Assessment of risk in a minerals industry: Canadian nickel

The level of rents attributable to natural resource producers depends on the risk faced by those producers. This paper argues that estimates of risk in mining should control for characteristics of firms such as diversification and debt financing. The capital asset pricing model is applied to securities of three Canadian nickel mining firms over the period 1961–1974. It is concluded that the level of risk was not unusually high.     

The measurement of resource rents: An application to Canadian nickel

Once the ‘risk’ of the industry is recognized, there are at least two sources of higher-than-normal returns to investment in mineral extraction: Ricardian rents to resources with different economic qualities and monopoly rents. An estimate of the relative importance of these sources in the Canadian nickel industry over the period 1961-74 is made and it is found that Ricardian rents and, for one firm, monopoly rents, were important.     

The nickel industry: Continued response to a changing environment

The world nickel market has slowly evolved from domination by the International Nickel Company (Inco) into a competitive structure. Presently, the nickel industry is characterized by product surpluses and low prices. The change in structure and the current state of the industry has resulted from the price strategy followed by the leading nickel producers, a general decline in market development expenditures, certain characteristics of developing nickel producing capacity and several unforeseen events. Examination of these factors can help in developing policy options aimed at improving the future of the industry.     

The evolution of the Canadian mining industry: The role of regulatory punctuation

In this study, we analyze the evolution of Canada's mining industry from 1929 to 2006, focussing on the determinants of the number of firms in the industry and why this number changed over that period. Most empirical studies of industry evolution have focused on manufacturing industries that share similar structural characteristics. Perhaps because of this, extant models of industry evolution tend to ignore industry-specific and national-specific factors that can cause atypical trajectories, that is, heterogeneous industry evolution. Initial inspection of the Canadian mining industry shows that it is atypical in that it exhibits “negative skew” over time in the number of firms rather than the typical “positive skew.” We review two dominant theoretical approaches to industry evolution: the density-dependence theory and variants of industrial organization economics. We also consider possible sources of industry evolution heterogeneity, focussing particularly on “regulatory punctuation”. Using Canadian mining data, we find that the traditional models do not fully explain the changes in population size in Canada's mining industry. As a result, we introduce a number of hybrid models. The results from these hybrid models suggest that Canadian-specific regulatory punctuations, particularly the introduction of significant new taxes, environmental legislation, and incentives have shaped the trajectory of mining firm participation.     

The environment of the mining industry: An industry view

Finance and investment, technological development, government legislation and fiscal policies, public attitudes and aboriginal lands, are among the major issues confronting the Australian minerals industry. Within this context the author discusses the significance of the industry to the Australian economy and assesses its potential.     

Regional policy and recession: a new role for planning?

The recent central government paper on regional industrial development heralds a reduced role for regional policy, in contrast with the Regional Studies Association inquiry into regional problems in the U.K. A brief exploration of the central government views leads to the paper concluding with a call for an increase in regional planning and for regional planning authorities.     

The quandary of local people—Park relations in Nepal's Royal Chitwan National Park

This paper analyzes five major causes of park-people conflicts that have occurred in Nepal's Royal Chitwan National Park. The causes include illegal transactions of forest products from the park, livestock grazing in the park, illegal hunting and fishing, crop damage, and threats to human and animal life caused by wild animals from the park. The conflicts indicate a reciprocal relationship between the park and local people. They reflect the attitudes of local people and representatives of the park authority whose priorities and objectives largely diverge. The results show that people settled adjacent to the park are heavily dependent on its resources. Even in places where some, albeit few alternative sources exist, local people continue to trespass the park boundary as these sources are inadequate to ensure the fulfillment of local people's resource needs. Illegal transactions of resources continue throughout the year; however, they are less intense during summer due to flooding caused by the Rapti River, which forms the park boundary towards the northern section where this study is conducted. The frequency of local people's visits to the park is mainly determined by their age, distance between homesteads and park, and volume of crop loss caused by wild animals. Crop damage is the function of size of landholding, distance, and frequency of crop raid. Local people claim that they have no intention of letting their livestock graze in the park; however, the dense vegetation of the park attracts livestock grazing on riverbanks just outside the open park boundary. Many head of livestock are killed by carnivores of the park. Human casualties are mainly caused by sloth bear (Melursus ursinus), tiger (Panthera tigris), wild pig (Sug scrofa), and rhinoceros (Rhinoceros unicornis). There had been some earlier attempts to reconcile the conflicts by offering local people different kinds of compensations; however, these were unsuccessful measures. An integrated approach is essential if efforts to resolve the park-people conflicts are to succeed. The government is in the process of launching a project that aims to resolve the inherent problems with such an approach. Suggestions are made to incorporate some key elements, such as maintaining effective communication between various parties and the potential for wildlife conservation among local people.     

