Sustainable Minerals Operations in the Developing World (Geological Society Special Publication No. 250)

247 Pages·2005·28.03 MB·English

by  B. R. Marker

Sustainable Minerals Operations in the
Developing World
Geological Society Special Publications
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It is recommended that reference to all or part of this book should be made in one of the following ways:
,REKRAM B. R., ,NOSRETTEP M. G. & McEvoY, F. (eds) 2005. Sustainable Minerals Operations in the Developing
World. Geological Society, London, Special Publications, 250.
,NOSNEHPETS M. & PENN, I. 2005. Capacity building of developing country public sector institutions in the natural
resource sector. In: MARKER, B. R., ,NOSRETTEP M. G. & McEvou F. (eds) 2005. Sustainable Minerals Operations in
the Developing World. Geological Society, London, Special Publications, 250, 183-192.
GEOLOGICAL SOCIETY SPECIAL PUBLICATION NO. 250
Sustainable Minerals Operations in the
Developing World
DETIDE YB
B. R. MARKER
eciffO of eht Deputy Prime Minister, KU
M. O. PETTERSON, F. McEvoY and M. H. STEPHENSON
Survey, Geological British KU
5002
Published yb
ehT Geological yteicoS
nodnoL
THE GEOLOGICAL SOCIETY
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Contents
,REKRAM B. R., ,NOSRETTEP M. G., McEvoY, F. & ,NOSNEHPETS M.H. 1
Sustainable Minerals Operations in the Developing World" introduction
,NOSRETTEP M. G., ,REKRAM B. R., McEvov, F., ,NOSNEHPETS M. & ,YEVLAF D.A. 5
The need and context for sustainable mineral development
,SBBOH J. C. A. Enhancing the contribution of mining to sustainable development 9
,SDRAHCIR J. P. The role of minerals in sustainable human development 25
,NOSIRRAH D. J., ,TTEGDIF S., ,TTOCS P. W., ,ENALRAFCAM M., ,LLEHCTIM 35
P., LYRE, J. M. & WEEKS, J. M. Sustainable river mining of aggregates in
developing countries
,TTOCS P. W., ,ERYL J. M., ,NOSIRRAH D. J. & ,HTROWDOOLB A. J. Markets for 47
industrial mineral products from mining waste
,NUHSE P. A. Sustainable small-scale gold mining in Ghana: setting and 61
strategies for sustainability
,EBMAYN I. A. & ,AYMAWAK V. M. Approaches to sustainable minerals 73
development in Zambia
,SEIVAD T. C. & ,ONASO O. Sustainable mineral development: case study 87
from Kenya
D'SouzA, K. P. C. J. Artisanal and small-scale mining in Africa: the poor relation 95
,LLEHCTIM C. J. FarmLime: low-cost lime for small-scale farming 121
,RATHKA A. Mineral resources and their economic significance in national 127
development: Bangladesh perspective
,NIASUH V. Obstacles in the sustainable development of artisanal and small-scale 135
mines in Pakistan and remedial measures
,ARHSIM P. P. Mining and environmental problems in the Ib valley coalfield 141
of Orissa, India
,AILOT D. H. & ,NOSRETTEP M. G. The Gold Ridge Mine, Guadalcanal, 149
Solomon Islands' first gold mine: a case study in stakeholder consultation
,OHLAVRAC J. F. & ,AOBSIL J. V. Construction raw materials in Timor Leste and 161
sustainable development
,NOSNEHPETS M. n. & PENN, I. E. Capacity building of developing country 185
public sector institutions in the natural resource sector
iv STNETNOC
,SDLEIHS D. J. & ,RALOS S. V. Sustainable development and minerals: measuring 591
mining's contribution to society
,NAGER'O B. & ,SELOM e. System dynamics modelling: a more effective tool for 213
assessing the impact of sustainable development policies on the mining industry
NAV ~lED ,NELUEM M. J. Sustainable mineral development: possibilities 225
and pitfalls illustrated by the rise and fall of Dutch mineral planning guidance
,EROMTIHW A. The emperor's new clothes: sustainable mining? 233
Index 243
Sustainable Minerals Operations in the Developing World:
introduction
B. R. MARKER ,a M. G. PETTERSON ,2 F. MCEVOY 2 & M. H. STEPHENSON
1Office of the Deputy Prime Minister, Eland House, Bressenden Place, London, SW1E 5DU, UK
2British Geological Survey, Nicker Hill, Keyworth, Nottingham, NG2 SGG, UK
Sustainable development requires an appropriate & Osano, D'Souza, Eshun, Mitchell, Nyambe
balance between social, economic and & Kawamya), Asia (Akhtar, Hussain,
environmental well-being, now and for the Mishra), the Pacific (Carvalho & Lisboa,
future. Since most minerals are non-renewable Tolia & Petterson, Whitmore), and Jamaica
resources, sustainability of supply can only be (Harrison et aL). Some comparative material
addressed by extracting, processing and distri- from parts of Europe is also included (Scott
buting raw materials in the least environmen- et al., Shields & Solar, nav der Meulen).
