indicators of sustainability to the mine

A WORD OF CAUTION The texts hereby presented are authors' full responsibility: no text revision was performed! It was decided to make this book available in the present format, in order to shorten the time gap between the preparation of a given work and its publication as a book. Besides, the time and expenses involved in detailed text editing may, as well, hinder publication or so delay it that the current text might be affected. It is expected that only minor corrections may be needed, although, it is important to stress, none of the authors are native English speakers . We believe that the book is, thus, edited to a satisfactory level of completeness and comprehension.

.

Carajás, Oriental Amazon, Brazil June 2002

Roberto C. Villas-Bôas Christian Beinhoff

Editors

Summary Preface Current Issues on Sustainable Development that Impacts the Minerals Extraction Industries - Roberto. C. Villas-Bôas .................................................................................................... i

I – Working concepts and ideas Sustainable Development: Concepts, Scenarios and Strategies for R&D, Roberto C. Villas Bôas and Maria Laura Barreto ............................................................................................... 3

The Indicators of Sustainability In Mining - Juan Manuel Montero Peña................................................................................... 23 Qualitative Analysis of Mining Environmental Sustainability: Myth and Reality - Adilson Curi and Hernani Mota de Lima..................................................................... 47 A Geo-Environmental Data Base Due to Elaborate Geoindicators Scenarios Based on Engineering-Geological Criteria - N.C. Diniz.................................................... 61 Mining & Sustainable Development: The Economic Dimension in the Selection of Indicators - Eduardo Vale............ 79 General Criteria of the Sustainability for Mining Activity - Diosdanis Guerrero Almeida and Roberto Blanco Torrens .......... 89 Sustainability Indexes for the Mining Industry - Enrique M. González .................................................................................. 111 Concurrent Resources: Sustainability Depends on Agreement - José Enrique Sánchez Rial....................................... 117

Ideological Foundations of Sustainability Indicators, Sonia Osay..................................................................................... 139

II – Mine: Case studies Uranium Mining and Energy – Environmental, Economical and Social Sustainability Indicators - Lamego, Fernando; Fernandes, Horst; Franklin, Mariza............... 153 Environmental and Social Performance Indicators and Sustainability Markers for Two Mining Groups in Colombia - Elkin Vargas Pimiento............................................... 167 Sustainable Indicators of the Small Coal Mining in Colombia - Liliana Betancurth M................................................. 201 Modeling of gold heap leaching for criteria of sustainability targets, Luiz R. P. de Andrade Lima, Roberto C. Villas-Bôas, Hélio M. Kohler ................................................... 225

III – Country: Case studies Towards Sustainable Development Indicators for the Mining Sector (1st Stage) - Verónica Alvarez Campillay............ 247 Mining Sustainability in Bolivia - Ana Maria Aranibar Jimenez .......................................................................................... 315 The socioeconomic impacts of the Bajo la Alumbrera project and an approach to the economic indicators of sustainability - Luis Manuel Álvarez ........................................... 321 Sustaining Indicators on Mining. Their Manifestation in Cuba - Mercedes M. Valdés Mesa................................................ 339 Proposal of Sectoral Environmental Indicators for the Territory of Moa - Rafael Guardado Lacaba and Olga Vallejo Raposo .............................................................................. 351 Sustainable Mining? Gold in Northern Peru - Ivan Merino Aguirre .............................................................................. 367 Practical Sustainability Indicators Mining: The Case of Ecuador - Cornejo Martínez Mauricio, Carrión Mero Paúl ......... 385

Sustainability Indicators in the Spanish Extractive Industry - Arsenio González Martínez and Domingo Carvajal Gómez ............................................................................. 409 Indicators of Sustainable Development in Colombian Mining - Jorge M. Molina and Alejandro Cardona A................... 433 Sustainability Indicators in Metallic and Non Metallic Ore Mine Districts in Venezuela: Investigatión Proposal - Alba J. Castillo, Aurora Piña and Sixto Jaspe ............................... 451

Proposal for the Use of Indicators for the Resolution of Conflicts Affecting Peruvian Mining – Maria Chapuis.............. 467 IV – Region: Case studies The Utilisation of Sustainable Development Indicators Within the EU Mining Industry - Luís Martins ......................... 479 Strategy of the Organization to Achieve Sustainability in Projects Related to Mercury Pollution of International Waters Caused by Small-Scale Gold Mining – Christian Beinhoff......................................................................................... 491 V –Vale do Rio Doce Company Vale do Rio Doce Company - CVRD ......................................... 511

Preface

Indicators of Sustainability for the Mineral Extraction Industries

Roberto Villas Bôas and Christian Beinhoff, Editors

i

CURRENT ISSUES ON SUSTAINABLE DEVELOPMENT THAT IMPACTS THE MINERALS EXTRACTION

INDUSTRIES

Roberto. C. Villas-Bôas

CYTED-XIII IMAAC/UNIDO

e-mail: [email protected]

ABSTRACT

This discussion addresses some SD issues associated to the extracting and processing of mineral commodities that are of major concern to the mining enterprises , mining communities and that are the focal point of research engineer or mineral scientist in an attempt to design sustainably sound processes and products.

Also, at the end, a section on Sustainability Indicators , the main object of this book , is ,as well indicated.

It is observed that several versions of this discussions were made available by the author, due to the interest it raises in several forums of debate and discussion on Sustainable Development and the Minerals Extraction Industries .

INTRODUCTION

The production and utilization of materials in general, and as consequence those of ores and metals, obey, within a given framework of industrial development, the economic cycles that are in effect in a certain time period. These cycles have been well-discussed in the literature and might reflect a world, a local or a geopolitical trend.



ii

As the selection of a given set of materials depends upon the predominant cycle in the industrialized countries, these determine, to a greater or lesser extend, the consumption pattern of a given commodity, inducing the market to adapt itself to such a new reality.

In materials based industries two general strategies arise: there is a search for materials that suit an available technology, and the development of technology for an available material.

The recycled materials, which magnitude of use of the industries varies from economy to economy, need, as a general rule, lower capital and energy expenditures although, in a whole, still requires considerable manpower than that of the primary processing. Also, they require lower pollution control costs than the primary ores. Recycling is more intense as the sophistication of the economy increases, since viable quantities of recycled materials must be available in order to reutilize them.

However, as important as they are in the world's economy, materials to be produced promote changes in the environment and surrounding communities : they require energy to be processed, land to be installed, disposal sites to receive tailings or disposals, give off gases and dusts, and require water and earth movings. In fact, since early times such environmental and social impacts have been recognized and some actions and concerns arouse, here and there, to minimize them or at least leaving them within a tolerable acceptable limit.

Such acceptability, of course, changes from time to time, as social pressures increases, forcing legislative decisions which promote technological alternatives that will reflect back on the whole of the economical activity.

As regard to the environment, two major questions are receiving worldwide attention:



iii

1. what are the effects linked to the production, disposal and use of materials ?

2. what are their availability in a foreseen future?

As for the communities, several important issues are emerging from all forums concerned, such as :

a. is the “Dutch disease ” a rule or an exception ?

b. relocation of jobs and opportunities !

c. mining in indigenous lands !

d. mine closure

This discussion will focus on question ONE related to the environment and issue d.- on the community side . However, in the several chapters of this book , all aspects of SD and mineral extraction , attempting to derive Indicators of Sustainability for the Minerals Extraction Industries, and some case – studies as well will be presented .

THE AVERAGE METAL RECOVERIES AND THE PRODUCTION STEPS

For any material to be produced there are corresponding steps in which discards are also produced. These discards might be of two broad cathegories: losses and effluents. Losses are those discards readly identified to the main material produced, i.e., parts of that material that are left behind throughout the production steps. Effluents are the discards coming from these same steps and that are inherent to the applied technology within each production step, but not necessarily identified to the main material.

- The average metal recoveries



iv

In order to systemize the analysis of the environmental impacts of the discards an attempt is going to be made in quantifying such average metal losses.

It is well recognized that ore recoveries, from mining to final metal product varies from country to country, from economy to economy, as a function of technology, skill, regulatory laws, finantial capability, etc...; so are the environmenal impacts caused by primary and secondary metals production.

Therefore, recoveries and losses data from metal to metal and even for the same metal from country to country, even when apparently similar technologies are used, do vary substantially due to the so called "particularities" of the mining world: the cut-off-grade and the compromise between grade versus recovery optimal combination, making each orebody unique in its physical and economic characteristics.

Other things being equal, the lower the grade or the poorer the quality of the ore, the higher will be the cost of recovery of the valuable products. To the extent that there is a choice of the grade of the ore to be mined, there is also a choice of the total tonnage and of the total product recovered; the lower the permissible grade, the higher the tonnage. Therefore, the fixing of the cuttoff grade in deposits of irregular grade-distribution may require several computations of alternative tonnages and grades on the basis of different assumptions as to mineable limits.

Equally important with grade is the workability of the ore which is measured by the cost of physical removal of the rock. Other factors, such as accessibility from mine openings, thickness and regularity of the ore zone, hardness and toughness of the ore, presence of interfering structures, such as faults, weak ground, et allia, all must be evaluated when the decision on which ore must be taken should be made.



v

Variations in the grade in the workability of an ore body, may go side by side, or they may partly compensate each other. Ores of many different grades and many different costs, but sufficiently similar in other qualities to be amenable to the same treatment process may be mine or blended to profitable recovery of otherwise para marginal ore.

Complete removal of all available ore from mine, or complete extraction of all available ore is never achieved. Cost per unit recovered rise almost continuosly and usually with increasing steeps as attempts are made to increase the percent extracted. In the short run, with the recovery plant given, the percent extraction of metal will depend, to some extent, on the grade of the ore itself; the mining method usually limits the recovery of the ore in the mine.

As well as the utilized processing technology. For gold leaching, for example, the recovery figures are those shown in Table 1.

Table 1. Gold leaching recoveries.

OPERATION PARTICLE SIZE

METTALURGICAL RECOVERY

COSTS

Agitation < 0,1mm 90 - 95% > 20h ↑IN ↑OP

Vat < 10mm 70 - 80% 3 to 4h ↑IN

Heap > 10mm 40 - 60% 3 to 4w

↓IN ↓OP

IN = investment costs h = hour

OP = operational costs w = week

Lets have a look on some select mineral commodities, as regarding recoveries and grades, as shown in Table 2.

It can be readly seen that the problem associated to earth moving and tailing disposal is quite a severe one, since from the



vi

grade of the ore up to the production of a salable concentrate, the mass of the produced concentrate, as related to that of the ore total (MC) and the mass recovery itself (MR) are, of course, far from the sustainable target of total utilization, for the aforementioned reasons.

Table 2. Selected mineral commodities recovery/grade

ORE RECOVERY GRADE COMPANY Nb2O5 (3,0%)

piroclore MC = 3,3% Ore MR = 66%

60% Nb2O5 Conc.

CBMM (9)

TiO2 (1,5%) ilmenite

MC = 2,2% Ore MR = 81%

55% TiO2 Conc.

RIB (9)

Cr2O3 (17%) chromite

MC = 28% Ore MR = 65%

37% - 46% Cr2O3 Conc.

FERBASA(9)

WO3 (0,5%) scheelite

MC = 0,49% Ore MR = 74%

75% WO3 Conc.

TUNGSTÊNIO (9)

Sn (1,3%) cassiterite

MC = 1,9% Ore MR = 69,1%

48% Sn Conc.

RENISON (10)

Ta2O2 (0,16%) tantalite

MC = 0,22% Ore MR = 70%

49% Ta2O5 Conc.

BERNIC (10)

As already pointed out MC stands for the mass of produced concentrate, as related to that of the ore total, in percent, and MR is the mass recovery, i.e., the recovered amount of the valuable commodity as related to the original amount in the ore.

A very illustrating example of recovery, grade, mass recovery, earth moving, generated by-products is the production of phosphate fertilizers, from volcanic rock, that besides the usual earth-moving and disposal problems associated to the production of the concentrate, it generates five times the mass of gypsum as that of the concentrate, P2O5 based, when such a concentrate reacts with sulphuric acid to produce the fertilizer.



vii

- The Production Steps

Lets describe such production steps and their discards, for the purposes of this presentation, identifying four steps, namely extracting, processing, fabricating and manufacturing, as follows:

- extracting step, i.e., the mining and beneficiation of the ore to a commercial concentrate. The losses are dependent upon the mining method (open pit, cut-and-fill, room-and-pillar, etc...) and beneficiation techniques (gravity separation, flotation, etc...); the effluents generated are COx NOx from machinery and equipment, process waters and contaminated freatic waters, particulate material, and earth moving disposals/rearrangements;

- processing step, i.e., the extractive metallurgy or chemical operations to convert a concentrate into a metal; losses are depend upon the chosen technologies and skills involved (pyro, hydro and/or electro), and the effluents generated are gases (COx, NOx, SOx), liquids (heavy metals contamined waters) and solids (sediments, and heavy metals dusts);

- fabrication step, i.e., those operations devoted to produce rods, bars, sheets, etc...; the losses are scrap materials resulting from those operations, denominated "home scrap" endlessly recirculated, without any net loss of metal; the effluents are waste waters and industrial gases;

- manufacturing step, i.e., the application of mechanical operations for the shaping of metals by machining, stamping and forging, other than those of the fabrication step; the losses are parts of metal resulting from such mechanical treatments that does not produce the aimed product, being denominated "new scrap" or "prompt scrap", which recycling is well organized and efficient; the effluents are water vapors and industrial gases.



viii

The utilized average metal recoveries figures from ore to metal, involving the extracting and processing steps are those of HASIALIS and for the manufacturing step that of MAR. It is acknowledged that this last figure is well obsolete for the U.S. where it was obtained in 1954(!); however in the developing world this figure might be still reasonably valid. As for those of HASIALIS they are average figures, and large departures from these figures, for a given particular case, do exist , i.e., the statistical variances !

The production steps, as indicated, are all illustrated in Figure 1. Such a flowchart, or Sankey diagram, helps to seek solutions related to the discards involved in each production step. A similar chart might be attempted in terms of overall mass flows (MC's), if defined for each production step, resulting in more impacting figures, since earthmovings, then, would be included.

Tunneling into each of the aforementioned four production steps, a clear picture, hopefully, will then be achieved. Lets try that!

For this, some explanations are needed to follow Figures 1 the remaining Figures of the text:

Figure 1. The production steps

X = the metal content of the "in situ" ore

LE = is the loss in metal resulting in the extracting step, and is equivalent to 0,3625 X.



ix

PE = is the product in metal originated from the extracting step, and is equivalent to 0,6375 X.

LP = is the loss in metal resulting from processing, and is equivalent to 0,06375 X.

PP = is the product in metal resulting from processing and is equivalent to 0,57375 X.

LF = is the loss metal resulting from fabrication and is equivalent to O X (endless recirculated).

PF = is the product in metal resulting from fabrication, and is equivalent to PP.

LM = is the loss in metal resulting from manufacturing, and is equivalent to 0,11475 X.

PM = is the product in metal resulting from manufacturing.

Ei = is the effluent, generated in each stage.



x

L

LOSSES

E

Left Ore +Min. Proc. Tailing

EXTRACTING

(Mining + Min. Proc.)

ENERGY*< 17,5MWh/ton

E

EFFLUENTSGases from Machining

H.M. Waste WatersParticulate/Dust

Earth Movings

E

Concentrate

0,6375X

PEBulk "in situ" ore

X

0,3625X

*See footnote Table 3.

Figure 2. Income/outcome of the extracting step.

- Identifyable environmental impact and prospects in the extracting step

From Figure 2:

A. Energy:

Taking up of energy. There are technical rooms for improvements. Figures in kWh (thermal), per tonne of primary metal, as reported in ref. 16; Al (10,175); Cu (17,420); Zn (1,240).

B. Losses:

B.1 Left ore, function of cut-off and mining method, there are technical rooms for improvement.



xi

B.2 Mineral Processing tailings, rooms for gains pending on improvements in the next step (processing), since commercial grade concentrates are inputs to a given processing technology.

C. Effluents:

C.1. Mining, earth moving impacts associated to land reclamation; rooms for improvement based upon compromises between legislation (function of social pressures) and costs of reclayming. Physical disturbances are permanent; dust

C.2. Mining: gases from machinery and equipment (as well as noises and vibrations), there are technical rooms for improvement.

C.3. Mining: disruption of water regimes. Little room for improvements in present day mining methods.

C.4. Mineral processing: process waters and dust, still technical rooms for improvement.

C.5. Mineral processing: tailing disposals, solids, and control of acid generation.



xii

LLOSSES

P

PROCESSING(Extractive Metallugy.)

ENERGY*< 113 MWh/ton

EEFFLUENTS

PE

PP

Slags, Sludges,Dusts, Process

Waters

0,6375X Metal

0,57375

P

OX

0,06375X

Generated GasesWaste Waters

Particulate Solid Wastes

*See footnote Table 3.

Figure 3. Income/outcome of the processing step.

- Identifiable environmental impacts and prospects in the processing step

From Figure 3:

A. Energy:

Taking up of energy. There are rooms for improvements. Figures in kWh per tonne (thermal) as reportes in ref. 16; Al (35,384); Cu (26,520); Zn (17,560); Mg (103,000). Other figures are reported for Al and Mg if hydro-based power is available (much lower figures).



xiii

B. Losses:

Left metal as function of the process technology utilized, skills and legislation. There are rooms for improvements, specially those devoted to recover metal from slags, sludges and dusts of existing technologies or new technologies based on decreasing the number of operations/equipment stages (i.e., continuous converting for Cu and the still pending solution to the red mud problem in Al.).

C. Effluents:

Generated process gases (COx, NOx, SOx); waste waters after eventual removal of metal(s) from process waters; particulates throughout the processing stages and solid wastes other than slags, sludges, etc... (for the Al industry, for instance, spent potlinings, drosses, electrodes, etc...),still rooms for technical improvements.

LLOSSES

PFABRICATING

ENERGY*< 6 MWh/ton

EEFFLUENTS

PPF

0,57375X Metal

0,57375X

OX

OX

Waste Waters

F

Home Scrap

Bards Rods

Industrial Gases

F

*See footnote table 3

Figure 4. Income/outcome of the fabrication step.



xiv

- Identifiable environmental impacts and prospects in the fabricating step

From Figure 4:

A. Energy:

Taking up of energy. There are rooms for some improvements. Figures in kWh/tonne (thermal), as reported in ref. 16; Al (4,937); Cu (5,970); Zn (1,492).

B. Losses:

Generation of home scrap, no net losses. However, rooms to reduce such generations as fabrication operations/equipments become more efficient.

LLOSSES

M

MANUFACTURING

ENERGY* EEFFLUENTS

PF

PM

New Scrap, BoringsTrimmings Rejects

0,57375X Metallic Product

0,4590X

M

OX

0,11475X

Industrial GasesWater Vapors

<<6MWh*See footnote table 3

Figure 5. Income/outcome of the manufacturing step.



xv

- Identifiable environmental impacts and prospects in the manufacturing step

From Figure 5:

A. Energy:

Quite variable depending on the particular metallic product through forging, stamping and machining. Much less than any other of the previous production stages.

B. Losses:

They are the so called new scrap that usually goes to secondary production.

C. Effluents:

Industrial gases and water vapors.

ROLE OF THE RESEARCH ENGINEER OR SCIENTIST

For an account of the role of hydrometallurgy in achieving sustainable development the interested reader is referred to the literatture, for instance (17 and ) where acidic mine drainage, metals removal from waste streams, arsenic management, reduction of gaseous pollutants and energy conservation, cyanide destruction, waste processing and product recycling are matters discussed through selected examples of hydrometallurgical technologies as applied to a better environment.

The points to be raised, in this section however, are those of a general nature that may guide the hydrometallurgist towards a better understanding of the overall effect a given process has upon the environment, thus hopefully enhancing his/her chances of designing environmentally sound processes which in turn produce products.



xvi

Let's raise some major points in each of the income/outcome of the production steps, namely energy, losses and effluents.

Energy

Table 2 lists the energy taken up in each production step.

Table 2. Energy utilized in each production step

PRODUCTION STEPS ENERGY (MWh [thermal]/ton*

Extracting Processing Fabrication Manufacturing

< 17.5 < 113.0 < 6.0 << 6.0

* Figures as mentioned, not averages but maximum, for a selected class of metals (Al, Cu, Zn, Mg, Ti)

The role of the research enginner is to seek for processes that minimizes energy consumption; his/her tasks are, thus, primarely devoted to the processing step, following the extracting step and, then, fabrication and manufacturing.

Indeed, the efficiences of processing operations have been compared by CHAPMAN & ROBERTS, appearing in other papers dealing with the subject of environment, metals production and energy such as YOSHIKI-GRAVELSINS, et al., and FORREST & SZEKELY.

For the purposes of this article, the overall energy efficiences in the processing step, i.e. the energy take up by the whole step and not just the direct one, as compared to the thermodinamical Gibbs Free Energy, ∆G, for that same processing step, are of interest, since they give a strong indication to where to search for process improvements, energywise. Table 3 lists some selected metals and their overall efficiencies.



xvii

Table 3. The processing step overall energy efficiences for selected metals.

PRIMARY METALS OVERALL ENERGY EFFICIENCIES* (%)

Al Cu Zn Mg Ti

13 1.4 5.5 6.1 4.1

* Energy take up by the whole step, as related to the Gibbs Free Energy.

Of great concern to the hydrometallurgist is the power source of energy, i.e., hydro or coal based, due to the greenhouse effect. Such a concern was extensively dwelled by FORREST & SZEKELY.

Losses

Table 4 list the average metal losses to the environment, per production step.

Table 4. Metal losses to the environment per production step.

PRODUCTION STEP AVERAGE METAL LOSSES* Extracting Processing Fabrication Manufacturing

0,3625 X 0,06375 X

0 0,11475 X

Average metal loses as referred in the text.

Here, the research engineer has to focus his/her attention to the extracting step, first, and to a lesser degree to the manufacturing step.



xviii

It is worthy point out, however, that those average figures may be misleading. For each particular metal/substance that the hydrometallurgist is studing he/she has to refer to the actual values that are particular to the mining method, metal, process, skill, country, etc..., as previously discussed.

Nevertheless, mining and minerals processing techniques are, in general, responsible for the greatest losses. In-situ mining techniques, that usually refer to the injection of a leach solution through boreholes into the ore are to be taken into account whereas possible.

The losses of the manufacturing step usually goes to secondary recovery and besides the strategic/economic aspect to the enterprise itself, as discussed by CHAPMANN and ROBERTS through the GER (gross energy requirement) concept, no major role of the hydrometallurgist is to be foreseen, since such efficiencies are rather linked to the mechanical/electronics/physical metallurgical aspects of the issue.

In the processing step, several improvements have been and are still made through process optimization and process improvements.

Effluents

Regarding the effluents, the discards to the environment are several assuming the liquid, the gaseous and the solid states, giving to the hydrometallugist an extraordinary opportunity and offering several challenges.

Table 5 gives a list of problems that seek solutions at each of the production steps, compairing in relative terms the land, water and air impacts; the relationship is made referring to acceptable environmental standards in OECD's countries and they may vary considerable from country to country and from metal to metal.



xix

Table 5. Comparison between the impacts of the effluents in each production step.

PRODUCTION STEP

LAND IMPACT WATER

AIR

Extracting Processing Fabrication Manufacturing

S

M→S L L

S

M→S L L

M S S L

L ≡ low impact

M ≡ moderate impact

S ≡ severe impact

For the identification of the specific problems that face the particular metal industry, the reader is referred, for instance, to references.

Thus the role of the hydrometallurgist in developing environmentally sound processes has to be focused on the extracting step (i.e., land disturbance, soil erosion, mine run-off water, water regimes, dust tailing disposal, revegetation, etc...) and the processing step (i.e., acid generation, heavy metals effluents, disposal of solids, gas generation), primarely. For the specific techniques (biosorption, liquid-liquid exchange, electrowinning of dilute solutions, membranes, etc... see references). Table 6, lists some environmental impacts associated to selected mineral industries.



xx

Table 6. Major environmental impacts for selected mineral industries.

METAL IMPACT Al Red mud slurry; HF; CO2; tar pitch volatiles;

spent pot linings; cyanide Cu SO2; metal fumes; heavy metal effluents Zn Iron oxide; SO2; Cd; heavy metal effluents Mg CHCs; dioxin Ti FeCl3; volatile chlorides; CO2 Ni Metal carbonyl; heavy metal leachate;severe

dusts and particulate emissions P2O5 Gipsum, water consumption and disposal;

radiation (whenever present)

MINE CLOSURE

Mine closure , as seen today is a process that may be envisaged as a mine unit operation starting from the design stage of a mine site taking into consideration every environmental , social and community aspect that might be affected or modified during an ore body exploitation .

Conceptual , as well practical examples of succesful and unsucessful mine closure experiences were recently discussed (27) and represent some very useful examples were to base future operations .

However, if the technical aspects of mine closure, although now-a-days costly, might be overcomed , the social aspects of it are still far from being equationed .



xxi

In the near past mining might be considered as being built up by four major unit operations :

- access and cleaning the mining place place : in order to get to the ore .

- blasting : to crack down the ore .

- transporting : to transport the broken ore to the primary crusher .

- reclayming : to let the are suitable after mining .

However, how “suitable” is suitable ?

This last unit operation is being proposed to change looking for the technical side of mine closure from the very start of the design phase of the mine .

It is well recognized that mine closure has its technical and social side as well ; the technical one has to be focus as a mining unit operation with its costs being taken as operational costs throughout the life-time of a mine ; the social one , is , in the process of mining, the cost necessary to relocate jobs and careers after mining has gone !

Since these issues are quite recent , the environemnetal and social heritages of mining , and other industrial activities , are still at discussion and several viewpoints have been emerged throughout the literature

It is worthy remember, at least, that minerals may be viewed not just as vilains, but as well as helpers to the environment. Tightening environmental legislation are forcing that the rules governing waste water treatment and disposals be stricter; bentonite, lime, soda ash, magnesium hydroxide and zeolites are reported as environmental helpers in the literature and open, as well, a vast field of investigation to the research engineer or scientist as a whole.



xxii

INDICATORS OF SUSTAINABILITY

As we shall present and discuss throughout thie e-book text effective indicators will possess relevance , easiness to grasp and understand , reliability and based on accessible data .

It is quite important that the information provided be timely , when still there will be time to act and propose solutions for a given set of problems.

However, as it may happens frequently , the suggested best indicators normally lacks data and those for which data is available do not fullfil the needs as indicators of sustainability !

Various sources of data and discussion are available on the internet and some will be listed herein :

- Sustainable Community Roundtable’s 1995 http://www.olywa.net/roundtable/ ;

- Simple Living Network http://www.slnet.com/

- Interagency Working Group on Sustainable Development Indicators http://www.sdi.gov/

- Environment and Sustainable Development Indicators Iniciative (ESDI ) http://www.nrtee-trnee.ca

- Sustainable Development Criteria and Indicators for Minerals and Metals http://www.nrcan.gc.ca/mms/sdev/sdrcrit-e.htm

CONCLUSION

It is hoped that the presentation of the production steps always present in the production of materials, namely, extracting, processing, fabrication, and manufacturing that incorporates the incomes/outcomes for each of these steps, namely, the input/output of materials, energy, losses and effluents, and their discussions,



xxiii

have helped the stakeholders to choose the relevant areas of their research interests for the sake of designing environmentally sound processes to promote sustainability.

An overall account of the challenges faced by the mining and metallurgical industry to meet sustainable development is given in (26) and the reader is addressed to the issues and solutions therein proposed. As for mine closure , see reference ( 27) .

LITERATURE

Malenbaum, W. (1978) World Demand for Raw Materials in 1985 and 2000; in University of Phyladelphia Publication Series, U.S.A.

Tilton, J.E.(1986) Atrophy in Metal Demand; Materials and Society, vol.10, no 3.

Waddell, L.M. and Labys, W.C. (1988) Transmaterialization: Technology and Materials Demand Cycles; Materials and Society, vol. 12, no 1 .

Villas Bôas, R.C. (1987) Strategic Ores: Worldwide and Brazilian Prospectives; Second Southern Hemisphere Meeting on Minerals Technology, Proceedings, Rio de Janeiro.

Anon, (1993) Materials and Environment, where do we Stand, Minerals Today, our Materials World: A Special Edition, U.S.B.M., April, 1993

Villas Bôas, R.C. (1976) Aluminium: Why Search for New Production Roules? Proceedings of the IV National Meeting a Minerals Processing, São José dos Campos, Brasil.

Corry, A. V.& Kiessling, O.E. (1938) Grade of Ore, Works Progress Administration, National Research Project, Mineral



xxiv

Technology and output per Man Studies, USBM, Report E-6, August, p. 114.

Bahr, A. and Priesemann, Th.(1988) The Concentration of Gold Ores, Workshop Rare and Precious Metals, Castelo Ivano,Universitá di Trento, Italy.

Benvindo da Luz, A. et all (1990); Manual de Usinas de Beneficiamento, publicação avulsa, CETEM, Rio de Janeiro.

Ottley, D.J. (1979) Technical Economic and other Factors in the Gravity Concentration of Tin, Tungsten, Blondion and Tantalum Ores, Minerals Sci. Engng., vol. 11, no 2, pp. 99-121.

Beever, M.B. (1982) Materials, Technology Change and Productivity, Materials & Society vol. 6, no 4.

Beever, M.B. (1976) The Recycling of Metals: I - Ferrous Metals; II - Non-Ferrous Metals, Conservation & Recycling, vol. 1.

Chapman, P.F. and Roberts, F. (1983) Metal Resources and Energy, Boston, MA: Butterworth.

Mar, J.W. (1981) Testimony at Hearings of the Subcommitee on Science, Technology and Space of the Comittee on Commerce, Science and Transportation of the Senate, Washington. D.C., U.S.G.P.O.

Hasialis, M.D. (1975) Improvements in Minerals Recovery, National Materials Policy. Proceedings, National Academy of Science, Washington, D.C.

Yoshiki-Gravelsins, K.S. et al.(1993) Metals Production, Energy and the Environment, Past I: Energy Consumption, JOM, pp. 15-20, May.



xxv

Conard, B.R. (1992) The Role of Hydrometallurgy in Achieving Sustainable Devolpment, Hydrometallurgy, 30, pp. 1-28, Elsevier, Amsterdam.

Doyle, F.M. & Duyvesteyn, S. (1993). Aqueous Processing of Minerals, Metals, and Materials, 1993 Review of Extraction Processing, JOM, pp. 46-54, April.

Nicol, M.J. (1993) Progress in Electrometallurgy Research and Applications, 1983 Review of Extractive & Processing, JOM, pp. 55-58, April.

Hancock, G.F. (1984) Energy Requirements for Manufacture of some Non-Ferrous Metals. Metal Technology, vol. 11, vol. 11, July, pp. 290-299.

Whitter, W. and Hoskins, C. (1984) Energy Required to Process Ingots semis, and finished products, Metals Technology, vol. 11, July, pp. 307-307.

Forrest, D. & Szekely, J. (1991) Global Warming an the Primary Metals Industry, JOM, pp. 23-30, December .

UNIDO. (1987) Pollution Problems and Solutions in the Non-Ferrous Metals Industry, First Consultation on the Non-Ferrous Metals Industry, ID/WG. 470/3, Budapest-Hungary.

UNEP. (1993) Environmental Management of Nickel Production: A Technical Guide. Paris, (Technical Report, 15).

Harries-Rees, K. (1993) Minerals in Waste and Effluents Treatment, Industrial Minerals, pp. 29-39, May.

Villas-Bôas, R.C. and Fellows Filho , L . Technological Challenges Posed by Sustainable Development : The Mineral extraction Industries , p.408 , IMAAC/UNIDO and CYTED , Rio de Janeiro , 1999 .



xxvi

Villas-Bôas , R.C. and Barreto , L. Mine Closure in Iberoamerica , p. 581 , IMAAC/UNIDO and CYTED , Rio de Janeiro , 2000.

I. Working concepts and ideas



3

SUSTAINABLE DEVELOPMENT: CONCEPTS, SCENARIOS AND STRATEGIES FOR R&D

Roberto C. Villas Bôas CYTED-XIII and IMAAC

Maria Laura Barreto, Heloisa Medina, Carlos Peiter CETEM

INTRODUCTION

This paper discusses the contemporary debate about the concept of sustainable development, also introducing two possible scenarios of S.D. and their effects on technological research. This proposition is appropriate for the term sustainable development has been taken by different groups of the society, i.e., environmentalists, politicians, scientists and others, that refer to it as an aprioristic concept. If the frequent use of the term is important, as it shows general public acceptance, on the other hand the absence of a clear definition results in a lack of content; hence, it is often misunderstood as a mere environmental concern. This obviously brings serious consequences when it is needed to define policies since the conceptual unclearness leads to a an irresolution of the ways to take. The concern over the concept of sustainable development is not only academic but it is also related to the practice without which the term sustainable development lies empty and useless, reduced to a modern rhetorical resource.

The need of such discussion lies in the fact that this debate is gaining the media and forcing a public opinion commitment that eventually leads to social pressures against changes in legislation that, in its turn, are translated into more restrictive codes of behaviour of certain economic activities.



4

This paper is divided in four parts: first, the concept according to the international organisations; second, the theoretical concept; third, the scenarios and finally, the fourth part and last, the projections of the scenarios on R&D.

1. THE CONCEPTS ACCORDING TO THE INTERNATIONAL ORGANISATIONS

Discussions about the concept of sustainable development go back to the 70’s when, during the Founex meeting (Founex UN/EPHE, 1972), a new development option was outlined, incorporating "environmentally suitable strategies for fostering more equitable socio-economic development"1, called ECO-DEVELOPMENT.

The 1972 Stockholm Declaration and the 1974 Cocoyoc Declaration reasserted the concept and the proposals of eco-development. However, it was in 1980 in a document entitled "World Conservation Strategy", prepared by the International Union for the Conservation of Nature, that the words Sustainable Development were acclaimed.

The concept arose closely followed by strategies of action for its implementation. In this sense it is not a theoretical concept strictly speaking, but it is instrumental; and here lies the criticisms, according to Baroni, by Khosla and Sunkel. Khosla criticizes the Stockholm Declaration because it establishes a "strategy confined to live resources, focused on the need to maintain genetic diversity, the habitats and the ecological processes and incapable of dealing with controversial matters related to international political and economic order, wars, as well as armament, population and urbanisation problems"2.

Sunkel makes a second criticism of the document to the effect that the strategy presented "was essentially concentrated on the



5

supply side, assuming that the structure and the level of demand were autonomous and independent variables, and ignoring the fact that if a style of sustainable development must be pursued, hen both levels and particularly the demand structure, must be fundamentally changed"2.

A series of Workshops were held and reports were produced by international organisations, intending to give substance to the term and to establish principles. Among the most important is the United Nations Programme for Environment (PNUMA) which supports the document "World Conservation Strategies". Finally, the World Commission on Environment and Development (WCED) took up the concept of sustainable development as being development that satisfies the needs of the present without jeopardizing the abilities of future generations to satisfy their needs.

This same Commission (WCED) elaborates the first document which tries to express the concept concretely: the Brundtland Report, presented at the UN General Assembly in 19873. The Report exhaustively defines the so-called “imperative strategies”.

The great merit of this report seems to be the effort to make the concept of sustainable development operative, expressed in the imperative strategies, as well as to seek establish itself as a platform for international negotiations. For Baroni, the greatest criticism is that referring to the withdrawal of the "requirement established originally in 1986 at the Ottawa Conference, regarding the need for equity and social justice for sustainable development"2.



6

2. THEORETICAL CONCEPT

The literature dealing with theoretical analysis of S.D., basically two concepts of are found, according to the interpretation of development and sustainability, or of the binomial development/ environment.

For Baroni, for example, when seeking to define development and sustainability, the different and even contradictory concepts are quite clear, whereas for Acselrad, the differentiation of the concept of sustainable development emerges when the environmental crisis is interpreted. He says: "The first (meaning of the term) recognises the market's inability to respect the environment's limits and proposes the creation of signalling elements that would make it possible to assure the continuity of the capitalist development model. The second line of interpretation sees the environmental crisis as a manifestation of a crisis in the capitalist development model and finds ways for overcoming it in the introduction of changes in the structure of power over natural resources”4.

In fact, both authors share the opinion about the existence of two ways of interpreting the term sustainable development and come to the same conclusions along complementary routes. As a matter of methodological option in this paper it is being used the differentiation of the term proposed by Baroni, since it will allow the two viewpoints to be more precisely distinguished.

In the first meaning of the term, sustainable development means economic growth. For this viewpoint there is no contradiction between growth and sustainability because "governments concerned with long-term sustainability do not need to limit the growth of the economic product as soon as they stabilise the consumption of aggregate natural resources". Still adhering to this viewpoint, a more positive argument in favour of economic growth starts from the presupposition that poverty is largely responsible for environmental degradation. The elimination of poverty would be a condition for



7

ecological sustainability and the role of economic growth in that process would be fundamental, with the need to change the quality of such growth. Baroni says "It is argued ... that economic growth is absolutely necessary for sustainable development"2. Here, social objectives such as improving the quality of life and the end of poverty are objectives of sustainable development, although based on an operational strategy of economic growth.

The term sustainability, for this meaning of sustainable development, contemplates basically the ecological dimension, and not social policies. Hence, it would be "the existence of ecological conditions necessary for providing support for human life at a specific level of well-being through future generations"5. Acselrad, on this point, says: "Concerned with sustaining the basis of natural resources for future production, this concept proposes the introduction of a new environmental restriction (...). Ignoring the conflict for control over natural resources, it seeks to create conditions for saving natural resources, without, however, considering the socio-political conditions that govern the control and the use of such resources”4 The concept of sustainability, from this viewpoint has evolved from the simple intention to preserve natural resources to identify the environment as a capital in terms of accounting system.

David Pearce elucidates this thinking: "sustainable is the development which considers the expansion of environmental capital in proportion to the population growth" and "Sustainable is the development that reinvests in the environment to assure its conservation and its recovery”.4

Nature, which until then had provided the working capital (raw materials and input) and free services (water, soil and air for disposing of waste), begins to provide fixed capital elements, that is, those that need to be conserved throughout the productive cycle.



8

For Acselrad, the "diagnosis of this line of thought says that the roots of the environmental crisis are in the fact that capital considers the environment to be a free asset, and environmental damages as externalities (...) this system sanctions only what is the subject of private appropriation (...) all damage caused to the public interest is not expressed in prices. In this sense, the environmental crisis results from the inability of capitals to calculate the environmental damages that their activities generate (...). The solution would be to correct the short-sightedness of entrepreneurs and start seeing the environment as an economic asset, with a price. (...) what is put forward as a solution... the 'internalization of environmental costs”.4

The second meaning of the term sustainable development sets development against economic growth, considering sustainable growth to be a contradiction.

For this meaning, development would therefore involve a socially desired phenomenon assuming two basic objectives: the end of poverty and better distribution of income, which are not very unlike the traditional development declared goals. The so-called limitation of the ecosystem's ability to support, which appears in the two senses of development, has a special meaning for the latter, involving the redefinition and even limitation of humanity's consumption habits, which would be determined socially.

The term sustainability, for this meaning of sustainable development, assumes the concept of ecological, political and social sustainability, and in this sense, for both concepts, there is the matter of environmental rationality, strange because new, and which opposes, or aggregates, to the traditional economic rationality. The difference lies in how strategies should be established for attaining sustainability. In this meaning, what can be sustained, how and for how long, are answers socially determined in a process through participation of society and even a social consensus. Hence, while



9

for the first meaning of the concept of sustainable development the internalization of environmental costs depends upon the existence of basic instruments which make it possible to define parameters of the limits on the ecosystem's ability to support, and also the "measurement" and defining the problems of environmental damage, for the second meaning the non-existence of such instruments does not represent such an important technical-scientific barrier, to the point of significantly interfering either in the debate or in the definition of strategies for action.

For this latter point of view, the origin of the environmental crisis is exactly in the given model of development and in the way of usage of nature that it implies. In logics of capitalism, the utilization of natural resources is the result of the private economic reckoning of enterprises, which only consider those market elements that are expressed through the prices system - such as raw materials and land. The conditions and the global equilibrium of the environment are not of consideration. In this way, sustainable development would only be possible if the limits on the control of capital are put on the use of the environment, through a predominantly political action. It can, therefore, be seen that sustainable development would involve a change, or even societal rupture.

Lélé, quoted by Baroni says that, the prevailing interpretation of sustainable development is "a form of societal change which, in addition to the traditional development objectives, has the objective or the restriction of ecological sustainability. Obviously, this is not independent of other objectives (traditional) of development. Trade off normally have to be made between the extent and the rate at which ecological sustainability is attained vis-à-vis other objectives. In other cases, however, ecological sustainability and traditional development objectives (like satisfying basic needs) can mutually strengthen each other”.2



10

3. SCENARIOS6

The scenarios constitute methods of anticipation which indicate ways to future development. In this text, two large alternative scenarios were adopted: Scenario I, inertial or trendy , which is characterised by the continuity of present day dominant tendencies and another of change or rupture, Scenario II, based on the discontinuity of present courses and wider ranging transformations. The time horizon considered is the year 2015.

In order to give substance to the scenarios and rebate them into R&D actions, materials were chosen as the industrial area of interest.

Scenario I

This scenario describes and explains the results of continuity and the expected evolution of the main tendencies noted at present with regard to factors that are critical in the future of the materials.

The standards of consumption and production in the industrialised countries undergo continual pressure from the environmental groups. As a consequence, there is a growing incorporation of new technologies that increase energy efficiency, intensive recycling of materials and the substitution of scarce materials, specially rare metals, with abundant materials.

