Through the planetGOLD Mongolia project, the AGC has been collaborating with ASM community in Selenge province, Mongolia. Particularly, we work with three ASGM Organizations in Mandal soum, to secure formalization, access mercury-free technologies, and enable their access to formal gold markets since 2019.
Shijir Khishig Mining Partnership (SKP) located in the Selenge Province, Mongolia was established in 2012. Leading by Ms. Tuya Damdinjamts, the SKP consists of 11 members (4 women and 7 males).
The SKP’s operation is well-established and is partially permitted under the Mongolian artisanal mining regulations.
According to the initiative of SKP leader Ms. Tuya Damdinjamts, the SKP opened the first artisanal mining horizontal shaft in Mongolia, which is the one currently operating at Noyot Mountain in Selenge province. Following the success of the SKP, a number of ASM partnerships developed their own horizontal shafts at the mountain.
Additionally, the SKP is one of the few partnerships in Mongolia that passed the strict requirements of the Fairmined standard.
As a result, the SKP is a model partnership not only in the region but also in Mongolia.
The AGC has been working with the SKP in three major areas.
1. Establishing mercury-free processing plant
Since 2019, the AGC has been piloting two mercury-free processing systems (MFPS) in Mongolia through the planetGOLD Mongolia project to prevent mercury usage, increase gold recovery of hard-rock rock gold ore processing, implement international standards on responsible ASM (ensure transparency of gold origin), promote formalized operations, and share best practice experience with other processing plants in Mongolia.
The SKP is one of these two piloting MFPS, and the AGC is working to establish basic infrastructure for the MFPS, including buildings, equipment, water, and power supply. In addition, the AGC is working to establish a well-trained management and implementation team that is capable of working in a sustainable manner, so conducting operations and maintenance trainings for the SKP members who will work on the MFPS to familiarize them with equipment assembly and functions, as well as ensuring their future workplace safety.
assembly and functions, as well as ensuring their future workplace safety.To make sure MFPS technologies are operated safely, the AGC plans to provide additional trainings every three to six months. In addition, the AGC will be the one to write out the MFPSs' operational procedures manual, as well as inspection sheets for the equipment and a maintenance log.
The MFPS was developed as a chemical-free, gravimetric technology that can handle 8 metric tons of ore per day and is expected to recover 60-70% of the entire gold.
Furthermore, the AGC has been actively seeking the necessary permissions, including the Feasibility Study Report and Detailed Environmental Impact Assessment, to ensure that the MFPS can legally operate.
2. Enabling its access to formal gold markets
2.1 Implementing the CRAFT Code/planetGOLD criteria standard
The AGC is the first organization which is trying to implement the planetGOLD criteria standard, which is a branched-out version of the CRAFT Code (The Code of Risk-mitigation for Artisanal and small-scale Mining Engaging in Formal Trade) in Mongolia.
The planetGOLD criteria standard was set out by the planetGOLD programme to govern the operations of artisanal and small-scale gold mining entities engaged with the programme. Conformance with the criteria will ensure that artisanal and small-scale miners participating in the planetGOLD programme undertake sufficient efforts to avoid, minimize, mitigate, and where appropriate, offset adverse impacts posed to people and the environment. In addition, by adhering to these criteria, mining entities will enhance their ability to attract financing and sell their gold products to formal markets. More about planetGOLD criteria to be found here.
Following the selection of three Mongolian ASM organizations in July 2022, the criteria were put into action by the AGC. The AGC performed an initial assessment of the SKP and developed a work plan to enhance its operations and meet the requirements; the SKP is one of these partnerships.
The main activities indicated in the plan were to capacitate and inform the SKP members about the main criterion and the individual topics, such as occupational safety and health, human rights, gender issues, formalization, and so on. In addition, one of the main goals of the plan was to give assistance to the SKP to adapt its internal rules and documents to align with both the local legislation and the planetGOLD criteria.
Facilitating and educating SKP members on the main criteria and specific subjects (e.g., occupational safety and health, human rights, gender issues, formalization, etc.) were the primary activities outlined in the plan. Also, helping the SKP update its internal rules and documents to comply with local legislation and planetGOLD criteria was a primary objective of the plan.
Additionally, according to the criteria, the SKP chosen a member to serve as a CRAFT officer responsible for compliance. So, the AGC has been providing ongoing training and capacity building for the CRAFT officer so that the SKP can effectively implement the criteria.
