Balancing environmental and industry sustainability: A case study of the US gold mining industry

Mandatory insurance requirements and/or mitigation fees (royalties) for mining companies may help reduce environmental risk exposure for the federal government. Mining is examined since the Environmental Protection Agency (EPA) Toxic Release Inventory reveals that this sector produces more hazardous waste than any other industrial sector. Although uncommon, environmental expense can exceed hundreds of millions of dollars per development. Of particular concern is the potential for mines to become unfunded Superfund sites. Monte Carlo simulation of risk exposure is used to establish a plausible range of unfunded federal liabilities associated with cyanide-leach gold mining. A model is developed to assess these costs and their impact on both the federal budget and corporate profitability (i.e., industry sustainability), particularly if such costs are borne by offending firms.     

Global sustainability: Toward definition

Sustainability is increasingly viewed as a desired goal of development and environmental management. This term has been used in numerous disciplines and in a variety of contexts, ranging from the concept of maximum sustainable yield in forestry and fisheries management to the vision of a sustainable society with a steady-state economy. The meaning of the term is strongly dependent on the context in which it is applied and on whether its use is based on a social, economic, or ecological perspective, Sustainability may be defined broadly or narrowly, but a useful definition must specify explicitly the context as well as the temporal and spatial scales being considered. Although societies differ in their conceptualizations of sustainability, indefinite human survival on a global scale requires certain basic support systems, which can be maintained only with a healthy environment and a stable human population. A clearer understanding of global sustainability and the development of appropriate indicators of the status of basic support systems would provide a useful framework for policy making.     

Global sustainability: Toward measurement

The widespread interest in the concept of sustainable environment and development has been accompanied by the need to develop useful systems of measurement. We discuss the use of indicators which might be used to assess such conditions. Our characteristics, or criteria, for desirable global sustainability indicators are:

sensitivity to change in time

sensitivity to change across space or within groups

predictive ability

availability of reference or threshold values

ability to measure reversibility or controllability

appropriate data transformation

integrative ability

relative ease of collection and use

We discuss the basis of these characteristics, and examine two categories of indicators (soil erosion and population) and two specific indicators (physical quality of life index and energy imports as a percentage of consumption) for their value as sustainability measures.     

South African gold mining taxation : An example of a resource rent tax

Theoretically, a resource rent tax is neutral in that it does not influence the allocation of resources. However, the application of such fundamental principles in the tax formula of the South African gold mining industry negates the neutrality principle. A progressive element in the tax rate encourages mining of submarginal ores - leads to misallocation of resources. However, it substantially reduces the financial risks of a mining company engaged in the extraction of a commodity characterized by price volability, such as gold, and permits economies of scale in mining and encourages conservation of a non-renewable resource. As long as prices increase faster than costs, the advantages of this system probably exceed the disadvantages. The choice of the threshold rate in such a tax system is critical. If it is too high it will encourage mining of submarginal ores, and if too low it does not recognize the peculiar risks of gold mining investments.     

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.     

Technology,managerial, and policy initiatives for improving environmental performance in small-scale gold mining industry

This paper reviews a series of strategies for improving environmental performance in the small-scale gold mining industry. Although conditions vary regionally, few regulations and policies exist specifically for small-scale gold mining activity. Furthermore, because environmental awareness is low in most developing countries, sites typically feature rudimentary technologies and poor management practices. A combination of policy-, managerial- and technology-related initiatives is needed to facilitate environmental improvement in the industry. Following a broad overview of these initiatives, a recommended strategy is put forth for governments keen on improving the environmental conditions of resident small-scale gold mines.     

Health and environmental assessment of mercury exposure in a gold mining community in Western Mindanao, Philippines

The small-scale gold mining activities using mercury began in the late 1980s in Sibutad, Western Mindanao. It is located very near the Murcielagos Bay with tailing ponds directly discharging into bodies of water. This cross-sectional study aimed to determine the health and environmental effects of gold mining activities on the community. Residents were randomly selected and classified into two groups, namely, the directly exposed and indirectly exposed populations using a set inclusion criteria. Complete medical and laboratory examinations were performed. Environmental and biologic samples were collected for total mercury and methylmercury determinations. The results showed that the directly exposed group had significantly higher mean blood total mercury and methylmercury levels in comparison with the indirectly exposed population. Although there were no significant differences between hair total mercury and methylmercury levels, there was a trend for higher levels of these biomarkers among the directly exposed residents as compared with the unexposed group. The absence of statistically significant differences may be attributable to the small sample size. Ambient air quality monitoring for mercury exceeded the allowable levels. However, levels of mercury in drinking water and sediments were within allowable limits. Frequency of gastrointestinal complaints was significantly associated with elevated hair methylmercury levels (p=0.02). Also, there appears to be a trend towards higher blood total mercury levels and frequency of gastrointestinal complaints (p=0.09). An interesting finding in this study was the increasing incidence of elevated diastolic blood pressure with elevated hair total mercury levels (p=0.07). Mercury storage at home is a risk factor.     

