COUNTRY BACKGROUND - Gross National Happiness Commission

Mineral Development
Table 19.2 Estimated Production of Selected Minerals 1985-89 (in MT)
19.18 In current prices, mining and quarrying sector achieved a compound growth rate of 20% between 1980/89.
However, the growth has slowed down and even declined after 1986. The GDP of the mining and quarrying sector
was estimated at Nu 37.4 m in 1986 and declined to Nu 35.7 m in 1989 with a 0.8% share of GDP in 1989.
However, the fall in the gross product of mining and quarrying sector might not have actually occurred considering
the expansion of activities over this period. The fall may be attributable to a lack of data on prices and output of
mines.
19.19 In terms of the objective of increasing self-sufficiency of the Department of Geology and Mines,
achievements were not met largely due to financial constraints. The funds provided were absorbed by the recurrent
expenditure of the Department, so that only 2 drilling machines could be purchased. Other activities such as
manpower training and the construction programme to establish laboratory, geological museum and geological
laboratories had to be postponed.
19.20 A number of mineral explorations were carried out by both the Department of Geology and Mines and
Geological Survey of India, Bhutan Unit. As detailed in Section A, many deposits were proved in specific areas.
Based on these discoveries, several mineral based plants such as Ferro Alloys Limited, Mini Cement Plant in
Gumto, Nanglam Cement Plant, etc, will be established (see Chapter 18 for more details on these projects).
III. Objectives and Strategy for the 7FYPIII. Objectives and Strategy for the 7FYP
A. Objectives for the 7FYPA. Objectives for the 7FYP
19.21 The objective of the mining and quarrying sector for the 7FYP are related to national objectives of
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Minerals
· self-reliance and sustainability
· efficient utilization of natural resources
· diversification of the economy
1985 1986 1987 1988 1989
Dolomite 105033 231822 235128 207429 218413
Limestone 161596 192424 177706 168704 131546
Gypsum 10198 24838 20146 27997 48308
Coal 26669 30155 36600 19066 20816
19.22 The objectives of the mining and quarrying sector in the 7FYP will remain the same as the objectives of the
6FYP, namely to:
· increase the share of mining and mineral-based industries in GDP; and
· increase self-sufficiency of Department of Geology and Mines in the area of area of mineral
exploration, geological mapping and engineering geology.
B. Strategies for Achieving ObjectivesB. Strategies for Achieving Objectives
19.23 The institutional capability of the Department of Geology and Mines requires strengthening through the
provision of well equipped research and analytical facilities such as mineralogical, geo-chemical and geo-technical
laboratories. The existing analytical laboratory is not capable to carry out a routine geo-chemical survey. The
samples are usually sent out of the country but this practice is expensive and cumbersome. The private sector
cannot develop the capability to carry out any mapping, reconnaissance and exploration for some time, which is
required to generate greater knowledge of the mineral resources. For this purpose, laboratories facilities such as
petrological and mineralogical laboratory will be necessary to carry out mapping and mineral identification.