tally damaging ways, using minerals wisely,
and recycling as much as possible. However,
there also is significant scope for improved Scale of extractive operations
sustainability in terms of economic and social
Minerals operations in the developing world are
aspects.
varied. Papers in this report consider all scales
Minerals are essential raw materials but high-
including:
quality deposits have become depleted in many
developed countries. These countries have (a) major underground and open-pit mines run
increasingly turned to developing countries for by international corporations, which are
supplies and it is in these that most high-quality particularly vulnerable to changes in world
untapped future prospects remain. For countries commodity prices and investment oppor-
with limited export opportunities, minerals are tunities (Richards, Tolia & Petterson,
often a mainstay of the domestic economy. ;)eromtihW
However, low selling prices may reflect limited (b) substantial mines and quarries operated by
environmental regulation and low wages. This major national firms (Mishra); and
can lead to charges that the rich countries are (c) smaller scale mines and quarries run by
exporting their environmental damage to, and local firms (especially Harrison et al.,
exploiting, poorer countries. As more countries Mitchell), and informal or 'artisanal' min-
develop, the global demand for supplies of essen- ing, often undertaken without regulatory
tial raw materials increases, and resources will be permission by local people (especially
depleted more quickly. Therefore, sustainable D' Eshun, Souza, .)niassuH
minerals supply from the developing countries
Carvalho & Lisboa, and Stephenson & Penn
is an important global issue.
concentrate on medium-sized to artisanal oper-
In this Special Report, general aspects of sus-
ations, while Akhtar, Nyambe & Kawamya,
tainable minerals operations in the developing
and Davies & Osano consider all three levels.
world are reviewed by Petterson et al., Hobbs,
It is a fact of life that significant numbers of
and Richards while the remaining papers con-
people have to work in artisanal mining
sider specific issues in more detail. Hobbs, in
because of a lack of any other means to earn a
particular, emphasizes the need to give proper
livelihood (Hussain, Eshun). D'Souza makes it
weight each to human capital, financial capital,
clear that artisanal mining can support very
manufactured capital, and environmental capital
large numbers of people, directly or indirectly,
in any full analysis as a context for sustainable
and fully or seasonally, in areas that are other-
development and effective aid.
wise at poverty level. However, he makes it
clear that artisanal mining is not a single
phenomenon and may range from ephemeral to
Geographical coverage
permanent operations. Because of this wide
The included papers highlight the diversity of range in scale, investment, plant and machinery,
sustainability issues in parts of Africa (Davies techniques, education, and training, there can be
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2 NOITCUDORTNI
no 'one size fits all' solution to problems of sus- local mining industries, while attempting to
tainability. A particular problem can be compe- diversify and extend operations to contribute to
tition for land between legal major operations rebuilding a post-conflict economy ohlavraC(
and informal artisanal mining (Davies & & Lisboa).
Osano, .)nuhsE Despite such limitations, there may be oppor-
tunities for diversification, for instance in the
gemstone and industrial minerals sectors in
Economic aspects Zambia (Nyambe & Kawamya), development
of niche products such as agricultural lime
There is often an emphasis in developing (Mitchell), or greater use of mineral wastes
countries on attracting international investment where processing costs permit. While mining
in large-scale minerals operations, rather than wastes containing rare and valuable minerals
developing smaller scale enterprises to meet are attractive already, at least to artisanal
local needs, because of lack of local investment miners, there is scope for more use of lower
capital (Akhtar), the need for foreign exchange priced commodities in local economies (Scott
(Nyambe & Kawamya), and lack of internal et al. ).
infrastructure or of local markets, which inhibit
smaller operations in remote locations
(Hussain, Davies & Osano, Carvalho & Social aspects
Lisboa). Therefore, the contribution to GDP There are strong social issues surrounding sus-
from minerals operations, while valuable, is tainable minerals operations in the developing
often lower than it could be (Hussain). In par- world. Medium- to large-scale mining was
ticular, there are limited facilities for 'value largely undertaken by companies from the devel-
added' manufacturing, so much of the 'down- oped countries but often operating to lower stan-
stream' wealth is realized in other economies dards in terms of matters such as health and
(D'Souza, .)niassuH safety than they would in their own countries,
In respect of large-scale mining enterprises, an and paying low wages, leading to criticisms of
important factor is the attractiveness or otherwise exploitation. In recent years, many major compa-
of countries to international mining companies. nies have taken steps to address these issues (see
The ambient regulatory and fiscal regime may below). Even so, major mining proposals can
deter or encourage exploration and development. significantly affect people through displacement
There may be an economic need for governments of communities (Mishra, .)eromtihW
to take steps to liberalize administrative pro- However, small-scale and artisanal mining
cesses, but that may work counter to sustainable was, and remains, a dangerous activity linked
development (Nyambe & Kawamya) and the to poverty and ill health (Eshun), the exploita-
interests of indigenous peoples in particular tion of women, and use of child labour
(Whitmore). (D'Souza). Tensions may exist between major
Particular problems for small-scale and artisa- minerals operations and small-scale miners who
nal mining include: compete for the same land (Richards).
