Multiproduct mine output and the case of mining waste utilization

This article addresses the concepts of economies of scope and multiproduct production, subadditivity and transray convexity as it applies to the mining industry. The article goes on to expand these concepts to include the case of mining waste utilization. It discusses how the modification of mining wastes into a marketable product can develop a relationship across the cost functions of the modified mining waste and ore production and how this interrelationship affects the profit maximizing condition. It discusses four possible outcomes from mining waste modification and its development into marketable products on the profitability and production of ore by the firm. Finally, it discusses mining waste utilization effects on rehabilitation costs and the potential for a decrease in the adverse community effects due to mine closure.     

A heuristic approach to stochastic cutoff grade optimization for open pit mining complexes with multiple processing streams

Cutoff grade specifies the available supply of metallic ore from an open pit mine to the multiple processing streams of an open pit mining complex. An optimal cutoff grade strategy maximizes the net present value (NPV) of an open pit mining operation subject to the mining, processing, and marketing/refining capacity constraints. Even though, the quantities of material flowing from the mine to the market are influenced by the expected variation in the available metal content or inherent uncertainty in the supply of ore, the majority of cutoff grade optimization models not only disregard this aspect and may lead to unrealistic cash flows, but also they are limited in application to an open pit mining operation with single processing facility. The model proposed herein determines the optimal cutoff grade policy based on a stochastic framework that accounts for uncertainty in supply of ore to the multiple ore processing streams. An application on a large-scale open pit mining operation develops a unique cutoff grade policy along with a portfolio of mining, processing, and marketing/refining rates. Owing to the geological uncertainty, the approach addresses risk by showing a difference of 14% between the minimum and maximum production rates, cash flows and NPV.     

Perspectives on community health issues and the mining boom-bust cycle

The health of mining communities is becoming a priority for the mining industry, governments, and researchers. This paper describes an exploratory qualitative study into community health issues and mining activities (associated with the mining boom-bust cycle) from the perspective of health and social service providers in the northern Canadian coal mining community of Tumbler Ridge, British Columbia. Health and social service providers report on increases in pregnancies, sexually transmitted infections, and mine related injuries during booming mine activities. During bust times, mental health issues such as depression and anxiety were reported. Overarching community health issues prominent during both boom and bust periods include burdens to health and social services, family stress, violence towards women, and addiction issues. This paper concludes by providing recommendations as to how the industry can enhance community health made by this important stakeholder group.     

The legal environmental risk analysis (LERA) sample of mining and the environment in Turkish legislation

As advancing technology and increasing demands for natural resources continue to mount pressure on the environment, environmental conservation and sustainable management have become ever more important. Individual countries have been increasingly taking action to reduce environmental destruction caused by human activities in an attempt to find a balance in between the necessary exploitation of resources and environmental conservation. In Turkey, the struggle between environmental conservation and mining activities is set within the legal context, with the requisite legal regulations (which describe various procedures) in the midst of being updated or renewed. The legal environmental risk analysis (LERA), beginning by discussing the main legal regulations of environmental conservation in relation to mining activities, defines basic environmental components which form the basis of environmental conservation in relation to mining, and analyzes the impact of mining on each component. The analysis (LERA) finishes with an evaluation of the components as they currently stand and makes some suggestions for the improvement of insufficient regulations.     

Incorporating environmental issues into optimum cut-off grades modeling at porphyry copper deposits

Cut-off grade is defined as the grade which discriminates between ore and waste within a given orebody. Determination of a complete optimum cut-off grade policy is a very important function during mine life. Using the modified optimum cut-off grade model presented in this paper not only the net present value of a porphyry copper mining project is maximized, but also the adverse environmental impacts of the project are minimized simultaneously. This methodology is more effective in long-range planning. For showing the effectiveness of the model, two scenarios are considered in a hypothetical deposit and the results show that incorporating the modified optimum cut-off grade policy, the net present value will be increased by 3.6% in comparison with the Base Case.     

Financial assurance and mine closure: Stakeholder expectations and effects on operating decisions

