Recent developments in small-scale mining

Artisanal mining is to be viewed not only as an issue requiring mining expertise, but also as a socio-economic issue in the context of poverty, requiring multi-sectoral attention. This article traces global employment estimates in small-scale mining, outlining the extent and economic impact of small-scale mining in selected countries in Africa, Asia and Latin America. New approaches and developments are analyzed with special focus on the interrelated roles of government, the private sector, non-governmental organizations, lending institutions and the local communities. The flow of foreign capital, the creation of joint ventures, and the contribution of women are also discussed, as are strategies that have been implemented as well as recent developments including developments in the areas of health and safety.     

Harnessing the bonanza: economic liberalization and capacity building in the mineral sector

Over the past decade many developing and transition economies have liberalized their investment regimes for mining and privatized formerly state-owned mineral assets. In response, these economies have witnessed increased foreign investment in exploration and development, growth in the number and diversity of mineral projects, and the opening up of new channels for harnessing increased economic and social benefits from development in the minerals sector. The restructuring of fiscal and regulatory regimes to encourage foreign investment, and the associated influx of mining capital, technology and skills, is transforming traditional relationships between mining firms, local communities and the government. This transformation necessitates a re-evaluation of the most effective policy approaches to capture increased economic and social benefits from mineral production. This article considers effective mechanisms for improving the capacity of developing and transition countries to maximize the economic and social benefits of mineral production. Common challenges associated with minerals economies are reviewed. Consideration is given to the opportunities for harnessing foreign direct investment and the possibilities for creating new partnerships between local communities, industry, government, and multilateral development agencies through social investment projects. The article concludes with a series of recommendations for the design and implementation of policy approaches towards harnessing mineral production for economic and social benefit following the liberalization of investment regimes for mining.     

The mining industry and the community: joining forces for sustainable social development

This article joins the continuing policy debate over the social responsibility of corporations, particularly in the mining industry. The author argues that the 'old school mining orthodoxy'—approaching the exploitation of mineral deposits solely from the technical and economic points of view—is long dead. Mining companies must also encompass the social dimension.
New policies for the mining industry are discussed in terms of recent worldwide trends and movements, e.g. globalization, economic interdependence and decentralization of governmental authority, and the rise of civil society as a political factor. These trends, together with the United Nations policies in quest of sustainable development and the consensus expressed at international conferences during the last decade, have deepened social awareness and set the stage for enhanced social responsiveness from the private sector. Socially responsible corporate policies include decentralization of decision-making to the field level, reaching out to stakeholders and shareholders, supporting governments which provide official development assistance for good governance and building broad partnerships to reduce social exposures.     

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.     

Tourism Partnerships in Protected Areas: Exploring Contributions to Sustainability

Partnerships between natural-area managers and the tourism industry have been suggested to contribute to sustainability in protected areas. This article explores how important sustainability outcomes of partnerships are to their members, how well they are realised and the features of partnerships leading to their achievement. In 21 case studies in Australia, interviews (n = 97) and surveys (n = 100) showed that of 14 sustainability outcomes, improved understanding of protected areas values and improved biodiversity conservation were the most important. Other highly ranked outcomes were greater respect for culture, heritage, and/or traditions; improved quality of environmental conditions; social benefits to local communities; and improved economic viability of the protected area. Scores for satisfaction with outcomes were, like those for importance, all high but were less than those for importance for the majority, with improvement in quality of environmental conditions showing the largest gap. The satisfaction score exceeded that for importance only for increased competitiveness of the protected area as a tourist destination. “Brown” aspects of sustainability, i.e., decreased waste or energy use, were among the lowest-scoring outcomes for both importance and satisfaction. The most important factor enabling sustainability outcomes was provision of benefits to partnership members. Others were increased financial support, inclusiveness, supportive organisational and administrative arrangements, direct involvement of decision makers, partnership maturity, creation of new relationships, decreased conflict, and stimulation of innovation. Improving sustainability outcomes, therefore, requires maintaining these partnership attributes and also increasing emphasis on reducing waste and resource use.     

Enhancing climate technology transfer through greater public–private cooperation: Lessons from Thailand and the Philippines

This article contributes to debates about climate change policy and technology transfer by analyzing the success factors underlying collaboration between private companies and communities in developing countries. To date, much attention to capacity building for enabling environments — including public–private collaboration — under the climate change convention has focused on state‐led initiatives and on the innovation and development of technologies. This article, instead, focuses on how private‐sector investors and host communities may collaborate in the diffusion of technologies, by reducing the costs of technology transfer, and making technology more appropriate to developing countries. The article describes cases of collaboration concerning waste management and waste‐to‐energy in Thailand and the Philippines. The article argues that successful public–private partnerships between investors and communities depends on minimizing transaction costs, strengthening collaborative (or assurance) mechanisms, and in maximizing public trust and accountability of partnerships. Lessons are then drawn for enhancing capacity building for technology transfer under the climate change convention and applications such as the Clean Development Mechanism.     