As a result of the changes to the internal rules and recording templates, the SKP is now able to refer to the core principles of the organization, which are mainly based on:
The AGC also developed a Code of Conduct and Environmental Policy for the SKP. Moreover, the AGC assisted in creating information posters and boards covering guidelines for occupational health and safety, environmental management, compliance with the CRAFT Code and planetGOLD criteria, organizational structure, and ethical mining processes.
2.2 Developing a Social Investment Plan
The AGC developed a Social Investment Plan (SIP) for the SKP to present to potential investors about their mining activities, organizational management, geological context, ore extraction and processing methods, and potential investment requirements. The SIP will further serve as a template for partnerships to utilize in their future investment presentations.
3. Conducting capacity-building activities
Skilled and knowledgeable artisanal miners can contribute to the AGC’s goal to improving the working conditions, opportunities, environment, and health of the millions of people involved in ASGM in the developing world.
In order to assist Mongolian artisanal miners, particularly those in Selenge province, with formalizing their operations, operating responsibly in accordance with applicable legislation, and acquiring knowledge and skills in areas such as operational safety and health, gender and human rights, environmental practice, business management, and more, the AGC has been organizing trainings and other capacity building activities for these artisanal miners since 2019.
The SKP members are usually key participants in all of capacity-building activities. As of the end of 2023, the SKP members had participated around 20 trainings and other capacity-building activities organized by the AGC in various themes:
Trainings:
1. Minamata convention
2. ESMP
3. Due diligence
4. ASM formalization
5. Responsible mining
6. Management and Leadership
7. Environmental rehabilitation
8. Organizational management
9. Operational health and safety
10. OHS legislaton in ASGM
11. Gender and human rights
12. First aid
13. CRAFT criteria
14. Business project development
15. Tree planting and nursing
Trainings:
1. New ASM Regulation workshop
2. Taxation and Social Insurance
3. ASGM Fora
4. Community meetings
The AGC is always trying to use various participatory methods and approaches, games, and motivating tools to the capacity-building activities while taking into account the unique characteristics of artisanal miners, and these approaches are always effective in engaging and encouraging artisanal miners during trainings and other activities.The AGC is always trying to use various participatory methods and approaches, games, and motivating tools to the capacity-building activities while taking into account the unique characteristics of artisanal miners, and these approaches are always effective in engaging and encouraging artisanal miners during trainings and other activities.
The SKP’s related photos are available here.
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Tunkhel Manlai Mining Partnership (TMP), located in Tunkhel village, Selenge Province, Mongolia, was established in 2021. Led by Mr. Ganzorig Battulga, the TMP consists of 9 members (1 woman and 8 males).
They started the excavation of a horizontal shaft in the formal land in a mining area called Bulag in 2021.
The TMP’s leader, Mr. Ganzorig Battulga, also owns a processing plant in the Tunkhel town center, and due to its closeness, the plant presents lower travel costs for the miners of Tunkhel, but because of the poor equipment and low recovery rates, those advantages are diminished. That’s why the TMP was attracted to the investment opportunity, and the AGC is cooperating with this mining partnership.
Since the beginning of the planetGOLD Mongolia project in 2019, one of the AGC’s main goals has been to bring economic, environmental, and other benefits to the community of the main project site, Tunkhel village, Selenge province, Mongolia, and working with the TMP in three major areas. In this way, we support the ASGM formalization process and professional approach in ASGM Sector in Mongolia.
1. Establishing a mercury-free processing plant
Since 2019, the AGC has been piloting two mercury-free processing systems (MFPS) in Mongolia through the planetGOLD Mongolia project to prevent mercury usage, increase gold recovery of hard-rock gold ore processing, implement international standards on responsible ASM (ensure transparency of gold origin), promote formalized operations, and share best practice experience with other processing plants in Mongolia.
The TMP is one of these two piloting MFPS because most miners at the Bulag site in Tunkhel village process their ore at a processing plant in Bornuur, located 32 km from the site, resulting in higher transportation costs. The miners also sell their gold there since they may have access to some informal credit from the owner of the processing plant.
As a result, the AGC decided to support and improve the TMP's processing plant in order to benefit the local mining community and is now working to establish basic infrastructure for the MFPS, including buildings, equipment, water, and power supply. Furthermore, the AGC is working to establish a well-trained management and implementation team capable of working in a sustainable manner, as well as conducting operations and maintenance trainings for the TMP members who will work on the MFPS to familiarize them with equipment assembly and functions and to ensure their future workplace safety.
