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.     

Practical and ethical considerations of agricultural research assistance for the Third World

The right to eat and to an adequate standard of living for everyone motivates agricultural research assistance to developing countries with the primary objective of assuring sufficient food supply. This article focuses on aspects of food production and related agricultural research with specific examples from animal production. It discusses ethics of agricultural research in light of the utilitarian theory and compares livestock production in developing and developed countries. Major reasons for low outputs of animal production in developing countries are identified, and the potential for increasing the productivity of original, extensive production systems is evaluated. The article reviews the current status of biotechnology in developing countries and discusses several advanced animal technologies. The conclusions emphasize the need to involve local professionals in all phases of research and technology transfer in developing countries, avoidance of research that may worsen the situation of the recipients, sustainability of production systems, and the need for detailed assessment of potential impacts of technology on recipients.     

Barriers to investment in third world mineral industries

This article looks at some of the barriers that have distorted the global flow of capital in the mining industry. The perceived threat of nationalization is discussed and Chile's expropriation of US copper mining companies in 1971 is examined. Political instability, leading not only expropriation but to loss of title, altered tax laws, and voided contracts, is also cited as a factor affecting investor confidence. Finally, inadequate infrastructure is regarded as a further barrier to development of Third World mineral industries.     

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.     

Imperatives for attracting investment and technology in the Indian mining sector

In India, the mineral resource inventory and the production of a large number of important minerals have registered significant increases during the last few decades. Yet the country continues to be a net importer of many high value and scarce minerals and metals, like gold, diamond, and several base metals. Exploration and development of the resources of these minerals are technology- and capital-intensive. To bring technology and capital through foreign direct investment (FDI) into the Indian mineral sector, it is imperative to lay stress on: accurate resource estimation and categorization, as well as realistic projection of the true values; rationalization of legislative measures based on R&D studies and reorganization of the implementation machinery; conducive tax structure; notification of acts and rules applicable to offshore mineral resources; time-frames for granting licences and leases; encouragement to labor productivity by rationalizing labor laws; reforms in the monetary system to increase market competitiveness of Indian minerals; and judicial reforms. FDI in the Indian mineral sector is important to firm up the knowledge-base of mineral resources and their optimum exploitation.     

Community-company relations in gold mining in Ghana

As a result of Structural Adjustment Programme from the 1980s, many developing countries have experienced an increase in resource extraction activities by international and transnational corporations. The work reported here examines the perceived impacts of gold mining at the community level in the Wassa West District of Ghana, Africa and discusses those perceived impacts in the context of globalization processes and growing multinational corporate interest in Corporate Social Responsibility (CSR). Interview data compared community members' perceptions with those of company representatives in three communities. The results indicate that communities held companies responsible for a series of economic, social, and environmental changes. While recognizing some of the benefits brought by the mines, communities felt that the companies did not live up to their responsibility to support local development. Companies responded by denying, dismissing concerns, or shifting blame. Findings from this work show that lack of engagement and action by government agencies at all levels resulted in companies acting in a surrogate governmental capacity. In such situations, managing expectations is key to community-company relations.     

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.     

Mining compatibility with other projects in Spain: Solutions and benefits

Mining activities are compatible with other activities in space and time if they are developed together and adapted to each other. If permits are required for two projects that are not considered to be compatible, the authorities will be forced to decide which one has prevalence. In the event of conflict or dispute, it is always preferable to attempt to seek compatibility between projects rather than waste time, effort and money on contesting the prevalence decision, as costly and lengthy lawsuits will only delay the development of both projects, with the resulting loss of business opportunities. In this article, technical solutions designed to achieve mining compatibility with other projects are described in terms of benefits and synergies for the projects and benefits for the government that avoid complex decisions and proceedings and optimize revenues.     

Household size and composition and implications for housing need in Kumasi,Ghana: a research note

A simple method of calculating the scale of housing need for Kumasi, Ghana, uses two likely variations in household size distribution and an overcrowding threshold of 3 p.p.r., and a measure of preference. The two household size distributions take account both of trends and of changes which may occur if and when new housing is provided. At that time, released from the current constraints, household formation along traditional lines may again be possible. The preferred supply equates households’ perceived need to their ability to pay at current rents. The resulting range of rooms required is wide but even the lowest need is so far in excess of supply that conventional approaches are self‐evidently inadequate and greater client involvement must be encouraged.     

Mining amid decentralization. Local governments and mining in the Philippines

In recent years, as part of its neoliberal development paradigm, the Government of the Philippines has engaged in efforts to encourage extraction of the nation's mineral resources. The Philippines is also a country where decentralization has devolved substantial powers to local governments. Concern over potentially adverse environmental effects has led to opposition to mining by some local governments in the Philippines. This opposition has led to the withholding of consent to mining projects by local governments and, in some cases, the implementation of moratoriums banning mining. Central to this opposition have been the activities of civil society groups, and their collaboration with local governments. This collaboration has involved the drafting of legislation prohibiting mining and support of candidates for office who are opposed to mining. Collectively, Filipino local governments and civil society groups are examples of the concept of governance, a dispersed process wherein society manages itself for the betterment of all its members. For mining companies seeking to implement projects, it is no longer sufficient to have the consent of the national Government — that of local governance forces must also be considered.     