The trendy scenario adheres to the modern line of globalisation of the economy, imposing a model of competitive insertion under the terms dictated by the "world class standard"7, i.e., that which today’s best business is able to achieve... In the current environment of “continual improvement” the better businesses are constantly redefining what is understood by “world class”. That is, the parameters are always changing, in which the more dynamic sectors are those that are more intensive in technology,



11

i.e., the electroelectronic, aerospace, information technology and communications sectors. Control over the new technical production paradigm (new ways of organising production, greater flexibility in productive processes and intensive use of new technologies) is exercised by the developed countries, to by-pass environmental restrictions and to exploit their availability of natural resources. Technological innovation is seen only as a competition factor, that is, technology is conceived as a strategic element to be incorporated into products so as to increase their penetration in world markets.

The market is the conductor of the logic of the economic growth process, where external competitiveness is the basic indicator, with little emphasis on social problems. Political and socio-economic inequalities are heightened between developed and developing nations, as well as in the interior of the less developed countries, where levels of absolutely poverty get worse.

In international trade, there is a prevailing tendency to greater liberalisation with regard to industrialised products. With the new technical production paradigm, there is an accentuated reduction of trading in primary products and particularly non-renewable products.

The internationalisation of markets, however, heightens the concentration of trade among industrialised countries, strengthening integration in the regional economic blocs, and increasing the North-South lag. Technological development, pressured by environmentalist interests, has a strong reducing impact on the exports of the developing countries which are mainly concentrated on primary products. Without foreign exchange revenues, these countries are not participating in the growth of world trade. The access of the countries of the South to the new technologies is restricted on account of their strategic value in global competition.

Another significant aspect in this scenario is its environmental protection model. It brings two main characteristics, firstly, because it fosters a process of imposition, where the emphasis



12

is put on the exercise of authority, particularly through regulatory mechanisms that inhibit and penalize. Secondly, in this scenario, the technological capability necessary for dealing with environmental problems remains all virtually concentrated in the developed countries, which make a point of exercising a monopoly over such technologies.

In this context, however, there are less possibilities of environmental protection measures really being effective at long term, since they are carried out "from the top downward", without being essentially rooted in social participation and specific ecological awareness for each local context.

In connection with this model of environmental protection, it is noted that there is a predominance of a "cultural mimicry" distinguished by a dual reality: on one side, a First World where the consumption standards derive from a particular culture and are compatible with the rates of growth and of spatial distribution of their populations; and, on the other, a Third World that yearns after the First World's consumption standards. In this way, the First World's style of society and values are hegemonic and conduct all the appraisals of level of development and quality of life, specially with regard to the ecological issue. In the meantime, while the First World seeks to keep up its standard of living, with some incremental alterations already under way in its consumption standards, it tries to prevent the less developed countries from attaining this standard of living, and to stop their economic exploitation of their natural resources, alleging that the environment must be preserved. With regard to the environmental issue, the developed countries still are, with their development model, the greatest polluters. All the same, some attenuation of this process has already been felt since the 70’s, when the crisis of the model began at world level, such as: less intensive use of natural materials, greater efficiency in the productive process with regard to raw materials and energy input in general, greater emphasis on recycling, of products and materials, among the



13

principal changes. That is, the change began on the production side, exactly to avoid the level of material consumption of the developed societies being affected.

In this scenario, the role of the state is marked by the fact that it is in the hands of two large groups of economical interest: that of the big companies and, on a smaller scale, that of the international environmentalist movements. The financing criteria for sustainable development are thus dictated by international organisations.

The feasibility of the trendy scenario has its bases in the political-economic hegemony of the developed countries, that forces their proposals to prevail, dictating the rules and institutional models that govern international affairs. They preponderantly establish and benefit from pacts, blocs and political and economic alliances among nations. This scenario represents the strengthening of the "hypercolonialist" positions in the world context, the reduction of the sovereignty of States of the developing countries and the strengthening of the role of transnational capital.

The political support of such a model of international inequality is based on the performance of the industrialised countries. The new technical production paradigm applies, essentially, to the industrial sector which - since it saves labour - causes technological unemployment. To avoid the political and social consequences of unemployment, governments are obliged to direct their economies toward greater verticalization, fostering technologies that will take advantage of their natural resources to use up the workers in excess from primary production.

The peripheral countries will face serious economic difficulties. Their exports are faced with the barriers of the regional blocs, their products are in sectors where there is declining demand and they have no access to technology. In view of the strong social tension deriving from the growing socio-economic disparities and from the strengthening of ethnic movements, there will be a



14

proliferation of regional military conflicts, mainly involving peripheral countries. This political instability involves the industrialised nations which, through international organisations, are called upon to mediate in the conflicts and take the refugees, problems.

In view of this situation of economic and social inequality and growing conflicts, migrations from the less developed countries to the more developed countries grow in volume, increasing their unemployment problems.

In spite of the pressure from the international organisations and environmentalist groups, the developing countries do little or nothing to alter their standards of natural resources exploitation, nor to restrain the degradation of the environment. The environmental consequences, of the rain forests disorderly occupation, of the atmospheric pollution caused by heavy industry and the military conflicts, are world-wide. The environmental gains achieved in the industrialised countries are outweighed by the environmental degradation in the peripheral countries.

Scenario II

This scenario represents both a deep discontinuation of the historic tendency of competition and a global political economic and technological restructuring. These changes favour a more equitable and balanced international development.

In this scenario, the logic of the market coexists with the logic of its control and social satisfaction, where the principles of reciprocity and redistribution in the conducting of economic and social activities are strengthened. Economic sustainability is provided by the pursuit of efficiency in macrosocial terms, and not only according to the microeconomic profitability criteria. The growth rates are not so important as absolute indexes, but rather seen



15

as being related to the social and spatial distribution, of the population's quality of life. Socio-economical development is fundamentally the result of production focused on raising the majority of the population living standards and not to satisfy the sophisticated standards of those who are already part of the select consumer market. In this way, the market grows by absorbing those at present excluded.

In this scenario there is in fact a depolarisation in the present pattern of North-South relations, as much in terms of trade as in financial and scientific-technological affairs. The more developed societies are able to provide the less developed societies with funds to facilitate the acquisition of the linguistic, educational and professional attributes necessary for keeping up with them and also to influence in the redirecting of the "global development model".

Access to science and technology, as well as the development and redirecting of such knowledge, are the highlights of a new standard of international co-operation, particularly because of the need for new ways of using natural resources and of adapting to different ecosystems, in order to achieve environmentally healthy development.

In this scenario, there is a greater balance of forces between the different players, while the dominant political force comes from the civil society, which begins to have more availability and access to information.

The environmental protection model is marked by encouragement and by making use of opportunities offered by a new paradigm that is global rather than ecologically healthy, motivated primarily by endogenous ecological awareness adapted to each regional and local context in accordance with each other. It is this new awareness that alters the market conditions which, in their turn, point to environmentally suitable productive practices. At the same time, technical-scientific capability in the environmental area of



16

developing regions is strengthened by the co-operation and by the financial support of the more developed regions.

In the context of scenario II, competition is replaced by an interpretation of the concept of "competitiveness", which gains force in the relations it establishes with other concepts (equity and sustainability) and social values (democracy, human rights and social participation). In this interpretation, competitiveness is not interchangeable with competition, but also it has not yet been able to manifest its own status as a concept.8

The new productive paradigms may be described as a "partnership" between the developed regions and those that are developing technologically. The consumption and production standards will be profoundly altered in favor of energy efficiency, diversification of sources of energy (specially renewable sources), greater durability of products, recycling of materials, the substitution of scarce materials by abundant materials, and by the miniaturisation of components and products. In fact, scarce natural resources are being progressively replaced by intellectual resources, with much benefit for the protection of the environment.

Finally, attention should be drawn to one aspect which could be called "unfinished" in Scenario II, whose main difficulty results from the generalisation of promises of social participation, equity and control of the environment. In the case of Scenario I, if the social security and unemployment aspects are not embodied, in rebuttal the actual continuity of the current economic rationality points to what should be done at a micro and even sector level. Whereas in Scenario II, as the paradigmatic behaviour of the competition inclines toward a more complex competitiveness, the routes of this "world model-to-be" are less clear even at the micro and sectorial level.



17

Scenarios and Ideology

In the different approaches here presented it is seen that, at the present, there is an ideological struggle to appropriate the term sustainable development.

Actually, this struggle is not explicit however present in several documents issued by the international organisations and in the literature concerned with a conceptual definition. A deeper discussion on the aspects of the different definitions presented is usually avoided - especially at the level of international organisations - since an agglutinating concept of sustainable development is intended. The concept should bring together the various interests of the UN countries and not separate them, as the old and well-known Third World discourse or even the North/South dialogue. This aspect could explain the lack of debate upon the term sustainable development.

It is to notice that the implementation of the sustainable development could only be possible if it is global - at least according to one conception. It would not be possible the existence of the sustainable development in one single country or in a single group of countries. Moreover, for those who adopt this conception, the wealthiest countries should contribute to the development of the poorest ones by providing them with financial, technological and human resources, lowering, in this way, their own consumption standards. All these objectives would only be achieved by means of a global political commitment. To reach this political commitment the concept of sustainable development should agglutinate the interests rather than separate. Actually, if something can be considered agglutinating, it is not the concept of sustainable development, but its cause: the environmental crisis. Thus, sustainable development would be seen as a necessity, for the lack of an option before the imminent environmental crisis. Sustainable development would be



18

the only alternative for rich and poor countries to avoid a crisis that would equally affect them.

The two scenarios may be viewed as shown in Table 19.

SCENARIO 1 SCENARIO 2

Social dimension: Social aspects are not stressed; growing inequalities of income among individuals and nations.

Social dimension: Involving more equality in the distribution of income property and access to goods.

Economic dimension: Emphasis in international competitiveness imposed by the technical standards of production in the developed world.

Economic dimension: Macro-social factors overcome micro-economic profitability, as decision criteria, mainly for improving well-being and valorizing work.

Ecological dimension: Emphasis on preservation and recuperation of the physical environment through technology. Environmental cost penetrate the decision criteria.

Ecological dimension: Creative use of each ecosystem’s potential; rational use/conservation of energy and natural resources; reduction of the volume of discards and pollution.

SCENARIO 1 SCENARIO 2 Political-institutional dimension: “Global commitment” is imposed by the proposals, rules, and institutional models of the developed world.

Political-institutional dimension: “The global commitment” is achieved by a new agreement, among policy-makers and domestic and international agents.

Cultural dimension: The consumption standards in the developed world are maintained and

Cultural dimension: The search for sustainable solutions is mainly oriented by the increasing



19

used as reference for the rest of the world, in spite of the modifications in way of life caused by environmental factors..

importance of local conditions, looking for better standards of life all over the world.

4. THE REBATE INTO R&D IN THE MATERIALS SECTOR OF THE ECONOMY

The rebate to the strategies of the respective R&D needs are shown in Table 2.


Social dimension:

Emphasis on materials intended for increasingly selective and sophisticated consumer markets, and highly specialized jobs.

Social dimension:

Emphasis on materials intended for meeting social needs and generating accompanied by training local labor.

Economic dimension:

Emphasis on materials intended for increasing competitiveness in the external market.

Economic dimension:

Emphasis on strategies for materials that produce a positive effect one earnings and employment.


Ecological dimension:

Emphasis on substituting materials that are scarce in the developed countries.

Ecological dimension:

Emphasis on materials based on renewable and/or abundant resources, according to the availability of local natural resources.

Political-institutional dimension: Political-institutional dimension:



20

Technological control by the developed countries.

International technological co-operation in the materials field.

Cultural dimension:

Materials based on consumer standards imposed by the globalization process.

Cultural dimension:

- Materials based on the endogenous natural and mineral reality;

- Materials based on endogenous S&T and business experience/capability;

- Materials intended for the local consumption standards.

Spatial dimension:

Spatial concentration of activities on materials.

Spatial dimension:

- Materials that can be processed locally;

- Regional co-ordination in the materials;

- Balance in the territorial distribution of activities in materials (at international and local levels).

In a deeper study and effects of these scenarios into R&D goals, a precise identification of materials, a menu, was developed9; for the purpose of this paper no such presentation is to be conducted.

5. IN CONCLUSION

The debate over a clear definition of S.D. and its role in T.F. is still open, needing deep theoretical socioeconomical analysis and propositions10.



21

The technology Foresight S.D.’s scenarios discussed in the paper, i.e., the so called trendy and that of a rupture of paradigm are very useful tools for expressing different concerns over R&D.

This exercise was made over the materials sector of the economy, showing distinct tendencies for diverse materials when subjected to a given S.D. scenario.

BIBLIOGRAPHY

SACHS, I. Estratégias de transição para o Século XXI. In Desenvolvimento Sustentável. BURSZTYN, M., et, Editora Brasiliense, 1993.

BARONI, M. Ambigüidades e Deficiências do Conceito de Desenvolvimento Sustentado. In Revista de Administração de Empresa. São Paulo, 32(2). Abril/Junho, 1992.

WCED - The Report of The World Commission on Environment and Development. Sustainable Development: a guide to our common future. Genève, 1990.

ACSELRAD, H. Desenvolvimento Sustentável: a Luta por um Conceito Revista Proposta n° 56, Março, 1993.

LELÉ, S.M. in BARONI, M. Ambigüidades e Deficiências do Conceito de Desenvolvimento Sustentado. In Revista de Administração de Empresa. São Paulo, 32(2). Abril/Junho, 1992

MEDINA, H.V.; BARRETO, M.L.; MARQUES, I.C. Desenvolvimento Sustentável e Microeletrônica no Brasil. Mineral/CETEM, 1994.

SEQUEIRA, J. In “World Class Manufacturing in Brazil: A Study of the Competitive Position”, presented by the American



22

Chamber of Commerce and FIESP (Federation of Industries of the State of São Paulo), 1994.

MÜLLER, G. A Competitividade como um Caleidoscópio, São Paulo Perspectiva, v. 8, no 1, pp. 23-32, 1994.

VILLAS BOAS, R.C. et al. Sustainable Development and the Advanced Materials: The Brazilian Case. R.C. Villas Bôas - Editor. IDRC/CRDI-CETEM/CNPq, 1995.

BARRETO, M.L. Desenvolvimento Sustentável: Uma Abordagem Conceitual. Mimeo/CETEM, 1995.



23

THE INDICATORS OF SUSTAINABILITY IN MINING

M.Sc. Juan Manuel Montero Peña. Cuba

The concept of sustainable development suggests the immediate necessity to know the impacts that a certain economic activity causes on the environment by means of the previous establishment of indicators that can be expressed in figures. This is an idea which is present in this economic model's theoretical budgets which accelerates the development where the use of resources is proportional to their natural renovation or to the generation of new substitutes in the productive processes. The idea that the rates of emission of waste should be proportional to the rates of natural absorption is also included.

With today’s technologies, man cannot determine up to what extent the immediate ecosystems and those under the same chain are being affected. As a result, the author considers that an activity contributing to the economic development of a region can be measured and it is also determined the impacts on the environment so as to create conditions to facilitate the realization of the social projects of a certain group, yet not knowing with accuracy the impacts that it causes.

In mining, to know if an activity is not sustainable, (Montero, Mining and Geology, No.4, 2001) it is necessary to possess a series of indicators that enable to know the viability of this activity for the society. It is already known how this activity generates conditions for the appearance of alternative economic activities but not the extent to which it is sustainable.



24

THE INDICATORS OF SUSTAINABILITY AND THE APPROACHES TO MEASURE SUSTAINABLE DEVELOPMENT

The speech on sustainable development has established the debate about the necessity of measuring the impacts of man’s activities on nature. However, nowadays we don't possess the necessary instruments to put it into practice. The levels of extraction of some raw materials can be quantified, when dealing with physical resources as wood, coal or the quantity of material needed so as to obtain a certain quantity of mineral. But it is impossible, at present, to determine the magnitude of damage that these activities cause.

Some authors studying these issues suggest different indicators to reach sustainability without defining previously the sphere that they really want to quantify. In our opinion it is firstly compulsory to define, if it is sought to measure the rate of the use of a resource, the quantity of raw materials needed to obtain a final product, their profits based on the prices imposed in the market or the impacts on the environment.

If sustainability is viewed in its wide concept as an interaction between ecological, environmental, social and political elements, it would have to possess indicators to determine the impacts on each of these elements. As it may be understood this is not possible at present.

And it is impossible because these indicators or approaches don't have a universal character. It is necessary to adapt them to the cultural contexts, in all their dimensions. They demand local, regional or municipal analysis and of the presence of all the community factors, from the state to community organisations.

The proposal discussed in this project is based on the idea of evaluating how the activity in question contributes to the appearance of alternative to the current productive processes, an unquestionable



25

way to achieve sustainability in terms of this economic model's classic vision.

INDICATORS OF SUSTAINABILITY OF MINING RESOURCES

The situation referred previously has created an increasing interest in the formulation of the appropriate indicators to measure the impacts of human activities and the availability of reserves taking into consideration the current rhythms of growth of the world economies and analysing the budgets of the 1992 Summit of Earth, and of the standards of the international organizations that claim to be in favour of sustainable development.

In this sense we can assure that indicators supposedly intended to measure the economic progress have been developed; such as, the System of National accounts of the United Nations; which analyses the international competitiveness of the World Economic Forum; the level of Economic Freedom of the Fraser Institute. Likewise, it is being analysed the creation of social indicators where the Human Development Index of the Program of United Nations for Development (PNUD) is highlighted. With regard to the environmental indicators, these have a more recent history, standing out the works of the Organization for Development and the Economic Cooperation (OECD), of the governments from Canada and Holland; in Latin America, Costa Rica and Venezuela have taken the lead. But great part of the work has been concentrated on the influence humans exert on the environment, as in the emissions of pollutants to the atmosphere.

Every year Cuban authorities make big efforts to measure accurately the indicators of the Index of Human Development, which include aspects directly related with the use of natural resources. Cuban State companies focus their greatest attention on this indicator



26

under the current conditions, in spite of the country’s critical economic situation. However, it is necessary to point out that they still don't have indicators specially designed to measure humans' actions on the environment.

The elaboration of sustainability’s indicators considering the magnitude of sustainable development has to include three essential aspects: the economy, equity and the ecology. These aspects cannot be analyzed separately, otherwise they would not function as a system, fact which is important to bear in mind when trying to establish sustainability’s indicators. These elements provide a more concrete vision of man-world relationship insofar it shows all those included in the wide definition of environment, as the interaction of lifeless, living and socio-economic elements.

It is certainly very easy to determine if an activity is sustainable or not, for which it is only required to simply identify the negative impacts on the environment; however, the truly difficult task is to be able to specify when sustainability is attained. Unquestionably, this is a scientific responsibility of great importance and this is even more complex if the question concerns minerals. The scientists of the area of human knowledge don't have all the necessary elements to qualify an economic activity as sustainable or not, because they don't possess the necessary indicators to evaluate it.

This article presents some indicators that could provide reasonable elements so as to determine whether a mining activity is sustainable or not.

The basis of this analysis is focused on the characteristics of the mineral resources used if they have any application after being worked in a manual or industrial way. In this respect C. Miranda states that the concept of natural resources depends on their usefulness to society. This occurs under, at least, four circumstances:



27

- When the properties of the natural resource are known and applied to meet human needs.

- When the necessary techniques to transform those elements into desirable products are available.

- When the technological knowledge can be implemented in production.

- When the final product effectively meets the demand of clients. (Miranda, 1999).

From these elements it is possible to conclude the existence of certain indicators that should be considered as starting points in the analysis of a mining activity to determine if sustainability is under control. In this aspect, nature is regarded as a source of raw materials, waste deposits and an element providing a status of life and well-being when interacting with communities. These indicators would be: geologic knowledge, technology, economic feasibility, the availability of waste deposits, knowledge of by-products, the integration of resources to nature, the determination of alternative activities and legal approaches.

A quantitative operation of these indicators is required for its full realization, which implies to express them in figures. The analysis is regional in nature for it suits the interests of different inspecting groups and therefore, of the characteristics of the surroundings in which the evaluated object is. For that reason, we cannot provide a unique method to measure sustainability; in other words, these indicators merely give us a methodological guide for the desired measurement. This is valid taking into account other indicators of social and economic development based on the different areas where mining indicators should be applied.

Mining as a branch is a part of an economic system which contributes to the Gross Domestic Product of those countries having mines in exploitation. This means that it should not be measured



28

separately but as a whole and a part of the home economy where macro-economic indicators play an important role. Hence, our efforts are focused on analyzing, from the particularities to the generalities, how mining favors sustainability.

Mining - geologic knowledge

Provides us information on the properties of a given mineral resource and its duration as a means of satisfaction to present generations’ productive needs. These studies allow us to know the evolution of the location through the different geologic eras and the natural conditions that intervened in their origin. It is also possible to establish the relation between a certain mineral resource and those under the same system.

With this indicator, specialists can not only assess how the exploitation of a mineral would be, but also the consequences of this activity on the mining area. In this sense, we refer to pressure indicators, which can be quantitatively expressed. Factors as the waste generated by a given mining activity and the magnitude of the ecosystems’ endurance are previously known. Based on this analysis, it is possible to determine whether an activity is sustainable or not reporting the degree of negative influence upon the mining area. Logically from this point of view a set of necessary strategies should be previously discussed to minimize negative effects and to preserve the areas where the mine is located. This indicator is not only important for non-renewable resources, but for the renewable ones, as well. In this sense, it is necessary to point out that mining - geologic knowledge sets the limits to the exploitation of a resource if it is expected its natural renovation during a reasonable period so that present and future generations may use them.

Moreover, this knowledge provides the necessary elements to indicate the limit of reserves, the type of mineral and the possible technologies for their exploitation. This last aspect suggests that



29

technology or modifications should be used taking into account the type of mineral.

It is of paramount important to widely know about the situation of deposits through extensive mining geologic research on the length of waste assimilation, which indicates the relation between the amount of effluents, and the level of absorption. In this case, specialists are to establish rates to determine the degree of assimilation of the different deposits: water, air and soil. This serves to evaluate the quality of life as regards to the environmental conditions.

The establishment of rates of the relation between the exploitation of renewable resources and the length of their reintegration to the different production systems is decisively required. The rates should be established on the basis of an estimate of errors determined through a wide knowledge on the mining object in question.

Lastly, with mining - geologic knowledge, it is possible to know the accompanying minerals and to determine possible strategies for the application of technologies, accordingly. All this favours decision making in the establishment of a more effective management of resources and toward what sectors possible investments should be addressed.

Technology

Constitutes an essential indicator to determine if the exploitation of a resource is sustainable or not. Man-nature relation is a part of it; that is, technology identifies both positive and negative impacts on the environment. In economic terms, these impacts could be measured considering figures of possible losses that the application of a given technology might generate in mining processes based on the world market prices.



30

Technology is also a value generating new values and it modifies the existing ones, this vision allows us to understand its role in the achievement of sustainability. Technology should be viewed as a cultural element, a social process, a result of the society’s development. It is necessary to have a wide concept of technology; that is, the device and knowledge viewed as a whole.

Technology, in the case of minerals, is sustainable if the objective for which it was designed is accomplished in the exploitation of reserves without affecting the capacity of nature to regenerate. It is equally sustainable if it is able to create open technological systems capable of using industrial waste, obtaining other productions and using accompanying minerals. In mining industries, it is a common practice to keep waste in deposits which are quickly saturated, and that waste, due to its characteristics, is transported outdoors, and this represents a dangerous source of environmental contamination.

The solution to this issue relies on the original design, if based on the real knowledge of the ore technology, it is used in accordance with the concrete characteristics of that object. Technology is an essential element to have a certain compensation for the exploitation of non-renewable resources. Thus, if well handled the environment’s quality is hardly damaged and it also enables the application of other technology in the exploitation of remaining minerals.

Flexible technologies are required in mining because it is simply not sustainable to design a factory to exploit a single mineral. The existence of debris produced by current productive systems is a sample of technological incapacity; which represents a serious threat to the environment. Those residues contain other minerals that cannot be exploited at present. Their interaction with natural and artificial agents, resulting in erosion, constitutes a source of contamination.



31

In production, technology reflects a relationship of the subject - object type, in which subject is represented by humans and all the social relationships in which their economic life is developed. On the other hand, the object is nature viewed in two different ways: the first of them, as that portion that interacts directly with man in production and upon which a given technology acts. The second portion is not directly connected to humans, no human work is involved; however, it receives the negative influences of the use of dangerous technologies.

These impacts are evaluated through the use of a technology, the one that expresses the degree of man's domination of nature and at the same time his commitment with it. To evaluate if a specific technology stimulates the protection of nature, it is required to assess its capacity to influence the generation of negative and positive impacts.

The application of modern technologies generates artificial raw materials which substitute the natural ones in the production process. This helps to protect a great number of resources, especially with legal restrictions imposed; and it also contributes to the process of natural regeneration as they are no longer subjected to the current rate of exploitation.

Economic feasibility

Is other indicator to be considered in the determination of sustainability of mineral resources. In first place, it is necessary to point out that the exploitation of a given ore, having this indicator as reference, is sustainable if it provides large incomes relative to the applied assets during its execution. Environmental elements are included in spite of the fact that they fail to express quantitatively the value of natural resources. That is to say, a company has to generate a margin of income, having the market as reference, so as to increase all its assets and internally negotiate the environmental demands.



32

For the determination of the economic feasibility of an activity it is essential to make an overall analysis expressed in economic figures of the capital invested in the ore exploration, the construction of mining facilities, the acquisition of material resources and manpower, trade, taxes, customs, etc; in other words, to quantify all the expenses made since the installation of the mining complex to the commercialisation of the final product. With this and with market studies, specialists can affirm if the development of a mining object is feasible or not for which they have to include taxes and the environmental regulations enforced in the area. For that reason, we disagree with the idea of setting standards to apply it in any place regardless of its particularities. These elements can be quantified and become expressed variables by means of the design of software and other scientific methods including mathematical models.

In short, companies have to include environmental factors in their production planning. In second place, it is absolutely important to bear in mind that as the economic feasibility depends on the ups and downs of the market, a mining company should, under these circumstances, be flexible in identifying alternative productions that compensate the losses caused by lower prices or less demand.

These compensations are possible by reducing production costs and enhancing the quality of the final product making it more competitive in the market. However, it would be more economical to possess flexible technologies that enable producers to adapt themselves to the demands of the market, which changes under the influence of such external factors as the increase of demand, high prices, and the crisis of traditional producers, etc.

When the different mechanisms of the market, regulators of production, are being altered the strategy to follow is to find mineral substitutes or complementary ores as demand decrease requires or if reserves are exhausted due to its increase. The answers are in a deep



33

mining - geologic knowledge and in the existing technologies permitting the so-called industrial re-modifications.

Surveys should be made on these reserves so as to quantify them in concrete economic values; that is, to know the amount of resources needed to carry out modifications in a particular company and study the actual possibilities of exploiting remaining minerals identified in previous investigations. This implies that a mining project is economically effective if the costs of studies on a necessary and unavoidable industrial re-structure, considering possible resources to be exploited with modified technologies are included in investment expenditure.

Feasibility studies should make reference to mine closing. This is a new issue that apparently is not connected to investment; however, this raises the question involving sustainable development and intergenerational justice, how present mining communities might compensate the irreversible consequences of mining activities on the environment on which future generations depend. We do not refer to the availability of mineral resources but to the vital spaces where to live in.

Beyond any doubt, this problem has apparently nothing to do with a project’s investment, it is alien to investors. This assertion might be true if only the economic variable is taken into account disregarding possible activities to be carried out by communities in case of the exhaustion of resources.

Applying logic, economic feasibility involves the necessity to know the way in which necessary conditions evolve in a concrete mining activity for the identifications of new economic activities. That is to say; in their development strategies, companies should include policies to foster a wide profile training for workers, technical and management personnel so that they can face difficult situations effectively once their source of exploitation is exhausted. This vision is complete if we start considering that certain technologies that



34

become heritage of these communities are developed and that they can be used as a way of living.

Economic feasibility applies if all these factors are analyzed systematically, giving them economic values as a way of guaranteeing their qualitative evaluation.

Knowledge of by-products

Is an important indicator to achieve economic feasibility. For that reason, it is imperative to know in advance which of them produces a mining activity so as to find ways to sell them as raw materials or to protect them from erosion. Nowadays, management of by-products is a part of the general strategy of mining companies (Espí, 1999).

In this project, by-product management is understood as their export and the creation of conditions to store them for a further use. In this case, there would be a logical increase in production costs which should not exceed the expenses generated in any of the stages of the productive process. This should be expressed in exact figures so as to determine whether an activity is sustainable or not, taking into consideration that this indicator is reflected in human work, space, the degree of assimilation and the capacity of tolerance of nature.

A by-product generating company, unable to process them with modern technologies, is not sustainable. An alternative to compensate the negative influence of mining might be to design metallurgic mining complexes for the exploitation of by-products.

For underdeveloped countries, this would be only possible through technological transference and the opening of companies around the world.

Integral management of by-products is directly related to the application of a particular technology of mining and metallurgical



35

processing, that is, by-products’ generation depends on these factors, which can be minimized or maximize according to the industry’s environment. The industrial re-modelling for which representatives of the industrialized countries claim is practically impossible for developing nations, for which large investment is required making mining processes more expensive and less economical.

By-products are classified into: highly toxic, moderately active and harmless. The first category is represented by those endangering all kinds of animal species including human beings, destroying living conditions of the areas home to a wide variety of species and the environment as well. The evacuation of this industrial waste is considerably expensive for special conditions of transportation and storage are required.

The second category is represented by those altering the state of species; thus, modifying life standards of the population of the area. This might result in a modification of the genetic information of species, making them more aggressive, therefore, representing a threat for weaker species.

The third category is represented by those that could be assimilated by nature without being a serious threat because their original compositions are not completely modified. This does not imply that their integration is inexpensive; on the contrary, it should be regarded as an additional expense generated in any mining project.

Unquestionably, knowledge of by-products as an indicator provides important information in feasibility studies for the commencement of any mining activity; that is why, it is advisable to design programs using the data provided by this indicator. This information together with the resulting data of the other indicators should be analyzed as a whole, otherwise, they would be a mere series of useless numbers.



36

The integration of resources to their environment

Represents the core of the society’s compensation in their development attempts. The fact relies on how to re-incorporate residues to their source of origin, not in landfills; this means their gradual and systematic incorporation to the area they belong. Logically, this integration is artificial as minerals after being processed lose a high percent of their initial characteristics; however, these transformations are rather superficial as the re-incorporation process is not accomplished.

However, the importance of this issue lies in their incorporation to the system where they interacted with other elements that no longer exist as a result of the different activities carried out on completion of mining. That is, if nature is analysed as a system, it is reasonable to believe that the incorporation of resources to their origin is not completed efficiently. Even if a partial recovery of initial environmental characteristics is attained, it is impossible to regain specific features enabling the return of the species that once lived in the area.

My proposal establishes a series of factors indicating the real possibilities of integration based on the degree of regional development and the type of mining to be carried out so as to determine if the activity is sustainable or not. In this aspect, we refer to the re-establishment of environmental conditions and the conservation of the genetic basis; consequently, taking it as a linking principle of generations. For this system, it is required the design of models containing its corresponding numerical equivalent, for which special equipment dealing with this indicator is to be created.

In this aspect, companies, in their management policy, should consider the availability of land to be used as deposits. Such analysis involves the intention to re-incorporate resources to nature. Other spaces, not used by mining, can be exploited with productive or social purposes.



37

It is an economic loss to keep residues outdoors for their properties are reduced by the action of erosion. Storing those left by mining in natural spaces preserves their potentialities to be used in other activities. This is economically feasible because it enables the use of existing mining facilities in new projects. These losses represented by numbers pave the way for the analysis of sustainability of mining projects. Nickel mining is a non-sustainable activity if we analyse its exploitation with modern technologies and its waste exposure in deposits technically deficient. In Moa nickel factories, the content of cobalt in the final product is considered as a trace element, just to name an example.

The determination of alternative activities

Is an indicator that reaffirms the thesis related to the mining activity and the possibility of the existence of a type of development that protects the environment by means of compensations. The governmental and management authorities are forced to know the specific work mining employees will perform once resources are exhausted.

The objective is to analyse different economic indicators based on the characteristics of a mining project and at the same time to take them as reference for: the contribution of a given activity to the Gross Domestic Product of a particular country, the emergence of new working place, the creation of new productive and social infrastructures; the construction of highways, hospitals, schools, business and entertainment centres, and the so-called meeting places, etc.

The question lies in determining the magnitude of the real contribution of mining to the different communities in each indicator above mentioned. That is, to know exactly how much it contributes to social development creating special conditions for the evolution of alternative activities, which would be impossible to accomplish if there are differences in the distribution of wealth and mining projects



38

are not included in integral programs for development. What matters is that mining can benefit the social development of countries and this contribution can be quantitatively measured through the establishment of parameters for each basic indicator.

As regards to the question related to what activities should be assigned to workers employed in the existing mining industries, we refer to the creation of working posts for those workers left without jobs after closing a mine. This issue is much more complex because it involves the analysis of the type of activities that entire mining communities depending on this economic branch will perform and their re-employment in a different economic field alien to their culture.

The personnel should be highly qualified in order to assume other working places in similar or different technological companies. In the general strategy of the company, for the re-qualification of workers it is necessary to give priority to training and the use of flexible technologies.

This policy known as the closing of mines should be considered prior to the approval of any concession granted to start exploiting a mine. This concession should include an environmental permission with a clear identification of the activities to be done after shutting down a mine.

Firstly, this knowledge is validated by doing research on the economic environment where the mine is located with the purpose of knowing in which company mining workers should be re -employed; secondly, it is necessary to determine possible activities to be carried out in the mining facilities to be closed.

The evolution of waste deposits

Becomes an important factor to keep in mind because sustainable development should not only include the source of



39

resources, but also it is very important to evaluate the location of residues

Nature possesses the capacity to recycle the strange matters that humans throw to the different ecosystems. That function is also limited, contrary to the idea of its unlimited character defended by some people. This waste needs time to recycle depending on the level and the possibility of the ecosystem to assimilate it. If the level is higher than nature’s capacity of assimilation, the balance of the impacted ecosystems and of those under the same chain is broken.

This relation is determined by means of a ratio between the emission of residues and the assimilation of deposits. This means to know the capacity of nature to absorb a given amount of waste and the real capacity of deposits to assimilate it analysing the degree of tolerance and their actual burden in a given circumstance.

Sustainable development is a utopia if waste deposits are saturated, if the capacity of assimilation is surpassed, if the occurrence of natural cycles of absorption of waste is impossible. Those that defend the possibility of the existence of sustainability in the mining field should indicate how to measure the levels of waste accumulation, otherwise, they will not have elements to support sustainability.

In the case of mineral waste, after the different metallurgical processes where they occur as single components or as alloys, the time for its natural assimilation is long.

Deposits play a double role: as the final destination of the society’s waste and of industrial production’s residues. In the specific case of mining industries the waste of production represents a permanent concern in the different productive directives. They constitute a permanent source of contamination and a long-term loss of raw materials for future productive processes.



40

Legal indicators

Are an essential factor for sustainability. An activity cannot be approved if it hinders the observance of the laws that a society has enforced in a certain region. It is necessary to strictly observe the legislation of countries and the agreements subscribed in the different international events in order to safeguard the environmental activity as well as the environmental regulations.

There are international regulations to be considered for the interest of the agreements signed by a particular country. These treaties impose obligations that countries should accept and include in their legislations. From the legal point of view, these elements are aimed at determining the feasibility of an activity.

Every economic activity and each independent nation rely on laws that investors have to observe. In Cuba, the enacted Law of Foreign Investment foments the search for sustainable development in their investments, especially in mining, an effort expressed by the Cuban government in the Law of Mines and the Environmental Law. If they are violated, large fines are imposed to offenders.

This indicator enables to know to which extent an activity observes the legislation; and consequently, how it contributes to the restriction of different national projects; that is, how laws become an instrument for the implementation of a political effort that favours, beyond economic interests, the achievement of environmental sustainability. And above all, how laws contribute to the achievement of the compensation of such an aggressive activity as mining is.

CONCLUSIONS

The determination of sustainability indicators in mining is possible starting by evaluating how a particular mining project contributes to the generation of alternative economic activities. That



41

is, how it educates the present generations of mining workers and their communities to create the necessary conditions so that future generations can develop their economies and meeting places.

BIBLIOGRAPHICAL REFERENCE

Acosta, J. Una bioética sustentable para un desarrollo sostenible. En: Fung, T., Delgado, C. (Editores). La Habana: Ed. CENIC, 1996. p.35-44

Arana, M., Valdés, R. Tecnología apropiada: concepción para una cultura. En: Colectivo de Autores. Tecnología y Sociedad. La Habana: Ed. Felix Varela, 1999. p.19-30.

Aspectos económicos del desarrollo sostenible en Venezuela. http://Agenda21-Venezuela.htm 1/23/01

Baró, S. El desarrollo sostenible: desafío para la humanidad. Economía y desarrollo (La Habana), No.1, Vol.119, p.123-140, 1996.

Cendero, A. Indicadores del desarrollo sostenible para la toma de decisiones (Copia Xerox, Incompleta).

Cruz, C. et al. Pensar el ambiente. Temas (La Habana), No.3, p.70-87, 1995.

Cuba, Ley 81 : Del medio Ambiente. Gaceta Oficial de la República (La Habana), Año XCV, No.7, p.47-68, 1997.

Cuba, Ley No.76 : Ley de Minas. Gaceta Oficial de la República, La Habana, No.3, 1995.

Cuba, Ley No.77: Ley de Inversión Extranjera. Gaceta Oficial de la República (L a Habana), Año XCIII, No.3, p.5-12, 1995.

Daly, H. Ecological economics and sustainable development, En: Rossi, C., Tiezzi, Ecological Physical Chemistry, Proceedings



42

of an International. Workshop. The Netherlands: Elseiver Science Publishers B. V.,1990. p.185- 201 (Copia en Xerox Completa).

Espí, J. Las políticas de un sector minero integrado con el desarrollo del país. Canteras y Explotaciones (España), Año XXXI, No.376, p.50-56,1999.

Espí, J. Los minerales como recurso natural. Tecno Ambiente (España), Año IX, No.89, p.37-41, 1999.

Guimaraes, R. El desarrollo sustentable: ¿ Propuesta alternativa o retórica neoliberal ?. EURE (Chile), vol. XX, no.61, p. 41-56, 1994.

Guimaraes, R. Patrón de desarrollo y medio ambiente en Brasil. CEPAL (Chile), No.47, p.49-65, 1992.

Guy, McCoy, S. Environmental aspects of revegetating toxic nickel mine waste in New Caledonia. http://coombs.anu.edu.au/Depts/RSPAS/RMAP/stephanab.htm. 7/29/1999.

Hackenberg, N. Eficacia de la política ambiental en América Latina. Desafíos, conceptos, problemas. Contribuciones (Argentina), Año XIII, No.1, p.83- 102, 1996.

Heatcoate, I. Balancing economic development against indigenous values: Nickel Mining in Coastal Labrador. http://www.prenhall.com/nebel/html/updates3.html. 7/19/1999.

Hempel, L. Sustainable Communities: from Vision to Action. EE.UU: Claremont Print & Copy Center, 1998. 37 p

Herrero, J. Medio ambiente y desarrollo alternativo. Madrid: Edit. Iepala, 1989. 400 p.

Ian Hore-Lacy. Sustainable Stewardship: A mineral Industry Perspective. http://www.uic.com.au/sustew.htm 8/31/1999.



43

Indicadores de sustentabilidad. http://redes.org.uy/ 1/23/01

Lasting Benefits from Beneath the Earth: Mining Nickel from Voisey’s Bay in manner compatible with requirements of sustainable development. http://www.innu.ca/tgreen1.html 8/31/1999.

Leff, E. Ecología y Capital. Racionalidad ambiental, democracia participativa, y desarrollo sustentable. México: Siglo Veintiuno editores, 1994. 403 p.

Lemons, J., Westra, L. Ecological Sustainability and integrity: Concepts and Approaches. Environmental Science and Technology Library. Kluwer Academic Publishers. (Copia en Xerox Completa).

Lowry, P. Diversity, endemism, and extincion in the flora of New Caledonia. http://www.mobot.org/MOBOT/research/ newcaledonia/caledonia.html 8/26/1999.

Lyon Dahl, A. Small island environmental management. Mining impacts. http://www.unep.ch/islands/siemi3.htm 7/26/1999.

Mateo, J. Desenvolvimento sustentável: níveis conceituais e modelos. En: Brito Cavalcanti, A. Desenvolvimento sustentável e Planejamento. Bases teóricas e conceituais. Brasil: Fortaleza-CE, 1997. p.51-62

Mateo, J., Suárez, C. La ciencia y la tecnología en el debate ambiental. En: Guadarrama, P., Suárez, C. Filosofía y Sociedad. Tomo II. La Habana: Ed. Felix Varela, 2000. p.720-741

Meadows, D., Meadows, D., Randers, J. Más allá de los límites del crecimiento. España: Círculo de Lectores, 1993. 335 p.

Milian Z. Ecología versus desarrollo sostenible. En: Fung, T. Ecología y Sociedad: Estudios. Cuba: Edit. CENIC, 1996. p.45-68



44

Mineral exploration at Emish (Voisey’s Bay). http://www.innu.ca/voisey1.html 8/31/1999.

Mining. http://www.corporateimage.com.au/ nickelmining.html 7/19/1999.

Mining in Remote Areas. http://emcbc.miningwatch.org 1/23/01

Miranda, C. Enfoque acerca de la relación medio ambiente – desarrollo. Referencia histórica. En: Colectivo de Autores. Tecnología y Sociedad. La Habana: Ed. Felix Varela, 1999. p.215-231.

Miranda, C. Filosofía y medio ambiente. Una aproximación teórica. México: Edit. Taller Abierto, 1997. 190 p.

Ortiz, A. La industria minera y el medio ambiente : ideas para una interpretación ecológica amplia. Economía Industrial (España) no.297, p.105-116, 1994.

Osterlund, S. Mining, Environment and business on the Kola Peninzula. http://www.bergsmannen.se/english/centek.htm 6/6/2000.

Otaño, J. Introducción a la especialidad de minería. La Habana: Ed. Pueblo y Educación, 1984. 52 p.

