Environmental Impact Assessment - Mining and the Environment: From Ore to Metal - page 85

Integrate Economic, Environmental, and Social Objectives

Environmental assessment aims to ensure that the development of a mining project is consistent
with the goals of sustainable development. Although no single dei nition of sustainable devel-
opment has emerged, there is consensus that sustainable development should result in a stable,
more efi cient economy, a clean and healthy environment, and an improved quality of life for all
community members. As such, environmental assessment is concerned with the economic, envi-
ronmental, and social resources within the study area. The basic assumption is that all resources
in a place are interconnected parts of one system. Taking an integrated and holistic approach,
rather than focusing on one particular resource or concern, more appropriately addresses envi-
ronmental problems ( Case 2.3 ). However, as uncertainties and limits always attend a holistic
approach, environmental assessment will always be based on simplii cations.

Increase the Overall Capital Stock

Economists differentiate various types of capital that exist within the region of a prospec-
tive mine (e.g. natural resource capital, productive capital, human capital, social capital,
and i nancial capital). Productive, human, social, and some forms of environmental capi-
tal are sometimes collectively referred to as renewable capital, as the level of this capital
is inl uenced by human activities and investment. During the operating stage of a min-
ing project, environmental assessment is concerned with maximizing the productive,
human, social, and environmental benei ts of the operation through a wide range of com-
munity development activities, commonly referred to as private sector social investment.
Environmental assessment can and should be the planning vehicle for social investment.
Environmental assessment seeks to bring benei ts to affected communities, along with
natural resource planning and management efforts. Environmental assessment is a process
that enables communities to participate through training and education, assistance agree-
ments, information sharing, and technical assistance.
Social investment aims to offset any negative impacts associated with the project opera-
tions and seeks to increase the levels of renewable capital in areas of mining activities and
beyond. In an ideal world, the increase of renewable capital through social investment
would balance or outweigh the loss of non-renewable mineral resource capital over the
mine life as illustrated in Figure 2.4 . As mineral resources are exploited, renewable capital
is created. This is probably the single most important challenge in ensuring sustainable
development due to mining, and it will be discussed in more detail in Chapter Fifteen.
A second challenge exists. Environmental assessment should not only aim to maintain
or to increase the level of capital stocks, but should also seek an equitable distribution of
environmental costs and economic benei ts. Social tension is unavoidable if resources and
capital in the region of the mine activity decline (depletion of mineral resources, envi-
ronmental degradation, disruption of social patterns, etc.) while capital stock in regions
beyond the mining area increases (tax income to central government, increase of foreign
shareholder wealth, etc.).
Equitable distribution of renewable capital at the local, national, and international scale
is challenging. Throughout history, mineral resources have provided income for national
governments, but only a portion of the created wealth and capital l ows back to local com-
munities. Mining companies are often blamed for the real or perceived unequal distribu-
tion of i nancial benei ts at the local and national levels, but much of the responsibility
rests with the host government. International mining companies are also seen as exploit-
ing national resources to the benei t of distant foreign benei ciaries. This argument has

Environmental assessment
seeks to bring benefi ts to
affected communities, along with
natural resource planning and
management efforts.

As mineral resources are
exploited, renewable capital is
created.

Throughout history, mineral
resources have provided income
for national governments, but
only a portion of created wealth
and capital will fl ow back to local
communities.