There is a clear need for support, training,
(cid:12)9 inability to borrow money because of lack of
collateral (D'Souza, ;)niassuH education and, overall, holistic capacity building
(D'Souza, Eshun, Hussain, Nyambe &
(cid:12)9 lack of training in marketing skills such that
,aymawaK Stephenson & Penn) including
middle men buy cheaply and make the
profit ;)niassuH( engagement with government, industry, non-
governmental organizations (NGOs), landowners
(cid:12)9 lack of clear business plans and weak 'project
and, crucially, local communities and their tra-
ownership' (Stephenson & Penn); and
ditional authorities. However, that requires, in
(cid:12)9 lack of technical expertise, especially on
turn, willingness and commitment on the part
mineral resource evaluation and processing,
of miners and their dependents (Eshun). A par-
and availability only of outdated equipment
,niassuH( Davies & )onasO ticular problem is the lack of materials in local
languages (Hussain). However, overall, views
In these circumstances, a crucial step towards of stakeholders should influence the ways in
improvement is the development of appropriate which aid and assistance are provided (Hobbs,
funding and support models (Nyambe & nosnehpetS & Penn) and whether, or not,
Kawamya) to secure proper investment in mining should proceed .)eromtihW(
plant and equipment, alongside capacity build- Holistic capacity building is important at all
ing. However, circumstances are sometimes extr- levels - government, industry, landowners
eme, for instance when trying to rebuild small communities. But the necessary information,
NOITCUDORTNI 3
education experience and training is impairedb y Richards emphasizes the need for all mining
insufficient budgets (Stephenson & Penn). operations to internalize environmental costs,
Stakeholder views should influence the way but, while environmental management schemes
that aid is provided. are now commonplace in large companies,
Communication is also of importance in rela- there is a long way to go before this can be
tion to proposed major mining. For example, carried through to smaller formal operations
Tolia & Petterson review issues involved in com- (Richards). Meanwhile, in the artisanal sector,
munity consultation on a major mining proposal it is probably not possible to make significant
in a tribal area of the Solomon Islands with no environmental progress until the social and eco-
previous experience of the industry and different nomic aspects have been addressed (Nyambe
land ownership concepts. Negotiations were & Kawamya).
undertaken with all stakeholders and agreement
was secured on the basis of a compensation
Regulation and governance
'package' including money at the outset and
during the life of the operation, provision of The regulatory situation is very variable. This
relocation and commercial land, social and edu- ranges from:
cational and infrastructure facilities, and, wisely,
the basis for investment in skills and occupations
(a) a lack of public policy in post-conflict situa-
for the post-mining phase. In contrast, Whitmore
tions (Carvalho & Lisboa);
gives examples where corporate policy may
(b) old legislation that was fashioned for colo-
have been poorly communicated or lacking in
nial mining, essentially favouring foreign
flexibility.
companies, rather than modern circum-
stances (Eshun), and which may have
little regard for environmental issues
Environmental aspects (Davies & Osano); or
(c) new nationlaalw s thaatr e not transposed into
The environmental impacts of mining and quar-
regional or local law, are difficult to enforce
rying, including land degradation and emissions,
in remote and difficult terrain, and which
are well known and have been particularly severe
may be cumbersome, 'non-transparent' and
where environmental management systems and
restoration procedures are not in place (Mishra). poorly applied due sometimes to the in
experience of officials (Hussain) and which
In recent years many major mining corpor-
may favour corporate interests over those
ations have re-examined their operations in
of local people (Whitmore).
terms of corporate and social responsibility
(Richards), for instance through the Global
Mining Initiative of the 1990s and World Bank While there have been some attempts to make
Extractive Industry Review of 2004. This has artisanal mining illegal, these regulations, in par-
led to the recognition of the importance of ticular, are seldom enforceable and stand in the
good governance and observance of human way of dialogue and improvement (Davies &
rights in this sector, as well as introducing Osano). Therefore, an important aspect is the
social and environmental safeguards (Hobbs). need to regularize illegal artisanal mining
However some groups representing indigenous operations so that the lives of miners and
peoples feel that the views of those people their dependents can be improved and concepts
have often been overlooked in this process of sustainability can begin to be introduced
(Whitmore). There are also encouraging (Eshun, Nyambe & Kawamya, Davies &
examples within developing countries of national Osano).
operations making strong efforts to improve A paper from van der Meulen sets out recent
environmentalp erformance (Mishra). changes to Dutch national mineral planning
To take a specific example, Harrison et al. practices to illustrate that well-intentioned
review practices in river mining of sand and approaches to the supply of construction aggre-
gravel for construction in Jamaica. These opera- gates are not necessarily successful when the
tions give rise to bank erosion, increased flood- public opposes extraction. That is a common
ing and damage to ecosystems. There is a clear feature in developed countries, but it is less
need for environmental impacts assessment, a widely appreciated that it can also be a factor
sound code of practice, and technical improve- in developing countries (Davies & Osano).
ments. However, it will not be easy to implement Caution is needed in attempting to transfer
these without a significant capacity-building experiences in minerals planning from one
initiative. place to another.