Overview of Russia’s Nickel industry http://www.bisnis.doc.gov/bisnis/isa/981011r5.htm 6/7/2000.

Pérez, A., Clark, I. et al. Conferencia Ética y Cultura del Desarrollo : Construyendo una economía sustentable. Revista Bimestre Cubana (LaHabana), Vol. LXXXIV, No.9, p.32-53, 1998.

Perrings, C. Medios de vida duraderos y tecnología ecológicamente inocua y racional. Revista Internacional del Trabajo (Suiza) no.3, p.363-375, 1994.



45

Programa para la minería (Subsecretaría de Minería – SEGEMAR). Documento No.3. http://www.Servicio GeologicoMineroArgebtino-SEGEMAR.htm 1/23/2001.

Progress Towards a sustainable mining Industry in Africa. http://www.tcol.uk/caia/1998/part_2/75.html 7/19/1999.

Promoting Best Practices in Natural Resource Extraction. http://www.conservation.org/web/fieldact/c-c_prog/policy/ bestprac.htm 8/26/1999.

Public Interest Perspectives on Canadian Environmental Mining Issues. http://www.miningwatch.org/emcbc/ library/public_interest.htm 7/18/1999.

Robertson, J. Una nueva economía para los pueblos del planeta. En: Cuba Verde. En busca de un modelo para la sustentabilidad en el siglo XI. La Habana: Ed. José Martí, 1999. P.231-240.

Saldivar, A. Evaluación de sustentabilidad en la ciudad de México. En: II Convención Internacional sobre Medio Ambiente y Desarrollo. La Habana, 1999. 17 p. (Copia en Xerox Completa).

Sánchez, R. El desarrollo sostenible. Ciencia y Sociedad (Rep. Dominicana) no.1, p.30-34, 1994.

Scliar, C. Los recursos minerales, el medio ambiente y las disputas político- económicas contemporáneas. Departamento de Geología de la Universidad de Minas Gerais, Brasil, 1998. (En formato electrónico).

Sustainable development mineral strategy. http://www.gov.mb.ca/em/minerals/sustain.html 8/30/1999.

Sustainable Strategies – Resource. http://iisdl.iisd.ca/ business/sbdcresource.htm 8/30/1999



46

Sustainable development in the United States: An Experimental Set of indicators. http://www.sdi.gov/ reports.htm 8/22/2000.

The Innu Nation Task Force on Mining Activities. http://www.innu.ca/tfreport.html 8/31/1999.

The Impacts of Opencast Mining the Rivers and Coast of New Caledonia. http://www.unu.edu/hq/unupbooks/ 80505e/80505E00.htm 7/18/1999.

The Green Clean. http://www.aibs.org/biosciencelibrary/ vol45/green.clean.html 8/26/1999.

Valdés, R., Chassagnes,O. En busca de un nuevo modelo : El desarrollo sustentable. En: Tecnología y Sociedad. La Habana: Edit. ISP “José A. Echeverría”, 1997. 346 p.

Van Dijck, P. El síndrome del casillero vacío. CEPAL (Santiago de Chile) no.47, p.21-37, 1992.



47

QUALITATIVE ANALYSIS OF MINING ENVIRONMENTAL SUSTAINABILITY: MYTH AND REALITY

Prof. Adilson Curi and Prof. Hernani Mota de Lima Escola de Minas da UFOP - Ouro Preto (MG) – Brasil

[email protected]

SUMMARY

It is common we hear that a mine is limited to a small area and it constitutes a temporary land use. These facts would reduce the mine environmental impact. Indirectly and without this pretence, these statements are qualitatively evaluating the mine environmental sustainability. In this article we analyse these and other comments made, daily, by the people involved with the mining industry in order to test the truthfulness of such statements. Additionally, we present some propositions for the environmental protection of areas threatened by the mining.

Words key: Sustainability, Mining, Environment

INTRODUCTION

In developed countries a movement of approach is observed between the environmental organizations and the mineral industry. Certain concerns and common challenges have forced these organizations and the mineral industry act together. In the effort to preserve the protection areas several disputes have been occurring between the parts - sometimes in cooperation, others in conflict.

Why conflict? Some mining projects affect the integrity of natural areas that can lose up to 100 hectares of land (240 acres) at every hour (EMCBC, 1998). There are risks of loss of the habitat for thousands of species of plants and animals and loss of the ecosystems



48

that maintains the life. In addition, over the last decades the society has become more aware of the environmental legacy of mining.

Would not be high the price we pay for the daily use of the minerals? Changes in legislation, technology and attitude in relation to mining have contributed to improve mining practices in the most recent years, but it still persists policies and procedures that require more attention and action by both the conservation groups and the community in general.

In this article, some of these subjects and concerns are discussed, particularly considering the perspective of the biodiversity protection. The aspects related to mining and its environmental conflicts are reviewed, considering which decisions to adopt in the future.

By saving examples of habitats sufficiently large and representative we will be able to save endogens species including all the biodiversity of the ecosystems. Considering the land use and ecological protection in the mining influence area there are series of presuppositions or allegations that can be considered today a “commonplace” in the mining industry. Mine engineers, geologists and professionals of the mining industry, as well as, lawyers and defenders of the mining always repeat these allegations. Necessarily, anyone engaged in this subject should already have been heard these statements and in this article we questioned the validity of such allegations. In the sequence some of these allegations that we denominated MYTHS will be discussed. We will see that the simple acceptance of these allegations can commit the environment protection and biodiversity.



49

DISCUSSION

What is myth and what is reality considering the mining and the environment?

Myth # 1:" The impacts related to mining are limited to a small area”

The mining industry and its defenders always relate the mined area, relatively small, to the generated environmental impacts. In this case, the impacts would be restricted to the mined area. Really, in terms of the directly affected surface, this argument can be convincing. However, the mine, properly, is only a reference point in a wide range of activities happening before, during and after the exploitation. The mine is the geographical centre of a net of transport routes (highways, railways, roads, ore ways), nets of energy infrastructure, beyond logically, of the waste piles, tailings and ore treatment plants. Finally, what represents the area affected by a small quarry in relation to an extensive creation of animals or a soy plantation that can extend by thousands of hectares?

Myth # 2 : “Mining is a temporary land use”

Many mines have a projected of just some decades or even some years. For the people not informed, this fact suggests that the impacts will be temporary. What is the point to alert and to provoke a great confusion on a mine that will be rehabilitated practically before anybody knows that she existed?

In spite of, in many cases, mining is a temporary land-use this fact is not a general rule. The impacts generated by irresponsible mining activities can persist for long-term in many cases. Although the dimension stone mining, for example, is only a temporary occupier of the land surface, it causes dramatic and serious environmental impacts associated with overburden, haul roads, unvegetated surfaces, coarse rejects, fine-grained tailings, topsoil and stockpiles. The quality of the air, water and land is affected. Dust adversely affects air quality. The physical quality and quantity of



50

surface water and groundwater can be affected if reclamation is not practiced. Watercourses may be disturbed and flow rates altered. Erosion may be excessive, and surface and ground water may become mineralised. The topography, drainage, vegetation, appearance and surface texture of the mine site may all be seriously impacted. The gradients of sidecasts spoil may make the topography unsuitable for the planned post-mining land uses (Williams, D.J. et al, 1997). The impacts of mining also include the destruction of the landscape, degradation of the visual environment, destruction of agricultural and forest lands as well as degradation of recreational lands.

Probably, the most serious and permanents impacts originated by the mining would be:

• Destruction of the natural habitat of the species in function of the construction of the whole infrastructure of the mine (offices, shops, tailings, roads, etc.);

• Effects of the acid mine drainage in the water quality and wild life, including the fishes;

• Accidents such as the rupture of tailings dams or waste piles that can happen during project operation or even after the abandonment of the project.

Myth # 3: “Small-scale mines provoke little environmental impact because it is limited to a small area and has a minimum infrastructure”

In function of the insignificant affected area and, practically, absence of infrastructure, small-scale mines would reinforce the Myth 1 arguments. However, the presence of certain particularities such as the mercury use for gold recovery in informal mining in the Amazon Region can provoke huge and permanent environmental impacts.



51

Myth # 4: “The big mine companies provoke little environmental damage because the enterprises are certified and follow the legislation"

Although certified internationally according to environmental patterns accepted the big mining companies could be contributing to increase the environmental impacts, mainly, through its suppliers. It is difficult to control the suppliers' activities to certify they are respecting the environmental norms. Besides, the great mining provokes social alterations regionally, altering the occupation of the geographical space and populations movement.

Myth # 5: “The underground mine provokes less impact than the open pit mine”

In terms of the landscape this statement can be truthful because the mined areas would be underground. However, the majority of the infrastructure of the mine and the ore treatments units are located in the surface. Besides, the waters contaminated in the underground can reach the surface.

Myth # 6: “ The general impact produced by a group of mines or quarries as a whole is the sum of the impacts of each quarry or mines in particular”

A quarrying district incorporates a number of quarries sharing common features (alike type of material, similar exploitation methods, competition in to the same market), whose concentration is higher than 1 unit per km2 on some areas, although its limits cannot be defined with a general rule.

It is obvious that the overall impact on the environment produced by the district as a whole is not merely the sum of the impacts of individual quarries considered as isolated units but must be calculated taking in to account that (Ciccu et al. 1998):

- only some the quarries and related infrastructures are visible from a point of view moving across the land;



52

- the exposed area of the faces and dumps decreases with the distance from the observer;

- nuisances like noise, dust and vibration are gradually attenuated away from the sites;

- flora and fauna are affected only within a limited area around each quarry so that no superimposition of effects takes place if the distance between them is sufficiently large;

- social, economic and cultural aspects can benefit from the quarrying activity over a broad area far exceeding the limits of the district itself.

PROPOSITIONS FOR THE ENVIRONMENTAL PROTECTION OF AREAS THREATENED BY THE MINING

The concerns identified in this article originate a complex series of problems for all the people involved with mining. Some principles or measures to avoid future conflicts are commented below - some are technical measures, some political measures and others are measured about legislation. In the sequence, propositions and priorities based on the experience of groups that have been working with and against the interests of the industry mineral are presented (EMCBC,1998). These measures are presented as a general guideline to facilitate the defence of environmental protection areas in front of the mineral industry interests. The defenders of the mining activities must contest these measures or principles in function of its interests and objectives.

Principle # 1: The mineral industry should be prohibited in areas of environmental protection

The final objective admitted by the defenders of the environment, mainly conservation groups, is the non-permission of mining in the protected areas. The other principles listed are used as



53

appendixes to help them to reach their first principle. According to these groups the mineral exploration and mineral exploitation should be prohibited in existent or future protected areas. Particularly, the mining should be excluded of areas of special ecological interest such as ecological reserves, ecological stations and other types of protected areas with outstanding environmental value where the conservation objectives are not compatible with the mining activity. The mining activity should also be excluded, mainly, in areas where it is critical the aggression to the natural habitats, considering the occurrence of rare or threatened species and the necessary areas for its procreation.

Principle # 2: Interim Protection / Measures for protection of areas candidates

The governments should consider the possibility of application of an interim protection for areas that are in candidacy process to areas of environmental protection. In areas not protected, formally, the damages due to mining activities can be significant. The interim protection will ensure that third-party interests don't take priority over the public interest resulting in the need for posterior compensation. The applicable techniques should include the mapping of the area, interim management environmental guidelines and legal restrictions that impede the exploratory activities, development and mineral exploitation in the identified critical areas.

Principle # 3: The evaluations of the candidate-protected areas should consider the natural values

The governments should be stimulated to destine more resources, including financial resources, for the evaluation and quantification of the natural values instead of destine most of the resources to the definition of the value the mineral resource.

The established tendency of emphasizing the value of the mineral resource in detriment of the environmental value of the protected area should be questioned.



54

Principle # 4: The studies of environmental impact in the mining should be made with more agility and efficiency

In function of the urgency in the definition of the areas of environmental protection the best scenery, for the environmentalists, would be the ready definition of the protection areas avoiding years of work with estimates of the mineral potential. However, the government policies depend on the evaluation of the mineral deposits in the areas of environmental protection. If the government insists in the inventory of all the information regarding the mineral resources, the environmentalists should oppose the government considering the following arguments:

- The studies financed by the governments should contemplate projects that don't remove the natural habitats and don't alter the wild life through the change of the characteristics of the physical environment or involving the introduction of noxious substances;

- If the mineral potential was evaluated as satisfactory, the mining works can be initiate since the item above is respected;

- If the government allows the mining in an area candidate for preservation and such works were cancelled in function of the occurrence of outstanding cultural or biological values, the company should not be compensated by the loss of the mineral deposit. Before beginning its works of mineral exploration, the company should already be informed of the risk of making exploratory works in an area candidate for preservation. The government could compensate the company for the expenses with the works of mineral exploration, only;

- If the area is of high mineral content and it is located in the periphery of candidate protected area, it should be given a limited time so that the company has access to the area of the mineral resource, except in cases where the area is critical in terms of the goals of ecological protection and sustainability. In the case of the occurrence of an area with high mineral potential the



55

considerations of the principle 5 should be adopted. In otherwise, the government should be called to designate the protected area. Some of those points can be attacked by the industry as being ingenuousness. However, a mining company rarely publishes the results of its survey campaigns. Only few companies take a risk to invest in mineral exploration before they possess the legal tenure to an area. Would not be such permissions ingenuousness, also?

In any way, these are special places requiring special rules, and government and industry should be compelled to follow the legislation.

Principle # 5: Assures that the areas of high mineral potential are not immediately excluded as preservation areas

The studies for mineral evaluation can identify areas of high mineral potential inside of candidates protection areas. This can induce the government authorities and the industry not to consider these areas for environmental protection in function of its high mineral content. The environmentalists should oppose this measures promoting the following actions:

- Before removing the area with high mineral content to the group of candidates areas it should be made a revision of the mineral potential in the region to determine if similar mineral deposits exist in the proximities. These mineral deposit would be mined without committing the area to be protected;

- If the area of high mineral potential is located in the periphery of the candidate area, it can be made a zoning of the larger area considering that is added to the original project an area with equivalent ecological value. A revision of the accumulated impacts considering the new scenery should be made;

- If the area of high mineral potential is located in the centre of the candidate protected area the government should be pressed to



56

protect the area and to preserve it front to the interests of the mining. Very important in such scenery is mining viability analysis in the candidate protected area proximities.

Principle # 6: The patterns of mineral activity should be reviewed

In an area candidate to environmental protection where there is (a) high mineral potential, or (b) pry-existent mineral rights, and (c) outstanding environmental importance, any government’s decision that allows the mining should be accompanied by public audiences that monitor the mining methodologies to assure the integrity of the area to be protected. The governments should be pressed to develop conservation patterns for the most sensitive areas, wild areas and other areas and waters with high biodiversity and social value. These patterns must be considered not interesting if these areas are protected or not.

Principle # 7: The governments should be stimulated to reform the tenure systems

The governments should be stimulated to begin the process of revision of the tenure systems to mineral exploration and mineral exploitation to ensure that that minerals rights don’t take primacy over the environmental objectives. The free entrance system is inconsistent with society’s demands in terms of sustainability. The industry argues that if governments " deregulate " the industry and remove the environmental patterns so that the industry can become more competitive and can adopt more flexible strategies. However, ironically, this same industry maintains the old tenure paradigm impeding initiatives of environmental and social improvements.

Principle # 8 - Transparency

The establishment process of candidate protected area should be opened and transparent

Any decision related with the establishment of protection areas and proposition of studies of mineral resources as well as



57

exploration programs and exploitation activities should be executed in a process with public consultation and access to information.

Principle # 9 - Information

The ecological organizations should become aware of the Government Policies for the mineral resources and of the environmental legislation considering the mining activities.

Principle # 10 - Trust

Distrust for the real intentions of the environmental groups linked to the industry that support projects of environmental protection in areas with mineral resources.

FINAL CONCLUSIONS

In this article some important aspects for the preservation of protected areas threatened by mining activities were discussed.

Considering the appeal of the comments can be observed that most of the same ones is based in experiences of environmental groups that work directly with the subjects related to the environment and the mining.

According to the point of view of the mining industry such arguments will necessarily be answered, at least partially.

The main objective of that work is to discuss such subjects, mainly among the people directly involved in the mineral industry. It is necessary that the defenders of the mining know the thought of others groups, mainly environmentalist. It is necessary that everyone that defends the mining know, also, what is better for the environment and the biodiversity.

The use of areas with special environmental status (such as Amazônia, Pantanal, areas of permanent preservation and ecological reserves) always gets to question irreversibilities. It is perfectly



58

comprehensible that in the situations where we have, on a side of the balance, the development of a mine and, on the other side, the preservation, the tendency will be to give a larger weight to the preservation. Environmental restrictions can turn certain mineral deposits unavailable, as if they had been removed of the face of the earth. Even so, the decision of not using a resource should only be made after the due consideration of interests of everybody involved. That environmental evaluation is always difficult, because it is necessary the discussion off non measurable attributes in quantitative or financial terms, such as the genetic patrimony, the landscape and the ancestors' earth, however this discussions cannot be avoided (IBRAM, 1992).

In the specific case of Brazil, although the Brazilian legislation for environmental subjects is one of those more advanced of the world and our country is ahead of several developed nations, we are not stopping threatening the environment and not respecting the laws. The problem, certainly, is not the lack of a legislation that establishes rigid rules and severe penalties for the environmental crimes. The great difficulty is the lacking structure to inspect and to punish those that don't execute the law.

In the whole country the reality is very similar. It is enough to verify that Ibama (Brazilian Institute of the Environment and Resources Renewed) possesses 1.500 fiscal to assist 5.500 municipal districts in the whole Brazil. That means, an average of four municipal districts for each fiscal, with good chances of the majority of them not have at least a bicycle to accomplish their work (Confea, 2002).

The great subject is that the environmental problem is not incorporated in the formulation of the public policies. The advanced legislation, in the civil, administrative and penal field, doesn't guarantee the end of the aggression to the environment. However, the more optimists believe in a solution in the medium term. The faith is not that, suddenly, the State will build a structure of administration of



59

its natural resources in agreement with the high level of its environmental legislation. But there are those that bet in another forces able to stimulate the entrepreneur to obey the environmental laws of the country integrally. One of these forces has its origin in the productive market. The productive sector is being forced to obey the law because the organizations are being forced commercially, for the internal and external market, to obtain its environmental certification. " Who is not certificate, today, doesn’t export and presents difficulties even to sell its product in the domestic market. This posture of the market has been demanding the integral execution of all the norms and the installation of equipments to avoid pollution. " The Brazilian law is very good, but the market law is unbeatable " (Confea, 2002). Other force capable to change the manager's posture and to restraint the aggressors' action is the popular pressure. More and more, the communities are demanding information and requesting of its organizations the responsibility with the maintenance responsible of the environment. Considering the interests off the companies to maintain a nice relationship with that community that welcomes them and that consumes its products, many environmental progresses are being reached in a friendly way. Another recent aspect of the Brazilian legislation is reverting the tendency of managers' impunity that work without environmental licensing. The novelty is that the federal law 9.605/98 don't just incriminate the agent that provoked the pollution, but also the organizations responsible for the inspection that not restraint the criminal action. This new principle - of to punish also who ignores the law - is a revolution in terms of Environmental Right. It is changing the behaviour of the inspection organizations that now assume a risk to be considered accomplices and connive with all and any criminal action against the environment. “To work in the secrecy stopped to be lucrative to change in an imminent risk of damage, perhaps irreversible for the financial health of a specific the company”, (Confea, 2002).



60

CONSULTED REFERENCES

Ciccu, R, Mocci, G. & Imolesi, E. 1998. A rational approach to the assessment of environmental issues in stone quarrying districts. Proceedings of the Environment Issues Waste Management in Energy and Mineral Production ( ed. A. A. Balkema) Rotterdam, pp. 87-93.

Conselho Federal de Engenharia, Arquitetura e Agronomia (Confea). 2002. A guerra Verde. Revista do Confea. Ano VI, No. 9, pp. 26-29.

Environmental Mining Council of British Columbia (EMCBC). 1998. More Precious than Gold: Mineral Development and the Protection of Biological Diversity in Canada, British Columbia, Canada, 31 p.

Instituto Brasileiro de Mineração (IBRAM). 1992. Mineração e Meio Ambiente. Comissão Técnica de Meio Ambiente. Grupo de Redação. Brasília, 126 p.

Williams, D.J; Wu,Y; Morris, P.H.1993. Systems analysis of engineered mine site rehabilitation, Proceedings of The Fourth Intern. Conf. on Tailings and Mine Waste, Fort Collins, Colorado, Rotterdam: A.A. Balkema.



61

A GEO-ENVIRONMENTAL DATA BASE DUE TO ELABORATE GEOINDICATORS SCENARIOS BASED ON

ENGINEERING-GEOLOGICAL CRITERIA

N.C. Diniz, Ph.D

ANEEL – National Agency for Eletric Energy IPT - Institute for Technological Research of São Paulo State

e-mail: [email protected]; [email protected]

ABSTRACT

This paper presents a Geo-Environmental System using Database and GIS technology to elaborate geoindicators temporal dynamic scenarios of São Paulo State, Brazil, using Engineering-geological criteria. The engineering-geological GIS data base of urban and regional areas can be considered as a tool to extract indicators of environmental problems and changes. The engineering - geological GIS should be updated due to the modifications of human interventions on physical environment. The Geo-Environmental Database can be supported by GIS for environmental evaluation of complex and accelerated land use dynamics. A challenge facing environmental managers and planners is that while the potential for matching current understanding to regulatory needs has not been realized, environmental degradation due to cumulative effects continues to grow.

Geoindicators can be understood as high-resolution measures of short-term changes in the geological environment, which are significant for environmental monitoring and assessment (Berger, 1996).

The development of Geo-Environmental Database at IPT, through automatization of the engineering-geological GIS is the objective of a long process, with many projects, that has been going



62

on since 1992, represented by GAIA – Manager System of the Geo-Environmental Database of Sao Paulo State. The target of the project was to construct: a digital spatial cartographic base; physical environmental hazards GIS; technological hazards GIS; Conservation Units spatial data; alpha-numeric data bank; image bank; multimedia; and GIS applications for environmental management and hazards monitoring.

Key words: Geoindicators, Geographic Information Systems, Geological Hazards

INTRODUCTION

This paper presents a GIS (Geographic Information System) application designed to elaborate Geoindicators Scenarios of São Paulo State, based on engineering-geological criteria by GAIA Manager System of the Geo-environmental Data Base of São Paulo State (Fig.1).

The GAIA System constitutes the São Paulo geo-environmental database, as a software interface, developed at IPT, through three projects: the doctorate thesis in Diniz (1998), presented to Escola Polytechnical School – USP (University of São Paulo). Developed on an internal research project in IPT for environmental and geological hazards evaluation and geotechnical analysis of terrain capabilities for civil works. And beyond that applied to a development for Environmental Department of São Paulo State that has been applied for environmental zoning, Conservation Units monitoring, Water Resources management.

The geo-environmental GIS data bases, developed based on engineering-geological criteria can be considered as a tool in the multidisciplinary effort to develop solutions to geological hazards monitoring. The behavior of terrains, submitted to intense and accelerated anthropologic uses, and changed by theirs technological



63

process, has been facing considerable economic and, even human life, losses.

The forecast of terrains performance done by engineering geological GIS, should be precise, the more so the investigation and the geological-geotechnical characterization of terrains should be guided by observation and analysis of physical environment processes, triggered by the technological process intervention.

The GAIA System has a spatial database, an image bank, an alpha-numeric bank that could be used in a Geoindicators Scenario applying geotechnical attributes and criteria to environmental evaluation.

The importance of effective management of data and information on environmental issues has been highly considered on GAIA System research project. Geoindicators research activities generate and require massive amounts of many diverse data and information. These data and information are needed to document change, to improve understanding of physical environmental processes, and to carry out integrated assessments of impacts on human affairs.



64

Figure 1 – GAIA – Geo-environmental data Base of São Paulo State System Data Structure



65

Because physical environmental issues in São Paulo State are so broad, including geoindicators, natural forcing factors, human interactions, and comprehensive assessments, data and information management challenge is to archive, preserve, and make GAIA System data available in a useful form for researchers and other users.

The Geo-environment data base needs to be accessible beyond the universe of experts. For a correct understanding by these users, the language and the preventive recommendations included in the data bank for each one must be clear in terms of predetermining the performance of urban land use and physical environment interaction. As well as indicating the potential conflicts among the forms of use and occupation; and should advise preventive and corrective measures in order to minimize costs and risks in the enterprises and in the surrounding environment.

The effective use of engineering geological GIS of terrains is assured as long as the orientation of preventive and corrective measures allows helping interventions such as: conservation units laws, master plans, civil defense plans, urban settlements, erosion and landslides control measures, giving, through data base set, geoindicators for hazard monitoring.

Preventive measures in environmental management, based in the foreseeing of environmental problems, should improve the life quality for sustainable development.

GEOINDICATORS

Geoindicators have been developed as tools to assist in integrated assessments of natural environments and ecosystems, as well as for state-of-the-environment reporting, say Berger and Iams (1996). As describers of common earth processes that operate in one terrestrial setting or another, geoindicators represent collectively a new kind of landscape metric, one that concentrates on the non-living



66

components of the lithosphere, pedosphere, hydrosphere, and their interactions with the atmosphere and biosphere (including humans).

The condition of the environment at any time reflects not only human influences but also natural processes and phenomena, said by Berger and Iams (1996), which may be causing change whether or not people are present. The long evolutionary history of the Earth and the biosphere has been punctuated throughout by environmental changes that reduced or enhanced the capacity of terrestrial landscapes to provide a place for healthy life. Moreover, away from obvious sources of human disturbance (cities, waste disposal sites, mines, deforested areas), it may be extraordinarily difficult to separate the effects of human actions from those due to "background" natural processes.

Using the data set of geo-environmental data base one could try to predict seasonal to interannual climate fluctuations and associated extreme events, and could simulate the potential economic impacts on agricultural, water resource, and other socioeconomic systems.

However, to define the trends and the geographic and temporal patterns of change in global land cover, it is necessary to know what are the processes, both natural and human induced, that lead to changes in land cover and land use. Including such processes as deforestation, desertification, and loss of global resources. The vulnerability of Earth systems, including economies, human health, and ecological systems to climate fluctuations and changes depends on these time scales.

The Fig. 2 illustrates Engineering geological criteria chart based on geoindicators Check List (Berger, 1996) and geo-environment data base modeling (Diniz, 1998). Geoindicators are actual process and engineering criteria are measure of respective conditioning attribute. Units are the landscape spatial representation for each temporal and dynamic geoindicator´s scenario.



67

The actual processes and theirs respective parameters considered relevant to São Paulo State, based on engineering geological criteria are:

− Erosion (ton/ha/year);

− mass movement (m3/event x rain mm accumulated/72 hours ;

− silting (m3/ton/year);

− karst collapse (m2 /number of occurences)

− soil collapse (m2 / number of occurences)

− soil expansion (m2 / number of occurences)

− settlement (m2 / number of occurences)

− sismicity (intensity MM/ number of occurences)



68

Figure 2 – Enginnering geological criteria chart based on geoindicators check list (Berger and Iams, 1996) and geo-environment data base modeling (Diniz, 1998).

The Geoindicators Scenarios of São Paulo State can be elaborated using geo-environmental actual process spatial



69

information and geoindicators parameters data bank registers, illustrated on Fig. 3.

Figure 3 – GAIA GIS System displaying one Geoindicator Scenario of São Paulo State.

DATA BASE FOR MONITORING

The Geo-enviromental data base of São Paulo State gives the appropriate data set to select physical environmental processes relevant enough to be geoindicators, such as geological hazards and



70

environmental issues: terrain vulnerability to erosion, mass movement, sedimentation, soil collapse, soil settlement, soil expansion, soil combustion, seismicity, and superficial and ground water quality.

The more consistent contributions to the improvement of this tool are those that come from its use. The engineering geological data base should be updated due to the modifications of the geoenvironmetal process. Only GIS can support databases for environmental evaluation of this complex and accelerated environmental dynamics.

The GIS project had the objective to elaborate Scenarios and data banks for many kinds of applications, such as monitoring and management.

The target of the project was to construct a geoenviromental data base – Gaia with:

a) a spatial digital data base;

b) physical environmental processes (hazards) layers;

c) technological processes layers;

d) basic thematic spatial data;

e) physical environmental resources spatial data;

f) conservation units spatial data;

g) social environmental alpha-numeric data bank;

h) photo image bank;

j) GIS application interface.

The interface made use of existing data products implemented in support of related environmental monitoring projects.



71

Improves prediction skills related to geoenviromental prediction, expanding predictive skills beyond the tropics to the extent possible; enhances understanding of land-atmosphere interactions.

This geoenviromental data base could improve documentation, assessment, and understanding of the physical processes; investigate the relationships among geological processes, land use and climate; study the role of physical environmental dynamics in integrative models and scientific assessments.

Beyond that, it could improve documents, investigate and assess changes in forcing factors that influence geoenvironmental, making possible feedback in coupled models; document change through long-term monitoring and assessment of primary climate system characteristics; and to investigate economic, technological, and demographic trends that affect the ability of natural and human systems responding to climate variability and change.

This GIS GAIA could be conducted largely at existing centers and partnerships, the subsequent processing and creation of products useful in science and applications should be distributed widely and thereby take advantage of the concepts and technology involved in the rapid growth of the Internet and the World Wide Web.

NATURAL HAZARDS MONITORING

According to Trenberth (1999) in late November of 1998, the Worldwatch Institute and Munich – the world's largest reinsurer – issued a report which assessed the total losses, worldwide, from storms, floods, droughts, and fires for the first eleven months of that unusual year. The staggering sum, at that time, was a record US$ 89 billion. In addition to material losses, these weather-related events



72

had taken an estimated 32,000 lives, while displacing 300 million people from their homes.

In early August, for example, major floods devastated parts of Korea, and in August and September 1998, extensive monsoon-related flooding struck heavily-populated eastern India and Bangladesh. Widespread heavy rains in China, at about the same time, released the mighty Yang-Tze River from its banks, with ensuing reports of more than 3,000 deaths, some 230 million people homeless, and over US$30 billion in flood damage. In the summer of 1998 heat waves and air pollution episodes plagued many regions of the world, particularly in Egypt and other Mediterranean countries, and in southern Europe. In New Zealand, record floods in July and October 1998 were the worst over 100 years. But the costliest disaster of them all, in terms of human life, struck the Caribbean in late October. Hurricane Mitch caused the deaths of more than 11,000 people in Honduras, Nicaragua, Guatemala and El Salvador, primarily through the extensive flooding that followed prolonged and heavy rains.

A number of extreme-weather events with large human impacts fell in the same period in the United States, and most of them were explained, in news reports, as the expected impacts of the uncommonly strong El Niño of 1997-1998.

In Brazil, geoindicators monitoring has been done by Instituto de Pesquisas Tecnológicas do Estado de São Paulo – IPT, especially landslides, and Instituto de Pesquisas Espaciais – INPE, especially forest clearing, (Coltrinari, 1996). IPT has many works on natural hazards forecast. At IPT, Geological studies along Serra do Mar escarpment comprise geotechnical mapping, development of techniques for location, registration and hazards assessment improvement of current knowledge on soil instability, technological transfer, design and operation of short-term warning plans for landslides. The instabiility of



73

Serra do Mar escarpment is currently increasing as a result of rainforest destruction and also for “unofficial” settlements on steep slopes.

The rainfall is the major triggering agent to the occurrence of landslides in Brazil (Macedo and others, 1998). Applied researches in correlation analysis between rainfall and landslides, led to the development of basically two different methods of forecasting systems: short-term rainfall monitoring and long-term rainfall monitoring methods.

The debris-flow deposits show sedimentary patterns and stratigraphic relations, useful to identify areas prone to the occurrence of the phenomenon. Sediment sequence and composition of some deposits in mountainous areas can serve as geoindicators, helping to identify risk areas for debris-flows, (Ogura and Gramani, 2000).

Campagnoli (1998) used rates of silting deposits evolution, as well as their accumulated volumes to provide a specter of environment geo-indicators. These parameters, such as geoindicators, can measure the efficiency of preventive and corrective actions adopted in the hydrographic basins that aim the mitigation of processes and soil degradation. The author studied the susceptibility of terrains to urban erosion and silting processes as well as forms of land use, together with the conflicts and impacts. Silting was observed in reservoirs situated on the Metropolitan Area of São Paulo - MASP. In characterization and quantification studies of the corer drilling silting deposits on rivers, it was verified that the evolution of rates of deposition shows a strict relation to the history of land use, allowing the establishment of specific rates of production of sediments per basin along time.

The geoindicators Scenario of São Paulo State based on engineering-geological criteria could be applied to specific studies like risks, vulnerability, urban planning and engineering issues. For example counties engineering geological GIS, risk scenarios of mass movements, vulnerability scenarios of ground water pollution and



74

evaluation Scenarios of waste disposal. However, these static scenarios such as engineering – geological maps are overcome by GIS dynamic evaluations possibilities.

RESULTS

A GIS (Geographic Information System) application was designed to elaborate a Geoindicators Scenario of São Paulo State, based on engineering-geological criteria by GAIA Manager System of the Geo-environmental Data Base of São Paulo State (Fig.1).

The GAIA System constitutes the São Paulo geo-environmental database, as a software interface, developed at IPT, through three projects. One is the doctorate thesis in Diniz (1998), presented to Escola Politécnica – USP (University of São Paulo). And produced by an internal research project in IPT for environmental and geological hazards evaluation and geotechnical analysis of terrain capabilities for civil works. And beyond that, a development for Environmental Department of São Paulo State, that have been applied for environmental zoning, Conservation Units monitoring, Water Resources management.

The GAIA System has a spatial database, an image bank, an alpha-numeric bank that could be used to construct dynamics Geoindicators Scenarios applying geotechnical attributes and criteria to environmental evaluation.

The importance of effective management of data and information on environmental issues has been highly considered on GAIA System research project. Geoindicators research activities generate and require massive amounts of many diverse data and information. These data and information are needed to document change, to improve understanding of physical environmental processes, and to carry out integrated assessments of impacts on human affairs. Because physical enviromental issues in São Paulo



75

State are so broad, including geoindicators, natural forcing factors, human interactions, and comprehensive assessments, a data and information management challenge is to archive, preserve, and make GAIA System data available in a useful form for researchers and other users.

The physical environmental processes (hazards) scenario have the layers: erosion, sedimentation, mass movements, settlement, flooding, karst collapses, soil expansion, soil consolidation, collapses and coastal dynamics (all from IPT).

The Technological process scenarios have the layers: waste (CETESB); roads (DER), rail roads (FEPASA), land use (IPT, IGC, EMPLASA), urbanization (IPT), dams, electric transmission lines (CESP, ELETROPAULO, CPFL), industries (CETESB), harbors (CESP), airports (EMBRAER), pipe lines and refineries (PETROBRAS).

CONCLUSIONS

The Geoindicators Scenarios of São Paulo State integrated the following types of geological hazards: erosion, sedimentation, mass movements, settlement, flooding, soils expansion, soils consolidation, karst collapses, soil collapses, coastal dynamics, earthquakes, superficial water quality and ground water pollution. Although these Geoindicator Scenarios are still highly generalized, they are an useful source of hazards information and geo-environmental problems not available in conventional maps, even in engineering–geological or geotechnical mapping, and it shows that much research must to be done to make information consistent, considering the geological time scale processes, that one kind of geotechnical Scenario can represent.

The engineering development and the distributed client-server design of GAIA should continue implementation, only in this



76

way it could be responsive to community needs. However, we believe that the GAIA system management and operations concept should be redefined to involve a larger user community effectively.

Geoindicators Scenario of São Paulo State in GIS will certainly allow detailing and quantification measures of geo-environmental process for monitoring uses.

Acknowledgements: The author would like to thank the Instituto de Pesquisas Tecnológicas of São Paulo State for logistic support, all the technicians of IPT that have given support, and all the companies who allowed us access to their records, that are IG, IGC, IBGE, DER, DAEE, CESP, ELETROPAULO, FEPASA, EMBRAER, CETESB, SMA, PETROBRAS, FFLCH/ Dep.Geog./ USP, EPUSP and IPT.

REFERENCES

BERGER, A R. and IAMS, W.J. (1996) Geoindicators: assessing rapid environmental changes in earth systems. A A Balkema/ Rotterdam. Brookfield. 466 p.

CAMPAGNOLI, F (1998) Silting as an environment geo-indicator on Metropolitan Area of São Paulo – Brazil. International Engineering Geology - IAEG - Vancouver – Canada.

CONTRINARI, L. (1996) Natural and anthropogenic interactions in the Brazilian tropics. In: Geoindicators: assessing rapid environmental changes in earth. Editors: BERGER, A R. & IAMS W.I. A. A Balkema, Rotterdam, Brookfield. P 295 – 310.

COORDENADORIA ESTADUAL DE DEFESA CIVIL. (Coord.) (1997) Mapa de Ameaças Múltiplas do Estado de São Paulo. São Paulo: IPT/ DAEE/ CETESB/ IG/IAG.



77

DINIZ, N.C. (1998) Automação da cartografia geotécnica: uma ferramenta de estudos e projetos para avaliação ambiental. São Paulo. 2v. (Tese de Doutorado, apresentada à Escola Politécnica da Universidade de São Paulo).

DINIZ, N.C. (2000) A geo-environmental data base due to elaborate Geoindicators Scenarios of São Paulo State based on engineering-geological criteria. 31º International Geological Congress. Rio de Janeiro, Brazil. August, 2000.

INSTITUTO DE PESQUISAS TECNOLÓGICAS DO ESTADO DE SÃO PAULO - IPT. (1994) Carta geotécnica do Estado de São Paulo; escala 1:500.000. São Paulo. 2v. (IPT. Publicação, 2.089).

________. 1999. Sistema da base de dados geoambientais no Estado de São Paulo. São Paulo. (IPT. Relatório, 42 331).

MACEDO, E.S. and others (1998) Landslide warning system in Serra do Mar slopes, São Paulo, Brazil. 8 The International IAEG Congress. Balkema, Rotterdam. P 1967 – 1971.

OGURA. A T. & GRAMANI, M.F. (2000) The debris flow in Lavrinhas: stratigraphical and sedimentological features for debris flow risk assessment. 31st International Geological Congress. IUGS. International Union for Geological Sciences. Rio de Janeiro, RJ, Brazil.

TRENBERTH, K.E. (1999) The Extreme Weather Events of 1997 and 1998. CONSEQUENCES Vol 5 no 1 1999, pp. 3-15.



79

MINING & SUSTAINABLE DEVELOPMENT: THE ECONOMIC DIMENSION IN THE SELECTION OF

INDICATORS

Eduardo Vale BAMBURRA – Planejamento & Economia Mineral Ltda.

(http://www.bamburra.com)

1. CONCEPT

Focusing on aggregate level and keeping apart the influence of different dimensions that permeate the conception of sustainable development, this article takes as reference a concept closer to the definition suggested by The World Comission on Environment and Development – WCED1:

Unquestionably, the fundamental challenge to achieve a pattern of sustainable development is to find out a compromise solution between the interests of the present and future generations.

2. IS IT POSSIBLE A SUSTAINABLE DEVELOPMENT WITHOUT MINING?

This question can be approached by means of three levels:

International – taking into account the fundamental role of the minerals in industrial production and in higher standards of living the answer is certainly not. There is a consensus, the mining

AA ppaatttteerrnn ooff ddeevveellooppmmeenntt tthhaatt ffuullffiillll tthhee mmoosstt uurrggeenntt aanndd ggeenneerraall nneeeeddss ooff tthhee pprreesseenntt

ggeenneerraattiioonn wwiitthhoouutt ccoommpprroommiissee tthhee lleeggaaccyy



80

industry is an important vector for leveraging the global development process into a sustainable level;

National – although facing a different scale and options comparing to international level, the sectoral status is similar in terms of importance. However, considering a diversity of interests and policies it is opportun making the following considerations:

• Developed Countries;

• Developed Countries with mineral vocation;

• Developing Countries; e

• Developing Countries with mineral vocation.

Local – at local level the relative importance of the mining industry will be constrained by the availability of other opportunities of investment with special concern to mutually exclusive situations. On the other hand, probably the interests of community will be subordinated to national ones.

In fact, while some regions have at your disposal several conceptual routes for development, for others mining is quite the unique option. An extreme example is Mali

The interrelationship between spacial dimensions and the matriz of opportunitites and challenges, at local and national levels, are going to be crucial in the formatting process of the opportunity costs associated with alternative development paths. . In this sense, incremental costs are going to reflect trade offs in the amount of net benefits susceptible to be generated by each policy.



81

3. IS MINING SUSTAINABLE?

4. MULTIDIMENSIONAL VIEW OF THE CONCEPT

Figure 1 characterizes the usual dimensions referencing concepts of sustainable development and a specific factor - depletion - of the mining industry.

Obs: Cultural aspects are inserted in social dimension.

Since Malthus, depletion is recognized as a critical factor in the interface of intergeneration conflicts. In the last decades, with the maturation of the sustainable development concept this interface is embedding other relevant dimensions – economic, social and environmental - as well. Despite this evolving process, by means of irreversible impacts and the preservation of the ecosystem efforts in



82

order to guarantee conditions to future generations, in essence the challenge is the same.

Another specific factor deserving mention is the locational rigidity of mining operations in relation to conflicts with other natural resources, aboriginal areas, creation of enclaves etc. In this context, isolated regions in the hinterland, with low demographic density and rich biodiversity are the principal concern.

5. MATRIZ OF INDICATORS OF SUSTAINABILITY

The process of identification and selection of indicators of sustainability although subordinated by macro-dimensions should focus on operational issues in order to quantify and qualify the level of conformance of the mining industry to sustainable development. The objective is to estimate quantitative and qualitative indicators and conduct absolute and relative evaluations and analysis at minesite, sector or cluster levels. With this reference we adopted the following scheme:

In sequence we present a summary of possible topics and references that can used to select indicators of sustainability.

