Financial assurance and mine closure: Stakeholder expectations and effects on operating decisions

Financial assurance is increasingly seen as a means to ensure orderly, clean and lasting closure of mines. Broadly interpreted, “closure” requires leaving viable ecosystems on mining lands that are compatible with a healthy environment and with human activities, that have low hazard, and that encompass measures to prevent ongoing pollution from the site in the long-term. Financial assurance encompasses environmental surety instruments that protect the government and public in the event a mining company cannot meet its reclamation or rehabilitation obligations. As such, financial assurance is in essence the money available for closure of the mine in the case when the mine owner is not available to perform the work. A general trend towards greater environmental concern among social stakeholders in mining further serves to focus attention on policies and practices that can actually “assure” financial assurance.Financial assurance is also perceived as a means to address closure-related challenges that are increasing in number as well as diversity. Notably, current trends involve a shift towards a greater focus to the societal aspects of mine closure rather than just the ecological. The use of financial assurance, however, also raises some fundamental questions about how assurance mechanisms influence mining operations and the relationship between mining operations and their surroundings. This paper examines both the internal effect of a variety of financial assurance approaches on mining operations—in particular the manner in which environmental and social concerns are addressed by mining firms, and the almost inevitable tension between some form of financial provision for closure on the one hand, and governmental expectations of tax revenue on the other. As a major argument for supporting the conduct of mining is that state revenues from the extractive industries supply monies for the building of human and infrastructural capital, this second area of tension also has strong social and developmental overtones.     

Resources policy and mine closure in South Africa: The case of the Free State Goldfields

There is increasing international pressure to ensure that mining development is aligned with local and national development objectives. In South Africa, legislation requires mining companies to produce Social and Labour Plans, which are aimed at addressing local developmental concerns. Against the background of the new mining legislation in South Africa, this paper evaluates attempts to address mine downscaling in the Free State Goldfields over the past two decades. The analysis shows that despite an improved legislative environment, the outcomes in respect of integrated planning are disappointing, owing mainly to a lack of trust and government incapacity to enact the new legislation. It is argued that legislative changes and a national response in respect of mine downscaling are required.     

The law and economics of reclamation bonds

It is becoming a standard practice for governments to require mining operations to post reclamation bonds. Yet, there have been few theoretical treatments examining the rationale for bonding mechanisms, and even fewer empirical treatments of the effectiveness of bonding. This paper addresses some of these holes in the literature. It begins by examining the rationale underlying reclamation bonds, and discusses the strengths and weaknesses of bonding as a tool for enforcing reclamation requirements. The role of bonding mechanisms is to help enforce standards, not necessarily yield efficient outcomes, and these mechanisms are best viewed as a complement to — not a substitute for — liability rules. The paper also examines the effectiveness of bonding by drawing on evidence from hardrock mining on public lands in the western United States.     

Mine closure legislation in Indonesia: The role of mineral industry involvement

Major mining companies have recently embraced the sustainable development paradigm, in seeking to improve their competitiveness and increase shareholder returns. Successful mine closure is one important element of this process. Improved performance in this area is essential if surrounding communities are to see mining companies as responsible corporate and social partners.
In Indonesia, the new approach has coincided with the development of specific mine closure legislation. To facilitate the legislation, a consortium of mining companies joined to form the Industry Mine Closure Steering Committee. This Committee has lobbied the Government, actively negotiating to incorporate sustainable development ideals and practices into the new legislation. The Committee's aim has been to foster continued development of the mining industry, while taking account of variation in environmental, social and community conditions. In describing the process, this article seeks to provide guidance for the development of mine closure legislation in other nations.     

Optimal hardwood tree planting and forest reclamation policy on reclaimed surface mine lands in the Appalachian coal region

We study the optimal hardwood tree planting decision on reclaimed surface coal mines in the Appalachian region using a mine operator-focused, expected cost model that recognizes costs of preparing the site for tree planting, unit costs of planting seedlings, and opportunity costs of reforestation treatments and the performance bond. We also consider the possibility of failed initial attempts by incorporating the probability of reforestation success, based on empirical seedling ,survival rates and regulated tree survival standards, as well as fixed and unit costs of returning for additional planting. Optimal planting levels from 319 to 780 trees per acre and expected costs from $1049 to $2338 were found using simulations over a range of unit planting costs, fixed costs of replanting, tree survival standards, and interest rates. Further simulations compared optimal planting across un-weathered gray sandstone and weathered brown sandstone substrate materials, finding gray sandstone to be associated with lower expected costs. We conclude that optimal planting density and expected reforestation cost are sensitive to economic parameters, regulations, and planting substrate materials; and those policies influencing these factors may have substantial impact on reforestation outcomes and the choice of post-mining land use by mine operators. Our study provides a framework for understanding forest reclamation decisions that incorporates incentives faced by the mine operators who develop and implement the plans for mine reclamation, including forestry.     