Learning for sustainability: participatory resource management in Cambodian fishing villages

Considerable attention is now being given to the role and importance of education and learning implications of participatory resource and environmental governance. The contention is that such learning has the potential to transform behaviour, and in the case of resource management, may help change current patterns in resource use towards a more sustainable social-ecological system. Our purpose is to establish the opportunities for learning afforded to those participating in local level resource management committees in two Cambodian fishing communities and consider the learning outcomes from such opportunities. Our approach was qualitative and used a case study design. The findings establish a wide range of committee resource management activities that resulted in both instrumental (e.g., learning about administrative procedures) and communicative (e.g., insights into the need to conserve mangroves) learning. It was revealed that such learning can lead to changes in behaviour at the community level (e.g., managing local waste). Our findings also indicated a number of motivators and enablers of learning such as opportunities for dialogue, leadership and the presence of declining resources.     

Observations on enviironmental sustainability, environmental politics and environmental diplomacy

Some time ago I was invited to an international meeting concerned with water management issues in a particular region, the boundaries of which had been clearly defined by its climatic gradients. Combined with another event, that meeting was attended not only by the participants from the region but also by delegates representing states located far from its climatic and ecological boundaries. Instead of playing the role of silent listeners, delegates from distant regions took the floor, presenting their official national statements and expressing their interest and right, to participate in the programme. Such statements were made before any technical and ecological aspects had been explained or the outlines of the proposed programme made clear .     

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.     

Emerging trends in mining industry partnerships

The article analyzes mining company partnerships in terms of four main counterparts, namely: the sovereign, owners and financial backers, the workforce, and local communities. The main characteristics of mining partnerships under the four aspects are discussed. Taxation and financial aspects are also considered. Case studies from the British coal industry and examples from Latin America are part of the article. Downsizing and labour relations are also discussed, as well as indigenous peoples' issues. The article concludes that, successful minerals companies in the future will be those that work with communities, applying the highest standards of social responsibility. This includes safety, environmental management and good business ethics.     

The public good dilemma of a non-renewable common resource: A look at the facts of artisanal gold mining

Millions of people worldwide are involved in artisanal and small-scale gold mining. Many of them live in conditions of poverty and insalubrities due to the mercury amalgamation of gold and the application of other rudimentary techniques. In spite of this, the sector has been nearly overlooked by resource economists. In this paper we analyze the sector based on a survey of the existing literature. We find some commonalities of artisanal and small-scale gold mining in different countries of the developing world as follows: low levels of mechanization and technology, labor intensiveness, low awareness of environmental degradation, poor training, high transience among some miners, and lack of financial savings. Moreover, with these commonalities in mind, we present some topics and challenges for a research agenda in the field of environmental, ecological, and development economics.     

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.     

Enduring decisions: Evaluating environmental impacts for sustainability planning

This paper aims to establish a framework in which potential methods for evaluating environmental impacts can be considered, with particular reference to the UK planning system. To do this a number of complementary ways of conceptualising sustainable development and making it more practical are outlined. Some basic arguments about the meaning of sustainability are reviewed; and some common misconceptions about the concept exposed. The concept of sustainability constraints is outlined and a functional distinction between quantitative and qualitative constraints is proposed. The adoption of sustainability constraints based on measures of environmental capacity is proposed. These suggest significant reductions in consumption of most environmental resources. The efficiency and sufficiency strategies that would be needed to meet the proposed quantified constraints are outlined. In conclusion, evaluation processes and indicators of sustainability, including environmental foot-printing and environmental impact assessment, are discussed, offering some pointers towards the type of measures that will be needed to help implement sustainability strategies.     

