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The Impacts of Mining on Arctic Environment and Society from Corporate Social Responsibility and Sustainable Development Perspectives

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The Impacts of Mining on Arctic Environment and Society from Corporate Social Responsibility and Sustainable Development Perspectives Department of Physical Geography The Impacts of Mining on Arctic Environment and Society from Corporate Social Responsibility and Sustainable Development Perspectives The Case of Jokkmokk (Kallak) Iron Mines in Northern Sweden Yohannes Assefa Hassen Master’s thesis MA 36 Environmental Management and Physical Planning, 2016 30 Credits Source for Cover Photo and Description: The cover picture portrays Rapadalen in Sarek’s National Park Sarek (http://da.wikipedia.org/wiki/Sarek_Nationalpark) by fitting it with another image of abandoned mined area taken to visualize about how mining with low conservation value or absence of mine reclamation seems to cause long-lasting and damaging effects on the landscape and environment. And hence, the incorporation of such scenario analysis based on this imaginary vision may create awareness of what is going to happen in case of the possible future outcome of mining areas in mountain region of Arctic in northern Sweden. This in turn may have positive effect on the present generation to be anxious and care about the future generations through integrating social and environmental concerns in mining industry and working towards achieving sustainable development to mining operations through approach of CSR and maintaining stakeholders’ perspective and optimize the benefits. Yohannes Assefa Hassen 2 Preface This Master’s thesis is Yohannes Assefa Hassen’s degree project in Environmental Management and Physical Planning at the Department of Physical Geography, Stockholm University. The Master’s thesis comprises 30 credits (one term of full-time studies). Supervisor has been Peter Schlyter at the Department of Physical Geography, Stockholm University. Examiner has been Ingrid Stjernquist at the Department of Physical Geography, Stockholm University. The author is responsible for the contents of this thesis. Stockholm, 29 April 2016 Steffen Holzkämper Director of studies 3 Acknowledgment I would like to thank my advisor Peter Schlyter and Ingrid Stjernquist for their advice while writing my thesis. I would also like to thank Maria Söderholm at Umeå University for her help and support; as well as Anna Säfvestad Albinsson, Biofuel Region, who helped me to communicate with those individuals in Jokkmokk and Luleå to whom I am grateful as they have been resourceful, cooperative and invaluable to me and willingly shared their opinions, views, and experience with me, and their precious time during the process of interviewing. Dedication I would like to express my deepest appreciation to my beloved wife Genet Kassahun who was always my support. I also want to thank my most loved younger brothers, Ermias Hailu and Endrias Hailu as they have been great support and energy to me; as well as my children whom I loved most, Hallelujah Yohannes, Mikael Yohannes, and Matthias Yohannes who made my life meaningful and feel alive. 4 Abstract Extractive industry in Arctic is controversial due to the ecosystems and communities in the region are highly sensitive to natural and anthropogenic disturbances as it is one of the world’s global change hot-spots, as well as its uniqueness and distinctive social and ecological significance. As mining industry has developed into sophisticated operations, yet the basic causes of environmental pollution and degradation and impacts on the natural environment of the Arctic region remain unchanged. Mining in this environment may be faced with dilemmas as the result of adverse impacts they may cause and their escalating environmental footprints; as well as reactions from pressure groups and indigenous peoples, which in turn may have a detrimental effect on their reputations and financial performances. This may further have social, environmental and political risks in their present and future roles and operations. Thus, the mining industry ought to recognize the impacts in their operations, and are required to work towards minimizing the adverse impacts and maximizing the substantial benefits of their actions on the environment, the community and local people. Corporate social responsibility (CSR) and sustainability are supposed to be two of several principles used to examine the social and environmental endeavours and results of business activity. The aim of this thesis is to assess the environmental and social impacts associated with major mining operations Arctic region, and to conduct preliminary review of the perspectives of CSR and sustainable development in countries across the Arctic region and subarctic, especially the United States of America (USA), Finland and Sweden. As well as conduct comparative study and analysis on how corporate entities in these countries dealing with the two theoretical frameworks and how they are approached in practice and managed, and information are disclosed. The study also concentrates on how these issues can be handled in the case of Jokkmokk (Kallak) Iron Mines in Sweden. Different methodological approaches and techniques have been adopted in this study. The literature review is supplemented by interviews with strategically important stakeholders. The Environmental Impact Assessment (EIA) statement is reviewed and conceptual modeling is also employed to demonstrate the dynamic effects and consequences of the Kallak North Iron Mines. The findings in this thesis propose that the corporations’ in the USA show differences from those of the European countries in defining and addressing social and environmental concerns; as well as managing CSR and sustainability issues and communicating them as there are qualitatively different practices and approaches to CSR in these countries. In conclusion, main points are suggested as important recommendations entailing of some clear expectations to fulfill on how CSR and sustainability issues may be handled by extractive industry including the case of Jokkmokk (Kallak North) Iron Mines. Key Words: Mining Industry, Environmental Impacts, Socio-economic Impacts, Arctic Region, Corporate Social Responsibility (CSR), Sustainable Development, Environmental Impact Assessment (EIA), Stakeholders, the United States of America, Finland, Sweden, Jokkmokk (Kallak ) Iron Mines. 5 6 Table of Content 1. Introduction .......................................................................................................................... 11 1.1 Research Aim .................................................................................................................. 13 1.2 Research Questions .......................................................................................................... 13 1.3 Delimitation ..................................................................................................................... 13 1.4 Disposition ...................................................................................................................... 14 2. Methodological Approach..................................................................................................... 15 2.1 Methods for Data Collection, Interpretation and Analysis ................................................ 16 2.1.1 Literature Review .................................................................................................... 16 2.2.2 Interviews ................................................................................................................. 16 2.2 System Analysis: CLD construction ................................................................................. 17 2.3 Data Collection, Handling and Analysis ........................................................................... 17 3. Theoretical Background for Corporate Social Responsibility and Sustainable Development, as well as Impacts from Mining in Arctic Region ..................................................................... 18 3.1 Corporate Social Responsibility (CSR) - Synopsis ........................................................... 18 3.1.1 Definitions of CSR .................................................................................................... 18 3.1.2 Debates behind CSR Theories and Perspectives ........................................................ 20 3.1.3 Stakeholder Theory Definitions and Perspectives of Stakeholders ............................. 22 3.2 Theoretical Background on Sustainable Development ...................................................... 24 3.2.1 Sustainable Development and its Universal Definition .............................................. 24 3.2.2 Sustainable Development as Global Corporate Agenda ............................................. 24 3.2.3 Corporate Sustainability in Mining Sector ................................................................. 25 3.3 Background on the Environmental and Social Impacts from Mining in Arctic Region ...... 26 3.3.1 Arctic’s Environmental Sensitivity to Mining and Common Identified Impacts ....... 27 3.3.2 Potential Environmental Impacts Related to Mining in the Arctic Region .................. 28 3.3.3 Impacts of Mining on Landscape through Waste Disposal ......................................... 29 3.3.4. Impacts on Water System ......................................................................................... 30 3.3.5 Impacts of Mining on Air Quality ............................................................................. 31 3.3.6 Impacts of Mining on Biodiversity and Habitat ......................................................... 31 3.3.7 Impacts of Mining on Environment and Climate ......................................................
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