Khothakpa Gypsum Mine

Khothakpa Gypsum Mine is located in Khothakpa Village under Shumar Gewog, Pemagatshel Dzongkhag, Bhutan. This mine has been operated by the State Mining Corporation Limited (SMCL) since 2019, following a history of various operators.

Geological and Operational Details

• Geological Reserve: The mine has a geological reserve of approximately 4,080,000 metric tons (MT) of gypsum, with earlier geological explorations by the Geological Survey of India from 1968 to 1973 estimating a total reserve of 25.942 million MT with a grade exceeding 80% of CaSO₄·2H₂O.
• Mineable Reserve: The mineable reserve is around 947,201.06 MT.
• Average Annual Production: The average annual production capacity is approximately 400,000 MT, reflecting consistent operational output.
• Total Leased Area: The total area leased for mining operations spans about 64.14 acres.

Historical Context

Gypsum mining in Khothakpa dates back to the early 1980s when the erstwhile Geological Survey of Bhutan initiated operations for about 3.5 years. Subsequently, Penden Cement Authority Limited operated the mine to meet its gypsum requirements for cement production. In 1993, the mine was auctioned to Druk Satair Corporation Limited (DSCL) for two consecutive terms of 10 and 15 years, respectively, until December 2018.Upon the expiration of DSCL's lease, the government granted SMCL an interim operational lease for two years starting January 1, 2019. On April 18, 2022, a Memorandum of Understanding (MoU) was signed between the Ministry of Economic Affairs and Druk Holding and Investments Limited to lease the Khothakpa Gypsum Mine for an extended period of 15 years.

Economic Impact

The Khothakpa Gypsum Mine significantly contributes to Bhutan's economy by generating substantial revenue through exports primarily to India, as well as to Bangladesh and Nepal. The mine also provides local employment opportunities and supports transport services for local truckers. SMCL's operations have been financially successful; in its initial years, it reported a profit margin of approximately 28.36%, with significant investments leading to high returns.The mine's operations have also fostered community engagement and benefit-sharing initiatives with local residents, enhancing its socio-economic impact on the Shumar community.

Future Prospects

With ongoing efforts to implement sustainable mining practices, SMCL aims to optimize production efficiency while addressing environmental concerns. The mine's substantial reserves suggest long-term viability for continued operations, which are expected to support both local employment and national economic growth.In summary, Khothakpa Gypsum Mine is a vital asset for Bhutan's mining sector, characterized by its significant reserves and production capacity that contribute meaningfully to the regional economy and community development.