Invest in Mining Sector in Bhutan

Bhutan's mining and mineral processing sector is a vital part of the nation's economy, offering substantial growth and investment opportunities. The sector is rich in minerals such as limestone, gypsum, dolomite, and quartzite, and is focused on sustainable extraction and value addition to maximize economic benefits.

The mining sector contributes approximately 2.2% to Bhutan’s GDP. In 2023, it experienced a remarkable growth rate of 35.1%. Bhutan is home to vast dolomite deposits, estimated at 16,000 million metric tons, and mineral exports have generated significant revenue, reaching Nu. 11.8 billion in recent years.

To foster growth, the government has introduced strategic initiatives. The Mines and Minerals Act of 1995 is being reviewed to attract more investment and diversify the sector. The Mines and Minerals Management Regulations 2022 have opened the sector to private entities, promoting competition and efficiency. The government is also conducting geological surveys to map 40% of Bhutan’s territory, uncovering the full potential of its mineral resources. Additionally, there is a focus on adding value to minerals locally, including producing precipitated calcium carbonate and purified silica.

Bhutan’s abundant mineral resources, combined with its proximity to rapidly developing markets like India and Bangladesh, present attractive investment opportunities. The government's efforts in policy reforms, infrastructure development, and value addition create a supportive environment for both domestic and international investors.

Despite its economic potential, the mining sector also faces environmental and social challenges. The government is committed to aligning mining activities with environmental policies, promoting sustainable development. Initiatives like the Gelephu Mindfulness City project seek to balance economic growth with environmental and cultural preservation.

Bhutan's mining sector is poised for significant growth, driven by strategic reforms, enhanced infrastructure, and a commitment to sustainability. Investors have a unique opportunity to contribute to the nation's economic prosperity while aligning with its values of sustainability and cultural preservation.

Recently, Bhutan has also embraced green technology, using excess hydropower during the summer to mine green bitcoins. This innovation demonstrates Bhutan’s commitment to sustainable economic practices.

In summary, Bhutan's mining sector offers a promising investment landscape, with rich natural resources, forward-thinking policies, and a strong commitment to sustainability. Investors are encouraged to participate in a sector poised for growth, innovation, and positive societal impact.
Investment info

Investment Information

One of the key opportunities in Bhutan’s mining sector lies in the expansion of mineral processing facilities aimed at adding value locally. By processing minerals within Bhutan, investors can contribute to the development of value-added products, which can significantly increase the sector’s economic impact. Products like precipitated calcium carbonate (PCC), purified silica, and refractory bricks present substantial growth prospects for businesses focused on mineral processing.

Another significant opportunity is investment in advanced mining technologies. These technologies are crucial for improving operational efficiency, reducing costs, and minimizing the environmental footprint of mining activities. By incorporating cutting-edge technology, mining operations can boost productivity while adhering to Bhutan’s sustainable development goals.

Infrastructure development is also a critical area for investment. The government is focusing on upgrading and expanding infrastructure to support mining operations, including better transportation networks and enhanced power systems. Investments in infrastructure will not only improve the mining sector’s efficiency but also create opportunities for broader economic growth.

Finally, the potential for value addition in Bhutan's mineral sector is substantial. The processing of minerals into high-demand products such as PCC, purified silica, and refractory bricks offers multiple avenues for investors to explore. These products have significant demand both domestically and internationally, making them lucrative options for investment in Bhutan’s mining sector.
Equity Ownership
NA
Minimum Investment
NA
Time Taken
1-6 Months
Revenue
NA
Investment Support

How Can Basnet Attorneys and Law Help?

Setting up a company or investing in Bhutan requires expert legal guidance to navigate business registration, compliance, and investment regulations. Basnet Attorneys & Law specializes in corporate and investment law, providing tailored legal solutions to ensure a smooth and hassle-free process for international investors.

Our services include:

Business Incorporation & Registration – Assistance with company formation, and licensing ensuring compliance with Bhutanese corporate laws.

Investment Advisory – Guidance on foreign direct investment (FDI) regulations, ownership structures, and legal incentives.

Regulatory Compliance – Ensuring adherence to Bhutan’s taxation, labor laws, and IT sector regulations.

Contract Drafting & Negotiation – Preparing legal documents, partnership agreements, and investor contracts.

Licensing & Permits – Securing the necessary approvals for IT operations in Bhutan.

Intellectual Property Protection – Safeguarding trademarks, patents, and copyrights for tech businesses.
 

With extensive experience in corporate and investment law, we offer precise legal solutions tailored to the needs of international investors in Bhutan. Our firm provides strategic legal counsel, risk assessment, and compliance oversight to ensure that your business venture operates with legal certainty and regulatory confidence.


Contact Basnet Attorneys & Law today for a consultation on investing in Bhutan with a legally sound foundation.