Taxation of uranium mining in Canada and Australia

The objective of this paper is to compare the nature of the taxation schemes facing uranium mine operators in Australia's Northern Territory and in Canada's Province of Saskatchewan. The findings demonstrate that, although the Canadian system appropriates up to 85% of incremental sales revenue, it is extremely sensitive to industry profitability. Its Australian counterpart is, in contrast, a regressive scheme which, at the current selling price of yellowcake, captures a significantly larger proportion of available economic rent.     

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.     

Critical analysis of the waste management performance of two uranium production units in Brazil--part II: Caetite production center

This paper discusses the environmental waste management of the Heap-Leach Uranium Production Facility of Caetité located in a semi-arid region in Brazil. A comparison is made with the first uranium production site of the country located in Poços de Caldas. It is demonstrated that differences in the operational process along with different environmental conditions can lead to different impacts. In the present case groundwater is the potential most sensitive environmental medium despite the well-established consensus in the literature that radon and aerosol emissions may turn-out to be the most relevant environmental aspects of an installation located at this type of region. Most of the ²²⁶Ra content in the ore remains in the leached ore that is deposited with the waste rock. A lack in appropriate prediction of the hydrological balance has been causing unanticipated emissions of liquid effluents into the environment. Chemical treatment of this effluent may be needed. Contamination of groundwater in the short term by the waste ponds is not to be expected but it can be a relevant issue in the long term. As a consequence, careful closure schemes will need to be put in place. Finally, the overall costs with remediation in the Caetité production center are lower than those observed at the Poços de Caldas mining site.     

Small-scale mining in China: Assessing recent advances in the policy and regulatory framework

This paper explores the background of a proposed revision to the Mineral Resources Law of China, why and how the law was amended in the past, its salient features and objectives. Of equal importance is an analysis of how this national law, with its attendant regulations and policies, formed the basis for the growth and continued development of China's small-scale mining industry. The Xiaoqingling Gold Mountain case study is shown to justify the necessity and feasibility for formalizing and consolidating small-scale mines in China, and to some extent, the success of the nation-wide ASM resource consolidation policy at a local level.     

Effectiveness of Voluntary Habitat Stewardship in Conserving Grassland: Case of Operation Burrowing Owl in Saskatchewan

There have been no published performance evaluations of nongovernmental, voluntary habitat stewardship programs. The Operation Burrowing Owl (OBO) stewardship program, initiated in 1987, was evaluated for its effectiveness in conservation of grassland habitat during 1986–1993. The 108 OBO sites from 1987 to 88 and 98 randomly selected non-OBO sites that were grassland in 1986 in the Regina-Weyburn, Saskatchewan study area were classified by size and agricultural soil suitability. By 1993, 41 (38%) of the 108 OBO sites had been withdrawn from the program. The 1986 area of grassland was compared with grassland area calculated from digitized 1993 LANDSAT imagery. A correction for satellite inaccuracies was determined. Grassland retention in 1993 was significantly higher at OBO sites (66%) than at random sites (49%), demonstrating that the OBO voluntary program effectively conserved habitat. Also, grassland retention was significantly lower on sites with better agricultural soils, and for sites <12 ha in size. Site type (OBO or random), size and their interaction, followed by agricultural soil suitability, had the greatest effects on grassland retention. During an era of accelerated grassland loss, OBO strongly and positively (statistically significant) affected conservation of grassland sites most at risk: sites <12 ha in size and with good to excellent agricultural soils. This suggests that grassland conservation efforts focus on vulnerable sites (small size and/or good agricultural soils) to provide nesting habitat for burrowing owls. Our study demonstrates that a voluntary stewardship program can significantly increase conservation of habitat.     

The economics of uranium demand

The major characteristics of the demand for uranium are identified, and a number of factors which determine the actual level of uranium requirements of the nuclear power industry are discussed. Since the role of inventories is central to the process of short-term price formation, by comparing projections of uranium production and apparent consumption, the relative level of total inventories is calculated and an assessment is made of its likely impact on the uranium market during the 1980s.     

The uranium and nuclear industries in China

This article reviews the available information on the uranium industry and the beginning of nuclear power in China. Few details of China's uranium industry have hitherto been published in the West. The broad conclusions reached are that China is faced with severe energy shortages for the foreseeable future; nuclear power will help to solve this problem but the timing and extent of its contribution are uncertain. The central question of civil nuclear policy is whether or not to use imported technology, although satisfactory development of the uranium industry probably will require foreign assistance. The principle conestraint in this regard is foreign exchange. To help overcome this problem the Chinese are now, for the first time, offering uranium on the international market.     

