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.     

Green research and development (R&D) investment and its impact on the market value of firms: evidence from South African mining firms

The importance of global corporate green research and development (R&D) investment is gaining momentum and South Africa is no exception. This paper examines growing economic perceptions that green financial and stock-market systems result in heightened corporate hyperopia and therefore increase long-term and future green investment associated with R&D. It reports on the findings of a survey of 14 South African mining firms listed on the Johannesburg Stock Exchange SRI index. The study found, that, these firms’ market value showed a positive association with Green R&D. It also revealed increased Green R&D activity among large mining firms in the country and that they are highly likely to maintain their level of such investment in the coming years. The study's outcomes thus add to the body of empirical knowledge on firm hyperopia in relation to corporate greening initiatives.     

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.     

Perspectives on corporate social responsibility in the chemical sector: A comparative analysis of the Mexican and South African cases

In recent years, the debate on corporate responsibility has shifted from a focus on environmental management towards a broader concept of corporate social responsibility (CSR). This article examines the chemical industry's approach to CSR from the perspective of two emerging economies: Mexico and South Africa. The global chemical industry was one of the first to respond to public concerns about environmental pollution, toxic waste and human health by adopting an industry‐wide code of practice, known as Responsible Care. This article examines the extent to which the chemical industry has responded to the broader debate on CSR. On the basis of a comparative case study, this article argues that the response to social issues by Mexican and South African chemical companies has tended to be limited to the ‘community awareness and emergency response’ (CAER) or community dialogue component of the international voluntary management framework, Responsible Care. Similarities and differences in regulatory and institutional conditions, as well as different levels of civil society engagement, reveal additional limitations for CSR, beyond that of the Responsible Care framework. This article argues that the socio‐political context influences the extent to which companies embrace CSR, especially in emerging economies, and highlights several challenges for the chemical industry in moving forward on CSR: credibility, stakeholder engagement, value‐chain accountability, disclosure and transparency. Reflecting on these challenges, the authors conclude by recommending a renewed focus on: (1) developing a broader set of CSR management practices beyond Responsible Care; (2) institutionalizing stronger accountability measures, such as reporting and verification; and (3) developing multi‐stakeholder partnerships that complement regulation and build public sector regulatory and guidance capacity.     

Industrial development zone and South African environmental legal initiatives post-1994: a quest for sustainable industrial development

Many developing countries are currently undergoing increased industrialization, which has accelerated environmental degradation. This study aims to examine South Africa's industrial development path as a socio-economic strategy pursued along the rill-lines of sustainable industrial development (SID) in view of the post-1994 environmental legislative initiatives. An exploratory review guided the study analysis. As industrial development zones (IDZs), environmental sustainability research is virtually non-existent, leading to the poor understanding of this programme's role in SID. This study reveals that the government political commitment, 1996 South Africa's Constitution and National Environmental Act (No. 107 of 1998) are key pillars reconciling the environment and industrial development in diffusing apartheid legacies. Non-compliances re-occur in industries outside the IDZs due to shortage of environmental monitoring inspectors and government priorities changes. Therefore, there is need to ‘green’ IDZ stakeholders for proper environmental legislation implementation. Finally, the study highlights new potential directions for research into SID zoning.     

Designing a mixed performance measurement system for environmental supply chain management using evolutionary game theory and balanced scorecard: A case study of an auto industry supply chain

This paper proposes a mixed performance measurement system using a combination of evolutionary game theory and the balanced scorecard (BSC) in environmental supply chain management (ESCM) that measures and evaluates business operations using the four different perspectives of finance, customer, internal business process, and learning and growth. ESCM plays an important role in the supply chain which leads to the reduction, reuse and recycling of resources involved in both upstream and downstream activities. This paper presents guidance for practical managers in evaluating and measuring ESCM by developing a knowledge-based BSC and evolutionary game theory. The primary purpose of this paper is to apply the proposed method in a case study to one of Iran's biggest auto industry supply chain SAIPA Company. The results of this study indicate that the adoption of ESCM, in the absence of regulatory pressures and cost-saving measures is triggered by public pressures and its implementation is limited by organizational factors and strategic myopia.     

