How have reforms fuelled the expansion of artisanal mining? Evidence from sub-Saharan Africa

This paper investigates whether and how World Bank mining sector reforms have fuelled the expansion of illegal artisanal mining activity in Sub-Saharan Africa. In doing so, the analysis examines three issues. First, the emerging correlation between reforms and poverty, mainly a result of increased unemployment caused by Structural Adjustment Programmes and concurrent privatisation of state-owned enterprises, is explored. Second, the possibility that reform of large-scale mining has decreased available land for peasant farming as well as legalised small-scale mining activity is discussed. Finally, the notion that the regularisation of informal mining activities has been an exceedingly bureaucratic procedure in Africa, therefore providing individuals with little incentive to operate within the legal domain, is examined. Faced with few employment prospects, a growing number of Africans are pursuing employment in the artisanal mining sector, a worrying prospect given its intimate association with environmental degradation and HIV/AIDS.     

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.     

Is corporate social responsibility possible in the mining sector? Evidence from Catalan companies

This paper examines the role and diffusion of corporate social responsibility (CSR) management, especially in relation with the adoption of other management systems, in small and medium sized companies in the surface mining industry in Catalonia (Spain). Specifically, it identifies the most salient CSR practices, procedures and metrics and the profiles of companies more prone to adopt them. To fulfill this aim, a survey has been conducted. Results show that mining companies are familiar with CSR practices, but there is not much formalization of procedures and measurement systems of CSR yet. Results show that the majority of socially responsible practices are related to environmental issues and therefore there is a relation between CSR and the application of environmental management systems. The analysis reveals that the management of CSR activities improves with the diffusion of knowledge on CSR practices. A second survey collected the opinion of professional associations in the sector. Respondents indicate that an improvement in CSR management will lead to a better global competitive position.     

The role of price expectations and legal uncertainties in ocean mineral,exploration activities

In this paper, a standard exploration activities model is modified and applied to time series, data from deep seabed mining of a group of minerals where the number of patents is used as a proxy, for the level of mineral exploration activities. In addition to the rational expectations model, price, expectations formation for mineral prices is decomposed into trend and cyclical components using the, HP-filter method. Estimated parameters from the supply and cost functions are used to determine the, shadow price of the minerals. The non-linear instrumental variables estimator is employed to estimate, the exploration activities function. While the rational expectations model shows the importance of, current prices on exploration efforts, the HP-filter model suggests that firms concentrate on the trend, in prices rather than the short-run cyclical fluctuations. Also, while the U.S. refusal to ratify the LOSC, has increased the legal uncertainties surrounding the management of ocean resources and reduced the, incentive to engage in exploration activities, the passage of the ISA's main legislative accomplishment, regarding regulation of the explorations for polymetallic nodules appear to have made a positive effect.     

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.     

Wildlife conservation through people-centred approaches to natural resource management programmes and the control of wildlife exploitation

While the Convention on Biological Diversity (1992) introduced a new and progressive outlook on conservation, the South African government has failed to produce a comprehensive legal body of legislation to give effect to its varied obligations. Inconsistency and incompleteness of regulations governing wildlife conservation in conjunction with the failure to implement objectives to conserve wildlife through restricted exploitation with the political, social and economic motives of community conservation must be seen as major contributions to failed conservation goals. This paper analyses post-apartheid conservation laws and policies and argues that current plans for people-centred approaches to natural resource management programmes have been unsuccessful in operationalizing policy goals of biodiversity conservation and sustainable development into transparent plans for implementation. In fact, legal instruments and implementation plans seem to focus on the benefit-sharing components of community participation and therefore fail to address important issues of resource exploitation. It is suggested that where communities are expected to take part in the management of wildlife resources, the responsibility for sustainable wildlife management must be linked to the benefit-sharing instruments of the programmes. However, these would not deal with 'outsiders' like poachers and poaching driven by commercial interests. The paper proposes a model that allows communities to take control over wildlife resources.     

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.     

The sustainability of China's major mining cities

The aim of this paper is to identify principal factors controlling the Degree of Sustainable Development of Mineral Resources (DSDMR) of mining cities and then to measure their DSDMR and reveal their developing trends. To do this, 78 Chinese mining cities are used as an example. These cities are classified on a hierarchical level of the DSDMR in order to support decision-making of sustainable development. Six principal factors controlling the DSDMR are recognized using factor analysis. They are used to measure the DSDMR of the Chinese mining cities and their developing trends. The results show that in terms of the type of mineral resources, the DSDMR decreases from petroleum to multi-resources to non-metal to coal to metal cities. It decreases also from middle to old to young aged cities and from eastern to central to western cities in geographical location. In addition, large and very large cities have higher DSDMR values than middle- and small-sized cities. These Chinese mining cities are classified into six clusters by cluster analysis, which forms the basis for policy making.     