Assessing the impact of driverless haul trucks in Australian surface mining

Australia has been a leading mining nation and its mines continue to attract substantial investment due to its strong mineral endowment, mining tradition and high skills base. In recent years Australian mining companies have been facing higher labour costs, which need to be offset by other savings. Automating mine-site machinery offers one potential source of such savings.Underground mines pioneered automated technology largely for safety and mine accessibility reasons and to reduce operating costs. Yet these operations now represent a much smaller portion of the total ore tonnes mined due to the changing mining techniques meaning larger lower grade deposits are becoming economic. It appears the future of mine automation will be directed by surface mining as this maturing technology finds further applications above ground and in the next decade large scale open pit automation trials gain more momentum.This paper assesses the implications of introducing driverless haul trucks in a typical large remote Australian open-pit mine. Such automation will save employee and associated costs, increase operational productive hours and ultimately will reduce mine site workforce numbers. While there will be fewer jobs per mine, with reduced costs and higher productivity some previously uneconomic mines may again be profitable.The social implications of greater mine site automation are the reduction in population of remote mining towns and a decrease in the lower skilled labour requirements for the mining sector. There will be an increase in fly-in fly-out mining operations and companies will establish remote control centres for automated mines in larger cities. This may decrease overall labour requirements and so reduce employment in the sector; therefore, the government should be mindful of implementing policies that ensure a fair return on the economic rent of mineral leases.     

The grassroot development planning process: the role of physical planning in the rural environment

The concern of this paper is with the spatial consequences of development in a given rural setting and the way in which physical planning fits into the revival of a dying rural area, particularly in Third World Countries. It is based on experience derived from Dekinal in Benue State, Nigeria and endeavours to define a rural area by briefly discussing its characteristics and highlighting its problems. It proposes a comprehensive development planning process to induce development based on available resources.     

A training consultancy for an Ethiopian I.D.A. urban programme evaluated

The author contributed to a short ‘in service’ course for staff engaged on a World Bank upgrading project for Ethiopian housing. The project includes both the building of new houses by self‐build co‐operatives on the periphery of Addis Ababa, and the upgrading of a dense inner city area in conditions of acute deprivation. The paper is a highly personal account of the author's impressions of the value of such initiatives.     

Adaptation of local building materials — a key to rapid housing development in Nigeria

There are some experts who are dealing with research on locally made materials for building in the Ministry of Housing and Works in Nigeria. It has been discovered in the Ministry that lateriate clays can be fired and used for building even two‐storey buildings depending on the firing and the pressure (Ogunbamwo, 1975). The Ministry has constructed a block of bungalows of low‐cost housing units with mud at Ikoyi, off Kingsway Road. No one will know that these houses are mud houses if not at closer inspection. Unfortunately, no effort has been made to continue or improve on this laudable adventure in Nigeria.     

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.     

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

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

Little by little,inch by inch: Project expansion assessments in the Papua New Guinea mining industry

Social impact assessment (SIA) has traditionally been practiced as an ex-ante predictive tool in the context of regulatory approval by government agencies. This model of SIA developed by Burdge and others is based on ‘greenfields’ development, of a new project going in to areas where there are no, or relatively few, similar types of development. The International Principles of SIA signalled a conceptual shift in the practice of SIA where greater emphasis is placed on the assessment and management of social issues across the life-cycle of developments. In addition forms of cumulative impact assessment have been developed for contexts where more than one project is likely to impact on populations or communities. With these changes to the traditional models of impact assessment there is a need to clarify how and when dedicated phases of ‘assessment’ might be undertaken over the life-cycle of a development. In the context of the mining industry, SIAs are increasingly required by governments for incremental increases in the size or impact of these operations. This paper reviews the development and application of Project Expansion Assessments (PEAs) for two large-scale mining operations in Papua New Guinea. It argues that a different set of assumptions need to underlie the model of IA for such assessments, with more emphasis on trajectories rather than baselines, a critical evaluation and attribution of effects, and the incorporation of adaptive management tools into the process.     

The science of corporate social responsibility (CSR): Contamination and conflict in a mining project in the southern Ecuadorian Andes

In this article, I explain the role that scientific studies play in shaping collaboration and conflict over mining exploration in the Ecuadorian highlands. Toronto-based IAMGOLD conducted water quality studies to simultaneously fulfill legal obligations and secure support for drilling in an environmentally sensitive zone. With these studies, IAMGOLD generated collaborative relations with local authorities and university scientists. However, water quality studies were also used by dairy farmers to establish new connections for an opposition movement. The scientific studies enabled IAMGOLD and the dairy farmers to make competing claims about the responsibility for contamination of an important watershed. This article analyzes the conflict that resulted and challenges conventional wisdom that distinguishes a corporation's legal obligations from its voluntary CSR programs.     

Collecting data in artisanal and small-scale mining communities: Measuring progress towards more sustainable livelihoods

This short note discusses methodological obstacles to the collection of microeconomic data in artisanal and small-scale mining communities. International donor organizations are supporting policy efforts that enhance the contribution to poverty alleviation of this mining subsector. The design and evaluation of such policy interventions require data on income, expenditure, investment, and savings in mining households and communities. These data are difficult to come by. Incomes are variable; migrants may work far from home; miners often work informally and sometimes illegally; mining populations and communities are heterogeneous and transient; and miners have many reasons to distort information. Legalization and organization of miners in cooperatives would facilitate documentation and research. These processes, however, are beyond the control of the typical policy consultant or donor organization. On their part, these parties can adopt an alternative model of research. This model involves the community in project development, data collection, and monitoring. It emphasizes continuity, cultural diversity, trust building and learning. The data thus collected should provide a firm basis for programmes that promote more sustainable livelihoods in artisanal and small-scale mining communities.