Efficiency in Welsh coal mining: A comment

Comparison of labour productivities and wage-to-price ratios suggests that the Coal Board's behaviour was not profit-maximizing. This does not make the use of production functions to determine optimal scale very relevant. In particular, the current debates about efficiency and closures cannot be approached solely or mainly from production function analysis.     

Building future nuclear power fleets: The available uranium resources constraint

According to almost all forward-looking studies, the world′s energy consumption will increase in the future decades, mostly because of the growing world population and the long-term development of emerging countries. The effort to contain global warming makes it hard to exclude nuclear energy from the global energy mix.     

Integrating Strategic Environmental Assessment with Industry Planning: A Case Study of the Pasquai-Porcupine Forest Management Plan,Saskatchewan, Canada

Strategic environmental assessment (SEA) is gaining widespread recognition as a tool for integrating environmental considerations in policy, plan, and program development and decision-making. Notwithstanding the potential of SEA to improve higher-order decision processes, there has been very little attention given to integrating SEA with industry planning practices. As a result, the benefits of SEA have yet to be fully realized among industrial proponents. That said, SEA practice is ongoing, albeit informally and often under a different label, and is proving to be a valuable tool for industry planning and decision-making. Based on a case study of the Pasquai-Porcupine forest management plan in Saskatchewan, Canada, this paper illustrates how an integrated approach to SEA can contribute to industry environmental decision-making and can enhance the quality and deliverability of industry plans.     

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.     

Innovation for sustainable development in artisanal mining: Advances in a cluster of opal mining in Brazil

The objective of this article is to understand how the promotion of clusters of small economic agents in the gem sector has brought some improvements in the economic, social and environmental conditions in the mining sector and activities related to it. The research provides policy and theoretical contributions to the field of gem production, as well as enhances understanding of the under researched opal production in Brazil. It argues that government funding and technical support dedicated to the development of mining clusters, i.e. working with small economic agents as a whole and not individually, could promote not only more economic development, but also effectively incorporate social and environmental issues, such as workers safety, water management and tailings recycling. The argument is based on an evaluation of environmental, economic, social and institutional aspects of the opal mining cluster in Pedro II municipality, Piauí state. The results suggest that some formalisation of existing practices and adequate policies have triggered innovation with some positive effects on the performance of artisanal mining. Nevertheless, there are indications that if decision-makers plan to make this cluster more sustainable, they will have to include other issues in the debate including developing substituting economic activities.     

Strengthening artisanal mining research and policy through baseline census activities

Over the past 10–15 years, several governments have implemented an array of technology, support‐related, sustainable livelihoods (SL) and poverty‐reduction projects for artisanal and small‐scale mining (ASM). In the majority of cases, however, these interventions have failed to facilitate improvements in the industry's productivity and raise the living standards of the sector's subsistence operators. This article argues that a poor understanding of the demographics of target populations has precipitated these outcomes. In order to strengthen policy and assistance in the sector, governments must determine, with greater precision, the number of people operating in ASM regions, their origins and ethnic backgrounds, ages, and educational levels. This can be achieved by carrying out basic and localized census work before promoting ambitious sector‐specific projects aimed at improving working conditions in the industry.     

Technology,managerial, and policy initiatives for improving environmental performance in small-scale gold mining industry

This paper reviews a series of strategies for improving environmental performance in the small-scale gold mining industry. Although conditions vary regionally, few regulations and policies exist specifically for small-scale gold mining activity. Furthermore, because environmental awareness is low in most developing countries, sites typically feature rudimentary technologies and poor management practices. A combination of policy-, managerial- and technology-related initiatives is needed to facilitate environmental improvement in the industry. Following a broad overview of these initiatives, a recommended strategy is put forth for governments keen on improving the environmental conditions of resident small-scale gold mines.     

