The Forest and Nature Conservation Act (FNCA) of Bhutan 1995 will be amended as the FNCA Bill 2021 will be tabled in the forthcoming session of the National Assembly. While there are certain changes in the new act, an important provision in the new act concerns change in the definition of “Forest Produce,” which has serious ramifications as boulders, stone, sand, gravel, rocks, peat, surface soil are no longer considered “Forest Product.” Similarly, the Mines and Minerals Management Regulations 2022, does not say anything about the above natural resources. While agencies involved in this were looking forward to the Mines and Minerals Bill 2020 to be passed and adopted, the indefinite deferment of the Act has left important natural state assets like sand, boulders and others without any authorizing agency.
Section 3, g, of the Forest and Nature Conservation Act (FNCA) of Bhutan 1995 states: "Forest Produce" includes the following, whether or not found in the Forests: (i) trees and parts or product of trees including timber, firewood, charcoal, bark, wood-oil, resin, latex or natural varnish, katha/kutch, etc; (ii) wild plants and parts or products of wild plants including flowers, seeds, bulbs,roots, fruits, leaves, grasses, creepers, reeds, orchids, bamboo, cane, fungi, moss, medicinal plants, herbs, leaf mould, or other vegetative growth, whether alive or dead; (iii) wild animals, including fish, and parts or products of wild animals including skin, hides, feathers, fur, horn/antlers, tusks, bones, bile, musk, honey, wax, lac; and (iv) boulders, stone, sand, gravel, rocks, peat, surface soil.
Thus, Section 3,g, iv, of the former Act is clear that boulders, stone, sand, gravel, rocks, peat, surface soil constitute Forest Produce. However, the new Bill to be tabled does not mention anything about boulders, stone, sand, gravel, rocks, peat, surface soil. And as mentioned earlier the Mines and Minerals Management Regulations 2022, also does not say anything about the above natural resources, leading to questions as to who would regulate these important economic resources of the country, until the Mines and Minerals Bill 2020, is passed.
Member of the National Assembly from Draaagteng –Langthel constituency, Trongsa Gyem Dorji, who is the chairperson of the committed dealing with the Forest and Natural Resources Bill, agreed that they are also concerned about the absence of a regulating agency. “We are concerned too and to this affect we have had discussions with the Department of Geology and Mines. We are yet to get back from them,” he said.
On the other hand, Director, Department of Forest and Park Services, Lobzang Dorji said boulders, stone, sand, gravel, rocks, peat and surface soil have been removed as there have been several issues concerning this, some of which has even reached the Anti-corruption Commission (ACC). However, the director said that until such time as the Mines and Minerals Act is not adopted, the DoFPS will continue as the regulating issue.
A member from the National Council clarified that until the Mines and Minerals Act 2021 is adopted, an executive order can be issued from the government, which will say who the regulating agency would be.
While The Journalist could not contact the Department of Geology and Mines, a private businessman said that sand and boulders are a “big headache” for any organization handling it. “Perhaps, no one wants to be the regulating agency and is so waiting for the Mines and Minerals Act. And no one knows when it will be passed.”
The sale of boulders and sand generate huge revenues for the government. According to the 2021 Annual Report of the Natural Resources Development Corporation Limited (NRDCL), a company under Druk Holdings and Investments (DHI) involved in the boulder and sand business, a total revenue of Nu.189.288 million was earned from sale of sand in 2020 against the target of Nu.239.467 million as compared to revenue earning of Nu. 250.774 million in 2019. Additionally, the total revenue of Nu. 33.441 million was earned from sale of stone in 2020 against the target of Nu. 86.885 million as compared to revenue earning of Nu.75.983 million in 2019, as it was also affected by the COVID 19 pandemic.
Similarly, total revenue of Nu. 21.252 million was earned from the sale of stone aggregates in 2020 against the target of Nu. 22.995 million as compared to revenue earning of Nu. 18.818 million in 2019.