Contaminated sites: the Canadian situation in an international context.

Over the last 2 decades, policy-makers have been giving increasing attention to the remediation and redevelopment of contaminated sites, especially those located in urban areas commonly referred to as brownfields. Traditionally, private developers have tended to ignore these sites on account of a series of obstacles of a structural-political nature, including variability in regulatory processes, lack of information on soil quality, impractical clean up standards, fear of liability, and limited funding resources for clean ups. This paper examines the types of policy-making measures that are currently being taken in Canada to overcome these obstacles, comparing them to those being taken in the US and Europe. It is argued that the contaminated site-related policies and programs employed to overcome each obstacle, both within Canada and internationally, are converging in style and content as governments are becoming more aware of the types of costs and risks they must share in order to solve the problem effectively. It is also argued that this trend is unfolding in a relatively predictable way, and that policy-making in Canada is evolving more slowly than it is in the other jurisdictions examined.     

Trends in foreign investment : Agreements in the resources industry

Recent agreements between host country governments and foreign investors in the resource industries reflect an effort to meet the objectives of both parties. In some cases majority government ownership is combined with management control and the right of veto on certain policy questions by the foreign investor. Imaginative tax formulas are built into agreements that combine the principle of excess profits taxes with that of a minimum DCF rate of return. Expropriation risk is being limited by employing a high debt-equity ratio. Foreign investors are agreeing to programmes and policies that promote host country economic and social development, while host country governments are quaranteeing foreign investors against changes in laws that would affect their profits.     

Sustainable development in the mining industry: clarifying the corporate perspective

This paper examines sustainable development in the corporate mining context, and provides some guidelines for mining companies seeking to operate more sustainably. There is now a burgeoning literature that examines sustainable development in the context of minerals and mining, most of which is concerned with sustainability at global and national scales. What is often challenging to ascertain, however, from these numerous perspectives on sustainable mineral extraction, minerals and metals recycling, environmental management, and social performance, is how sustainable development applies to mining companies themselves, and what steps a mine must take in order to improve the sustainability of operations. Since mining processes have the potential to impact a diverse group of environmental entities, and are of interest to a wide range of stakeholder groups, there is ample opportunity for the industry to operate more sustainably. Specifically, with improved planning, implementation of sound environmental management tools and cleaner technologies, extended social responsibility to stakeholder groups, the formation of sustainability partnerships, and improved training, a mine can improve performance in both the environmental and socioeconomic arenas, and thus contribute enormously to sustainable development at the mine level.     