FUNDAMENTAL DIMENSIONS {Politic, Legal, Economic, Social, Environmental, Technology....} Parameters of Interest [rate of recovery, consumption of energy, consumption of water, recycling of water, disturbed land ...]

• Metrics & Indicators ( emissions per unit of product, etc)



83

ENVIRONMENTAL

Energy

- Total Consumption

- Consumption Profile per Source

- Participation of Renewable Sources

- Self-generation

- Reuse

- Consumption per Unit of Product

Water

- Total Consumption

- Treatment

- Recycling & Reuse

- Quality of Discharged Water

- Consumption per Unit of Product

Land

- Total Area Occupied

- Profile of Occupied Area (%)

- Mining Operations

- Treatment Operations

- Townsite

- Dams & Waste Disposal

- Roads

- Disturbed Natural Areas (%)



84

- Protected Natural Areas (%)

- Reclaimed Natural Areas (%)

Inputs & Materials

- Consumption per type

- Profile of Consumption per type

- Consumption of Risk & Hazardous Materials

- Recycling & Reuse

- Consumption per Type / Unit of Product

Effluents, Emissions & Waste

Plan of Mine Closure SOCIAL

Employment

- Total Direct Employment

- Total Indirect Employment

- Generation of Employment per Unit of Product

- Minimum Wage

- Average Wage

- Subcontracting

- Work Conditions in Subcontracting Companies

- Female & Minorities Work Force

- Health & Safety Conditions

- Work Accidents Rate

- Strikes



85

- Penalties

- Training & Education ($/worker)

- Health & Safety ($/worker)

- Levels of Satisfaction of the Work Force

- Channels of Communication & Participation in Decision Process

Community Relations

- Total Direct Employment

- Total Indirect Employment

- Total Employment per Unit of Product

- Total Expenses in the Community(%)

- Social Infra-structure of the Project

- Creation of Additional Infra-structure in the Region ($)

- Levels of Integration with the Community

- Training & Education (%)

- Level of Integration with Public Health and Civil Defense Services

- Levels of Satisfaction of the Community

- Channels of Communication & Participation in Decision Process

Plan of Mine Closure

ECONOMIC

Selected Aggregates

- Value of Production



86

- Income

- Gross Margin

- Acquisition of Inputs

- Direct and Indirect Rent

- Wages & Associated Costs

- Return of Capital

- Rent Distribution

- Direct and Indirect Taxation

- Net Currency Generation

- Prospection & Exploration

- Research & Development (R&D)

- Investments in Infra-structure

- Investments in Education & Health

- New and Expansion Investments

- Investments in Diversification

- Donations

- Sources of Funds

Plan of Mine Closure

Considering the expressive interrelationship between dimensions, parameters and indicators there are many metrics that could be selected.



87

6. EXPECTED CHALLENGES & IMPACTS

International Issues

National Issues

Local Issues

7. SOME QUESTIONS OF CONCERN

Quantitative & Qualitative Indicators

Social Rate of Discount

The Influence of Spatial Dimensions

Confronting National & International Markets

Opportunity Costs Dilemma

Trade & Nontraded Goods

Transferring Prices Issues

Sustainability Dumping?

Who pays the Bill? Is the Polluter Pays Principle?

NOTES & REFERENCES

“Sustainable development: a guide to our common future”. The Report of the World Commission on Environment and Development. Genebra, 1990.

BARRETO, M. Laura (Ed.). “Ensaios Sobre a Sustentabilidade da Mineração no Brasil”. Rio de Janeiro. CETEM/MCT, 2001. 130p.

“Sustainability Reporting Guidelines”. Global Reporting Initiative – GRI (http://www.globalreporting.org)



88

VALE, Eduardo. "Mine Closure: selected highlights" - Mine Closure: Iberoamerican Experiences - Module V - Economy and Finance - CYTED/IMAAC/UNIDO - 2001 - 581p. - pp. 219-223. Rio de Janeiro.

________________“A Mineração e o Meio Ambiente: uma análise técnico-econômica” - Anais do I Encontro do Hemisfério Sul sobre Tecnologia Mineral - Vol. II - pp. 1.166-1.175 - dezembro/1982



89

GENERAL CRITERIA OF THE SUSTAINABILITY FOR MINING ACTIVITY

Ing. Diosdanis Guerrero Almeida and Dr. Roberto Blanco Torrens

Assisting professor of the Department of Mining of the Institute Superior Mining Metallurgist of Moa Dr. Antonio Núñez Jiménez". The Coloradas Red S/N. Moa. Holguín. Cuba. CP: 83329. Telef.: 6-

8190. Fax. (53) (24) 6-2290. e-mail # 1: [email protected] e-mail # 2: [email protected]

SUMMARY

The exploitation and extraction of mines is of vital importance to the subsistence of the modern man, but at the same time, it leaves undeniable marks on the environment, being able to cause problems of social, economic, political and cultural order at the place where the mine are located.

How to develop a sustainable mining, which will tees the actual necessities of the society, without putting into risk the future generations and at the same time protect the environment, is a great challenge which does not only faces mining sector, but also the governments of each country.

These and other elements are part of the following research, which has as an objective identifying the general criteria that guarantee the development of a sustainable exploitation of minerals.

In order to achieve this objective, the authors make the use of observational and experimental methods, though visits made to both active and inactive mines in Latin America and other parts of the world. The results show their great application at places with the analogous conditions.



90

INTRODUCTION

The technological, economic and social development, globalisation, the revolution of the communication, the pressure of the financial markets, the urgent necessities of the poor of the world, the need to respect cultural diversities, the need respect human rights, the need to eliminate environmental damage, of protecting the biological biodiversity as well as the conservation and rational use of the natural resources, all this represent a challenge to the humanity and to the mining sector.

Within this international panorama, the mining industry plays an important roll in the industrial sectors of the economy.

For that reason it is recommended that the mining industry adopt the SD philosophy as the main objective for its strategic planning in the short, medium and long terms. For this to happen, it is important to develop approaches that serve as guide to reach sustainable development issues.

On of the ways of facing this challenge, is the topic treated in this paper, which is based on experiences acquired by the authors during work visits carried out to different mines not only active but inactive as well in diverse countries of the world.

DEVELOPMENT

The mining sector presents an interesting challenge as for the reduction of its environmental impacts. These impacts include the emissions of pollution during the period of the mining activities; the transformation of the land and the creation of conditions that can drive to the environmental problems in the future.

This sector depends on a number of powerful tendencies, which will define the conditions of business in which the industry will operate in this new century. Perhaps none of these challenges is



91

bigger than the call for a global transition toward the Sustainable Development, based on a vision of reaching a better quality of life for today's world population.

These problems have been object of study and discusses, meaning of it’s concept in the last decades in different parts of our planet, among experts and investigation groups, in forums, meetings and international summits where Projects and general and specific strategies have been approved. They include solutions to satisfy the necessities of the current and future generations and to achieve with it the so call Sustainable Development.

To reach the sustainable development in any human activity it is necessary first to have a detailed definition or at least to possess the necessary clarity on the meaning of this concept, because you easily can incur in errors get confused.

The International Union for the Conservation of the Nature has conceptualised the sustainable development recognizing the different dimensions that necessarily lead to the achievement of its goals. It is a significant advance regarding the general form in which this problem had been outlined by the Commission Brundtland in 1987, and that Julio Carrizosa characterizes in the following terms:

"It is a process of economic and social improvement that satisfies the necessities and values of the population's groups, maintaining the future options and conserving the natural resources and the diversity", [Carrizosa, (1992)].

About scepticism of many people who wonders if the term sustainability is applicable to an industry like mining, based on non-renewable resources, Patrick Moore exposes two arguments that give answer to this query when expressing:

"People don't understand the real meaning of the sustainable concept. First, it is convenient to remind that not necessarily to remind because a resource is not renewable



92

soon it will disappear. The iron, the copper, the manganese, the titanium and the aluminium are good examples of minerals whose production can be sustained in a future, we can foresee. Second, the sustainable is a relative concept, it is not absolute. Nothing is forever, the sun will still explode in three or four trillion years and then it is not perfectly sustainable. The sustainable is a peremptory order for all the segments of our society, but to make it real should not be more difficult for the mining industry than to anyone. I recommend that the industry adopts the philosophy of the sustainability like its central objective for the strategic planning", [Moore, (1997)].

As it is appreciated, this is a complex concept that incorporates the following principles, each one of which is applicable in any form to the development al activities:

- The ecological sustainability

- The social sustainability

- The cultural sustainability

- The economic sustainability

On the other hand, many authors, [such as Mercado, (1995) and others], have supported the term of sustainability which implies the maintenance in the time of a certain phenomenon or process. Other investigators generally associate only this concept to that of renewability of the renewable natural resources, without considering their applicability to the non-renewability, [ICSED, op. cit.].

The non renewable resources, used and exploited for example by the mining activity, are those that possess a rate of very low renovation, in terms within relevant time for the human beings, for this reason they are considered like a practically null rate, [Mercado,



93

(1995)]. This implies that the bigger the extraction rate is, in some moment of the time these resources will be drained.

According to this analysis, the exploitation and use of the natural resources not renewable cannot be by they selves sustainable because they are drained, due to the fact that generally the extraction rate of the is bigger than their regeneration rate. However, when considering that the sectors make uses and exploitation of the renewable natural resources, are part of a great system, then one can speak of sustainable development of this system. This system is integrated to each other by a group of related subsystems such as the ecological, the economic and the social system.

It is necessary to use the application of the sustainability in the mining activity it should be kept in mind and executed a group of actions arisen from the domain and application of basic concepts, many of which depend on technicians, directors and managers of the mines, as long as other, for example, the price of the mineral in the international market is variable and it does not depend on their will, [Guerrero, (2001b)].

In this sense, and taking as the base the studies carried out in diverse mines so much active as inactive as well, of diverse parts of the world; we consider that to reach this complex goal, it is necessary the application of the following general approaches:

1. Improvement of the mining activity.

2. Improvement of the safety conditions of the mine

3. Mitigation of the environmental impact caused by mining.

4. Use of the appropriate equipment according to the conditions of each location.

5. Rational and integral use of mining resources and minerals for the community benefit.



94

6. Decrease of the environmental and geodynamics threats and dangers.

Improvement of the mining activity.

The mining exploitation should be based on the study of the geomechanic characteristics of the rocky mass, of the elements characterizing the ways mineral body lies and of the other geological and mining factors that should be characterized at the same time mining works advance. The results of the investigative works obtained in the laboratory not always coincide with those of the field, because the rocky mass is a material environment of great complexity presenting a series of particularities and phenomena that arise from it and cause an important impacts during their exploitation.

The improvement of the mining activity in general, constitutes a point of vital importance. For this reason not only in the main operations of he deposits’ exploitation but in the auxiliary ones as well, same measures are taken in order to achieve our objective, the improvement of the mining activity. To carry out this improvement, it is necessary the use, of advanced technologies and Systems of Opening and Exploitation, since the initial stages of the mining projects, based on impacts on the integral knowledge of the solids, so that a minimum of affectations is the environment and the measures allow to reach high indexes of mining Exploitation with a minimum cost.

One of these methods could be linked the elimination of exploration roads that generally cause big damages to the flora and local fauna. This method can be substituted by the realization of tunnels (in the case of mountain locations), or auxiliary excavations of exploration. This variant would have as an advantage, besides the previous one; the possibility of the use in the future of this excavations for the opening of the deposits or other new bodies.



95

In the exploration stages like in those of opening, development and exploitation, the man historically has made use of the topographical means that have served as support for the realization of diverse works and the solution of complex problems, as well as for creating the bases in the construction or building engineering works. However, the solution of these problems with topographical traditional methods has caused considerable damages up on the environment and the nature (deforestation, alteration of the flora and the fauna, etc.).

It is important to keep in mind, since the beginning of the Project, everything concerning one to the stage of Closing and their later control, to guarantee under the most favourable conditions their status with the smallest social-environmental impact and the best use of the mineral resources. Another element to value is the possible importance of the mine from the point of view of the patrimony it represents, which we should consider as element of historical value. All aspects above-mentioned has a strong linking with the community, for these reasons these aspects have not only economical and environmental importance but they also have a high social value environmental meaning, a high social value.

In studies carried out in Cuban nickel deposits, it has been found that during the stage of geological exploration, great quantity of hectares of forests has been devastated with the purpose of building roads and breaches. In the same way it has been proved that with the development of the mining works these impacts reach a bigger degree.

It is well-known that the traditional topography is based on the construction of polygonal of detour, linkage (bond), going and turn, direct and inverse intersections; with the later calculations that finish with the making of the drawing. This mining branch shows that during the realization of survey in mountainous areas and in forests as well as in places of marked slopes, roads and trails should be built In



96

order to obtain bigger visibility that allows to sight the sign. All of this brings about the alteration of the ecosystem.

These methods can be modified with the employment of new technologies, that would diminish considerably the damages and affectations caused to the environment. For this reason it becomes necessary, the rational use of such automated equipments as Global Positioning Systems (GPS), Total Stations (Electronic Tachometers), with this equipment it is not necessary to build those polygonals.

In these cases the survey is carried out without the previous construction of polygonal, all the steps are not taken into consideration to calculate the coordinates of the points since these they are obtained directly in the display of the equipment or stored automatically in a magnetic card that later on is processed through the operating system WINDOWS, what makes possible to obtain the necessary data for the making of the Topographical drawing making use of the TOPO6 and SURFER, [Guerrero, (1999)].

Another complex operation that should be kept in mind is the selection and correct application of the Methods of Exploitation of the deposit. In this sense, and taking as a base the factors that influence on the selection of a certain Method of Exploitation, (physical-mechanical Properties of the ore and of the country rock, elements considering the way deposits lies, relief, planned production of the mine, existent geologic reservations, morphology of the mineral bodies, available equipment, level of knowledge of the mass, etc).

It is important to make use of Systems of exploitation where the old mined place remains unoccupied even after the extraction of the ore, (such as the denominated Methods of Exploitation for Open Chambers), in such way that it allows the employment of those mining spaces for other economic, social, strategic, tourist, patrimonial purposes, etc. For this reason it is recommended the substitution or non application of those systems that don't offer this



97

possibility; (such as storage, filler, fortification etc), or those that cause a remarkable affectation on the environment, and elevate the costs of exploitation considerably, (among other we can point out the Systems of Exploitation for Block Caving, sublevel run, etc.).

In general this high cost of exploitation is linked with problems related with the sinking and rock slips that occur in underground and open mines, such a the mine The Merceditas (Cuba), where as a consequence of the disordered recovery of antechamber pillars we had such situations that have made a remarkable influence the efficiency of the exploitation of this chromium deposit.

Improvement of the safety conditions of the mine.

The execution of the measures for safety in the mines, is one of the elements of vital importance to reach the sustainable development. For reaching a superior status of development, it is important to maintain the physical, psychic and intellectual integrity of the workers and of the principals in change of the mining company. However, the practice has demonstrated this is not always this way. Generally, because of technological, economical or of production reasons, it is incurred in violations of the measures of safety.

The content of powder in the atmosphere generated mainly by the use of explosive substances during the separation of the or due to the use of the means of transport and loads in the mines affects the health of the workers in the working fronts. This powder is also, partly expelled to the exterior by the currents of air, contaminating the atmosphere. Besides, a lot of powder is generated during a series of works that are carried out in the surface of the mine (the movement of equipment, plant of Mechanical Preparation; etc.) such a situation affects the conditions of security and hygiene in the mining activity. In such a sense, it is important to have present the application of ventilation Outlines, (flow-trough System, draw-trough System or



98

Combined one) that facilitate the quick evacuation of the polluting, gases nearby the work fronts. It is advisable the exploitation, at he maximum level, of the ventilation outline by natural shot if the geomining conditions allow it.

Another factor that should be kept in mind to achieve an improvement of the safety conditions of the mine is the employment of means and of mining equipment. The mining equipment also produces affectations to the man and the environment. The noise generated by the equipment (manual, telescopic perforators, pneumatic hammers, front loads, trucks, tractors, and electric motors); in occasions overcomes 60-70 decibels affecting the man that operates this equipment and those in the working front. In general, the equipment used in the medium or small mine lacks the booths with acoustic isolation.

On the other hand, the workers don't always use the means of individual protection, being exposed to the noxious effects caused by such noises as: deafness, tires, stress, irritability; dilation of the pupils; the increase of the production of the hormone thyroid, of adrenaline and of corticotrophin; the increase of the heart rhythm; movement of the stomach and of the abdomen; react muscular; constriction of the sanguine capillary; alteration of the results in psychic and psychomotor activity and interference in the oral communication. During studies carried out in diverse mines located in the oriental region of Cuba, it has been able to determine the sound level of some of these sources of noise, [Guerrero, (1999)].

Sources of Noise Sound Level (in Decibels) Explosions 140.

I hammer Tire 140. Telescopic perforator 120. Pneumatic perforator 120

Front loader 100. Truck, tractor, etc 80.



99

These data show us first the importance that possesses the use of the individual and collective protection means in the mining activity; and second the affectation that these activities can cause on the health of the workers.

Other studies carried out in diverse active mines of the world have demonstrated that, as o consequence of the ignorance of the properties and structural behaviour of the rocky mass lamentable accidents have taken place and have caused the death of workers as well as the loss equipment and materials of the mine. Example of we such accidents have happened during the productive process of Cuban mines such as Merceditas, Amores, (Love), Matahambre, Júcaro; and Spanish mines as Rio Tinto, (Tint River); where the workers have been the move affected ones from the psychological or physical point of view. This situation brought about the decrease of the results in the work shift, besides the unavoidable economic damages.

Mitigation of the environmental impact caused by the mining.

The development of mining, has made possible the extraction of great quantity of minerals from the earth crust, these resources have served as raw material for the increasing of the industrial development of the countries. In Cuba, for example important deposits of copper, nickel, iron, chromium, manganese and gold, began to be exploded from the colonial times through diverse Methods. At the present time still they have being exploited, although the intensity and the equipment are not the same.

During the period of exploitation it has not been taken into consideration, as it deserves, the negative effect that produces the mining in the environment. Without being kept this in mind, great quantity of residuals and brushes are poured in different places, occupying spaces of very fertile lands. Other damages caused by mining constitute an object of study for several investigators and for national institutions that have noticed the importance this aspect has.



100

It is important to study these phenomena to avoid in a reasonable period of the time the degradation of the ecosystem due to so noxious activity like mining. Therefore, it is necessary from the initial stages, even from the Project of exploitation of the mine, to consider the elements allowing foreseeing in a quantitative and qualitative way the resources that should be used to restore or to re-establish our environment.

As a result of the carried out works, it has been determined that among the affectations caused on the environment by the mining Exploitation we have the following:

1. Occupation of great extension on lands of the surface, for the surface buildings, the access roads, the burrow and other constructions.

2. Contamination of the hydraulic resources the underground and the superficial one as well.

3. Atmospheric contamination; in particular, by powder.

4. Affectations on landscape, flora and fauna.

5. Problems related with the Protection and hygiene of the Work and the Security of the works.

During the processes associated to Mining, big volumes of materials are generated by removal; part of them is transformed to obtain useful products and the solid waste, in quantities bigger than the useful volume of material is place in waste and tail reservoir. The safe disposition of the tails and other mining residuals (included the quarry waste) it is recognized today the most conflicting technological challenge in the mining industry. Every year according to the estimated data, more than 15 trillion tons of new tails (most of the times contaminated with chemical reagents) they are placed in the surroundings of the metallurgical plants. In spite of these respectable figures it exist practically any database about the places does´nt of



101

tail reservoir. There is also no information about the general view of this problem. There is only information about the volume and the physical-chemical composition of the tails.

Many companies refuse today the acceptance of their responsibility for the massive accumulation of tails and there is a growing international protest against the growth of the tail reservoirs and the “endemic”disaster of the mining residuals. This has made several companies to look for alternatives, among those the most important are out the reutilitation of the tails containing useful metallic elements with the later inertitation of the tails. This solves in certain way caused by mining constitute an object of study the problem of the biodisponibility of the heavy metals and the sour drainage, but it doesn't solve the problem of the volume. Theoretically the filler of the same extraction places, is a good alternative, although this implies the impermeabilitation of these areas and the construction of collectors of the drainage that make the process notably more expensive.

During the research works developed in the mine “Merceditas”, it was determined hat the location in the surface near the mine of such buildings like, shops, the Plant of Mechanical Preparation, the Minihydroelectric, the warehouses and the workers' housings, burrow; caused the occupation of considerable quantities of lands and the alteration of the original natural landscape.

On the other hand the process of pouring materials constituted by sterile rocks resulting from mining exploitation, causes big damages mainly on lands considered feeding source for the residents living nearby the mines. In the case of small deposits it is advisable to carry out a study of geologic prospecting through exploration tunnels that allow to eliminate exploration roads, that cause in an important way the deforestation and slips of hillsides with their rising damage on the nature.



102

In general these rocks are stored, in the burrow (there is in The Merceditas, Cuba, approximately 450000 t of quarry wastes; in the mine Saint Domingo, in Portugal the burrow has its origin before Columbus times, there are stored in this mine a great quantity of sterile material), occupying big land extensions, damaging the flora and the fauna and consequently the ecological balance. It is known that in the Mina Grande, (Big Mine) El Cobre located in the county of Santiago de Cuba, the burrow was located in a wide area near by the mine, in such way that fertile lands, that can be used for other ends, have been lost.

In the mine The Merceditas of the Region of Moa, the incorrect use of the mining technology has produced remarkable damages, such as the collapses. The faulty and not planned recovery of the intechamber Pillars has caused massive collapses as the one happened in March of 1987 that occupied an area of 600 m2.

This collapse affected the surface of the land partially with maximum establishment of 3,4 m and angle of collapse of 660, [Guerrero, (2001a)].

In this mine, during the exploitation of the chambers and due to geological, and production problems in the period between the years 1982/1987, the location of the pillars was diversely, without having no previous or rigorous control neither of the flaws nor of the cracking, bringing serious slip problems in the country rock. Likewise, in the 9/3/87 it took place an affectation in the surface due to these causes, with the appearance of a crack that didn't overcome 0,50 m in the road that leads to the tunnel M-1 (bench mark 475). The separation of the cracks in some places didn't exceed 0,2 m up today runs, have not been detected in other parts. Starting from the area of the benchmark 400 until the valley of the river, sinking areas are not observed the vegetation remains in normal conditions.

Another element that should be kept in mind is the location, in the surface of the mines, of buildings engineering works, shops



103

with different functions, of the access roads, plant of preparation and beneficiation of minerals, the deposits of minerals and of the tails and burrow; using the smallest area as possible in the mining surface in order to avoid a bigger occupation of the surface of the location. It is important to have present the location of these constructions works in the called Surface Complex. They offer the possibility to locate several working places in the same building. This solution diminishes the affectation upon the environment.

Studies carried with the waters of the river Jaragua demonstrate the level of pollutants present in them due to the pouring of residuals coming from the underground mining exploitation of the mine The Merceditas. Among the polluting elements poured in this river stands out the dune. In the best cases it is used as. This rock construction material near burrow, although there are studies that demonstrate its applicability in other spheres of the national economy, as for example: they serve as fire-resisting raw material, for the production of antiadherent paintings, for obtaining of casting mixture and for casting sledge in the foundry shops.

In the manganese deposits located in the county of Santiago de Cuba, the environment has suffered remarkable damages due to the mining exploitation. The location of burrows on the surface of the land caused the contamination of with sterile material, of fertile floors. The near rivers as Guaninicún and Ponupo also received materials or minerals of low law. Yet a these mines are inactive. The excavations were abandoned without having today in day specific use. During their exploitation it was necessary to use different outlines of Opening (vertical well, drift, etc.), however, after the closing of the mine these excavations were abandoned and filled up by ground material carried by the pluvial currents. Vegetation also has ground up there; other excavations are flooded with water. In these moments residents of the place through the sowing different cultivations have reforested this area.



104

During the exploration of the lens of chromium in the mine The Merceditas in Moa, underground springs were perforated above the tunnel M-1, bringing the appearance of a considerable quantity of water that affects the mining works. This problem was solved in an unusual way through the auxiliary tunnel of drainage.

Use of appropriate equipment according to the concrete conditions.

The employment of mining techniques that guarantee the minimum of affectations upon the environment, high rates of productivity and allow the operators to work in working conditions, with the less possible health affectation will be the way to viability and sustainability of mining. A technique of easy manipulation that guarantees a smaller powder volume and a minimum of risks in this activity would motivate people linked with this work.

The substitution of the traditional equipment (manual, telescopic perforators, pneumatic hammers, load front, trucks, tractors, electric motors); for automated equipment of high productivity (Jumbos, L.H.D., GPS, Working Combined, etc.), would allow the improvement of safety conditions during the mining working, [Guerrero, (2001c)].

This new equipment in spite of being designed mainly for the great mining should be adjusted to the concrete conditions in each place. Their dimensions should be allow their use according to the dimensions and characteristic of the excavations and the mass, attention should be played to their productivity in order to achieve the execution of the production plan in the mine.

On the other aspect, to take into consideration is the substitution of traditional methods of separation of the ore, (such as Perforation and Explosion), for methods of mechanical separation, (working combine, Arcwall coal cutter, etc.). This substitution it would diminish considerably the affectations on the environment,



105

since a smaller number of gases would be expelled to the atmosphere, a smaller seismic and sound would be made and, as well as the negative effects caused by the shock wave originated during the explosion would disappear.

Rational and integral use of mining and minerals resources for the community benefit.

In order to reach the sustainable development of mining exploitation, it is necessary to consider the integral use of the mineral and mining resources. Among the factors that makes on influence the achievement of this purpose, we find the technological development reached in the mining - metallurgical and the processes beneficiation of the extracted minerals.

During the massive exploitation of the mineral bodies in the mine The Merceditas (Cuba), besides the extraction of the chromium pricks, several accompanying minerals are extracted these minerals due to their insignificant presence in the ore, are considered in these moments exportable resources. The wide use is known of many of these accompanying minerals, is known in the foundry industry, in making abrasive paper, in the production obtaining of Dioxide of Titanium used more and more as pigment in paints, replacing old colours. Nowadays numerous investigations are focused on use of the metallic Titanium as material for structures. Due to the high value of the relationship resistance - weigh, the Titanium has demonstrated to be a very appropriate material for the construction of frames, plane and space ships motors. Other possible uses are the production of inks, substances for preserving wood and disinfectants.

The use of the excavations that with good conditions of stability, is considered advantageous from the economic and strategic point of view. They could used for the location for the location of objects of the mining activity itself and for other useful works of economical, social purposes and for the defence of the country. All of this is possible due to the fact that the are generally, are smaller than



106

the necessary ones to build new excavations dedicated especially for those objectives, [Blanco, (2000)].

In the active mines as well as the inactive ones there are mining places that have not a specific use after their exploitation. Studies carried out in the old Cromita mine (Cuba) endorse the use of the galleries and tunnels to storage silts of petroleum coming from the tanks of the Union del Nickel, located in the port of Moa. Other works recommend the use of these excavations to store scrums of the factories, construction of refrigerators, to keep equipment and military technique as well as places for adaptation industrial of the personnel to the underground conditions.

The employment of the mining excavations for locating in them different works of the economy, provides us the following advantages:

1. A bigger protection of the works from the external actions.

2. The rocky mass use in their natural state, as building and of isolation material.

3. A bigger antisismic stability.

4. Decrease of the volume of funds, dedicated to the repairs and modernizations.

It is also important to highlight that once the reservations of minerals in the deposits have been consumed the productive activities of the mine cease and the massive unemployment of the workers generally takes place, usually without any solution. This problem can be solved through the later use of the mine for other purposes, Ex: the development of tourism. A typical example of this solution is presented in the mine Rio Tinto, [(Tint River, (Spain)], where once concluded the mining exploitation of the deposits, the Project of Closing of the mine took into account the creation of a mining museum in this area, revitalizing this way the life of the mine and



107

bringing as a result the visits of more than a million of tourists who annually come to this mining installation.

Decrease of the environmental and geodynamics threats and dangers.

The knowledge and control of the geoenvironmental threats and dangers contribute to eliminate the effects of a mining that has no technology adapted for the treatment of waste, which affect the environment.

The mining works lead to the formation of spaces in the earth crust and lead to the alteration of the balance existing in the rocky mass. As a result of this activity, the rock that surrounds the formed holes becomes deformed and starts moving. This phenomenon, in many occasions reaches the surface.

This process of displacement of the rocks can also happen due to other causes such as: tectonic processes, breakup processes, decrease of the level of the underground waters, variation, for different causes, of the characteristics of the rocks and others. The study of these phenomenon leads to the identification of the geological and gemechanic threats and dangers that occur during the mining exploitation and after it.

Among the geological and geomechanic threats and dangers that occur in the mines Merceditas, Amores and Cromita; of Cuba, we find the following ones:

1. Rocky slips in mountainous hillsides. 2. Sinking of the surface. 3. You partial collapse of the chambers. 4. Loss of stability of the galleries and chambers. 5. Presence of tectonic dislocations of great magnitude (Folds,

active flaws, systems of cracks).



108

6. Floods.

The danger geologists and geomechanics present existent in the studied mines constitute a problem of first order. They, in many occasions may attempt against the man's physical integrity and against nature, causing severe damages. For this reason the execution of the following measures has vital importance for reaching a sustainable development.

1. Realization of a previous study and systematic control of the rocky mass behaviour during and after the execution of the mining works.

2. The use of maintenance methods adapted to those areas where the lost of stability is manifested.

3. To carry out periodical controls on the excavations, to cleaning them of brashest and other materials.

4. Appropriate classification of the protection pillars.

5. Appropriate recovery of the protection pillars.

6. Construction of contention walls in the hillsides where they rocky slips have appeared.

7. Realization of controls in areas of possible rocky sinking.

CONCLUSIONS

1. The sustainability of the mining activity could be achieved if take into account the analysed approaches.

2. The election of an appropriate technology in the mining activity allows reaching better economic results and to minimize the affectations caused on to the environment.

3. The improvement of the mining activity in its different stages of its development, starting from the better knowledge of the rocky



109

solid, gives us the possibility of to reaching a bigger productivity rationality and security during all the processes developed in mining activities.

4. The mentioned approaches that allow minimize the socio-environmental impacts and to lead to an integral use of the resources, allow the creation of favourable conditions with the objective of achieving a sustainable development of mining activity.

BIBLIOGRAPHY

Blanco, Torréns, Roberto, Roberto Wátson, Quesada y Diosdanis, Guerrero, Almeida. Abandono y cierre de minas. CD Jornadas de Cierre de Minas del CYTED. Revista Panoramaminero. # 257. Argentina, octubre de 2000.

Carrizosa, U., Julio. La viabilidad del desarrollo sustentable en Colombia. Una contrapropuesta. En: Guhl, Ernesto, Medio ambiente y desarrollo. Santa Fe de Bogotá, 1992. p. 89-90.

Guerrero, Almeida, Diosdanis, et. all. Impacto ambiental provocado por la minería subterránea. III Taller Internacional de los recursos minerales. CD Resumen. Moa, Cuba, 1999.

Guerrero, Almeida, Diosdanis et. all. Perfeccionamiento de la Variante de Explotación para el Yacimiento Merceditas. IV Congreso Internacional de Geología y Minería. CD Resumen. La Habana, Cuba, 2001a.

Guerrero, Almeida, Diosdanis et all. Criterio Generales para alcanzar el desarrollo sostenible en la actividad minera. III Convención Internacional sobre Medio Ambiente y Desarrollo. Desarrollo Sostenible: Realidad o sueño a 10 años de la Cumbre de Río. La Habana, Cuba. 2001b.



110

Guerrero, Almeida, Diosdanis et all. Importancia del Cierre de minas para alcanzar el desarrollo sostenible. III Encuentro Nacional de Derecho Minero. IV Encuentro Latinoamericano y del Caribe de Legislación Minera. Buenos Aires. Argentina. 2001c.

ICSED. Métodos de valoración económica y social de los recursos naturales y ambientales, Santiago de Chile, 1994.

Mercado, E., O. et all. El concepto de desarrollo sustentable y los recursos naturales no renovables. Resumen del IX Simposium de ingeniería de minas. Chile, 1995

Mern. Environmental & social performance indicators and sustainability markers in mineral development. A prospectus. University of Bath. UK, 1998.

Moore, Patrick. Hard choices for environmentalists and the mining industry. PDAC, Toronto, 1997.

Pezzey, John. Conceptos sobre desarrollo sostenible: un análisis económico. W.B. Washington D.C., 1992.

Posada, L., G. y Vargas, E. Desarrollo sostenible, relaciones internacionales y recursos minero energéticos. Universidad Nacional de Colombia, Santafé de Bogotá, D.C., 1997.

Toman, M. and Walls, M. Nonrenewable resource supply: theory and practice. Capítulo 9, p. 182-201 de Bromley, Danile W. (De.). UK USA, 1995.

Vargas, Pimiento, Elkin. Indicadores de sostenibilidad y su aplicación a las Empresas Mineras. CD Resumen. I Jornadas Iberoamericanas de cierre de minas. Huelva, España. 2000. p. 3-6.

Werther, Guntram. Native peoples’ issues and the future of mining. International California Mining Journal. Vol. 66 No. 10. California, 1997.



111

SUSTAINABILITY INDEXES FOR THE MINING INDUSTRY

Enrique M. González Panorama Minero

Argentina

Large scale mineral extraction brings significant impacts on the economy, social structure and infrastructure of the communities closely associated with the area where it is developed.

Mining has been more or less intensive, during human history, depending on which was the mineral extracted, the time and the region where the deposits were located. Nowadays, extraction activities are strongly regulated, controlled and supervised mainly based on the environmental impacts they have, in some cases as direct return on investment and the use of human and technological resources and, in others, for the new population settlements that occur as a result. And this happens in most of the countries that have assumed mining as an economic activity for their communities and, consequently, the State has taken over its representation role.

In the beginning, mining was performed by single companies, in general family undertakings, that would make venture investments and manage them to the best of their abilities and, many a time, their intuition.

In the XXth century, mining started to be controlled mainly as an economic activity, creating jobs and promoting new population settlements; subsequently, when its characteristics got a more defined sign, it worked as a generator of wealth, and lately, in our modern times, as a sustainable activity where its adverse impacts, mainly environmental ones, can be controlled.

And which could be understood as the sustainability indicators in the current configuration of the mining industry? In the



112

international debate held over the past few years, the idea persists that it is necessary to focus on three fundamental issues which, according to analysts, shall be the object of very complex institutional, political and economic agreements, depending on the geographical area where they are to be applied: a) Large investments and legal stability, the first issue that will take precedence in ranking risks; b) The socio-economic implications of mining settlements, as a part of the larger picture of long-term welfare and social security policies; c) Environment protection policies. In this sense, international standards have been designed in Basel, the Kyoto Summit, the Rio Declaration at the United Nations Conference on the Environment and Development of July 1992, and others, where the concept of sustainable development has been established and the sustainability paradigm was imposed on mining.

Two demands need response nowadays. On the one hand, the global demand for mineral raw materials for industrial applications that spurred ongoing exploration for new economical resources. And on the other, social call for new forms of social and economic development and environment protection.

WHERE’S THE ANSWER?

The new mining development scenarios

A new economic scenario came to be in the ‘90s, which entailed enormous changes, bringing many difficulties to the various mining operations in different parts of the world. Such extensive transformations, as many analysts point out, came about with globalization, followed by substantive progress of new technologies aimed at mineral research and extraction, company mergers and strategic alliances, regional blocs, significant asset increase and knowledge-based business opportunities.



113

In the mining world, large deposits began to be tapped and, as specialists would remark, extended low-content mineral bodies called for a more scientific knowledge for mineral resource definition and different engineering disciplines engaged in very low grade ore treatment.

Consequently, new machines and accessories as well as transportation ducts and special belt conveyors were developed, waste dumping sites and tailings ponds were designed, while water resource protection, power saving, good housing and environment stewardship became big issues with a view to future mine closing.

Thus it was that in most countries, particularly in areas like Latin America, prospecting and exploration in search for mineral resources grew on more selective bases and focused on two issues: a) geologic potential and b) policy and regulation systems.

State policies

Another sustainability index is defined by State policies ensuring stable legislation offering juridical assurances. Countries become the beneficiaries of world investors’ trust based on their respect for the rules of the game, faithful compliance with the duties States establish for their institutions and the consistency of their actions towards the achievement of mining development objectives. Consequently, Governments have to assume their leading roles and consolidate the benefits of sustainability, assuring equitable development and continuity of industrialization and development over long periods of time.

Mining legislation

This is the basis for development. The existence of legal instruments to properly support mining development parameters constitute a clear indicator of sustainability. Legal frameworks have to be established by consensus and a general agreement of



114

lawmakers. Tax legislation cannot be changed: this is a key element and the governing principle for juridical security.

In this sense, the ‘90s witnessed deep transformations in the legislation of most Latin American and Caribbean countries. These transformations entailed the enactment of new mining codes and laws, a study of which was undertaken by the Economic Commission for Latin America and the Caribbean (CEPAL).

The concept of sustainability –sustainable development-- was proposed for the first time ever in 1987, in the paper known as the Brundtland Report. Sustainable development is defined as the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It is based on the belief that people can build a safer, fairer and more prosperous future. Then, sustainable development means giving future generations as many opportunities or even more opportunities than those we enjoy at present.

This means bearing in mind that sustainable development poses the need to have economic, social and environmental concerns in our vision of mining.

A concept that has lately acquired great strength is the one that says that a corporation can ensure dividends to its shareholders in the long-term only if it can achieve a level of excellence in its compliance with environmental and social responsibilities. This is the only means to secure the trust of the community where it exists. And this is so because mining takes and maintains long term investments.

In order to face this challenge, companies have introduced Environment Management Systems based on ISO 14001 standards to govern their conduct.

Many companies, in Argentina and other countries, support programs associated with work aimed at protecting the environment and there are many records of significant community-related efforts,



115

including participating in education programs at all levels, designing and supporting housing development programs, securing potable water, power and medical care availability, all in order to ensure better standards of living. Finally, they have a role in reducing the high poverty levels that usually prevail in the areas where they develop their activities.



117

CONCURRENT RESOURCES: SUSTAINABILITY DEPENDS ON AGREEMENT

Ing. José Enrique Sánchez Rial

Dirección de Minería de la Provincia de Córdoba Córdoba, Argentina [email protected], [email protected]

Departamento de Evaluación y Proyectos Mineros Inventario de Recursos Mineros de Córdoba

Sistemas de Información Geográfica - Coordinación

ABSTRACT

It is not easy to perform a sustainable mining project because of the nature of the ore bodies. The minerals or rocks that are being nowadays extracted will not to be at hand for the future generations.

Yet, some ores, as salts or river gravel and sand deposits, have possibilities to grow up again.

The problem of the alluvial deposit mining, which is ignored and precarious, and the possibility of easily developing a sustainable mining project with simple and specific work rules, are stated here.

INTRODUCTION

Although mining has always been described as a farewell industry, that is to say, there is no contact with other human activity, it is also true that this situation has changed through time.

Pipe lines, railways, electrical lines, routes, are built towards and from the ore body with the unavoidable consequence of demographic explosion in site and all along the way from the civilisation to the work area.



118

The “sustainability” of mining works is more and more under discussion, when different and possible uses of territory are claimed by other actors, and miners see this hegemony menaced.

A more than interesting example is the one of the river gravel and sand deposits, because we can exploit them if they are important in their kind and their quantity but more than that if they are close enough of clients, that is, the city that needs them.

In this case, the mining industry is developed by demand, that means, with increase of population. The mine is not reached by demography but developed by it.

SHARED RESOURCES

The mines are traditionally situated in farewell parts of this planet where the companies have an hegemonic use of that part of territory and they solve the few local conflicts facing the local environmental, social or commercial loses with the benefit of “economical development”.

In this way, any copper mine in Los Andes has been and, in many cases is, the hegemonic user of an important sector of territory.

Even nowadays, considering new environmental paradigms, the conflict between mines and natural environment are “solved” in a more or less economic way by the mining industry, but with minor agreement level for the nature-interested people.

In recent times, the indigenous population voice has begun to be more carefully heard, so with this kind of conflicts the mining companies had to and have actually changed their processes to get new sustainability indicators.

So it seems that sustainability in mines is strongly linked to the number of other territory concurrent users, where each one desires to be the hegemonic one.



119

There are lots of shared resources in the same territory examples, but the most remarkable one is that of the river gravel and sand deposits or, a not so important case, as the one of the old lateral gravel and sand deposits outside the river.

In these cases, there are three different resources in the same place, water, gravel and sand deposits, and the more significant one, the recreational use by tourists and local population.

The three possible uses have a shared origin, that means, a urban agglomerate developed from or near a river, large enough for the three demands to be satisfied

There is not a proved method to measure the problem yet. But it is possible to deduce, that the conflict will be enlarged with the demographic increase of population and that the three groups interested in both resources, will try to protect its level of use taking off privileges from the others. This defence will surely follow two possible ways: one will be the sustainability increase of its own sector. But the second, and most used nowadays, is the question concerning the sustainability of the other processes.

At least one thing is clearly seen, if one sector of territory has more than one useful resource, no hegemonic utilisation of one of them must be allowed. Coexisting implies, necessarily, a compromise.

WATER AS A RESOURCE

This resource is so important that, for long time none of the works performed to make use of it was questioned in no way, not only in South America but also in the rest of the world.

Only in the end of the XX century, some disperse voices rose up against the negative effects of hydraulic works, especially big dams.



120

Nowadays, after large environmental disasters, the Environment Impact Evaluation (EIE) for hydraulic works, is required, even in the “developed” countries.

As an example, we can analyse the Province of Cordoba case, in Argentine, where a number of rivers cross the territory from west, the mountain zone, to east, the plains or “pampas”. At least one dam was built in each one of them, with the primary goal of preserving water, and a secondary aim of electric power generation.

This kind of works, in a minor scale, was carried out in several mountain streams, and none of them, the large and the small, have EIE.