Sustainable public/private partnerships for public service delivery

This article defines three kinds of public/private partnership, lists their potential benefits and explains common issues and problems in their operation with examples from developing countries. It then defines and discusses the concepts of social sustainability and financial sustainability in relation to public/private partnerships, and emphasizes the importance of applying sustainability criteria to each partner. It is argued that essentially the same criteria apply to non-profit NGOs as to for-profit firms, despite their differences in goals and values. The article concludes with some suggested strategies for effective international technical co-operation in the establishment of public/private partnerships.     

Mining with communities

To be considered as sustainable, a mining community needs to adhere to the principles of ecological sustainability, economic vitality and social equity. These principles apply over a long time span, covering both the life of the mine and post-mining closure. The legacy left by a mine to the community after its closure is emerging as a significant aspect of its planning. Progress towards sustainability is made when value is added to a community with respect to these principles by the mining operation during its life cycle. This article presents a series of cases to demonstrate the diverse potential challenges to achieving a sustainable mining community. These case studies of both new and old mining communities are drawn mainly from Canada and from locations abroad where Canadian companies are now building mines. The article concludes by considering various approaches that can foster sustainable mining communities and the role of community consultation and capacity building.     

The case of artisanal mining in Bolivia: Local participatory development and mining investment opportunities

Despite the buoyant expansion of Latin America's mining sector, the small-scale mining sub-sector remains marginalized. For many countries with small-scale mining resources, the way forward to sustainable mining development is not clear. Activities, in far too many cases, have led to environmental damage, social inequity and political violence among mining communities. This article, through a case study of the Bolivian Altiplano, seeks to advance the understanding of the conditions that drive mining communities into the chain of events of impoverishment associated with environmental damage. It also examines the opportunities for sustainable human development among these communities. In Bolivia's mining sector, social inequity is pervasive and holds the mineral resources captive. This situation is further aggravated by the fact that solutions, in the short term, are uncertain. Unresolved social inequity compromises foreign direct investments since social considerations are becoming increasingly important to mining corporations when deciding whether to invest. This article outlines a preliminary strategy to move forward on social inequity. The strategy revolves mainly around implementing alternative sustainable livelihoods with the participation of the government (central and local), the private sector, NGOs and donors as facilitators and partners. Its aim is to reduce the number of families eking out a living from artisanal mining in order to enhance the viability of small-scale mining. It is hoped that, as social inequity decreases throughout the sector, the increased stability will enable stakeholders to consider foreign direct investments within the framework of the country's sustainable human development goals.     

Abandoned artisanal gold mines in the Brazilian Amazon: A legacy of mercury pollution

The modern gold rush in the Brazilian Amazon attracted millions of people to become artisanal miners in order to escape complete social marginalization. The rudimentary nature of artisanal mining activities often generates a legacy of extensive environmental degradation,both during operations and well after mining activities have ceased. One of the most significant environmental impacts is derived from the use of mercury (Hg), which is illegal for use in gold amalgamation in Brazil, but continues to be the preferred method employed by artisanal gold miners. The general population is unaware of the capricious nature of mercury and artisanal mining activities. Moreover, individuals in positions of political or economic infiuence tend to be negatively biased towards artisanal mining and government policies do not effectively address the realities of these activities. Affected communities have consequently been ignored,and mistrust towards outside parties is high. Not surprisingly, miners are suspicious of and unlikely to employ externally derived solutions to reduce mercury emissions. This article reviews the use of mercury in artisanal mining and highlights the role miners, governments and non-governmental organizations (NGOs) have played in communicating facts, perpetuating myths and deriving solutions for mercury pollution. This article also raises some key concerns that must be addressed to understand the behaviour of mercury in the environment and identifies solutions for problems facing communities where artisanal gold mining operations have been abandoned.     

