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.     

Assessing the impact of driverless haul trucks in Australian surface mining

Australia has been a leading mining nation and its mines continue to attract substantial investment due to its strong mineral endowment, mining tradition and high skills base. In recent years Australian mining companies have been facing higher labour costs, which need to be offset by other savings. Automating mine-site machinery offers one potential source of such savings.Underground mines pioneered automated technology largely for safety and mine accessibility reasons and to reduce operating costs. Yet these operations now represent a much smaller portion of the total ore tonnes mined due to the changing mining techniques meaning larger lower grade deposits are becoming economic. It appears the future of mine automation will be directed by surface mining as this maturing technology finds further applications above ground and in the next decade large scale open pit automation trials gain more momentum.This paper assesses the implications of introducing driverless haul trucks in a typical large remote Australian open-pit mine. Such automation will save employee and associated costs, increase operational productive hours and ultimately will reduce mine site workforce numbers. While there will be fewer jobs per mine, with reduced costs and higher productivity some previously uneconomic mines may again be profitable.The social implications of greater mine site automation are the reduction in population of remote mining towns and a decrease in the lower skilled labour requirements for the mining sector. There will be an increase in fly-in fly-out mining operations and companies will establish remote control centres for automated mines in larger cities. This may decrease overall labour requirements and so reduce employment in the sector; therefore, the government should be mindful of implementing policies that ensure a fair return on the economic rent of mineral leases.     

METAL RESOURCES OF DEEP SEA NODULES

The deep ocean floor represents the latest frontier of knowledge about global mineral resources. The ocean environment poses unique problems for mineral resource development - problems of resource assessment, adaptation of mining technology, and management of resources common to all of mankind. In the first of three related articles on the mineral resources of the ocean, Mr. Odunton assesses the current state of knowledge about the nature and extent of marigenous minerals. He examines the processes of formation, the composition, and the regional distribution of ferromanganese nodules, which represent the most promising of these minerals at present. Attention is also given to the considerations involved in the location, evaluation and exploitation of nodule deposits. Future articles will review ocean mining technology and the economic and policy issues involved in the development of ocean mineral resources.     

The geographic concentration of world mineral supplies

Mineral reserves are unevenly and erratically distributed throughout the world; those countries which were intensively explored in the past — the USA, Canada, the USSR, Australia, South Africa, and a limited number of Asian, African, and Latin American countries — control a large share of many of the industrially important metallic minerals. Current attitudes towards exploration and the mining industry in both the developed and the less developed countries should clearly encourage rather than discourage new exploration. Given an increase in exploration, new reserves may well be found in previously unexplored areas, but any major increase in world mineral supplies will probably come from mining very low- grade deposits and developing new methods of mining and processing non-conventional ores. While it is vital to increase research and development in exploration techniques and mining and processing technology, it is also critical to maintain current levels of consumption and trade by reversing the trend towards trade restriction on the part of some of the less developed countries who are important mineral exporters.     

Informal coal mining in Eastern India: Evidence from the Raniganj Coalbelt

Unauthorized mines are not uncommon in mineral-rich regions of poorer countries, and India is no exception. Whether they constitute merely a law and order problem including safety issues, or there are important social and economic questions involved has yet to be thrashed out. The mining industry, at regional, national and international levels, is ambivalent towards such mining, tending to draw attention away from their informal nature to the size factor.
This article looks into the problem of such informal mining in the light of empirical surveys in eastern Indian collieries. These are called peoples' mines and they serve a significant purpose in local economies. The article's thesis is that peasant communities are trying to claim back a portion of the local resources lost to them through appropriation by mining companies thus re-asserting their traditional rights to local mineral resources. In conclusion, the need for a new moral economy for mining regions is stressed: an economy in which local communities will play a powerful role.     

