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Mining Report Balancing Competing Demands of Mining, Community and Environment to Achieve Sustainable Development in the Mining Sector Final Report APEC Mining Task Force December 2010 APEC Project MTF 04/2009A Prepared by Coal Center, 30 Chungjin‐dong Street (Susong‐dong), Jongno‐gu, Seoul, 110‐727, Republic of Korea Telephone : +82‐2‐3702‐6744, Fax : +82‐2‐3702‐6749 School of Environmental Science & Engineering, Gwangju Institute of Science & Technology (GIST), 261 Cheomdan‐gwagiro(Oryong‐dong), Buk‐gu, Gwangju 500‐712, Republic of Korea Telephone: +82‐62‐715‐3287, Fax. +82‐62‐715‐2434 Produced For APEC Secretariat 35 Heng Mui Keng Terrace Singapore 119616 Tel: (65) 6891 9600 Fax: (65) 6891 9690 Email: [email protected] Website: www.apec.org © 2011 APEC Secretariat APEC#211‐SO‐01.1 FOREWORD (This will be used as an ‘endorsement’ form from the Project Overseer which a signature is required.) Sustainable development for the mining sector has become animportant issue tobe considered for APEC region as its major world’s mineral reserves and production. Mining sector has contributed economic development in many economies of the APEC. However, it is challenging APEC economies tobalance the economic growthof miningsector alongwiththe reducingof environmentalimpactsandincreasethequalityoflifeforthecommunity. The mainobjectives of this report are toevaluate competingsustainable development demands withinthe APEC mining sector througha networkof experts inAPEC economies,toexchange a wide range of information, including environmental regulations related to mining, case studies of the impacts from legacy mines and inappropriate mine closures, as well as mine reclamation technologies and leading sustainable development practices relating to mine closures, to provide recommendations on practical applications of sustainable development initiatives relating to mining and mine closures in developing economies, and to develop a reference database on the policies, regulations, standards, and technical guidelines related to mine rehabilitation, reclamation, and mine closure among APEC economies. The report also highlights the need for the effective policies, regulations and enforcement of the APEC economiestoincreasethelevelofsustainabilityintheminingsector. MTF Korea (Mine Reclamation Corporation) hosted an APEC workshop on “Balancing competing demands of mining,community andthe environment for sustainable development in the mining sector” on 31 August – 2 September 2010, in Seoul, Korea. The amended and updatedreportisintendedtomeetthegoalofthe project. Kwon,HyunHo Director,InstituteofMineReclamationTechnology KoreaMineReclamationCorporation(MIRECO) ii CONTENTS EXECUTIVE SUMMARY………………..…………………………………………………………..………………….. 1 1. BACKGROUND OF THE RESEARCH……………………………………………………………………….… 2 1.1 Sustainable development…………………………………………………………………………………..……….. 2 1.2 Positive and negative contributions of mining to sustainable development…………………………… 3 1.3 Mining and environmental impact………………………………………………………………………...……… 3 1.4 Governments’ countermeasures on environmental impact due to mining activities in major developed countries...................................................................................................................................................... 4 1.5 Mining and community impact……………............................................................................................................. 28 1.6 Mining and gender impact……...……………………………………………………………...…………………… 29 1.7 Challenging environmental laws as a tool for achieving sustainable development…………….….… 30 1.8 Environmental regulation of mine waste in European Union (ERMITE)…………………..………….. 32 1.9 Sustainability indicators for mining……………………………………………………………………………… 36 1.10 Sustainable development evaluation……………………………………………………………………...……. 37 1.11 Importance and necessity of the project………………………………………………………………….……. 40 2. OBJECTIVES……………………………………………………………………………………………………..…….… 42 3. RESEARCH ACTIVITIES AND METHODOLOGIES…………………...……………………………….. 43 3.1 Survey and analysis of the environmental regulations of mining …………………….…………………. 43 3.2 Data analysis tool……………………………………………………………………………………………...……… 43 3.3 AHP, Fuzzy theory and Fuzzy AHP………………………………………………………………………..……. 43 3.4 Constructing a mining sustainability system (MSS) based on AHP concept …………..…………..... 46 3.5 Application of Fuzzy AHP in evaluation of indicator weight criteria in a sustainable mining system………………………………………………………………..…………………………………………..…… 48 3.6 Sustainable development evaluation model for mining sector (SDMI model) ……………………..… 48 3.7 Action plan…………………………………………………………………………………………………………...…. 50 3.8 Organization of workshop ………………………………………………………………….…………………..… 52 3.9 Database development………………………………………………………………………….