Economic and financial aspects of mine closure

Today, mine reclamation is a key component to a successful mine plan. Most of the industrialized nations have recognized the need to make mining activities relatively environmentally friendly, if they want to continue to benefit from the economic gains from mineral resource development. Countries such as the United States, Canada, Australia and South Africa are leaders in the field and have implemented relatively sophisticated legislation to ensure environmentally correct mine closure. These countries rely on a combination of strict control strategies and economic penalties to ensure compliance. Yet, from the firm's perspective, reclamation activities are counterproductive as they cut into profits. In order to attract economic development and earn much needed economic capital, most of the rest of the world, particularly the developing countries, lack effective mine closure legislation. The traditional command and control type of legislation that is sometimes used is either vague and therefore avoided, or not enforced appropriately, resulting in an undesirable level of environmental degradation. With the use of case studies from Brazil, this article shows that direct controls are effective in some instances and not in others. It proposes that economic and financial tools may be more effective than the traditional direct controls in getting firms to comply with environmental standards, particularly in developing countries where environmental compliance is more difficult to achieve. It explains the use of performance bonding as one type of economic incentive that has proven to be an effective environmental policy in mine planning and closure. The authors additionally push beyond the typical style of performance bonds to introduce a flexible bonding and insurance system that allows governments to maintain strict environmental standards but limits firms financial exposure during the mining process. Such a system learns from the successes of the industrialized countries that use performance bonding and is sensitive to the needs of developing nations to attract investment yet maintain environmental integrity.     

Multiple scales of diamond mining in Akwatia,Ghana: addressing environmental and human development impact

Ghana is the second largest producer of gold in sub-Saharan Africa, and has experienced a significant increase in national mining production over the last two decades. Between 1983 and 1998, the mining industry brought approximately US $4 billion in foreign direct investment to Ghana. While large-scale gold mining has seen a significant increase, artisanal gold and diamond mining product have grown exponentially. While much research has been conducted on gold mining in Ghana, there is relatively little research on the environmental and human development consequences of diamond mining in the country. Unlike other West African countries such as Sierra Leonne and Liberia, small-scale diamond mining in Ghana has not been linked to conflict but its role in development has also been relatively modest. This paper examines large and small-scale mining in Ghana's largest diamond mining town, Akwatia, and their relative impact on environmental degradation, health, and the livelihood of artisanal miners. We conclude that while an increase in artisanal diamond mining has been a means of employement and income-generation for small-scale miners, there are some human development challenges, related to environmental burden from land degradation and health. GCD is an ailing mining company in Ghana, in desperate need of an injection of capital to keep the mine alive, but botched bidding has slowed the process of de-regulating the company. We also conclude that the de-regulation of GCD may lead to a relatively reduced environmental burden in Akwatia and more revenue for the GCD to invest in the human development needs of communities in the town.     

Environmental issues for developing countries arising from liberalized trade in the mining industry

This review analyses some of the environmental and economic implications of current trade policies and changes in the world trading system for mineral producers and consumers. A principal factor which determines environmental performance is whether firms have the resources and capabilities to undertake innovation. We therefore place particular emphasis on the anticipated effects of liberalized trade on innovation and competitiveness at the firm level. Evidence indicates that improvements in environmental management would be expected to occur irrespective of the country hosting the investment. Due to the opening investment climate and relatively large quantities of mineral reserves, we expect these effects to be positive for many mineral producing developing countries. One difficulty which may arise is whether policy measures to promote production efficiency and develop innovation in mining and mineral processing operations could be interpreted as protectionism. The creation of new lines of credit, to promote, but not subsidize, technological and organizational innovation, may be the best way forward for developing countries .     

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.     

跨国公司对东道国的环境法律责任问题研究

随着经济全球化的发展,跨国公司的经济影响力剧增,成为众多发展中国家外资的主要来源,然而与之伴随的＂三高＂产业的转移给主要东道国的发展中国家造成了巨大的环境问题,再加上发展中国家地方政府政绩观的错位、公众环保意识的欠缺,这一问题更加凸显,而有限责任的原则使得各跨国公司母公司避开了责任的承担。对此,必须借助＂公司法人格否认＂制度,＂揭开公司面纱＂,将公司是否滥用控制权的举证责任赋予母公司,并考虑环境侵权的特殊性,以无过错责任原则和因果关系推定为基础完善对跨国公司环境法律责任的追究机制。     

