𝐍𝐚𝐭𝐢𝐨𝐧’𝐬 𝐂𝐨𝐚𝐥 𝐀𝐧𝐝 𝐓𝐚𝐥𝐜 𝐑𝐞𝐬𝐞𝐫𝐯𝐞𝐬 𝐅𝐮𝐥𝐥𝐲 𝐃𝐞𝐩𝐥𝐞𝐭𝐞𝐝 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐢𝐧𝐠 𝐔𝐫𝐠𝐞𝐧𝐭 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞

…𝒄𝒐𝒂𝒍 𝒂𝒏𝒅 𝒕𝒂𝒍𝒄 𝒆𝒙𝒕𝒓𝒂𝒄𝒕𝒊𝒐𝒏𝒔 𝒉𝒂𝒗𝒆 𝒆𝒙𝒄𝒆𝒆𝒅𝒆𝒅 𝒌𝒏𝒐𝒘𝒏 𝒓𝒆𝒔𝒆𝒓𝒗𝒆𝒔 𝒔𝒊𝒏𝒄𝒆 2018, 𝒑𝒓𝒐𝒎𝒑𝒕𝒊𝒏𝒈 𝒄𝒂𝒍𝒍𝒔 𝒇𝒐𝒓 𝒖𝒑𝒅𝒂𝒕𝒆𝒅 𝒔𝒖𝒓𝒗𝒆𝒚𝒔, 𝒓𝒆𝒔𝒑𝒐𝒏𝒔𝒊𝒃𝒍𝒆 𝒎𝒊𝒏𝒊𝒏𝒈, 𝒂𝒏𝒅 𝒂𝒍𝒕𝒆𝒓𝒏𝒂𝒕𝒊𝒗𝒆 𝒆𝒏𝒆𝒓𝒈𝒚 𝒔𝒐𝒍𝒖𝒕𝒊𝒐𝒏𝒔

By Sonam Choden

The nation’s natural resource base is showing early signs of strain. The Annual Environmental Accounts Statistics 2025, released by the National Statistics Bureau (NSB), reveals that the country’s coal and talc reserves have been fully depleted- the first time any known mineral stock has been declared null in the nation’s environmental asset accounts. The finding highlights both environmental and economic challenges, emphasizing the urgent need for smarter resource management and long-term sustainability planning.

According to the NSB, coal and talc extractions have exceeded known reserves since 2018, suggesting that mining activities have outpaced geological assessments. Both minerals were categorized as possible reserves, estimated with low confidence and limited geological certainty. While this does not necessarily mean that no undiscovered deposits remain, it signals a pressing need for updated geological surveys and revised extraction policies.

Between 2015 and 2024, coal extraction averaged 0.14 million metric tons annually, peaking at 0.19 million metric tons in 2018 and 2019. Talc production, though smaller in scale, saw a sharp rise in 2024, jumping from 0.0007 to 0.003 million metric tons. The report warns that continued extraction beyond recorded reserves indicates reliance on unaccounted or residual deposits, an unsustainable pattern that calls for urgent intervention.

However, the Ministry of Energy and Natural Resources (MoENR) has clarified that the country’s coal resources are not entirely exhausted. “The coal reserves in the country are not yet exhausted,” the Ministry stated, adding that known coal resources amount to approximately 5.656 million metric tons located in Samdrup Jongkhar Dzongkhag, particularly in the Deothang and Tshophangma areas. The Ministry noted that active mines, including Habrang, Reshore, and Tshophangma, continue to operate under the State Mining Corporation Limited (SMCL). It further explained that substantial unexploited coal deposits exist in other geological formations not yet incorporated into the national resource inventory.

To bridge this data gap, the Department of Geology and Mines (DGM) has initiated Airborne Geophysical Surveys across the country to update geological information and improve the accuracy of national mineral accounts. These efforts aim to ensure that extraction practices are informed by real-time data and reflect a more complete picture of the nation’s mineral wealth. Meanwhile, the Ministry acknowledged that industries with coal-based processes have increasingly turned to imported coal from India and other countries. The reliance on imported coal, it said, may continue if domestic reserves prove inadequate to sustain industrial demand.

At the same time, the MoENR is exploring alternative energy solutions to reduce long-term dependence on coal. Initiatives such as green hydrogen production and the electrification of industrial processes using renewable electricity have been outlined in the National Green Hydrogen Roadmap. These efforts are part of the country’s broader strategy to reconcile its clean energy goals with industrial needs. While balancing renewable energy ambitions with ongoing mineral extraction remains complex, officials emphasized that minerals such as dolomite, limestone, and gypsum continue to play a vital role in the economy, serving as critical inputs for construction, manufacturing, and exports. “We encourage responsible extraction through environmental management plans and regular monitoring,” the Ministry said. “Cleaner technologies, rehabilitation of mined-out areas, and efficient resource use are key to minimizing waste.”

The NSB’s mineral asset accounting, developed under the System of Environmental-Economic Accounting (SEEA) framework, highlights the economic stakes of this issue. Among the country’s mineral assets, dolomite remains the most valuable, with a net present value (NPV) of Nu. 161.46 billion, followed by limestone at Nu. 36.24 billion and gypsum at Nu. 5 billion. In contrast, the depletion of coal and talc has reduced their NPV to zero, eliminating them as contributors to mineral wealth. The Ministry has therefore proposed revisions to the Mines and Minerals Act and royalty rates under the Revised Taxes and Levies Act of Bhutan 2016, aiming to strengthen fiscal returns and promote more sustainable resource use. It has also announced plans to develop a National Energy Information System (EIS) to consolidate and standardize data collection across energy and mining sectors.

Overextraction of coal and talc highlights growing concerns related to land degradation, waste management, and emissions control. Although the overall carbon footprint remains relatively low, the increased reliance on imported fossil fuels and domestic mineral extraction has placed mounting pressure on natural systems. Without stronger safeguards and more data-driven planning, the nation risks undermining its own principles of sustainability and intergenerational equity.

Strengthening governance in the extractive sector will be essential to address the country’s growing resource challenges. Updating geological surveys, enforcing extraction caps, and investing in resource-efficient technologies are critical to ensuring that mining activities align with the nation’s sustainability commitments. The depletion of coal and talc marks more than the end of two minerals; it represents a pivotal moment for Bhutan’s natural resource management and its broader vision of balancing economic development with long-term sustainability.