Starting from the inception, the Company has been making significant contributions to development of local community. From 2004 to YTD Sep 2017, Boroo paid a total of $253 million to the state and local budgets. $115 million has been paid in corporate income taxes to the Mongolian Government. This is $104 million higher than the amount estimated in the feasibility study. The Boroo Stability Agreement stabilized taxes based on the laws in effect at the time the agreement was signed. No special treatment was given to Boroo with the Stability Agreement.The Stability Agreement was amended in August 2007. Since January 2007, Boroo has paid CIT (25%) and royalties (5%) at the statutory rates.
As of 2017, Boroo Gold had implemented over 160 projects worth a total of US $5 million in local communities. At the initiative of BGC, the Soum Development Fund was established both in Bayangol and Mandal soums of Selenge aimag, in the territory of which the Company has its operations.
- When the Fund was established in 2004, Boroo contributed US$100,000 for each soum and then in 2005 increased the donation to, US $250,000 to each soum.
- In 2006, US$600,000 was spent in total for community development projects in both soums and as well as in Sukhbaatar city, Selenge aimag. These funds included US $200,000 that was spent to conduct major overhaul for the sports facility and establish Children’s Palace in Sukhbaatar.
- In addition, the Company, in cooperation with World Vision Mongolia, has implemented a five-year program worth US $700,000 for mothers and children with nutritional deficiencies throughout the Selenge aimag.
- The Company has invested a total of US $750,000 every year in Bayangol and Mandal soums and Selenge aimag development in 2007, 2008, 2009, 2010 and 2011.
Funding from the Soum Development Fund is resolved by its Council consisting of soum governors, citizens’ representatives, and relevant officers from BGC. The funds are spent to implement the Governor’s Action Plan and resolve urgent problems faced by the local communities: reducing poverty, creating jobs, promoting small and medium businesses, improving infrastructure, and supporting the sustainable development of local communities.
Larger and significant projects implemented in Bayangol and Mandal soums in 2004-2011 with funds from the Soum Development Fund include the following:
- In Bayangol soum: Total investment is $2,350,000 for construction of governor’s office building, major overhaul of school dormitory, constructing and equipping a rehabilitation center for elderly and disabled, construction of a residential building, Kharaa bag governor’s office building, and soft loan project to support young families and small businesses and construction of a Children’s Development Center in the soum centre.
- In Mandal soum: Total investment is $2,590,000 for expansion of Bileg secondary school, repair of sanitary engineering system, construction of tuberculosis unit for the soum hospital, construction of Service Centers in three bags, construction of a library building, police station building in two villages, major overhaul of 500-seat Cultural Palace in Zuunkharaa, sports complex with indoor swimming pool, founding a fully equipped Road Construction Unit, and soft loan project to support small and medium businesses in Kherkh and Tunkhel villages. The Mandal soum administration put special emphasis on developing Tunkhel village, and with funding of the Soum Development Fund the village culture, sport and administration complex has been built as well as school canteen extension and kindergarten repair. For reducing fatalities, a pedestrian underpass beneath seven railroad tracks in the soum center has been constructed.
- In Selenge aimag: Total investment is $1,750,000 for three-month training course in agricultural and mining heavy equipment operations was organized, and milk cooling equipment was implemented at regional centers. And “Supporting tailoring shops”, “Supporting national musical instrument making shops” and “Protected vegetable” projects were implemented. In addition, a number of projects on lighting central streets, building roads, providing hospitals, schools, police stations and other public service organizations with necessary equipment , and supporting small and medium-size businesses have been implemented in the local soums.
BGC not only funds projects in the local communities around its mining operations, but also funds projects of a nationwide scale. For example:
- With funds of US $26,000 from BGC, a Computer and Health Training Center was established in the Clinical Hospitalin Darkhan-Uul aimag.
- With Boroo’s contribution of MNT 45 million, the roof of the building of State Elderly House in Batsumber, Tov aimag was maintained, and with a MNT 12 million donation the Bornuur soum school dormitory roof was repaired.
- The Company is sponsoring the “Olon Gol, Eg-Uur Watershed Area Community Based Protection Enforcement System” project of Mongol Taimen Conservation Fund with a US $400,000 contribution.
- Another project, the first involving a mining company in recovering biological species in Mongolia, has successfully completed the re-introduction of marmots in Selenge aimag.
- In addition, BGC supports and sponsors sports events in Mongolia and Mongolian sports teams as well as sportsmen and sportswomen to participate in international athletic and mind sports events.