Feasibility of water purification technology in rural areas of developing countries

Water scarcity is threatening social and economic growth in rural areas of developing countries. There are potential markets for water purification technologies in these regions. The main focus of this article is to evaluate the social, economic and political feasibilities of providing water purification technologies to rural areas of developing countries. The findings of this research can serve as the basis for private investors interested in entering this market. Four representative regions were selected for the study. Economic, demographic, and environmental variables of each region were collected and analyzed along with domestic markets and political information. Rural areas of the developing world are populated with poor people unable to fulfill the basic needs for clean water and sanitation. These people represent an important group of potential users. Due to economic, social, and political risks in these areas, it is difficult to build a strong case for any business or organization focusing on immediate returns on capital investment. A plausible business strategy would be to approach the water purification market as a corporate responsibility and social investing in the short term. This would allow an organization to be well positioned once the economic ability of individuals, governments, and donor agencies are better aligned.     

NIEO revisited: A new international environmental order in the making

In the past, most of the attempts to improve the situation of the developing countries have focused on economic policy, on the conditions of international trade, on aid and direct investment. A debate on a New International Economic Order (NIEO) was launched in the 1970s (c.f. Tinbergen, 1976)—and largely failed (c.f. Simonis, 1989). This paper shows that environmental policy could be a more effective lever for improving the lot of the developing countries; the near future may see the evolution of a new international environmental order which is likely to better link environmental protection and economic development.     

我国利用外商直接投资与环境保护问题

随着改革开放的深入发展，我国利用外资规模不断扩大，特别是近几年来，利用外商直接投资的额度每年都上新台阶。外商直接投资对我国经济发展起到了重要作用，但往往人们在注重经济发展时，却忽视了环境污染问题。目前我国迫切需要正确处理好利用外商直接投资与保护环境的关系，采取有效的对策，实现二者的协调发展。     

环境防护活动经济核算研究--以巴州地区为例

越来越多的国家将可持续发展战略作为其在2l世纪的主要发展战略，随着这一战略开始实施，学者们对环境统计和环境经济核算给予了前所未有的关注。但环境统计和环境经济核算在世界上仍然是一个新的研究课题。本文以巴州地区为例，对环境经济核算中的环境防护活动经济核算进行了研究，给出一种粗略的估算方法。     

World phosphate supply

The Bureau of Mines investigated the resources, costs, capacities, market relationships, and short- and long-run supply of phosphate rock and phosphoric acid. The 206 mines and deposits evaluated in 30 market economy countries (MECs) contain an estimated 35.1 billion tonnes of recoverable phosphate rock (demonstrated resource level). US resources are sufficient to satisfy both the domestic market and an export market for phosphate products well beyond 2000. Resource depletion at current producers, however, means new property development (with higher costs) will be required if US production levels are to be maintained. Existing worldwide capacity can satisfy expected demand through the early 1990s. Expansion at existing mines or low demand growth could mean no new property development is required before the late 1990s. Worldwide, almost $8 billion could be required for the development of new phosphate rock properties between now and 2000, given 3% annual growth in demand. Though profit may not be the principal motivation for development of government-owned operations, most properties that could develop in the 1990s would require price increases of 20–50% to break even. To earn a 15% rate of return on investment, prices must rise to nearly double the $23–271 tonne US price level of 1988. Current US phosphate rock and phosphoric acid producers appear to be competitive (on a variable cost basis) with many other suppliers in major markets. New US properties will have higher variable costs than current producers; however, they are competitive with most projected new foreign development. The US phosphoric acid industry will most likely face increased competition as more of the foreign phosphate rock producers develop the capacity to process rock into phosphoric acid and other fertilizer products.     

Sources of funds for developing country petroleum development

The Third World debt crisis has drastically altered the options open to Third World countries to fund petroleum development. Restricted access to international capital markets means that developing countries are having to reconsider alternative financial options to achieve a satisfactory rate of petroleum development. Of these, only foreign direct investmentis capable of compensating for the loss of more traditional sources of funds. To this end, developing countries are revising and harmonizing prior restrictive direct investment rules and tax codes, with recent financial innovations further underwriting the process.     

