ECC Platform Library


Oyu Tolgoi Mining Conflict in Mongolia

Type of conflict main
Intensity 1
Eastern Asia
Time 2013 ‐ 2015
Countries Mongolia
Resources Agricultural / Pastoral Land, Water
Conflict Summary The Gobi region has limited surface water resources and low annual rainfall. Oyu Tolgoi is one of the world’s largest undeveloped copper-gold deposits...
Oyu Tolgoi Mining Conflict in Mongolia
The Gobi region has limited surface water resources and low annual rainfall. Oyu Tolgoi is one of the world’s largest undeveloped copper-gold deposits located in the South Gobi region, Mongolia, and the project is managed by Oyu Tolgoi LLC, which is majority-owned by Rio Tinto, a multinational mining corporation. In 2013, a group of local herders filed a complaint against Oyu Tolgoi LLC to the Compliance Advisor Ombudsman (CAO), which was concerned about a river diversion that could lead to several water systems drying up, deteriorated pastureland yields, and a threat to traditional livelihoods. The CAO found it eligible for further assessment of the complaint in 2013. After a series of CAO facilitated meetings between the herders and the company from 2013 to 2015 they were able to agree upon and implement specific actions to assess issues related to the complaint. Furthermore, the CAO mediation process resulted in a tripartite committee consisting of representatives of local government, elected herders (the complainants) and the company in 2015.
Conceptual Model

Intermediary Mechanisms

The mine is located in the area surrounded by nomadic herders whose livelihoods are heavily dependent on pastureland and water. Local communities are concerned that the mine could lead to several water systems drying up, deteriorate pastureland, and threaten traditional livelihoods.

Fragility and Conflict Risks

When the construction of the mine intensified, the issue of water access and security caused disputes between the mine, local communities and NGOs. Local herders were mobilized to raise their concern over the water and other impacts of the project.

Climate ChangeEnvironmental ChangeIntermediary MechanismsFragility and Conflict RisksSocial and Economic DriversEconomic developments place additional strains on water resources.Economic activity causes pollution.Water scarcity undermines water-dependent livelihoods.Land scarcity undermines the livelihoods of agricultural producers.Pollution reduces available/usable land.Livelihood insecurity fuels grievances between groups.Livelihood insecurity leads to growing discontent with the state.A broad concept to cover economic growth in general but also specific economic changes or changes of incentives.Economic DevelopmentAn increase in the scarcity of clean water and/or an increased variability in water supply.Increased Water ScarcityPollution and degradation of ecosystems, such as coral reefs.Pollution / Environmental DegradationA threat or destruction of livelihoods dependent on the availability of environmental resources / goods.Livelihood InsecurityReduced availability of/ access to land.Increased Land ScarcityNon-violent or violent tensions and conflicts between different societal groups.Grievances between Societal GroupsChallenge to the state's legitimacy, ranging from peaceful protest to violent attempts at overthrowing the government.Anti-State Grievances
Context Factors
  • Water-stressed Area
Conflict History

Oyu Tolgoi is one of the world’s largest undeveloped copper-gold deposits, located 80 kilometres north of the Chinese border in Khanbogd soum, South Gobi province, Mongolia. After several years of negotiation, Ivanhoe Mines, a Canadian mineral exploration and development company, and Rio Tinto, a British-Australian multinational mining and metals corporation, signed a 30-year investment agreement with the Mongolian Government to develop the Oyu Tolgoi project in 2009.

Context of the project
The project is funded by a group of international lenders, including International Financial Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), the private sector lending and insurance arms of the World Bank Group. The mine is located in the area surrounded by nomadic herders whose livelihoods are heavily dependent on pastureland and water. The Gobi region has limited surface water resources, low annual rainfall and is also prone to drought, wind and dust storms.

Social and environmental impacts of the project
Due to its large-scale land requirements and construction phase developments, the Oyu Tolgoi project was required to manage a range of social and environmental impacts: resettlement (10 households) and economic displacement of herder households (approximately 90), division of pastures, river diversion, impeded access to wells, and overall reduction of pastureland in the region (IFC, 2014). When the construction of the mine intensified, the issue of water access and security became the centre of the dispute between the mine, local communities and NGOs. Local herders were mobilized to raise their concern over the water and other impacts of the project.