The Ethiopian mining sector

The Ethiopian Constitution of 1928 vests in the state ownership of all mineral resources. However, the mining code of 1944 recognized the right of individuals and private companies to explore for and develop those resources. The results were quite impressive; Ethiopia became a producer of gold, platinum, copper and other minerals. A revised mining code in 1971 further extended the rights of individuals and companies to develop the mineral resources of the country. In 1974, the newly established revolutionary government eliminated private ownership of mines and established instead state-owned mining companies to develop the mineral resources of the country. In time, the demand for government funding by other sectors of the economy left little for the mining sector and it went into decline. To correct that problem, the Government of Ethiopia in 1989 decided to again make private ownership in the mining sector legal. This paper describes some of the recent initiatives to open the mining sector to private enterprise.     

Resource diplomacy in a Canadian perspective

Concern for the supply of resources—renewable and nonrenewable—has been evident during the 1970s. All countries seek to increase the economic and social returns from the exploration, processing and distribution of minerals so as to improve the quality of life of their people. Proper resource management is imperative because of the interdependence of the mineral sector with other leading sectors of the economy and also because of the importance of minerals in the web of international economics. This paper emphasises the significance of recent international events as they affect the mineral industry and the Canadian position in the ever changing world of resource diplomacy.     

Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina

Since the liberalisation of its investment regime in the 1990s, Argentina has seen a rise in foreign direct investment into large-scale exploration and exploitation of mineral resources. However, many social groups (local communities, grassroots movement and the church) often strongly oppose new mining projects on the grounds of environmental, ethical and economic concerns. In a situation marked by widespread conflict, mining companies continue operating and develop Corporate Social Responsibility (CSR) initiatives which are often promoted as a means of contributing to the sustainability and development of the nation. The paper develops a framework to highlight how the principles of stakeholder theory could be used as conceptual and practical guidance for conflict-resolution oriented CSR policies. The framework is further used to analyse two case studies of conflictive mining projects in Argentina. The paper explores how key stakeholders perceive contribution of CSR to welfare and the socio-economic development of mining communities and sustainable development of the nation. It demonstrates that institutional and social stakeholder networks often strongly oppose the idea of voluntary self-regulation implied by CSR in situations characterised by weak governance. Even though the CSR of companies could be improved in areas of corporate communication, transparency, stakeholder engagement and dialogue, it is not seen as a panacea for the social conflicts in the sector.     

Harnessing the bonanza: economic liberalization and capacity building in the mineral sector

Over the past decade many developing and transition economies have liberalized their investment regimes for mining and privatized formerly state-owned mineral assets. In response, these economies have witnessed increased foreign investment in exploration and development, growth in the number and diversity of mineral projects, and the opening up of new channels for harnessing increased economic and social benefits from development in the minerals sector. The restructuring of fiscal and regulatory regimes to encourage foreign investment, and the associated influx of mining capital, technology and skills, is transforming traditional relationships between mining firms, local communities and the government. This transformation necessitates a re-evaluation of the most effective policy approaches to capture increased economic and social benefits from mineral production. This article considers effective mechanisms for improving the capacity of developing and transition countries to maximize the economic and social benefits of mineral production. Common challenges associated with minerals economies are reviewed. Consideration is given to the opportunities for harnessing foreign direct investment and the possibilities for creating new partnerships between local communities, industry, government, and multilateral development agencies through social investment projects. The article concludes with a series of recommendations for the design and implementation of policy approaches towards harnessing mineral production for economic and social benefit following the liberalization of investment regimes for mining.     

Geological supply and economic demand: The unresolved equation

Whereas the ultimate world supply of minerals is controlled by geological factors, the actual supply at any particular time is controlled by economic factors. Mineral production is a function of investment in exploration, mining, and processing - and research in these fields. Given the long lead time between a decision to explore and actual production from any deposit found, the increasing difficulty of finding deposits in the well prospected parts of the world, the political barriers to exploration in the less developed countries, the energy barriers to mining and processing ever lower grade ores, and the lengthy time required to develop new exploration, extraction, and processing techniques, adjustments in supply in response to changes in demand cannot be assumed to be automatic.     