Towards a grand deal on subsidies and climate change

Recent studies have identified public subsidies as a principal cause of unsustainable development. Worldwide, governments are spending up to $U950 billion a year on subsidies. Many of these public subsidies fail to serve their purpose and in fact, often turn out as policy failures as they further distort trade and cause environmental harm. The energy sector is among the most subsidized sectors in the world, receiving over $U240 billion per annum of public subsidies. This article highlights current energy subsidies and their implications. The article examines: (i) the global size and distribution of energy subsidies in industrialized and developing countries; (ii) the impact of these subsidies on the economy, equity and the environment and their role as barriers for sustainable development; (iii) the political economy behind public subsidies and the various political and institutional barriers and lock-in mechanisms that cause subsidies to become entrenched in economic and public structures; and (iv) proposals for effective subsidy reform in energy policies, suggesting a global strategy to eliminate energy subsidies. OECD governments are in a position to take the lead, and the UN Framework Convention on Climate Change presents an excellent opportunity of striking a political grand deal and linking the reform of energy subsidies to a meaningful participation of developing countries to the Kyoto Protocol. Moreover, if sinks are to be included in the clean development mechanism (CDM), it is crucial to include the removal of forestry subsidies in the grand deal.     

Water supply and sanitation services for all: global progress during the 1990s

The Earth may be largely covered with water, but over one billion people are estimated to be without safe drinking water and almost 2.5 billion (40% of the world's population) without adequate sanitation at the outset of the new millennium. The provision of safe water and sanitation for all poses several serious institutional and economic challenges at international, national and local levels. Despite the various political commitments made from the late 1970s onwards, these commitments have remained largely unfulfilled. Even though some efforts to expand coverage have been made over the past two decades, much of those efforts have been undermined by socioeconomic problems and growing population, particularly in the urban areas of developing countries. The water supply and sanitation sector is actually in acute need of new investments for expansion and maintenance of facilities. Nonetheless, some positive trends can be discerned, such as, for example, the increasing recognition of integrated water resources management, environmental sanitation, public-private partnerships and women as a key for improvement and expansion of services.     

Recent developments in small-scale mining

Artisanal mining is to be viewed not only as an issue requiring mining expertise, but also as a socio-economic issue in the context of poverty, requiring multi-sectoral attention. This article traces global employment estimates in small-scale mining, outlining the extent and economic impact of small-scale mining in selected countries in Africa, Asia and Latin America. New approaches and developments are analyzed with special focus on the interrelated roles of government, the private sector, non-governmental organizations, lending institutions and the local communities. The flow of foreign capital, the creation of joint ventures, and the contribution of women are also discussed, as are strategies that have been implemented as well as recent developments including developments in the areas of health and safety.     

The resource curse

Countries that possess rich mineral deposits, it is widely assumed, are fortunate. Such deposits are assets, part of a country's natural capital. Mining is the key that converts dormant mineral wealth into schools, homes, ports, and other forms of capital that directly contribute to economic development. Over the past two decades, however, a more negative view of mining has emerged that questions the positive relationship between mineral extraction and economic development. The impetus for the alternative view came from empirical studies suggesting that countries where mining is important have not grown as rapidly as other countries. More recent studies have explored the possible reasons behind the disappointing performance of many mineral producing countries. While the central point of contention between the conventional and alternative views — namely, whether or not mining usually promotes economic development — remains unresolved, there is widespread agreement that rich mineral deposits provide developing countries with opportunities, which in some instances have been used wisely to promote development, and in other instances have been misused, hurting development. The consensus on this issue is important, for it means that one uniform policy toward all mining in the developing world is not desirable, despite the recent suggestions by some to the contrary. The appropriate public policy question is not should we or should we not promote mining in the developing countries, but rather where should we encourage it and how can we ensure that it contributes as much as possible to economic development and poverty alleviation.     

