THE ECONOMICS OF DEEP SEA NODULES: AN APPRAISAL OF RECENT ESTIMATES

The metal resources of deep sea nodules are attracting investment from many international corporations. Commercial interest in nodule mining is related to, but not governed by, existing estimates of economic profitability of the first generation ventures. Mr. Chacko reviews some of the latest published figures on costs and revenues, and these are updated and put on a comparable basis. He then argues that more attention should be paid to the long-term objectives of corporate policy in analysing the future development of the nodule mining industry.     

Mining economics and the environment

A mining operation can affect the environment adversely and create costs to others that are external to the mining firm, if no constraints are imposed. To deal with this problem of externalities, various regulatory steps can be taken, eg effluent taxation, subsidies, regulation of emissions by command, and use of emission permits that are tradeable. Bargaining between the polluter and the damaged party over the level of production and compensation remains a more theoretical option. Regardless of what regulatory approach is adopted to transform external costs into internal costs, the resulting higher costs will have an impact on the decisions of a mining firm. Information processes, traditionally focused on finding deposits, have now been broadened to include an environmental dimension. Operating practices can be modified to reflect the need for stable long-term solutions of waste disposal problems. On the industry level, environmental regulation may lead to sterilization of resources, to higher prices for some commodities and to distortions of competitiveness among commodity producing countries.     

Economic liberalisation, innovation, and technology transfer: opportunities for cleaner production in the minerals industry

The liberalisation of investment regimes for mining over the past decade is encouraging an inflow of foreign investment for mining and mineral processing projects in developing and former centrally-planned economies. This new investment is occurring at a time of technological change within the international mining industry as market and regulatory pressures lead the most dynamic firms to invest in the development or acquisition of new technologies and management practices. The effective transfer and assimilation of these technologies enable mining companies to combine gains in productivity with improvements in environmental management. Joint ventures and other strategic alliances between inwardly investing firms and the newly privatised or remnant state-owned mining enterprises may provide an effective vehicle for the transfer of the techniques for more productive and cleaner operations. Specific examples of innovative process and remediation technologies are analysed and it is suggested that the ability of innovative technologies to improve competitiveness and sustain best-practice environmental management in the recipient is linked to the transfer and effective acquisition of the capacity to manage the complex processes of technological and organisational change. The paper closes with some recommendations for further research directed towards a systematic examination of this hypothesis.     

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.     

Small-scale mining in Ghana: The government and the galamsey

This paper argues that the current formalization system for small-scale gold miners in Ghana has been undermined and the small-scale mining laws no longer capture the reality of the sector’s activities. The paper will examine the small-scale mining system and shows that registered and unregistered actors operate not only in parallel but are actually intertwined and highly dependent on one another. The paper shows that the perceived dichotomy of formal and informal actors in the sector does not actually exist. The sector has instead evolved into a highly intertwined group of semi-formal sectors operating with varying degrees of legal registrations. The paper concludes that political leniency and law enforcement corruption has resulted in a booming small-scale gold system under poor government control. The paper recommends that politicians move to enact reforms to regularize the small-scale mining sector and curtail ubiquitous environmental and occupational safety problems. Anti-corruption initiatives and law enforcement reforms are the most urgent. However, reforming the laws is also necessary to capture and regulate the technological innovations the sector is currently using.     

The stone forum: Implementing a consensus building methodology to address impacts associated with small mining and quarry operations

Small-scale mining, including quarry operations, continues to play an important social and economic role in hundreds of communities throughout Brazil. Often operating outside the formal economy, conflicts between the owners of small-scale mining operations, the mineworkers, various government agencies, and other stakeholders have contributed to the progressive degradation of the environment, poor health and safety standards, and low productivity. The Centre for Mineral Technology (CETEM) of Brazil is implementing a consensus building methodology in order to produce dimension stone by small-scale miners on a more sustainable basis in the Pádua region, located in the northwest of the State of Rio de Janeiro. The approach being used by CETEM is based on its own experience in working with gold prospectors in the Amazon, and lessons and experiences learned from Canadian officials and industry representatives. The lessons and insights gained from this project may prove to be useful to those involved in addressing similar problems elsewhere in Brazil, South America and around the world.     