A nonlinear model for assessing multiple probabilistic risks: a case study in South five-island of Changdao National Nature Reserve in China

Several methods for estimating the potential impacts caused by multiple probabilistic risks have been suggested. These existing methods mostly rely on the weight sum algorithm to address the need for integrated risk assessment. This paper develops a nonlinear model to perform such an assessment. The joint probability algorithm has been applied to the model development. An application of the developed model in South five-island of Changdao National Nature Reserve, China, combining remote sensing data and a GIS technique, provides a reasonable risk assessment. Based on the case study, we discuss the feasibility of the model. We propose that the model has the potential for use in identifying the regional primary stressor, investigating the most vulnerable habitat, and assessing the integrated impact of multiple stressors.     

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.     

Risk assessment for atmospheric environmental management: a case study in the Hunter Region of New South Wales,Australia

The theoretical framework of a risk assessment scheme is applied to air quality assessment in a developing region in Australia, the Hunter Valley in the state of New South Wales. It is found that the application of such a scheme high-lights a number of inadequacies in the air quality management. New modeling methodologies are found to be necessary to assess some air quality impacts, as existing knowledge is inadequate. The importance of extensive data bases is underlined as is the need for social surveys to supplement air pollution monitoring when gauging aesthetic effects of air pollutants.A visiting fellow on leave from the School of Australian Environmental Studies, Griffith University, Brisbane, Queensland, Australia.     

Social-environmental certification: Sustainable development and competitiveness in the mineral industry of the Brazilian Amazon

This article examines the relationship between increased metal mining and sustainable development in the eastern section of the Amazonian state of Pará in Brazil. Since the early 1980s, mining has grown rapidly in Pará and local mining operations have become global leaders in the production of iron, manganese, bauxite, aluminum, gold, copper and — in the near future — nickel. To stay in tune with global standards, these companies have committed themselves to the principles of sustainability and have obtained certification for both social and environmental aspects of their activities. The article looks into whether such certification is linked to sustainable development of the relatively poor regions where these companies operate. The main findings are that: (1) there is a visible association between certification and improved performance by the companies, but not with the development of nearby areas; and (2) social‐environmental certification processes place more emphasis on ecological variables than on social ones.     

Environmental sustainability assessment in the process industry: A case study of waste-to-energy plants in Spain

This study proposes a technical procedure based on a life cycle approach for implementation of the environmental sustainability assessment (ESA) of several waste-to-energy (WtE) plants located in Spain. This methodology uses two main variables: the natural resources sustainability (NRS) and the environmental burdens sustainability (EBS). NRS includes the consumption of energy, materials, and water, whereas EBS considers five burdens to air, five burdens to water, and two burdens to land. To reduce the complexity of ESA, all variables were normalised and weighted using the threshold values proposed in the European Pollutant Release and Transfer Register regulation. The results showed the plants studied had a greater consumption of natural resources than Spain, ranging from 1.1 to 2.0 times higher than the Spanish reference consumption. The comparison of Spain with the BREF reference on waste incineration showed that only in the variable related to materials, did Spain have a lower consumption (1.80 times lower). In terms of EBS, air and land impacts were the highest contributors to global burden. The WtE plants presented higher burdens to air and water than Spain, whereas only one plant exceeded the average burden to land of Spain. Finally, this paper demonstrated the usefulness of the ESA methodology to reduce the complexity of LCA and assist the decision-making process in choosing the best option from an environmental point of view. This procedure can be used to obtain an overview of the environmental performance of WtE plants, as well as to assess individual burdens and thereby determine the main environmental hotspots, thereby improving the critical points of the process.     

Climate change adaptation planning for Global South megacities: the case of Dhaka

Megacities in low- and middle-income countries face unique threats from climate change as vulnerable populations and infrastructure are concentrated in high-risk areas. This paper develops a theoretical framework to characterize adaptation readiness in Global South cities and applies the framework to Dhaka, Bangladesh, a city with acute exposure and projected impacts from flooding and extreme heat. To gather case evidence from Dhaka we draw upon interviews with national and municipal government officials and a review of planning documents and peer-reviewed literature. We find: (1) national-level plans propose a number of adaptation strategies, but urban concerns compete with priorities such as protection of coastal assets and agricultural production; (2) municipal plans focus on identifying vulnerability and impacts rather than adaptation strategies; (3) interviewees suggest that lack of coordination among local government (LG) organizations and lack of transparency act as barriers for municipal adaptation planning, with national plans driving policy where LGs have limited human and financial resources; and (4) we found limited evidence that national urban adaptation directives trickle down to municipal government. The framework developed offers a systematic and standardized means to assess and monitor the status of adaptation planning in Global South cities, and identify adaptation constraints and opportunities.     

