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.     

Global trends in gold mining: Towards quantifying environmental and resource sustainability

In recent years, due to public concern over perceived and actual environmental impacts, the global mining industry has been moving towards a more sustainable framework. For gold mining, there are a number of fundamental issues with regard to assessing sustainability. Commonly perceived as a finite and non-renewable resource, long-term gold production trends include declining ore grades and increasing solid wastes (tailings, waste rock) and open cut mining. Conversely, core sustainability issues include water, energy and chemical consumption and pollutant emissions—also known as ‘resource intensity’. It is important to recognise the links between gold production trends and resource intensity, as this is critical for understanding future sustainability challenges. This paper links data sets on historic gold mining production trends with emerging sustainability reporting to estimate resource intensity, demonstrating the sensitivity of ore grade for gold production and sustainability. Final judgement of the sustainability of gold mining must take account of the sensitivity of the ore grade in the resource intensity of gold production. This has implications for environmental policy and sustainability reporting in the gold mining sector.     

Livelihood change and livelihood sustainability in the uplands of Lembang subwatershed, West Sumatra, Indonesia, in a changing natural resource management context

This paper analyzes livelihood change and livelihood sustainability of households in the upland part of the Lembang subwatershed, West Sumatra, in response to changes in the natural resource management context during the last decade. Using the sustainable livelihood framework (SLF), we measured livelihood changes at two separate points in time, 1996 and 2006, and assessed their environmental, economic, social, and institutional sustainability. We found that people with a low income had less access to capital assets than people from middle- and high-income groups. Our analysis revealed, however, that access to capital assets increased over time, and that poor households experienced economic improvement, indicating an overall increase in economic sustainability. Environmental sustainability, however, is threatened by intensive agricultural practices such as high agrochemical input and intensive soil tillage on steep slopes, leading to pollution and soil erosion. Social sustainability is also a matter of concern: while social exclusion has been reduced, income inequity has increased. Institutional sustainability is likely to remain uncertain, as local institutions for natural resource management are still weak, despite the fact that decentralization has been implemented during the last 8 years. External facilitation is needed to improve the livelihood of upland people while, at the same time, enhancing the sustainability of watershed management. Strengthening local institutions, conserving natural resources, and promoting environmentally sound agricultural practices are the three most important policies to be promoted within the watershed.     

On accounting for sustainable development and accounting for the environment

Economic sustainability or intergenerational equity entails maintaining social well-being by decisions about investments in different types of assets. Under certain conditions, consumption can be sustained by depleting resources, or various kinds of natural capital, while building up other kinds of capital. Theoretically, the choices involve the use of a set of accounting prices. The question becomes one of finding and implementing accounting prices that express the roles of the various capital goods in achieving the objective of the economy.Hartwick's rule holds that an economy can be sustained if the value of the total, net investment in the economy, evaluated at those accounting prices, is zero. The rule applies to a special, abstract economic model which expresses a social objective different from the discounted-utilitarian objective on which national accounting is based. Different objectives give rise to different accounting prices. Because the prices may not be right, the zero net-investment rule using available national-accounting prices cannot generate a condition for sustaining an economy.Still, environmental accounting is a tool which, used prudently, can make an important contribution to social decision-making. This paper expands upon these ideas by discussing the incorporation of natural resource and intangible environmental costs and benefits into green accounting at the firm as well as the economy level. Common techniques of mine valuation and standard corporate accounting are the bases for this extension to the valuation of and accounting for decisions concerning the environment.     