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.     

Bolivia's strategy for restructuring the state's mining sector and promoting private investment in mining

Bolivia is a country of great mineral wealth with known reserves estimated to be worth over US$7 billion. Despite this great potential wealth, in the early 1980s the mining industry of Bolivia found itself in a crisis characterized by excessive state intervention in the industry, a financially troubled state mining company, large areas of the country off-limits to mineral development, an irrational tax system which discouraged mining and labour unrest. To deal with these problems, the government decided to restructure the mining industry so as to encourage private participation. This paper describes the policies introduced to revitalize the mining industry as well as projections of what the future benefits would be to the country if those policies are successful in achieving their objectives.     

The challenges of sustainability in mining regions: The coal mining region of Santa Catarina, Brazil

Throughout history, mining communities have invariably found themselves striving for a good quality of life and a long‐term future. In the 21st century, problems of maintaining the economic vitality of mining regions are now compounded by concerns about the biophysical integrity of the local environment. In regions of the world where the economic viability of the resource is marginal and achieving a reasonable quality of life is a daily struggle, sustainable mining may seem to be a dubious prospect at best. Yet the twin imperatives of global political forces and burgeoning environmental concerns are requiring industry, governments and other interests to re‐conceptualize the way in which mining takes place in communities. Although mining itself may not be seen as an industry that contributes to the achievement of environmental objectives, it could — with careful planning — be used as a tool to foster a more sustainable and healthier community. This argument is considered in the context of the coal mining region of Santa Catarina, Brazil.     

Urbanization and mining: a case study of Michigan

The US mining industry is increasingly an industry of industrial and construction minerals production. In 2002, these types of minerals accounted for 80% of the value of non-fuel minerals produced in the USA. Industrial and construction mineral production tend to be smaller operations and nearer urban areas than metallic mining and have somewhat different problems. This paper is a study of the growing impact of urbanization and land-use fragmentation on mining, particularly industrial and construction minerals production. An analysis of the state of Michigan is used as a case study to present the issues and concerns.     

South African mining equipment and specialist services: Technological capacity,export performance and policy

South Africa has developed a technologically sophisticated and globally competitive mining equipment and specialist services sector. The paper provides evidence for and measurement of technological competency and global competitiveness and a brief outline of why South Africa was successful in this regard. While there are significant prospects for future growth, there are, at the same time, a number of constraints and South Africa is becoming a less advantageous site for both production and for innovation. Current government policy does not address these constraints and the sector does not feature in government’s vision for industrial or technology development. An alternative approach is proposed whereby the constraints are addressed and the companies supplying the mining sector that have sophisticated technological competencies are encouraged to spread “laterally” into new products and new global markets. By way of conclusion, the importance of this sector in developing countries where mining plays a major role is outlined.     

浅析采煤塌陷区生态修复管理机制的完善

采煤塌陷区的生态环境治理是生态环境保护的一项重要内容。当前,采煤塌陷区所在的地方政府已经采取了相关的生态修复措施,并建立了相应的管理机构,有了一定的法制建设进展。但与采煤塌陷区生态修复相关的管理机制尚存在不足,诸如管理主体欠缺、管理体制不顺、法治不健全等问题普遍存在。因此,需要在环境管理转型的要求下进一步完善。     

Coltan from Central Africa,international trade and implications for any certification

The exploitation of coltan in Central Africa can be considered a case of conflict minerals due to its nature. Many international organizations and bodies, national governments and private sector organizations seek to address this conflict, in particular via transparency, certification and accountability along the material supply chain. This paper analyses the international trade dimension of coltan and gives evidence on the dimension of illicit trade of coltan. The authors start from the hypothesis that illicit trade of coltan sooner or later will enter the market and will be reflected in the statistics. The paper is structured in the following manner: first, a short section gives a profile of coltan production and markets; second, an overview of the mining situation in the Democratic Republic of Congo (DRC) and related actors. The third section addresses mechanisms, actors and measurement issues involved in the international trade of coltan. The final part draws lessons for certification and conflict analysis and offers some guidance for future research.     