Protecting the environment through public procurement: The case of South Africa

This article deals with the use of the procurement or purchasing power of governments to protect the environment. The focus is on South Africa and the aim is to show that South African organs of state can use procurement as an environmental policy tool to contribute to sustainable development as they have commendably done so to address past discriminatory policies and practices. It is argued that such use does not fall outside the current legislative framework governing procurement and suggestions are made as to how environmental considerations could be incorporated throughout the procurement process, namely the preparatory stage; the drawing up of tender or technical specifications; ensuring the capability or responsibility of contractors; the use of criteria to compare different tenders; and ensuring that eventual performance under a contract is environmentally sound.     

Cleaner production in the ammonia-soda industry: an ecological and economic study

Five methods to reduce the negative influence of soda ash factories on the natural environment are presented: 1. obtaining calcium-magnesium phosphates by treating the suspension from raw brine purification with orthophosphoric acid (H(3)PO(4)), 2. production of precipitated chalk from soda processing waste, 3. production of gypsum and semi-brine, 4. desulphurisation of fume gases from the factory power plant, 5. utilization of distiller waste. The tests, accomplished on a laboratory scale, showed the high efficiency of these methods. Economic analysis has proved that only four out of the five presented processes can have a positive financial effect on soda ash factories, as well as being well justified economically. The value of two of the innovations presented is confirmed by their implementation in factories.     

The mining industry in the European Union: Analysis of inter-industry linkages using input–output analysis

Input–output modelling is a useful tool in policy analysis and economic planning. This methodology is used to detect the inter-industry linkages known as forward and backward linkages. Examination of these measures provides one mechanism for identifying “key” or “leading” sectors. The main objective of this paper is to measure the linkages of the mining and quarrying industry in the European Union (EU) and to determine if any of the industry subsectors can be considered key sectors. The paper shows that three subsectors can be considered key sectors: the mining of coal and lignite and extraction of peat in Germany; mining of metal ores in Sweden; and other mining and quarrying in Austria, Denmark and Spain. These sectors are more stimulated by overall industry growth than other sectors and have greater impacts in terms of investment expenditures on the national economy than other sectors. The values of the forward and backward linkages show that the mining and quarrying is an industry that would be stimulated by an increase in a regional economy's production more than other sectors, while an increase in the mining and quarrying industry's output would not stimulate this regional economy more than an increase in other sectors.     

Tri-sector partnership for community development in mining: a case study of the SAPI Foundation and Target Fund in the Republic of Sakha (Yakutia)

This paper explores the nature of tri-sector partnerships applied to community development in the mining sector. The case study approach was used to examine an initiative for environmental improvement and socio-economic development in the diamond province of the Republic of Sakha (Yakutia), in the Russian Federation. The study follows the journey of this initiative from a potential tri-sector partnership model between the diamond mining company ALROSA, the Government of the Republic of Sakha (Yakutia) and the SAPI Foundation, to a bi-lateral partnership between ALROSA and the Government represented by the Target Fund. The study explores the community development in the diamond province in the light of economic and political transition within the mining sector of the Russian Federation.     

Urban sustainable energy development: A case study of the city of Philadelphia

Cities throughout the world are key sites for energy sustainability activities. However, analysis of such efforts to date has focused on a sub-set of atypical cities: early adopters and/or world cities. This article undertakes a case-study analysis for an ordinary city, Philadelphia, PA in order to assess the extent to which prior research provides adequate policy explanation for ordinary cities and to gain empirical insight on two under-researched aspects: policy actors, and the policy-making and implementation sites (action sites) for urban energy sustainability. Overall, the types of policy drivers, modes of governance, and enabling factors and barriers in the Philadelphia case fit with prior studies. Focusing on actors and action sites, however, offers insight on the city’s relative policy-making approach based on “non-controversy”, the key role of third-sector actors in both policy-making and implementation, and the diversification of action sites through external-level policy-making operationalised locally nevertheless at the expense of reduced control by urban actors. These findings lead to recommendations for urban energy sustainability research and practice.     

The supply behaviour of state mining enterprises: A case study of the Jordanian phosphate industry

An important feature of export-oriented production in mineral-rich developing countries for almost three decades after 1960 was the growth of state-owned enterprises. For the phosphate industry, this was reflected in the expansion of companies such as Office Cherifienne des Phosphate (OCP) in Morocco and the Jordan Phosphate Mines Company (JPMC). There was a strategic importance of the industry for these nations and the large capital outlays necessary for phosphate and fertilizer production expansion often required considerable government assistance because of the perceived high risks of private investment in the industry.