State Mining Corporation Limited is a state-owned mining enterprise that has been established in the year 2015 with the intention to promote the economy of Bhutan using nation’s natural resources. The enterprise is a subsidiary part of Druk Holding and Investment (DHI) and therefore operates under the strict laws of Royal Government of Bhutan while upholding the major principles of Gross National Happiness (GNH).
SMCL is headed by some of the leading mining and geological experts that ensures scientific and sustainable mining techniques. This not only ensures better usage of national resources but make sure that no harm is done to the overall environment and also contribute to the development of nation. Bhutan is a land known for being the rich source of natural resources and with SMCL, the government of Bhutan ensures transparency in the mining industry.
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2014 State Mining Corporation Limited was started in the month of December, 2014 under Druk Holding & Investments (DHI). The mining firm was started with an aim towards responsible mining by extracting natural resources and utilizing it towards the growth and development of the local communities while minimizing the negative impacts towards the environment.
Headed by leading experts from geological and mining industries, we had setup two mining departments to streamline the workflow and categorize the responsibilities. The team was divided based on project planning, acquiring new projects, and improving operations efficiency.
Project DivisionThe department focuses on finding and conducting studies on minerals of Bhutan along with getting project approval from the government. They also try to incorporate new techniques and mining methods that promotes sustainable mining.
Mines Operation DivisionThe Mines Operation Division oversees the development, production, and restoration of mines. The department focuses on ensuring scientific mining methods and effective resource use for optimal equipment performance.
2016 Habrang Coal Mine was the first coal mine operated by SMCL, began operations in 2016. Located at Khatoethang Chiwog, Phuntshothang Gewog under Samdrup Jongkhar District, the mine covers a total leased area of 144.51 acres with an estimated mineable reserve of 243,757.93 MT. Later, in 2023, the mine’s extraction target was set at 5,006 MT, reflecting SMCL’s commitment to responsible and efficient coal production in Bhutan.
This year SMCL began its coal mining operations in Tshopangma Coal Mine, located in the Samdrup Jongkhar District. The mining was conducted with 2 year of extraction periods averaging 45,000 MT annually. Being the major source of coal in the country, the mine helped to stabilize the prices of coal while being a constant supplier for industrial operations. Apart from coal resources, the mine was also create numerous employment opportunities for local communities.
2018 Dzongthung Stone Quarry is a dolomite mine located in Bartsham Gewog, Trashigang District, that has been run by SMCL since 2018. The 37.5-acre quarry has a 2,250,000-MT mineable deposit and produces 100,000 MT on average per year. SMCL established a production goal of 50,000 MT for 2023, focusing on effective and ecologically conscious dolomite extraction. The mine also contributes towards the development of infrastructure and local employment. This year we were able to witness 67% of increase in the coal production as compared to 2017 which was our greatest achievement.
In the year 2019, SMCL extracted over 75,000 tons of coal from the mines of Habrang and Rishore which accounted to 42% of the country’s total coal production. From 2019 to 2022, SMCL started projects for Coal, Dolomite and Gypsum across 4 different mines, Khothakpa Gypsum Mine, Chunaikhola Dolomite Mine, Rishore Coal Mine and Majuwa Coal Mine.
With an annual production of 400,000 MT Gypsum, the Khothakpa Gypsum Mine in Pemagatshel has been the most profitable quarry of SMCL. Since 2016, it has provided gypsum both locally and for export to Bangladesh, Nepal, and India. the mine creates substantial cash, promotes local employment, and benefits the community.
Despite suffering through the pandemic of Covid-19, SMCL was able to secure better financials with production and sale. Due to better results and positive outcome in the mining industry, the Royal Government of Bhutan granted SMCL with long-term lease for Gypsum and Dolomite in the year 2022.
Promoting the nation's mineral sector forward by investing in responsible practices, ensuring that resource wealth translates into durable value and equity for all future citizens with possible growth to the nation's economy.
To be the national standard for scientifically guided and sustainable mining of our national mineral resources. We also aim to maximize the contribution to the country's wealth while adhering to the Gross National Happiness principles.
