Tripartite agreements between the local governor, ASM partnerships and fluorite purchasing companies.
2017-03-27

The SAM Project’s leadership team conducted a two-day trip to Dundgobi aimag and Khuld soum, where they met with governors, government officials and miners. The aimag and soum governments are supportive of ASM operations. Based on Government Regulation #308, the Dundgobi Aimag Khural approved a regulation for aimag ASM operations. The Khuld soum governor also entered into contracts with two ASM partnerships that allow 252 local miners to work on the “Tuimert Tsagaan” fluorite site, about 10km from the soum centre. The contracted miners pay taxes and health and social insurance. The soum government provides a certificate of origin for purchasing companies to export fluorite to China and Russia.

Khuld soum has high-quality fluorite, of a 85-92 percent grade. Fifty percent of Khuld soum’s general service budget now comes from ASM operations. The soum governor said the miners’ income and their livelihoods had improved through ASM organisation and formalisation, and many retired locals were also now working as miners.

The team also visited a small sewing workshop in the Khuld soum centre that is run by five female members of the “Takhilgat Lusiin Bulag” ASM NGO who received a small SAM Project grant through a World Vision program in 2016. Members also manage a savings group that is particularly beneficial for lower-income miners.

The main issue in fluorite mining soums is the selection of purchasing companies. Dundgobi aimag’s regulation for ASM operations within the aimag was largely aimed at coordinating the purchase of fluorite from miners. It selected four local companies to purchase fluorite from miners in Khuld soum through tripartite contacts. Large equipment is required to extract fluorite from hillsides, which is then transported to the site for miners to collect and sort. Thanks to the tripartite agreements between the soum governor, ASM partnerships and fluorite purchasing companies, there is an active mining and purchasing operation on site.

However, the aimag governor said more training on ASM organisation, formalisation and occupational safety and health were needed for miners. A task force supporting and coordinating ASM operations was established in Khuld soum that is headed by the vice-governor. 

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