During 1900 and 1975, the hydraulic sector had the hegemonic use of the rivers or, more exactly, water as a resource was the most important among the others. This hegemony had and has nowadays, effects over the other two possible uses of territory.

We can say for example that, the plains sector has no more sand or gravel due to the dams. The load of material that the river moves every year after the summer rains has a final rest into the lakes behind the dams. This was not noticed immediately, but the mining companies that dredges the rivers looking for sand and gravel, after 30 years of dams building, are having serious problems to find the underwater concentration courses of this material. At the moment they are dredging the last courses of sand, so important changes in the bottom of the river and on the shores are taking place so, as a result, cities constructed near the river are being menaced. The dams eliminated the renovation of sand deposits. To make it short, the hegemonic domination of a sector menaces the sustainability of other.

On the other hand, after some years the recreational and tourist use of lakes behind dams, provoked a logical and important population increase. Nowadays, this fact, joined with the absence of liquid effluent treatment facilities, led most of these lakes to an



121

advanced eutrofication process; in this way, the cleaning of the water to make it potable and the recreational use are seriously questioned. To make short the long story, the sustainability of the three uses, is in question.

Figure 1 – Province of Córdoba - General Hydrology



122

THE RIVER USED BY TOURISTS AND AS A RECREATIONAL RESOURCE

Córdoba, as different places in this planet, has sectors that are considered potentially interesting for recreational use. The mountains, specially the "Sierras”, with heights no more than 2700 m., have an important drainage system which is offered to the visitor surrounded by a mediterranean seasonal weather with short, dry and cold winters1, and hot, wet summers.

From the 60´s till now, this industry has been pressing more and more over the environment, so it is possible to assume that there are important areas were its presence has been and is hegemonic for more than 25 years.

This "no smoke industry", as it is insistently named, does not develop its actions without affecting the other two uses of the fluvial system resources.

This activity involves human installations in many points of the drainage system, not only in the bed of rivers but nearby them. Without making the EIE, most of this points became after some years, an environmental conflict centre. The eutrofication of lakes is one of the most remarkable.

Each installation involves, taking into account its success rate, the development of more elements of equal or larger importance, so the initial lack of evaluation problem gets larger year after year. Examples of the hegemonic use of territory are very common in our province.

In the same way the water resource is affected in quality and quantity, the construction material deposits face menaces over its industry, because the most interesting sand and pebble concentrations also

1 Seldom snowfalls occur but they also are used in a recreational way. People all over the province make trips just to see the snow.



123

have several recreational uses. In this way, the mining activity has a direct conflict with the tourism industry. This is more evident when the deposits are a result of special accumulations of material on the small dams, built as a kind of Spa.

THE RIVER CONSTRUCTION MATERIALS

It is necessary to put an eye on the enormous economic importance of the building and construction industry and its dependence on the extraction of river materials. The accumulations of these elements on riverbeds are a combination of several processes and circumstances that are typical for each sector of the river, and the weather features for each year.

It is reasonable to speak about deposits in the mining sense of the term, because they are an anomalous concentration of a specific resource -sand- in a limited sector, which is extracted, by a number of processes, to get profit. But on the contrary for most part of mining deposits, these ones have a very important opportunity to be renewed by new contributions transported by river floods. So, although this sounds actually incongruent, it is possible to say that they are "renewable mining deposits".

Of course, it is necessary to say that this mentioned possibility of being renewable depends on several factors but mainly, on the quality level of the exploitation process.



124

Figure 2. Typical Mountain stream

It has already been stated that if the upstream contribution area is eliminated, this kind of mining deposit loses its renewable character. However, if the mining works are between certain parameters, this industry can be one of the mining activities with better possibilities of carrying out a sustainable development project. As in the case of the firms interested in the other two river resources, the mining companies working in the streams are a constant conflict focus.

Both, water exploitation and recreational use, have in the mining works a menace for their hegemony, that is why the mining activity has been totally forbidden2, in some rivers.

2 Rivers of plains without seasonal contributions are anymore mineable deposits; so for most of them, exploitation has been prohibited.



125

THE LAWS

It has been pointed out, that an important level of conflict exists because of the concurrence of rights and public demands on the resources. To put it clear, society demands that the three activities exist at the same time.

Figure 3. Deposit on a Mountain stream

The water is needed, the building industry needs sand and gravel, and important sectors of the mountains of Córdoba have potential for the industry of tourism. This can´t be denied, but at the same time it is absolutely necessary for them all to have a sustainable development project.

The level of conflict in the Argentine and the Córdoba cases, is increased by confusing laws sometimes, overabundance in others but poorness or lack of specificity on terms.



126

The Constitution of the province of Córdoba3 rules, specifically, that the natural resources renewable or not, must be preserved by the provincial government, trying to make an integral, rational exploitation, avoiding waste of goods, in a way that, these goods, rights and lives of inhabitants of the province are not affected.

The article number 68 of this Constitution states that the legislators, " should write protection laws on the patrimony in order to avoid premature exhaustion of the resources and its irrational use".

Water and sand deposits of rivers must be regulated by different laws. The first one is ruled by the Code of Water of the province of Córdoba - law number 5589 -, the second one depends on the Code of Mines of Argentina and the province rules its application by means of a special office called Bureau of Mines of Córdoba. Tourism is an industry that has support on different laws, but generally it is possible to use Civil Code and Trade Code, two federal laws.

All the activities must adapt their processes to honour the environmental law of our province.

The specific resource taken into account in this paper is sand, pebble and gravel deposits of streams and rivers, lakes, or in abandoned riverbeds. In this case, the government is the owner of the land. So, as established in the Code of Mines that classifies these materials in the Third Class, the government can dispose of them.

The water legislation does not consider very seriously the deposits of building materials of river. So, despite of an important number of laws that could be taken into account to regulate the activity, all is reduced to a precarious permission to extract materials from the river given to the companies by the administrative authority.

3 Argentina is a federal country where the provinces has the right and the duty to write its own constitution and provincial laws



127

This "precarious permit of exploitation", with the fact that the Water Provincial Authority lacks of mining criterions, have generated and generate nowadays, important conflicts, and at the worst, drainage net irrecoverable damage.

Other known point of third party and environmental damage and conflicts, is the lack of physical limits on terrain, adequated temporally limits and demandable firms responsibilities.

Since there is not a real punishment system, rivers ends being despoiled by one of the mentioned industries or by all of them at the same time.

EXPLOITATION METHOD

There are two possible extracting methods depending on which of the river sector would be considered:

• The plains are characterised by lack of new deposits, underwater accumulations and no substitutes for river building materials. Basic equipment is a dredge near the bank, a chute, a screen set, and loaders and trucks for moving and distribution. Firms with a certain kind of system permanence can get a level of automatism, so they have also transporting belts at ends of griding and cleaning process.

Basic product is fine-grained sand with a certain quantity of pebbles and coarse-grained sand.

The precarious permission sets that extracting is allowed in a sector no more than 200 meters long, but firms usually search for underwater deposits outside the legal area, much more if it is considered that there is no physical limits of the permit.

Changes in riverbeds are very common and conflicts between firms and neighbours and local authorities occur every day.



128

Lack of new deposits ends on totally irrational process, so the prohibition of extracting was established on many of the rivers.

Attempts to prohibit the activities in mountain streams were made despite of fact that conditions are totally different there.

• Mountain zones or intermountain valleys are characterised by:

The extracting method is seasonal and the possibility that a flood eliminates the deposit, together with the fact that a "precarious" permit can end at any moment, transforms the process in which a deposit may be eliminated in a fast-short-6 months operation.

The complete extraction of a deposit changes the deposition condition, so we should expect a sand reposition not until 5 years from the elimination.

The firms with certain level of organisation have one or two loaders and some trucks to transport the raw material to classification and washing plants, and points of selling which are usually near a town.

The most successful companies are the ones with stock capacity, because they have their own places and enough equipment for this.

Deposits, that are renewed yearly.

Basic product is coarse-grained sand and pebbles, important quantity of gravel and rocks and a bit of fine-grained and medium-grained sand.

The precarious permit sets an exploitation area of no more than 200 meters along river on exposed deposits; no control system is effectively carry out. In this case, also the boundaries of sector have no physical expression on terrain.



129

Figure 3. Underwater deposit in a plain river

The conflicts with the tourism industry are very common and there are many discussions with environmental NGOs.

Despite of the presence of hydrocarbons and other pollutants in river, the Water authority seems not much worried about it.

It is possible that the problem gets worse if it is proved that some of these are gold-bearing deposits.

THE ECONOMY

There is a saying in Argentina that reflects specifically the economic importance of this sector: In a moment of crisis, the building industry is the last to succumb and the first one to wake up when the bad time is over.



130

Just as an example, it is possible to say that concrete is made of 75 % of rocky material. This can be provided by river deposits or, if is the case of more than three stages building, from rocks grinding of quarries.4

The extraction and dressing equipment used by the mining of river deposits is not as remarkable as the one used by quarries but is very important, indeed. A small familiar firm, for example, has at least 3 trucks, 2 pickups, 2 loaders and one washing and screening plant, with not less than 20 employees.

One intermountain river sand deposit with certain extracting possibilities of at least 100 m long, a rate wide of 20 m and not less than 2 m deep. This is 10000 m3 of raw reserve from which is likely to obtain and 80 % of products for selling. This means 8000 m3.

One of these deposits has at least 40 % of coarse-grained sand, 5 % of fine-coarse sand, 15 % of gravel, known in Argentina as "grancilla", and the rest of pebbles and boulders used for foundations.

With these figures in mind and considering the actual market prices, it is possible to make the following sheet5:

Material % Volume (m3)

Price (U$S)

Amount (U$S)

Fine-grained sand 5 400 10 4000 Coarse-grained sand 40 3200 4.3 13760 Gravel 15 1200 10 12000 Pebbles and boulders 40 3200 3.6 12480

Total 42240

4 Usually gneiss or gabric rock 5 Source: Bureau of Mines of Córdoba



131

This means that raw value of a small river deposit could be sold for U$S 42000. They are 800 trucks of raw material that, considering a diary production of 40 trucks, with a rate capacity of 20 m3 and a five days week labour6, or 200 trucks by week, can be extracted in a month.

In a river sector of 14 km exists at least three operators with a diary movement as the one mentioned above, which means U$S 126000 in a month. With a cost of operation near 20 % of sell prize and without considering resellers or stock holders, we speak of U$S 100000 monthly of raw gaining, from which it is necessary to discount service taxes, electricity costs, employees and general costs, but this does not make the figures drop below U$S 70000.

The provincial economic numbers for 1999, taking into account parity between dollars and pesos, are as follows:

Raw Production 8.444.519 ton. U$S 14.524.533

Plant dressed material 7.682.113 Ton.7 U$S 35.452.152.

THE POSITION OF INDUSTRY

Despite of these significant numbers, mainly taking into account regional economies, there is a kind of total-out-of-control activity, caused partially by an overabundance of coincident but not specific laws.

Even with the economics of the sector, mining itself, that is, authorities and mining industry representatives alike, do not considered that extract, wash and screen river material, is a mining activity. In other words, the exploitation of granate, for example, with

6 Usually the working week in Argentina is 6 days or at least 5 and a half day 7 As we can see, recover rate is very high for considering mining standards.



132

the same methods and a much lower production value, is considered mining but not the sand and gravel industry.

Overabundance of rules and laws, its counterpart -the lack of specificity-, joined to the opinion that different value products by grain separation from a raw material is not mining work, classifies this industry as precarious8.

This precarious industry quality is seen in many items. Among them, we should remark:

• The firms cannot put in its bank dossier or with its financial advantages, the most important part of business, which are its products.

• The fact that, the precarious permit for exploitation has not serious contracts with limited periods of extraction does not allow them make production, security, environment or financial plans.

• This lack of contracts generally tends to resource despoliation, mostly because, operators, " healing in wealth", prefer to work fast, double shift and get off all the material before some imponderable, third party presentations, or seasonal floods, make the production suspended or cancelled.

• This despoliation leaves behind a overview of rooted land that constantly put fire to the possibility of extracting total prohibition, and this makes the permits more and more uncertain. With this the operators, the process towards a production disaster goes faster.

• Lack of physical limits of works or permit sector do not let the planning of space for the equipment as the stocks areas. Terrain

8 This kind of out of risk is the opinion that disqualifies the industry as actually mining.



133

for these activities is always near a town and the conflicts with neighbours tend to move up.

• This lack of boundaries dilutes the responsibility of operators both downstream and upstream of specific work sectors.

• The production control with these precarious permits is practically impossible so it is the collecting of taxes from these companies.

River depositextraction

Precarious Situation

Conflictingmunicipal

ordinances

Not specificprovincial laws

Mining law that noconsidere this

industry

High demand forcheap building

materials

Indifferentgrinding rocks

industry

Not specificenvironmental law

Indifferentmining authority

Increase oftourism

Figure 4 Industry position

So this industry has the basic conditions to develop in a kind pirate environment where, at the most, some of them have a precarious permit or, in other words, a privateer licence.



134

THE BASIC AGREEMENT

Sand and pebbles river deposits are just a very good example of the way that sustainability depends not only on the deposit itself, or exploitation method, not even on the Environmental Impact Evaluation, but also on a series of external factors that construct the scene where industry acts.

Figure 5 - Despoliation

It is necessary to set certain basic statements that in this case would be:

• Extracting, screening, and dressing building materials from riverbeds and its nearby areas, is a mining activity. To prove this, it is possible to mention:

A deposit is an extraordinary accumulation of a mineral substance, which can be exploited with profit.



135

In river beds, floods areas, river terraces, and lakes, deposits of sand, pebbles, and boulders are generated, which in Argentina are called Aridos.

This kind of accumulations are called banks but not all banks constitute a deposit.

Most of mining deposits are considered as no renewable resources because its exploitation implies the taking-off of the material. Nevertheless, there are exceptions, salt mines and river or lakes sand and pebbles deposits are examples. In the last case, the resource is going to be renewable if the exploitation method is reasonable enough.

Sand and pebbles deposits are classified by the Code of Mines of Argentina as Third Category Substances, so they are owned by the terrain proprietary,

The terrain owner of riverbeds and lakes is the provincial government, but it cannot be a mining operator itself.

So private firms can exploit these deposits renting the area.

• These deposits share the same area with other resource owned by the state, the water.

• Most dams and other hydraulic works generate sand and pebbles deposits.

• Most of these deposits share the physical area with recreational or tourism installations.

• People are breaking apart between necessity to get cheap building materials and the other two possible uses.

• Mining sector does not take into account this item of its own industry.

• Hydraulic people does not understand mining business.



136

• Environmentalists consider this industry as a despoliation agent.

The beginning of agreement comes with the abolition of precarious permits and piracy, taking the actual despoliation to a sustainable process, more sustainable than the one of grinding quarry rocks industry. To do this, it is necessary to state certain basic parameters:

• It is essential to determine exactly what it is and what it is not a mining deposit, reminding some basic items:

Reserves Renewable bed Environment impact Investment and developing project

• Just this way the real deposits could be exploited, and this could be done taking into account adequate specific rules.

• Permits would include at least the following items:

Fluvial mining property taken as a real state, with the following features: Content a deposit considered this way by the authorities

after the parameters pointed out above. Extraction area Stock area Extraction and work time9 Exclusively responsibility zone: Despite of the fact that

extraction process is limited to the zone that outcrops, it is necessary that the operator has responsibility on

9 In the case of our province, this work time would be from April to October, months without floods and tourists.



137

watching out and controlling at least 800 m upstream and downstream the work area.

Adequate periods for an investment and developing project. (10 years would be fine)

Exploitation project: Method Yearly production quotes Well-defined stock area Employees Access Seasonal liberation of sector to allow other uses.10

Environment impact evaluation Control by different levels: Municipal Provincial

Monthly pays of rent rights and taxes CONCLUSIONS

It is very hard to try to prepare a mining project following the sustainable development paradigms, considering this one as: "Sustainable development is the one that satisfies the present necessities without compromising the ability of future generations to satisfy its own necessities."

The mere fact of extracting something that it is not going to be renewed, is facing specifically with this. Nevertheless, the river

10 In some cases it would be necessary that the operator prepares the area for tourist and recreational uses, cleaning beaches, dressing and freeing accesses, and getting

out every sign of extraction activity.



138

sand deposits case, as some salt mines, present exceptional conditions like the one of having renewable material.

But confusing laws problems, and national, provincial, municipal, mining, and water authority jurisdictional superposition, diminishes this exceptional condition.

Also, part of this exception is lost by a general concept of not including this activity into the mining industry and there is no logic reason to do this, besides the place where the activities are carried out.

These makes this activity precarious and clandestine, and this goes to delinquency, in the way beds that are not deposits, are despoiled ore taxes that are not paid or the worst of all, the way the natural environment is affected.

Sustainability of this activity is rooted over specific conditions of natural process, nevertheless, must be reassured and increasde by means of adequate legislation, specific control and users agreement. If nobody has the mood of quiting some privileges, it is not possible to accord.

BIBLIOGRAPHY

(2001) Sánchez Rial, José Enrique - Plan Director del Río Cosquín - Términos de Referencia. Inédito. Consejo de Centros Vecinales de la ciudad de Cosquín.

(1998) Cornaglia, Jorge y Galfré, Luis - Programa Áreas Mineras - Subprograma Aluviones: Área Copacabana. Inédito. Dirección de Minería de Córdoba.

(1987) Sánchez Rial, José Enrique et al. Mapa Geológico del Valle de Punilla - Mapa de Económico Minero. Inédito. Dirección de minería de Córdoba.



139

IDEOLOGICAL FOUNDATIONS OF SUSTAINABILITY INDICATORS

Dra. Sonia Osay, President

“Cordón Del Plata” (Silver String) Foundation [email protected]

INTRODUCTION

Since the Earth Summit, carried out in 1992 in Rio de Janeiro, the bases of sustainable development concept have been established.

There, a proposal with governmental recommendations was established to set up a legal structure, appropriate for the sustainable development concept that was named Agenda 21.

In Agenda 21, the 40th Chapter named “Information to make decisions” is about the compilation of information and the adoption of global indicators.

Even if there is a big amount of data, it is necessary to get more and several types of data in the local, regional and world sectors that indicate the situations and tendencies of variables such as the socioeconomic one, pollution, natural resources and pertinent ecosystems. The differences between the developed and the developing world have increased as for the data access and the use of it. This action damages the countries’ ability to make decisions about development and the environment.

Along this exposition we will see that to determine the most adequate sustainability indicators to the policy on sustainable development of a country, it is necessary to know clearly how the society wants to reach that sustainable development. To obtain it, it is



140

necessary to follow a long way, and that process of change can damage or benefit men, the environment, or the economic system.

Only some indicators can be adopted in a similar way by the whole wide world and others will not be useful to determine the activity sustainability of a particular country. The circumstances of that country may be completely different from those of another.

This is the challenge that scientists and intellectuals have: putting forward multi disciplinary development theories that permit solving the complex problem of sustainable development adequately, for the man and the society of a particular place and specific time.

SUSTAINABLE DEVELOPMENT AND SUSTAINABILITY

To talk about Sustainability Indicators, it is convenient to define the Sustainable development term. Sustainable development is a new archetype of social environmental and economic development that has began to spread in the whole word in these times.

It appears as a consequence of man’s visualization of his surroundings, which leads him to build a new relation between the society and the environment.

The term sustainable development is English and comes from the Norwegian Prime Minister Gro Brundtland’s report, “Our Common Future” .

Sustainable development means satisfying the present generation’s needs without affecting any future generation’s ability to satisfy their own needs.

In Spanish the translation brings about some difficulties, giving rise to two terms that do not fully keep the real meaning. One of them is “desarrollo sustentable” mainly used in Latin America and sustained by prestigious scientists like “Cano”, and the other is



141

“desarrollo sostenible”, mainly used in Spain, defended by Serrano Moreno and Martin Mateo among others.

Both terms are used indistinctly and we could say that in spite of the differences noticed by the scientists, the phrases are used as synonyms.

We can emphasize, nevertheless, that the Spanish terms do not get to reveal, the total dimension of the English term “sustainable development” which has a dynamic vision, not static. While it makes reference to a continuous process that we have to keep along the time, the Spanish terms have a more static connotation of conservation in it is condition. Once the sustainable development term is defined as a root term, we see that the sustainability term comes from this concept, going beyond the environmental issue, producing an interrelation between the natural sciences, social sciences and economics.

The sustainability is imposed as a global term that goes beyond the economics or the environment. It is a term that goes beyond the biological, economical and social systems, looking for their harmony or balance that permits improving people’s quality of life respecting the future generation’s right of having the same or better quality of life.

The big diffusion of this term and its different uses perhaps led to an emptiness of content, to a loss of its real meaning. To avoid the denaturalization of the term and its meaning, it is necessary not to lose sight of the protagonist of this relation, i.e. the human being.

We talk about sustainability in relation to any kind of activity; we talk about sustainable transport, sustainable economy, sustainable cities, etc.

We can talk about sustainability related to human activity as long as a relation between the biological, economic and social system appears. Always bearing in mind that man is the central nucleus, out



142

of whom we cannot talk about sustainability; it would not make sense.

It is not sustainable what results feasible from a physical or material point of view of standing the test of time, but from a human viewpoint. “If we assume, for example, that farming policy is sustainable, it is because it offers a sustainable harvest without degrading the soil, besides collecting criterions of an axiology position that ponders over man in relation with the environment”. Juan Rodrigo Walsh, Environmental Rights and Sustainability, La ley, Buenos Aires 2000, page 39th.

INSPIRING PRINCIPLES OF THE SUSTAINABILITY CONCEPT

To adopt a coherent and homogeneous criterion that is useful as a superior element of the policies that the countries must follow to tend towards the sustainable development, it is necessary to determine the philosophical bases that will inspire the sustainable development. This superior principle will establish the selection, determination and information use as sustainability indicator.

When we defined the sustainability concept as that thing that can be kept in time or that can keep one thing in its condition, we referred to the concept used in a material, restricted orbit. This strict conception, limited in a physical aspect of a determined problem, is not enough because the same essence of sustainability goes beyond the material dimension. However, this conception is adopted by a large number of scientists. Therefore, there are in it concepts such as load capacity, or maximum performance of a sustainable ecosystem, which in our opinion, are not sufficient. It is necessary to enrich this concept with a human dimension, interweaving the three principal elements of sustainability: the biophysical, the social and the economic dimensions.



143

If we take one of these aspects, we will fall in a relativism that can cause ominous consequences; the history of humankind is full of them.

For example “slavery is a social organization system case that, without including moral values, can sustain itself physically in time perfectly. Can we say that the development on a slavery base is sustainable? From the materialistic point of view, it is”. (Juan Rodrigo Walsh, Op. Cit, page 40)

An economic system based on slavery fits a material point of view of sustainability, because it is possible to keep it in time and produce a sustained increase. But an economic system based on slavery forgets one of the principal aspects of sustainability, i.e. man, since his rights are violated.

To our understanding, an adequate balance among the systems must be kept in order to achieve real sustainability

For example, we can have an economic reduction that leads to a detachment of reality, being perfect theories of laboratory, but inapplicable in practice.

The economic theory must be compatible with logic and math, with biology and psychology. As Max Weber says “not only ways of math reasoning, like it has happened during a long time, but also ways of biological reasoning have a legitimate place in our discipline. In each step, and in several points of interest to our discipline, we, economists, are and must be involved in fruitful interchanges of research and points of view with other fields’ workers” Max Weber, The irrationality problem in social sciences, tecnos 1985.

We will mention two approaches that perceive the sustainability principle in extreme ways, falling into reductions, as the above mentioned that bring about the opposite reaction, giving



144

place to a pendulum in the scientific thought. In each approach there are variables that make them more or less extreme.

THE ANTHROPOCENTRIC SUSTAINABILITY APPROACH

The inspiring principle of this approach is man. It refers to man as the only individual with superior intelligence, and moral entity in nature, and in consequence, the economic and social development, the protection and conservation of nature, emerge as a consequence of the protection of his own interests.

This approach has its origin in liberal thinkers like John Stuart Mill or Locke that considered the environment and the natural resources in relation to the utility that men can get from them to satisfy their needs.

However, this position with regard to the consequences caused by the anthropologic activity to the environment has evolved with the passing of time.

There is necessity of man’s tutelage, respect for the rest of the living creatures that inhabit the planet, due to the responsibility that the human being has for being the only rational individual able to protect or destroy the environment.

THE ECOCENTRIC SUSTAINABILITY APPROACH

The ecocentric vision puts man with the rest of the living creatures that make up the planet, on an equal plane having the mechanisms of the anthropologic activity that rule on them a fundamental importance.

The extreme ecocentric position can take man’s rights to controversial situations. For example, the humanitarian assistance to beaten communities may be the cause of ecological degradation. The



145

wellbeing of the whole system, may imply the reduction or elimination of these starving human communities to save the ecological balance of the system. JUAN RODRIGO WASLH, Environmental Rights and Sustainability, La Ley, Buenos Aires, 2000.

In this extreme ecocentric position there are those that consider that all elements in any ecosystem, for being part of nature, have an intrinsic value and are on an equal plane. For those who support this position, minerals are susceptible of own valuation, on an equal plane with other planet’s individuals, including men.

As we see, this is the pendulum of some scientists swinging back against the extreme anthropocentric position.

We must be prepared for this reaction, because it means a reduction of an aspect, of a complex problem, that gets out of the orbit of one science. That is why it is necessary to interact and get a multi-disciplinary study of sustainability.

CONCLUSION

In accordance with what is expressed in Agenda 21, in the developing countries there are difficulties to get and evaluate data that can be used as indicators of sustainability. Besides the indicators do not turn out to be completely exact, because they are incorrect or are applied badly.

It is necessary to develop indicators of sustainability that keep interrelated and integrated to the biophysical, the social and the economic dimension, to build a solid base to make decisions in all of the sustainable development levels.

We have to bear in mind that there will be indicators that can be applied on a world level in the same way. However some



146

indicators can result inappropriate or insufficient to measure the sustainability in a particular region.

This is due to several factors; one of them is the dramatic difference of comfort between the countries of the north hemisphere and the south hemisphere.

The developed countries have reached a satisfactory level of comfort, measured by calorie consumption, health, education, revenue levels, leisure time, etc. that the rest of the world does not have. Therefore the needs and requests of a developed society are completely different from the needs and requests of poor countries. The developed countries do not try to satisfy their basic needs anymore, but to create new consumption ways, generally unnecessary, and to satisfy them with goods and services of the highest quality and sophistication possible.

In the developing countries a lot of the population’s basic needs cannot be satisfied. The concern of these governments is to reach an economic growth, that allows to use a natural system to accelerate the development and the economic growth, without running out of natural resources, or damaging the environment. The poor countries are in a double dilemma. The urgent necessity of overcoming poverty, in very complicated conditions in a World that imposes unfavorable conditions for weak markets, such as the developing countries markets. On the other hand, they try to use the natural resources without degrading the environment.

For example, we have taken one sustainability indicator of the mining activity applied in the United States and Canada, which is “The mining closure”.

The application of this plan in the countries of Latin America is possible, with some modifications. Several countries like Chile are working in this way, which defines the mining closure in the following way.



147

“The principal objective of the mining closure is the prevention, the decrease, and the control of risks and negative effects that mining generates and continues showing on health and people security or the environment before or after the cease of the work operations or mining”.

The mining closure concept is a wide concept that involves a series of elements, economic, social and environmental that are taken into account just to finish the activity, but especially throughout the mining activity, in a particular region with all the variables that could affect it.

Mining closure is a sustainability tool applied with success in The United States and Canada that permits analyzing the environmental cost within the company operative costs. Since the beginning of the project and afterwards it demands financial guarantees adequate to the company to assure the fulfillment of the precaution.

This mining action tool permits to the company and to the community relating to each other in a friendly way, during the operative time. For this, it is important that the company takes into account that the community must be sustainable through time even after the mining closure due to mineral exhaustion or mine exploitation desertion.

The company can decide that after the mining closure a thematic park be developed to give to the community a sustainable tool, transforming the mine into a tourist center.

This is just one of the possible alternatives and it is presented as an example, of the mine’s destiny, when it finishes its operations.

The mining closure must contain an economic precaution of the activity that incorporates the environmental and social cost.



148

This will permit to the company facing up the social and environmental contingencies that the mining activity can bring about.

At the same time, the state and the legal framework that prevails in the territory must permit to the company developing its activity in the best market conditions.

BIBLIOGRAPHY

BANCO MUNDIAL, Informe sobre el desarrollo mundial 1999-2000: En el umbral del siglo XXI, Banco Mundial - Mundi Prensa, Washington, 2000.

BRUNDTLAND, GRO HARLEM, Our Common Future, Oxford University Press, Oxford, Reino Unido, 1987.

JORDANO FRAGA, J., La protección del derecho a un medio ambiente adecuado, Bosch, Barcelona, 1995

JUAN RODRIGO WALSH, Derecho ambiente y sustentabilidad, La Ley, Buenos Aires, 2000

JUNCEDA MORENO, J., Minería, Medio Ambiente y ordenación del territorio, Civitas, Madrid 2001.

LOPEZ RAMON, F., Estudios Jurídicos sobre Ordenación del Territorio ,Aranzadi, Pamplona,1995.

M. REDCLIFF Y D. GOODMAN, Environment and development in Latin America, the politics of sustainability, Issues in Environmental Politics, Manchester University Press, 1991

MARTIN MATEO, R., Tratado de Derecho Ambiental, Trivium, Madrid, 1995

MATEO MARTIN, R, Nuevos instrumentos para la tutela ambiental, Trivium, Madrid, 1994



149

MAX WEBER. El problema de la irracionalidad en las ciencias sociales, Tecnos, 1985

PAOLO BIFANI, Desarrollo sostenible, población y pobreza: algunas reflexiones conceptuales. En Educación ambiental y universidad, Universidad de Guadalajara, México, 1993.

PAOLO BIFANI, Medio Ambiente y Desarrollo Sostenible. IEPALA, Madrid, 1999.

QUINTANA LOPEZ, T., La repercusión de las actividades mineras en el medio ambiente, Montecorvo, Madrid, 1987.

UNITED NATIONS DIVISION FOR SUSTAINABLE DEVELOPMENT 27/04/2000, Agenda 21.

II. Mine Case studies



153

URANIUM MINING AND ENERGY – ENVIRONMENTAL, ECONOMICAL AND SOCIAL SUSTAINABILITY

INDICATORS

Lamego, Fernando; Fernandes, Horst; Franklin, Mariza

Instituto de Radioproteção e Dosimetria (IRD/CNEN) Av. Salvador Allende, s/n – Rio de Janeiro - RJ

ABSTRACT

The growth in the energy demand over the next decades has an important component related to the growth of the population in the same period. A significant part of this additional contingent of people will leave in the cities.Estimates indicate that half of the population in the Earth will leave in the big cities and, over 1.6 billion of people will have no access to electrical energy. The dependence on fossil fuels to provide energy will still be very large. It is estimated that only after the next 30 years there will be a stabilization in the energy demand caused by the the stabilization in the population growth.

Nuclear energy accounts for 18% of the total energy geneneration in the world with 434 power plants in operation. This production is supported by the production of 60,000 tons of U3O8/a. The future of nuclear energy will also determine the future of the uranium mining and milling activities. Presently, three scenarios are thought about until 2050:

1) Low demand scenario 3,390,000 t(U) associated to a medium global economical growth and termiantion of nuclear energy generation by 2100

2) Medium demand scenario 5,394,100 t(U) associate with a medium global economical growth and sustained but modest growth in nuclear energy generation;



154

3) High demand scenario 7,577,300 t(U) and high global economical growth with a significant development in nuclear energy.

The uranium resources can be classified according to their origin and production type. They include: Primary supply – mining and milling and; Secondary supply including the surplus represented by the stocked uranium (Highly Enriched Uranium – HEU and Mixed Oxides – Mox). In 1999 the primary and secondary supplies were estimated as corresponding to 58% and 42% respectively to the consumption of the existing nuclear power plants. It is expected that in 2025 the primary supply will account for 94% of the demand. The known uranium resources are estimated to cover 96% of the market based demand. However, due to the heterogeneous distribution of the uraniuim reserves and also due to the limitations in the production capacity not all the known reserves will be exhausted by year 2050. A deficit of 850,000 t(U) is projected. The challenge of the uranium industry will be to discover high graded uranium deposits that can be mined at low costs.

The sustainability of the nuclear energy as a whole and the uranium mining industry in particular is discussed in this paper based on three indicator types: economical, environmental and social. Generally speaking, nuclear energy is characterized by high capital costs and low marginal costs. The cost of the uranium ore – differently from what happens with the fossil fuels – constitutes a small percentage of the total costs associated to electricity generation. Because of that, and even considering discount rates of 5 to 10% nuclear energy will remain competitive in relation to other energy generation alternatives, sustainability indicators taken into account.



155

THE GLOBAL ENERGY CONTEXT

The projections of demand increase and energy production for next decades, as a function of the population growth (8 billion people in 2020 and 9 billion in 2050), have been supposed as the most probable scenarios which are not expected to suffer any significant change. It is expected a fast urbanization process until 2050, in which more than a half of the global population will be living in the great cities, while approximately 1,6 billion people won't have access to the electric power (MAY, 1995). This simulation shows that appropriate energy supply and effective control of natural assets are essential to overcome the perverse cycle of poverty and unsustainable consumption of resources and to improve the standards of living in the development countries as well. More and more the people are realizing how dependents we are from the available sources of energy that increases our perception about the environmental impacts caused by the strong dependence on fossil fuels, which should continue to dominate the global energy budget at least for more some decades.

The global economy has showed not be able to contain the demand pressure, because the macroeconomic processes are dominated by market values that are incapable to carry out efficient regulatory action to stabilize, in a sustainable way, the offer/demand relationship. On the other hand, the renewable sources of energy are still faced as solutions domestic or local, not could compete with the conventional sources of wide scale, except where they can be accompanied of strong subsidies. On the other hand, the renewable energy sources are still faced as domestic or local solutions that could not compete with the conventional sources of wide scale, except where they can be accompanied by strong subsidies. It was evaluated that renewable ones will contribute in the range between 5 and 10% of the world offer, respectively in 2020 and 2050. Thus, one offer gap of energy is expected for the next 30 year, after which we should attend a relief in the tensions due to stabilization of population



156

growth, improve in energy use efficiency and development of new technologies (ROGHNER & KHAN, 1998).

THE FUTURE OF THE NUCLEAR ENERGY

Actually, nuclear power reaches around 18% of the global production of energy generated by 434 nuclear power plants, operating in 31 countries, that provide 2400 TWh of electric energy and consume 60.000 tons of uranium per year (OECD, 2000). Although its use in large scale has being criticized by some governments, specially from the European Community, the great majority of them believes that the role of the nuclear energy has to be stabilized with the aim to prepare future expansions. The nuclear industry is relatively young and, for this reason, has still some problems to be solved: long term operational safety; treatment and disposal of wastes; the feeling that is an activity involved with secret issues and because of that is not democratically controlled. So, its future depends on:

- # become completely transparent;

- # be fairly regulated and controlled;

- # demonstrate safety concern and economical feasibility;

- # solve waste disposal through cost-effective techniques of management.

Analysis of Uranium Supply Until 2050

The table 1 shows the categories and cost ranges of current uranium production, while the projections for production of uranium in agreement with the accumulated demand and the principal scenario of global and sector-specific economical development can be seen as the following:



157

1) scenario of low demand: 3 390 000 (tU) with medium economical growth and finish of the nuclear energy production up to 2100;

2) scenario of medium demand: 5 394 100 (tU) with medium economical growth and sustained growth of the nuclear energy;

3) scenario of high demand 7 577 300 (tU) with major economical growth and significant development of the nuclear energy.

The world uranium reserves can be classified by the source (primary and secondary) and production basis (monopoly or market):

- Primary supply: mining and milling

A) Production non-based at the market: CIS (Kazakhstan, Russian Federation, Ukraine and Uzbekistan); China and National Programs (Brazil, Czech Republic, France, India, Pakistan, Romania and Spain).

B) Production based at the market: (USA, Australia, Canada).

- Secondary supply: surpluses, reprocessed and tailings

A) HEU (Highly Enriched Uranium) surplus of the defense inventories (estimated contribution of 249 500 tU), commercial inventory stopped by the western countries (estimation of 168 500 tU) and Russian inventory whose supply comes from the consumption of natural uranium and " low-enriched " that changes according to the supply of HEU (estimation of 47 000 tU).

B) Mox (Mixed OXide fuel ") with consumption projected for a growth up to 2012, after that the use will be stabilized in 3600 tU until 2050 and RepU (Reprocessed Uranium) with growth up to 2016, after what is arrived to a stable value of 2500 tU up to 2050.

C) Depleted Uranium (mill tailings): the milling of this material has your end foreseen for 2011 after having reached a total cumulative contribution of 43 000 tU.



158

In 1999, the primary and secondary supply was appraised as reaching respectively 58% and 42% of the uranium demands for the power plants, while it is expected that the primary supply can cover 94% of these needs in 2025. Besides, a growth is projected for the market-based production, which should increase from 45% in 2000 to 86% in 2025. The known Uranium reserves are enough to supply about 96% of the production based at the market (IAEA, 2000). However, due to geographic distribution and limitations in the production capability, those reserves should not be exhausted until 2050, causing a cumulative deficit of about 850 000 tU. Depending on the observed scenario, this deficit can increase up to 3.5 times. The challenge for the uranium industry will be discover large and low cost deposits to fill out the foreseen deficit. On the other hand, one of the principal threats is the fact that the secondary sources of uranium supply reduced the market prices, which leads to slow down the development of new projects. The development time of a new project can take among 15 to 20 years. During this period the increase of the market price can turn possible the discovery of low cost reserves. Besides adjusting to accomplish the requirements of the globalized market, the uranium industry should also demonstrate that is capable to produce it according to acceptable practices in the social and environmental fields.

Table 1: Categories and cost range of Uranium Production

Source: IAEA/NEA Joint Report (1999).

> 50> 130Very High

> 30 – 50> 78 – 130High

> 20 – 30> 52 – 78Medium (high)

> 13 – 20> 34 – 52Medium (low)

< 13< 34Low

$lb.U3O8$/kg UCost range



159

MINING AND SUSTAINABLE DEVELOPMENT

Mining is first and foremost a risky business, where the companies chase the best and most economically viable mineral deposits. The impact of mining development on the socioeconomic and political milieu is far reaching, and the implications are felt far beyond the performance of the sector. However, it could only be regarded as a sustainable one, if in order to meet their present requirements do not compromise the needs of our children and future generations. Equally, it should be able to internalize the social and environmental costs from the operation, without receive any kind of subside. The gap between people’s expectations and mining are often difficult to bridge. One successful initiative is reinvest one portion of the profits in another kind of development, like public health and education.

Thus, the mining industry is taking sustainability on stride. A group of leading mining companies is launching a global independent analysis titled “The Global Mining Initiative (GMI)” to explores how mining can best contribute to the transition to sustainable development. The GMI also comprises a multi-stakeholders engagement process (Minerals, Metals and Sustainable Development – MMDS) to build dialogue at global and regional levels and identify critical areas for the industry to act on

Uranium is widely distributed in the earth’s crust and oceans where it has an average abundance of 2 ppm and 5 ppb, respectively. The average concentration required for economic recovery depends, among other things, on the market price of uranium. In the recent years the uranium market price has been severely depressed and only higher grade deposits capable of lower cost production have continued to operate (IAEA, 2000).

Mining and milling ores usually involves the disruption of the land surface, and may impact both surface and underground water bodies. Therefore, the environmental impacts are potentially broader



160

and more diverse than other steps of nuclear fuel cycle. Two principal pathways by which contamination may reach the environment from uranium mining and milling operations are air and water. The monitoring of the affected environment is undertaken, to ensure that environmental impacts are adequately controlled within allowable limits. Such monitoring normally includes sampling of air, soil, water, plants and animals consumed in the human diet.

There are three main types of waste arising in mining and milling operations: mine wastes (rocks), milling wastes (tailings) and waste water. Each type of waste is subject to an appropriate management strategy.

Mine waste consists primarily of waste rock and low grade ore that must be removed to access the ore. For the most part this material presents essentially no risk of environmental contamination and in is usually disposed in piles around the mine. In some cases, waste rock contains minerals, including sulfides, that may be leached by water passing through waste piles. Oxidation of sulfide minerals is the process which contributes to the mobilization of metals from mine waste to the environment.

The primary milling wastes consist of tailings. The overriding long-term environmental issue associated with uranium mining and milling is the effective isolation from the accessible environment of long-lived radionuclides that readily migrates from uranium mill tailings into life-support systems and food chains and have significant biological half-lives or residence times. To prevent undesirable constituents in the tailings from leaching into the environment an engineered containment should be constructed for long-term disposal of the material. In the past some operators disposed of tailings at sites where little or no consideration was given for the containment of the material and performance assessment of the impoundment. While this practice is no longer acceptable, some large environmental and technological projects involve evaluation, long-term stabilization and



161

close-out of these formerly used sites. Today, the preferred option, where indicated, is to return the tailings to the void where the ore was excavated (OECD, 1999). This provide for tailings management during and after the life of the facility, thereby limiting the long-term environmental impact.

Waste water from mining and milling operations that is not recycled to the mill must be either contained at the mill site or treated before discharge to the environment. Standards have been established for maximum concentrations of specific contaminants in discharged water. Generally, radium is one of the critical radiological contaminants for determining whether treated water meets the limits for release to environment. Radium is relatively easy removed from water when appropriate technology is used. There are several other critical non-radiological trace elements that may present more of a problem than radium.

Uranium mining and milling is moving towards sustainable development in the sense that the impact on the environment of current and future projects is being minimized. Compared with the environmental impacts of other energy sources, the effects of uranium production are relatively small. Implementation of best practice approaches in planning, operating and closing of uranium production facilities is resulting in an effective reduction of the environmental impacts. Thus, future generations will be able to use large parts of decommissioned areas for some of their needs. In addition, mining and milling of uranium release relatively low amounts of carbon dioxide and other greenhouse gases which contribute to the global warming. Therefore, uranium production joint with nuclear power have much less liability to environmental problems (e.g. acid rain, aerosol, organic pollutants, etc.) than the burning of fossil fuels for generation of electricity.