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.     

Measurement of market power for the environmentally regulated Korean iron and steel manufacturing industry

For industries in which where market prices of certain inputs are not available, measuring the degree of market power by using the markup over the marginal market cost may be inappropriate. With regard to the Korean iron and steel manufacturing industry, which is subject to environmental regulations, the calculation of the price of abatement capital is hindered by a lack of relevant data. To increase the reliability of market power markups, this paper estimates the restricted cost function in which abatement capital is assumed to be quasi-fixed at an optimal level and the supply relation. The degree of market power for the industry, measured as the ratio of the estimated market power markup to the supply price, was estimated to be 0.54 on average between 1982 and 2001. The results indicate that ignoring environmental regulations can overstate the degree of market power by approximately 12%.     

Toward an improved legislative framework for China's land degradation control

The Chinese government has recently been attaching increasing importance to the application of effective legal tools to tackle land degradation (LD) issues. Based on the concept of sustainable development, China began developing and reaping the benefits of environmental and natural resources legislation including LD control regulations in the 1990s. In the past three years, some central‐western provinces in China have been implementing a “ People's Republic of China/Global Environment Facility (PRC/GEF ) Partnership on LD Control of Dryland Ecosystems”, which is based on an integrated ecosystem management (IEM) approach. IEM is designed to achieve a balanced, scientific and participatory approach to natural resources management, which creates the potential to improve the quality of Chinese environmental law and policy procedures. The paper studies the existing Chinese national laws and regulations pertinent to LD control within 9 areas covering land, desertification, soil erosion, grassland, forest, water, agriculture, wild animals and plants, and environment protection in detail, against IEM principles and basic legal elements. The main objective is to identify problems and provide feasible solutions and recommendations for the improvement of the existing laws and regulations. The authors conclude that the development of an improved national legislative framework is essential if LD control is to be successfully achieved. The paper is partly based on Component 1 — Improving Policies, Laws and Regulations for Land Degradation Control under PRC/GEF Partnership on Land Degradation in Dryland Ecosystems (TA 4357).     

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.     

A review of the Nigerian petroleum industry and the associated environmental problems

Nigeria has abundant deposits of oil and natural gas and their exploitation has improved the economy substantially, but with serious environmental costs. Severe ecological damage has occurred in the Niger Delta area where most of the oil industries are based. Statutory rules and regulations for environmental protection applicable to the oil industry in Nigeria appear to be generally inadequate and ineffective. So far, air pollution has not been properly addressed. Natural gas is still being flared from many oil wells, with serious air pollution problems and a waste of this resource. The legal control of air pollution in the light of the ongoing operations of liquified natural gas (LNG) and compressed natural gas (CNG) projects is advised along with other measures for environmental quality, control and the conservation of resources.     

A SWOT analysis of environmental management practices in Greek Mining and Mineral Industry

Over the last two decades, mining and mineral exploration companies have adopted various environmental management practices in response to society’s pressure for better environmental protection. The literature highlights a number of benefits and challenges for companies adopting environmental management practices with the Greek Mining and Mineral Industry (GMMI) facing similar issues. In order to analyze the challenges faced by the GMMI, a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis was conducted, which examined the strengths, weaknesses, opportunities and threats faced by the industry when adopting environmental management practices. The analysis prescribes policy recommendations both for the government and industry which, if adopted, could facilitate improved environmental performance.     

我国南海海域渔业环境保护法律问题与对策

我国南海渔业活动及其以外的人类活动产生的环境问题,严重污染了南海海域的水质,威胁着南海渔业资源的可持续发展。我国南海海域渔业环境保护法律体系已形成,提供了较为合理的制度安排。但仍存在一些法律问题,其中以环境影响评价制度、海洋环境监测制度和海水养殖污染防治制度等方面的问题较为突出。因此本文提出以下法律对策:明确渔业部门在环境影响评价制度中的法律地位,加强渔业海域环境监测的协调机制和完善海水养殖污染防治制度,以期依靠法治的力量保护南海渔业资源的可持续发展。     

Drainage and utilization of Chinese coal mine methane with a coal–methane co-exploitation model: Analysis and projections

Coal mine methane (CMM) released during coal mining attributes to unsafe working conditions and environmental impact. China, the largest coal producer in the world, is facing problems associated with CMM such as fatal gas accidents and intense greenhouse gas emission along the path to deep mining. Complicated geological conditions featured with low permeability, high gas pressure and gas content of Chinese coal seams have been hindering the coal extraction. To solve these problems, a model of coal–methane co-exploitation is proposed. This model realizes the extraction of two resources with safety ensured and has been successfully applied in Huainan coalfield, China. The current situation of drainage and utilization of CMM in China are diagnosed. Connections between the coal production, methane emissions, drainage and utilization are analyzed. Estimations of future coal production, methane emissions, drainage and utilization are made in a co-exploitation based scenario. The emitted, drained and utilized CMM are projected to reach 26.6, 13.3 and 9.3 billion m³, respectively by adapting the assumption of 3800 million metric tons of coal production by 2020.     

