Mining Division (Budget Proposal 2020-2021)

Mining evaluation and

Enhance compliance
information services.
and monitoring of mines
SUB-PROGRAM CODE/ACT CODE Enhance scientific Joint group of expert
and quarries
mining operation (JGE) Meeting on Flood
Management
035/003.00 035/004.00
ACTIVITY/PROJECT CODE To enhance scientific To enhance compliance Conduct training for Development of Joint group of expert
mining operation and monitoring of mines privite mining sector to Mines Meeting on Flood
and quarries enhance compliance Administration Management
and technical capacity System

SUB ACT CODE/FINANCE ITEM

003.01/ 0001 004.01/0001 004.04/ 0001 NA
CODE
01.01 Pay & Allowances
02.01 Other personnel Emoluments
11.01 Travel Incountry 1.000 8.000
11.02 Travel outside Bhutan 0.044
Utilities-Tele., Telex, Fax, E-mail,
12.01
Internet
Utilities-telegram, Wt, Transmission,
12.02
postage
12.03 Utilities-Electricity, Water, Sewerage
Utilities-Fuel wood: firewood, fuel,
12.05
LPG, Kerosene
13.01 Rental of Properties-Building 0.717
Rental of Properties-Furniture,
13.04 0.023
Equipment
S & Land
& M - Office Supplies, prtg.,
14.01
Publications
S & M - Medicines & Laboratory
14.02
consumables
S & M - Uniforms, Extension Kits,
14.06 0.665
Linens
15.01 Maintenance of Property - Building
15.02 Maintenance of Property - Vehicles
15.05 Maintenance of Property - Equipments
15.07 Maintenance of Property - Computers
17.01 Op. Exp. - Advertising
Op.Exp-
17.02 Taxes,Duties,Royalties,Handling 0.126
Charges,Bank Charges
17.03 Op. Exp.- Transportation 0.300
Op.Exp-Incountry Meetings and
17.08 0.200
Celebration
17.09 Op. Exp. - Survey and Census
18.01 Hospitality & Entertainment
24.03 Contributions- provident fund
25.01 Retirement Benefits
Training - Human Resource
45.01
Development
45.02 Training - Others 1.000
 Plant & Equipt. - General tools,
52.08
Instruments
54.01 Furniture 0.500
54.02 Office Equipment 0.800 0.500
54.03 Computers & Peripherals 0.500
55.01 Professional Services 2.000
Total 2.540 10.791 1.000 2.000 0.044

CURRENT (million Nu.) 11.075

CAPITAL (million Nu.) 5.300
TOTAL (million Nu.) 16.375
051 Enhance scientific mining

Enhance scientific mining CURRENT CAPITAL TOTAL WRITE UP

operation

11.01 Travel - Incountry 1.000 0.000 1.000 The Mineral sector is recognised as one of the five economic jewels to enhance the economy of the nation.
The current revenue generaion from the mineral setor is reported as sluggish in number of audit reports .
Further, the recent performance audit on tax on mining projects a notional loss of over a billion ngultrum .
We are of the opinion that such lossess and non groweing revenue generations were due to lack of proper
compliance monitoring of the mining and related activities . In the upcoming financial year, the department
is priotrizing and emphasizing to carry out compliance monitoring stringently so as to detect and remedy
the cause of lossess and to ensure operation of mines in line with the mining act and regulations . This is
even important to strengthen the mining sector and to enhance the revenue generaion. For doing so, the
frequency of field visit by the inspectors as well as the engineers will have to be increased . Thus we
proposed for a sufficient travel budget as estimated above.Other activities in the field includes despatch of
minerals, inspection for illegal ativities, field visit for the lease of new mines and renewals, research, transfer
grants (the 70 field inspector are shuffeled every after 5 years from one region to another as required by
BCSR for vulnerable group), etc.
With the OD exercise carried out by RCSC, the requirement of additional staffs were recommended and
accordingly the department has recruited 2 mning engineers and 1 environmentalist to enhance the
compliance monitoring. The increment in the budget is due to increase in the staffs and also increase in
TA/DA amount.