To make sure MFPS technologies are operated safely, the AGC plans to provide additional training every three to six months. In addition, the AGC will be the one to write out the MFPS's operational procedures manual, as well as inspection sheets for the equipment and a maintenance log.
The MFPS was developed as a mercury-free, gravimetric technology that can handle 8 metric tons of ore per day and is expected to recover 60–70% of the entire gold. Furthermore, the AGC has been actively seeking the necessary permissions, including the Feasibility Study Report and Detailed Environmental Impact Assessment, to ensure that the MFPS can legally operate.
2. Enabling its access to formal gold markets
The AGC is the first organization that is trying to implement the planetGOLD criteria standard, which is a branched-out version of the CRAFT Code (the Code of Risk Mitigation for Artisanal and Small-scale Mining Engaging in Formal Trade) in Mongolia.
The planetGOLD criteria standard was set out by the planetGOLD programme to govern the operations of artisanal and small-scale gold mining entities engaged with the programme. Conformance with the criteria will ensure that artisanal and small-scale miners participating in the planetGOLD programme undertake sufficient efforts to avoid, minimize, mitigate, and where appropriate, offset adverse impacts posed to people and the environment. In addition, by adhering to these criteria, mining entities will enhance their ability to attract financing and sell their gold products to formal markets. More about the planetGOLD criteria to be found here.
Following the selection of three Mongolian ASM organizations in July 2022, the criteria were put into action by the AGC. The AGC performed an initial assessment of the TMP and developed a work plan to enhance its operations and meet the requirements; the TMP is one of these partnerships.
The main activities indicated in the plan were to capacitate and inform the TMP members about the main criterion and the individual topics, such as occupational safety and health, human rights, gender issues, formalization, and so on. In addition, one of the main goals of the plan was to give assistance to the TMP to adapt its internal rules and documents to align with both the local legislation and the planetGOLD criteria.
Facilitating and educating TMP members on the main criteria and specific subjects (e.g., occupational safety and health, human rights, gender issues, formalization, etc.) were the primary activities outlined in the plan. Also, helping the TMP update its internal rules and documents to comply with local legislation and planetGOLD criteria was a primary objective of the plan.
Additionally, according to the criteria, the TMP chosen a member to serve as a CRAFT officer responsible for compliance. So, the AGC has been providing ongoing training and capacity-building for the CRAFT officer so that the TMP can effectively implement the criteria.
As a result of the changes to the internal rules and recording templates, the TMP is now able to refer to the core principles of the organization, which are mainly based on:
The AGC also developed a Code of Conduct and Environmental Policy for the TMP. Moreover, the AGC assisted in creating information posters and boards covering guidelines for occupational health and safety, environmental management, compliance with the CRAFT Code and planetGOLD criteria, organizational structure, and ethical mining processes.
3. Conducting capacity-building activities
Skilled and knowledgeable artisanal miners can contribute to the AGC’s goal in improving the working conditions, opportunities, environment, and health of the millions of people involved in ASGM in the developing world.
In order to assist artisanal and small-scale miners in Mongolia, particularly those in Selenge province, with formalizing their operations, operating responsibly in accordance with applicable legislation, and acquiring knowledge and skills in areas such as operational safety and health, gender and human rights, environmental practice, business management, and more, the AGC has been organizing trainings and other capacity-building activities for these artisanal miners since 2019.
The TMP members actively participate in capacity-building activities of the AGC and actively showing interest in developing responsible mining in the area of Tunkhel.
As of the end of 2023, the TMP members had participated in around 20 trainings and other capacity-building activities organized by the AGC in various themes:
Trainings:
1. Minamata convention
2. ESMP
3. Due diligence
4. ASM Legislation and Formalization
5. Taxation and Social Insurance
6. Responsible mining
7. Management and leadership
8. Environmental rehabilitation
9. Organizational management
10. Establishing Saving and credit cooperative
11. Operational health and safety
12. OHS legislaton in ASGM
13. Gender and human rights
14. First aid
15. CRAFT criteria
16. Business project development
17. Tree planting and nursing
Other activities:
1. New ASM Regulation Workshop
2. ASGM Fora
3. Community Days
The AGC is always trying to use various participatory methods and approaches, games, and motivating tools for capacity-building activities while taking into account the unique characteristics of artisanal miners, and these approaches are always effective in engaging and encouraging artisanal miners during trainings and other activities.