The response of NGOs: Gobi Soil and Oyu Tolgoi Watch
In February 2013, Gobi Soil, a Khanbogd-based NGO representing a group of local herders, assisted by Oyu Tolgoi Watch NGO, filed a complaint against Oyu Tolgoi LLC to the Compliance Advisor Ombudsman (CAO), a mechanism for communities to voice concerns if they believe they are adversely affected by IFC and MIGA supported projects. Their complaint was about the Undai River, a seasonal river that runs through the lease, that was diverted to avoid its flooding into the mine’s open-pit. They were concerned that the Undai river diversion would cause several water systems to dry up, deteriorated pastureland yields, and negative impacts on traditional livelihoods (CAO, 2013). 

Resolution Efforts

Oyu Tolgoi LLC´s approach
Oyu Tolgoi LLC prepared an integrated Environmental and Social Impact assessment (ESIA) that drew together all previous studies plus any additional work needed to fill gaps with the IFC Performance Standards and disclosed it in both English and Mongolian in August 2012. The company invited feedback on the ESIA from all stakeholders, including members of the public (BIC, 2012).

The CAO mediation process
The CAO found the Khanbogd-based NGO’s complaint in 2013 eligible for further assessment, and it conducted an assessment during which the parties agreed to work within CAO's Dispute Resolution function in an attempt to resolve the concerns raised in the complaint using collaborative methods (CAO, 2013). The complainants stated that local community consent and approval was required for the Undai River diversion, whereas OT contended they had all the legal permissions and rights to proceed with construction to divert the river inside the mine license area. The complainants’ formal position was that all construction work related to the diversion of the river should be stopped until community consent could be obtained, while OT insisted the work must continue in order to protect the river for the community and prevent water from ending up in the mine (CAO, 2013).

A series of meetings between the complainants and the responsible company personnel were facilitated by CAO appointed mediators in Khanbogd since 2013. The whole negotiation process required significant commitment, time and resources from both parties. The CAO mediators played an important role to maintain the collaborative process effectively. As a result, the parties were able to agree upon specific actions such as re-construction of a spring that was dried up due to the river diversion based on community consultation, water monitoring methods, and providing water in tanks to herders affected by the river diversion (CAO, 2015).

The emergence of a local mechanism
The two-partite CAO mediation process eventually attracted the attention of local authorities. A Tripartite Committee that involves representatives of local government, elected herders (the complainants) and the company was established in 2015. The Memorandum of Understanding on the establishment of the committee and the bylaw of it were collaboratively written by the parties to ensure that the initial complaints are adequately addressed and the parties maintain a broad dialogue in the future (CAO, 2015).

Intensities & Influences
conflict intensity scale
International / Geopolitical Intensity
Human Suffering

Environmental Influences
Societal Influences

Violent Conflict No
Salience within nation Municipal
Mass Displacement None
Cross Border Mass Displacement No
Agricultural / Pastoral Land, Water
Resolution Success
Reduction in geographical scope There has been no reduction in geographical scope.
Increased capacity to address grievance in the future The capacity to address grievances in the future has increased.
Grievance Resolution Grievances have been completely taken into account.
Causal Attribution of Decrease in Conflict Intensity Conflict resolution strategies have been clearly responsible for the decrease in conflict intensity.
General opencollapse
Country Data in Comparison
ConflictNoData Created with Sketch.
Fault Lines Defining Conflict Parties
Purely Environmental | Cultural   ♦   Occupational   ♦   Economic   ♦   Urban / Rural   ♦   National / International conflict   ♦   Sub-national political

Participation Conflict Party     Conflict Resolution Facilitator
Oyu Tolgoi LLC
Functional GroupPublic
Geographical ScaleInternal National
Local herders
Functional GroupPublic
Geographical ScaleInternal Grassroots
Gobi Soil
Functional GroupPublic
Geographical ScaleInternal Grassroots
Compliance Advisor Ombudsman (CAO)
Functional GroupPublic
Geographical ScaleExternal
Local authorities
Functional GroupPublic
Geographical ScaleInternal Grassroots
Entry Points for Resilience and Peace Building
3 Mediation & arbitration A group of local herders, assisted by the NGO Oyu Tolgoi Watch, filed a complaint against Oyu Tolgoi LLC to the Compliance Advisor Ombudsman (CAO). The CAO mediation process resulted in a tripartite committee consisting of representatives of local government, elected herders, and the company in 2015.
Further Details opencollapse
Conflict Characterization
Character of the contested good Common-pool resource: No one can be excluded from use but the good is depleted.
Structure of decision-making power / interdependence Asymmetric: The power to affect the environmental resource is unequal.
Broad conflict characterization Resource capture is not present.
Ecological marginalization is not present.
Data of involved Countries
Resources and Materials opencollapse


Adaptation & Resilience

All countries will need to adapt to some of the environmental, social and economic impacts of climate change that are already unavoidable. Food security, livelihoods, water resource availability and public health are some affected areas. People living in poverty are more vulnerable, having a lower capacity to adapt. Thus, it is essential to promote resilience building. The adaptation and resilience aspects need to be mainstreamed into planning by policy makers and the private sector as well as integrated into development strategies.