Mining investment and regional development: A scenario-based assessment for Northern Sweden

The way in which mineral development contributes to economic development in the region where it takes place is important for the mining industry’s relations to the local community. The purpose of this paper is to provide an assessment of the regional-economic impacts of a large-scale contemporary iron ore project in Northern Sweden (including two new mines, two processing plants, and one pellet plant). The regional input-output model rAps, provided by the Swedish government agency NUTEK is used, and it explicitly addresses the linkages between demographic development, the labour market, industrial production and the municipal finances in a consistent modelling framework. The simulation results suggest an average employment multiplier of about 2-2.5 during the maximum production phase, indicating that for every 100 jobs in mining about 100-150 jobs are supported elsewhere in the local economy. The positive impacts in this case are made possible in large because of the existing mining cluster and local suppliers in northern Sweden. Still, these results are perhaps best viewed as an indication of the potential for local economic development as they neglect, for instance, potential supply constraints (e.g., attracting the necessary labour force, road infrastructure, etc.). Specific policies to further strengthen the regional linkage effects may therefore be necessary in order for this potential to be realized in practice, and attention would preferably be paid to policy measures that have positive external spillover effects on the surrounding geographical area.     

Measuring forest ecosystem sustainability: A resource accounting approach

A new environmental paradigm has emerged, reflecting a change in the public's understanding of resource sustainability. Forest policy makers need to be better informed about such changes to achieve economic, social, and environmental objectives in a manner that balances human needs and aspirations with ecosystem constraints. As an aid to this task, a forest resource accounting system based on the key concept of natural capital could help reshape forest policies to provide an even wider spectrum of benefits for both present and future generations by maintaining and enhancing the productive capacity of forest capital. Such a resource accounting system would provide a tool for integrating multidimensional information requirements in measuring the health of both forest ecosystems and economic systems. This paper outlines some of the features of this accounting system and proposes and framework that would integrate economic and ecological characteristics of natural resources. Forest resource accounting is urgently needed to achieve the sustainability goals of ecosystem management.     

Applying the principle of sustainability to coastal sand mining: The case of Pakiri-Mangawhai Beach,New Zealand

The purpose of New Zealand's Resource Management Act (1991) is to promote the sustainable management of natural and physical resources. Coastal sand mining may be consistent with this purpose where: (1) extractions occur from sediment systems open to inputs of sediment, and the volumes extracted do not limit the natural development, physical characteristics, and ecological diversity of the coastal environments affected; or (2) extractions from palimpsest or relict sedimentary deposits occur at a rate where the rate of extraction is insignificant compared with the volume of the resource. The response of coastal sand mining companies and consent-granting authorities to the requirements of the Resource Management Act (1991) are examined with respect to recent applications to mine sand from a coastal sand body in the Hauraki Gulf, New Zealand. The assessments of environmental effects (AEE) submitted in support of these applications do not establish the sustainability of the sand mining operations. Specifically they do not define the dimensions of the active sediment system, quantify the volume of the related resource, or state the period within which sustainability is achievable. Further, the AEE do not consider the cumulative effects of the extractions, either in terms of the total volume of sand mined or the cumulative effects of different anthropogenic activities. The test of sustainability demands a quality of information and understanding of coastal systems that is well beyond that obtained in the past or accepted at present. There is a clear need for New Zealand's resource management legislation to be supplemented by technical guidelines that help ensure the test of sustainability is rigorously applied.     

Emergy analysis of municipal wastewater treatment and generation of electricity by digestion of sewage sludge

This study examines and evaluates, by using emergy analysis, the use of environmental resources for wastewater treatment in a Swedish town. Emergy analysis was applied, while it facilitates the comparison of resource use of substantially different kind. In the emergy analysis, all resources are assessed on the basis of the amount of direct and indirect solar energy required in their generation. The study also includes an evaluation of the amount of emergy associated with the production of wastewater. On the basis of our analysis, we suggest that the large amount of emergy that wastewater contains are in proportion to the amount of resources employed for wastewater treatment and the extensive effects on surrounding ecosystems of discharge of untreated wastewater. The use of local renewable natural resources in Swedish municipal wastewater treatment systems is negligible compared with the use of purchased inputs, processed largely with the support of fossil energy. A drastic shift of this order would demand that extensive land areas surrounding human settlements be (indirectly or directly) devoted to wastewater treatment. These areas are not accessible today. Our analysis also indicates that resource requirements from the economy in the production of electricity by the digestion of sewage sludge is about two times the total resource use for generation of the average mix of electricity used in the town. We, therefore, conclude that if the only reason to digest the sludge were to produce electricity, it would be more resource-efficient to purchase the electricity on the Swedish distribution net. Accordingly, there is no resource economy in producing biomass to digest just to increase the energy production at the wastewater treatment plant.     

