individuals causing direct damage Article 25 places a general obligation on citizens, to the environment and natural resources as a result economic entities and organisations using natural of unlawful conduct. resources for commercial purposes (i.e. including mining and tourism) to "maintain and enhance the Law of Mongolia on Environmental Impact land and environment if natural resources are used" Assessments (25.1.2). Provision for EIAs is made by Article 7 of the 1995 Articles 26 and 27 concern the appointment, rights Law on Environmental Protection. This provision and duties of State environmental inspectors. is expanded upon by the Law of Mongolia on Specifically, State environmental inspectors are Environmental Impact Assessments (promulgated conferred the authority "to require citizens, on 22 January 1998), the purpose of which is economic entities and organizations to eliminate to "regulate relations concerning protection of adverse impacts or to suspend their activities the environment, prevention of the ecological for a certain period of time if they adversely misbalance, the use of natural resources, assessment affect the environment in breach of legislation of the environmental impact and decision-making on environmental protection, standards and on the start of a project" (Article 1). permissible maximum levels" (27.1.3) and "to impose administrative penalties on those in breach Article 4 sets out the process for screening new of legislation on environmental protection as projects, explicitly including mining. According provided by law" (27.1.7). to this Article, "the project implementer shall submit a project description... ...and other related Article 31 sets out the duties of private companies documents to the state central administrative ("economic entities and organisations") with body in charge of nature and environment or the regard to protecting the environment and natural local administrative body for screening" (4.4). resources. These include a specific requirement for This body will then determine whether "a detailed companies "engaged in environmentally adverse environmental impact assessment is required" (4.6). production" to budget for and implement measures to mitigate adverse effects and protect and restore The screening process will determine the scope of natural resources (31.1.4). These duties, as they work for the detailed EIA, if required, the contents apply to mining companies, are further elaborated of which are set out in Article 5. In particular, EIAs in the 2006 Law on Minerals. must include an Environmental Protection Plan, 121 for implementing the recommendations of the EIA, Mongolian Law on Special Protected Areas and an Environmental Monitoring Programme, for monitoring processes and performance (Article 6). The purpose of the Mongolian Law on Special The Environmental Protection Plan shall include Protected Areas (promulgated on 15 November "measures to minimize, mitigate and eliminate 1994) is "to regulate the use and procurement of adverse impacts identified during the detailed land for special protection and the preservation environmental Impact assessment as well as and conservation of its original conditions in order determine the timeline and estimated budget for to preserve the specific traits of natural zones, implementation of those measures" (6.1.1). unique formations, rare and endangered plants and animals, and historic and cultural monuments and Article 6 also provides for the placing of pecuniary natural beauty, as well as research and investigate guarantees, amounting to no less than 50 percent evolution" (Article 1). of the total cost of the environmental protection measures, in the environmental protection account To this end, Article 3 provides for the designation, of the local soum. However, this Article explicitly at the national level, of State SPAs, which comprise states that it does not apply to mining licence the following four categories: (i) Strictly Protected holders, adding that "the pecuniary guarantee of Areas; (ii) National Parks ("National Conservation the environmental protection measures of the Parks"); (iii) Nature Reserves; and (iv) Monuments mining project shall be regulated by the legislation (Article 3). This article also provides for the on mining" (6.3). Indeed, this is the case, as designation of Local SPAs at the aimag (or capital pecuniary guarantees for mining companies city), soum (or district) levels. are addressed by Articles 38 and 39 of the 2006 Minerals Law. Articles 7 to 12 elucidate the management regulations of Strictly Protected Areas in greater Articles 12 and 13 provide for criminal and detail. Strictly Protected Areas are divided into administrative penalties and financial compensation pristine zones, conservation zones and limited in the event of violations of EIA legislation. In use zones (Article 8). Providing the appropriate particular, provision is made for suspension of permits are obtained and "environmentally safe project implementation "if project implementation technology" is used, eco-travel and tourism can activities do not meet the requirements defined be organised and accommodation for temporary in the environmental impact assessment report" residence or camping can be built within limited (12.2.2). use zones (Article 11). Exploration and mining is prohibited throughout all zones of Strictly Apart from a requirement that EIA reports Protected Areas by Article 12. Proscribed contain "opinion of citizens and Presidiums of activities include changing "natural characteristics soum and [Citizens' Representative Khurals] of by plowing, digging, use of explosives, exploration the area of the project implementation" (Article of natural resources, mining, extracting sand or 5.4.8), there is no specific provision for public stone, [etc.]", conducting "any activities which consultation in the EIA process. The public is only pollute the soil, water and air" and "using open guaranteed access to EIA reports after they have water sources such as lakes, rivers, streams, springs been completed and approved. Article 5 stipulates or ponds for commercial purposes" (12.1). that a copy of the EIA report is to be deposited with the state central administrative body in charge Articles 13 to 18 elucidate the management of nature and environment (i.e. MNET), which is regulations of National Parks in greater detail. required, by Article 7.5, to "ensure public access National Parks are divided into special zones, travel to the report". and tourism zones and limited use zones (Article 122 14). The management regulations for National Sources of financing for protected areas are Parks are similar to those for Strictly Protected specified in Article 6. Alongside state and local Areas, insofar as tourism activities are permitted budgets, these include "donations and aid by (within travel and tourism zones and limited use citizens, economic entities and organizations" and zones; Articles 16 and 17) and exploration and "income from compensation for damage caused by mining is prohibited throughout all zones of persons who violate the Mongolian Law on Special National Parks by Article 18. Protected Areas and its regulations". This creates a provision for mining and tourism companies Articles 19 to 21 elucidate the management to contribute to protected area financing through regulations for Nature Reserves. There are four voluntary contributions or in cases where they categories of Nature Reserve: Ecological Reserves violate legislation. However, it does not go as far as (for the purpose of preserving unique virgin providing for a general mechanism for channelling ecosystems); Biological Reserves (for the purpose revenue from these industries to protected areas, in of conserving rare and endangered plants and compensation for impacts they may cause. animals); Palaeontological Reserves (for the purpose of preserving the remains of ancient animals and Designation of all State SPAs and approval or plants); and Geological Reserves (for the purpose changing of the boundaries of Strictly Protected of preserving unique geological formations and Areas and National Parks requires approval by structures; Article 20). Exploration and mining the Mongolian Parliament (Ikh Khural) (Article is prohibited within Nature Reserves by 25). The Cabinet Secretariat has authority to Article 21. Specifically, this article proscribes "any establish boundaries for Nature Reserves and activities for commercial purposes that change Monuments (Article 26). An implication of these the natural original condition and which are likely Articles is that MNET does not have the power to have a negative environmental