Uneven Environmental Management: A Canadian Perspective

Advocates of community-based approaches to environmental management argue that by respecting local circumstances, skills, and concerns we may improve the prospects of achieving environmental sustainability; yet, within nation states such as Canada, environmental conditions, management and enforcement costs and capabilities, and power differentials within and among civic and public sectors may result in a highly differentiated capacity for environmental management across different localities and regions. This article draws on insights of political ecology to 1) create a conceptual framework that identifies key elements shaping regional environmental management regimes and to 2) undertake a comparative analysis to assess how elements interact to generate uneven management outcomes. I compare experiences of two Canadian biosphere reserves designated in 2000: Clayoquot Sound, BC; and Redberry Lake, SK. Analysis reveals that differences in governance and institutional capacities in the biosphere reserves are key to explaining uneven local outcomes. Where the public and civic sectors are strong, a robust and publicly vetted form of management will emerge. Where these sectors are weak and land is held as private property, environmental nongovernmental organizations can set the type and level of management, to the exclusion of effective civic and state involvement. This result may improve environmental sustainability but hinder social sustainability of a management regime and raises questions about the efficacy of community-based management.     

Innovation in the minerals industry: Australia in a global context

The pattern of innovation in the global minerals industry is changing as the industry becomes increasingly globalised. In this paper, we look at the structure of innovation in the industry and the drivers of change. We first consider the broad international trends and then examine these more closely with special reference to the Australian industry. Issues addressed include the apparent decline in corporate research and development spending, changing patterns in research collaboration and outsourcing, and the uptake of information and communication technologies in the industry. We also look at the potential implications of these trends for step-change technological developments and at the role of technological innovation in the future development of the industry.     

Policy Windows, Policy Change, and Organizational Learning: Watersheds in the Evolution of Watershed Management

Employing in-depth, elite interviews, this empirical research contributes to understanding the dynamics among policy windows, policy change, and organizational learning. First, although much of the research on agenda setting—how issues attract enough attention that action is taken to address them—has been conducted at the national scale, this work explores the subnational, regional scale. With decentralization, regional-scale environmental decision-making has become increasingly important. Second, this research highlights the role of policy windows and instances of related organizational learning identified by natural resources managers. Having practitioners identify focusing events contrasts with the more typical approach of the researcher identifying a particular focusing event or events to investigate. A focusing event is a sudden, exceptional experience that, because of how it leads to harm or exposes the prospect for great devastation, is perceived as the impetus for policy change.     

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.     

Process intensification in the textile industry: the role of membrane technology

Process intensification is a concept that was recently introduced in the chemical industry for the purpose of reducing environmental emissions, energy consumption and materials consumption. The principle of process intensification can be used in related industries as well; textile finishing is an exemplary activity where it may have a significant long-term added value. Membrane technology can be a key factor in the recycling and reuse of energy, water and chemicals. In this paper, an integral approach for treatment of aqueous process streams in the textile finishing industry is proposed. The proposed process includes microfiltration pretreatment of used finishing baths, followed by a dual nanofiltration (NF) unit. These can be operated at elevated temperatures so that no further energy is needed for preheating of recycle streams. In the proposed treatment scheme, the first of the NF units uses a loose nanofiltration membrane that retains most of the organic fraction but not the dissolved salts. The second unit uses a tight nanofiltration membrane, which produces a permeate fraction that can be directly reused, and a concentrated brine that is fed to a membrane crystallizer. In this unit, salts are recovered and recycled for use in new dye baths. The concentrate stream from the first NF unit is fed to a membrane distillation unit, where the high temperature is advantageously used for further concentration. The remaining fraction is not reusable, given the fact that most dyes are hydrolyzed after exhaustion of the bath, but has a significant energetic value, which can be utilized for compensation of energy losses and preheating of suppletion water, by using an incineration process with energy recovery. The concept was not tested experimentally, but a simulation for a 500 m3/d production unit shows that it is feasible, although modifications may be necessary depending on the nature of the finishing baths. Furthermore, the membrane choice in the first NF unit is a critical aspect.     

Fuelwood Prices in India: Policy Implications

The price of fuelwood has been increasing at a rate higher than that of the consumer price index in most of the major urban centres of India. Today, in terms of cost per unit of energy delivered, fuelwood is more than twice as expensive as kerosene for cooking. This has immense public policy implications. A number of complementary policy interventions are needed so that forests can be saved and the stability of energy supplies can be achieved in developing countries.