经济全球化下环境审计内容的探讨

本文论述了经济全球化下环境审计的主要内客,介绍了目前我国开展环境审计的基本方面和国际上对环境审计内容的阐述,并指出了经济全球化下开展环境审计的重要性和必要性。     

Contemporary Western Rural USA Economic Composition: Potential Implications for Environmental Policy and Research

/ The rural West of the United States is considered strongly antienvironment. The traditional economic reliance of the area on natural resources has long explained this antienvironment stance. The region consistently elects federal officials who as a group consistently vote against environmental bills and seek to undo existing federal environmental regulation. These politicians defend their antienvironment actions based on their perception of the economic composition and interests of the region. Recent studies, however, have suggested that rural residents are increasingly concerned about environmental issues. These studies, however, lack a consistent theoretical basis. This article uses an alternative economic typing system to examine the economic composition of rural Idaho and suggests that the results found using the alternative typing system might provide a theoretical basis to explain why some studies are finding increased rural environmental support. The results show that rural Idaho is much more economically diverse using this alternative typing methodology compared to the outcomes of traditional USDA economic methodologies. The policy and research implications of these findings are examined.KEY WORDS: Rural; Environmental policy; Economic composition     

Social disruption,mine closure and housing policy: evidence from the Free State Goldfields,South Africa

The creation of mine settlements became a common practice between 1950 and 1980. These mining towns were seen as places of permanent settlement. This permanency, together with the privatisation of mine‐owned houses (mid‐1980s) increased place attachment. Mine decline thus brought with it some form of social disruption. Whereas mining companies in Australia have attempted to minimise the social disruption caused by mine closure by introducing fly‐in‐fly‐out arrangements, the post‐apartheid housing policy in South Africa has focused on asset building in mining areas. We completed 180 interviews with representatives of households. The survey formed part of a panel survey and further included a control group and 15 qualitative interviews. Our results indicate that though members of the mining community have housing units that are larger than those of the control group, incomes are lower in the mining community, real income is in decline, smaller numbers of household members are contributing to income, self‐assessments of wealth are characterised by lower ratings, household assets increase at a slower pace, and there is a stronger preference to continue to reside in the area. All of the above serves to illustrate the consequences of the asset‐based strategies embedded in South African housing policy. The social disruption associated with mine closure further tends to lock households into locations, and thus inhibits mobility.     

Institutional, Legal, and Economic Instruments in Ghana's Environmental Policy

The environmental situation in Ghana is characterized by desertification, land degradation, deforestation, soil erosion, and inadequate water supply in the northern regions of the country. The population as a whole is growing at a rate of 3% per annum, with even greater urban growth rates, due to rural out-migration. Large parts of the coastal zone in the south are rapidly developing to become one large suburbanized area. Water quality is particularly threatened in the urban and industrialized areas, which are mainly located in the southern part of the country. The coastal lagoons and coastal waters are moderately to heavily polluted. Erosion extends along the whole Ghanaian coast with excesses, for example, in the Keta area, where during the last century over 90% of the original buildings have been washed awayby the sea. The obvious environmental consequences of the mining sector are illustrative of the environmental threats caused by a fast growing industry and industrializing agriculture, in a country where environmental policy is only in its formative years. Desertification, food insecurity and coastal erosion all contribute to an increasing number of environmental refugees. Environmental policy in Ghana is a post-Rio phenomenon. Environmental laws, a Ministry of Environment, Science and Technology, an advisory National Committee for the Implementation of Agenda 21, and a fully mandated environmental administration have been established. This administration advocates a progressive attitude towards environmental legislation and points out the specific utility of economic and legal instruments in environmental management in this relatively fast developing country. The choice of instruments for environmental management is increasingly influenced by the specific state of African environmental and technological capacity and by a call for the recognition of the role of traditional customs in nature conservation. This African perspective on environmental management is further intensified by an unmet need for regional, transboundary cooperation in the West African subcontinent. This specific West African context calls for an elaboration of an effective capacity-building program for environmental management in the area.     

Economic and financial analysis on rainwater harvesting for agricultural irrigation in the rural areas of Beijing

Since 2006, around 600 rainwater harvesting systems have been constructed for agricultural irrigation in Beijing. The financial and economic implications of using these systems are discussed less. It is important to understand the effectiveness of the investments spent on the rainwater harvesting systems. The paper aims to analyze economic and financial performance of the constructed rainwater harvesting systems in rural areas of Beijing through the method of cost benefit analysis. The economic analysis focuses on determining the contribution of rainwater harvesting systems to the development of society, carried out from the point of view of government. The financial analysis allows comparison of the financial implications of using groundwater with using rainwater for agricultural irrigation from the point of view of individual participant, namely the local farmers. The results show that the rainwater harvesting systems are economically feasible. This means rainwater harvesting have positive effects for society. However, the financial feasibility of rainwater harvesting systems depends on the charge for groundwater and on the size of the rainwater harvesting systems. If groundwater is not charged, the rainwater harvesting systems are not financially feasible. If groundwater is charged at 2 Yuan/m³, only large size systems are financially feasible while small and middle sizes systems are not financially feasible. Under these circumstances, only large systems can run smoothly, while farmers may not use the small and medium-size systems.     