Designing of an environmental assessment algorithm for surface mining projects

This paper depicts the method used to quantify the environmental impact of mining activities in surface mine projects. The affected environment was broken down into thirteen components, such as Human health and immunity, Surface water, Air quality, etc. The effect of twenty impacting factors from the mining and milling activities was then calculated for each Environmental Component. Environmental assessments are often performed by using matrix methods in which one dimension of the matrix is the “Impacting Factor” and the other one is the “Environmental Components”. For the presented matrix method, each Impacting Factor was first given a magnitude between −10 and 10. These factors are used to set up a matrix named Impacting Factor Matrix, whose elements represent the Impacting Factor values. The effects of each Impacting Factor on each Environmental Component were then quantified by multiplying the Impacting Factor Matrix by Weighting Factor Matrix. The elements of the weighting factors matrix reflect the effects of each Impacting Factor on each Environmental Component. The outlined method was originally developed for a mining and milling operation in Iran, but it can successfully be used for mining ventures and more general industrial activities in other countries in accordance to their environmental regulations and laws.     

Optimization of mining by application of the equality principle

This paper shows how the equality principle can be applied to traditional mining activities as a theoretical economic basis for “environmentally friendly” waste management of natural resources. A cost structure is proposed to generally improve the exploitation of the natural resources and save energy due to the promotion of corporate economic incentives to a more cost-effective waste management related to these resources. The methodology proposed is based on the cost-benefit analysis concept. It employs the previously introduced equality principle and the model for Efficient Use of Resources for Optimal Production Economy (EUROPE) featuring shadow prices so as to optimize the mining slope and the ore-concentration when utilizing the resources of the rock and provide management with a one digit indicator of the performance of a certain mining activity to get in just once glance an instant comprehension of their mine's overall performance. This approach simultaneously improves the profitability, the technology used and the environment. A case study presents the practical application of the proposed theory on a Swedish copper mine. It is concluded that the presented methodology improves the exploitation of natural resources in mainly technological, economical and environmental terms. The methods that are developed are regarded as being suitable information support tools for decision-making in waste management and optimization of the exploitation of natural resources in the corporate and public context.     

构建与设计化学矿业可持续发展决策支持系统

本文讨论了化学矿业可持续发展的内涵和实现可持续发展战略的最佳技术手段之一,即建立化学矿业可持续发展空间决策支持系统的重要性,提出了化学矿业可持续发展决策支持系统的构建理论依据和方法,探讨了化学矿业可持续发展空间决策支持系统总体设计、系统分析的数学模型以及系统的方法库和模型库的设计。     

Environmental management of small-scale and artisanal mining: the Portovelo-Zaruma goldmining area,southern Ecuador

This paper considers technical measures and policy initiatives needed to improve environmental management in the Portovelo-Zaruma mining district of southern Ecuador. In this area, gold is mined by a large number of small-scale and artisanal operators, and discharges of cyanide and metal-laden tailings have had a severe impact on the shared Ecuadorian-Peruvian Puyango river system. It is shown to be technically possible to confine mining waste and tailings at a reasonable cost. However, the complex topography of the mining district forces tailings management to be communal, where all operators are connected to one central tailings impoundment. This, in turn, implies two things: (i) that a large number of operators must agree to pool resources to bring such a facility into reality; and (ii) that miners must move away from rudimentary operations that survive on a day-to-day basis, towards bigger, mechanized and longer-term sustainable operations that are based on proven ore reserves. It is deemed unlikely that existing environmental regulations and the provision of technical solutions will be sufficient to resolve the environmental problems. Important impediments relate to the limited financial resources available to each individual miner and the problems of pooling these resources, and to the fact that the main impacts of pollution are suffered downstream of the mining district and, hence, do not affect the miners themselves. Three policy measures are therefore suggested. First, the enforcement of existing regulations must be improved, and this may be achieved by the strengthening of the central authority charged with supervision and control of mining activities. Second, local government involvement and local public participation in environmental management needs to be promoted. Third, a clear policy should be defined which promotes the reorganisation of small operations into larger units that are strong enough to sustain rational exploration and environmental obligations. The case study suggests that mining policy in lesser-developed countries should develop to enable small-scale and artisanal miners to form entities that are of a sufficiently large scale to allow adequate and cost-effective environmental protection.     

