The Anatomy of a Mine - Mining and the Environment: From Ore to Metal - page 197

A delay in mine development
may cause the EIA to become
outdated and invalid.

Postponement in mine development may also have implications for environmental
approvals. Environmental impact statements are often only valid for a dei ned period
of time, within which the sponsor needs to commence mine construction and operation.
A delay in mine development may cause the EIA to become outdated and invalid.

4.4 ENGINEERING, PROCUREMENT, AND CONSTRUCTION

How do we do it? Engineering, procurement, and construction are major undertakings.
More people are employed during the construction phase than during mine operation.
Access roads are built, heavy equipment and machinery are mobilized, and the project
area turns into a huge construction site with all the environmental impacts that conven-
tionally occur during construction. Before construction commences, however, the mining
company needs to secure a wide range of permits and access to the mine site.
Approved feasibility and environmental impact studies are pre-requisites for mine devel-
opment, but they need to be complemented with a wide range of additional permits and
approvals prior to mine construction and before mine operations can commence. Table 4.4
illustrates the various permits that were required for a relatively small-scale underground
gold mine in West Java, Indonesia. Depending on the jurisdiction and size of the mine, the
list of required permits may be even longer. Some permits are dependent on EIA approval.
To avoid lengthy and costly delays, the project owner needs to secure some of these permits
immediately following EIA approval before mine construction can begin ( Case 4.5 ).
Securing access to the mine site, that is, acquisition of land, and if required, resettle-
ment of inhabitants, are the i rst activities in mine development that have potentially major
social impacts. Land acquisition is always sensitive and there are many associated issues (see
Chapter Fourteen for a detailed discussion of this subject matter). Land speculators may seek
i nancial benei t by buying land from local people and selling it to the mining company at a
large proi t. Such speculation not only inl ates the cost of mining, it may leave previous land
owners feeling cheated, with such feelings ultimately directed against the mining operator.
Furthermore, a formal land title, supported by accurate land surveys and documentation, is
problematic in most developing countries. Land acquisition procedures need to respect and
comply with traditional communal customs and laws, which outsiders often i nd difi cult
to grasp. This is particularly the case where local tribes claim undocumented ancestral land
rights, which in some cases may be in dispute between two or more tribes.
Construction activities that follow after land access is secured have the potential for sig-
nii cant adverse environmental and social impacts. Movement of material and equipment
can be severely intrusive. Major earthworks create noise, dust, and heavy trafi c on access
roads. Large numbers of transient workers may encourage prostitution and alcoholism,
and bring sexually transmitted diseases, along with a general increase in crime rates.
In many cases, specialized third party companies (the engineering, procurement, and
construction contractor, dubbed EPC contractor) will construct a mine's operating infra-
structure, often under 'Turn-key' contracts, that is, completed through commissioning to
the operational stage. Mining companies are then left to focus their environmental man-
agement efforts on the actual mine operation, while overlooking environmental and social
impacts that occurred during construction.
The construction contractor, normally a large engineering company or a consortium of
engineering companies, has a different outlook to the mine operator. Its aim is to get the
job done within budget and on time, particularly if as is customary, contractual penalties
apply to delays. The contractor has no incentive to develop a working rapport with local

Securing access to the mine
site, that is, acquisition of land,
and if required, resettlement of
inhabitants, are the fi rst activities
in mine development that have
potentially major social impacts.