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.     

Contrasting community and corporate perceptions of sustainability: A case study within the platinum mining region of South Africa

The concept of sustainable development is debatable within the mining context as the fact that mineral resources are non-renewable makes mining inherently unsustainable. The need for a realistic definition of sustainability that can be applied to mining is important, in light of claims by the industry that sustainable development principles underpin aspects of their operations. Furthermore, the socio-economic upliftment that should logically follow the implementation of these principles is not visible in many mining areas. Within the theoretical frameworks of intermediate sustainability, our study aimed to determine the level of sustainability that is appropriate for the mining context. The evaluation of community perspectives within the Rustenburg platinum region in South Africa as a case study, based on qualitative information derived from structured questionnaires and informal interviews brings further clarity. We found out that the environmental and social costs associated with mining were high, while economic benefits to surrounding communities were low. The perceptions of community and corporations were found to contrast sharply: the reality experienced by community members fell well short of the optimistic scenarios presented in the corporate social responsibility reports of the mining companies, which has implications for the mining industry in the area. The Rustenburg region is typical of mining areas, more especially the developing world, and application of a realistic sustainable development concept here can help the mining industry elsewhere to move its operations onto a genuinely more sustainable path.     

A normative strategy for sustainable resource choice and recycling

A normative strategy is proposed for resource choice and recycling to meet the criterion of sustainability, defined as near constancy of natural resources. In this strategy resource choice should be fitted to the fate of products and product wastes, with geochemically scarce virtually non-renewable resources being reserved for uses that allow for nearly 100% recycling and negligible loss of irretrievable material and material deterioration. Sustainable recycling is argued to be strongly dependent on product design that slows loss of quality by products and materials. Recycling processes should aim at quality conservation by cascading. Non-product and recycling outputs should match with required inputs into the economy. Finally technologies should be employed that prevent the build-up of contaminants in products. Examples are given of the ways in which elements of this normative strategy may be implemented. Internalisation of currently external costs will strongly favour the proposed strategy.     

Chinese resource security policies and the restructuring of the Asia-Pacific iron ore market

This paper reviews the restructuring of the Asia-Pacific iron ore market in the wake of the rise of the Chinese steel industry. Prior to the 2000s, this market was characterised by two key features—high firm-level concentration on both the producer and consumer sides, and price determination through annually negotiated benchmark pricing between Australian mining and Japanese steel firms. However, owing to rapid growth in the Chinese steel industry and its emergence as the region's principal iron ore consumer, the Asia-Pacific iron ore market has been dramatically restructured during the last decade. This process has been accelerated since 2005 by Chinese governmental resource security policies, which have sought to address current record high iron ore prices through the use of foreign investment to sponsor new market entrants and the formation of an import cartel amongst the Chinese steel firms. This paper evaluates how these policies have driven restructuring in the Asia-Pacific iron ore market, through an analysis of the growth of China's steel industry, Chinese resource security policies aimed at lowering iron ore import costs, and their effects upon the regional market's ownership structure and price determination mechanisms. It argues that while Chinese investment and cartelisation policies have catalysed significant changes to the ownership and pricing structures of the Asia-Pacific iron ore market, they have carried only mixed benefits for the Chinese steel industry's resource security.     