Financial assurance is increasingly seen as a means to ensure orderly, clean and lasting closure of mines. Broadly interpreted, “closure” requires leaving viable ecosystems on mining lands that are compatible with a healthy environment and with human activities, that have low hazard, and that encompass measures to prevent ongoing pollution from the site in the long-term. Financial assurance encompasses environmental surety instruments that protect the government and public in the event a mining company cannot meet its reclamation or rehabilitation obligations. As such, financial assurance is in essence the money available for closure of the mine in the case when the mine owner is not available to perform the work. A general trend towards greater environmental concern among social stakeholders in mining further serves to focus attention on policies and practices that can actually “assure” financial assurance.Financial assurance is also perceived as a means to address closure-related challenges that are increasing in number as well as diversity. Notably, current trends involve a shift towards a greater focus to the societal aspects of mine closure rather than just the ecological. The use of financial assurance, however, also raises some fundamental questions about how assurance mechanisms influence mining operations and the relationship between mining operations and their surroundings. This paper examines both the internal effect of a variety of financial assurance approaches on mining operations—in particular the manner in which environmental and social concerns are addressed by mining firms, and the almost inevitable tension between some form of financial provision for closure on the one hand, and governmental expectations of tax revenue on the other. As a major argument for supporting the conduct of mining is that state revenues from the extractive industries supply monies for the building of human and infrastructural capital, this second area of tension also has strong social and developmental overtones.     

攀枝花矿业基地环境恢复与生态重建的对策

攀枝花矿业基地大规模的矿业开发造成了严重的环境污染和生态破坏。该区环境恢复和生态重建的基本对策：（1）矿业开发过程中实施清洁生产工艺;（2）采用先进技术治理和修复环境;（3）加强矿区土地复垦和生态重建;（4）完善矿山环境管理体系。     

The Environmental sustainability of mining in Australia: key mega-trends and looming constraints

At first ‘sustainable mining’ could be perceived as a paradox—minerals are widely held to be finite resources with rising consumption causing pressure on known resources. The true sustainability of mineral resources, however, is a much more complex picture and involves exploration, technology, economics, social and environmental issues, and advancing scientific knowledge—predicting future sustainability is therefore not a simple task. This paper presents the results from a landmark study on historical trends in Australian mining, including ore milled, ore grades, open cut versus underground mining, overburden/waste rock and economic resources. When complete data sets are compiled for specific metals, particular issues stand out with respect to sustainability—technological breakthroughs (e.g. flotation, carbon-in-pulp), new discoveries (e.g. uranium or U), price changes (e.g. Au, boom/bust cycles), social issues (e.g. strikes), etc. All of these issues are of prime importance in moving towards a semi-quantitative sustainability model of mineral resources and the mining industry. For the future, critical issues will continue to be declining ore grades (also ore quality and impurities), increased waste rock and associated liabilities, known economic resources, potential breakthrough technologies, and broader environmental constraints (e.g. carbon costs, water). For this latter area, many companies now report annually on sustainability performance—facilitating analysis of environmental sustainability with respect to production performance. By linking these two commonly disparate aspects—mining production and environmental/sustainability data—it becomes possible to better understand environmental sustainability and predict future constraints such as water requirements, greenhouse emissions, energy and reagent inputs, and the like. This paper will therefore present a range of fundamental data and issues which help towards quantifying the resource and environmental sustainability of mining—with critical implications for the mining industry and society as a whole.     

Drainage and utilization of Chinese coal mine methane with a coal–methane co-exploitation model: Analysis and projections

Coal mine methane (CMM) released during coal mining attributes to unsafe working conditions and environmental impact. China, the largest coal producer in the world, is facing problems associated with CMM such as fatal gas accidents and intense greenhouse gas emission along the path to deep mining. Complicated geological conditions featured with low permeability, high gas pressure and gas content of Chinese coal seams have been hindering the coal extraction. To solve these problems, a model of coal–methane co-exploitation is proposed. This model realizes the extraction of two resources with safety ensured and has been successfully applied in Huainan coalfield, China. The current situation of drainage and utilization of CMM in China are diagnosed. Connections between the coal production, methane emissions, drainage and utilization are analyzed. Estimations of future coal production, methane emissions, drainage and utilization are made in a co-exploitation based scenario. The emitted, drained and utilized CMM are projected to reach 26.6, 13.3 and 9.3 billion m³, respectively by adapting the assumption of 3800 million metric tons of coal production by 2020.     

Green accounting and sustainability of the Peruvian metal mining sector

This paper estimates the true economic income of Peru’s metal mining sector for the period 1992–2006, using a model of green economic income based on Hamilton (2000). The total depletion of natural capital caused by metal mining is calculated by estimating, on the one hand, the depreciation of mining resources (using the Hotelling rent approach) and, on the other, the environmental degradation provoked by metal mining activities. The results show that the total loss of natural capital represents between 31% and 51% of the metal mining GDP and between 2% and 4.9% of Peru’s GDP. On the other hand, correcting the usual GDP measure produced by the traditional National Account System (NAS) for the total loss of natural capital caused by mining activities shows that the GDP traditional measure overestimated by 51–64% the true economic income generated by Peruvian's metal mining sector during the period 1992–2006. The importance of the generation, taxation, and disposition of mining economic rents for Peru’s sustainable development in the future is also discussed.     

