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Mining The Resources
Minding the future
News briefs

BBC report blames Mongolian Government for potentially undermining mining boom

In a piece entitled “Traditional Mongolia transformed by mining riches” which aired on Monday night, Justin Rowlatt, a journalist for the BBC’s Newsnight, reported that Mongolia has the opportunity to make all Mongolians materially better off because of the immense mineral wealth that the country possesses.

He described Mongolia as one of the poorest countries in the world with many Mongolians living in “shantytowns” with limited access to roads, electricity, and sanitation.

Rowlatt foresees that mining may change all this, especially Oyu Tolgoi, which the piece mentions will account for 30 percent of Mongolia’s GDP and benefit every Mongolia for decades.  He describes the mineral resources of Oyu Tolgoi as “the size of the island of Manhattan” and views the Gobi as virtually useless, except for a few camel herders, if it were not for its mineral wealth.

In the report, the Mongolian government is portrayed as desiring to change an agreement with the mining giant Rio Tinto.  Rowlatt wonders if the government’s actions will scare off Rio Tinto and other investors and, therefore, prevent Mongolians from becoming better off.  The government is also seen as spending money it does not yet have for frivolous purposes.

Newsnight is broadcast daily on BBC Two from 10:30 pm to 11:20 pm and also airs weekly on BBC World News, the company’s international channel.