impacts such as to designate or degazette protected areas or the construction of buildings, the digging of land, modify their boundaries. The significance of this the use of explosives, the exploration and mining fact was demonstrated in 2002, when parliament of natural resources, [etc.]" (21.2). This article rejected a proposal from the former MNE to does not, however, appear to prohibit responsible remove protection status from 434,000 ha in 10 tourism activities within Nature Reserves, provided protected areas, aimed at stimulating investment in that they have no negative environmental impacts. exploration and mining (World Bank 2006). Articles 22 to 24 elucidate the management According to Article 28, designation of Local regulations for Monuments, of which there are two SPAs and definition of their boundaries and categories: Natural Monuments; and Historical and management regulations is the responsibility of Cultural Monuments (Article 23). Exploration the Citizens' Representative Khural at the relevant and mining is prohibited within and in the level (i.e. aimag/capital city or soum/district). One direct vicinity of Monuments by Article 24. implication of this article would appear to be that Specifically, it is prohibited to "construct buildings there are no standard management regulations for which soil the view and scenery, to plough or dig Local SPAs and, therefore, that whether tourism land, to use explosives, to explore or mine natural is permitted within Local SPAs appears to resources, to touch, erode or remove Natural or be determined on a case-by-case basis by Cultural and Historical Monuments, or conduct the relevant Citizens' Representative Khural. any other activities which causes damage to them" Another shortcoming of the Law is that no criteria (24.2). Responsible tourism activities appear to be for the designation of Local SPAs are defined permitted at Monuments, provided they do not (unlike in the case of State SPAs, for which criteria contravene Article 24. for each category are given in Articles 7, 13, 19 and 123 22). Consequently, the Law does not require that While, the 1994 Law on Special Protected Areas the designation of Local SPAs be justified against remains the current legislation on the subject, any biological criteria. MNET has prepared a concept for amendments to this law, which is currently under consideration. In Articles 33 to 38 regulate the use of land within 2007, with funding from the World Bank, IUCN's protected areas. Paragraph 2 of Article 33 appears Regional Environmental Law Programme, Asia, to prohibit foreign companies and individuals and reviewed and commented on amendments to the Mongolian companies using foreign investment law that were proposed in 2006. After consideration from using land within protected areas. However, of that review, MNET decided to prepare the new this appears to be contradicted by paragraph concept for amending the law. 3, which states that "the provision set out in the paragraph 2 of this Article shall not apply Mongolian Law on Buffer Zones to the activities of foreign and international organizations conducted in accordance with The establishment of protected area buffer zones their project in the appropriate zones of Special was provided for by Article 4 of the 1994 Law Protected Areas within the framework allowed by on Special Protected Areas. This provision was this Law." The implications of this for tourism expanded upon by the Mongolian Law on Buffer development within protected areas are unclear. Zones, promulgated on 23 October 1997, the One possible interpretation of Article 33 is that purpose of which is to "regulate the determination commercial activities involving foreign firms, of Special Protected Area Buffer Zones and the individuals or investment are prohibited within activities therein" (Article 1). protected areas but that this prohibition does not extend to conservation projects implemented or Article 3 provides for the establishment of buffer funded by foreign or international organisations, zones to "minimize, eliminate and prevent actual which are consistent with the objectives of the and potential adverse impacts" to protected areas law. (3.1). For Strictly Protection Areas, Nature Reserves and Monuments, buffer zones lie outside of the One loophole in the Law on Special Protected protected area; for National Parks, they may overlap Areas is that, while mining and exploration are with the limited use zone. strictly and explicitly prohibited within designated protected areas, there is no moratorium on the Article 6 provides for the establishment of issuance of exploration or mining licences within voluntary "Buffer Zone Councils", for the purpose sites proposed for protection (Farrington 2005). of "advising on the development of buffer zones, This is inconsistent with World Bank OP/BP the restoration, protection and proper use of 4.04 on Natural Habitats, which does not support natural resources, and the participation of local projects that involve the significant conversion people" in protected area management (6.1). Buffer or degradation of natural habitats within existing Zone Councils have a right to "develop proposals protected areas and areas officially proposed by and recommendations regarding land and natural governments as protected areas. Because exploration resource use in the Buffer Zone and to develop a licences are inexpensive (only US$0.1 per ha for Buffer Zone Management Plan" (6.4.2). the first year, rising in increments to US$1.50 in the ninth year), it is theoretically possible for Article 7 permits Buffer Zone Councils to mining companies or speculators to legally obtain create "Buffer Zone Funds", which can be exploration rights to a proposed protected area used for various purposes, including "to restore for as little as several thousand dollars (Farrington environmental damage and minimize degradation" 2001b). (7.4.1), "to provide support for local people's 124 livelihood" (7.4.2) and "to conduct training property of the state and may not be given for and public awareness activities regarding nature private ownership (Article 5). Special Needs conservation" (7.4.4). These funds can receive Land includes Special Protected Areas at state income from various sources, including "donations and local levels (Article 16). The prohibition on from foreign and domestic organizations, economic private ownership of Special Needs Land reinforces entities and organizations" (7.2.1) and "a certain the prohibition of mining activities within protected amount of revenue from projects, activities and areas under the Law on Special Protected Areas. services conducted within the Buffer Zone" (7.2.2), with the precise amount in the latter case being Articles 27 to 48 deal with Land Possession determined by the local Khural. Hence, this article Certificates (which can only be given to Mongolian provides for the capture of revenue streams from individuals, companies or organisations) and Land mining and tourism projects conducted within the Use Certificates (which can be given to foreign legal buffer zones of protected areas. entities, international organisations and foreign countries). Articles 42 and 43 provide for the Finally, Article 9 requires all companies conducting withdrawal of Land Possession/Use Certificates for exploration or mining in buffer zones to be subject areas the government wishes to designate as Special to a detailed EIA, which shall include comments Needs Land (for instance, as a State or Local SPA). and conclusions from the administration of the In these circumstances, the possessor of the land relevant protected area. may be compensated in full or in part, and may or may not receive replacement land. Land users, on As in the case of the 1994 Law on Special Protected the other hand, do not receive compensation. Areas, proposed amendments to the Buffer Zone Law were drafted in 2006. Following a review of Article 50 requires land possessors and users to the law and the proposed amendments in 2007 by protect the land. Specifically, possessors and users IUCN's Regional Environmental Law Programme, are required to: "take measures at their expense Asia, MNET decided to reconsider the 2006 to preserve land characteristics and quality, to amendments and, in 2008, drafted a completely new prevent deterioration of soil fertility, deterioration concept for amending the law, which is currently of flora, soil erosion, degradation, soil infertility, under consideration. extra hydration, soil salinization, its pollution and poisoning (chemical pollution)" (50.1.1); "restore Law of Mongolia on Land and maintain at their expenses the land eroded