矿业环境治理的经济学分析

当前，我国矿山环境问题突出。重点分析了矿山开采环境问题的特殊性，这些特殊性包括矿业对地域区位的依赖性、破坏的大量不确定性以及不可逆性。根据特殊性，讨论了环境经济学的适用性。不确定问题转化为确定性问题或者风险问题依赖于技术层面学科（如矿山环境影响评价和矿山环境地质学等）的支撑。最后指出随着这些技术学科的发展，矿山环境问题就会更精确地纳入成本——效益分析框架，从而发挥更大的作用。     

How have reforms fuelled the expansion of artisanal mining? Evidence from sub-Saharan Africa

This paper investigates whether and how World Bank mining sector reforms have fuelled the expansion of illegal artisanal mining activity in Sub-Saharan Africa. In doing so, the analysis examines three issues. First, the emerging correlation between reforms and poverty, mainly a result of increased unemployment caused by Structural Adjustment Programmes and concurrent privatisation of state-owned enterprises, is explored. Second, the possibility that reform of large-scale mining has decreased available land for peasant farming as well as legalised small-scale mining activity is discussed. Finally, the notion that the regularisation of informal mining activities has been an exceedingly bureaucratic procedure in Africa, therefore providing individuals with little incentive to operate within the legal domain, is examined. Faced with few employment prospects, a growing number of Africans are pursuing employment in the artisanal mining sector, a worrying prospect given its intimate association with environmental degradation and HIV/AIDS.     

Reduction and utilization of coal mine waste rock in China: A case study in Tiefa coalfield

In China, coal mine waste rock (CMWR) produced during coal mining and processing is still increasing significantly as a result of coal production which has huge environmental impact. CMWR reduction and utilization is a major issue for coal enterprises and government to reduce the surface footprint and the public environmental impact. Tiefa coalfield, an old coalfield with 60 years of coal exploitation, was selected as a case to study the methods to minimize the environmental impacts of CMWR piles in a short period. We argue that a systematic design on CMWR utilization is needed on the basis of a usage evaluation which takes consideration of CMWR source, compositions, and proximate analysis. Mine design is crucial and the base for reducing the CMWR generation at the headstream. Placing roadway into coal seam rather than rock, panel optimization, and parametric analysis for mining technique were conducted in Tiefa coalfield. A promising technology of CMWR backfill under the ground was employed with a resultant increase of coal recovery rate. The surface CMWR recycling depends on brick making, electricity generating, and rehabilitation of subsided land. The practice of the presented methods indicates that the CMWR piles on Tiefa coalfield may disappear in 3 years, which could significantly reduce the environmental impacts of CMWR dumps. The technologies conducted in Tiefa coalfield developed a model of CMWR reduction and utilization for Chinese coal mines.     

Spoken but not Heard: the promise of the precautionary principle for natural resource development

Too often, mining developments provide short-term jobs and taxes, and long-term environmental and community degradation. The 'precautionary principle', as practised by the European Union and increasingly by other nations, may provide an opportunity for local communities and others who bear the brunt of mining to employ a cautionary approach to mine permitting. Using the case of the Zortman-Landusky gold mine in Montana, the article illustrates how the precautionary principle might have precluded the tremendous losses suffered by the Fort Belknap residents who live near the now abandoned mine. The Native Americans and other protestors against the mine were correct in their worries about mine drainage affecting their watercourses and the precautionary principle might have limited mine development. The case also illustrates that economic data on mining companies need to go well beyond simple reclamation bond capability in order to avoid bankruptcy resulting in the neighbours and the government having to pay for clean-up.     

A regional environmental information system for analyzing and predicting the impacts of nonferrous mining on an agricultural environment

Mineral exploitation is a necessary component of China's economic development goals. Such exploitation brings with it the potential for serious environmental degradation. Careful environmental impact assessments of mining projects are required in order to implement China's environmental protection law and identify measures for protecting surrounding agricultural environments. This article describes an environmental information system that has been developed for the purpose of assisting with the environmental impact assessment of nonferrous mining operations with a particular focus on agricultural impacts. An application of the environmental information system to the Yongping copper mine, located in Jiangxi Province, is discussed. The role of the environmental information system is analyzing and predicting soil contamination from heavy metals and other types of impacts from this mining operation is described. The environmental information system is designed for implementation on an IBM PC/XT microcomputer. The experience gained from the Yongping copper mine application and the growing popularity of microcomputers in China indicate a significant potential for the effective use of a microcomputer-based environmental information system in other parts of China.     

