L.Davaatsedev, executive director of Blast Company, tells G. Iderkhangai why he does not support the move to transfer control of blasting operations in mining work to the Defence Ministry.
The spring session of Parliament will discuss a new draft law on the use of explosives and blasting equipment. Do we need amendments to the present law?The first ever Mongolian law to regulate blasting work in mining was approved by Parliament in May, 2004 and this still governs the use of explosives and accessories. I acted as head of the working group that worked on drafting that law. It took everybody time to get acquainted with and used to the law but officials began to successfully enforce it by 2007. The responsibility for administering the provisions rests with the Ministry of Mineral Recourses and Energy. Every single blasting operation by any company should be recorded and detailed accounts kept of the manufacture, sale, transport, use, storage, and import of all explosives. There should also be a clear record of all explosives that are not used for any reason. The Ministry issues licences to companies to carry out blasting.
The whole business of blasting was streamlined following adoption and implementation of the law, but a few years ago defence officials approached then president, N.Enkhbayar, with suggestions for some amendments on grounds of national security. He placed these before the National Security Council and together they prepared some recommendations but then the Council transferred the responsibility to the Ministry of Defence.
There the matter rested because of the election and other issues of more immediate importance until last year, when some MPs took it up again. They have now prepared the present draft amendments that are to be discussed soon.
The thrust of the amendments is to transfer responsibility for all things to do with blasting, from issue of licence onward, from the Ministry of Mineral Resources to the Ministry of Defence. I see no need for this.
Why? First, the law is quite effectively enforced at present, with no complaints from any of the stake holders. Any shift in the process and procedures will create uncertainty in the blasting sector and adjustment to the new regime will take time, something the mining sector is keen to avoid.
Second, blasting is profitable business and the Ministry of Mineral Resources has the knowledge and the expertise to regulate this, as all contracts with foreign countries and suppliers pass through it.
There would be chaos if the status quo is changed. The explosives imported by our defence services cannot be equated with those used in mining. Blasting companies import their equipment and explosives from neighbors, after providing guarantees that these will be used for only peaceful and industrial purposes. Since they work under the control of the State Inspection Authority, the chances of misuse are almost nil. There is thus no threat of the kind the defence people are concerned about. Industrial and military explosives cannot be treated equally.
How do our two neighbours regulate the use of explosives?
We import the raw material for explosives from either China or Russia. The Russian Inspection Authority of Mining Technology regulates everything to do with blasting material and equipment. It monitors their manufacture in the private sector and allows export only when our companies satisfy it about the civil purpose for which they want to buy.
In China, the Ministry of Science, Technology and Manufacturing has a department of blasting affairs. At one time the Chinese Defence Ministry did have the responsibility but as China opened up its economy and realised the need to attract foreign investment to develop mining, it relaxed controls and gave all authority to a civilian ministry. This is the practice in most countries, and there is no need for Mongolia to be different, particularly as the present system works well.
I must explain that there are two drafts pending discussion. One has been prepared under the leadership of E. Munk-Ochir and Z. Enkhbold, and this is the one that aims to transfer regulatory powers to the Ministry of Defence and this is the one I do not favor. MPs H. Badamsuren and S. Oyun took the leading role in formulating the other draft which keeps the authority where it is now but proposes changes in some regulations which are sensible and welcome.
Parliament should certainly rectify some imperfections in the current law. For example, there should be better coordination between state organizations dealing with blasting companies and their operation. But this does not mean having a change in the ministry that will issue the licence. The situation in our economy and mining has changed in the past few years and it will not be a smart move to cause confusion or chaos when the Ministry of Mineral Resources and Energy has finally acquired the professional experience and expertise needed for the job.
Will the draft proposals help improve the quality of control?
The control system now followed is quite comprehensive and secure. The Ministry issues licences only after getting the requests cleared by the Inspection Authority. The General Police Department and the General Intelligence Department oversee the safety and security aspects of all blasting operations. The National Emergency Commission monitors storage and use of explosives, so good care is taken of security concerns.
The General Authority of State Inspection has to be kept informed of how every single gram of explosive is used, when and how. Traffic police controls transportation of explosives and, then, the General Police Department reviews each permission. Troops must accompany all vehicles carrying explosives. Security is adequate and complete. Incidentally, use of explosives in government work is not so well controlled, with far less coordination of information among monitoring organisations.
My view is that the Defence Ministry could be made responsible for safety of warehouses and/or transportation but there is no need to involve it in every single detail of daily blasting operations.
What about some incidents where security was found to be lax? In one, explosives were stolen from the Bor-Undor Mine, and in the other, 125 kilos of ammonium hydrate was found in Ulaanbaatar.
This was a failure on the part of the companies. Business entities are 100% responsible for the safekeeping of all the material for which they have a licence. Companies have to exercise the utmost caution. We do have some small exploration companies that are not always careful with their blasting. The dangers of carelessness are great. Faulty or unintended explosions can lead to fatalities, and to destruction of property and nature. That is why regulation is necessary and imposed.
Mongolian companies have begun to produce explosives locally. Will production be sufficient to meet domestic needs?
Import of explosives has already decreased drastically, following local production of most common explosives. However, additional booster chemicals and accessories in small amounts are still imported. Also, ammonium hydrate, the main ingredient to produce explosives, has to be imported. Before a planned blast in a mine or during exploration, the blasting company sets up the explosion after mixing imported raw materials.
Erdenet is the gest consumer of explosive emulsion. Is it true that it produces all its needs?
The Erdenet Copper Corporation has been producing all the explosive emulsion it needs since 1995. But it does not sell its product. Our company set up a plant in 2008, with capacity to meet the entire Mongolian demand for emulsion explosives. Another pant was recently built in Nariinsukhait and has been running quite successfully. Similar plants will be built at Oyu Tolgoi and Tavan Tolgoi for their own use. All this will obviate the need to take explosives to remote areas from Ulaanbaatar, considerably reducing risks. As chemical industries develop in Mongolia, the quality of explosives produced here will also reach world standards.