and damaged due to digging it for mining purposes, The revised Law of Mongolia on Land was production of construction materials, building promulgated on 7 July 2002, replacing an earlier railways and motor roads, mineral exploration law dating from 1995. The purpose of the law is to and surveying, testing, research works and other regulate the ownership and use of land by citizens, activities" (50.1.2); not "cause an adverse impact on organisations and other entities (Article 1). The the environment and the land when using land, its definition of "Land" under Article 3 encompasses resources and common mineral resources" (50.1.3); "the land surface, its soil, forests, water and plants" and "preserve and protect lands with forests, rare (3.1.1), it does not include subsoil, the ownership and endangered animals and plants, historical and and use of which is regulated by the 1988 Law on cultural memorials" (50.1.4). Subsoil (updated in 1995). Law on Forests Of particular significance to environmental protection is the creation of a special category A new version of the Law on Forests was of land, called Special Needs Land, which is the promulgated on 17 May 2007, it replaced an earlier 125 law dating from 1995. The purpose of the law is the construction of roads, bridges, water, power to "regulate relations from protection, possession, and telecommunications lines, fire lines, as well as sustainable use and reproduction of the forest in forest regeneration, cleaning activities and use of Mongolia" (Article 1). non-timber resources" (8.6). Article 8 appears to extend the prohibition on exploration Forests are classified into protected forests and and mining within areas of natural habitat commercial (utilisation) forests (Article 5). Article 8 to all protected forests: a very broad category. sets out the definition and management regulations Construction of mining-associated infrastructure for protected forests, which comprise "sub-tundra (roads, power lines, etc.) does not appear to be forests, forests in Special Protected Areas and prohibited within protected forests, however. those designated for training and research, green belts, prohibited forest strips, saxaul and oasis Exploration and mining are not prohibited in forests, groves and bush stands of up to 100 ha of commercial forests (Article 9) but a number of area and forests on slopes greater than 30 degrees" specific regulations apply to these activities in (8.1), as well as "forests within a radius of 1,000 forests. Article 35 provides for companies to meters around lakes, mineral and other water pay compensation to the budget of the soum (or springs, and off riverbanks, and within 100 meters district) concerned for damage to forest inflicted in on both sides of national roads and railroads" the course of mining activities. Moreover, Article 37 (8.2). The management regulations for forests requires entities requesting exploration or mining within protected areas are provided by the Law on licences to compensate the forest for direct forest Special Protected Areas (8.4). For other protected protection and regeneration costs, as well as the forests, all activities are prohibited "except for owner's forfeited income from the forest. 126 Annex 7: Regulatory framework for mining O ver the past decade, the government water, petroleum and natural gas" (Article 3.1). of Mongolia has evolved from being However, artisanal and small-scale mining are an owner and operator of mines to explicitly excluded from the law, on the expectation being a manager and regulator. This that they will be regulated separately (Article 3.2). transformation has required the government to establish a legal framework to regulate the sector Article 5 reiterates the Constitution, by stating and ensure environmentally sustainable growth that "Mineral resources naturally occurring on (World Bank 2006). and under the earth's surface in Mongolia are the property of the State" (5.1). This article goes on The Constitution of Mongolia to explain that "the State, as the owner, has the right to grant exploration and mining rights" (5.2). The fundamental basis for regulation of exploration Article 5 also clarifies that the state can participate and mining in Mongolia was put in place by the in partnerships with private companies, but that its 1992 Constitution of Mongolia. Regarding the stake is limited to a maximum of 50 percent (where ownership of mineral resources, Article 6 of the the proven reserves were found by the state) or 34 constitution stipulates that "the land except that percent (where they were found with other sources given to the citizens of Mongolia for private of funding). ownership, as well as the subsoil with its mineral resources, forests, water resources and wildfowl Private companies and partnerships registered shall be the property of the State" (6.2). This article and operating under the laws of Mongolia can be goes on to explain that private ownership of land issued with "exploration licences" and "mining does not extend to the subsoil (6.3), and that the licences" (Article 7.1). Exploration licences grant state reserves the right to exchange or take over the right to prospect or conduct exploration land in the event of a special public need, or to (Article 4.1.14), while mining licences grant confiscate land if it is "used in a manner adverse the right to conduct mining (Article 4.1.15). to the health of the population, the interests of Provided that it takes place outside of reserve environmental protection or national security" (6.4). areas and Special Need land, reconnaissance, Finally, this article provides for foreign individuals which means "an investigation identifying mineral and companies to "lease land for a specified concentrations through rock sampling, airborne period of time under conditions and procedures as surveys and reviewing related geological and provided for by law" (6.5). minerals information without actually disturbing the subsoil" (Article 4.1.2), does not require a Minerals Law of Mongolia licence. It does, however, require the company or partnership responsible to notify the State and The Minerals Law of Mongolia was promulgated on local administrative bodies in advance (Article 8 July 2006; it superseded a previous law, dating from 15.1), and obtain permission from the relevant 1 July 1997. The purpose of the law is to "regulate land owners or land users (Article 15.2). prospecting, exploration and mining of minerals within the territory of Mongolia" (Article 1). The procedure for obtaining an exploration license is set out in Articles 17 to 19. Exploration The Minerals Law applies to the "exploration and licences are issued on a first-come-first served basis mining of all types of mineral resources except (Article 18.1), for three-year periods (Article 19.8) 127 extendable twice (Article 21.1.4). There is no limit to respond within the 30 day deadline "shall be to the number of exploration licences a company or deemed as approval" (19.4), and the licence will be partnership may hold (Article 17.5). granted automatically. Article 17 stipulates that licence applications must At a recent meeting on Citizens' Engagement include a map of the requested exploration area, in Mine Licensing, held in Ulaanbaatar on 28 and that no part of the requested exploration January 2008, as part of the Responsible Mining area may overlap with a reserve area or Special and Resource Use Discussion Series, Article 19 Needs Land (a category that includes State SPAs was a key issue of contention for representatives and Local SPAs, following Article 16 of the 2002 of NGOs and community-based organisations. Law on Land). The article adds that requested Specific concerns included that the formal exploration areas should be between 25 and requirement for public participation is limited to 400,000 ha in area, and rectangular in shape, with soliciting comments form Citizens' Representative borders following lines of longitude and latitude, Khurals, that the time period for commenting unless deviations are necessary to avoid overlap on licence applications is too short, and that with Special Needs Land, national borders, etc. applications are automatically passed if no response is received within the 30 day period. Article 19 stipulates that, upon receiving an exploration licence application, the responsible After an exploration licence has been granted, government agency (i.e. MRPAM) shall enter it MRPAM shall notify MNET, governors of onto the application registry, conduct a preliminary the relevant aimags and soums and the State screening to check for administrative compliance, Professional Inspection Agency (Article 