Identifying and Evaluating Impacts - Mining and the Environment: From Ore to Metal - page 450

Statutory and Policy Requirements
Most jurisdictions have promulgated a wide range of standards for pollution control,
including exposure standards, environmental quality standards, emission standards, proc-
ess or operating standards and product standards. Clearly if these are legally mandatory
and a risk assessment demonstrates that an intended activity is likely to breach them, the
risk is unacceptable and measures to reduce it to acceptable levels (that is ensuring regula-
tory compliance) should be adopted.

Loss of Life
Planners, engineers, and operators have a zero tolerance for loss of life. Particularly in the
oil and gas industry, avoiding the risk of loss of life is deeply embedded into project design,
so that operational risk assessment has evolved into a specialized engineering discipline.
Spectacular accidents, however, such as the explosion of Space Shuttle, serve as a reminder
that 100% safe design and operation do not exist even with the best of efforts. Under given
circumstances the residual risk of loss of life may be acceptable, if the likelihood of the
hazard occurring is remote and if the number of potential casualties is small.

Planners, engineers, and
operators have a zero tolerance
for loss of life.

Value Judgements
Value judgement is subjective. Dei ning what constitutes unacceptable harm to an ecosys-
tem, as one example, is therefore a difi cult task and ultimately depends on what values an
individual or society places on ecosystems. Some may argue that the existing environment
at the project site is invaluable and should be maintained at all costs. Others may hold the
opinion that maintenance of ecosystem function is the main objective and that an acciden-
tal spill of tailings supernatant may not threaten this objective.

Value judgement is subjective.

Economic Considerations
Economic factors often have a signii cant inl uence on the acceptability of a given risk. An
example could be the tailings storage facility for a mine. A tailings disposal site located at
some distance from the mine may impose less environmental risks, but may make tailings
disposal extraordinary expensive. The preferred tailings management option is likely to be
the one with the greatest excess of benei ts over costs. Economic considerations also extend
to considering the provision of costs to mitigate a project impact over and above those that
are provided. Financial consequences due to a delay in project development, or threat/dis-
ruption of operations are also important considerations when deciding on environmental
project risks.

Social Aspects of Risk
The acceptability of a risk can be signii cantly inl uenced by a range of psycho-social and
political factors. These may include individual risk perceptions and attitudes, cultural val-
ues, questions of trust and credibility of the mine operator, and questions of equity in risk
distribution. The social aspects of risk can be reduced to some extent by constructive dia-
logue between project affected people and the mine operator.

Reputation Risk
Reputation risks are important ( Case 9.7 ). The reputation risk includes both local and
international reputation risk, as well as strained stakeholder relations. Reputation risk is of
major concern for large mining companies that pursue business interest in different parts
of the world. Negative publicity in one country can hinder mining development in another
one. Reputation risk may also inl uence the capability to raise funds on the i nancial market.

Reputation risk may also infl uence
the capability to raise funds on
the fi nancial market.