A human ecological assessment of air quality management: A convergence in economic and ecological thinking?

Traditional air pollution management practices are examined using the human ecological framework adopted by Boyden and others (1981) in their study of Hong Kong—the biohistorical or biosocial approach. The subsequent analysis of current air quality management practices assesses their effectiveness in protecting the overall health of both humans and the natural environment. The uncertainties inherent in air pollution management practices which emerge highlight the need to reduce emissions rather than rely on scientific knowledge to define clean air. The assessment also clearly defines roles for research in various areas such as atmospheric models, health effects, and environmental damage. The final recommendations emphasize the need for the introduction of such incentives to reduce emissions as economic instruments and warn against using health information to define clean air. Health and environmental damage information can, however, be used in risk assessment strategies together with atmospheric dispersion models.     

环境税的理论与实践

环境税是保护环境的有效经济手段。本文首先对环境税的基本理论进行了分析,在此基础上,对我国环境税现状及发展前景进行了探讨。     

Economic and policy instrument analyses in support of the scrap tire recycling program in Taiwan

Understanding the cost-effectiveness and the role of economic and policy instruments, such as the combined product tax-recycling subsidy scheme or a tradable permit, for scrap tire recycling has been of crucial importance in a market-oriented environmental management system. Promoting product (tire) stewardship on one hand and improving incentive-based recycling policy on the other hand requires a comprehensive analysis of the interfaces and interactions in the nexus of economic impacts, environmental management, environmental valuation, and cost-benefit analysis. This paper presents an assessment of the interfaces and interactions between the implementation of policy instruments and its associated economic evaluation for sustaining a scrap tire recycling program in Taiwan during the era of the strong economic growth of the late 1990s. It begins with an introduction of the management of the co-evolution between technology metrics of scrap tire recycling and organizational changes for meeting the managerial goals island-wide during the 1990s. The database collected and used for such analysis covers 17 major tire recycling firms and 10 major tire manufacturers at that time. With estimates of scrap tire generation and possible scale of subsidy with respect to differing tire recycling technologies applied, economic analysis eventually leads to identify the associated levels of product tax with respect to various sizes of new tires. It particularly demonstrates a broad perspective of how an integrated econometric and engineering economic analysis can be conducted to assist in implementing policy instruments for scrap tire management. Research findings indicate that different subsidy settings for collection, processing, and end use of scrap tires should be configured to ameliorate the overall managerial effectiveness. Removing the existing boundaries between designated service districts could strengthen the competitiveness of scrap tires recycling industry, helping to reduce the required levels of product tax and subsidy. With such initial breakthroughs at hand to handle the complexity of scrap tire recycling technologies, there remains unique management and policy avenues left to explore if a multi-dimensional solution is to be successful in the long run.     

Abandoned mine shafts and levels in the British coalfields

Industrial dereliction is a concern to all societies. In the United Kingdom the British government is trying to make its abandoned coalfields more attractive to new industry through a combination of land reclamation and job incentive programs. The most ambitious of these projects occurs in the South Wales Coalfield, which records 200 years of land defilement and the highest unemployment amplitudes in mainland Britain. In returning this area to a semblance of its previous state, problems arise over how best to fill and cap the many derelict pit shafts and abandoned shallow mines that riddle this region. This analysis reports on the methods of treatment used to achieve this end, along with the procedures used to minimize ground subsidence, water pollution, noxious gas emission, and the potential for physical injury. These environmental controls have application to the United States and Western Europe, where pockets of industrial blight are also symptomatic of a troubled local economy.     

Environmental management and firm performance: a case study

This study has as its aim to help to clarify the relationship between environmental management and economic performance by integrating it into a wider framework that includes the relationship between environmental strategy and firm performance, the latter being understood as the combination of environmental performance, competitive advantage and economic performance. A case study of the COATO farming cooperative showed us that its environmental management, focused on prevention logic, has had a positive net effect on its environmental performance. Besides, the order in which these practices were adopted favoured the development of new organisational capabilities that have contributed to the appearance of advantages derived from the greater accumulated experience of employees in creating new projects that are designed to reduce residues and pollution. COATO has also obtained a competitive advantage in differentiation thanks to an improved brand image and to its increased credibility in business relationships. Finally, a positive correlation exists between the pioneering proactive strategy adopted by this cooperative and the improvement of its firm performance with respect to the other firms in its sector.     