162

SUSTAINABILITY INDICATORS

Looking at nuclear energy from a sustainable development perspective implies analyzing its characteristics in terms of their economic, environmental and social impacts, both positive and negative, in order to assess to what extend and under which conditions nuclear energy may contribute to meeting the goals of global sustainable development. At the present level of scientific knowledge, it seems relevant to begin with indicators appropriate for each activity and impact, and then work toward aggregating them in appropriate units. A key challenge at this level is to identify the most important elements and focus attention on them.

The task of assessing progress toward sustainable development and comparing it across different energy sources (including efficiency as an equivalent source) is a difficult one. Indicators would be useful in the context of making electricity generation choices once energy and electricity needs are better understood in a sustainable development perspective. This suggests that indicators should be developed for the purpose of eventual comparisons. Table 2 shows the framework of the most relevant nuclear power indicators, covering their economical, environmental and social dimensions.



163

Table 2: Checklist of sustainable development indicators (nuclear power)

Economic Indicators Environmental Indicators Social Indicators Cost valuation: # capital ($/kWe) # marginal ($/kWh) # external ($/kWh) Discount rate ($/$)

Waste management: # solids # liquids # gases *volume (m3/kWh) e activity (Bq/kWh) Natural resources management: # renewable ($/kWh) # non-renewable ($/kWh) Fuel use (tU/kWh)

Dose to the public (Sv/kWh) Public Health ($/kWh) Jobs (no/kWh) Education (no courses) Technological Innovation/Improvements (patent/kWh)

ECONOMICAL DIMENSION

The task of finding a common indicator for valuing natural and human assets is not na easy one, and economic methods might not capture the real significance for society, in a sustainable development perspective, of goods and services for which there is no market at present. The goal of explicit valuation is to make the factors going into decision making more transparent. Using a common unit, or a few summary of indicators, forces examination of different impacts within a common framework. Decisions may then be made in a coherent and systematic way, with the hope they would lead to better overall outcome. Monetary units are well understood and already functional where markets exist. They have the advantage of reflecting real preferences, which provide a useful basis for extending them to non-market entities. Valuing impacts is a mean to eventually



164

internalize their costs and enhance the efficiency of market mechanisms for supporting sustainable development.

In the mining sector, it is already obvious that when social and environmental costs are not internalized, they are imposed on the local community. Mining should not be undertaken at the expense of the community’s human life support system and short-term mining gains should not translate into long-term human pain. So that, an indicator of sustainable economic development would be the capacity of a mining venture to internalize its own social and environmental costs without direct or indirect subsidies. In the event that mining is the only economic development prospect for a particular region, as is the case in many developing countries, it should be soundly planned to support both sustainable development for the community at large, and profitable operations for the corporation.

The discount rate is an indicator that measures how much more we value things right now than in the future. A zero discount rate implies that the present and the future are valued equally, while high rates mean a strong preference for the present. Cost estimates that serve as a basis for decision-making depend strongly on the discount rate adopted. Low rates enhance the competitiveness of capital-intensive technologies such as coal and nuclear energy. Sustainable development essentially tell us that all our activities have long-term implications, and they should all be managed with an eye to the future.

Nuclear energy is characterized by high capital costs and low marginal costs of generating electricity. The cost of uranium ore itself, in a opposite way of fossil-fired electricity, constitutes only a few percent of overall cost of electricity from nuclear energy and, therefore, even a significant price increase for uranium would not have much impact on the cost of generating nuclear electricity. With a discount rate between 5 and 10 %, nuclear power plant of current



165

generation would compete favorably with other electricity production alternatives (ROGNER & KHAN, 1998).

Future financial liabilities associated with facility decommissioning and radioactive waste disposal could require subsidies if adequate provisions were not set aside by the nuclear industry. Since decommissioning and waste disposal occur long after nuclear electricity is generated, the economic actor responsible for the facility and its waste may not exist when the funds will be needed. SOCIAL DIMENSION

Table 3: Technological improvement for each step of uranium production .

Uranium Production Steps Technological Improvement Underground Mining

Remote control operations; Low-temperatures concrete act; Waste pile stabilization; Frozen Ore; Borehole mining

Open pit mining Large trucks for ore transportation ; Electrical vehicles (reduction of fossil fuel)

In Situ Leaching (ISL) Automated systems; Directional survey; Horizontal wells

Milling Radiometric sorting; Filters; Plant design optimization

Tailings Disposal

Pit-Lake disposal; Paste Disposal

Rehabilitation and decommissioning of contaminated areas (groundwater)

Metal immobilization with reducers; Reverse Osmosis; Geochemical barriers; Bioremediation



167

ENVIRONMENTAL AND SOCIAL PERFORMANCE INDICATORS AND SUSTAINABILITY MARKERS FOR TWO

MINING GROUPS IN COLOMBIA

Elkin Vargas Pimiento

Mining and Metallurgical Engineer, Ms. Economic Sciences Associate Professor, National University of Colombia

ABSTRACT

Today mining companies suffer strong pressure from organizations such as environmental groups, multilateral agencies, national governments, mining associations and the international media, to comply with “good environmental practices” and to face the new and important challenges imposed by the exploitation of deposits, of increasingly lower-grade ore, deepness and difficulty, and to integrate community issues in their decision making process. It is therefore, advisable, for the mining industry to adopt the philosophy of sustainability as its main goal for strategic planning.

Even conceptually, many problems are posed by the concepts of sustainability and sustainable development, but none is more limiting than the absence of operational measures by which they can be implemented and made operational in a specific project.

Nevertheless, the article seeks to show the contribution that the development of environmental and social performance indicators and sustainability markers in the mining companies has in achieving sustainable development. This is especially useful in a developing country like Colombia, which has adopted a sustainable development economic model and where the mining sector has lead exportations and economy, but has also been responsible of big environmental damages and important social conflicts. The paper also tries to integrate the concepts of intergenerational equity and improvement of



168

welfare in the current generation, according to Howe’s focus (1979) about maintenance of resources as a whole (renewable and non-renewable) rather than the physical stocks of individual or aggregate resources. This investigation also reports the existence of technologies and methodologies, e.g. those recommended by the Federal Environmental Agency of Germany (1997), to design integrated sets of proven biophysical, economic and social indicators, including the conventional indicators of the mining process: input-outcome, training, well-being and participation, to be used in performance evaluation and optimization, cost-benefit analysis and strategic decision making, participative planning and progress monitoring, according to Alyson Warhurst (1997) in the Mining and Environmental Research Programme of the Bath University. This approach and methodology is being applied to two types of mining activities in Colombia: the extraction of gravel and sand in the alluvial plains of the Medellin river and the exploitation of coal in the coal basin of Antioquia.

1. SUSTAINABILITY MARKERS

When the concept of sustainability is applied to mining projects, several key questions come forth: Can environmental capacity and environmental consumption be measured to determine whether they are being sustained in the different phases of the mining process? Is it possible to identify and measure sustainable levels of mineral deposit conservation? What can be done if sustainable levels are improperly estimated? Are private benefits compatible with social interests in achieving sustainability goals? Are mining activities consistent with sustainable development? Answers are difficult but indicators and their implementation in the mining industry can be a powerful tool to improve the environmental and social performance of mining companies, to report their advances in a comprehensive and measurable way, and to determine whether



169

undertaking an extraction activity is in the social interest, and if so, whether the project entails the best use of society’s productive resources. This has a special importance in Colombia where non renowable natural resources belong to the State, and the State conceeds the deposits to private companies for the benefit of all the individuals.

For a specific mining project, the use of indicators is useful to know for example if its environmental impact is less than that of a similar project, or if the life of the deposit is being extended, if energy consumption and use of natural resources per ore unit exploited are being decreased, if the management model is more participative than that used by other companies in other projects. It is possible to design techniques to develop indicators for groups of users and make them operative in the mineral and metal industry. The groups of users have varied and complex activities, but the use of the same indicators facilitates the reports of their technical, social and environmental corporate performance, helps to anticipate negative effects and to structure a social responsibility proactive approach in the operational and corporate levels, to identify weak points and improve possibilities, all in order to optimize environmental and social performance and to organize sustainable markers that later will be confronted and presented to the stakeholders.

Indicators can usually be classified in three groups depending if they describe an environmental impact of mining activities (environmental performance), the mining management or the external environmental CONDITION. In the first group we find material and energy income-output indicators that are used in mining companies that want to go towards sustainability. The typical examples are: global energy consumption, waste per unit of product, number of relevant environmental facilities and total transportation volume.

The stages to conform the framework needed to establish indicators are: design of a system of indicators to obtain information,



170

application, review, measurement and derivation of objectives. The Federal Environmental Agency (1997), recommends some basic principles for this process: comparability, objective orientation, balance, continuity and clearness.

Environmental indicators are usually related with physical amounts, but it is possible to simultaneously develop indicators related with costs, due to the increase that budgets for environmental protection have had in the last few years. For the extractive industry it is possible to forecast that in the first stages of the stablishment of indicators, there will be no data related with amounts, and therefore it will be necessary to consult data related with costs. This situation is common in the studied cases where the mining companies did not know the volume of sterile per ton mined, but they knew the cost of surface material disposal. They did not know the fuel used in mineral transportation to storage centers but knew the total expenses for this item.

For small and medium scale mines exploited by underground methods, the income-output indicators are more important because they induce the monitoring of efficiency in the consumption of energy and other natural resources, e.g. water, wood, labor force. Furthermore the verification of waste and emission reduction per ton of mineral are possible. Additionally the use of indicators is essential to show the improvement of health and safety conditions in underground operations. In surface mining the indicators have more importance in the examination of relevant environmental facilities, vegetation and soil losses, ground and rock removal, landscape disturbances, total transportation and other parameters related with the life of the mineral deposits.

Independent from the tipes of users, the type of mines and the form of exploitation, according to an economic concept, mining is a temporary use of the ground and the indicators related with the quality of environmental restoration of the areas affected by mining it



171

will be of great help to guarantee an utility function or a non declining social welfare. This is consistent with sustainable development.

According to the framework previously determined, the guide for this investigation was the economic model “Economic and Environmental Stocks and Flows” (Pezzey, 1992) that considers both the accumulation of capital and the flow of natural and environmental resources in the obtention of products (through a Cobb-Douglas production function) where the environmental services and environmental productivity are combined with the optimal depletion of the resource according to the private company. This model suggests that if non-renewable resource inputs are essential, then inadequate technical progress and open access to environmental resources may be the key factors to unsustainability. The result should not mean excesive social depletion rates and therefore low sustainability. 2. SUMMARY OF CHARACTERIZATION

2.1 Technical Characterization: Exploration, Mining and Processing

2.1.1 Data, Information and Facts

Level of knowledge of the mineral deposit to adjust technical studies and extractive operations: surface geology, geophysical and drilling works, metallogenic hypothesis and verification data, mineralization patterns and morphology of mineral deposit, sampling, assays and calculation methods, grade average or quality of products and by products, proven reserves, ore-sterile ratios, stripping ratios, annual production etc.

After having the information about the mineral deposit it is necessary to obtain technical data related with mining and processing: mining methods, geometric, geotechnic, ecological and economical



172

constraints, engineering properties of rocks, haulage and storage methods, ratio of size reduction, crushing, grinding and concentration methods, power and water systems, equipment and results, sterile, wastes and tailing disposal, transportation of mineral to markets, incomes, products, employee training (number of workers and training level).

After crossing the previous information one can proceed to determine the operation economical data: initial capital investment, capital and operation costs, interest rate, income, internal return rate, sensitivity and risk analysis, inflation, exchange rate, taxation, etc.

2.1.2 The Sustainability of the Mining Process

This aspect means increasing the life of the mine by adding reserves through exploration, improvement of mineral recovery, decrease of ore losses and decrease in dilution. The general environmental effects caused by two analyzed groups are: in the gravel and sand exploitations, the destruction and alteration of vegetation and the natural drainage patterns, changes in the use of top soil in the mining areas, erosion of stripped areas, accumulation of soil and excavated beds that cause sediments, pollution, possibility of acid drainage, dust, noise and vibrations. In underground coal mining the effects are: piles of material on surface with erosion potential and sedimentation hostile to natural vegetation and generally unsuitable for any immediate land use, and acidification of water currents, combustion of piles, drainage due to the removal of soluble minerals, acidification of water, mining subsidence, gas emissions, dust, consumption of wood and fuels, rock loosening and inadequate sterile and spoil disposal, and all aspects related with adequate pillar support necessary to avoid mining subsidence on surface.

2.2 Biological and ecological aspects

For the characterization we must consider as analysis category the “biological resource basis” with a mayor element ante



173

three substratum that support this element: biological diversity, soil, measurable in erosion and physical chemical transformations, and water, measurable in changes of the particles in suspension and the physical chemistry of these particles and toxic gases (CO2, NOx, SOx, etc.)1

2.3 Social and Cultural Aspects

The evaluation and comparison of the social and cultural situation before during and after the exploitation must be well known. The history of the zone is needed: incorporation of mining in the region, development process, assessment of social and cultural changes, life conditions, population discriminated by sex, age, and location in relation with human settlements and exploitation sites, population growth rates, including those induced by the mining activities, education levels and qualification for mining employment, health conditions, occupation and engagement of the community in mining activities and changes introduce by operations, income levels, life quality and recreation. It is necessary to obtain data mainly related with educational, cultural, health and entertainment infrastructure. As for communal and local organizations, the following information is required: role, working fields, experience in participative processes, interaction with local administrations and with mining companies.

It is also necessary to know who the stakeholders are in the area before and after the exploitation and what their role is, traditional conflicts and those that arise with the presence of the company, their development and solution, and how they articulate with other

1 Even though the definition of biological diversity adopted by the Rio World

Conference in 1992 was “the variation of living organisms of any origin”, it will not be considered due to the difficulty of its quantification and because it arises the problem of biological evolution. Therefore the traditional idea of biological diversity is used, this is, the number of living species in an area at a certain moment.



174

conflicts. Finally, we need to know the cultural values shared by the population, how customs have evolved with the mining activities, and what those changes have been, how people relate themselves with the area, specially migrants, what has changed and how the landscape and the cultural, environmental, historical, archeological and architectural patrimony have evolved.

2.4 Legal Aspects

It is necessary to define the mining company, its degree of legal formality, type of society, corporate purpose, domicile, and members. As for the administrative structure, we have to know who represents the company in the exploitation area, department or person in charge of relations with the community and with local authorities, social organs and members, chief of personnel, workers and their qualification, unions, social security, salary scale, internal labor laws, industrial security laws, accident statistics, occupational health programs, reports in the different levels of the company and information for the employees.

In the mining and environmental aspects we should know the validity of the mining titles, type and size of the exploitation, reports, royalty payment, controls imposed by the mining authorities to the operations, environmental authorizations, company’s engagement to comply with environmental laws.



175

2.5 Methodological approach

Figure 1: Scheme

The previous theoretical and procedural framework was used to obtain the technical data and information of the two groups of users. Immediately after, a system of the most applicable indicators was arranged and fed with the initial data in order to start experimentation. Students working in their graduation thesis as mining engineers from the University of Colombia did this task.

3. THE EXTRACTION OF GRAVEL

3.1 Local Geology

The Medellin River and its affluents have deposited placers that have formed long and narrow alluvial plains with various levels of terraces that reach heights of 2-25 meters with respect to the actual



176

levels of the river. Igneous rock highly disintegrated on clay and sand grounds and metamorphic rocks of easy weathering form the alluvial plain and non consolidated deposits formed of sand and gravel. In the boulders found in the alluvial plains quartz, anphibolites, dunites, gneiss and green rocks can be identified.

The flooding plain is on both sides of the river except in areas with high slopes. The statigraphic column is: 0-2 m: gray to light green clays with organic material. It has thin soils of 1-5 cm consistent with an active alluvial plain. 2- 4 or 5 m: the first 0.4 m are formed by poorly consolidated brownish gray gravel in a sand and clay matrix of up to 30%. The rounded boulders have maximum sizes of 0.15 to 0.2 m. Underlying are light to gray gravel with a lesser percentage of sand in the matrix. From 4-5 m up to x meters there are various beds of sands, clays and organic material and beds of brownish yellow, black and green sands. All these are frequently graded.

3.2 Extraction and Processing

Mining is done by surface mechanized methods for a production of 130.000 to 300.000 m3/year.



177

Table 1. Environmental impact identification of extraction of gravel and sand 2

2 Diaz and Velásquez. Gradution Thesis in Mining Engineering. Faculty of Mines,

National University, Colombia, 2002.

OPERATIONS MINING

ACTIVITIES

Over burden Remo

val

Stripp ing

Loading and

Transpor tation

Storage Process ing

Closu re

Mining resource

Top soil Water Surface Under

ground

Vegetation Atmosphere

Fauna

Landscape and morphology

Infrastructure Health of the workers Economic and social resources

Important alteration Moderate alteration Slight alteration



178

Table 2. Mining Operations and Residual Discharges3

INPUT PROCESS OUTPUT Energy Fuel

Overburden removal

Air Emissions: Dust and combustion gasses. Wastes: Steriles, vegetation and topsoil. Noise.

Energy Explosives (occasionally) Fuel

Mining

Air Emissions: Dust and combustion gasses, Noise.

Energy Fuel

Loading and transportation

Air Emissions: Dust and combustion gasses, Noise.

Fuel Storage Air Emissions: Dust and combustion gasses Noise.

Energy Water

Processing Air Emissions: Dust, Solid Wastes: Mud from the processing plant. Waste Water; Noise

Fuel, Spoil piles, mud, steriles

Filling

Air Emissions: Dust and combustion gasses Noise.

3 Idem.



179

3.3 Impact Qualification

3.3.1 Impact Qualification Criteria

Generic nature of impacts: effects are classified in favorable and unfavorable.

Incidence: direct or indirect impacts on the environment, economy and society.

Duration: temporary or definite

Spatial projection: extended or focalized.

Proximity to source: distance between the mine and the place where impact is revealed.

Reversibility: impact is reversible or not.

Recuperation ability: the same as reversibility with the possibility of taking corrective measures that enable recovery of initial conditions (recoverable or not)

Probability: chance of having the impact. It can be high, medium or low.

Valuation: depending on the characteristics of the impact and if corrective measures are taken by the mining companies the following degrees of valuation are used: compatible, moderate and severe.



180

3.3.2 Qualification Matrix

Characteristics of the impacts

Probability of occur rence

Valuation

IMPACTS Favo

rabl

e U

nfav

orab

le

Dire

ct

Indi

rect

Te

mpo

rary

Pe

rman

ent

Foca

lized

Ex

tend

ed

Clo

se to

the

sour

ce

Far f

rom

the

sour

ce

Rev

ersi

ble

Irre

vers

ible

R

ecov

erab

le

Irre

cove

rabl

e H

i gh

M

ediu

m

Low

C

ompa

tible

M

oder

ate

Seve

re

Particulate material

Noise

Water contamination

Loss of vegetation

Impact on fauna

Soil loss

Slope instability

Landscape and morphology

Depletion of mineral resource

Infrastructure

Social and economic



181

3.3.3 Impact mitigation

Even if impacts are shown in the previous matrix the companies established corrective measures to mitigate or prevent most of those impacts. According to the field valuation done by Diaz and Velasquez (2002) the summarized measures are:

- Filling of exploited areas: done technically and economically to reclaim areas e.g. for construction of warehouses. Filling material comes from stripping works, plant tailings, clay lenses and solid wastes.

- Forestation programs: to establish protective barriers against dust and to improve landscape. Eucalyptus and pine trees are planted.

- Noise management: Additional to tree barriers, screens and crushers are covered to reduce noise on its source.

- Dust management: Controlled with water spray on roads. Truck tires are washed before leaving for the markets. Control of dust is not considered in the design and construction of processing equipment but covering of sizing and crushing equipment helps mitigate impacts. Sizing is done under humid conditions. Main dust sources are crushers and belt conveyors.

- There are no inhabited areas next to the mining sites. The settlements are limited to small communities close to mining title boundaries. The eventual negative impacts for the communities are dust, road damages, noise and emissions.

4. FORMULATION OF INDICATORS

The formulation of indicators was done after having the inventory of environmental impacts, the analysis of environmental costs and the characterization of the environment. Then the key points to structure indicators were defined. These indicators should



182

lead to a continuous improvement of processes and efficient use of natural resources and environment.

In each case a viability study of the implementation of the initial indicators was made. This study confronted the difficulty of design and its comprehension, financial and practical applicability in the context of existing resources in each company, the possibility of measurement instrument acquisition and experimentation to analyze and generate global indexes about results and progresses.

The indicators formulated for the two groups of users are:

4.1 Group 1

Three companies extracting gravel in the alluvial plains of the Medellín River: Conasfaltos S.A. Procopal S.A., and Agregados del Norte.

Environmental Performance Indicators

Allow the assesment and control of environmental impacts. They can be used by any company as a starting point.

Input Indicators:

Energy Indicators: Total and specific uses o electric and fuel energy and their costs.



183

Table 4. Energy indicators

Water consumption: The analyzed companies have their own water source from the abatement of river’s water level. The costs during exploitation are due to the pumping system used and are included in the energy indicators. Water indicators are total and specific consumption of water. The volume of water coming out from the plants determines the total consumption of water in processing plants.

CONASFALTOS S.A.

PROCOPAL S.A.

AGREGADOS DEL NORTE

Mineral processing

25.100 m3/month 22.800 m3/month

9.300 m3/month

Fuel consumption

3.540 Gal (141.290 kWh)

2.340 Gal (93.342 kWh)

1.246 Gal (49.702.9 kWh)

Specific consumption of fuel oil

0.14 Gal/m3 0.13 Gal/m3 0.13 Gal/m3

Electric power consumption

142.540 kWh 47.520 kWh 19.200 kWh

Specific consumption of electric power

5.7 kWh/m3 2.1 kWh/m3 2 kWh/m3

Total consumption of energy

283.830 140.862 68.902.9

Total specific use

11.1 kWh/m3 6.2 kWh/m3 7.4 kWh/m3

Share of electric power

50.2% 33.7% 27.9%

Share of fuel 49.8% 66.3% 72.1%



184

Conasfaltos S.A. 2600 gal/min Procopal 800 gal/min Agregados del Norte 1600 gal/min

Output Indicators:

Solid waste: relate the environmental goals with the economic advantages of the use or treatment given to waste (mud, steriles, etc.). The indicators are: total waste, relative amount of mud in processing, relative amount of sterile in exploitation, amount of plastering sands recovered in sand washing. Conasfaltos had this data: total amount of waste: 2000 m3/month, relative amount of waste: 8%.

Air emissions: relative amount of particles, relative emission of gasses, noise. The following data was obtained from Conasfaltos4:

Emissions of particles: dust

0.58 kg/ton (of excavated material)

0.75 g/km (transportation in trucks)

2.0 kg/ton (processing: includes unloading in bin)

Gas emissions

14.23 g/km (exploitation: Sox, Co)

27.26 g/km (transportation on trucks: Sox, Co, Nox, CxHy)

Noise emissions:

Exploitation:

Bulldozer: 75-95 dB at a distance of 15.2 m.

Retroexcavator: 75-95 dB at a distance of 15.2 m. 4 Ministry of Mines and Energy. Form filled out by Conasfaltos to present the

environmental impact declaration.



185

Dumper: 88-97 dB at a distance of 15.2 m.

Processing:

Plate crusher: 90-100 dB from the operator’s position

Cone crusher: 92-98 dB from the operator’s position

Belt conveyor: 82-113 dB from the operator’s position

Screen: 70-81 dB at a distance of 15.2 m

Chain pump: 70 dB at a distance of 100 m

Loading and Hauling:

Trucks: 70-90 dB at a distance of 15.2 m

Waste Water: amount of water after processing, relative amount of water, mud concentration, mud sedimentation efficiency.

Infrastructure Indicators: are referred to the environmental impacts caused by the equipment and facilities. They are number of available equipment, percentage of area used for processing, number of available processing equipment, environmentally and health tested and proven equipment, crusher availability.

The area used in processing is:

Conasfaltos S.A. 3000 m2 Procopal 2000 m2 Agregados del Norte 1000 m2

All companies have an 80% availability in the number of machines.



186

Environmental Management Indicators

Show the efforts made by the companies to reduce or correct environmental impacts. Demonstrate the performance of organizational measures.

System Indicators: Show the level of compliance of an environmental management system or of its components.

System Implementation: departments with environmental programs, degree of goals reached, management of environmental permits, costs of implementing the system.

Legal Matters and Complaints: represent how the company complies with the environmental legislation. They are: complaints presented due to environmental pollution, water pollution, air pollution or noise, complaints considered by the environmental authorities, environmental sanctions and fines, cost of sanctions and fines.

Environmental Costs: Help in the search of cost reduction goals through input saving programs or waste treatment programs. They are investment in technological environmental improvements, share of environmental investments, operative costs of environmental protection, savings in costs with the implementation of environmental improvement.

Functional Area Indicators: Show the involvement of workers in environmental programs.

Training Staff: Determine the degree of instruction workers have in environmental issues. They are: degree of environmental instruction per employee, environmental instruction per employee responsible of environmental issues, number of workers instructed in environmental issues.

Health and Safety: Show the expenses in sanitary and accident prevention and describe the complimentary aspects of the mining



187

activities related with health and safety of workers. They are labor accidents, work days lost with accidents, labor health cases, expenses in prevention. For Procopal we have this data: 25 accidents causing leave days and 394 accident leave days/year.

Other environmental management indicators without any data yet are: purchases and externa communication.

Environmental Condition Indicators

Provide information on the quality of the company’s environment surrounding. Soils in the exploitation area are typical tropofluvent type corresponding to medium temperate thermal floors, Girardota association, deep and moderately deep, poorly drained, fine texture, and regular structural development in the first horizons. Low fertility, slightly acid, organic carbon irregularly distributed and low in phosphorus. Plains of 0-3%, with no erosion, deep ground water level tables in summer and occasional flooding. The alluvial plain is formed of igneous rocks deeply weathered over residual soils and metamorphic rocks of easy weathering and non-consolidated deposits of sand and gravel form most of the mining area.

Bioecological Indicators: Characterize the biota of the ecosystem altered by mining activities. They are: affected fauna population, proportion of vulnerable species, fauna diversity index, endangered species, vegetation diversity index, endemic species, forestation index, proportion of green areas with fauna habitats. Native and planted tree, ornamental plants, pastures and bushes represent vegetation in the exploitation zone. Rats, serpents, rabbits and birds, represent fauna.

Water quality average: Of the various indicators for water quality, the most used is that developed by the United States National Health Foundation. This indicator is calculated by the following function:



188

WQI= OD*.17+cf*.15+PH*0.12+DBO*0.10+N*.10+F*0.10+DT*0.10

T*.08+ST*0.08

Where: OD: solute oxygen. cf: feces. PH: water acidity. DBO: biochemical demand of oxygen. N: nitrates. F: phosphates. DT: temperature deviation. ST: Total solids.

The WQI range of values goes from 0 to 100, where values mean: 0-25 very poor water, 26-50 poor, 51-70 medium, 71-90 good, 91-100 excellent.

Table 5. Water Quality

PROCOPAL5 AGREGADOS DEL NORTE6

Ph 8.10 7.55 Chlorides (mg/l) 18.0 529.8 Total hardness (mg/l CaCo3) 320.0 154.0 Total iron (mg/l) 0.85 0.26 Turbidity (ntu) 4.50 - Sulfates (Mg/l SO4) - 583.15 Apparent color (upc) - 40

Landscape Indicators: To determine the landscape degradation in mining areas, the landscape quality indicator LQI proposed by Cruz and Sarmiento (1999) has to be considered. This indicator was adapted to the studied cases. The indicator is calculated with the following equation with weight factors:

LQI= DP*35+AAE*20+US*20+CVA*25

100 5 The company made the bacteriological, physical and chemical analysis of the surface water

source with the University of Antioquia in February 1997. 6 The company made a water microbiological, physical and chemical analysis to determine its

aptitude for concretes.



189

Where: DP: population density. AAE: annual mining area. US: soil use. CVA: exploitation area visibility.

Technical Indicators: Complementary indicators that integrate aspects related with sustainability: economic, social and environmental. They are: total and specific exploitation area, annual production, overburden thickness, specific filling area, available reserves, life time of project, reclaimed area, flooded area, ground water table levels, volume of filtration per day, final slopes, minerals sent to plant, productivity, product recovery.

Table 6. Technical Indicators

Procopal Agregados del Norte

Conasfaltos

Total area of the project (Ha.) 50 14.3 67 Exploitation area 12 3 65* Overburden thickness (Mts.) 1-2 1-2 1-2 Filling area (Ha.) 2 3.4 3 Available reserves m3 7’030.000 4’069.122 8’876.125 Life time of project (years) 25 35 34 Approximate production m3/year

273.600 117.600 264.000

*Exploited and potentially exploitable areas

The following characteristics are similar for the three companies.



190

Maximum extraction depth (Mts.) 35-50 Height of benches (Mts.) 4-6 Slope angle of bench (o) 85-90 Final height of slopes (Mts.) 40 Final angle slope (o) 80-90 Productivity crushing plant m3/h 40 Percentage of recovery of material m3/h 45 Percentage of recovery of crushed material m3/h 40 Recovery (%) 89

Social and Economic Indicators: Report the influence of the company in the region. They are: social investment, level of jobs, fiscal incomes, changes in land value.

4.2 Group 2

Three companies that exploit coal by underground methods in the coal basin of Antioquia: Carbones Nechi, Mina El Bloque and Mina Las Margaritas.

The coal basin of Antioquia has a tertiary origin formation, with multibed deposits of bituminous coal, general stratification N 10º -30º W, deeping an average of 20º SW and NE according to flank dominant anticline. The analyzed companies operate mines in different municipalities: Nechi in the town of Amaga, El Bloque in Fredonia and Las Margaritas in Titiribi. They use the method of chambers and pillars, semi mechanized and with production ranges of 4000 to 7000 tons/month.

After having done the fieldwork in each mine and characterized the surrounding environment according to the established methodology the following indicators were chosen. This



191

included the analysis of the local land regulation plans, the diagnosis of the operations and identification and evaluation of the environmental impacts.

Environmental Performance Indicators

Input Indicators:

Energy (use and efficiency): gallons of fuel/month, gallons of fuel/ton of coal, kWh/month, and kWh/ton of coal, energy intensity/unitary operation.

Water consumption: m3/month, m3/ton of coal

Materials: tons of wood/month, kg of wood/ton of coal, tons of explosives/month, explosives/ton of coal.

Output Indicators

Total and specific production, tons of sterile/month, tons of sterile/ton of coal, tons of organic waste/month, tons of organic waste/ton of coal, tons of inorganic waste/month, tons of inorganic waste/ton of coal, sterile and waste elimination rate, recovery wastes, recycling rate.

Infrastructure: monthly availability of equipment, percentage of the title area constructed.

Environmental Management Indicators

System Indicators: number of environmental improvement proposals/month, number of corrective measures taken/month, number of complaints due to environmental pollution/month, excess in authorized limits/month.

Functional Area Indicators: occupational health index: occupational disease cases, labor welfare, labor training, income level, impact due to income level, type and level of employment, community relations, level of citizen participation, environmental management.



192

Environmental Condition Indicators

The studied area has 5 types of soils derived from: sedimentary rocks of low fertility, igneous rocks known as the coffee growing soil, that turn into gravel with rain, metamorphic igneous rocks with medium to low fertility, of piroclastic materials rich in organic material with high level of phosphorus fixation. Sugar cane, coffee, fruits and pasture can be found. The are also modified forests, forest plantations, stubble and farms.

Native vegetation is scarce. Bats, fishes, and mammals are found. There hare 32 families and 112 species of birds. Some of these species are becoming extinct.

Geological Indicators: water dynamics and erosion rates.

Physical and chemical indicators: temperature, acidity, alkalinity, and turbidity levels.

Landscape And Biological Indicators: The use of a matrix will give each indicator a certain amount of points. Landscape environmental evaluation: (total points/24)*100, environmental evaluation of the use of soil: (total points/33)*100, deforestation impact: environmental quality of mined areas/environmental quality of external areas * 100.

The following is a summary of the initial data for a set of indicators applicable to the analyzed mines:



193

EL BLOQUE

LA NECHÍ LAS MARGARITAS

Monthly extraction rate (tons/month)

4000 5860 4526

Heating power (Btu/lb.) 12.02 12.57 236.8 *105 Btu/ton Consumption of wood (ton/month)

49.4 124.15 844 pesos*/ton

Specific consumption of electric power (kWh/ton coal)

4.02 8.1 100 pesos/ton

Efficiency in the use of explosives (kg /ton coal)

0.4 0.89 578 pesos/ton

Sterile (m3/ton coal) 0.076 0.137 0.014 % Mining title area used in mining and for construction

0.16 0.07 0.04

Number of environmental improvement proposals per month

2 4 4

Complaints due to contamination per month

2 3 1

Sickness leaves (days/month)

59 65 29

Training (hours person/month)

7 11 10

Activities with community per month

1 3 1

Water dynamics, erosion rates (%)

7 12 26

1 US$=2300 pesos



194

To avoid mining subsidence the dimensions of the pillars were calculated after a linear regression analysis, which gave this formula:7

Frequency index: 0.96

The air degradation factors more frequently found in underground exploitations in the coal basin of Antioquia are:

Gasses. Oxygen: more than 20% in volume; carbon dioxide: 0.2%; carbon monoxide: 0.001%; nitrous vapor (No+No2): 0.002%; methane: (CH4 plus traces of other HC paraffin): less than 1m3/ton (in situ) and less than 1% in air return. All values are far below the established limits8 and far below danger limits.

Particulate material:

Concentration of breathable dust in fronts: 3-4 mg/m3

Of free silex in breathable air: 4-5%

In some sector the are weight layers of deposited dust of more than 1/10th of a millimeter, covering sections of galleries, capable of forming combustible dust clouds with concentrations of more than 100gr/m3, amount considered very risky.

Technical And Financial Indicators

Volume of circulating air, energy sources used, energy sources in each equipment.

7 De la Cruz, Hector et al. 1990. Study for Pillar Dimensionnig in the coal Basin of Amaga.

National University of Colombia. Medellin. 8 Castro, William. 1977. Environmental Conditions of Underground Mining in the Amaga

Angelopolis Basin. National University of Colombia. Medellin.

)86.0* thicknessbed

pillar ofwidth +(0.36 results resistance testing= resistanceillar P



195

Cash flow index, debts, yield, and activities.

CONCLUSION

In Colombia it is necessary to develop and assess methodologies to design sets of indicators for sustainability for the mining companies, as their activities are today, far from sustainable. This must be done for groups of miner users, due to the variety of minerals exploited in the country. A good set of indicators will contribute to reduce the negative effects of mining activities and promote its positive effects on the human and natural environment. When these indicators have been established they will be tested, adapted and improved with field works and then used in a systematic way to achieve sustainable development, mandatory in the Colombian Constitution and in the economic development plans.

Due to the characteristics of mining activities in Colombia the work areas and the investigations to determine sustainability indicators are focused in exploration and production of gas and oil, quarries, big coal surface mining, small and medium size coal underground mines, clay industry, gold placer and underground mines and extraction and processing of placer sands and gravel. This investigation is being done with great enthusiasm by the Environmental Economics Group of the National University of Colombia in Medellin.

The main result of this work is the method for developing technical, social and ecological sustainability indicators applicable to small and medium mines in Colombia, where even management information is scarce. The progress made in the environmental characterization of the mining companies and their activities and the first values are being used to improve social and environmental performance of the companies analyzed in the investigation. The experience of this study and particularly those obtained in the



196

fieldwork will be used to write a handbook that will then be used in the investigation.

REFERENCES

AMBIOSISTEMAS Ltda. 1995. Plan de manejo ambiental para el programa social de legalización de los contratos de pequeña minería. Informe presentado a Ecocarbón.

AZAR, C. HOLMBERG J., et al. 1996. Socio-ecologica indicators for sustainability. Ecological Economics. Elsevier.

BEDRICH, MOLDAN y BILLHARZ, SUZANNE. 1997. Sustainability indicators: a report on the proyect on indicators of sustainable development. John Wiley & sons. England.

CECODES. GUZMAN, ENRIQUE. 1998. Indicadores de sostenibilidad. Memorias del seminario internacional de medio ambiente y desarrollo sostenible. Bucaramanga, Colombia.

CHANCÍ, RUBÉN et al. 2000. Manejo integral de áreas mineras en la cuenca de la quebrada Altavista, Municipio de Medellín. Convenio interadministrativo Minercol-Mi Rio. Medellín.

CONESA FERNANDEZ, VICENTE et al. 1995. Guía metodológica para la evaluación de impactos ambientales. Mundi Prensa, Bilbao, España.

CRUZ, ROBERTO y SARMIENTO, JUAN. 1999. Desarrollo de indicadores de gestión ambiental para la etapa de beneficio en la minería de gravas y arenas en la Sabana de Bogotá. Universidad de los Andes, Asogravas.

DNP Y CANCINO, SONIA. 1998. Propuesta metodológica para la construcción de un sistema de indicadores de planificación y seguimiento ambiental. Memorias del Seminario Internacional



197

de Medio Ambiente y Desarrollo Sostenible. Bucaramanga, Colombia.

ECOCARBÓN. 1997. Manual para el control de factores de degradacón ambiental en la minería subterránea de carbón. Centro de Investigación del Carbón, Universidad Nacional, Medellín.

ECOPARTNER. 2000. Metodología de evaluación. Programa Cantera Verde. Santafé de Bogotá. Informe de avance.

ENCINALES O., JOHN J. 2000. El uso de indicadores como elementos predictivos de los procesos ambientales. IDEA Universidad Nacional de Colombia. Bogotá.

ESTRADA, MAURICIO y ARBELÁEZ, ERIK. 2002. Diseño de indicadores de sostenibilidad y su aplicación a las empresas productoras de carbón en Antioquia. Universidad Nacional de Colombia. Proyecto dirigido de grado. Ingeniería de Minas y Metalurgia. Medellín.

GARCÍA, HÉCTOR. 1998. Guía ambiental para la minería subterránea de carbón. Bogotá, Ministerio del Medio Ambiente.

GEÓLOGOS E INGENIEROS ASOCIADOS (GIA). 1999. Manejo integral de canteras y explotaciones de materiales de construcción en el Valle de Aburrá. Medellín.

GEOMINAS S.A. 1992, Informe de salud ocupacional, Mina La Nechí; 1998, Informe final de exploración geológica, Minas El Bloque; 1998, Informe final de exploración geológica, Mina La Nechí; 1999, Plan de manejo ambiental, Mina La Nechí; 1999, Plan de manejo ambiental, mina El Bloque; 2001, Informe final del plan de trabajos e inversiones de la mina El Bloque.

GONZÁLEZ, CARMEN. 1999. Evolución de la legislación minera en su componente ambiental. En: Gestión y Desarrollo. Universidad Nacional de Colombia, Medellín.



198

KAHN, J. and FRANCHESCHI, D. 2000. Environmental policy and sustainable development implications for materials and mining. p. 35-56 de Villas Boas, Roberto: Technological challenges posed by sustainable development: the mineral extraction industries. Cyted, Imaac Unido, Madrid.

LACLAUSTRA, GERARDO y VELÁSQUEZ, JOSÉ A. 2002. Diseño de indicadores de sostenibilidad y su aplicación a las explotaciones de agregados pétreos aluviales en el Valle de Aburrá. Universidad Nacional de Colombia. Proyecto dirigido de grado. Ingeniería de Minas y Metalurgia. Medellín.

LEMA, JUAN y WOLF, MARÍA. 1986. Características geológicas de los principales materiales explotados para agregados en el Valle de Aburrá. Trabajo de grado, Escuela de Ingeniería de Antioquia.

MOORE, PATRICK. 1997. Hard choices for environmentalists and the mining industry. PDAC, Toronto, Canadá.

PEZZEY, JOHN. 1992. Economic analysis of sustainable growth and sustainable development. Working paper 15. World Bank Environment Department. Washington D.C.

POSADA, LUIS G. Y VARGAS, ELKIN. 1997. Desarrollo sostenible, relaciones internacionales y recursos minero energéticos. Universidad Nacional de Colombia, Bogotá.

QUINTERO, VÍCTOR M. 1998. Evaluación de proyectos sociales. Construcción de indicadores. FES Bogotá, 4ª edición.

RAHMAN M. S. 1991. Environmental protection in mining industry. IM & EJ, August.

Salazar G., Juan P. 1999. Índices e indicadores para evaluación y seguimiento ambiental. SENA, Sogamoso.

THOMPSON, CLIVE H. 1994. Competitividad y desarrollo sostenible. En: Ingeniería Química, octubre.



199

THOMPSON, IAN. 1999. We live interesting times: a social licence to operate: essential for success in exploration. Vancouver, Canadá.

THOMSON, IAN and JOICE, SUSAN. 1997. Mineral exploration and the challenge of community relations. B.C. Yukon Chamber of Mines.

TOMAN, M. AND WALLS, M. 1995. Nonrenewable resource supply: theory and practice. Capítulo 9 de Bromley, Danile W. UK USA.

UNEP. 2000. Sustainable development and the future of mineral investment. Edited by James M, Otto and John Cardes.

VALENCIA, GLORIA y ZAPATA, LUZ ELENA. 1993. Diseño del programa de salud ocupacional para la empresa Metromezclas de Medellín, Vol. I. Tesis de Ingeniería Industrial, Universidad Nacional de Colombia, Facultad de Minas.

VARGAS, ELKIN. 1997. El desarrollo sostenible y los recursos naturales no renovables. En: Ensayos de Economía No. 13. Universidad Nacional de Colombia. Medellín, p. 73-112.

VARGAS, ELKIN. 1998. Minería y medio ambiente. En: Gestión y Ambiente No. 1. Universidad Nacional de Colombia. Medellín, p. 17-26.