Health and environmental assessment of mercury exposure in a gold mining community in Western Mindanao, Philippines

The small-scale gold mining activities using mercury began in the late 1980s in Sibutad, Western Mindanao. It is located very near the Murcielagos Bay with tailing ponds directly discharging into bodies of water. This cross-sectional study aimed to determine the health and environmental effects of gold mining activities on the community. Residents were randomly selected and classified into two groups, namely, the directly exposed and indirectly exposed populations using a set inclusion criteria. Complete medical and laboratory examinations were performed. Environmental and biologic samples were collected for total mercury and methylmercury determinations. The results showed that the directly exposed group had significantly higher mean blood total mercury and methylmercury levels in comparison with the indirectly exposed population. Although there were no significant differences between hair total mercury and methylmercury levels, there was a trend for higher levels of these biomarkers among the directly exposed residents as compared with the unexposed group. The absence of statistically significant differences may be attributable to the small sample size. Ambient air quality monitoring for mercury exceeded the allowable levels. However, levels of mercury in drinking water and sediments were within allowable limits. Frequency of gastrointestinal complaints was significantly associated with elevated hair methylmercury levels (p=0.02). Also, there appears to be a trend towards higher blood total mercury levels and frequency of gastrointestinal complaints (p=0.09). An interesting finding in this study was the increasing incidence of elevated diastolic blood pressure with elevated hair total mercury levels (p=0.07). Mercury storage at home is a risk factor.     

Long-term leaching of uranium from different waste matrices

A semi-dynamic leaching test was carried out for metallurgical wastes and ore samples from the uranium and copper mining industry over a 142 day period using distilled water and 0.1N NaNO(3) as solvents. Laser fluorimetry was used as the analytical technique to determine the total uranium content in the leachates. The cumulative leach fraction (CLF) of uranium release from the samples was calculated to be 0.22, 0.22, 0.07 and 0.39% for rock, uranium tailings, copper kinker ash samples and copper tailings respectively using distilled water as solvent and 0.31, 0.27, 0.05 and 0.59% for the same matrices using 0.1N NaNO(3). The release of mobile uranium fraction was very slow, being faster in the initial stage and then attained a near steady state condition. The diffusion coefficient and bulk release of uranium from the samples have been calculated. The processes governing the release of uranium from these matrices have been identified to be surface wash-off and diffusion. Hence the use of weak solvents (leach out the mobile/exchangeable fraction of uranium) under semi-dynamic conditions aids the determination of leaching parameters and identification of the leaching mechanism for mobile uranium fraction from different matrices by slow leaching processes.     

The challenges of sustainability in mining regions: The coal mining region of Santa Catarina, Brazil

Throughout history, mining communities have invariably found themselves striving for a good quality of life and a long‐term future. In the 21st century, problems of maintaining the economic vitality of mining regions are now compounded by concerns about the biophysical integrity of the local environment. In regions of the world where the economic viability of the resource is marginal and achieving a reasonable quality of life is a daily struggle, sustainable mining may seem to be a dubious prospect at best. Yet the twin imperatives of global political forces and burgeoning environmental concerns are requiring industry, governments and other interests to re‐conceptualize the way in which mining takes place in communities. Although mining itself may not be seen as an industry that contributes to the achievement of environmental objectives, it could — with careful planning — be used as a tool to foster a more sustainable and healthier community. This argument is considered in the context of the coal mining region of Santa Catarina, Brazil.     

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.     

Performance assessment of mining operations using nonparametric production analysis: A bootstrapping approach in DEA

This paper presents a Data Envelopment Analysis (DEA) model combined with bootstrapping to assess performance in mining operations. Since DEA-type indicators based on nonparametric production analysis are simply point estimates without any standard error, we provide a methodology to assess the performance of strip mining operations by means of a DEA bootstrapping approach. This methodology is applied to a sample of fifteen Illinois strip coal mines using publicly available data (Thompson et al., 1995). The applied approach uses a mixed mine environmental performance indicator (MMEPI) that is derived by means of a VRS DEA environmental technology treating overburden as an undesirable output under the weak disposability assumption, and we compare this measure with a traditional output-oriented mine performance indicator (MPI) omitting overburden. Although omitting undesirable output results in biased performance estimates, these findings are based on sample specific results and indicate this bias is not statistically significant. The confidence intervals derived by the bootstrapping of the proposed MMEPI point estimates indicate that significant inefficiency has taken place in the analyzed sample of Illinois strip mines.     

The role of co-products in stabilizing the metal mining industry

The objective of this paper is to test the hypothesis that cyclical metal mining activity is more stable when multi-metal products are produced. A theoretical short-run supply curve for a metal is developed showing by-product, co-product, and main product behaviour. This curve is used to illustrate co-product pricing trends that are indicative of different cyclical behaviour patterns. The non-parametrical sign test is used to test co-product price trends for the US metal mining industry. The results indicate that multi-metal production stabilizes the mining industry in the short run but not in the long run.