Partnerships for local sustainability and local governance in a Tasmanian settlement

This research is concerned with effects and actions at the local level, where it is argued that local governing processes are key to developing sustainable communities. The roles of the citizen and of formal government are changing such that the implementation of sustainability praxis at the local level requires that citizens and governments reconsider both the meaning and techniques of governance. Indeed, how we are governed, participate in governing processes and internalise and accept the need for change will affect how local communities make constant and lasting a dynamic praxis of sustainability. Actors in local governments and communities may be crucial in this task—especially as facilitators, enablers, leaders and partners. In this paper we focus on the Huon Valley Council and some members of one of its communities. We examine how they are experimenting with partnerships as a form of governance to unify, control, mobilise and regulate the conduct of various actors, and how such partnerships may foster sustainability praxis in the Valley's diverse communities of place and interest.     

Partnerships for local sustainability and local governance in a Tasmanian settlement

This research is concerned with effects and actions at the local level, where it is argued that local governing processes are key to developing sustainable communities. The roles of the citizen and of formal government are changing such that the implementation of sustainability praxis at the local level requires that citizens and governments reconsider both the meaning and techniques of governance. Indeed, how we are governed, participate in governing processes and internalise and accept the need for change will affect how local communities make constant and lasting a dynamic praxis of sustainability. Actors in local governments and communities may be crucial in this task—especially as facilitators, enablers, leaders and partners. In this paper we focus on the Huon Valley Council and some members of one of its communities. We examine how they are experimenting with partnerships as a form of governance to unify, control, mobilise and regulate the conduct of various actors, and how such partnerships may foster sustainability praxis in the Valley's diverse communities of place and interest.     

Community Perception of Water Quality in a Mining-Affected Area: A Case Study for the Certej Catchment in the Apuseni Mountains in Romania

Mining-contaminated sites and the affected communities at risk are important issues on the agenda of both researchers and policy makers, particularly in the former communist block countries in Eastern Europe. Integrated analyses and expert based assessments concerning mining affected areas are important in providing solid policy guidelines for environmental and social risk management and mitigation. Based on a survey for 103 households conducted in a former mining site in the Certej Catchment of the Apuseni Mountains, western Romania, this study assesses local communities’ perceptions on the quality of water in their living area. Logistic regression was used to examine peoples’ perception on the quality of the main river water and of the drinking water based on several predictors relating to social and economic conditions. The results from the perception analysis were then compared with the measurements of heavy metal contamination of the main river and drinking water undertaken in the same study area. The findings indicate that perception and measurement results for the water quality in the Certej Catchment are convergent, suggesting an obvious risk that mining activities pose on the surface water. However, the perception on drinking water quality was little predicted by the regression model and does not seem to be so much related to mining as to other explanatory factors, such as special mineralogy of rock and soils or improper water treatment infrastructure, facts suggested by the measurements of the contaminants. Discussion about the implications of these joint findings for risk mitigation policies completes this article.     

Financial failures in mining : Implications for LDC mineral policies

The risk of financial failure among LDC mining projects, always significant, has apparently increased during recent years. This situation, which is unlikely to change in the near future, has important implications for LDC mineral policies. In particular, it can no longer be assumed that mining will generate significant government revenues, traditionally regarded as the single most important economic benefit arising from large-scale mining projects in LDCs. Many LDC governments consequently need to reassess their mineral policies and place greater stress on maximizing economic benefits which will accrue even where mines fail to generate significant profits. Two such benefits are discussed, and concrete policy measures are suggested to illustrate the initiatives available to LDCs.     

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.     

Maintaining land use agreements in Papua New Guinea Mining: ‘Business as usual’?

Most large scale resource extraction projects in Papua New Guinea (PNG) require companies to negotiate with customary landowners for access to development sites. In the discussion of process and challenges of development and operation of projects, particularly mines, the paper, basing as a case study of land use arrangements in PNG mining, has several objectives to address. First, it discusses land use arrangements in the mining industry and how they have evolved over the last few decades. Today, most of these arrangements involve pluralistic framework agreements which have been shaped by land tenure debates, civil uprisings, government initiatives and increasingly politically savvy customary landowners. This pluralistic process encourages key stakeholder involvement, particularly customary landowner participation which has been an innovative piece of sustainable mineral policy development in PNG. Second, the paper argues that ‘it is not business as usual’ for mining companies as it would generally be the case in developed and many developing countries because they are increasingly forced to be proactive in addressing landowner and community interests while managing mining projects. A brief overview of land use debates in PNG is summarised at the outset to provide background to mining and development in the country. Third, the significance of the corporate social responsibility (CSR) paradigm and its impact on business, particularly the mining industry is acknowledged intermittently in the discussion to shed light on how it is influencing development of local communities. Finally, the paper argues that the post-Bougainville period has led to a change of the old enclave model of mining development to a broad based community driven form of development around mining. However, it is difficult to predict as to how this model of mining led development in rural PNG will span out in the long run. In the meantime, genuine landowner partnerships with developers and government in the management and operation of mining projects in the country are proving to be a positive outcome for everyone despite some major challenges.     