VILLAS BOAS, ROBERTO y FELLOWS, FILHO. 2000. Technological challenges posed by sustainable development: the mineral extraction industries. Cyted, Imaac Unido, Madrid.

WARHURST, ALLYSON. 1994. Environmental degradation from mining and mineral processing in developing countries: corporate responses and national policies. OCDE.



200

WERTHER, GUNTRAM. 1997. Native peoples’ issues and the future of mining. International California Mining Journal. Vol. 66 No. 10. California.



201

SUSTAINABLE INDICATORS OF THE SMALL COAL MINING IN COLOMBIA

Liliana Betancurth M Geologist.

Case: Department of Boyacá – Colombia.

Each system works according to the way how internal and external factors can affect positive or negatively its basic sustainability. The indicators are real measures trend to evaluate the state of a system whatever it is, allowing of clear way the interpretation and diagnostic of the alternatives to follow to obtain an optimal operation.

In the mining, the indicators must be a kind of guide to the recognition of the existing resources, the options of their advantage, its commercialization, its relation with the natural environment and its interactions with social means. All these parameters are governed by particular indicators, that finally allow to know the impact generalized the mining activities on the surroundings.

For the case of the coal, we are talking about a power resource that by long time has been a motor of development in many countries of the world; since it has been and it is essential part in the development of electrical sectors, metallurgical and still nutritional. Historically the coal is a resource that is operated from half-full of century XIII what shows more than 800 years of use, in which the effects on means have left important tracks at economic level and of development, but few at social and environmental level.

This document is suggested like one of already the many existing proposals to visualize of global way, the form to include the problematic one of the sustainable development at level of the small mining through the use of sustainable indicators, in development countries, like the Latin Americans.



202

For the Colombia case, it has a great potential of coal and there is an interest of the private and publics organizations as much to recognize and to mitigate the problematic that comes from non technified operations; being conscientious that is possible to conceive an organized mining, of clean production and that generates gains for which they have it and at general level of all the country.

SUSTAINABLE INDICATORS

The sustainable development requires that the means of production of the capital, goods or conservation in different the anthropogenic systems manage to stay or manages to improve, in its passage from a generation to another one. Retaking the concept of Indicator, they are they who allow finding a level of information in the time, on the sustainability of a system; in this case, on the evolution of the activities of operation of strategic mineral resources.

The indicators allow to see how want to obtain positive results in entrance terms to per capita, the destruction of the natural resources risks or the people expose themselves directly. It is necessary to know how that all type of development implies risks, of the justification to maintain the situation controlled within pre-established limits of tolerance there.

The indicators must have the Following significant characteristics:

• To be of easy measurement

• To be applicable on a rank of different ecosystems and economic and social systems

• To be reasonable as far as the attainment of the information

• In certain cases, it can allow that the involved population, directly participates in the measurements to take, therefore they must be practitioners and of easy understanding



203

• the measurements must have the characteristic to allow to be repetitive trough the time

• To be significant level of the sustainability concept, the others could be despised

• To be moldable and sensible to the same changes of the system

• To be tolerable with a series of standards established for the aspects of means, such as: environmental, technological, economic and the social ones.

Under the point of view that concerns in this case, the categories which they must set out for the analysis of a mining system of small scale are:

• Indicating of technical type (ITT): such as the methods of operation and benefit of the Indicating mineral

• of economic type (IET): such as the strategic importance of the mineral, the production costs and price in the Indicating market

• of environmental type (IET): such as the impacts on the resources water, ground, air, flora, fauna and Indicating landscape

• of Social type (IST): such as the demand of goods and services, the generation of use and the educative level.

INDICATOR OF TECHNICAL TYPE (ITT)

It is relating about the art of how the existing methods of operation are applied, according to the geologic, structural characteristics and of quality of the mineral in the deposit, of which they are as well the methods of benefit of the mineral, optimizing its commercialization and consumption finally.



204

Description of the Indicator.

A first indicator can be proposed that at the moment relates the methods used to extract the mineral (indicating of extraction IER) with the method really established for the deposits at issue (indicating of theoretical extraction ITE); added to the indicator that theoretically establishes the best method of benefit of the mineral (indicating of benefit IBT), compared with at the moment used (indicating of real benefit IRB); considering equipment and processes. The weight of the total indicator must be of 100 units.

ITT = [(IER/ITE) + (IRB/IBT) ]/2 * 100

In where:

ITT: Indicator of type of automation, valued between 0 and 100

IER: Real adjustment of the used method of extraction

ITE: Pre-established theoretical parameters for the mineral extraction of deposit at issue

IRB: Indicator of the system of benefit used at moment

IBT: Indicator of the system of optimal benefit, established theoretically INDICATOR OF ECONOMIC TYPE (IET)

This classification corresponds to the parameters that allow to evaluate and to know the viability the operation in yield terms; subordinated to the characteristics of the effective market, the costs of the production with respect to the income by sales and the level of importance of the mineral within the local and regional contexts.

Description of the indicator.

This indicator is a little more complex, because it will be the average between three aspects necessary to know. The first indicator will be the one that allows to compare the present demand (indicating



205

of present demand IPD), with the volumes of production of the deposit for the same time (Indicating of volumes of production IVP), added to the indicator that compares the value of the production costs (indicating of production costs IPC), with the value of the income by commercialization (indicating of the value of income IVI), added to the indicator that compares the present importance of the mineral within main strategic minerals of the moment, at local and regional level (indicating of strategic importance IIE), with the last and future indicator that shows the tendency of substitution of the mineral (indicating of substitution IS).

The weight of the total indicator will be between 0 and 100 units.

IET = (IVP/IPD) + (IPC/IVI) + (ISI/IS) ]/3 * 100

In where:

IET: Indicator of economic type

IVP: Indicator of the volumes of present production

IPD: Indicator of the present demand in market

IPC: Indicator of the present production costs of deposit at issue

IVI: Indicator of the value of income or gains, by commercialization of mineral

IIE: Indicator of the present strategic importance of the mineral at local level and regional

IS: Indicator of the tendencies of substitution of the mineral INDICATOR OF ENVIRONMENTAL TYPE (IET)

This is one of the most complex indicators to evaluate, since the environmental context locks up, the evaluation of the behavior of each one of the elements of natural means, like the water, ground, air, flora, fauna and landscape and the impacts that the extractive mining



206

can generate in them. That is to say, this indicator tends to evaluate the efficiency in the mitigation processes and control of the environmental alterations produced by the mining.

Description of the indicator.

A composed indicator sets out, that is the average weighed of each one of the indicators established for each element of natural means.

The first indicator is the state of physical and chemical quality of the water (indicating of quality of water IQW), compared with the standards physic-chemistries, biological, content of organic matter, sedimentation, variation of groundwater levels and increase of leaching waters (indicating composed of permissible levels for water IPL); added to the indicator of the state of the soil and subsoil (Indicating of quality of the soil and subsoil IQSS), compared with the standards of the changes in properties physic-chemistries and increase of the erosion, loss of the organic layer, changes in the use of the soil and geotechnical stability of the rocky bulk (indicating composed of standards for physical and chemical quality of soil ISPQ); finally the indicator of the physic-biotic behavior is added (IPBB), compared with the number of destroyed species, the reduction of the vegetal cover, the alteration of the habitats, visual migration of species, resistances and disposition of the sterile material (indicating composed of physic-biotical adjustment ICPB).

IET = [ (IQW/IPL) + (IQSS/ISPQ) + (IPBBB/ICPB) ]/3 * 100

In where:

IET : Indicator of environmental type

IQW: Indicator of quality of water

IPL : Permissible level for the water

IPL = (Iepq+ Ib + Iom+ Is + Ipl + Ilw)



207

Iepq : standards physic-chemistries

Ib : Content of bacteriological

Iom : Content of organic matter

Is : Sedimentation

Ipl : variations of the phreatic level

Ilw : Increase of leaching waters

IQSS: Indicator of the physical and chemical quality of the soil and subsoil

ISPQ: Indicator composed of standards of physical and chemical quality of the soil

ISPQ = (Ippg + Ie + Iol + Icus + Ieg)

Ippg : Parameters physic-chemistries for soil

Ie : Increase of erosion

Iol : Loss of the organic layer

Icus : Changes in the use of the soil

Ieg : Geotechnical stability of the mass rock

IPBB : Indicator of physical - biotic behavior

ICPB : Indicator composed of physical t – biotic adjustment

ICPB = (Ids + Ivc + Iah + Ims + Iv + Ids)

Ide : Number of destroyed species

Icv : Reduction of the vegetal cover

Iah : Alteration of habitats

Ime : Notoriety of the migration of species

Iv : Visual amount of resistances and changes (landscape)



208

Ids : Disposition of the sterile ones INDICATOR OF SOCIAL TYPE (ITS)

This indicator tries to evaluate dynamics at anthropogenic level, that is developed by the opening of mining activities near populated centers or pre-established socio-cultural groups; it means, that the indicator looks for to also know and to evaluate the evolutionary impact that the mining produces in aspects like the demand of goods and services, the generation of use and changes in the educative level, in the processes of migration, increase of the urbanization phenomenon, and increase of the accidental risk.

Description of the Indicator.

A composed indicator sets out, that is the weighed average of the comparisons established for each indicator of social type. The first indicator will be the one that compares the present demand of goods and services (Indicating present of goods and services IPGS) with the growth waited for to future and recognized in the statistical percentage of previous years (indicating of statistics of goods and services IGS); added to indicator d growth of uses (indicating of growth of use IGU), compared with the last statistics and the future projections based on the growth of the mine (Indicating of statistics of use ISU); added to the indicator that compares the present educative levels (educative level present IEL) with the last levels and the hoped ones to future (Indicating of educative projection IEP); added to the indicator that compares the present levels of migration (indicating present levels of migration ILM) with the last and future statistics of migration for the zone (Indicating of statistics of migration ISM), added with the indicator that shows to the present state of the urbanizations (indicating of urbanization IU) with the last infrastructure statistics and the plans of population growth, with its respective demand of house and routes of communication (Indicating of city-planning growth ICG), added finally to the Indicator of the



209

risk by present accidental, due to the mining works (Indicating of mining accidental IMA), related to the statistics of healthy as soon as accidents, of last times (Indicating of healthy last IHL).

ITS = [(IPGS/IGS) + (IGU/ISU) + (IEL/IEP) + (ILM/ISM) + (IU/ICG) + (IMA/IHL) ]/3 * 100

Where.

IST : Indicator of social type

IPGS : Demand of goods and services

IGS : Statistical data of goods and services

IGU : Growth of use

ISU : Statistical data of growth of the last use and futurist tendencies

IEL : Educative level present

IEP : Educative projection

ILM : Present levels of migration

ISM : Statistics of migration

IU : Level of bordering urbanization

ICG : Statistics of city-planning growth

IMA : Mining Accidental

IHL : Data of health in last years GENERALITIES OF THE COAL IN COLOMBIA

Geologically the coal deposits in Colombia are located in zones of the Eastern mountain range, associated to sediments of tertiary age cretaceous, in addition to the great deposits of the Caribbean region, equally associated to formation of sedimentary



210

marine origin of the same age. Are some small coal manifestations in the central mountain range with very similar genesis.

The production of the coal in Colombia is made in 8 departments (provinces). In head is the department of the Guajira, followed by the department of Cesar, being a mining for international markets; in the rest of the country the mining is for internal consumption and in order they are: the departments of Boyacá, Cundinamarca, North of Santander, Antioquia, Valley of the Cauca and the Cauca; telling that the production has diminished gradually, due to the generalized crisis of the sector.

The technified mining is made to open pit and is net for the export. On the other hand, the cavern mining is strong in manual labor, without greater investment in the automation and directed to supply the internal consumption of the country.

The coal operations of the country, had their beginning at the beginning of century XX, determined by the construction of railroads to steam, followed by the cement factories, of textiles, the furnaces of salt and the brick manufacture. Later in the 40, the production arrived at the 420,000 tons. But in years 50, the accelerated urbanization and the demand of coal at industrial level in the production of cement, and goods like the paper, rims, rubber and chemical agents, they even increase plus the production and the construction of the Iron and steel of Peace of the river and the thermoelectrial ones of Paipa and Yumbo, that allowed the expansion of the production in the bordering mines.

By year 65 the fall of the price and the replacement by fuels generate a stagnation; it is as well as the industrialist of the coal declines and it is translated to element of operation, such as the existing ones nowadays in the department of Boyacá; surpassing the 1000, but in the 70 world-wide power crises and the increase of the price of petroleum, the coal returns to be a fundamental power product and a policy is generated that allows Colombia to enter a



211

period of great operation of the resource. Later the great mining consolidates in years 90 with the opening of the carboniferous complexes of the Guajira and Cesar.

GENERALIZED CHARACTERISTICS OF THE SMALL MINING OF THE COAL.

It is undeniable which the size of the carboniferous operations and the technologies hat are used for the extraction of the mineral, influence in the yields. For the small mining standards have settled down, as it follows:

- To open pit: Up to 180,000 24,000 or m3 sterile Mt/year of coal underground Mining: Up to 30,000 Mt/year.

As far as the technologies used for the extraction of the mineral, the small mining is mainly underground or of cavern. In Colombia two methods are used basically:

• Method of long wall: It is characterized to allow an extraction of complete panels of thousands of square meters, obtaining therefore a maximum advantage of the deposit.

• The starting of the material is made throughout a front of 200 m of length and advances 1,3 m by cycle, also is collapsing the ceiling of the area operated behind the front. Each cycle consists of the starting and evacuation of the coal, the recovery and relocation of the handles of timbering and replacement of the system in the front.

• Extraction by room and pillars: It is used to operate horizontal coal mantles or little inclined. Regular portions of coal in form of pillars are left that serve as support and whose size will depend on the resistance of the mantles and the superior layers. Unfortunately, this method causes that the amount of extracted coal is relatively low, but even is the most used in Colombia.



212

Social level, the small mining contributes good part of the amount of uses in the regions where it is exerted, it been to say in Boyacá, Cundinamarca, Antioquia, Valley of the Cauca and Norte of Santander; despite in the last 5 years, there was deprivation of rank and privileges, product of the low internal consumption of the coal, coverall in 1996.

This way the closing of some mines took place and a remarkable reduction of uses. To educative level, the people who work in the small mining do not reach stops academic levels; people generally has single studies of basic primary or no. Opposite case of the medium and great mining, where the people count like minimum with studies of basic secondary, technical and university. THE COAL IN DEPARTMENT OF BOYACÁ

This department is located in the Eastern mountain range of Colombia, in where the carboniferous zone includes an approximated extension of 3,300 kilometers square, calculating that the considered reserves are of the order of 170,4 million tons of measured reserves and 682,7 million tons of indicated reserves, to see table and map No.1. In all the region the small thermal coal mining predominates of type, metallurgical and semi anthracitic; that it can be equivalent to 7,2 % of the production of all the country, being then the second more important region, after the Atlantic coast.

The production is carried out through more than 1,000 legal and illegal operations between, all of small mining, that occupies a great manual labor, but with very rudimentary, unproductive production techniques and dangerous in certain cases.

As it had already been mentioned, the demand is mainly local, covering partially some demand of coke in other regions of the country. The consumption is made through sectors like electrical, the metallurgical one, in the nutritional sector and of drinks and in the sector brick maker. The reasons by which this coal, or thermal or



213

metallurgical, did not accede to the international market, due to the high costs of the transport towards the same cost and ports of embarkation in the ports; but like aside remarkable, it can say today that the exports of coal and coke by good luck that in 1999 did not exist, today approach 300,000 Mt/year.

Table No 1 Carboniferous zones of the department of Boyacá and reserves in Millions tons. Source: Carboniferous Boyacá, 1998

ZONE / AREA MESURED RESERVES (Mt)

INDICATED RESERVESS (Mt)

Chequa- Lenguazaque Samacá – Ráquira

35.7 129.9

Tunja-Paipa - Duitama 24 97.2 Sogamoso-Jericó 102.9 412.3 Suesca- Albarracín Tinja – Ventaquemada

7.8 43.3

TOTAL 170.4 682.7 Excepting to few companies properly constituted, the level of

automation of the operations is very rudimentary in all the carboniferous region. Note clearly that the design of the operations and works to make the mining are empirical, despite recognizes the present management and interest of the beings directives of the country to improve the situation. The execution of the works is made with very little equipment and a great use of manual labor.



214

Source: INGEOMINAS 1999.

Map No. 1. Coal deposits in the Department of Boyacá - Colombia.



215

Some times it is used compressed air for the operations of perforation and coal starting with pneumatic equipment.

Mining mechanization, consists of the transport by means of delivery trucks thrown by hoisting, through the inclined ones, him water is evacuated with electrical pumps; auxiliary ventilators are used for the environmental cleaning.

One has seen that all the mining operations are susceptible to be mechanized, but the capacities of investment and the possibilities of the market of the coal do not allow amortizing well mannered the great required capitals.

As far as the form to arrive at the reserves, an inclined work is made that follows the dip of the mantles, which is accessible in surface through an outcrop.

The generalized method of operation more, consists of the descending extension of drums, becoming an suitable system with which recoveries of the order of 80% in the cut and are obtained yields superior to 5 ton/men-shift.

The method of operation of opened edge, the recovery is superior to 90% in the cut and the yield is similar to the previous method.

The method of recovery of pillars allows to obtain discharges rates of recovery, greater to 80%, but the yield falls when the mantles are little pending, this due to the difficult manual transport of the coal.

Most of the mines have manual starting in several cuts, with senses of operation as much in advance as in retirement. The facility of the starting depends much on the fouling of the coal and the compression or decompression on the mantle that is from the same operation. This operation has a very low mechanization in the zone



216

and resorts at an intensive manual labor; it is had then as consequence very little cost of capital and little clean coal.

Economically, two modalities as far as the operation costs appear. First it corresponds to a small unit, with a level of very irregular hiring of personnel. All the workings are paid by meter of advance or ton in mouth of mine; being observed a very ample margin between the direct cost of production and the sale price the consumer. The second modality is very small as far as the number of companies (three or four companies), but has a great importance at socioeconomic level in terms of use, social security, qualification and it as well represents a high percentage of the regional production. Also the mining practices more are technified and safe, they make investments in exploration and development of mines and administratively they are very well fit. Nevertheless, the economic yields by unit of production for the mining companies of the second modality are minors who obtained by the small miners and size of the additional investments that they execute, are not proportional to their greater production.

As far as the infrastructure, the region counts on a good road network, speaking in terms of secondary main highways and; but in some cases, the routes from access to the mines are very neglected, directly affecting the good state of the vehicles of transport of the coal and the complexity of this activity.

The distribution of electrical energy in the region is good, and can extend until the mines for a better mechanization.

The slums have very acceptable conditions of life, this as far as health and basic services.

Some of the mines have external campings or assemblies in good conditions, including offices, casinos and factories, patios and hoppers of storage.



217

Hoisting machine outer are well protected within houses, and the communication with the interior of the mines, although it is a little rudimentary, shows to be efficient.

Regarding to the mining planning, it could say in general terms that it does not exist. The deposit has a good geologic regularity, but the planning is short term with works of immediately type. By this lack of planning and knowledge, some times the seams are attacked of a non appropriate sequence with the consequent difficulty in the programming of the operation and arriving in some cases to sterilize good reserves.

A noticeable dependency of the levels of production of the conditions of the local market exists; this takes to too long periods of inactivity or low rates in the operation, which also brings very unfavorable consequences on the state and the maintenance of the underground workings and in surface.

Environmentally, several problems are known that affect the resources of the average physicist and the surrounding landscape. Inadequate Handling of stockpiles is observed, which grow from the mine entrance without planning some. Fronts already exploded fill up with sterile and although some stockpiles are well located and not risks has of contamination in times of rain. Exist other that they have been arranged in zones of pending source, which they give permanent gorges, in where takes place severe erosion in the days of rain.

In dry time, amounts of dust are generated discharges coverall in the highways, the general aspect of the landscape is of relief with evident deforestation in slopes near the mines; the wood consumption exceeds the rate renovation.

Zones of burned grass also appear, due to the acid waters of the mining that are spilled indiscriminately and that finish being run-off waters. At the times of rain, the contamination of broken rivers



218

and becomes more critical, due to the drag sterile material and to the washing of the burned grass.

The impact on waters, produced by the mining activity of the coal in the department of Boyaca; it is stronger in some regions, in which for example, it is evident that the waters are acid and take great amount of dissolved solids. This dissolved material is product of the erosion in stockpiles, oils and fats of washings in the zones of factories and houses of machines and muds in the access routes. Some mines, like those of the region of Samacá, have installed some works for the sedimentation control, having neutralized and clarify originating waters of the mines.

The superficial waters directly affected by the dewatering of the mines display a pH acid between 3.6 and 6.0; some are seen of reddish color reflecting the high Iron concentrations.

At social level, esteem that is around 20,000 families those who depend on this office and all a mining community near the 600,000 people between mining producers, exporter and investors.

GENERALIZED ANALYSIS OF THE SUSTAINABLE INDICATORS OF FOR THE SMALL MINING OF THE BOYACÁ- COAL

In order to apply the methodology of sustainable indicators of raised previously, it is necessary to clarify that it is not counted on all necessary the statistical information; therefore an analysis will become of qualitative and semi quantitative type, that allows to diagnose in broad strokes and based on the characteristics of the coal in Boyacá, the sustainability degree that this important carboniferous region of Colombia, comes handling.



219

Indicating of technical type (ITT)

In the department of Boyacá, the degree of automation and benefit of the coal, are a little limited, with the exception of a few mines. It is not counted on the economic investment necessary that it allows to create an organized exploitation system, in addition that in many occasions does not become a classification of the coal according to its properties, thus to optimize his future uses in the market.

Of a general way and based on the parameters established for the determination of this first indicator, it can say that.

ITT = [ (IRM/ITE) + (IBU/IOB) ]/2 * 100

ITT = [ (40/100) + (50/100) ]/2 * 100

ITT = 45

In where:

ITT: Indicator of type of automation, valued between 0 and 100

IRM: Real adjustment of the used method of extraction

ITE: Pre-established theoretical parameters for the mineral extraction of deposit at issue

IBU: Indicator of the system of benefit used at moment

IOB: Indicator of the system of optimal benefit, established theoretically

Indicating of economic type (IET)

In order to analyze this indicator of economic type, first it is possible to be established that the coal has a valuable strategic importance for the region, in spite of the periods in which the low consumption; has not even been a mineral or an element that can completely replace the use of the coal. Nevertheless, the production



220

costs are high, compared with the prices of the coal in the market; this having mainly to the bad administration that lives itself in the mines.

IET = [(IPD/IVP) + (IVI/IPP) + (IS/ITS)]/3 * 100

ITE = [(45/70) + (85/80) + (40/90)]/3 * 100

ITE = 69.5

where:

ITE: Indicator of economic type

IVP: Indicator of the volumes of present production

IPD: Indicator of the present demand in market

IPP: Indicator of the present production costs of deposit at issue

IVI: Indicator of the value of income or gains, by commercialization of mineral

ISI: Indicator of the present strategic importance of the mineral at local level and regional

ITS: Indicator of the tendencies of mineral substitution

Indicating of environmental type (IET)

The extraction of the coal in Boyacá affects waters and soils considerably at the raining seasons. But at the moment some control programs have settled down to mitigate these impacts. As far as the contamination of the air, this one becomes more severe at dry season, due to the increase of the dust in the routes, in addition to some gas concentrations like the methane, in some galleries of the mines and that may affect the health and physical integrity of the miners. The landscape is affected in some sectors, due to the bad distribution of the sterile material, but also it is a controllable phenomenon. As far as the vegetation, one says that the deforestation is well-known, due to the great demand of use of the wood and the consequent erosion that is generated.



221

IET = [(IQW/IPL) + (ICSS/IES) + (ICFB/IAFB)]/3 * 100

IET = [(70/100) + (70/100) + (40/100)]/3 * 100

IET = 60

In where:

IET : Indicator of environmental type

IQW: Indicator of quality of water

IPL : Permissible level for the water

IPL = (Ispq+ Ib + Iom+ Is + Inf + Il)

Iefq : physic-chemistries Standards

Ib : bacteriological content

Imo : Content of organic matter

Is : Sedimentation

Ipl :variations of the phreatic level

Ilw : Increase of leaching waters

IQSS: Indicator of the physical and chemical quality of the soil and subsoil

ISPQ: Indicator composed of standards of physical and chemical quality of the soil

ISPQ = (Ippq + Ie + Iol + Icus + Ieg)

Ipfs : Parameters physic-chemistries for soil

IE : Increase of erosion

Iol : Loss of the organic layer

Icus : Changes in the use of the soil

Igs : Geotécnical stability of mass rock



222

IPBB : Indicator of physical- biotic behavior

ICPB : Indicator composed of physical- biotical adjustment

ICPB = (IetP + Icv + Iah + Ime + IV + IDE)

Ide : Number of destroyed species

Icv : Reduction of the vegetal cover

Iah : Alteration of habitats

Ime : Notoriety of the migration of species

Iv : Visual amount of resistances and changes (landscape)

Ids : Disposition of the sterile ones

Indicating of Social type (IST)

Socially the department of Boyacá has security problems, but that are not totally associate to the problematic one of the coal. It is known that the populations related to the coal operations and the people who work directly in the mining, count on necessary the basic services. The use generation is sustainable in some mines and intermittent in others, depending on the situation of the market. The educative level is low, but tending every day to well-known improvements of basic qualification.

IST = [ (IABS/IBS) + (IT HOISTS/IEE) + (INE/IPE) + (IMA/IEM) +

(IU/ICU) + (IAM/ISP)]/3 * 100

IST = [(90/100) + (80/80) + (50/80) + (50/70) + (60/70) + (50/100) ]/6 * 100

IST = 76.4

Where.

IST : Indicator of social type

IDGS : Demand of goods and services



223

IGS : Statistical data of goods and services

IGU : Growth of use

ISU : Statistical data of growth of the last use and futurist tendencies

IEL : Educative level present

IEP : Educative projection

ILM : Present levels of migration

ISM : Statistics of migration

IU : Level of bordering urbanization

ICG : Statistics of city-planning growth

IMA : Accidental Mining

IHL : Data of health in last years.

CONCLUSIONS

The indicators allow to establish that the present state of the small Mining of the coal that comes developing in the Boyacá Department, still is within the permissible limits of sustainability and development; shown the strong weakness that are had as well in all the analyzed aspects and, allowing to know the characteristics most favorable to continue with the suitable operation of the great reserves that has the region.

An average of the qualification, obtained for the 4 great evaluated indicators, has value of 62.7 on 100 like ideal value. Added to these results, one settles down if before a foreseeable demand of coke on the part of the USA, had to environmental restrictions by it burns it, the coal deposits of Boyacá could be constituted in a great opportunity to foment the technified operations and a good



224

commercialization, improving well-known the sustainability that the department handles at the present time.

BIBLIOGRAPHY

CARBOCOL, COLCIENCIAS, INGEOMINAS, NATIONAL UNIVERSITY 1993. Study on the

characteristics and technological uses of the Colombian coals. Zone Cundinamarca-Boyacá (Lenguazaque Checua -).

ECOCARBON 1995. Control of contamination of the water in the small undersoil coal Mining. Bogota

HUERTAS, G. 1995. Environmental impact of the small coal Mining of the south-West of the country.

MINERCOL 2001. Environmental guide for undersoil coal Mining

MINISTRY OF MINES and ENERGY, UPME 1998. National plan of Mining Development7



225

MODELING OF GOLD HEAP LEACHING FOR CRITERIA OF SUSTAINABILITY TARGETS

Luiz R. P. De Andrade Lima Polytechnic School, Federal University of Bahia, Rua Aristides

Novis, 2, Salvador, Ba, Brazil, 40210-630

Roberto C. Villas-Bôas Center for Mineral Technology, Rua 4, Quadra D, Ilha do Fundão,

Rio de Janeiro, RJ, Brazil, 21941-590

Hélio M. Kohler Catholic University of Rio de Janiero, CP 38008, Rio de Janeiro, RJ,

Brazil, 22453-900

ABSTRACT

Sustainable development principles are claiming proactive approaches from mining and mettalurgical process and design engineering in order to achieve prompt answers to minimize environmental impacts, energy utilization throughout processing, materials flows and discards, as well as social satisfaction per monetary unit of products and processes thus produced. A computational algorithm devised to simulate the temporal evolution of the gold ores heap leaching process,in an attempt to better understanding the phenomenology behind heap leaching and providing insights into developing a sustainable development indicator is described. The data used in the model include physical-chemical, geometrical and operational data, as: leachable metals ore contents, flow rate and cyanide concentration, parameters of passivity, ore size distribution, the average residence time of the solution into the heap, height, irrigated area and weight of ore in the heap. The shrinking-core model, describing the solid-fluid reaction under diffusive control process, was used to calculate these variables. The simulations show that the number of the layers has little effect on



226

the results which shows that the algorithm is stable and robust. The average residence time of the solution into the heap and the effective diffusivity of the cyanide through the ore particles have a significant influence on the temporal evolution of the gold extraction and its concentration in the pregnant solution, so these parameters may be used in the model calibration. In applying the algorithm to an industrial case, the results showed that the model is adequate to predict reasonably the process performance, and might be used as a starter for S.D. decision-making process indicators, since it does reflects changes over period of time keyed to the analysed problem,besides being reliable and reproducible.

1. INTRODUCTION

Criteria of sustainability are been sought in order to devise “green engineering “procedures to reach the targets thus imposed by society. Environmental constraints are the ones that are receiving the greatest attention those days, and the effectiveness of cyanide leaching of gold ores in particular(Villas Bôas,1994).

Those criteria are to based on indicators that are able to reflect changes over a period of time,are reliable and reproducible, and, whenever possible, they are calibrated in the same terms as the policy goals or targets linked to them(Hammond et al.,1995)

Heap leaching is being in use for years as an effective method for treating gold ores throughout the world . As it is well known, in this process coarse ore is disposed onto an impervious surface, so prepared that a small slope regarding to the horizontal axe is allowed thus draining-off the pregnant solution. On the top of the heap, a leaching solution is sprayed progressively percolating down the full bed of ore. This pregnant solution is then sent to the recovery step.

Column testing or experimental small heaps are utilized in order to estimate the leaching characteristics of the ore body.



227

However no scaling-up to industrial heaps is advisable from these testings due to difficult reproducibility of the geometric characteristics of the heaps (size particles, heap high, length, width and overall slope) and the hydrodynamics.

These difficulties, associated to the time-length and the costs required to prepare these testing programmes, have led to the development of phenomenological models for design and analyze heap leaching processes since the 60’s and throughout the 70’s and 80’s, in particular for copper ores and pyrite. These models are based on the material balance of the reactants using the continuity equation applied for the heap and the particles, and the specific kinetics models. In order to solve the complex system of partial differential equations that obtained, simplifying hypothesis are introduced without losing the quality of the results.

A brief description of these models and their simplifying hypothesis was presented by De Andrade Lima et al. (1998), when reviewing the works of Roman et al. (1974), Box et. al (1984,1986), Prosser (1989), Dixon and Hendrix (1993) and Sánchez-Chacon and Lapidus (1997).

2. THE MODEL

An algorithm is developed based on the hypotheses that the heap may be conveniently represented by a simplified geometry shape, that the liquid flow throughout the heap bed is plug flow, that the average residence time of the heap solution in its interior does not vary with time or with the vertical location, that the heap presents an homogeneous grade of the leachable metals and the size distribution and, finally, that the ore/leaching agent reaction are controlled by diffusion of the leaching solution through the large and weakly porous particles of the ore.



228

For the building up of the algorithm the heap is divided in horizontal layers of constant area. The recovery of gold from ore, the residual concentration of the cyanide and the enrichment of the pregnant leach solution can be calculated from interactions among these layers.

For each layer of the heap, and for each species, of any and every size classes, this model equation is analytically solved for each time step. The flow in the heap is considered unidirectional at a constant volumetric rate, whose the species concentrations vary within time. The dispersion in the flow is neglected (a proposital supposition, although a strong one, in order to test the model’s robustness).

Thus, the idea being to test some oversimplifications and evaluate how robust they might be on the produced results and, at the same time, how these oversimplifications would affect any depicted sustainability criteria. Figure 1 illustrates the schematic slicing representation of the heaps.

It is worthwhile to mention that all of the simplifying assumptions, regarding unidirectional flow, at a constant volumetric rate, the neglecting of the dispersion in the flow, already mentioned, and the neglected interactions between the main variables will affect the precision of model prediction, although not necessarily its robustness, as any model for, as well, environmental decision-making should attempt.



229

SHB

j = 1

j = 2

...

j = nl

j = nl - 1

HHB

Fig 1. Schematic representation of the heap for the model.

If a division of nl layers of equal thickness is set in a heap of rectangular shape, as show in Figure 1, the pregnant solution and the leach solution that are flowing through the several layers of the heap are retained at a time equals ∆τ=τ/nl. Since the average residence time of such solution, in each layer, is constant, the liquid hold–up of the heap is given by Equation (1).

( ) ( )

τ=εσ

HB

HBHBHB

HSQ (1)

Due to the coarse nature of the ore in the heap, diffusion control is sought to predominatesin the reaction ore/lixiviant so it may be described using the shrinking core model, Equation (2), (Fromer and Bischof, 1979) .

( ) 11

33

12 −α−ρ=

α−

mijtiT

CNjtmijt

'Rlc

Cdt

'd CN D (2)

Several metal compounds, particularly the transition metals that are present in the ore or in solution might be complexed by cyanide. The individual consummation of the leaching solution, for



230

each metal species present in the ore, may be experimentally estimated from the total consumption and from the initial metal value concentrations, using Equation (3).

γθ

= ∑=

nm

m m

m

m

m

mm

Tm AW

FAWFlc

lc1

(3)

Equation (2) may be algebrically transformed into Equation (4) (De Andrade Lima et al., 1998), which is analytically solved to give the individual metal (m) recoveries, at time t·∆τ originated from the size particles i, localized at layer j, when the recoveries at time (t-1·∆τ), the leaching concentration from layer j-1 and the individual concentrations of the metal species are known.

023 =+α+α+α mijtmijtmijtmijtmijt d'c'b' mijt (4)

Where:

+=

827

23 mijt

mijt

Zb ,

−=

4273 2

mijtmijt

Zc ,

+=

8273

mijtmijt

Zd

and

( ) ,mijt

,mijtmijtmijt KZ 1

32

1 2132 −− α−α−−τ∆=

Ore physical constraints, inhibiting the leaching solution to diffuse completely through the ore particles; gives rise to a passivation factor (θm),as defined by Equation (5).Such a factor has to be determined from laboratory experiments.

mmijt mijt' θα=α (5)

On the other hand, knowing the ore size fractions and assuming that they are homogeneously distributed within each ore, of the nl, layer, and considering, further, that at the time increments that Equation (4) is solved, there is no variations in the particle grade, as



231

well as knowing the metal species contents of each size fraction, thus, the global recovery, at each time increment of interest, in each layer, will be given by Equation (6).

∑=

α=αnf

iimijtmjt fL

1 (6)

Supposing that the nl layers of the heap do have the same mass, the global recoveries of each metal species, at each time increment, are given by Equation (7).

∑

∑

=

=

γ

γα=α nl

jmj

nl

jmjmjt

mt

LH

1

1 (7)

The residual content of metal in each layer of the heap may be calculated at each instant of time, from Equation (8).This is an extremelly important feature for S.D. Indicators.

( )mjtmjomjt Lr α−γ=γ 1 (8)

The leaching concentration in the solution that leaves layer j is calculated from Equation (9), whereas the concentrations of the metal species that leaves layer j are obtained from Equation (10).

( )[ ]∑=

−+ α−α

γ−=

nm

mjmtjmtm

HBHB

mHBjtjt LLlc

HSM

CC CNCN1

11 (9)

( )mjtmjtHBHB

mHBmjtmjt LL

HSM

CC MM 11 −+ α−α

γ+= (10)

The proposed algorithm considers that the lixiviant solution enters in the first layer (j=1) on the top of the heap, there remaining



232

for a time ∆τ=τ/n. Further on the solution is transferred to the next layer (j=2) and from this to the next until it reaches the last one (j=n). During the permanence of the liquid solution into each layer (j) Equation (4) is solved for each metal (m) contained in each size-fraction (i), taking into account the residuals of the metals (γr) and the composition of the solution (CCN and CM). After, Equations (5), (6), (8), (9) and (10) are used to update these concentrations and tenors.

3. SENSITIVITY ANALYSIS OF THE MODEL

In order to evaluate the effect of the variables from the model a numerical design of experiments was performed taking as measured responses a set of four responses that characterizes the preceding account time evolution curve, as shown in Figures 2 to 4. Those parametres are: t1/2 - helf life time of the heap (day) , ro - rate of recovery at the start of process (%/day), Cauin - gold concentration in the first drop of leached liquor (ppm) and tccn- time when start to flow nonreacted cyanide from the heap (day). A two level fractional experimental design (Plackett and Burmann, 1946) consisting of fourteen variables and twenty numerical experiments were developed. Table 1 shows the values for the height (+) and low (-) levels for the considered variables; such levels were so chosen taking into account reported values from literature. Table 2 shows the experimental matrix and responses for this arrangement. The obtained results were statistically analysed;also via cluster analysis and principal components analyses (De Andrade Lima et al., 1995 and Cassa and De Andrade Lima, 1997).



233

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100 120 140 160

Time (day)

Gol

d re

cove

ry (%

)

t1/2

tan λ = ro

Fig.2: Parameters utilized to characterize the performance of the

process (t1/2, ro).

0 .0

0 .2

0 .4

0 .6

0 .8

1 .0

1 .2

0 2 0 4 0 6 0 8 0 1 0 0 1 2 0 1 4 0 1 6 0

T im e (d a y )

Liqu

id g

old

cont

ent (

ppm

)

C Au IN


process (CAuin).



234

0 .00

0 .05

0 .10

0 .15

0 .20

0 .25

0 .30

0 .35

0 .40

0 .45

0 .50

0 2 0 4 0 6 0 8 0 1 0 0 1 2 0 1 4 0 1 6 0

T im e (da y)

Cya

nide

Liq

uid

cont

ent (

g/l)

tC C N


process (tccn).

Table 1. Data for the sensitivity analyses

VARIABLE LEVEL (-) LEVEL (+) DCN [m2 h-1] 3.5 x 10-7 7.0 x 10-7 ρ [g cm-3] 2.5 5.0 γAu [ppm] 2.0 4.0 θAu [%] 80 100 γAg [ppm] 250 500 θAg [%] 70 100 ClT [g kg-1] 0.5 1.0 HHB [m] 2.5 5.0 MHB/SHB [t m-2] 5.0 10.0 εHB [%] 45 75 σHB [%] 10 20 CCN [g l-1] 0.5 1.0 Q/SHB [l h-1 m-2] 6.5 13.0 R [mm] 20 40 nl 20 50



235

Table 2. Design of experiments and numerical results

Table 3 summarizes such sensitivity analysis for the proposed

model. As it can be seen, the number of heap subdivisions does not appreciably impact the responses, whereas diffusivity and residence time (here represented by porosity and solution saturation) are the variables that most affect the responses and thus the ores that govern the proposed mathematical model. Then, those variables can be used to calibrate the model, since they are not easily estimated or measured and alter substantially the results.



236

Table 3. Results of the sensitivity analysis

t½ ro CAuIN tCCN SA PCA-CA SA PCA-CA SA PCA-CA SA PCA-CA

DCN x * ρ x

γAu * x *

θAu * *

γAg

θAg lcT x * x * x * * HHB * MHB/SHB x * * εHB x * *

σHB x * x * CCN x * x * x * Q/SHB x * x * R x * * * nl SA : Statistical analysis of the design of experiments PCA-CA : Principal component analysis and cluster analysis results x : Significant in the statistical analysis with the confidence level of

90 % * : Significant in the principal component analysis and cluster analysis



237

4. CASE STUDY

The model was tested with published data from the Fazenda Brasileiro Mine operated by Companhia Vale do Rio Doce in the State of Bahia in Brazil (Siqueira et al., 1985). This mine utilizes oxidazed ore with gold content of 3.5 parts per million. The presence of sulfur and others leachable metals species are negligible.

Since no detailed data was available to carry out the simulation, the values of the size particle distributions, the height of the heap and the irrigated area, were taken as the nominal ones.

Since the effective diffusivity of the cyanide and the average residence time are the variables that most change the model responses they were used to the calibration. Table 4 shows the values for the variables used in the simulation.

Table 4: Input data for simulation runs

VARIABLE Heap P-1A DCN [m2 h-1] 5.0 x 10-9 ** ρ [g cm-3] 2.7 lcT [g kg-1] 0.50 γAu [g t-1] 3.45 θAu [%] 92.2 HHB [m] 5.0 * MHB [t] 31500 SHB [m2] 2333 * τ [day] 5.84 ** CCN [g l-1] 1.5 Q/SHB [l h-1 m-2] 10.7 R [mm] 9.525* nl 25 * nominal values ** calibrated parameters



238

0 10 20 30 40 50 60 70 80 90 100 110 120

0

2

4

6

8

10

Time (day)

Gol

d co

ncen

tratio

n (p

pm)

Companhia Vale do Rio DoceHeap number P-1A

Observed data

Calculated data

0 10 20 30 40 50 60 70 80 90 100 110 120

0

20

40

60

80

100

Time (day)

Gol

d re

cove

ry (%

)

Companhia Vale do Rio DoceHeap number P-1A

Observed data

Calculated data

Fig. 5. Comparison between simulated results and experimental

data for the simulation of an industrial heap.



239

The results of the simulation are shown in Figure 5. As seen, there are some unconformites although samall between the actual and simulated results that may be credited to the oversimplification already mentioned, i.e., no consideration of the size distribution, the surface average area, the average height and the radial and the axial dispersion of the flow. However, the simulated curves are relatively close to the real ones, except at the beginning of the leaching process, which may be explained by the limitation of the flow model that was utilized and to the no consideration of the flow of the solution in the impervious surface of the heap. In addition the actual gold concentration values in the leaching solution are maintained on the order of 0.5 to 1 parts per million, due to the cyanide recycle with residual gold.