19.10). and determine whether it overlaps with any area with It is notable that MNET will only be notified after restrictions or prohibitions on mineral exploration the exploration licence has already been granted, as or mining, including Special Needs Land. After this gives the ministry no opportunity to double- completing the aforementioned steps, and within check that the requested area does not overlap with 20 days of receipt of the application, MRPAM must any protected area. Some degree of environmental notify the applicant in writing that the application has safeguard is, however, provided by Article 37, which been refused, that the requested area is available for states that a "license holder may not commence issue under an exploration licence or that only part of exploration operations without first obtaining the requested area is available (e.g. if there is overlap written approval from [the] relevant environmental with Special Needs Land). agency" (37.2). Article 19 goes on to describe the process for Applicants for a mining licence for a given area consultation with representatives of the public. must hold an exploration licence covering that MRPAM must notify the relevant governor about area (Article 24.1), unless the exploration licence exploration licence applications in their aimag (or holder fails to submit an application, in which case capital city). The governor than has 30 days to the mining licence will be issued by tender (Article solicit comments from the Citizens' Representative 24.2). Mining licences are issued for 30-year periods Khurals in the relevant soum (or district), and to (Article 26.5) extendable twice for a period of 20 send feedback to MRPAM. The governor is entitled years each time (Article 27.1.6). to refuse the granting of an exploration license, "on grounds provided in the laws of Mongolia" (19.5). The process for obtaining a mining licence is set However, if the governor supports the decision, out in Articles 24 to 26. The process is similar to MRPAM shall grant the exploration licence. A that for exploration licences and, once again, the critical clause in the regulations is that failure requested mining area cannot overlap with any 128 Special Needs Land (Article 24.2.2). One key application review process. However, Article 38.1.1 difference from the process for exploration licences only requires exploration licence holders to develop is that MRPAM is required to perform an additional these plans within 30 days of receiving their licence. check, following the preliminary screening, to determine "whether the size and evaluation of the As a measure for ensuring that licence holders mineral reserve estimated by exploration would properly discharge their responsibilities with respect be sufficient for reclamation of environmental to environmental protection, Article 38 requires that damages that might result from mining activities" they "deposit funds equal to 50 percent of [their] (Article 26.2.3). To this end, applicants for mining environmental protection budget for that particular licences are required to submit EIAs together with year in a special bank account established by the their application (Article 25.1.7). Governor of the relevant soum or Representatives" (38.1.8). This deposit will be returned to the licence Another key difference is that there is no provision holder if they comply with the Environmental whatsoever for public consultation: after conducting Protection Plan (38.4). However, if they fail to fully an internal review, MRPAM will either approve or implement the plan, the Governor of the relevant refuse the application within 20 days of registering soum (or district) shall use the deposit to implement it (Article 26.3). This step does include one key the necessary environmental protection measures, environmental safeguard, that if the requested area and the licence holder must provide any additional overlaps in any way with Special Needs Land, "the funds that are required (38.3). application for the mining license shall be refused" (Article 26.3.4). As in the case of the exploration In addition to preparing an Environmental licence application process, however, there is no Protection Plan, mining licence holders are provision to notify MNET about licence applications also required by Article 39 to prepare an EIA. before they have been granted. As Article 26.7 Unlike in the case of an exploration licence, the states, "within seven (7) business days following the Environmental Protection Plan and EIA must issuance of a mining license, the Government agency be prepared before the mining licence is obtained. shall notify the Government Ministry in charge of The EIA must "identify the possible adverse the environment, the Government agency in charge environmental impacts from the proposed mining of taxation and fiscal issues, the aimag, soum and operations... ...and shall include preventive Representatives Governors where the licensed area measures that avoid and minimize such adverse is located and professional inspection agency and impacts" (39.1.2). The Environmental Protection publish an official notice informing the public of the Plan must "contain measures to ensure that mining granting of the license". operations are conducted in the least damaging way to the environment [and] also identify preventive, Specific regulations on environmental protection comprehensive measures to protect air and water, are set out in Articles 37 to 40. Within 30 days of humans, animals and plants from the adverse effects receiving an exploration licence, licence holders are of mining operations" (39.1.3). Furthermore, the required to prepare an Environmental Protection plan must address: (i) "storage and control of toxic Plan, and submit it for approval to the governor of and potentially toxic substances and materials"; the soum (or district) where the exploration area is (ii) "protection, utilization and conservation of the located. This plan must ensure that pollution does surface and underground water"; (iii) "construction not exceed acceptable limits and that measures are of tailings dams and ensuring the mine area safety"; taken to reclaim the mining area and leave it suitable and (iv) "reclamation measures" (39.1.4). for future public use. Ideally, these plans should be prepared in advance of the exploration licence Mining licence holders are also required to being granted, so that they can inform the licence prepare an annual report on the implementation 129 of the Environment Protection Plan, containing for supervising these activities in other types of all instances of adverse environmental impacts national-level Special Needs Land (Article 9.1.3). resulting from mining activities, and submit it to At the local level, local administrative bodies are MNET, the State Professional Inspection Agency responsible for establishing Special Needs Land, and the governor of the relevant aimag (or capital following the regulations provided by the Land Law city) or soum (or district). (Article 12.1.4). Similar to the case for exploration licence holders, Further restrictions and prohibitions on mining mining licence holders are required to "deposit within Special Needs Land are provided by Article funds equal to 50 percent of [their] environmental 14. This article requires state and local authorities protection budget for the particular year into a to notify MRPAM whenever they designate Special special bank account established by [MNET]" Needs Land, and for MRPAM to record the (39.1.9). Once again, this deposit will be returned coordinates of the land in the exploration license, to the licence holder if they comply with the mining license and cartographic registries. The Environmental Protection Plan (39.4). However, article goes on to state that, "if a special purpose if they fail to fully implement the plan, MNET territory overlaps entirely or in part with a territory shall use the deposit to implement the necessary covered by a valid license, prohibiting further environmental protection measures, and the exploration or mining in the overlapping area licence holder must provide any additional funds the authority whose decision it was to establish that are required (39.3). It has been noted that the special purpose territory shall be obligated to this requirement for licence holders to deposit compensate the license holder" (14.4). Regarding funds for environmental protection has not the amount of compensation, this "shall be resulted in the expected higher level and quality negotiated and agreed by the authority that of environmental protection. This is mainly due decided to establish the [Special Needs Land] and