An analysis of factors leading to the establishment of a social licence to operate in the mining industry

Communities around the world have increasingly come to demand more involvement in decision making for local mining projects, a greater share of benefits from them if they are to proceed, and assurances that mineral development will be conducted safely and responsibly. At the same time, Bridge (2004) notes full legal compliance with state environmental regulations has become an increasingly insufficient means of satisfying society's expectations with regards to mining issues. There is now a recognised need for mineral developers to gain an additional ‘social licence to operate’ (SLO) in order to avoid potentially costly conflict and exposure to business risks. However, there is a correspondingly limited amount of scholarship specifically focused on SLO. More particularly, there is a need for research that uncovers those factors that lead to the issuance (or non-issuance) of a SLO in the complex and changeable environments that often characterise mineral development. In an effort to identify key determinants of SLO outcomes in the mining industry, this paper presents a comparative case study analysis of four international mining operations: Red Dog Mine in Alaska, USA; Minto Mine in Yukon, Canada; the proposed Tambogrande Mine in Peru; and the Ok Tedi Mine in Papua New Guinea. The analysis that is presented also makes use of insights from supplementary key informant interviews conducted by the author and the emerging literature on mining and communities. Five lessons for earning a SLO emerged from this analysis: (1) context is key; (2) a social licence to operate is built on relationships; (3) sustainability is a dominant concern for communities; (4) local benefits provision and public participation play a crucial role; and (5) adaptability is needed to confront complexity.     

Safeguarding livelihoods or exacerbating poverty? Artisanal mining and formalization in West Africa

In recent years, policy mechanisms to support a formalized artisanal and small‐scale mining (ASM) sector in sub‐Saharan Africa have gained increasing currency. Proponents of formalization argue that most social and environmental problems associated with the sector stem from the fact that ASM is predominantly unregulated and operates outside the legal sphere. This paper critically examines recent efforts to formalize artisanal and small‐scale mining in West Africa, drawing upon recent fieldwork carried out in Sierra Leone, Ghana and Mali. In exploring the sector's livelihood dimensions, the analysis suggests that bringing unregulated, informal mining activities into the legal domain remains a considerable challenge. The paper concludes by confirming the urgent need to refocus formalization strategies on the main livelihood challenges and constraints of small‐scale miners themselves, if poverty is to be alleviated and more benefits are to accrue to depressed communities in mineral‐rich regions.     

Challenges with eradicating illegal mining in Ghana: A perspective from the grassroots

This paper argues that artisanal mining communities are somewhat bound to their operations, and helps explain why formalisation, alternative livelihood projects and military intervention—the traditional strategies employed by governments to tackle illegal mining—have proved ineffective. Findings from recent research carried out in Noyem (Eastern Region of Ghana) are used to illustrate why illegal artisanal mining is such a deeply rooted activity in sub-Saharan Africa. The analysis provides four explanations in support of this: a heavy involvement of traditional leaders in operations; the mindsets of many operators toward alternative income-earning activities; the numerous and diverse range of employment opportunities provided by the sector; and the level of investment in operations.     

Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina

Since the liberalisation of its investment regime in the 1990s, Argentina has seen a rise in foreign direct investment into large-scale exploration and exploitation of mineral resources. However, many social groups (local communities, grassroots movement and the church) often strongly oppose new mining projects on the grounds of environmental, ethical and economic concerns. In a situation marked by widespread conflict, mining companies continue operating and develop Corporate Social Responsibility (CSR) initiatives which are often promoted as a means of contributing to the sustainability and development of the nation. The paper develops a framework to highlight how the principles of stakeholder theory could be used as conceptual and practical guidance for conflict-resolution oriented CSR policies. The framework is further used to analyse two case studies of conflictive mining projects in Argentina. The paper explores how key stakeholders perceive contribution of CSR to welfare and the socio-economic development of mining communities and sustainable development of the nation. It demonstrates that institutional and social stakeholder networks often strongly oppose the idea of voluntary self-regulation implied by CSR in situations characterised by weak governance. Even though the CSR of companies could be improved in areas of corporate communication, transparency, stakeholder engagement and dialogue, it is not seen as a panacea for the social conflicts in the sector.