An Overview of Environmental and Social Risks and Potential Financial Implications - Mining and the Environment: From Ore to Metal - page 568

Environmental Risks and Financial Implications
Health and safety - Mining presents high risk to the health and safety of mine workers, in particular if mining is underground. This is due to accidents, geotechni-
cal failures of walls or dumps and exposure to damaging levels of dust, gases (particular methane in underground coal mining), radioactivity, noise and vibration.
The use of explosives to assist in ore fragmentation and removal creates an additional safety risk both within the mine site and in surrounding areas. High volt-
age electrical supply to mine equipment such as crushers, mills, screening equipment, or conveyor belts is a potential hazard. Asbestos may be present within
mine buildings.
Particulate matters - Mineral extraction, crushing, materials transportation and un-vegetated surfaces may result in emission of particulate matters to the
atmosphere with potential for trace metal and dust deposition over large areas.
Greenhouse Gas Emissions - Mines move a large quantity of earthen materials. With the exception of coal mining, material movement is likely is the mine cause
of greenhouse gas emissions. Release of coal bed methane and coal combustions are the main sources of GHG emissions related to coal mining.
Other direct impacts - Various other direct impacts are potentially associated with mining. Noise and vibration is likely to be generated primarily by blasting,
mineral extraction, mineral crushing, and vehicle movements. Spillage of fuel, oils and other chemicals particularly in workshop areas may cause contamina-
tion of both soil and water. Mines are intrusive by nature, often perceived as negative visual impacts. Lighting at night operation is equally intrusive to nearby
resident and wild life fauna. Water supply to the mine may reduce water availability for other users.
Indirect impacts
Land acquisition and resettlement - Land acquisition and resettlement are closely interrelated. Resettlement per se is a social change process that places pres-
sure on social system. Resettlement is not restricted to physical relocation of people. Any loss of assets, access to resources, or adverse impacts on livelihood
due to the mine development count as resettlement.
Mine access - Access roads to previously hard to reach areas may place hunting pressures on the fauna and may give rise to illegal logging and settlement.
Providing access to remote areas often constitutes one of the highest environmental impact potentials.
Induced development - Mining activities often attract people looking for direct employment or indirect economic benefi ts. Infl ux of outsiders will put
considerable strain on existing social pattern and infrastructure, often causing social fabrics and existing infrastructure to fail. Increase in crime, diseases,
and social tensions are direct consequences. Mine towns often wholly depend on the existence of the mine. Mine closure associated with demobiliza-
tion of workforce and loss of income is challenging. Note, however, that the fi rst round of workforce demobilization already occurs at the end of mine
construction.
FINANCIAL IMPLICATIONS
Land compensation - Mine operators need to compensate landowners for the land areas occupied by the mine and supporting infrastructure. Land speculators
often infl ate the value of land, and encourage local residents to make increasing claims for land compensation. Landowners may sell land twice, once to the
mine, and a second time to a neighbour. The mine company may end up paying the neighbour's bogus claim to avoid trouble.
Regulatory approval - Financial losses due to a delay or a refusal of environmental mine approval is deeply embedded into the history of mining. A delay of
approval can easily render a fi nancially attractive mine asset into a fi nancial disaster.
Resource compensation - Regulatory authorities will possibly ask for compensation for loss of natural resources such as water, agricultural land, or forest.
Landowners may ask for compensation for allowing temporary access to land for exploration purposes or for potential environmental damage such as
vegetation clearing. Residents or squatters may cultivate in areas cleared for exploration, gambling that they would receive company compensation for
lost harvest.
Fees and fi nes - Fees by regulatory authorities may be applied to discharges to air and water. Regulatory authorities may impose fi nes if discharges are above
statutory levels.
Social unrest - Protest by local residents or non-government organizations to defend existing surface features, ironically often initiated by anti-mining activists
with no site-specifi c knowledge, can lead to delays in mine permitting, in a reduction of resources that could be otherwise exploited, and in an increase in mine
operational costs.
Social investment - Community development programmes are integral to any mine proposal. It is the intent of the mine operator to give something back to
local communities. Funds for community development programmes need to be allocated.
Health compensation claims - Exposure of employees to occupational hazards may result in health compensation claims. Methane or radon gas release and
migration is a signifi cant hazard in coal mining.
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