扬州经济开发区发展循环经济的实践、对策和规划

扬州经济开发区通过国家生态工业示范园区的创建和国家循环经济试点工作,构建以工业共生、物质循环、自然和谐、宜业宜居为特征及资源节约型、环境友好型开发区。本文介绍了扬州经济开发区发展循环经济的实践情况,以“减量化、再利用、资源化”和“可持续性”原则为理念,分析了其循环经济发展存在的问题,并提出了相应对策和规划。     

Economic Values and Corporate Financial Statements

Corporate financial statements do not include environmental values. This deficiency has contributed to the criticism that company managers do not include environmental impacts in the internal decision-making process. The accounting profession has not developed effective environmental reporting guidelines. This situation contributes to a second problem: the apparent inability of corporate reports to provide useful information to external parties. It has been suggested that by using nonmarket valuation methodologies, financial statements can be used to measure progress toward sustainable development. Nonmarket valuations are not generally accepted by the accounting profession. They are too subjective to support effective decisions, and too costly to obtain. Furthermore, demand for this sort of information appears small. Some of these issues may be resolved over time. The most serious challenge, however, concerns how enhanced financial reports would be used. Financial statements are supposed to help investors assess the amount, timing, and uncertainty of future cash flows. A substantial portion of environmental value is based on nonuse benefits, much of which will never be realized in company cash flows. In other words, the role of financial statements would have to change. Furthermore, since there is no general agreement as to the meaning of sustainable development, efforts to operationalize the term have been fraught with difficulty. Moreover, monetization of environmental values could jeopardize their preservation, leaving some to question the overall objective of this form of reporting. For these reasons, while it is to be hoped that better reporting of environmental impacts will be forthcoming, the greatest advances will likely be outside the financial statements themselves.     

Rethinking remediation: mine reclamation,environmental justice,and relations of care

ABSTRACT

To date, research on mine remediation in North America has focused primarily on technical management; relatively less is known about the historical, political and social dimensions of remediation. Remediation, as a continuation of the mining process, alters local landscapes and economies and can be both dangerous and beneficial for surrounding communities. Because remediation projects tend to focus on the technical aspects of clean-up, such projects risk overlooking the environmental injustices associated with past development and obscuring blame or responsibility from industry and government for environmental degradation. Insofar as it is understood as cleaning up or repairing environmental damage, remediation is generally seen as “doing the good” and is less amenable to political or ethical challenges based on community concerns or values. This paper argues that greater attention needs to be paid to public participation and justice concerns associated with cleaning up mine sites. Drawing from the literatures on ecological restoration, environmental justice, reconciliation, discard studies, and matters of care, we highlight critical, yet overlooked issues in the remediation of post-mining landscapes. We argue that remediation projects present a unique opportunity for the negotiation and articulation of morals, values, histories, and physical experiences associated with mine sites and we seek to re-frame remediation as an ongoing, creative process of community healing.     

适宜性评价视角下的煤矿土地复垦技术措施研究——以白山市道清沟煤矿为例

基于土地适宜性评价方法,着重选取极限值条件法、AHP层次分析法、加权指数和法对白山市道清沟煤矿区的土地适宜类和土地质量等进行系统综合的分析,判定道清沟煤矿待复垦土地的类型、数量和质量。基于土地破坏现状和适宜性评价结果,提出以工程措施为主、生物化学措施为辅助的土地生态重构对策。     

Reduction and utilization of coal mine waste rock in China: A case study in Tiefa coalfield

In China, coal mine waste rock (CMWR) produced during coal mining and processing is still increasing significantly as a result of coal production which has huge environmental impact. CMWR reduction and utilization is a major issue for coal enterprises and government to reduce the surface footprint and the public environmental impact. Tiefa coalfield, an old coalfield with 60 years of coal exploitation, was selected as a case to study the methods to minimize the environmental impacts of CMWR piles in a short period. We argue that a systematic design on CMWR utilization is needed on the basis of a usage evaluation which takes consideration of CMWR source, compositions, and proximate analysis. Mine design is crucial and the base for reducing the CMWR generation at the headstream. Placing roadway into coal seam rather than rock, panel optimization, and parametric analysis for mining technique were conducted in Tiefa coalfield. A promising technology of CMWR backfill under the ground was employed with a resultant increase of coal recovery rate. The surface CMWR recycling depends on brick making, electricity generating, and rehabilitation of subsided land. The practice of the presented methods indicates that the CMWR piles on Tiefa coalfield may disappear in 3 years, which could significantly reduce the environmental impacts of CMWR dumps. The technologies conducted in Tiefa coalfield developed a model of CMWR reduction and utilization for Chinese coal mines.