Reconciling people's livelihoods and environmental conservation in the rural landscapes in Kenya: Opportunities and challenges in the Amboseli landscapes

Two of the eight Millennium Development Goals (MDGs) adopted by the United Nations General Assembly in September 2000 are: eradication of extreme poverty and hunger; and ensuring environmental sustainability. The link between depressed livelihoods and unsustainable use of land and natural resources can be seen in Kenyan rangelands. Here, the local community is dependent on land and its resources for livelihoods, but the demand and competition is increasing, endangering both the resources they depend on and threatening environmental health. Amboseli is an Arid and Semi-Arid Land (ASAL) area that experiences ecological constraints, resource limitations, and low economic investment. Local communities in such landscapes are resource-dependent for their daily livelihoods, and have few socio-economic opportunities. Pastoralism, which is the main source of their wealth, continues to decline and exploitation by a few local elites and poor local leadership further depresses livelihoods. Other challenges to these poor rural landscapes are increasing human population which increases demands on natural resources and environment; persistent hunger; low universal primary education; poor gender equality and empowerment of women; environmental degradation; and lack of local and global partnership for development. This paper focuses on the two Millennium Development Goals mentioned above. Linkages, challenges and opportunities in enhancing rural livelihoods while promoting environmental sustainability in rural landscapes of the Amboseli Rural Landscape are discussed.     

Commodity booms and their impacts on the Western Australian economy: The iron ore case

Western Australia is a resource-rich province. Since the 1890s, resources booms have played a key role in the development of the state's economy. In the last few years, Western Australia's resources industry has continued to enjoy exceptional conditions created by strong international demand for commodities. This paper aims to examine the likely impact of this commodity boom in the iron ore sector on the Western Australian economy, using a general equilibrium approach. The modeling results indicate that the Western Australian economy will benefit from the expansion in iron ore exports and investment in terms of rising consumption and employment, although at the industry level there will be losers as well as winners.     

Capital structure and asset utilization: the case of resource intensive industries

This research studies the relationship between the capital structure of a firm and its asset utilization rate in resource intensive industries. We study this issue from both private and public policy perspectives. From a private perspective, it's conceivable that a positive relationship may exist because a company is trying to increase its use of debt to effect a more efficient utilization of its assets. However, from a public policy perspective, finding a positive relationship between asset utilization and debt levels in natural resource sensitive industries may signal a sub-optimal exploitation of natural resources when debt levels rise. This research examines measures of leverage and asset utilization in firms from the mining, oil, and timber industries to determine whether the behavior alleged in the PALCO/MAXXAM case (an increased cutting rate to pay off junk bond financing) has been observed more systematically. We observe a positive relationship between leverage and asset utilization in all three industries when leverage is calculated using book value measures. When market value measures are used, this positive relationship no longer holds in the mining industry. Possible explanations for these results are offered.     

Pashmina production and socio‐economic changes in the Indian Changthang: Implications for natural resource management

A unique pastoral community uses the arid rangelands of eastern Ladakh, known as Changthang, northern India. The nomadic people rear a variety of livestock such as sheep, goats, horses and yaks, which provide them with various goods and services. Nevertheless, the needs and aspirations of the people are changing. There is a trend towards increasing the livestock population, especially of a breed of goat that produces one of the finest natural fibres: Pashmina, which is the mainstay of their economy. This increase in goat population, however, is jeopardising the long‐term survival of the wild herbivores in the region, and as such is not sustainable. We present information on the current trends in socio‐economy, Pashmina production, wildlife conservation, and the conflicts of interest between wildlife and nomads in the region. On the basis of this information, we make suggestions for the conservation of natural resources in the region. We recommend preserving the historical societal norms and notions of the people, and capitalising on them to manage natural resources. We also recommend joint management of natural resources by the local people, State and non‐governmental organisations. Our findings provide a platform on which a grazing policy for the region may be formulated.     