Labour challenges and mercury management at gold mills in Zimbabwe: Examining production processes and proposals for change

The use of mercury in small-scale gold mining has been a growing concern in many parts of Africa. However, although the negative effects of mercury pollution are increasingly reported, little has been written about how labour relationships and gold production challenges in mining communities affect mercury management practices. This article provides an integrative analysis of small-scale gold extraction processes, labour challenges, and mercury use at gold mills in Zimbabwe, focusing on a gold rush area in Mashonaland West Province. It examines practices employed by miners who have limited economic capacities to upgrade technologies, and how the complex relationships between miners, mill owners and government regulators affect environmental performance. The study draws attention to how poor environmental management practices relate to labour inequities, low gold recovery as well as the informal gold trade dynamics amid the country's economic crisis. Results of a United Nations-supported stakeholder consultation process are discussed, with proposals for improving labour conditions and reducing environmental risk. The article highlights why the government should develop and support local programs to assist miners, as well as the decisive roles mill owners could take in ensuring improved standards on their sites.     

Corporate social responsibility, partnerships, and institutional change: The case of mining companies in South Africa

Internationally and in South Africa, mining companies are increasingly referring to corporate social responsibility (CSR) and partnerships in terms of the business case, or the expectation that being responsible and collaborating with stakeholders is good for profits. Based on a case study of platinum and chrome mining in South Africa, this article argues that the business case is circumscribed by companies’ institutional context. In the past, mining companies’ dominant interpretation of CSR has been in terms of charitable donations and support to good causes. These efforts have not alleviated the contribution of mining companies to growing social problems around the mines, primarily because they have not impacted on core business practices and have not contributed to necessary cross‐sectoral collaboration. Recently, however, there has been an important transition involving the broadening of the interpretation of CSR and increasing commitment to these issues amongst corporate leadership. Though market‐based incentives have contributed to this, the key driver has been the State's legislated transformation programme premised on State sovereignty over mineral resources. Hence, while the interrelationship between companies and their institutional context has, in the past, brought about a vicious cycle of irresponsibility and minimal collaboration, this cycle may be reversed into a virtuous one, driven in particular by the State. The broader implication is that references to a business case for CSR and partnerships cannot be relied upon independently of continued efforts at shaping the public sector context of companies.     

A framework for policy formulation for small-scale mines: the case of coal in China

The effective management of small-scale mines is one of the major challenges for governments in the mining sector. Small-scale mining may bring tangible, short-term benefits to the communities involved. However, these benefits are frequently outweighed by the costs incurred in terms of illness, injury, pollution, waste of natural resources and market distortions. Governments, international agencies and advisers are generally able to draw up lists of actions which are required to regulate and manage small-scale mines more effectively, but turning plans into sustained action has proved more difficult. Two aspects of policy implementation are crucial to success: the alignment of interests, and the attitude and effectiveness of government. Using a case study of township and village coal mines in China, this article develops an approach to analysing these issues that could assist regional policy makers and advisers in formulating policy, in identifying key obstacles to policy implementation, and in identifying particular parties which need to be infiuenced or educated in order for the policy to succeed.     

The use of aggregate complaints data as an indicator of cumulative social impacts of mining: A case study from the Hunter valley,NSW, Australia

Generally speaking, there is a greater amount of quantitative data available to measure and model the cumulative environmental or economic impacts of mining than the social impacts. In part, this is because social impacts are often inherently more difficult to quantify, but historically there have also been fewer regulatory drivers for companies or state agencies to invest in collecting such data. Regulators in some jurisdictions are now starting to require resource companies to report on aspects of their social performance, but companies and regulators are still struggling to identify appropriate metrics, particularly in regards to cumulative impacts. This paper describes an innovative quantitative approach to tracking how communities experience and respond to increased mining activity, using data from the complaints registers maintained by mines located in the Upper Hunter Valley in New South Wales, Australia. In this study, complaints lodged with five separate mines adjacent to the township of Muswellbrook over several years were aggregated and trends analysed. The aggregated set showed that complaint frequency increased with the increase in mining activity but then decreased as individual complaints were addressed. However, when complaints from near-neighbours were removed, it emerged that the proportion of complaints that came from the town itself steadily increased over time. Further analysis indicated that this increase was closely associated with the amount of mine-disturbed land that could be seen from the town over time, as measured using a combination of remotely sensed data and a digital elevation model. This is persuasive evidence of a cumulative social impact that is more than just the sum of the local impacts of individual mines.