Nature of property rights and motivation for blue growth: An empirical evidence from the fisheries industry

If unauthorized resource use is prevented, managing marine resources by allocating property rights may match economic and environmental conservation incentives. However, because of the developing exploitation of marine resources and accompanying pollution, species' living conditions in Europe's waters are changing more quickly than before. By considering the roles of fisheries productivity, intellectual property rights, intellectual capital rights, market size, governance, and economic growth from 1990 to 2022, this paper aims to investigate the dynamic effect of property rights factors on the sustainability of the fisheries industry in 27 European countries. At higher quantiles, the findings showed a significant positive association between governance and fisheries sustainability adopting a new method, the MMQR with fixed effects, the Method of Moments Quantile Regression. In addition, in EU27 nations, the impact of intellectual property rights was favorable and statistically significant from the first to ninth quantiles. The findings show that the EU14 developed nations have more excellent governance and intellectual capital rights than the EU13 developing countries, significantly benefiting fisheries sustainability. In the same way that market size and economic growth condense fisheries sustainability in EU14 developed and EU13 developing countries, it has been discovered that intellectual property rights do the same across all quantiles, supporting the growth hypothesis for fisheries-producing countries. The findings specifically show that the beneficial solid impact of intellectual property rights, market size, and economic development on the sustainability of fisheries is more significant in EU13 developing nations than in EU14 developed countries. These results provide policymakers with helpful information for promoting property rights aspects in EU14 and EU13 nations via effective green technologies in the fisheries sector to meet sustainable development objectives.     

A new approach to sustainable tourism development: Moving beyond environmental protection

Tourism is one of the largest and fastest growing industries in the world. It is an increasingly important source of income, employment and wealth in many countries. Its rapid expansion has, however, had detrimental environmental (and socio-cultural) impacts in many regions. In this article, I examine the main economic benefits and environmental impacts of tourism, and review the development of the international sustainable tourism agenda. While much of international tourism activity takes place within the developed world, this article will focus on the (economic) development of the industry in developing countries I conclude that new approaches to sustainable tourism development in these countries should not only seek to minimize local environmental impact, but also give greater priority to community participation and poverty alleviation. I argue, in particular, that more emphasis should be given to a 'pro-poor tourism' approach at both national and international levels.     

Converging worlds

Summary Converging Worlds delineates how environmental events in the developing world can lead to economic and political instability—two major liabilities for US national security and economic interests abroad. Increasingly, US foreign policy analysis will have to include a close scrutiny of environmental events and a country’s natural resource profile to adequately anticipate global hot spots. A closer look at environmental events in the global context may also provide a sense of new options for foreign policy and private sector initiatives. Senior Liaison Officer United Nations Environment Programme Washington Representative and Senior Liaison Officer for the United Nations Environment Programme. Formerly National Director for Public Affairs of the US Environmental Protection Agency; Senior Coordinator for the American Petroleum Institute; and founder and President of the Bolton Institute. Major initiattives include Global Connections/Environment Conference (1980); City Care Conference (1979); and UN Habitat community assemblies (1975).     

Environmental Biotechnology Research: Challenges and Opportunities in Latin America

Latin American countries have an extensive biological diversity and a tropical or subtropical climate. This condition has advantages for development and for the implementation of biotechnological solutions for environmental problems. Environmental biotechnology could be used to enhance biodegradation, waste recovery, and also for the development of biotechnology-based products to diagnose and reduce environmental impacts such as biosensors, biopesticides, biofertilizers and biofuels. To generate new environmental biotechnological products, Latin American countries must not only overcome the known limitations associated with investment in science and technology and in human resource training, but also develop their own vision of using environmental biotechnology, adapted to the economic, and environmental context. Biotechnology used wisely as a tool for promoting sustainable development in Latin American countries may also contribute to the solution of problems that represent potential risks to society and the environment in general. This document discusses the context of the research and innovation in Latin American countries around environmental biotechnology and also reviews perspectives for the improvement of these developments.     

The importance of training for environmental management

Conclusion I wish to conclude as I began, with a quotation from a newspaper on the potential damage and the attendant costs of not applying sound environmental management: The Guardian, Wednesday, 5 October 1983: “The Shell Oil Company which admitted yesterday that it had allowed dangerous pesticides to escape near Denver, Colorado has received a demand from the US Army for $1 8 billion to help to stop pollution from reaching the city ... Shell and the US Army research, which includes experiments with nerve gas, may have caused far more serious pollution in the area.” The need for sustainable development and for training in environmental management in Third World countries, should ensure that reports on environmental damage, such as the one above, do not become a common occurrence in developing countries in the next decade or hopefully forever after. This paper was presented at the conference “The Environmental Dimension in World Development, the contribution that British Companies can make”, organized by the Centre for World Development Education, London, UK, during October 1983. Dr Jose I. Furtado is Professor of Zoology in Malaysia, and is seconded as Science Adviser with the Commonwealth Secretariat in London.