Biodiversity & Livelihoods

Nature protection is most sustainable if it essentially contributes to the long-term stability of human needs. Today many regions around the world are confronted with increasing destruction of the natural foundations of life. The consequences of wide-ranging resource destruction are no longer regionally limited, but rather represent a global threat. Those affected are mainly rural populations, who find the sources of their income and the foundations of their way of life swept away. The depletion and destruction of natural resources goes hand in hand with decreasing agricultural yields and increasing poverty, which in turn forces the affected populations to deplete the remaining resources.

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Capacity Building

On the one hand, conflicts are caused by structural factors, such as economic and social inequality or environmental destruction. On the other hand, conflicts are fuelled by a lack of democratic structures, deficient mechanisms of non-violent conflict settlement, inadequate rule of law, the destruction of social and cultural identity and the disregard of human rights. Against this backdrop, development policies have been dedicated to a broad concept of security, which comprises political, economic, ecological and social stability. As a consequence, development cooperation agencies and actors have developed a broad spectrum of approaches for conflict prevention and transformation as well as for sustainable use of natural resources.

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Civil Society

Civil society is the first victim of environmental pollution, under-development and conflicts. Economically disadvantaged and politically marginalized population groups are particularly affected by violent conflicts as well as increasing resource degradation. Simultaneously, civil society is a fundamental pillar for implementing sustainable development. It contributes in many ways to strengthening conflict prevention and plays a significant role in the peaceful and democratic development of states. It must be supported to strengthen civil rights, adherence to human rights in general and democratic participation.

Climate Change

Climate change resulting from the emission of greenhouse gases represents one of the vital challenges for international environmental policy. Flooding, droughts, shifting of climate zones and increasingly frequent and intense extreme weather events will have serious economic and social consequences for entire regions. The climate problem is also directly linked to the question of future energy generation.

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Climate Diplomacy

To address the challenges posed by climate change, a new profile of climate diplomacy is evolving. This utilises a full range of policies, including development cooperation, conflict prevention efforts, and humanitarian assistance, in addition to more traditional measures of climate change adaptation and mitigation. Moving from a risk analysis of climate-related threats to well-timed preventive action requires a greater commitment to integrating climate change concerns into development, foreign, and security policies. Examples include strengthening diplomatic networks, building new alliances with partners, and raising awareness – not only of potentially negative climate change impacts, but also of opportunities to embark on a sustainable transformation of our societies.

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Climate action entails an array of economic, social, political and environmental co-benefits. It provides an opportunity for economic growth and new jobs. Many investments can take into account climate considerations without becoming more costly. Further important co-benefits include: improved energy security, less local air and water pollution, health benefits as well as ecosystem and biodiversity protection.

Conflict Transformation

In order to overcome the structural causes of violent conflicts and thus bring about an improvement in the framework conditions for peaceful and fair development, it is essential to have long term and broadly planned peace development and peace advancement. Various governmental and non-governmental, national and international actors and groups are involved in these processes.

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Climate change and development are inextricably linked. Climate change endangers the development agenda and has the potential to reverse development goals. Furthermore, successful mitigation of climate change heavily depends on development choices around the world. Therefore, development strategies need to be climate-compatible to provide long-term success, and there are viable policy options that support this compatibility. Many mitigation and adaptation activities can present development opportunities to developing countries and avoid the lock-in to environmentally damaging technologies.

Early Warning & Risk Analysis

The reasons for the development and escalation of conflicts and the incidence of risks are multifaceted and complex. Simultaneously, the assessment of the specific causes in the form of risk and conflict analyses can contribute to a better understanding of these processes and make it possible to provide warning of negative developments, or ideally help prevent them. In the context of natural resource use, risks and conflicts have gained increasing attention in the past years. The debate on possible future water wars is merely one example.

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The well-being of individuals, communities and nations depends on the availability of energy resources. The gap between energy supply and demand appears to be growing, making the world vulnerable to serious economic shocks. At the same time, the burning of fossil fuels causing climate change is one of the vital challenges of international environmental policy. So far, only rudimentary approaches exist for shaping climate and energy security in a sustainable way. The components of a strategy that can contribute to reducing vulnerabilities related to climate change and energy policy include a greater role for renewable energies, the improvement of energy efficiency and a stronger decentralisation of energy supply.

