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Mongolians Seek Fortune In Gold, But At A Cost

By Louisa Lim

Published September 7, 2009 10:08 AM

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Ninja miners carry a ram by motorcycle through a gold mining camp in Mongolia.

"Ninja" miners carry a ram by motorcycle through a gold mining camp in Uyanga soum, Mongolia. (Ariana Lindquist for NPR)

A 21st-century gold rush is taking place in Mongolia.

Its huge gold reserves were only discovered after the former Soviet satellite started democratic reforms in 1990. Now, gold fever has gripped the country, with an estimated 100,000 Mongolians working as informal miners, many of them herders who have left their flocks behind.

But the work of these miners is causing untold damage to the environment.

Known as "ninja" miners — with their plastic gold-panning basins slung over their backs, they resemble TV's Teenage Mutant Ninja Turtles — they do not possess the necessary mining licenses and thus operate illegally.

But they produce more gold than the formal industrial mining sector, which alone contributes more than 20 percent of Mongolia's gross domestic product. So by necessity, the government turns a blind eye to the ninja miners.

Gold's Economic Allure

A miner digs a pit at a gold mine in Uyanga, Mongolia, to look for "gold dirt." The sought after dirt is a different shade, indicating that it may contain gold.(Ariana Lindquist for NPR)

In the mining settlement of Uyanga in central Mongolia, deep holes honeycomb the dusty, lunar landscape as whole families dig and sift the earth, panning for gold.

"If I don't find anything, I'll have nothing to eat," says Dondog Tumurchudur, a herder-turned-miner. "I can't make enough money from herding."

"I spend sleepless nights thinking about where to dig to find gold," adds another miner named Nergui, as he examines the tiny dots of gold that represent the day's work. "And if we don't find any, we're depressed, depressed enough to die."

In 2006, the national average salary was about $60 a month, yet miners can easily make three or four times that amount.

A young miner digs a small pit mine in Uyanga, Mongolia. The dirt is loaded into sacks, or onto flatbeds trucks, and brought to an area with water so it can be panned.(Ariana Lindquist for NPR)

Robin Grayson, founder of Eco-Minex International, an environmental and mining consultancy, wrote one of the first reports on the ninja phenomenon.

"With one-sixth of the population somehow involved, [ninja mining] is an enormous cash-kick to the economy," he says. "Otherwise, the rural areas have almost nothing."

End Of The Free-For-All

Grayson believes the ninjas should be legalized and allocated land for small-scale mining.

"The main objection is that the official gold rush has been so fast and furious that nearly all the land has been taken up with exploration licenses or is already state-protected because of wildlife considerations," he explains.

In the past, the mining area of Uyanga — about 300 miles southwest of the capital, Ulan Bator — was pretty much up for grabs, swarming with ninja miners who staked their claims wherever they pleased.

But the ninjas say in the past year dozens of larger mining companies have divided up the best land, hemming the ninjas into ever smaller spaces. Nergui, who like many Mongolians goes by only one name, says the companies act with impunity against the ninjas.

"Security guards watch their land at night," he says. "If they catch us on their land, they break our pans and beat us with batons. I've been beaten up twice. We don't have any laws here. There is a lot of robbery and violence, but the police say it's our fault for being here."

Herders Have 'No Way Back'

The environmental damage of the gold rush is clear. Once-green grasslands have been ripped up and streams are drying out.

In other parts of the country where hard-rock mining is practiced, the ninjas are literally poisoning the landscape with the chemicals needed to extract the gold, according to Arshad Sayed, the World Bank's representative in Mongolia.

"The negative side is people using chemicals like cyanide, mercury, others, which are very detrimental to the environment and ecosystem, and can seriously damage water sources," he says.

On the streets of Ulan Bator, one group of former herders is calling for action. The group is camped outside the parliament building, holding a hunger strike and addressing onlookers with loudspeakers.

Their tally is sobering: They say mining has caused 850 rivers and more than 1,000 lakes to go dry. They want more regulation for mining licenses.

A demonstrator, Dechindorj Ganbold, says he has come here prepared to die.

"We've lost our grassland. We've lost everything. How unfortunate we are that we had gold in our land. Without gold, our rivers would flow and life would be normal. Now there's no way back," he says.

In Uyanga, the impact of mining is clear. A new breed of nomad is emerging, going wherever the gold is rumored to be to mine or provide services for the ninjas. It's a sign of Mongolia's changing economy. Once based on herding, it's now heavily dependent on mining.

The ninjas can't afford to miss out on this mineral wealth. But at the same time, they fear they are trading their land, their way of life, even their culture, for these tiny specks of gold.