to lack of institutional capacity to ensure the the affected license holder. If the parties fail to implementation of environmental protection reach an agreement, the amount of compensation measures, plus a lack of willingness and capacity and time for payment shall be determined by the on the part of mining licence holders to provide Government agency based on conclusion of an the additional funding necessary to complete the authorized independent body" (14.5). The provision environmental protection work once mining has for revoking an exploration or mining licence on ceased (World Bank 2006). the grounds that the area has been designated as Special Needs Land and the license holder has been The Minerals Law recognises Special Needs Land fully compensated is repeated in Article 56. ("Special Purpose Territory") designated by national and local authorities following the Land Law, Articles 14 and 56 establish a mechanism for where "exploration and mining are either restricted withdrawing land from exploration and mining or prohibited" (Article 4.1.2). Regarding Special licences for special needs (including for the Needs Land (which includes both State SPAs establishment of protected areas) but creates an and Local SPAs), the Mongolian Parliament has a obligation for the relevant authority to compensate general power to "restrict or prohibit exploration the licence holder. In practice, the lack of specific and mining activities on or grants of exploration funds for compensation means that the relevant and mining licenses for certain territories" (Article authorities (often MNET) are unable to extinguish 8.1.5). In addition, the Mongolian Parliament licenses that overlap with newly established is responsible for supervising reconnaissance, protected areas (Farrington 2005). It is unclear what exploration and mining of minerals in State SPAs additional environmental standards, if any, must be (Article 8.1.3), while the government is responsible met exploration and mining licences holders when a 130 protected area is designated over their licences but some general regulations with regard to exploration compensation is not paid. and mining of minerals, which are greatly expanded on by the 2006 Minerals Law. With regard to disputes and irregularities concerning the boundaries of exploration and mining Subsoil includes all types of gravel, minerals and licences, Article 13 empowers the government to other geological objects under the soil (Article 4). temporarily place under state control areas that According to Article 3, subsoil is the exclusive were previously granted under licence, and to property of the state. Consequently, it can be suspend reconnaissance, exploration and mining granted for use but never for ownership. Article 9 activities within them. Among other things, such provides for subsoil to be used by Mongolian and areas, termed "reserve areas", can be established foreign individuals and companies, provided this is to "improve the quality of the registry of licences" permitted by the relevant Mongolian legislation. (13.1.1) and "resolve boundary disputes among licence holders" (13.1.2). Article 10 provides for the use of subsoil for geological surveys and mining, and states that In general, the rights and obligations of a licence "relations concerning the exploration and mining holder cease upon termination of their licence. The of mineral resources in subsoil shall be regulated one exception is their "obligations with respect to by the Law on Minerals" (10.2). With regard to environmental protection, reclamation and mine environmental protection, Article 20 requires users closure... ...and other obligations pursuant to of subsoil to "ensure reliable protection of air laws and legislations on environmental protection" in the stratosphere, the land, the forests, waters, (Article 53.3.). These obligations include to "take all springs, the livestock, the wildlife, other objects of necessary measures to ensure safe use of the mine nature, and constructions and structures, to ensure area for public purposes and reclamation of the safety and protection of specially protected areas, environment" prior to mine closure (Article 45.1). and items of importance to natural, historical or cultural studies" (20.2.3) and to rehabilitate any land Sanctions are foreseen for breaches of the that was damaged when using the subsoil, before Minerals Law that do not constitute a criminal handing it back to the local administrative body offence. These range from fines of 100,000 (20.2.4). tugriks (US$90) to suspension or, even, revocation of the licence. However, it has been reported Temporary regulation on artisanal mining (e.g. World Bank 2006) that enforcement of the environmental provisions in the Minerals Law has As mentioned previously, artisanal and small-scale been problematic, and that the State Professional mining are explicitly excluded from the Minerals Supervision Agency has refused to circulate a list of Law. In 2001 and 2002, the government attempted fines imposed on mines. to address this gap by enacting interim regulations for these informal types of mining. These Law of Mongolia on Subsoil regulations proved to be largely ineffective, and were not renewed. Subsequently, the government drafted The Law of Mongolia on Subsoil was promulgated an Artisanal Mining Law but this failed to gain on 29 November 1988, and then updated on 17 parliamentary approval and was finally abandoned in April 1995. The purpose of the law is "to regulate August 2005 (World Bank 2006). Subsequently, the relations concerning the use and protection of Swiss Agency for Development and Cooperation subsoil in the interests of the present and future (SDC) commenced with MRPAM an initiative on generations" (Article 1). The law complements the artisanal and small-scale mining, which emphasised Law on Land (which excludes subsoil) and provides drafting of legislation and regulations, mediation 131 and conflict resolution, technology transfer, training tripartite agreement among the licence holder, and minimising of risks to health, and safety and the soum/district governor and the cooperative environment (World Bank 2006). (i.e. tributing arrangements). Miners' cooperatives will sign contracts with the relevant soum/district Recent outputs of this initiative include governor. Among other things, these contracts Government Resolutions 71 and 72, dated 27 must specify proposed and planned activities February 2008, which approved a Sub-programme for environmental restoration, and must contain on the Development of Artisanal and Small-scale compulsory obligations not to use chemicals and Mining until 2015, and Temporary Regulation on explosives without permits or licences. Artisanal and Small-scale Mining Operations. The temporary regulation, which will remain in place Article 10 of the temporary regulation explicitly until the Mongolian Law on Artisanal and Small- prohibits artisanal and small-scale mining scale Mining is adopted, provides a legal basis for within Special Protected Areas, Special Needs the regulation of artisanal and small-scale mining Areas, reserve areas (defined under Article 13 of the operations, including the formation of miners' Minerals Law), locally worshipped sites, areas with cooperatives and the allocation of land to these forest and water resources, and various other types cooperatives under contracts. of area. Under the temporary regulation, Citizens' Extractive Industries Transparency Initiative Representative Khurals of soums (and districts) are entitled to allocate, at their discretion, up to two The Extractive Industries Transparency Initiative pieces of land in their soum (or district) for artisanal (EITI) aims to increase transparency over and small-scale mining. These pieces of land may payments from oil, gas and mining companies to comprise: (i) mineral deposits that are economically governments and government-linked entities, as inefficient for large-scale mining in terms of the well as transparency over revenues by host country size and quality of their mineral reserves; (ii) mined- governments. On 4 January 2006, the government out areas that have no reclamation and tailings; or of Mongolia issued an order establishing a National (iii) land within mining licence areas designate for EITI Council, charged with implementing the use for artisanal and small-scale mining under a initiative (World Bank 2006). 