Spoken but not Heard: The promise of the precautionary principle for natural resource development

Too often, mining developments provide short-term jobs and taxes, and long-term environmental and community degradation. The 'precautionary principle', as practised by the European Union and increasingly by other nations, may provide an opportunity for local communities and others who bear the brunt of mining to employ a cautionary approach to mine permitting. Using the case of the Zortman-Landusky gold mine in Montana, the article illustrates how the precautionary principle might have precluded the tremendous losses suffered by the Fort Belknap residents who live near the now abandoned mine. The Native Americans and other protestors against the mine were correct in their worries about mine drainage affecting their watercourses and the precautionary principle might have limited mine development. The case also illustrates that economic data on mining companies need to go well beyond simple reclamation bond capability in order to avoid bankruptcy resulting in the neighbours and the government having to pay for clean-up.     

How can public–private partnerships contribute to security and human rights policy and practice in the extractive industries? A case study of The Democratic Republic of Congo (DRC)

Across sub-Saharan Africa, the presence of foreign large-scale mining companies is increasing. This is in part a result of depleting resources in countries such as Canada, United States and Australia, and in part from a more favorable national mine investment climate in several mineral-rich African countries. Their increased presence raises important questions around the potential role and function of Corporate Social Responsibility (CSR) in the sector. In post-conflict and/or fragile states, CSR has further implications for conflict and risk mitigation strategies to ensure the protection of human rights. One CSR approach increasingly being considered is the public–private partnership, whereby companies, public donors, and development agencies leverage their relationships for mutual benefit. There is merit in exploring its function in post-conflict fragile states, where socio-economic needs are high and the capacity of the state to respond to a variety of mine governance challenges is limited. Two case studies from the Democratic Republic of Congo (DRC) are presented, and their policy implications, discussed.     

Sustainable development in the mining industry: clarifying the corporate perspective

This paper examines sustainable development in the corporate mining context, and provides some guidelines for mining companies seeking to operate more sustainably. There is now a burgeoning literature that examines sustainable development in the context of minerals and mining, most of which is concerned with sustainability at global and national scales. What is often challenging to ascertain, however, from these numerous perspectives on sustainable mineral extraction, minerals and metals recycling, environmental management, and social performance, is how sustainable development applies to mining companies themselves, and what steps a mine must take in order to improve the sustainability of operations. Since mining processes have the potential to impact a diverse group of environmental entities, and are of interest to a wide range of stakeholder groups, there is ample opportunity for the industry to operate more sustainably. Specifically, with improved planning, implementation of sound environmental management tools and cleaner technologies, extended social responsibility to stakeholder groups, the formation of sustainability partnerships, and improved training, a mine can improve performance in both the environmental and socioeconomic arenas, and thus contribute enormously to sustainable development at the mine level.     

Government and voluntary policymaking for sustainability in mining towns: A longitudinal analysis of Itabira,Brazil

The socio‐economic fabric of single‐company mining towns needs to be carefully considered by both Government and companies in sustainability policymaking. Policy design and effectiveness in such towns are significantly impacted by the city's economic dependence on a single company. This paper explores the perceived effectiveness of government and voluntary private sector mining policies for pursuing sustainability in the historic mining town of Itabira, Brazil over a period of 20 years. Itabira serves as a worthwhile case study because it allows for an in‐depth and longitudinal analysis that can reveal valuable lessons to policymakers of different sectors and jurisdictions located elsewhere. Based on extensive face‐to‐face interviews and literature reviews, study results indicate that changes to the state environmental licensing policies in the 1990s led to significant socio‐environmental improvements in the area. The globalization of the mining company also contributed to an increase in the quantity and quality of voluntary industry policies. Recent technological improvements in the beneficiation processes of the mining company promises to extend the life of the mine to 2050. Although there are significant incremental socio‐environmental policies and programmes, sustainability remains an elusive vision in Itabira, with no clear objectives or monitoring and accountability mechanisms. The paper concludes by recommending a more formal integrated policymaking framework.     

New mercantilism: A perspective on how politics is shaping world metal supply

The major countries consuming metals tended historically to be also the major countries producing them. It was in their interest to promote mine development to provide low cost raw materials. Over the past fifty years, the share of global production accounted for by consuming countries has declined and producers and consumers of metals have been slowly moving into separate camps having distinct and differing interests. As a consequence of this, governments of producing countries have become more focused on how to maximise the benefit of metal extraction to their economies rather than on how to supply cheap raw materials; a tendency which has found expression in resource nationalism. Governments of consuming countries have in response become increasingly concerned about the implications of this tendency to their economic development and some countries, most notably China, have adopted robust policies to secure their supplies. Through their actions to influence capital flows within the mining industry and to force metals trade into channels which better serve their national interests (a process characterised here as ‘new mercantilism’), metal producing and metal consuming countries are reshaping global supply.