View Transcript

RENEE MONTAGNE, host:

Outer Mongolia has long been a byword for the far reaches of the planet. All this week, we'll be reporting from that vast, remote country. Today, we look at how Mongolia has become a new El Dorado. Its huge gold reserves were only discovered after it shook off communist rule in 1990. Now gold fever has Mongolia in its grip, with illegal miners producing as much gold as the formal mining companies and causing untold damage, as NPR's Louisa Lim reports.

(Soundbite of machinery)

LOUISA LIM: This is the 21st century gold rush in the Wild West of Mongolia. An estimated 100,000 Mongolians, many of them nomadic herders, spend their days panning and digging for gold. These are the Ninja Miners. Named for their plastic gold-panning basins slung over their backs, they resemble the "Teenage Mutant Ninja Turtles" of the television cartoon. What they're doing is technically illegal. But the government turns a blind eye.

Mr. DONDOG TUMURCHUDUR (Miner): (Foreign language spoken)

LIM: If I don't find anything, I'll have nothing to eat, says Dondog Tumurchudur. I can't make enough money from herding. He's one of thousands of miners in the Ninja settlement of Uyanga, about 300 miles from the capital, Ulan Bator.

NERGUI (Miner): (Foreign language spoken)

LIM: I spend sleepless nights thinking about where to dig to find gold, says his companion Nergui. And if we don't find any, we're depressed, depressed enough to die.

Mr. ROBIN GRAYSON (Founder, Eco-Minex International): With one-sixth of the rural population of the household somehow involved in this informal business, that an enormous cash-kick to the rural economy. Otherwise, the rural areas have got almost nothing.

LIM: Robin Grayson, founder of Eco-Minex International, has been studying the ninja phenomenon. He says ninjas should be legalized and allocated land for small-scale mining.

Mr. GRAYSON: The main objection is that the official gold rush has been so fast and furious that nearly all the land has been taken up with exploration licenses, or is already state-protected areas because of wildlife considerations.

(Soundbite of machinery)

LIM: In the past, this mining area, Uyanga, was pretty much up for grabs, swarming with Ninja Miners seeking their fortune. But in the past year or so, dozens of larger mining companies have divided up the best land, hemming the ninjas into ever smaller spaces. Miner Nergui says the companies act with impunity against the ninjas.

NERGUI: (Through Translator) Security guards watch their land at night. If they catch us on their land, they break our pans and beat us with batons. I've been beaten up twice. We don't have any laws here. There's a lot of robbery and violence, but the police say it's our fault for being here.

(Soundbite of crowd chatter, pots banging)

LIM: And the environmental damage of the gold rush is clear. Deep holes honeycomb the ground, creating a dusty, lunar landscape. Once-green grasslands have been ripped up. Streams are drying out.

In other places where hard-rock mining is practiced, the ninjas are literally poisoning the landscape, according to the World Bank's representative in Mongolia, Arshad Sayed.

Mr. ARSHAD SAYED (World Bank Representative in Mongolia): But the negative side, of course, is people have been using chemicals like cyanide, mercury, others, which are very detrimental to the environment and to the ecosystem, and over a period of time can seriously damage, for example, water sources.

LIM: On the streets of the Mongolian capital, Ulan Bator, one group of former herders is calling for action. Addressing onlookers with loudspeakers, they're camped outside the parliament building, holding a hunger strike.

Their tally is sobering: They say 850 rivers have dried up through mining activity. More than 1,000 lakes disappeared. They want more regulation for mining licenses.

Dechindorj Ganbold said he's come here prepared to die.

Mr. DECHINDORJ GANBOLD (Demonstrator): (Through Translator) We've lost our grassland. We've lost everything. How unfortunate we are that we had gold in our land. Without gold, our rivers would flow and life would be normal. Now there's no way back.

(Soundbite of digging)

LIM: Back in Uyanga, the impact of mining is clear. A new breed of nomad is emerging, going wherever the gold is rumored to be, to mine or provide services for the ninjas. Most have abandoned herding or left their flocks behind for others to mind. It's a sign of Mongolia's changing economy. Once based on herding, it's now heavily dependent on mining.

The ninjas can't afford to miss out on this mineral wealth. But at the same time, they fear they're trading their land, their way of life, even their culture for these tiny specks of gold.

Louisa Lim, NPR News, Uyanga, Mongolia.

MONTAGNE: And Louisa tells more of this story, along with pictures of the gold and the devastation at the new npr.org. Transcript provided by NPR, Copyright National Public Radio.

Source: NPR