132 Annex 8: Safeguard policies of international development banks Safeguard policies of the World Bank · The Bank encourages borrowers to A incorporate into their development and s stated above, the principle environmental strategies analyses of any environmental safeguard policy of major natural habitat issues, including the World Bank is the Operational identification of important natural habitat Policy (OP)/Bank Procedure (BP) 4.01 sites, the ecological functions they perform, on Environmental Assessment. Environmental the degree of threat to the sites, priorities assessments are conducted for each investment for conservation, and associated recurrent- loan, to determine the extent and type of EIA to funding and capacity-building needs. be conducted, and whether the project triggers any other safeguard policy. Of particular relevance is Critical natural habitats are (i) existing protected OP/BP 4.04 on Natural Habitats, but OP/BP 4.11 areas and areas officially proposed by governments on Physical Cultural Resources and OP/BP 4.36 on as protected areas (e.g., reserves that meet the Forests are also relevant. criteria of the World Conservation Union [IUCN]); and (ii) sites identified on supplementary lists Responsibility for undertaking the assessments prepared by the Bank or an authoritative source required by the World Bank's safeguard policies lies determined by the Regional Environment Sector with the borrower government, while the World Bank Unit. Such sites may include areas recognised by is responsible for overall compliance with the policies. traditional local communities (e.g., sacred groves); areas with known high suitability for biodiversity The World Bank's Operational Policy on Natural conservation; and sites that are critical for rare, Habitats (OP 4.04, June 2001) opens with the vulnerable, migratory or endangered species. following words: "The conservation of natural Listings are based on systematic evaluations of such habitats... is essential for long-term sustainable factors as species richness; the degree of endemism, development", and inter alia, states the following: rarity, and vulnerability of component species; representativeness; and integrity of ecosystem · The Bank supports the protection, processes. maintenance, and rehabilitation of natural habitats and their functions in its economic Significant conversion is defined as "the elimination and sector work, project financing, and or severe diminution of the integrity of a critical policy dialogue; or other natural habitat caused by a major, long- · The Bank's economic and sector work term change in land or water use", while degradation includes identification of (a) natural habitat is defined as "modification of a critical or other issues and special needs for natural habitat natural habitat that substantially reduces the conservation, including the degree of threat habitat's ability to maintain viable populations of its to identified natural habitats (particularly native species". critical natural habitats), and (b) measures for protecting such areas in the context of Safeguard policies of the International Finance the country's development strategy; Corporation · The Bank does not support projects that, in the Bank's opinion, involve the significant The International Finance Corporation's is the conversion or degradation of critical natural private-sector lending arm of the World Bank habitats; Group. Its key environmental safeguard policy 133 is Performance Standard 6 on Biodiversity · Critical for the survival of migratory Conservation and Sustainable Natural Resources species; Management. · Supporting globally significant concentrations or numbers of individuals According to this performance standard, the client of congregatory species. will not significantly convert or degrade areas of natural habitat, unless the following conditions are Safeguard policies of Asian Development Bank met: (ADB) · There are no technically and financially ADB has also incorporated environmental feasible alternatives; considerations into its operations, including · The overall benefits of the project adoption of a systemised procedure for outweigh the costs, including those to the environmental review of proposed loan projects. environment and biodiversity; and ADB's environmental safeguard procedures · Any conversion or degradation is are set out in its Environment Policy and the appropriately mitigated. accompanying Environmental Assessment Guidelines. Performance Standard 6 places even stricter conditions on areas of so-called 'critical habitat'. ADB requires an EIA of all its loans and private In these areas, the client will not implement any sector investments. As with the World Bank and project activities unless the following requirements IFC, the borrower is responsible for conducting are met: the assessment, in accordance with ADB's environmental assessment requirements, while · There are no measurable adverse impacts ADB is responsible for ensuring compliance, and on the ability of the critical habitat to monitoring agreed mitigation measures by the support species populations or ecosystem borrower. functions; · There is no reduction in the population Environmental classification of projects is of any recognised critically endangered or undertaken during the project screening process, to endangered species; and evaluate the potential significance of environmental · Any lesser impacts are mitigated. impacts and determine whether an EIA should be conducted. The term 'critical habitats' used by the IFC is defined slightly differently from the term 'critical In 2003, ADB implemented new guidelines natural habitats' used by the World Bank. Critical for environmental assessment, with aimed to habitats include areas: improve analysis and documentation leading to the environmental categorisation of projects · With high biodiversity value, including at the concept stage, through the use of rapid habitat required for the survival of critically environmental assessment checklists. endangered or endangered species; · With special significance for endemic or The most stringent environmental review is restricted-range species; required for projects sited adjacent to or within · With unique assemblages of species or `Environmentally Sensitive Areas'. These areas are which are associated with key evolutionary defined as cultural heritage sites, protected areas and processes or provide key ecosystem their buffer zones, wetlands, mangroves, estuaries, services; and special areas for protecting biodiversity. 134 The availability of information on important sites and updated two previous sets. Following for biodiversity could assist the application of the these guidelines, JBIC conducts screening and rapid environmental assessment checklists, by environmental reviews of projects before it makes helping to determine whether projects are sited decisions on funding. adjacent to or within environmentally sensitive areas. At the screening stage, proposed projects are classified according to the potential severity Safeguard policies of European Bank for of their environmental impacts, in order to Reconstruction and Development (EBRD) determine the scope of environmental review that is required. Projects that are likely to have Under its Environmental Policy, EBRD seeks significant adverse impacts on the environment to ensure that its operations include measures to are classified as Category A. Category A projects safeguard and, where possible, enhance natural include those located in or near Sensitive Areas, habitats and the biodiversity they support. which include: EBRD screens projects, in order to assess · nationally designated protected areas; environmental risks and determine the level of · habitats with important ecological values; environmental assessment required. Investments and are categorised into three categories, according · habitats of rare species requiring protection to the nature and magnitude of their potential under domestic legislation or international environmental impacts. Projects that could result in treaties. potentially significant adverse future environmental impacts are placed in Category A, and require an Category A projects are subjected to environmental EIA and the formulation of measures to prevent, reviews with the greatest scope. These reviews minimise and mitigate adverse impacts. examine potential negative and positive environmental impacts of projects, and evaluate Projects that are placed in Category A include measures necessary to mitigate negative impacts those that are planned to be carried out in or and promote positive impacts. In addition, have a perceptible impact on so-called `Sensitive borrowers must submit EIA reports, in line with Locations'. Sensitive locations include national the environmental laws and standards of the host parks and other protected areas, wetlands, forests governments concerned. with