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Environment & Migration

The economic, social and environmental consequences of climate change aggravate the breakdown of eco-system-dependent livelihoods and are likely to become dominant drivers of long-term migration. Natural disasters already cause massive shorter-term displacement and the number of temporarily displaced people is likely to further increase with climate change. For vulnerable populations in vulnerable regions, such as the Sahel zone or the Ganges delta, migration often becomes the sole survival strategy. In order to address climate-related displacement and migration successfully, knowledge of effective adaptation and an improved understanding of how environmental change affects human mobility is essential. 

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Climate finance, from all sources, plays a key role in supporting and enabling adaptation and mitigation action as well as climate and energy innovation. The Paris Agreement ensured that the Green Climate Fund and the Global Environment Facility are at the core of climate finance architecture as entities entrusted with the operation of the Financial Mechanism of the UNFCCC. Increasing climate finance from all relevant public and private sources is crucial. Furthermore, much needs to be done to redirect finance flows to sustainable paths, e.g. reducing fossil fuel subsidies, introducing maritime and air transportation taxes. The conditions for green investment in developing countries should also be improved.


Forests are disappearing at an alarming rate. Competition for forest resources triggers, exacerbates, or finances numerous crises and conflicts in tropical developing countries. Illegal logging and timber trade foster instability and sometimes violent conflict by strengthening illegal and armed groups, increasing corruption and exacerbating use and claim conflicts among local communities, the state and the business sector. Forests are a vital resource to poor people but they can also become areas of conflict. Sustainable management of forest resources is therefore key to preventing violent conflict over and within forests.

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Gender plays an important role as a category of conflict for many reasons. The interlinkages between gender, environment and conflicts are complex and much research is still needed. Existing insights suggest that conflicts may worsen gender inequalities that existed before the outbreak of violence. The unequal distribution of land property rights in many parts of the world serves as an example. Moreover, women (and children) are among those most affected by both violent conflict and natural disasters. At the same time, women carry much of the burden of trying to implement rehabilitation measures after crisis events.

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Land & Food

Increasing water scarcity, desertification and crop failures due to extreme weather events are becoming more and more of a threat to global food production. While the world’s population continues to grow rapidly, food production is unable to keep pace. Due to the global food crisis in 2008, the number of hungry people reached the symbolic one billion threshold for the first time – corresponding to about 16 percent of world population. Food insecurity may be a consequence or cause of conflicts. Violent conflicts often lead to the destruction of agricultural infrastructure and means of production, as well as to the displacement of local communities.

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Minerals & Mining

In the past, the discovery and tapping of valuable or strategic resources like valuable minerals, oil and natural gas, particularly in developing and emerging countries, has often led to large scale environmental contamination and negative development. The "resource curse" of some countries shows that the wealth from resource yields is frequently unfairly distributed; instead of serving development it advanced the formation of corrupt elites and in some cases even led to conflicts and civil wars. Measures in various sectors and at all levels are important in order to use the potential of these natural resources in a manner that is sustainable and prevents conflicts.

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Private Sector

The spread of violent conflict not only affects people but also companies located in such regions. Destruction of investments and infrastructure, collapse of markets and trade partnerships, flight and expulsion of employees are phenomena of conflicts and environment-induced crises that directly affect companies in unstable regions. Almost all branches of the economy thus have a clear interest in a stable and peaceful environment for their activities. Conversely, the business sector plays an important role in the interaction of economic growth, social development and a healthy environment, all of which can advance peace and sustainable development. 

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Environmental issues have a significant security dimension. Access to, and overuse of, natural resources often play a key role in civil wars or other forms of internal domestic conflict. This is compounded by climate change and environmental degradation. Climate change is now widely recognised as a non-traditional, risk-multiplying threat that will have increasing security impacts. Key risks with possible implications for human and national security include water scarcity, food crises, natural disasters, and displacement. More preventive diplomacy and advocacy is needed to address the strategic implications of climate and environmental change.

Sustainable Transformation

Sustainable Transformation allows societies to profit from a growing, environmentally sustainable and socially inclusive economy – especially in emerging and developing countries. This requires a higher up-front investment, but the benefits of a sustainable transformation in the medium and long term are significant. For instance, energy cost savings and reducing the impact of price volatility offer major incentives for deploying renewable energies and promoting energy efficiency. Such benefits exist in all key sectors of the economy.