…….……………… 53 3.10 Benefits to stakeholders……………………………………………………………………………………………. 53 3.11 Recommendations for sustainable mining…………………………………………………………………… 53 4. RESULTS…………………………………………………………………………………………………………………… 54 4.1 Production and market trend of mineral resources: Globally and APEC region.………....................... 54 4.1.1 Bauxite and alumina………………………………………………………………………………………..…. 54 4.1.2 Aluminum…………………………………………………………………………………………………..…… 54 4.1.3 Coal……………………………………………………………………………………………………….………. 55 4.1.4 Copper……………………………………………………………………………………………………………. 56 4.1.5 Gold……………………………………………………………………………………………………….………. 57 4.1.6 Iron ore…………………………………………………………………………………………………………… 59 4.1.7 Lead……………………………………………………………………………………………………….………. 60 4.1.8 Nickel…………………………………………………………………………………………………….………. 61 4.1.9 Tin………………………………………………………………………………………………………….……… 63 4.1.10 Uranium…………………………………………………………………………………………………...……. 64 4.1.11 Zinc……………………………………………………………………………………………………………… 66 4.2 Environmental regulations of mining sectorin APEC economy…………………………………….…… 66 4.3 International standards and guidelines on prevention of mine hazard….………………………..……… 90 4.4 Adaptation of standards and guidelines to increase the level of sustainable development in the mining sector………………………………………………………………………………………………..………… 94 4.5 Mine reclamation technologies in APEC economies………………………………………………….…….. 101 4.6 Current status of each APEC economy on the application of standards and guidelines for responsible mine closure………...……………………………………………………………………………..…… 120 4.7 Case studies of impact from legacy mines and inappropriate mine closure………………………..…. 123 4.8 Capacity among developing APEC economies on best practices in mine reclamation and rehabilitation……….……………………………………………………………………………………………..…… 130 4.9 Sustainable development index for mining sector in APEC economies……………………………….... 130 4.10 Recommendations on practical applicationsof sustainable development initiatives relating to mining and mine closure in developing economies……………………………………………..……….….. 141 5. CONCLUSION……………………………………………………………………………………………………………. 157 5.1 Evaluation of sustainable development levels of APEC economies………………………………..…… 157 5.2 Suggestions for sustainable development of mining sector in APEC economies…………………..… 159 iii 5.3 Suggestions from MTF Korea for attaining sustainable development in the mining sector of developing APEC economies …………………………………………………………………………………………… 160 6. REFERENCES ………………………………………………………………………………………………………….... 162 7. APPENDIX ……………………………………………………………………………………………………………….... 168 iv Abbreviations AHP AnalyticalHierarchyProcess APEC Asia-PacificEconomicCooperation BFY Budget FiscalYear CEAA CanadianEnvironmental AssessmentAct DENR DepartmentofEnvironmentandNaturalResources EIA Environmental ImpactAssessment EPI EnvironmentalPerformance Index EPs EquatorPrinciples FMCDM FuzzyMultipleCriteria DecisionMaking ERMITE EnvironmentalRegulationofMineWasteintheEuropeanUnion ETFs ExchangeTrade Funds GIST GwangjuInstituteofScience andTechnology ICMM InternationalCouncilonMiningandMetals IFC International FinancialCorporation IGOs IntergovernmentalOrganizations JOGMEC JapanOil,GasandMetalsNationalCorporation HDI HumanDevelopment Index LME LondonMetalExchange MCA MineralsCouncilofAustralia MCDM MultipleCriteriaDecisionMaking MIRECO KoreaMineReclamationCorporation MTF MiningTaskForce OECD OrganizationforEconomicCooperationandDevelopment PPP PurchasingPowerParity SD SustainableDevelopment SDM SustainableDevelopmentfortheMiningSector SDMI Modelofsustainabledevelopmentevaluationfortheminingsector UNEP UnitedNationsEnvironmentProgramme USGS UnitedStatesGeologicalSurvey WCED WorldCommissiononEnvironmentandDevelopment WEF WorldEconomicForum WHO WorldHealthOrganization WNA WorldNuclearAssociation v EXECUTIVE SUMMARY The mining,mineral and metal industries are very important toAPEC member economies due tothe fact that the majority of global trade andinvestment inthese commodities occurs inthe APEC region. As such, minimizing the possible adverse environmental impact along with a focus on socioeconomic conditions are important contributions for ensuring sustainable development. A study onbalancing the competing demands of mining,community and the environment to achieve sustainable development in the mining sector was performed with three main objectives. The first objective is to evaluate competing sustainable development demands withinthe APEC mining sector througha networkof experts inAPEC economies.The second is to exchange a wide range of information, including environmental regulations related to mining,case studies of the impacts from legacy mines andinappropriate mine closures,as well as mine reclamation technologies and leading sustainable development practices relating to mine
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