Fostering Sustainability in Headwaters Country: Using Bioregional and Social Capital Strategies in Support of Sustainability

Many of Canada's ex-urban and rural areas face a daunting array of sustainability challenges. In developing effective sustainability strategies, these areas must rely heavily upon local resources and capacities and existing social capital. Part of the solution for these areas may lie in multi-stakeholder collaborative approaches built on sustainability principles and strategies. These include the engagement and mobilization of civil society networks; the cultivation of strategic partnerships among key stakeholders in civil society, the private sector and government; and long-term local programmes of research, education and advocacy that are supportive of sustainability. This article describes and analyses a Canadian case study—Dufferin County, part of the Headwaters Country region in southern Ontario—in which a multi-stakeholder, civil society based approach to fostering sustainability is currently unfolding. The ideological and theoretical underpinnings of the initiative are explored, key process-oriented and substantive challenges to the approach are analysed and action research strategies are discussed.     

地方“资源诅咒”与“生态赤字”的经济学分析——以“榆林市”等资源型城市为例

我国陕西省榆林市、甘肃省白银市、辽宁省抚顺市及四川省古蔺县等地区,依托丰富的铜、煤炭、天然气等矿产资源带动了当地经济的快速发展。然而,对资源的过度依赖和开发,使地方经济无可回避地面临"资源诅咒"和"生态赤字"问题。本文在界定"资源诅咒"和"生态赤字"概念,及其产生的经济学根源的基础上,对"榆林市"、"白银市"等典型资源型城市的"生态赤字"现状予以分析,提出基于"3E系统模型"视角下,解决资源型城市"资源诅咒"和"生态赤字"问题,实现地方经济可持续发展的路径选择。     

The Wild Kangaroo Industry: Developing the Potential for Sustainability

Wildlife resources the world over have long been subject to harvest and management. As wildlife uses have grown, so too have the need and desire to ensure their sustainability. This new context of sustainability presents opportunities to merge ecological, economic and social elements to foster development. This paper presents the management and harvesting of wild kangaroos as an example of the potentially sustainable use of a natural resource. Some comparisons are drawn between the use of other wild living resources, deer in Europe and crayfish in Western Australia. However, sustainability of kangaroo species and the industry is not just a matter of market economics and ecology, it must also be socially sustainable. The public policy instrument of a statutory advisory board with a marketing function is proposed in order to integrate the cultural and social aspects of kangaroo management with the economic and ecological aspects. Through such integration, full sustainability of a wild resource then might be achieved.     

Using the multiple capitals framework to connect indicators of regional cumulative impacts of mining and pastoralism in the Murray Darling Basin,Australia

It is commonly recognized that there are constraints to successful regional-scale assessment and monitoring of cumulative impacts because of challenges in the selection of coherent and measurable indicators of the effects. It has also been sensibly declared that the connections between components in a region are as important as the state of the elements themselves. These have previously been termed “linked” cumulative impacts/effects. These connections can be difficult to discern because of a complicated set of interactions and unexpected linkages. In this paper we diagnose that a significant cause of these constraints is the selection of indicators without due regard for their inter-relationships in the formulation of the indicator set. The paper examines whether the common “forms of capital”, i.e., natural (renewable and non-renewable), manufactured, social, human and financial capitals, framework is a potential organizing structure. We examine a large region in western NSW Australia where the predominant production systems are mining and grazing for production of wool, beef and lamb. Production in both is driven by consumption of a non-renewable resource, i.e., ore for mining and topsoil for grazing, the latter on the basis that loss rate estimates far exceed soil formation rates. We propose that the challenge of identifying connections of components within and between capital stores can be approached by explicitly separating stores of capital and the flows of capital between stores and between elements within stores, so-called capital fluxes. We attempt to acquire data from public sources for both capital stores and fluxes. The question of whether these data are a sufficient base for regional assessment, with particular reference to connections, is discussed. The well-described challenge of a comparative common currency for stores and fluxes is also discussed. We conclude that the data acquisition is relatively successful for stores and fluxes. A number of linked impacts are identified and discussed. The potential use of money as the common currency for stores and fluxes of capital is considered. The basic proposition is that replacement or preservation costs be used for this. We conclude that the study is sufficiently positive to consider further research in fully-coupled models of capital stores and fluxes.