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Sun, Jun 27, 2004 - Page 12 News List

Ninjas battle for gold in the `Wild West' of Mongolia

The vast floodplains of Mongolia are being turned into slag heaps, with illegal miners sifting through the debris left by gold mines

REUTERS , OGOOMOR BAGA, MONGOLIA

In the river, teenagers and sun-wizened old folk panned the stream, every few minutes coming up to show off a piece of gold the size of a sliver of tooth but sometimes worth a few dollars. Men on tiny horses sat and watched.

"This is not a good business for us," one said. "We are not making money. We are doing this just to survive."

More than 30 percent of the primeval country, nearly half the size of Western Europe, has been licensed for exploration and mining which have taken off, with copper, lead and other minerals sucked up by booming neighbor China.

Gold mining alone, legal and illegal, has become a key driver of the economy, spinning off smaller businesses such as shops, kiosks and bars in gold rush towns and in Ulan Bator.

"In five to 10 years, mining will easily double gross domestic product," said the Mineral Authority's Jargalsaikhan. "Mining will change the whole country. Hopefully for the better."

Robin Grayson, general director of Eco-Minex International, a British-Mongolian gold exploration joint venture, estimates there are about 100,000 ninjas, including families and support services such as shops and bars.

"Townships are growing up along the sides of the roads just like the Wild West." He reckons 13 tonnes of gold is produced legally each year, seven tonnes illegally.

"In terms of GDP per person, this [Ogoomor Baga] is the richest town in the country."

Jargalsaikhan said the government plan was to legalize and organize the ninjas, to stop the drain on the gold mining economy. Mongolia had asked for World Bank assistance, he said.

"Arresting them doesn't work," he said. "We can't afford to keep so many people on site."

Ogoomor Baga tried detaining the ninjas for a while.

They were put to work on the garden of the police station, which is now the only place in town with a lawn and a nice little pavilion where visitors may sit out and enjoy the view.

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