The TMP’s related photos are available here.
Artisanal miners in Tunkhel have created a non-governmental organization to voice their opinions and protect their rights, called Baatarvangiin Khishig NGO (BVK) in 2010. The BVK has been the main organization representing the artisanal miners of Tunkhel village, and it consists of 180 members (26 women and 164 men) from 4 registered and 32 unregistered mining partnerships.
The AGC has been working with the BVK in areas to enable access to efficient ore processing facilities and formal gold markets, implement a business model, and capacity building.
1. Enabling formal access to ore processing and gold market through responsible and professional practices
The ASM partnerships of BVK members in Tunkhel will be able to implement proper standards together with the TMP (MFPS-2), and as a result of the cooperation, they will be able to create access to miners where they can get economic benefits through high rate recovery ore processing facility. The AGC is the first organization trying to implement the planetGOLD criteria standard, which is a branched-out version of the CRAFT Code (The Code of Risk Mitigation for Artisanal and Small-scale Mining Engaging in Formal Trade) in Mongolia. More about planetGOLD criteria can be found here.
The AGC performed an initial assessment of the BVK and developed a work plan to enhance its operations and meet the requirements; the BVK is one of these mining organizations.
The main activities indicated in the plan were to capacitate and inform the BVK members about the main criterion and the individual topics, such as occupational safety and health, human rights, gender issues, formalization, and so on. In addition, one of the main goals of the plan was to give assistance to the BVK to adapt its internal rules and documents to align with both the local legislation and the planetGOLD criteria. Additionally, according to the criteria, the BVK chosen a member to serve as a CRAFT officer responsible for compliance. So, the AGC has been providing ongoing training and capacity-building for the CRAFT officer so that the BVK can effectively implement the criteria.
The AGC also developed a Code of Conduct and Environmental Policy for the BVK. Moreover, the AGC assisted in creating information posters and boards covering guidelines for occupational health and safety, environmental management, compliance with the CRAFT Code and planetGOLD criteria, organizational structure, and ethical mining processes.
2. Developing and implementing a Social Enterprise Business Model
The miners of the Baatarvangiin Khishig NGO are not now direct beneficiaries of the AGC's pilot mercury-free processing system (MFPS) in Tunkhel village. However, because the miners of this NGO constitute the majority of the miners in the village, the AGC's goal is to involve them in the development and improvement of the Tunkhel MFPS, as well as to include them as beneficiaries of the plant's operations.
After considering the expectations, current situation, reserve assessment, and future of mining activities in Tunkhel, as well as the pros and cons of various possible organizational forms, the AGC has developed a Social Enterprise Business Model concept to increase financial access of not only BVK members, but also all miners in Tunkhel.
The concept proposed by the AGC is to establish a Savings and Credit Cooperative (SCC), which will be partially funded by the profitable operation of the Tunkhel MFPS. The SCC would be a financial institution owned and operated by the miners themselves, allowing them to pool their resources and collectively benefit from the savings and credit operation.
The AGC introduced the Concept to the miners in Tunkhel which was welcomed by the miners. Following extensive discussions, the Tunkhel miners decided to establish the SCC and the AGC has been working to obtain the special license on SCC from the Financial Regulatory Commission of Mongolia.
If the concept implemented successfully, the cooperative and the business model set up for Tunkhel village will be regarded as an example and model for other mining communities in Mongolia. In addition, the cooperative will have the potential to result in a small lending mechanism, the end of illegal mining in an area near a forest reserve, a formalization process of a much larger group of miners, coordination in the mining activity within the cooperative reducing safety risks, mercury-free gold produced, improved health and safety, an increased level of economic activity at the community level, access to additional revenues for the local community, and so on.
3. Strengthen capacity-building
Skilled and knowledgeable artisanal miners can contribute to the AGC’s goal to improving the working conditions, opportunities, environment, and health of the millions of people involved in ASGM in the developing world.
In order to assist Mongolian artisanal miners, particularly those in Selenge province, with formalizing their operations, operating responsibly in accordance with applicable legislation, and acquiring knowledge and skills in areas such as operational safety and health, gender and human rights, environmental practice, business management, and more, the AGC has been organizing trainings and other capacity-building activities for these artisanal miners since 2019.
The members of BVK are actively involved in ASM Regulation Workshop, ASGM Fora and Community Day.
The AGC’s capacity activities are based on participatory approaches with user-friendly and adult learning methods.
The BVK’s related photos are available here.