Technology & Innovation

Innovations and technologies are already readily available and affordable but their global diffusion and uptake remains a challenge. Innovation and technology are crucial to achieving ambitious climate change mitigation and adaptation targets. However, research and development often do not receive appropriate public support. Developing countries can leapfrog high-carbon industrialisation phases by adopting, deploying and improving existing innovations and technologies. For this, it is essential to minimise financial, administrative and political barriers.


The availability of freshwater resources in sufficient quantity and quality is essential for the preservation of human health and sound ecosystems. The use of water resources is also vital, however, for economic development: whether for agriculture, industrial production or for electricity generation. The world's freshwater resources are distributed very unevenly in terms of geography and seasons. In addition, water shortage is becoming more prevalent in several regions due to population growth, economic development, urbanisation and increasing environmental pollution. Thus, water resources can hold potential for conflicts between parties who have different interests and needs.

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The environment in Asia is already under tremendous pressure as a result of the unsustainable use of land, forests, water and even air in many regions. Climate change will only exacerbate these challenges. Rising sea levels will likely endanger densely populated areas, changes in the monsoon patterns can strongly impact agriculture, melting glaciers will increase long-term water scarcity, and extreme weather events such as heavy rainfall and cyclones can pose further hazards.

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Central America & Caribbean

Natural disasters and water scarcity are key challenges for most of Central America and the Caribbean. These challenges will become even more pronounced as the climate changes. Weak resource and disaster risk management and land disputes pose additional security challenges for large parts of the region. Several countries of Central America and the Caribbean have limited adaptive capacities as they face political instability caused by high social inequality, crime, corruption, and intra-state conflicts.

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As one of the most developed and most densely populated regions in the world, Europe makes heavy use of its resources, resulting in difficult trade-offs and negative consequences for the environment and ecosystems. Land is used for settlements, agriculture and dense infrastructure, creating problems of soil degradation. Water resources are stressed due to unsustainable agricultural practices. Despite nature protection policies, Europe continues to lose biodiversity at an alarming pace. Some of these trends are exacerbated by climate change, which is expected, for instance, to lead to shifts in water availability.

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Global Issues

Resource scarcities, environmental pollution and climate change are not limited by national borders, but often have a transboundary or even global impact. These issues interact with political stability, governance structures and economic performance, and can trigger or worsen disputes and violent conflicts. Exacerbating some of these trends, climate change is likely to lead to the degradation of freshwater resources, declines in food production, increases in storm and flood disasters and environmentally induced migration. All these developments pose potential for conflict.

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Middle East & North Africa

The geopolitical position of the Middle East and North Africa (MENA), its fossil fuel resources, high population growth and the political changes spurred by the Arab Spring all make the region one of the most dynamic in the world. Nevertheless, it is also one of the most arid and environmentally stressed. Dwindling water resources, limited arable and grazing land, high pollution from household and industrial waste, remnants of conflicts and increasing desertification are key environmental challenges.

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North America

Climate change has various impacts on the three North American countries of Canada, Mexico and the US. Canada and the US have well-developed adaptive capacities and foster the strengthening of capacities in other regions as well. With high per capita emissions, these two countries also bear a greater responsibility for a changing climate. Mexico has a sound national strategy for climate change adaptation, yet fewer capacities than Canada and the US. The poorer and rural populations of Mexico are especially vulnerable to climate change, due to an increased sensitivity and a lower adaptive capacity.

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Oceania & Pacific

In Oceania, population growth and economic development trends put a strain on oceanic and island ecosystems. Freshwater scarcity, overexploitation of fisheries, loss of land biodiversity, forests and trees, invasive species, soil degradation, increasing levels of settlement, poor management of solid and hazardous waste and disproportionate use of coastal areas are some of the problems. Climate change exacerbates most of these trends, while also raising questions about the future sovereignty of some island states.

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South America

South America has diverse and unique ecosystems and is very rich in biodiversity. Weak natural resource management, land disputes and extreme weather events bring about significant challenges for the region. While South America accounts for relatively few CO2 emissions, the changing climate will alter its ecosystems and greater climate variability will lead to more hurricanes, landslides, and droughts.

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Sub-Saharan Africa

In many African states, environmental security issues rank high on the political agenda. Throughout the continent, countries suffer from water scarcity, food insecurity and energy poverty. These chronic and worsening resource scarcities have severe livelihood implications and are exacerbated by political conflicts over access to and control over these resources. Climate change may seriously threaten political and economic stability in Africa. It may also put a severe strain on the capacities of states and societies to co-ordinate activities, to communicate and to organize.

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