Surface iron ore mining in eastern India and local level sustainability

Mining often brings certain irreversible changes to the surrounding environment. Different types of natural resources mostly surround the mines. Degradation of natural resources around the active mining zone may adversely affect the local economy. After cessation of mining operations local people may no longer be able to sustain their livelihood from the surrounding degraded natural resource; there are chances that the economy of the region will be shattered. The paper deals with this problem of local level sustainability of iron ore mining in eastern India. This problem is examined in the light of different theories of sustainability and national policies. By using household survey data, sustainability of iron ore mining in this region is tested. Substitution of depleting natural capital with other forms of capital can promote long-term sustainability of the local economy. This necessitates certain policy interventions to induce the mine operators to reinvest some part of their resource rent in the natural capital of the region.     

Back-alley sustainability and the role of environmental education

Environmental education can be a catalyst for sustainable development in local communities as long as it is recognised that communities have different challenges and needs. From a perspective of social change and sustainable development, environmental education can be broadly defined as the process that enables students and teachers to participate in the planning, implementation, and evaluation of educational activities aimed at resolving an environmental issue that they themselves have identified. What an 'environmental issue' is, then, depends on the perceptions and earlier experiences of the learner as well as the context in which education takes place. An illustration of such a participatory approach to environmental education is provided by the case of Pistons Middle School in Detroit, Michigan where teachers, students and outside facilitators combined action research and community problem solving.     

Transforming open mining pits into fish farms: Moving towards sustainability

The legacy of mining activities has typically been land ‘returned to wildlife’, or, at some sites, degraded to such an extent that it is unsuitable for any alternate use. Progress towards sustainability is made when value is added in terms of the ecological, social and economic well‐being of the community. In keeping with the principles of sustainable development, the innovative use of flooded open pits and tailings impoundments as commercial, recreational or ornamental fish farms should be considered in some locations, as it could make a significant contribution to the social equity, economic vitality and environmental integrity of mining communities. This article highlights the growing significance of aquaculture and explores the benefits and barriers to transforming flooded pits and impoundments into aquaculture operations. Among other benefits, aquaculture may provide a much‐needed source of revenue, employment and, in some cases, food to communities impacted by mine closure. Further, aquaculture in a controlled closed environment may be more acceptable to critics of fish farming who are concerned about fish escapes and viral transmissions to wild populations. Despite the potential benefits, aquaculture in flooded pits and impoundments is not without its complications — it requires a site‐specific design approach that must consider issues ranging from metals uptake by fish, to the long‐term viability of the aquatic system as fish habitat, to the overall contribution of aquaculture to sustainability.     

Community-company relations in gold mining in Ghana

As a result of Structural Adjustment Programme from the 1980s, many developing countries have experienced an increase in resource extraction activities by international and transnational corporations. The work reported here examines the perceived impacts of gold mining at the community level in the Wassa West District of Ghana, Africa and discusses those perceived impacts in the context of globalization processes and growing multinational corporate interest in Corporate Social Responsibility (CSR). Interview data compared community members' perceptions with those of company representatives in three communities. The results indicate that communities held companies responsible for a series of economic, social, and environmental changes. While recognizing some of the benefits brought by the mines, communities felt that the companies did not live up to their responsibility to support local development. Companies responded by denying, dismissing concerns, or shifting blame. Findings from this work show that lack of engagement and action by government agencies at all levels resulted in companies acting in a surrogate governmental capacity. In such situations, managing expectations is key to community-company relations.     

Economic sustainability and the preservation of environmental assets

The core requirement of sustainability is that current economic activities should not result in an excessive burden on future generations. This criterion is general enough to imply different decision rules for the preservation of environmental assets. Neoclassical economics does not have a sustainability criterion for environmental assets independent of the intertemporal efficiency criterion, which allocates environmental and man-made capital based on projected monetary benefits and costs. This criterion is examined in terms of the feasibility of valuing the benefits of environmental assets, the substitution possibilities between natural and man-made capital, and the ethical grounds for using efficiency as the sole determinant of the allocation of environmental assets. An alternative ecological sustainability criterion is the preservation of safe minimum levels of environmental assets in physical terms rather than the dollar value of a composite of natural and man-made capital. Safe minimum standards for environmental assets constrain the efficiency criterion in order to ensure the sustainability of economic systems. It is argued that the ecological approach to sustainability should limit the economic approach for decisions involving the allocation of environmental assets.     

Green accounting and sustainability of the Peruvian metal mining sector

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