Boulders are exported to India and Bangladesh. In an interview with a national weekly in November 2021, Lyonpo Loknath Sharma, Minister of Economic Affairs had said that with a guaranteed market, boulder export, among others, will be able to help the national economy bounce back. Lyonpo had said boulder trade has become lucrative over the years, which is evident from the surge in the number of exporters.
Section 3, g, of the Forest and Nature Conservation Act (FNCA) of Bhutan 1995 states: "Forest Produce" includes the following, whether or not found in the Forests: (i) trees and parts or product of trees including timber, firewood, charcoal, bark, wood-oil, resin, latex or natural varnish, katha/kutch, etc; (ii) wild plants and parts or products of wild plants including flowers, seeds, bulbs,roots, fruits, leaves, grasses, creepers, reeds, orchids, bamboo, cane, fungi, moss, medicinal plants, herbs, leaf mould, or other vegetative growth, whether alive or dead; (iii) wild animals, including fish, and parts or products of wild animals including skin, hides, feathers, fur, horn/antlers, tusks, bones, bile, musk, honey, wax, lac; and (iv) boulders, stone, sand, gravel, rocks, peat, surface soil.
Thus, Section 3,g, iv, of the former Act is clear that boulders, stone, sand, gravel, rocks, peat, surface soil constitute Forest Produce. However, the new Bill to be tabled does not mention anything about boulders, stone, sand, gravel, rocks, peat, surface soil. And as mentioned earlier the Mines and Minerals Management Regulations 2022, also does not say anything about the above natural resources, leading to questions as to who would regulate these important economic resources of the country, until the Mines and Minerals Bill 2020, is passed.
Member of the National Assembly from Draaagteng –Langthel constituency, Trongsa Gyem Dorji, who is the chairperson of the committed dealing with the Forest and Natural Resources Bill, agreed that they are also concerned about the absence of a regulating agency. “We are concerned too and to this affect we have had discussions with the Department of Geology and Mines. We are yet to get back from them,” he said.
On the other hand, Director, Department of Forest and Park Services, Lobzang Dorji said boulders, stone, sand, gravel, rocks, peat and surface soil have been removed as there have been several issues concerning this, some of which has even reached the Anti-corruption Commission (ACC). However, the director said that until such time as the Mines and Minerals Act is not adopted, the DoFPS will continue as the regulating issue.
A member from the National Council clarified that until the Mines and Minerals Act 2021 is adopted, an executive order can be issued from the government, which will say who the regulating agency would be.
While The Journalist could not contact the Department of Geology and Mines, a private businessman said that sand and boulders are a “big headache” for any organization handling it. “Perhaps, no one wants to be the regulating agency and is so waiting for the Mines and Minerals Act. And no one knows when it will be passed.”
The sale of boulders and sand generate huge revenues for the government. According to the 2021 Annual Report of the Natural Resources Development Corporation Limited (NRDCL), a company under Druk Holdings and Investments (DHI) involved in the boulder and sand business, a total revenue of Nu.189.288 million was earned from sale of sand in 2020 against the target of Nu.239.467 million as compared to revenue earning of Nu. 250.774 million in 2019. Additionally, the total revenue of Nu. 33.441 million was earned from sale of stone in 2020 against the target of Nu. 86.885 million as compared to revenue earning of Nu.75.983 million in 2019, as it was also affected by the COVID 19 pandemic.
Similarly, total revenue of Nu. 21.252 million was earned from the sale of stone aggregates in 2020 against the target of Nu. 22.995 million as compared to revenue earning of Nu. 18.818 million in 2019.
Boulders are exported to India and Bangladesh. In an interview with a national weekly in November 2021, Lyonpo Loknath Sharma, Minister of Economic Affairs had said that with a guaranteed market, boulder export, among others, will be able to help the national economy bounce back. Lyonpo had said boulder trade has become lucrative over the years, which is evident from the surge in the number of exporters.