high biodiversity value, areas of archaeological and cultural significance, and areas of importance Incorporation of information on important sites for indigenous peoples or other vulnerable groups. into JBIC's safeguard policies could assist the application of its environmental guidelines. In the The availability of information on important sites first place, it could lend consistency and clarity for biodiversity could assist the identification of to the screening stage, particularly by providing `Sensitive Locations', and thereby assist with the standard lists of Sensitive Areas. In the second consistent application of this safeguard policy. place, it could support the environmental review process, by highlighting potential negative Safeguard policies of Japan Bank for environmental impacts of projects. International Cooperation (JBIC) In October 2003, JBIC implemented a new set of environmental guidelines, which unified 135 Annex 9: Overlap between nationally protected areas and exploration licences, mining licences and areas at high risk from mining-associated infrastructure Explor'n Mining Total Total area % High risk % high No. Site name overlap overlap overlap (ha) overlap area (ha) risk (ha) (ha) (ha) Strictly Protected Areas 1 Bogd Khan Uul 41,383 0 0.0 41,383 100.0 2 Dornod Mongol 615,732 698 698 0.1 0.0 3 Great Gobi "A" 4,644,091 2,450 2,450 0.1 0.0 4 Great Gobi "B" 921,551 358 358 0.0 0.0 5 Khan Khentii 1,233,351 0 0.0 114,382 9.3 6 Khasagt Khairkhan 31,854 1,149 1,149 3.6 0.0 7 Khokh Serkhiin Nuruu 74,474 0 0.0 0.0 8 Khoridol Saridag 227,968 1 1 0.0 0.0 9 Mongol Daguur "A" 85,085 676 676 0.8 0.0 10 Mongol Daguur "B" 18,617 0 0.0 0.0 11 Nomrog 333,155 0 0.0 0.0 12 Otgontenger 96,620 0 0.0 0.0 13 Small Gobi "A" 1,166,346 14,989 14,989 1.3 66,368 5.7 14 Small Gobi "B" 695,036 14,195 14,195 2.0 24,553 3.5 15 Uvs Lake 462,503 48 48 0.0 26,030 5.6 16 Altan Els 171,203 0 0.0 0.0 17 Tsagaan Shuvuut 34,624 0 0.0 0.0 18 Turgen 133,810 5,220 5,220 3.9 84,183 62.9 National Parks 1 Altai Tavan Bogd 623,220 0 0.0 32,124 5.2 2 Dariganga 70,086 2,421 2,421 3.5 0.0 3 Gobi Gurvan Saikhan 2,680,819 5,975 5,975 0.2 98,937 3.7 4 Gorkhi-Terelj 292,010 0 0.0 62,352 21.4 5 Ikh Bogd Uul 262,858 0 0.0 0.0 6 Khan Khokhii 214,331 10,724 10,724 5.0 38,306 17.9 7 Khyargas Lake 374,746 1,360 1,360 0.4 52,539 14.0 8 Khangain Nuruu 889,986 132 428 560 0.1 176,609 19.8 136 Explor'n Mining Total Total area % High risk % high No. Site name overlap overlap overlap (ha) overlap area (ha) risk (ha) (ha) (ha) 9 Khar Us Lake 862,014 11 11 0.0 78,934 9.2 10 Khogno Tarna 78,798 0 0.0 0.0 11 Khorgo Trekhiin 85,007 0 0.0 16,602 19.5 Tsagaan Nuur 12 Khovsgol Lake 848,828 0 0.0 0.0 13 Khustain Nuruu 57,341 1,637 1,637 2.9 533 0.9 14 Moltsog Els 488 0 0.0 0.0 15 Munkhkhairhan Uul 308,230 37 37 0.0 12,830 4.2 16 Myangan Ugalzat 63,129 0 0.0 15,408 24.4 17 Noyon Khangai 59,162 43 43 0.1 0.0 18 Onon Balj "A" 291,814 626 626 0.2 47,913 16.4 19 Onon Balj "B" 102,881 21 21 0.0 0.0 20 Otkhonii Khundii 92,955 0 0.0 0 0.0 21 Siilkhem "A" 77,843 0 0.0 15,498 19.9 22 Siilkhem "B" 76,647 193 193 0.3 46,035 60.1 23 Tarvagatai Nuruu 557,447 0 0.0 0.0 24 Tsambagarav 113,012 493 493 0.4 0.0 25 Tujiin Nars 70,864 0 0.0 20,642 29.1 26 Ulaantaiga 108,832 0 0.0 0.0 Nature Reserves 1 Alag Khairkhan 36,100 0 0.0 0.0 2 Batkhaan 21,759 0 0.0 0.0 3 Bulgan River 11,892 2 2 0.0 11,892 100.0 4 Burkhan Buudai 51,571 3,293 3,293 6.4 0.0 5 Develiin Aral 10,022 0 0.0 10,022 100.0 6 Ergeliin Zoo 57,581 3,506 3,506 6.1 0.0 7 Ikh Gazriin Chuluu 34,096 21,301 21,301 62.5 0.0 8 Ikh Nartiin Chuluu 70,088 6,516 1 6,517 9.3 42,287 60.3 9 Khanjargalant Uul 62,971 0 0.0 17,530 27.8 10 Khar Yamaat 51,274 343 1 344 0.7 40,653 79.3 11 Lkhachinvandad 55,382 7 7 0.0 4,935 8.9 12 Nagalkhan 4,806 1,455 1,455 30.3 4,806 100.0 13 Namnan Uul 29,709 0 0.0 0.0 137 Explor'n Mining Total Total area % High risk % high No. Site name overlap overlap overlap (ha) overlap area (ha) risk (ha) (ha) (ha) 14 Sharga 320,046 10,298 10,298 3.2 75,684 23.6 15 Mankhan 84,701 0 0.0 0.0 16 Tesiin Gol 108,589 0 0.0 0.0 17 Toson Khulstai 471,937 7,046 413 7,459 1.6 74,645 15.8 18 Ugtam 42,595 2,823 2,823 6.6 10,852 25.5 19 Yahi Lake 248,672 9,544 9,544 3.8 102,871 41.4 20 Zagiin Us 283,832 9,358 9,358 3.3 0.0 Monuments 1 Bulgan Uul 2,002 0 0.0 577 28.8 2 Dayandeerkhiin Agui 31,303 0 0.0 0.0 3 Eej Khairkhan 22,904 0 0.0 9,513 41.5 4 Khuisiin 8 Lake 11,158 0 0.0 0.0 5 Khurgiin Hundii 6,109 4 4 0.1 0.0 6 Shiliin Bogd 18,152 0 0.0 0.0 7 Suikhent Uul 7,717 2,112 2,112 27.4 0.0 8 Uran Togoo-Tulga Uul 5,420 0 0.0 2,277 42.0 All sites 22,413,136 141,014 891 141,905 0.6 1,480,670 6.6 138 Annex 10: Overlap between IBAs and exploration licences, mining licences and areas at high risk from mining-associated infrastructure Explor'n Mining Total Total area % High risk % high No. Site name overlap overlap overlap (ha) overlap area (ha) risk (ha) (ha) (ha) 1 Khoton-Khorgon Lakes 19,629 0 0.0 468 2.4 2 Tsengel Khairkhan 52,726 49,663 49,663 94.2 12,027 22.8 Mountain 3 Dayan Lake 13,537 0 0.0 0.0 4 Bulgan River 32,700 7,212 7,212 22.1 3,731 11.4 5 Khokh Serkhiin Nuruu 74,502 0 0.0 0.0 SPA 6 Tolbo Lake 16,334 2,761 2,761 16.9 0.0 7 Achit Lake 98,278 7,273 7,273 7.4 30,592 31.1 8 Uureg Lake 28,308 0 0.0 10,312 36.4 9 Uvs lake 502,462 11 11 0.0 22,755 4.5 10 Baga and Bayan Lakes 5,317 0 0.0 0.0 11 Uvsiin Khar Us Lake 13,601 4,239 4,239 31.2 8,773 64.5 12 Airag Lake 73,348 0 0.0 0.0 13 Khongil 6,027 0 0.0 0.0 14 Khar Us Lake 297,265 0 0.0 45,251 15.2 15 Jargalant Khairkhan 162,264 708 708 0.4 0.0 Mountain 16 Khar Lake 83,798 0 0.0 39,930 47.7 17 Khomiin Tal 78,059 0 0.0 14,727 18.9 18 Santmargatsiin Bayan 14,205 1,113 1,113 7.8 0.0 Lake 19 Ulaagchinii Khar Lake 13,439 1,584 1,584 11.8 0.0 20 Oigon Lake 20,189 4,758 4,758 23.6 0.0 21 Telmen Lake 24,175 0 0.0 0.0 22 Otgontenger Mountain 88,753 0 0.0 0.0 23 Zavkhan River - Ereen 65,735 0 0.0 0.0 Lake 24 Khasagt Khairkhan 28,309 0 0.0 0.0 Mountain 25 Taigam Lake 4,170 0 0.0 0.0 26 Boon Tsagaan Lake 43,262 0 0.0 0.0 139 Explor'n Mining Total Total area % High risk % high No. Site name overlap overlap overlap (ha) overlap area (ha) risk (ha) (ha) (ha) 27 Ikh Bogd Mountain 86,440 0 0.0 0.0 28 Orog Lake 20,195 0 0.0 0.0 29 Taatsiin Tsagaan Lake 12,385 0 0.0 0.0 30 Khangain Nuruu 897,840 191 18 209 0.0 175,263 19.5 National Park 31 Terkhiin Tsagaan Lake 21,072 0 0.0 4,759 22.6 32 Khovsgoliin Sangiin 25,194 0 0.0 0.0 Dalai Lake 33 Erkhel Lake 3,537 0 0.0 3,355 94.9 34 Darkhad Depression 195,223 3,409 3,409 1.7 30,559 15.7 35 Khovsgol Lake 380,212 0 0.0 0.0 36 Bulgan Tal 40,445 1,745 1,745 4.3 0.0 37 Teshigiin Olon Lakes 5,774 0 0.0 4,947 85.7 38 Airkhan Lake 7,212 0 0.0 0.0 39 Tarialan 31,630 537 537 1.7 0.0 40 Selenge - Teel 18,568 323 323 1.7 0.0 41 Sharga Lake 2,118 0 0.0 0.0 42 Ogii Lake 10,189 0 0.0 0.0 43 Dashinchilen Bayan 1,598 1,598 1,598 100.0 1,598 100.0 Lake 44 Erdenesant Mountains 34,776 0 0.0 0.0 45 Ulziitiin Sangiin Dalai 1,491 0 0.0 0.0 Lake 46 Govi Gurvan Saikhan 544,794 9,779 9,779 1.8 1,688 0.3 Mountain 47 Borzon Gobi 399,467 43,487 43,487 10.9 3,026 0.8 48 Galba Gobi 828,328 497,627 497,627 60.1 61,183 7.4 49 Ikh Gazriin Chuluu 9,300 0 0.0 0.0 50 Ikh Nartiin Chuluu 66,601 242 8 250 0.4 40,709 61.1 Nature Reserve 51 Eej Khad 36,867 0 0.0 15,510 42.1 52 Khustain Nuruu 49,932 0 0.0 0.0 National Park 53 Selengiin Tsagaan Lake 17,143 0 0.0 0.0 140 Explor'n Mining Total Total area % High risk % high No. Site name overlap overlap overlap (ha) overlap area (ha) risk (ha) (ha) (ha) 54 Delta of Orkhon and 21,405 0 0.0 15,758 73.6 Selenge Rivers 55 Khan Khentii SPA 1,234,755 0 0.0 111,675 9.0 56 Gorkhi-Terelj National 293,937 0 0.0 62,493 21.3 Park 57 Maikhant Mountain 42,015 1,721 138 1,859 4.4 42,015 100.0 58 Valleys of Khurkh- 35,722 460 460 1.3 0.0 Khuiten Rivers 59 Onon-Balj 104,841 219 219 0.2 14,951 14.3 60 Khar Yamaat Nature 51,404 0 0.0 41,521 80.8 Reserve 61 Ganga Lakes 26,841 43 43 0.2 0.0 62 Shaazan Lake 5,485 3,752 3,752 68.4 5,485 100.0 63 Tsengeleg Lakes 8,877 0 0.0 0.0 64 Turgen Tsagaan, Zegst, 35,282 1,272 1,272 3.6 22,023 62.4 Tuulaitiyn Bur 65 Ugtam Nature Reserve 46,162 442 442 1.0 12,245 26.5 66 Mongol Daguur 309,440 25,049 25,049 8.1 15,179 4.9 67 Khukh Lake 11,548 0 0.0 0.0 68 Buir Lake 90,476 0 0.0 0.0 69 Tashgain Tavan Lakes 53,304 53,304 53,304 100.0 0.0 70 Nomrog 378,097 0 0.0 0.0 All sites 8,358,313 724,512 175 724,687 8.7 874,505 10.5 141 Annex 11. Tourist camps located in or adjacent to State SPAs Tourist camp name State SPA name Category Bogdkhaan Complex Bogd Khan Uul Strictly Protected Area Manzushir Bogd Khan Uul Strictly Protected Area Ovoonii Enger Bogd Khan Uul Strictly Protected Area River Beach