Making Mining Sustainable: Overview of Private and Public Responses
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MINING AND SUSTAINABLE DEVELOPMENT 1 MAKING MINING SUSTAINABLE: OVERVIEW OF PRIVATE AND PUBLIC RESPONSES PETTER HOJEM, LULEÅ UNIVERSITY OF TECHNOLOGY Making Mining Sustainable: Overview of Private and Public Responses Published by Luleå University of Technology, 2014. Contents Abstract ......................................................................................4 4. Academic Research on Mining and Sustainable Development: An Introduction ...............23 Preface ........................................................................................5 5. Society’s Governance of Mining .........................................25 1. Background and Purpose .....................................................6 5.1. Ownership, access and sustainability ................................25 1.1. Study approach and limitations ...........................................7 5.2. Planning, permitting and public policy processes ...............26 1.2. Outline of report .................................................................7 5.3. Capturing and sharing benefits .........................................28 2. Sustainable Development and the Impact of Mining .........8 5.4. Mine closure process .......................................................29 2.1. The “Sustainable development” 5.5. Summary of trends: concept in the context of mining .........................................8 Moving from government to governance ...........................30 2.2. Who are affected by mining, and how? .............................10 6. Mining Company Sustainability Management ..................31 2.3. Economic effects of mining..............................................11 6.1. What influences company sustainability commitment? ......32 2.4. Environmental effects of mining .......................................12 6.2. Policies and management ................................................32 2.5. Social effects of mining ...................................................13 6.3. Stakeholder management ................................................33 2.6. Effects, synergies and trade-offs .......................................14 6.4. Social licence to operate ...................................................35 3. Reviewing Initiatives on Mining 6.5. Summary of trends: What counts, counts ..........................36 3 and Sustainable Development ...........................................15 7. Directions for Future Research ..........................................37 3.1. Introduction ......................................................................15 3.2. Public sector-oriented initiatives ........................................16 References ...............................................................................39 3.3. Company-oriented initiatives .............................................17 Consultations ..........................................................................43 3.4. Investor-oriented initiatives ...............................................20 3.5. General trends and effects of initiatives .............................21 Making Mining Sustainable: Overview of Private and Public Responses ABSTRACT Abstract The last decade has seen a large expansion of the has looked both from a societal and a company global mining sector as well as increased interest in perspective at how to improve sustainability through the sector’s short- and long-term economic, environ- the design and management of public policy process- mental and social effects. While concerns about an es, mining activities and stakeholder relations. The imminent shortage of metals and minerals have been literature indicates a growing need for companies to off-set by improved technology and the discovery go further than what legislation demands in order of new sources, focus today is on other sustainabil- to gain popular support, known as a “social licence ity challenges such as, for instance, access to land, to operate”. Future research should include more managing acid mine drainage, ensuring regional comparative studies of experiences from different benefit-sharing and the rights of indigenous people. countries and time periods; on what actions are being This report reviews how industry, public authorities, done to promote sustainability, what their actual NGOs and academics have addressed those chal- effects are, which trade-offs exist and how to address lenges so far. Through collaborative initiatives best future sustainability challenges. practice has been identified and promoted. Research 4 Making Mining Sustainable: Overview of Private and Public Responses PREFACE Preface Minerals are essential for human welfare. However, their extraction is associated with both opportunities and challenges. Historical concerns around work conditions and the competitiveness of the mining sector have been complemented by a growing number of other issues. Today, an overarching goal is to find ways by which the mining sector can promote sustainable development. Sustainable development is often defined as “devel- public and private agreements, standards and policies opment that meets the needs of the present without are being translated on the ground. Little empiri- compromising the ability of future generations to cal research has looked at their actual effects on the meet their own needs.” Furthermore, it is commonly economy, environment and social well-being. And agreed that this must incorporate economic, environ- both historical and cross-country case studies are mental and social concerns. needed in order to identify best practice. There is a growing literature that examines the rela- Four other reviews have also been undertaken as a tionship between extractive industries and sustainable part of this pre-study. While the present report pro- development, yet much research is still conducted in vides a broad overview of mining and sustainability, a siloed fashion. For this reason, the Swedish state- the other reports focus on more narrow topics: owned iron ore mining company LKAB and Luleå • Environmental Aspects of Mining, by Anders Wider- 5 University of Technology initiated a pre-study with lund and Björn Öhlander from Luleå University the aim to establish a new multidisciplinary research of Technology and Frauke Ecke from the Swedish programme on mining and sustainability. University of Agricultural Sciences. The pre-study was conducted from January to • Environmental Regulation and Mining-Sector Com- October 20141. One part of the pre-study was to petitiveness, by Kristina Söderholm, Patrik Söder- review existing research attempting to address mining holm, Maria Pettersson, Nanna Svahn and Roine and sustainable development – the current state-of- Viklund from Luleå University of Technology and the-art – with focus on the past, present, and future Heidi Helenius from the University of Lapland. situation in Sweden, but also to put the Swedish • Gender, Diversity and Work Conditions in Mining, by case into a broader perspective by comparing several Lena Abrahamsson, Eugenia Segerstedt, Magnus international examples. Nygren, Jan Johansson, Bo Johansson, Ida Edman One of the outcomes of the pre-study is this report. and Amanda Åkerlund from Luleå University of It reviews how sustainable development has been Technology. addressed and defined in the context of mining so far. • Mining, Regional Development and Benefit-Sharing, by Past concerns about an imminent shortage of miner- Patrik Söderholm and Nanna Svahn from Luleå als have so far been proven exaggerated. At the same University of Technology. time, natural resource wealth has not always been translated into development for the broader society. Together these reports provide a broad picture of the Governments, companies and NGOs have addressed challenges and opportunities created by mining. some of the key sustainability challenges through a The pre-study has been made possible through a gen- number of initiatives. Researchers have looked at erous contribution from LKAB. All errors and opinions ways in which both public governance and mining expressed in this report belong solely to the author. company management can promote sustainability. The report highlights a number of future research Luleå, October 2014 needs. Notably, there is a lack of information on how Petter Hojem 1 Project leader: Patrik Söderholm. Project group: Lena Abrahamsson, Frauke Ecke, Petter Hojem, Anders Widerlund, Roine Viklund, and Björn Öhlander. Making Mining Sustainable: Overview of Private and Public Responses 1. BACKGROUND AND PURPOSE 6 1. Background and Purpose The last decade has witnessed a global boom in mining. A strong demand for natural resources, de- spite a temporary set-back following the financial crisis, has been fuelled by fast economic growth first and foremost in China and India. After decades of relatively low investment in increased supply, there has been a sharp increase in the rate of exploration, discovery and development of new mineral de- posits. Existing mines have become more profitable, and some that have previously been closed have been re-opened due to the price increases caused by the stronger demand for metals and minerals. While there are signs that we have passed the peak of the current boom-cycle, prices still hover at levels far higher than about a decade ago. The recent mining boom has also led to renewed fits. Policy-makers and regulators are forced to weigh interest and concern for the industry’s short and seemingly incommensurable pros and cons of mining long term impacts.