China's Minerals Future: 1985–2005

China has embarked on major economic and social changes to revitalize the Chinese economy, increase labor productivity, and improve the material standard of living of the Chinese people. This paper assumes that China will achieve its goal of a per capita income of US$800 in 2000, open-door policies will be maintained, and nonfuel mineral commodity consumption will increase as GDP per capita increases. Projections are made of production, trade and consumption of 14 nonfuel minerals for the period 1985–2005. China is projected to increase its net imports to these 14 minerals from about US$5000 million in 1985 to about US$12000 million in constant dollars in 2005. China's investment climate will become more favorable for those multinational companies that bring with them clear comparative advantages in minerals exploration, mining and processing technologies and marketing, and are prepared to develop in-depth Chinese expertise.     

青海省矿产资源综合开发利用探析

作为我国有色金属、贵金属、盐类与能源等矿产的主要蕴藏地之一的青海省,在经济发展的四大支柱——石油和天然气、盐湖矿产、有色金属矿产和水电资源产业中,有三项为矿产资源,为推进全省国民经济和社会快速发展提供了强有力的支撑,综合开发利用这些资源对全省经济社会发展具有重要意义.通过对青海省矿产资源综合开发利用的全面分析,找出存在的突出问题及其原因,提出相应的对策和建议.     

Copper, Cobalt, Nickel and Manganese Availability from Land-based Endowments A Perspective

Estimates of land-based demonstrated resources of cobalt, copper, manganese, and nickel would indicate adequate supply for many years to come based on current levels of annual consumption. However, when these resource estimates are disaggregated, much of this resource is found to occur in a limited number of producing mines. Almost all of the cobalt in these resources coexists with either nickel or copper, and as such, will be available only to the degree extraction of these two metals from existing mines is economical. Finally, current projections of excess capacity in existing mines for all four metals, coupled with additional inferred resources at these mines and yet to be exploited resources in known economical deposits, would lead one to conclude that, from this perspective, the mining of sea bed nodules is not likely to occur until well into the next century.     

Gemstone mining as a development cluster: A study of Brazil’s emerald mines

For many centuries, emeralds have bejeweled the rich and famous all over the world. Emeralds have also made many millionaires overnight, sometimes by chance, as in some of the cases reported in this study. On the other hand, even though emerald mining has brought some economic benefits, many of these have remained at the top of the production chain. In many cases mining activities have caused a number of negative social and environmental impacts locally. Working conditions in small mines are very poor in general: with bad ventilation, high temperatures, long working hours, lack of safety, informal working contracts and no health or life insurance. Environmental impacts can be significant, such as widespread deforestation, erosion of abandoned mines, and soil and water pollution in streams. The economic and social public benefits can be minimal. Even when taxes on gem mining are relatively low, much of the mining local activity is informal and the high value-added formal activities take place outside the mining regions. This study aims to understand the dynamics of emerald mining and its impact on local development using the concept of clusters. The research analyzes three case studies in Brazil: Campos Verdes/Santa Terezinha (Goias state), Nova Era/Itabira (Minas Gerais state) and Carnaiba/Campo Formoso (Bahia state). Emerald mining regions attract many migrants, increasing the demand for public services (infrastructure, health, education, etc.), but local governments are unable to provide for them because the activity produces little tax revenue. In the end, there is a growing mismatch between demand and supply of public services, leading to a series of social and environmental problems. However, working with the concept of cluster can help to shed light on policies to improve the local benefits of gem mining, by organizing the miners and their supporting organizations to allow investments that bring long term benefits locally.     

The concept and measurement of mineral reserves and resources

The distinction between an exploitable and a non-exploitable mineral deposit is dynamic, varying as a function of changing economic and technological factors. A conceptual framework is proposed: ‘reserves’ are restricted to known currently exploitable deposits; ‘known resources’ are reserves plus currently non-exploitable deposits; ‘total resources’ are known resources plus all deposits not yet discovered. The short-term inadequacy of some mineral reserves requites a policy of accelerated mineral exploration and rapid development of new exploration techniques. Future problems could be avoided if the nature of resources is recognized and new mineral extraction and processing techniques for lower grade and unconventional mineral deposits are developed.     

