Minerals, Wealth and Progress - Mining and the Environment: From Ore to Metal - page 29

incidents. In the case of a pollution incident, owners and investors may find that not only
have they lost the value of their original investment in a project, but may face substan-
tial clean-up costs, or other liabilities. Closely associated with environmental risk is repu-
tational risk. Mining companies, particularly those that operate internationally, are under
intense scrutiny from governments, regulators, NGOs, the public, and the media. Failure
to give due consideration to environmental impacts can result in negative publicity for
both the respective company and supporting financial institutions.

1.6 MEETING ENVIRONMENTAL ISSUES HEAD ON

Since the 1990s, 'globalization' has become not only the focus of international economic
analysis, but the stimulus for an outpouring of literature on the future development of
civilization. For some, globalization signifies progress, global environmental awareness,
freedom, democracy, and prosperity. For others, it represents exploitation, unemployment,
unfettered capitalism, and imperialism. Few, however, would dispute that nations around
the world have become more economically interdependent. Anyone who has access to
a computer and a telephone line can ascertain the latest information on world markets,
finance, technology, political trends, consumer interests, and so on. The same technology
has also made it nearly impossible to run away from environmental issues or to 'cover up'
incidents involving environmental damage.
Critics of globalization focus their arguments on misuse of power and exploitation of
weak economies and political systems. Multinational corporations, including most min-
ing companies, they argue, use political connections in their home countries and economic
intervention in others to consolidate their power and maximize their profits. As multina-
tional corporations do business around the globe, critics point out, they become increas-
ingly detached from the interests and values of their countries of origin, with their primary
allegiance shifting solely to profits and market share. Any concerns about social benefits or
environmental degradation are set aside.
These are real concerns, but globalization also provides an unprecedented opportu-
nity for change for the better; it has brought access to new technologies that give people
the potential to learn, communicate, and participate in decision-making as never before.
The pace of technological and scientific innovation has brought with it new uncertainties
and half-understood risks, but also hope for a better world. Although to capitalize on the
opportunities offered by globalization, the wealth and power of the private sector would
need to be applied in a manner that recognizes social needs and environmental limits,
there are increasing signs that this is happening.
The minerals sector is certainly globalized, but within it the trend toward localization is
assuming increased importance. Traditionally, engineers, managers, and political leaders
decided how mining would affect local communities. It was assumed that the develop-
ment of a mine constituted a benefit to those in its vicinity, and few attempts were made
to adapt mining infrastructure and practices to suit local interests. As a result most major
mining projects looked alike. This point of view is now changing, however slowly, with
more emphasis on understanding and accommodating local needs and differences.
As a result of the communications revolution, with low cost and instantaneous point-
to-point contact possible almost anywhere on the globe, national borders have become
highly permeable. This has not only changed the way mining companies operate inter-
nally, but how they relate to and cooperate with host governments and local communities.
The companies are aware that the ability to produce, access, adapt and apply information
worldwide with relatively little effort has raised international environmental awareness.

Globalization also provides an
unprecedented opportunity
for change for the better; it
has brought access to new
technologies that give people the
potential to learn, communicate,
and participate in decision-
making as never before.