Environmental management in mining and mineral processing in developing countries

This paper analyses some of the social, political and economic dimensions of the environmental behaviour of mining enterprises and governments in the context of evolving regulation, growing public concern and technological innovation. Contrary to the belief that a trade-off exists between production costs and environmental costs, which presupposes a static technology, new generations of technology offer improved economic and environmental efficiency. Technical change is therefore reducing both production and environmental costs. Because most planned mines and available reserves are in developing countries, situations may develop whereby technical change reduces that trade-off for them.     

Challenges to measuring,monitoring, and addressing the cumulative impacts of artisanal and small-scale gold mining in Ecuador

Portovelo-Zaruma, Ecuador is an artisanal and small-scale gold mining (ASGM) region with approximately 6000 gold miners working with mercury and cyanide. Although artisanal gold mining (AGM) has taken place in Portovelo-Zaruma for centuries, highly mechanized small-scale gold mining (SGM) processing plants capable of increased throughput began being built in the 1990s. While there are benefits associated with ASGM, there are also negative impacts experienced by the miners and the surrounding communities. To take advantage of ASGM as a poverty-alleviating mechanism while reducing unwanted externalities, the cumulative impacts must be understood. Numerous challenges to measuring, monitoring, and addressing ASGM impacts result from the complexity of the impacts themselves, the nature of the gold mining as an informal industry, and the shortfalls in the current regulatory framework. These are discussed in the context of ongoing, unresolved issues including efforts to address trans-boundary water pollution, management of mining waste, and conflicts regarding priorities, ambiguities, and enforcement of existing regulations and policies. Internationally, interventions to address both AGM and SGM impacts have typically focused almost exclusively on technological changes through the elimination of mercury use. Our analysis suggests that to better address ASGM and their cumulative impacts in Ecuador, it will be beneficial to revisit the legal definitions of AGM and SGM. Additionally, promotion of information-based strategies including educational outreach programs and cross-scale and cross-level mitigation methods may also be beneficial. The success of these strategies to reduce ASGM-related cumulative impacts will depend on sufficient funding and the commitment of stakeholders.     

Small-scale mining and its socio-economic impact in developing countries

This article examines both the positive and negative socio-economic impacts of small-scale mining in developing countries, and outlines some key measures for improving sustainability in the sector. It is important to clarify that, in spite of experiencing its share of environmental- and health-related problems that adversely impact human quality-of-life, small-scale mining plays a pivotal role in alleviating poverty in the developing world, and contributes significantly to national revenues and foreign exchange earnings. Though these important socio-economic contributions make small-scale mining an indispensable economic activity, there is an obvious need for improved sustainability in the industry, more specifically, for operations to resolve pressing problems, many of which have wide-ranging impacts. However, because most small-scale mines are low-tech and employ poorly trained uneducated people, it is difficult for the sector to improve on its own. Thus, governments and regional international bodies must play an expanded role in bridging critical information, techno-logic and economic gaps. It is concluded that governments and regional organizations could accomplish much in the way of improved sustainability in the small-scale mining industry by: (1) legalizing small-scale mining and implementing sector-specific legislation; (2) contributing to community development and providing increased economic support; and (3) providing training and educational assistance, and playing an expanded role in the dissemination and transfer of important technologies.