Imperatives for attracting investment and technology in the Indian mining sector

In India, the mineral resource inventory and the production of a large number of important minerals have registered significant increases during the last few decades. Yet the country continues to be a net importer of many high value and scarce minerals and metals, like gold, diamond, and several base metals. Exploration and development of the resources of these minerals are technology- and capital-intensive. To bring technology and capital through foreign direct investment (FDI) into the Indian mineral sector, it is imperative to lay stress on: accurate resource estimation and categorization, as well as realistic projection of the true values; rationalization of legislative measures based on R&D studies and reorganization of the implementation machinery; conducive tax structure; notification of acts and rules applicable to offshore mineral resources; time-frames for granting licences and leases; encouragement to labor productivity by rationalizing labor laws; reforms in the monetary system to increase market competitiveness of Indian minerals; and judicial reforms. FDI in the Indian mineral sector is important to firm up the knowledge-base of mineral resources and their optimum exploitation.     

Mineral consumption in the UK, 1945–1980: A statistical analysis

Trends in the UK consumption of 12 metallic and 19 non-metallic minerals are examined for the period 1945–1980. Comparisons are drawn between these trends and developments in per capita GDP, total world consumption and UK mineral processing capacity. Although the consumption of most minerals has shown a tendency to stagnate or decline in recent years, taking the post-war period as a whole the consumption of non-metallics has displayed a faster and more sustained growth than that of metallics; thus their share of the total value of minerals consumed in the UK has increased significantly.     

Influence of land tenure practices on artisanal mining activity in Ghana

This paper examines the issue of land tenure and how it influences artisanal and small-scale mining (ASM) activity in Ghana. Over the past few decades, attempts by governments in sub-Saharan Africa to regulate or formalize ASM as a result of the sector's increasing socio-economic and environmental importance have largely been unsuccessful. Even though mining laws have tended to vest all minerals in the state, increasing evidence suggests that mineral-rich lands for artisanal mining continue to be frequently traded between local landowners and miners or interested groups outside the official legal regime. This development, i.e. land trading for artisanal mining, contributes significantly towards proliferation of illegal ASM activity and hence potentially challenges attempts by governments and development partners to formalise the sector.     

The metal mining industry in Eastern Europe

The mining industry has been one of the backbones of the socialist countries of Eastern Europe, not only in economic, but also in political, terms. Three years after the beginning of economic reforms, the mining industry in all the Eastern European countries is facing dramatic changes. Most mines are mining ores below acceptable cut-off grades, and there is no hope of finding new, richer deposits. Downstream metallurgical industries will need to replace their former suppliers. In addition, the social contract that had been maintained under the socialist governments is about to be undone and a new form of internal organization must be found. The success of the economic reforms in Eastern Europe depends upon the capacity to develop new industrial relations: the large mining combinates will have to be transformed into competitive capitalist enterprises and the role of the state must be redefined. Prospects for this transformation vary greatly, from metal to metal and from country to country. Finally, restructuring in Eastern Europe will also affect European and world markets, both on the supply and demand sides. The integration of the Eastern European mining industries into the international mining community should be the medium-term goal of all the participants .     

Corporate social responsibility, partnerships, and institutional change: The case of mining companies in South Africa

Internationally and in South Africa, mining companies are increasingly referring to corporate social responsibility (CSR) and partnerships in terms of the business case, or the expectation that being responsible and collaborating with stakeholders is good for profits. Based on a case study of platinum and chrome mining in South Africa, this article argues that the business case is circumscribed by companies’ institutional context. In the past, mining companies’ dominant interpretation of CSR has been in terms of charitable donations and support to good causes. These efforts have not alleviated the contribution of mining companies to growing social problems around the mines, primarily because they have not impacted on core business practices and have not contributed to necessary cross‐sectoral collaboration. Recently, however, there has been an important transition involving the broadening of the interpretation of CSR and increasing commitment to these issues amongst corporate leadership. Though market‐based incentives have contributed to this, the key driver has been the State's legislated transformation programme premised on State sovereignty over mineral resources. Hence, while the interrelationship between companies and their institutional context has, in the past, brought about a vicious cycle of irresponsibility and minimal collaboration, this cycle may be reversed into a virtuous one, driven in particular by the State. The broader implication is that references to a business case for CSR and partnerships cannot be relied upon independently of continued efforts at shaping the public sector context of companies.