13.01 Rental of Properties - Buildings 0.717 0.000 0.717 1. The Regional Office at Samdrupjongkha is rented at Nu. 12500 per month
2. The Regional Office at Gomtu is rented at the rate of Nu. 2237 per month.
3. The Regional Office at Khasadrapchu, located at more stragic location, is rented at Nu.
11500.00 per month.
4. The Regional Office at Wangdue is rented at Nu. 9000/month .
5. Site Office at Kalikhola is rented at Nu. 4500 per month.
6. Site Offices located at strategic location due to increasing mining activities are being identified
and proposed Nanglam and Trashigang-Mongar with monthly rent of Nu. 10000 each. -
Samdrupjongkhar office to be relocated
13.04 Rental of Properties - Furniture, 0.023 0.000 0.023 The Regional Office of this department at Pugli, Gomtu, Samtse has occupied a land (44866 sq.ft) belonging
Equipment and Land to PCAL. The land was occupied by the department when the Chunaikhola Dolomite Mine was leased to
Jigme Mining Corporation in 2005 along with the land. The land was earlier used by the other mining
operators in the past 2 to 3 decades. When PCAL found that the land belongs to them, DGM requested them
for use of the land on which we have set up the office of the Regional Coordinator. Therefore, was their
'Thram' the department a lease agreement was drawn whereby DGM shall pay lease rent of Nu. 22433.40
(@Nu.0.5/sq.ft) to PCAL

54.02 Office equipment 0.800 0.800 Curently the Mining Division is using Leica RTK which is not very effecive in Thickly
vegetative and vergin area especially for Topo Survey and Stakeout survey. To improve the
accuracy of the survey data, the Leica TS06 (Total station) is highly recomended which cost
Nu. 8,00,000 for set.

0
TOTAL 1.740 0.800 2.540
PROG OBJECT TITLE
RAM CODE
CODE

051 Enhance CURRENT CAPITAL TOTAL WRITE UP

compliance and
monitoring of mines
and quarries

Enhance
compliance and
monitoring of mines
and quarries
11.01 Travel - Incountry 8.000 0.000 8.000 The Mineral sector is recognised as one of the five economic jewels to enhance the economy
of the nation. The current revenue generaion from the mineral setor is reported as sluggish in
number of audit reports . Further, the recent performance audit on tax on mining projects a
notional loss of over a billion ngultrum . We are of the opinion that such lossess and non
groweing revenue generations were due to lack of proper compliance monitoring of the
mining and related activities . In the upcoming financial year, the department is priotrizing
and emphasizing to carry out compliance monitoring stringently so as to detect and remedy
the cause of lossess and to ensure operation of mines in line with the mining act and
regulations . This is even important to strengthen the mining sector and to enhance the
revenue generaion. For doing so, the frequency of field visit by the inspectors as well as the
engineers will have to be increased . Thus we proposed for a sufficient travel budget as
estimated above.Other activities in the field includes despatch of minerals, inspection for
illegal ativities, field visit for the lease of new mines and renewals, research, transfer grants
(the 70 field inspector are shuffeled every after 5 years from one region to another as
required by BCSR for vulnerable group), etc.
With the OD exercise carried out by RCSC, the requirement of additional staffs were
recommended and accordingly the department has recruited 2 mning engineers and 1
environmentalist to enhance the compliance monitoring. The increment in the budget is due
to increase in the staffs and also increase in TA/DA amount.

14.06 S & M - Uniform, 0.665 0.000 0.665 The budget is proposed for the procurement of Safety Boots/jackets/helmets (Personal
Extension Kits, Protective equipment)/uniforms for the filed staffs and engineers (95 staffs). In the last FY,
Linens the staff has been provided with the safety boots only as the budget was not sufficient to
purcahse uniforms with the available budget.
17.08 Op. Exp- In-country 0.200 0.000 0.200 Mining Division coordinates and conducts Mine Leasing Technical Committee meeting of
meetings and the department atleast once a month which comprises of ex-officio and technical experts
celebration from the department. The committee is formed inline with the existing MMMR 2002 to
discuss applications and matters related to leasing of mines in the country. The division used
to get the budget every FY untill FY 2019 to 2020 in which no budget was approved to the
division. It would be important to serve with altleast tea and snacks to the members to boost
the meeting sessions which is mandatory to be held. Further, the budget is also proposed for
the Regional Coordinator's Meeting bianually. Howver since no budget was allocated in the
las FY 2019-2020, no meeting could be conducted. Such meetings are being carried out to
discuss the field issues faced by the Regional Offices at site and which has been very
effective. All administrative issues which needs intervention from the Head Office are
discussed and streamlined. All 7 Regional Coordinators and senior inspectors attend the
meeting at Thimphu. Each meeting generally takes place for a period of 2-3 days. The budget
is proposed to meet the expenses of the meeting.