Bogd Khan Uul Strictly Protected Area Star Observatory Bogd Khan Uul Strictly Protected Area Tsagaan Shonkhor Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 1 Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 2 Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 3 Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 4 Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 7 Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 8 Bogd Khan Uul Strictly Protected Area Ulaanbaatar Camp 9 Bogd Khan Uul Strictly Protected Area Buuveit Gorkhi-Terelj National Park Melkhii Khad Gorkhi-Terelj National Park San Juulchin Gorkhi-Terelj National Park Terelj Bumban Gorkhi-Terelj National Park Terelj Camp 1 Gorkhi-Terelj National Park Terelj Camp 2 Gorkhi-Terelj National Park Terelj Camp 3 Gorkhi-Terelj National Park Terelj Camp 4 Gorkhi-Terelj National Park Terelj Camp 5 Gorkhi-Terelj National Park Terelj Camp 6 Gorkhi-Terelj National Park Terelj Camp 7 Gorkhi-Terelj National Park Terelj Camp 8 Gorkhi-Terelj National Park Terelj Camp 9 Gorkhi-Terelj National Park Terelj Camp 10 Gorkhi-Terelj National Park Terelj Camp 11 Gorkhi-Terelj National Park Terelj Camp 12 Gorkhi-Terelj National Park Terelj Camp 13 Gorkhi-Terelj National Park Terelj Camp 14 Gorkhi-Terelj National Park Terelj Camp 15 Gorkhi-Terelj National Park 142 Tourist camp name State SPA name Category Terelj Camp 16 Gorkhi-Terelj National Park Terelj Camp 17 Gorkhi-Terelj National Park Terelj Camp 18 Gorkhi-Terelj National Park Terelj Camp 19 Gorkhi-Terelj National Park Terelj Camp 20 Gorkhi-Terelj National Park Terelj Camp 21 Gorkhi-Terelj National Park Terelj Camp 22 Gorkhi-Terelj National Park Terelj Camp 23 Gorkhi-Terelj National Park Terelj Camp 24 Gorkhi-Terelj National Park Terelj Camp 25 Gorkhi-Terelj National Park Terelj Camp 26 Gorkhi-Terelj National Park Terelj Camp 27 Gorkhi-Terelj National Park Terelj Camp 28 Gorkhi-Terelj National Park Terelj Camp 29 Gorkhi-Terelj National Park Terelj Camp 30 Gorkhi-Terelj National Park Terelj Camp 31 Gorkhi-Terelj National Park Terelj Camp 33 Gorkhi-Terelj National Park Terelj Camp 34 Gorkhi-Terelj National Park UB 2 Gorkhi-Terelj National Park Khashkhan Khangain Nuruu National Park Orkhon Camp 1 Khangain Nuruu National Park Orkhon Camp 2 Khangain Nuruu National Park Orkhon Camp 3 Khangain Nuruu National Park Orkhon Camp 4 Khangain Nuruu National Park Orkhon Camp 5 Khangain Nuruu National Park Orkhon Camp 6 Khangain Nuruu National Park Orkhon Camp 7 Khangain Nuruu National Park Talbiun Khangain Nuruu National Park Khogno camp Khogno Tarna National Park Khognokhaan Camp 1 Khogno Tarna National Park Khognokhaan Camp 3 Khogno Tarna National Park Khorgo Camp 1 Khorgo Trekhiin Tsagaan Nuur National Park Khorgo Camp 2 Khorgo Trekhiin Tsagaan Nuur National Park Sortiin Tulga Khorgo Trekhiin Tsagaan Nuur National Park 143 Tourist camp name State SPA name Category Khovsgol camp 1 Khovsgol Lake National Park Khovsgol camp 2 Khovsgol Lake National Park Khovsgol camp 3 Khovsgol Lake National Park Khovsgol camp 4 Khovsgol Lake National Park Khovsgol camp 5 Khovsgol Lake National Park Khovsgol camp 6 Khovsgol Lake National Park Khovsgol camp 7 Khovsgol Lake National Park Khovsgol camp 8 Khovsgol Lake National Park Khovsgol Dalai Khovsgol Lake National Park Khovsgol Khaan Khovsgol Lake National Park Uyanga Khovsgol Lake National Park Khetsuu Khad Khyargas Lake National Park Moltsog Els Moltsog Els National Park Khaan Taij Otkhonii Khundii National Park Shiveet Mankhan Otkhonii Khundii National Park Tsaidam Otkhonii Khundii National Park Tsenkher Jiguur Otkhonii Khundii National Park Ugtam Ugtam Nature Reserve 144 Annex 12. Tourist camps located in or adjacent to Local SPAs Tourist camp name Local SPA name Baga Gazriin Chuluu Baga Gazriin Chuluu Enkh Baruun Ol Bayanzag Camp 1 Bayanzag Khangai Discovery Bulgan Khangai Uul Gobi Camp 2 Gobi Gurvan Saikhan Juulchin Gobi Gobi Gurvan Saikhan Tuvshin Gobi Gurvan Saikhan Khaan Taij Kharkhorin Orkhon Camp 7 Kharkhorin Moltsog Els Moltsog Els Camp 5 Nariin Khamar Khatan Ogii Ogii Lake and surrounding area Ogii Camp 1 Ogii Lake and surrounding area Ogii Camp 2 Ogii Lake and surrounding area Ogii Camp 3 Ogii Lake and surrounding area Ikh Gobi Ongiin Khiid Shargaljuut Tuin Gol River Valley 145 Annex 13. Tourist camps located in or adjacent to IBAs Tourist camp Tourist camp Name of IBA Name of IBA name name Khetsuu Khad Airag Lake Terelj Camp 29 Gorkhi-Terelj National Park Buuveit Gorkhi-Terelj National Park Terelj Camp 30 Gorkhi-Terelj National Park Melkhii Khad Gorkhi-Terelj National Park Terelj Camp 31 Gorkhi-Terelj National Park San Juulchin Gorkhi-Terelj National Park Terelj Camp 32 Gorkhi-Terelj National Park Terelj Bumban Gorkhi-Terelj National Park Terelj Camp 33 Gorkhi-Terelj National Park Terelj Camp 1 Gorkhi-Terelj National Park Terelj Camp 34 Gorkhi-Terelj National Park Terelj Camp 2 Gorkhi-Terelj National Park UB 2 Gorkhi-Terelj National Park Terelj Camp 3 Gorkhi-Terelj National Park Khashkhan Khangain Nuruu National Park Terelj Camp 4 Gorkhi-Terelj National Park Orkhon Camp 1 Khangain Nuruu National Park Terelj Camp 5 Gorkhi-Terelj National Park Orkhon Camp 2 Khangain Nuruu National Park Terelj Camp 6 Gorkhi-Terelj National Park Orkhon Camp 3 Khangain Nuruu National Park Terelj Camp 7 Gorkhi-Terelj National Park Orkhon Camp 4 Khangain Nuruu National Park Terelj Camp 8 Gorkhi-Terelj National Park Orkhon Camp 5 Khangain Nuruu National Park Terelj Camp 9 Gorkhi-Terelj National Park Orkhon Camp 6 Khangain Nuruu National Park Terelj Camp 10 Gorkhi-Terelj National Park Orkhon Camp 7 Khangain Nuruu National Park Terelj Camp 11 Gorkhi-Terelj National Park Talbiun Khangain Nuruu National Park Terelj Camp 12 Gorkhi-Terelj National Park Khovsgol Camp 1 Khovsgol Lake Terelj Camp 13 Gorkhi-Terelj National Park Khovsgol Camp 2 Khovsgol Lake Terelj Camp 14 Gorkhi-Terelj National Park Khovsgol Camp 3 Khovsgol Lake Terelj Camp 15 Gorkhi-Terelj National Park Khovsgol Camp 4 Khovsgol Lake Terelj Camp 16 Gorkhi-Terelj National Park Khovsgol Camp 5 Khovsgol Lake Terelj Camp 17 Gorkhi-Terelj National Park Khovsgol Camp 6 Khovsgol Lake Terelj Camp 18 Gorkhi-Terelj National Park Khovsgol Camp 7 Khovsgol Lake Terelj Camp 19 Gorkhi-Terelj National Park Khovsgol Camp 8 Khovsgol Lake Terelj Camp 20 Gorkhi-Terelj National Park Khovsgol Dalai Khovsgol Lake Terelj Camp 21 Gorkhi-Terelj National Park Khovsgol Khaan Khovsgol Lake Terelj Camp 22 Gorkhi-Terelj National Park Ogii Ogii Lake Terelj Camp 23 Gorkhi-Terelj National Park Ogii Camp 4 Ogii Lake Terelj Camp 24 Gorkhi-Terelj National Park Enkh Shaazan Lake Terelj Camp 25 Gorkhi-Terelj National Park Khorgo Camp 1 Terkhiin Tsagaan Lake Terelj Camp 26 Gorkhi-Terelj National Park Khorgo Camp 2 Terkhiin Tsagaan Lake Terelj Camp 27 Gorkhi-Terelj National Park Ugtam Ugtam Nature Reserve Terelj Camp 28 Gorkhi-Terelj National Park 146 Map 1. State Special Protected Areas in Mongolia, as of June 2008 147 Map 2. Local Special Protected Areas in Mongolia, as of May 2008 148 Map 3. Internationally protected areas in Mongolia 149 Map 4. Natural sacred sites in Mongolia 150 Map 5. Important Bird Areas in Mongolia 151 Map 6. Consolidated set of critical natural habitats in Mongolia 152 Map 7. Exploration licences in Mongolia, as of May 2008 153 Map 8. Location of tourist camps in Mongolia 154 Map 9. Overlap between critical natural habitats and exploration licences 155 Map 10. Overlap between critical natural habitats and mining licences 156 Map 11. Overlap between critical natural habitats and areas within 20 km of mining licences 157 Map 12. Overlap between critical natural habitats and tourist camps 158 Map 13. Overlap between critical natural habitats and exploration and mining licences in the north-east of Dornod aimag 159 Map 14. Overlap between State SPAs, IBAs and exploration and mining licences in Omnogobi aimag 160 Map 15. Overlap between Ikh Gazriin Chuluu Nature Reserve and exploration and mining licences 161 Map 16. Overlap between Nagalkhan Nature Reserve and exploration and mining licences 162 Map 17. Overlap between Suikhent Uul Monument and exploration and mining licences 163 Map 18. Overlap between Tavan Tolgoi Local SPA and exploration and mining licences 164 Map 19. Overlap between Dashinchilen Bayan Lake IBA and exploration and mining licences 165 Map 20. Overlap between Tashgain Tavan Lakes IBA and exploration and mining licences 166 Map 21. Overlap between Tsengel Khairkhan Mountain IBA and exploration and mining licences 167 Map 22. Overlap between Shaazan Lake IBA and exploration and mining licences 168 Map 23. Overlap between Galba Gobi IBA and exploration and mining licences 169