17.02 Op. Exp-Taxes, 0.126 0.000 0.126 The Regional Office at Samtse will be required to pay land tax since 2012 and building tax
Duties, royalties, since 2014. The delay has been occured since the URC was issued only in December 2018.
handling Charges, The total due amount payable is Nu. 111035.85 with annual tax being Nu. 1420.28 (land tax
bank, Charges and building tax).

17.03 Transportation 0.300 0.000 0.300 The 7 regional offices has no pool vehicles allocated. The department have surrenderd upon
the instruction from the governmnet 8 pool vehicles and was replaced with only 2 pool
vehicles. The transportation facilities is vital for effective monitoring of the mines/quarries
by the regional offices. Therefore, the budget is proposed for hiring of vehicles. Further, to
meet pool vehicle requirements for other adhoc activities, meetings and seminars.
54.01 0.000 0.500 0.500 To strengthen the institutional capacity of the 7 DGM Regional Offices, it has become
critical to refurbish the office spaces with adequate furniture such as tables and chairs, file
racks, etc. Further, Mines Inspectors were not issued with individual furniture and work
stations during their initial appointment since they are required to be mobile and transferred
between regions after specific during in their postings. It was also pointed out by the RAA
and other agencies that the working conditions of the regional offices are in "pathetic
condition" without adequate working spaces and even basic heating/cooling facilities.
Therefore, the budget is proposed to procure adequate furniture, carpets and basic
heating/cooling facilities in all the Regional Offices of DGM.
Furniture

54.02 Office Equipment 0.000 0.500 0.500 Similar to furniture, regional offices lack office equipment such as computers, printers and
copier machines. Mines Inspectors are required to undertake lots of recording and reportings
and maintain accurate Mines Insformation. Further, DGM has developed the web based
online information and compliance monitoring system where every Mines Inspectors are
required to update and render online services on a daily basis. Therefore, the proposed budget
shall be used to procure the necessary office equipment to strenthen the capacity of the
regional offices to enhance the compliance monitoring of the mines and quarries in the
country.
54.03 Computers and 0.000 0.500 0.500 Similar to furniture, regional offices lack office equipment such as computers, printers and
peripherals copier machines. Mines Inspectors are required to undertake lots of recording and reportings
and maintain accurate Mines Insformation. Further, DGM has developed the web based
online information and compliance monitoring system where every Mines Inspectors are
required to update and render online services on a daily basis. Therefore, the proposed budget
shall be used to procure the necessary office equipment to strenthen the capacity of the
regional offices to enhance the compliance monitoring of the mines and quarries in the
country.

Total amount 9.291 1.500 10.791

PROGRAM OBJECT TITLE
CODE CODE

Conduct training CURRENT CAPITAL TOTAL WRITE UP

for privite mining
sector to enhance
compliance and
technical capacity

45.02 Training Others 0.000 1.000 1.000 The mineral sectors' major challenge is recruitment of mining professional. With no
institution in the country having capacity to train these professional, the mineral sector
is not able to recruit required professionals for proper implementation of mine plans.
With the government emphasising on creating job oppurtinities for the nationals, the
strategy to increase employment would be providing trainings targeting specific
professionals where by the mining sector can replace exptraite workers. The department
has identified such professions and will provide training. The budget is proposed for
the training which will be carried out inhouse.

TOTAL 0.000 1.000 1.000

 Development of Mines Administration System
FISCAL YEAR 2020-21
PROPOSED ESTIMATES

Object Code Activity CURRENT CAPITAL WRITE UP

55.01 Professional services 0.000 2.000 The department currently has no database for storage and
dissimination of annual records. The department will be
developing a comprehensive database to store and dissiminate the
information. Prior to the development of the sysem, the internet
connectivity of 7 Regional Offices has to be ensured with fibre
optics and visit each Regional Offices for development of template
for the databse.

Total amount 0.000 2.000

 Joint group of expert Meeting on Flood Management
FISCAL YEAR 2020-2021
PROPOSED ESTIMATES

Object Code Activity CURRENT CAPITAL WRITE UP

11.02 Travel-ex country 0.044 0.000 The Joint Group of Experts (JGE) meeting is held annually
between India and Bhutan to discuss the issues related to flood
managemeent. The meeting is being coordinated by NCHM while
held in Bhutan. During the 9th JGE meeting held at Punkha,
Bhutan in 2020, it was decided that the next JGE meeting will be
held at Digha, West Bengal.

Total amount 0.044 0.000