5. CONCLUSIONS

Heap leaching processes for gold ores may be reasonable described by a model in which plug flow and diffusion control kinetics are considered for the heap and for the reaction ore/cyanide, respectively.

The analytical solution, for each time interval, of the shrinking core model gives robustness to the model.

The effective diffusivity of the cyanide and the average residence time are the calibrating parameters of the model. Also, they have a quite obvious environmental implication.

The development of correlations, that relates the average residence time of the solution through the heap to the operational parameters, as well as, the utilization of the real size distribution, the average heap surface, the average heap height and a diffusive model for the flow will definitly improve the precision of the simulation results; however, little is expected in improving its accuracy, due to the robustness of the model per se.



240

The results shown are good indicators for representing the process performances and might, thus, be utilized as starters for decision-making procedures targeting the maximization of the environmental capital represented, in this case, by the heap itself, its chemical species and its solutions flow .

Interesting to stress the readly assessed individual consumption of cyanide, for each metal species of interest, in a given time period,as well as the eventual inhibition of leach solution diffusion, thus resulting in the possibility of building up environmental indicators.

Notation

AWm - Atomic weight of the leachable metal m

CCNtj - Concentration of the free cyanide in the solution that enters in the layer j in time t

CMtjm - Concentration of the metal m in the solution that enters in the layer j in time t

CMRt(nl+1)m - Concentration, real, of the metal m in the pregnant solution in time t

Dcn - Effective diffusivity of the cyanide in the ore particles

Fi - Frequency of the particles in the size fraction i

Fm - Stechiometric factor for the cyanidation of the metal m

HHB - Average heap height

lcT - Total lixiviant consumption

lcm - Lixiviant consumption by the metal m

MHB - Heap weight



241

Nf - Number of size fractions

nl - Number of subdivisions

nm - Number of leachable metals in the ore

Q - Rate of irrigation in the heap

Ri - Average radius of the ore particles of the size fraction i

SHB - Average heap area

t - Time

Tmax - Maximum time for the leaching simulation

wj - Weight of layer j

wji - Weight of the ore particles of the size fraction i located in the layer j

Greek letters:

αtjim Corrected recovery of the metal m, contained in the size fraction i, of the layer j in the time t

α'tjim - Recovery of the metal m, contained in the size fraction i, of the layer j in the time t

αRtm - Real global recovery of the metal m in the time t

αLtjm - Recovery of the metal m, contained in the layer j in the time t

αΗtm - Global recovery of the metal m in the time t

∆τ - Average residence time of the solution in a layer of the heap

εHB - Heap porosity

γjim - Concentration of the metal m, contained into the size fraction i, of the layer j

γjm - Concentration of the metal m, contained into the layer j



242

γm - Average initial concentration of the metal m in the ore

γrtjm - Residual concentration of the metal m, contained into the layer j, in the time t

θm - Maximal recovery by leaching of the metal m contained in the ore

ρ - Ore density

σHB - Heap saturation

τ - Average residence time of the solution in the bed of the heap

Subscripts:

t - Index of the time

j - Index of the layer

i - Index of the size fraction

m - Index of the lechable metal

Acknowledgments

One of the authors (L.R.P. De Andrade Lima) thanks to the Conselho Nacional de Desenvolvimento Científico e Tecnologico of the Brazil (CNPq) for the award of a schollarship throughout this project.

References

BOX,J.C. and YUSUF,R.,1984.Simulation of heap and dump leaching process.Proceedings of the Symposium on Extractive Metallurgy,Melbourne,Australia,p.117-124



243

BOX, J.C., and PROSSER, A.P., 1986. A general model for the reaction of several minerals and several reagents in heap and dump leaching. Hydrometallurgy, No.16, p.77-92.

CASSA, J.C., and DE ANDRADE LIMA, L.R.P., 1997. Screening variables in complex systems: A comparative study, Proceedings of the XX International Mineral Processing Congress, Aachen, Germany, Vol. 1, p. 433-444.

DE ANDRADE LIMA, L.R.P, 1992. Simulação da lixiviação em pilhas de minérios auríferos, M.Sc. Thesis, Federal University of Rio de Janeiro, Brazil, 235pp.

DE ANDRADE LIMA, L.R.P., VILLAS-BÔAS, R.C. E KOHLER, H.M., 1995, Análise de sensibilidade de modelos usando as técnicas de cluster analyses e Plackett-Burman, In: XVI Encontro Nacional de Tratamento de Minérios e Hidrometalurgia, Rio de Janeiro, Brazil

DE ANDRADE LIMA,L.R., VILLAS BÔAS, R.C. and KOHLER, H.M., 1998, Mathematical Modeling of Gold Ore Heap Leaching, International Symposium on Gold Recovery, Montreal, Canada, CIM, (in press).

DIXON, D.G. and HENDRIX, J.L., 1993. A mathematical model for heap leaching of one or more solid reactants from porous ore pellets, Metallurgical Transactions, No.24B, p.1087-1102.

FROMENT, G.F. and BISCHOFF, K.B., 1979. Chemical Reactor Analysis and Design, John While and Sons, New York, 765pp.

HAMMOND,A. Et al,1995.Environmental Indicators: A Systematic Approach to Measuring and Reporting on Environmental Policy Performance in the Context of Sustainable Development, World Resources Institute,may,p.11



244

PROSSER, A.P., 1988. Simulation of gold heap leaching as an aid to ore-process development, Proceedings of the Precious Metals'89, p.121-135.

ROMAN, R.J., BENNER, B.R., and BECKER, G.W., 1974. Diffusion model for heap leaching and its application to scale-up, Trans. AIME, No.256, p.247-256.

SANCHEZ-CHACON and LAPIDUS ,1997. Model for heap leaching of gold ores by cyanidation, Hydrometallurgy, No. 44, p.1-20.

SIQUEIRA, L.T., MADEIRA, R., FIUZA, M., NAKAMURA, S., REINHARDT, M.C. AND TRANCOSOS, I., 1985, Projeto Ouro Bahia - "Fazenda Brasileiro" (CVRD), In: I Simposio Internacional do Ouro, Rio de Janeiro, Brazil, p. 1-22.

VILLAS-BÔAS,1994. Materials Production and the Environment. Hydrometallurgy ’94 , Chapman & Hall, Suffolk, p.107-121.

Versão final 17:40 19.06.98

III. Country Case studies



247

TOWARDS SUSTAINABLE DEVELOPMENT INDICATORS FOR THE MINING SECTOR (1ST STAGE)

Verónica Alvarez Campillay Chilean Copper Comisión

Environmental and International Affairs Unit (UAIMA)

EXECUTIVE SUMMARY

The objective of this study is to develop criteria to generate a debate with the stakeholders (mining companies, Government, ONG’s, and community) from that there arise indicators that allow to measure the contribution of the mining sector to Sustainable Development in the medium and long term.

A preliminary diagnosis of the mining companies associated with the Mining Council threw for result that these have the capacity and willingness to implement the concept and initiatives of Sustainable Development. Therefore, it would remain to determine like to measure his real contribution in economic, social, and environmental terms, to generate and to implement the mechanisms that allow the operation of this concept.

Therefore, the contribution of this document is to propitiate the production and application of a new instrument, named Sustainability Report, to which the big mining companies adhere in voluntary form in Chile, and which across the consensus, between the stakeholders, a line is constructed bases, of that the most representative indicators flow to measure the advances of the sector in Sustainable Development. For these effects, there propose 19 indicators that cover the dimensions economic, social, of environment and institutionally of the sustainable development and that will constitute the base of the debate, which will be an object of the process of the second stage of this study, in which there will measure



248

up the effective contribution of the mining sector to the Sustainable Development.

INTRODUCTION

The aim of this study is to develop criteria to generate a debate with the stakeholders (mining companies, Gobierno, ONG's and Community) that allows to construct the line bases of indicators, with which to measure the contribution of the mining sector to the Sustainable Development (DS) in the medium and long term.

The debate will be more wealth-producing if it delivers the elements needed for the design of political public orientated to neutralize potential threats to the commerce of mineral products, specially copper products, that constitutes the principal resource for the economic growth of the country and therefore, for its long term sustainability.

In methodological terms, this work is based on the limits of the United Nations and the Global Reporting Initiative for the design of sustainability indicators.

In this context, this report is divided in six sections according to the following contents:

• Section I: SD conceptualization of the across the presentation of the different trends and/or views that have arisen worldwide to interpret its application, and the connotation that has for Chile.

• Section II: Analysis of the SD Country on the base of studies fulfilled by international organisms, specifically, the World Bank and the Economic World Forum.

• Section III: Analysis of the economic importance of the mining sector in Chile.



249

• Section IV: Analysis of the criteria and critical elements of the mining industry and its implications in the SD in Chile.

• Section V: it is divided in two central parts. The first one contains a Diagnosis of mining companies associated with the Mining Council A.G.1 respect of the form that implement SD's concept. The second part, the elements are delivered to considering to generate a debate of the stakeholders, that is to say, there proposes the production of a Sustainability Report, of way of constructing the line it bases of indicators that allow to measure the advances of the mining sector as for sustainability. Definitively, to motivate to the mining companies and stakeholders for consensuar relevant indicators to measure the sustainability.of the sector.

• Section VI: Conclusions and implications of the topics approached in this document that allow to determine the steps to continue to reach the sustainability of the mining sector.

1. GENERAL PRECEDENTS ON SD

1.1. SD Definition

The countries have adopted in universal form the definition of SD's concept contained in the Report of the World Commission for the Environment and Development of 1987, more known like formless Brundtland.

From this moment all the initiatives on this matter have centred, as it saying indicates report, in to reach " the development 1 The Mining Council A.G. is a trade union that gathers large-scale Chilean mining

companies of copper, gold, and silver, as: Compañía Minera Maricunga, Noranda, Compañía Minera Zaldívar, Compañía Minera Quebrada Blanca S.A., Barrick Chile, Compañía Minera Escondida, Compañía Minera Collahuasi, Corporación Nacional del Cobre de Chile, Compañía Minera Disputada de las Condes, Compañía Minera El Abra, Compañía Minera Carmen de Andacollo, Compañía Minera El Indio, Compañía Minera, Mantos de Oro.



250

that satisfies the needs of the present without putting in danger the capacity of the future generations to satisfy their own needs ". To this respect, the SD implies supporting the quality of general life, allowing a constant access to the natural resources and to minimize the environmental impacts2 in the time.

1.2. Approaches About SD

The economic theory delivers other ways of conceptualizing the SD. There are two extreme trends, the called Anthropocentric optimists and the pessimists named Ecocéntricos. In the center of both approaches one finds the Weak Sustainability (Anthropocentric current) that gave origin to the Environmental Economy and the Strong Sustainability Fuerte ( Ecocéntrica current) on which the Ecological Economy3 is based.

Weak Sustainability

This vision of the SD postulates that across the economy and the technology is possible to solve the problems that the action of the man causes in the environment. The Environmental Economy emphasizes that the economic activities that generate externalities environmental can be solved by means of a suitable assignment of the resources, though it implies the intervention of the State.

The postulates that base this vision are the intertemporary efficiency and intergenerational equity, that is to say, to support in the time the same level of revenue, named Suatainable Revenue, of way

2 Characteristics defined in the document " Towards a Sustainable Development.

Community program of Politics and Performance as for Environment and Sustainable Development ", Commission of the European Communities, Headquarter XI - Environment, Nuclear Security and Civil Protection. Brussels - Luxembourg, 1993.

3 Document "Conceptualization and Strategic Analysis of the environmental international subject matter from the perspective of the insertion of Chile and its mining interests", elaborated by the adviser Mr. Juan Carlos Guajardo for Cochilco, year 2001.



251

of reaching the same level well-being per cápita doing that stock added of the capitals: natural, human being and produced by the man they are kept constant in the time.

In practical terms, it implies valuing the natural, non renewable resources, as the minerals, and looking for ways of quantifying and to offset the damage of the environment, to support stock of the constant types of the capital in the time.

Strong Sustainability

This ecological approach of the economy, unlike the previous one, emphasizes the environmental irreparable deterioration that they produce the productive activities, especially, regarding of the energetic availability. His postulate is to respect the balances of the nature and to reach the sustainability supporting the natural constant capital. In an end, this approach might imply the prohibition of the exploitation of the resource.

Both approaches recognize the existence of types of the capital, as shows in the figure 1. The pyramid shows the relation that exists between the economy and the nature and its transformation in other types of the capital: natural, the created one for the man or produced, human and social.

In the base of the pyramid there are the flows and stock of the nature, that is to say, the natural resources, the services of the ecosystems and the natural beauty and the aesthetics. The natural resources are all those who come from the nature as water, flora, fauna, fossil fuels and metals and minerals.

The action of the man transforms the natural capital into the manufactured capital, named also cardinally produced. In this category there are grouped the factories, the machinery, housings, infrastructure, food, wardrobe, and in general, all the goods and services produced in the economy.



252

Men’s action transform natural capital into manufactured capital also named produced capital. In this category group factories, machinery, housing, infrastructure, food, clothing, and in general, any goods and services produced at the economy.

By means of the political economic ones, there takes place a transformation of the produced capital, giving origin to the human and social capital. The human capital represents the skills, mental health and physics and education of the individuals. In turn, the social capital corresponds to the form in which the persons are related, as the communications, the channels of participation and others.

The rising interaction of all the types of the capital leads towards to improve the standard of living, desirable condition for the society, well-being called, that contains ethics and qualitative upper conception for the society, represented by values as the self-respect, the transcendency, the happiness, the harmony of the communications and the identity inside the society.

The last consequence of this process of transformation of the different types of the capital, it is to harmonize the efficient use of the natural resources with the economic and social development of way of reaching in the end of the pyramid the well-being of the society.



253

Figure 1 - CAPITAL PYRAMID4

1.3. Historical International Precedents

The Earth Summit, held in Rio de Janeiro (Brazil) in 1992, set an important milestone with the creation of the United Nations Sustainable Development Commission, whose goal was to strengthen Sustainable Development concept previously conceived.

This world association is based on the premises of the resolution 44/228 of the General Assembly of December 22, 1989, approved on the Conference of the United Nations on the Environment and the Development, accepting the Nations that it is necessary to focus of balanced and integral form the questions relative on the environment and on the development.

4 Herman Daly diagram presented in the document MINERALS AND METALS

POLICY OF THE GOVERNMENT OF CANADA, Associations for a Sustainable Development, Government of Canada, 1996.



254

In this instance, there were approached the problems of the economic growth of the countries, the conservation of the environment and the social equity, all which materialized in a program concrete called Agenda 21, which it contains political limits to being implemented by the countries.

The Agenda 21 is a manual of reference for the definition of political governmental and managerial actions, which it contains, from the social, economic point of view and environmental way, the procedure tending to the achievement of the SD, constituting a guide in order that the countries to consider in its decisions the above mentioned concept.

To propitiate an ecological effective change, the Agenda 21 puts emphasis that the determinant variables are: population, consumption and technology, to this respect, the political ones, strategies and actions that are implemented must guide to the countries exactly to reaching a permanent balance between the above mentioned variables.

From this perspective, the Agenda emphasizes in the SD as the way to fight against the poverty and the destruction of the environment, to reduce the existing gap in these areas between the developed countries, in development and the underdeveloped ones.

It involves besides, to improve the systems of information and environmental management, to value the natural resources and the environmental, like that costs also to get to the most deprived sectors of the planet the access to resources and well-being, compromising to the nations industrialized with the financing of these purposes.

In synthesis, the Agenda 21 urges to giving priority to its principles in the agenda of the governments to adopt national strategies for the SD, with the participation of all the stakeholders



255

(governments, companies, not governmental organizations and the public opinion in general).

Under these premises, the Agenda 21 defines the following schedule of four sections in order that the countries reach their objetives.

Section 1: Social and Economic Dimensions

In them there are approached the international aspects that will allow to accelerate the SD, the limits of politics for the struggle against the poverty, the effect of the patterns of consumption and of the growth of the population.

Equally, the actions are emphasized to protect and to foment the human health, the education and in general, the development of the human resources, considering the necessary elements to integrate the environment to the decisions of the stakeholders.

According to, the actions for protecting and promoting human health, education, and in general, human resources development, considering the necessary elements to integrate environment in the decisions of the stakeholders.

Section 2: Resources Management and Conservation

This section they treat the topics that affect the resources of the environment, as land, air, water, biodiversity and ecosystems. These aspects are approached from the perspective to manage efficiently the use of these resources.

Section 3: Strengthening of the Role Social Groups

The development of the social groups rests on the strengthening of his roles, whose common aim is to reach the DS.

Are considered to be social groups the workers, the young men, the indigenous communities, the governmental and not



256

governmental organizations, the unions, and any another form of social group.

Section 4: Means of Execution

It is recounted to the actions, resources and instruments to achieve the SD, putting emphasis in the systems of information, processes for capture of decisions and juridical mechanisms. Special mention is realized to the creation of the scientific knowledge and the transference of technology as principal axes.

Each of the previous sections gave origin to a methodological system designed by the United Nations, to measure, by means of Indicators, the SD.

1.4. Sustainable Development In Chile

In Chile, the Base Law of the Environment (Law 19.300/94) defines the concept of sustainability as " the supported and as improvement of the quality of life of the persons, as on own measurements of conservation and as of the environment, of way of not compromising the expectations of the future generations".

In the particular case of Chile, which economy depends in 47 % of the exports of copper and by-products distributed to important markets of Asia (47 %), Europe (30 %) and America (22 %), the mineral resources defined as natural non renewable resources acquire, from the perspective of the SD, a connotation more important since they contribute in significant form to the economic present development and future of the country.

The minerals as non renewable resources take associated the notion of corresponding to a limited stock that might in the future become exhaustion, which would constitute a threat for the subsistence of the future generations and thus, of the sustainability of the sector.



257

On the other hand, the substitution of minerals for renewable resources or other one capital forms, the process of recycling mineral, as well as new technological changes in the processes of exploitation and processing of these, they grant an optimistic view respect of the well-being of the future generations, extending, for the side of the production, the concept of "finite supply ", and adjusting this one to the patterns of consumption, founded also in the concept of sustainability.

Nevertheless, this optimism cannot be so beneficial for countries as Chile, which exports depend in significant form of the production of raw materials - principally copper -, due to the constant international pressures to which the mining sector is submitted in the marketing of its products, as example of it there is the Agreement of Basle, Climatic Change, Content of Copper in the Drinking Water, Protocol of Heavy Metals, etc.

To offset this negative effect and to take advantage of a potential threat that might take place for the globalization of the environmental restrictions to the not ferrous metals, Chile must make its position properly clear to the international community, taking up office and internal in its production SD's concept.

It is precisely in a scheme of mining industry contributing the sustainability, it is where the impacts and economic and social benefits that it generates the sector must be approached on the base of a model of intergenerational equity, in which the current condition of the different dimensions of the sustainability they are conceptualized adequately.

For it, SD's indicators are instruments that allow to measure the relationships between economy, environment and society, identifying and monitoring the problems of the sector in the above mentioned areas so that in the accomplishment the countries improve the courses of action towards the development sustainable.



258

Environment policy for the SD establishes that must exist a balance between economic growth, social equity and quality of the environment, in conformity with a dynamical balance, in which SD's indicators are the reflex of the condition of advance of the mining sector from the multidimensional perspective of the SD.

Clearly, the environmental commanding regulations worldwide, they have led to the different sectors of the economy to be anticipating to the application of the most restrictive legislations, in consequence, have stuck fast to voluntary agreements and codes of good practices in his environmental management. In case of the mining sector an example of it they are: the Environmental Impact Appraisal System (SEIA), the Clean Production Framework Agreement and the ISO 14.000 Certification. It these are instruments that voluntarily have assumed the mining companies as element more of his management.

In the country, the application of international procedure in products and processes it is not very developed, being few sectors and companies that have requested to the National Institute of Normalization the crediting under procedure ISO 14.0005.

Most worried by the topic they are the forest6 sector and the mining7 sector, which have jointly that exploit natural, renewable resources the forest sector and non renewable the mining sector. 5 The National Institute of Normalization (INN) entrusts developing and to manage

the affairs the processes of technical normalization, the crediting of the certifications and the promotion and use of instruments to improve the competitiveness of the productive processes of the country. For it, one possesses the National System of Crediting in which they take in voluntary form the companies.

6 Companies certified by ISO 14.001 in the forest sector are: Licancel, Forestal Santa Fé, Forestal Millalemu, Forestal Monte Aguila and Bosques de Chile: In FSC the company is certified Terranova.

7 ISO 14.000 certified companies in the mining sector are: Compañía Minera Escondida, Compañía Minera Candelaria and Compañía Minera Collahuasi. Codelco-Chile is under certification process.



259

Specifically, in crediting procedure ISO 14.000, the forest sector has a participation of 38% in the whole of companies certified in the country, followed by the mining sector with 23%.

It is important to emphasize that the crediting of international procedure of quality and constant improvement8 has been implemented in the country as a voluntary process on the part of the companies, motivated for achieving a better positioning of his products opposite to international standards increasingly restrictive in environmental matter. For it, the sectors forest and mining have incorporated to his management new and modern technologies, compatible with the protection to the environment and with the SD.

The world trend is Agreements to join commercial through Agreement of Free Trade, beyond the World Trade Organization (WTO). In this scheme, it is important the economic bilateral relationship, the trade of goods, services and the investments for the consolidation of such agreements. Nevertheless, the labour and environmental criteria emerge as sophisticated barriers to the trade, subordinating the approval of the Agreements to the fulfilment of these criteria, particularly, the established ones for the developed countries.

In this context, Chile has getting to support labour identical conditions to the criteria of the International Labour Organisation (ILO) and environmental international standards that guarantee the protection of the environment, thinking that the labour and environmental procedure arise as non-tariff barriers to the trade of its products, constituting the above mentioned one of the main obstacles that the country must overcome to advance in the path of the sustainability.

8 It refers to ISO 9.000 (quality) international norms and ISO 14.000 (continuous improvement).



260

At the same time, the mining sector has showed an attitude inclined to cooperate with the community supporting social initiatives, and in environmental terms, it has worried about taking refuge in voluntary agreements and to prioritize the environmental management.

2. DIAGNOSIS OF THE SUSTAINABILITY COUNTRY

The diagnosis of the sustainability country is inferred from the results that they throw the studies realized by the World Bank and the Economic World Forum.

2.1. Indicators of the Sustainable Development 1999–World Bank

In the analysis of the sustainability, the references of Chile are the industrialized countries, particularly, The United States and Japan. For it there have been extracted from the study some of its main indicators.

A) National Accounts Indicators

It measures the impulse of the level of opening of the country and of the condition of the economy, is related to the development sustainable in the sense that captures the effects of the international cooperation and reflects the patterns of production and consumption of the population. Nevertheless, it is not a direct measurement of the SD, provided that it does not consider the environmental and social costs of the production.

In general, Chile has a good position respect of its the references countries. The domestic brute saving as percentage of the Gross National Product (GNP) is located to the country in levels near to that of the industrialized countries. On other hand, in the opening to the foreign trade, though the country does not reach the levels of The United States, it is an economy fewer protectionist than Japan. The fact that the principal exports of the country correspond to raw



261

materials instead of products with major add value, since it is the case of The United States, it influences the per cápita GNP, which is far from the levels achieved by the industrialized countries. In relation to spend of education as percentage of the GNP, proxy of the formation of the human capital, Chile has experienced an improvement in the time, but it is kept distantly of the industrialized countries.

b) Biodiversity

Biodiversity concern dates from 1940, with the subscription of the Convention of Washington for the Protection of the Flora, Fauna and Scenic Natural Beauties of America. Since then, they have signed other important international, such agreements as the Convention for the Biological Diversity 9. The biodiversity has acquired major force, joining to the environmental regulation. In effect, the Base Law of the Environment establishes lines of action for the preservation of the biodiversity and its use sustainable to national level.

One of the principal instruments of the biodiversity is the National System of Wild Areas Protected from the State, SNASPE10. In the year 1999, the SNAPE was representing 18,9 % of the whole of the continental surface of the country.

In spite of the advances of the country in to determine the SNASPE, to the date there is no a cadaster ended on the ecological populations and biotics existing in the wild protected areas. Comparatively, taking in consideration the surface of wild areas protected from The United States and Japan respect of Chile, our country exhibits a bigger surface.

9 The Government of Chile signed this convention in Rio de Janeiro, Brazil on

June 5th, 1992. 10 Created by Law Nº 18.362, juridicial tool subordinated to Law Noº 18.287

commencement.



262

c) Emissions and Contaminants

Measuring only the emission of CO2, there is inferred that Chile presents, to industrial level and per cápita, lower levels of this pollutant to The United States and Japan. It is reasonable that like that, because Chile has a volume of industries very low than its references, which influences the emission of CO2.

In the study "Inventory of Gases Emission of Greenhouse effect, Energy, Industrial Processes and Use of Solvents", realized, in December, 2000, for the Program of Investigations and Energy (PRIEN) with Cochilco's collaboration, distinguishes itself that the principal emission of CO2 in the country comes from the liquid fuels derived from the oil, followed of the solid ones, joining besides, that in terms of industrial processes the said emission comes from the industry of the cement, industry of the steel and iron.

Respect of the emission of SO2, there is specified that the mining sector contributes, in its process of refining copper, with 98% of the total emission. In 1988, SO2 emitted in the refining mineral of copper it was of 1.988,1 thousands of metric tons, this it diminished significantly in 1998 totalizing 1.368,3 thousands of metric tons11.

d) Sanitary Conditions and Water Resource

In the urban zones, the sanitary conditions of Chile are inside the standards of industrialized countries, The United States and Japan. On the other hand, in the rural areas the coverage is considerably minor, the geographical structure of the country is one of the factors that affect in the high cost that implies extending the sanitary networks, affecting the levels of this indicator. In terms per cápita, problems would not exist with the water availability, which is

11 Background taken from the document “Greenhouse Effect Emissions, Energy,

Industrial Processes, and Solvent Use Inventory, Chile 1986-1998”, carried out by Energy Research Programme (PRIEN), Universidad de Chile, by order of the National Environment Commission (CONAMA), December 2000.



263

reflected in the levels that it exhibits the country, for on the standards of The United States and Japan. Nevertheless, the availability of the resource waters down is not uniform along the national territory, the regions of the north of Chile problems present in the availability of the resource, situation that does not happen in the rest of the regions of the country.

For what productive activities as the mining industry, which operations are located in the north of the country, the availability of the water resource is one of the principal determining ones for the sector, in consequence, the efficiency in the use of the water constitutes one of his prior goals.

e) Communications and Technology

The communications and the technology are keys variables to mark difference between the industrialized economies, the expanding economies and the underdeveloped ones. In effect, the such indicators as density of telephonic lines and number of computers, reach in the industrialized countries levels significantly superior to Chile.

f) Demographic and Social

In the demographic and social indicators, Chile presents standards very similar to Japan, but distant of The United States, specially, in the rate of infant mortality.

The following table summarizes the level reached in each of the indicators before analyzed for Chile and comparatively for The United States and Japan.



264

Table 1 - Comparative Analysis of Sustainability Indicators Chile v/s Industrialized Countries

Indicators Chile United States Japan National Accounts 1999 - Per capita GNP (Atlas

method, nominal US$) - Gross Domestic Savings

(GDP %) - Exports (GDP %) Education Expenses

4,740

23.0% 29.0%

3.3%

30,590 18.4% 43.7%

4.7%

32,117 27.7% 10.4%

4.7%

Biodiversity - Threatened Mammalian

Species/total - Threatened Birds/total - Protected areas %/ total area

23%

7% 18.9%

7% 8%

13.4%

28% 14%

6.8%

Emissions and Contaminants - Total CO2 industrial

emissions (,000 kt) CO2 emissions (per capita MT) Data 1998

60.1 1.05

5,467.1

5.41

1,204

.2 2.47

Water and Sanitary Conditions - Rural drinking water

access/Population - Urban drinking water access/

Population - Per capita fresh water

resources (m3/inhab.)

66% 99%

67,793

100% 100% 8,906

- -

3,397

Communications and Technology - Telephone Lines (per 1.000

population) - Personal Computers (per

1.000 population)

149

38.8

655.0 360.8

664.0 510.5



265

Table 1 - Comparative Analysis of Sustainability Indicators Chile v/s Industrialized Countries (cont.)

Indicators Chile United States Japan Demographic and Social - Population (millions) - Population Growth Rate

(%) - Life Expectancy (years) - Infant mortality (per 1.000

born alive) - Illiteracy Rate (%)

15

1.3% 75.5 10%

4.4

126.6 0.1% 80,6

3.6% -

278.8 1.2% 76,9 8%

-

Source: World Bank Data year 1999

2.2. Environmental Sustainability Index 2001 – World Economic Forum

The Economic World Forum realized a study to measure the environmental progress in a universe of 122 countries, generating "Sustainability Enviromental's Index", named ESI, by means of the response of these countries to 22 indicators that shape the following basic lines of analysis:

• Environmental system

• Reduction of the environmental pressure

• Reduction of the human being vulnerability

• Social and institutional capacity

• Capacity of response to the global demands from other countries for managing environmental problems.

The ESI has a maximum of 100, when the country has achieved a high level of sustainability environmental and a value of 0 when present difficulties to face its problems of the environment.

In the Table 2, is observed that Chile obtained an EIS of 56.6, placing in the place 31, that is to say, in the range interval - high



266

place of the universe of 122 countries. Nevertheless, between of the countries of Latin America, it is located in the average, distantly of Argentina and Uruguay, which EIS belonged to 62.5 and 64,6 respectively.

In relation to other regions, Chile is located far from Europa's average and North America, that for the most part they reached a top EIS to 70.7, value that well might constitute the norm to which Chile should aspire in the next years.

With regard to the Asian countries and of the Easterncountries, the situation of Latin America and especially of Chile, it is more advantages, placing in the most top end of the EIS of the above mentioned countries.

Table 2 - World Environmental Sustainability Index

Regions EIS (Region Average)

Maximum Minimum

Europe 63.9 80.5 44.1 North America 65.1 78.1 45.3 Latin America and the Caribbean

52.7 64.6 24.7

Chile 56.6 - - Eastern Block 49.1 63.2 29.6 Asia 44.8 60.6 35.7 Source: Document “Environmental Sustainability Index 2001” of the World Economic Forum, Annual Meeting 2001, Davos, Switzerland.

On having separated into its elements Environmental Sustainability index in the basic lines, is observed that Chile has an average performance in the components of environmental systems, denoting its worry for supporting an acceptable level, without damaging the environment, 49 th being located in the place º of the ranking (Table 3).



267

Table 3 - Environmental Sustainability Index in Chile

Basic Lines Value Position Max. Mín. Environment Systems 53.3 49º 91.2 12.2 Reduction of the Environmental Pressures

58.6 35º 76.8 10.0

Reduction of the Human Being Vulnerability

65.2 53º 83.0 1.7

Institutional and Social Capacity

60.6 26º 92.3 18.1

Global Cooperation 43.2 81º 80.6 11.4 Source: Document “Environmental Sustainability Index 2001” of the World Economic Forum, Annual Meeting 2001, Davos, Switzerland.

Equal situation takes place in the component that measures the satisfaction of the basic needs of health and nutrition, placing to Chile in the place 53rd º. On the other hand, a better standard presents in the actions tending to reduce the pressures to the environment, specifically, the pollution of the air and water, placing in 35th .

With regard to the institutional and social capacity measured by the indicators of: Science and Technology, aptitude to debate the environmental topics, regulations and management of the environment and commitment of the private sector, Chile presents the best standards, placing in the range of major sustainability (26th place).

Nevertheless, in global cooperation, the country shows few advances of international commitment, for example in the Convention of Vienna and Protocol of Montreal and in the constitution of funds for the protection of the environment, it placing in the place 81st .

In general, as are inferred of the Table 4, the results obtained by Chile indicate that even they reduce tasks for doing in



268

environmental sustainability, principally, in matters as: quality of the air, biodiversity, pollutants reduction to the water, reduction of wastes, human basic needs, participation, global financing and commitment with the international regulations.

The most favorable results, on the other hand, obtained principally in the indicators water quantity, quality of the water, regulation and environmental management, reflect the worry of the country for these matters.

Table 4 - Environmental Sustainability Indicators for Chile Indicators Value Position Max. Mín. Air Quality -0.69 110º 1.62 -2.58 Water Quantity 0.56 26º 2.37 - 1.27 Water Quality 0.19 39º 1.85 - 2.25 Biodiversity -0.70 103º 1.65 - 3.37 Soil Systems 1.06 10º 1.70 - 1.75 Air Contamination Reduction 0.54 33º 1.36 - 2.02 Water Contaminants Reduction -0.19 79º 1.06 - 2.20 Ecosystem Contaminants Reduction

0.33 43º 1.33 - 1.63

Wastes Reduction 0.05 75º 1.31 - 2.63 Pressures to Population Reduction

0.30 54º 1.08 - 2.26

Basic Human Needs 0.02 71º 0.97 - 2.33 Environment Health 0.77 36º 0.97 - 2.42 Science and Technology -0.30 55º 2.61 - 1.46 Debate Ability 0.05 55º 2.41 - 1.44 Regulation and Management 0.66 18º 1.54 - 1.32 Private Sector Responsibility -0.20 46º 2.12 - 0.89 Environment Information 0.66 26º 2.25 - 1.44



269

Table 4 - Environmental Sustainability Indicators for Chile (cont.)

Indicators Value Position Max. Mín. Ecoefficiency 0.47 49º 0.95 - 2.16 Public Choice Failure Reduction

0.54 26º 2.25 - 1.54

International Commitment 0.12 51º 1.58 - 1.78 Participation and Global Financing

-0.18 87º 2.34 - 1.17

International Regulations Application

-0.46 94º 1.74 - 1.63

Source: Document “Environmental Sustainability Index 201” of the World economic Forum, Annual Meeting 2001, Davos, Switzerland.

In short, Chile has reached in the last years an average degree of environmental sustainability (EIS = 56.6), which reflects that even stay hanging tasks to reach the levels of the industrialized countries.

3. ECONOMIC IMPORTANCE OF MINING SECTOR IN CHILE

In the period 1991-2000, the mining GNP grew to a rate annual average of 7.4 %, higher to the growth of the GNP country, which was of 6.4%, as it shows in the Tablee 5. His average participation it was of 8.7 % of the GNP country.



270

Table 5 - Gross National Product (Millions of pesos 1986)

1991 2000 (*) Growth Rate annual average

1991-2000

Country GNP 4,841,447 8,493,402 6.4 %

Mining Sector GNP 450,532 855,415 7.4 % Source: Central Bank of Chile

Note (*): provisory cifres

In the figure 2, is observed that the trend showed by the mining sector in the period 1991-2000, demonstrates a behavior more fluctuating than the growth of the GNP country. In effect, between 1992-1994, the mining GNP had a less variation to the registered one as the GNP country. Between 1996-1998, this trend was reverted due to the materialization of important mining projects, financed with external resources. Of 1998 in forward, the mining activity supports its pace of growth but to lower rates. In 1999, on the other hand, the Asian crisis, that appeared behind of one year, it affected negatively the price of the copper and of other metals, as what the mining GNP had one counter cyclical evolution respect of the GNP country. Between 2000-2001, the effects of the Asian crisis were sharpened by the world recession, to cut down the increase of the price of the metals, in accordance with that this variable is narrowly correlated with the economic growth of the countries that affects its consumption of copper.



271

-5

0

5

10

15

20

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

PIB Minero PIB País

Source: Chilean Copper Commission

Figure 2 - GNP Annual Variation Rates, Period 1991-2000 (%)

The project materialization mining of great importance affected in the behavior of the mining GNP until 1999, favored by the economic stability of the country and the existence of a juridical frame and transparent tributary, who stimulated the financing of mining projects via foreign investment.

In the period 1991-2000, foreign investments were authorized for US$ 59.3 billions, absorbing the mining industry 34% of them. In turn, resources materialized in this sector for US$ 11.9 billions, which represents 32% of the total country (to see figure 3).



272

Source: Foreign Investment Committee Note: The percentage corresponds to the region participation in the country total. Figure 3 - Foreign Investment Materialised in Mining, 1991-2000 (Millions of US$)

During the period 1990-2000, the mining sector absorbed, in average, only one 1.8 % of the workforce occupied with the country, which demonstrates that it is a capital intensive sector, with a highly qualified employment, at least in the segment of the great mining industry of the copper

During the period 1990-2000, mining sector absorbed, as an average, only 1.8% of the work force used in the country. This fact shows that it is an intensive capital sector, with a highly classified employment, at least in the segment of large scale copper mining.

Different it is the situation in the segments of median and small mining industry. In them the employment is strongly influenced

2.950

23%

5.632

44%

1.413

11%

1.432

11%

-

1.000

2.000

3.000

4.000

5.000

6.000

millo

nes d

e US$

I II III IV



273

by its costs of production, which in turn are sensitive to the variations in the price of the copper.

For such a reason, in the period 1990-1998, the work force hiring in these segments fell down to rate annual average of 16%, whereas the employment in the whole sector copper diminished only in 4.9%, the compensation took place for the representation of the great mining industry of the copper that allowed to support its levels of employment in the above mentioned period.

4. MINING AND SD IN CHILE

4.1. SEGMENTATION OF MINING SECTOR

The mining sector in Chile is composed by the segments of the Large-scale mining industry and SMEs12 mining (small and medium), which present different characteristics and ways of approaching the SD.

Small-scale Mining13

It is a very heterogeneous segment that depends on the delivery of subsidies of the State to operate due to the following characteristics: highly sensitive to changes in the price of the metals; high costs of production; void possibility of acceding to bank financing; under level of demonstrated reserves; the scanty capital of work and low capacity of management.

Nevertheless, the segment social viability would present, due to the fact that it is considered to be intensive in employment,

12 World Bank technical document No. 429 called “An Environmental Study of

Artisanal, Small, and Medium Mining in Bolivia, Chile and Peru”, Gary MacMahon, José Luis Evia, Alberto Pascó Font and José Miguel Sanchez (May 1999).

13 According to production volume classification, Small-scale Mining are the companies that produce less than 100 thousand annual tons of minerals.



274

constituting, in many cases, the only source of income in certain localities.

However, the efficiency and impact of the allotment subsidies have not been measured, for what it is difficult to be necessary to priori which are the environmental impacts of its operations; though the magnitude is known in social terms the impact of this segment is very significant and a lots of them this activity constitutes his only source of income.

In consequence, on one hand, it is slightly feasible that this segment internalice in autonomous form the DS and the costs that it implies, and for other one, provided that the DS defined in Brundtland's sense supposes a condition of long term that affects also the well-being of the future generations, characteristic that the small mining industry does not fulfill due to the uncertainty on its geological reserves. Therefore, it is necessary to reach a consensus on the sustainability concept for this sector, as a previous stage, in order to measure the required sustainability indicators.

Medium-Scale Mining14

It is an activity more constructed than the small-scale mining industry, which possesses a bigger certainty in the level of reserves, better capacity of technical-administrative management, capital of work, and it has showed incipient indications for the protection of the environment and the SD of this activity, in the matter the Commission of Environment of the National Society of Mining (SONAMI) has treated the environmental subject matters for the sector.

14 According to production volume classification, Medium-scale mining are the

companies that process between 100 thousand and 3 million tons of ore annually, and whose production basically corresponds to copper concentrate and gold.



275

Nevertheless, most of medium-scale miners needs to ENAMI not only for the marketing of its products but also to financing especially, in periods of prices of the copper fell down.

One might affirm then, that the medium mining industry presents conditions to assume the considerations of the SD, especially, the environmental ones, providing that its levels of reserves allow to justify the big environmental investments to reasonable costs. These aspects are in that the State him compete an important role in the efficient allocation of the resources and in the mechanisms of regulation that propitiate the internalización of SD's concept.

Large-scale Mining

This segment is constituted for the biggest mining companies that concentrate 95% of the production of copper of the country, and has the necessary elements to face and to assume the challenges of operating in form sustainable according to Brundtland's definition. In effect, the segment possesses levels of demonstrated reserves that allows him to project in the long term; levels of competitive costs of production worldwide; great capacity of management; and to access to multiple sources of financing; and others.

It is necessary to mention that the segment is employed at form coordinated across the Mining Council, A.G. instance that has announced that has realized diverse studies respect of the economic and social benefits so much of the workers of these companies and for the community in general.

In consequence, for effects of analysis, the present study will centre only on the segment large-scale mining, the treatment of the matter for other segments should be approached in a later stage.



276

Source: Chilean Copper Commission Figure 4 - Fine Copper National Production Distribution

SD’s Elements in Large-Scale Companies of Mining Sector

There are positions that they argue that the mining sector is intrinsically not sustainable on having exploited a non renewable resource as the minerals, which are in the nature in a stock limited, capable of becoming exhausted in the time.

Nevertheless, sustainability is a concept that beside being tied directly to the depletion of the resource, also is related to the efficient use of this one. As Brundtland indicates it, to reach the equity intragenerational and intergenerational, they constitute concepts basic and perfectly applicable to the mining sector.

In the perspective of the equity intragenerational, understood as the reduction of the disparity that it is produced in the wealth worldwide, the mining sector in Chile plays an important role for its contribution the economic growth of the country, generating

5%95%

Consejo Minero Otras



277

resources that allow to the State to reduce the levels of poverty of the population. If to it one adds an efficiently environmental use of the resources, the environment would be preserved for the future generations fufilment hereby with the intergenerational equity.

In consequence, while the exploitation of the mineral resources generates a stock of the human, social and manufactured capital in the time, and it allows the interrelationship systemic and integral of the dimensions economic, social, environmental and institutional, the sector will be able to be thought sustainable in the sense of the view that it raises the theory of the environmental economy.


Figure 5 - Key Variables Interrelationship of the Mining Sector

As it seen in the figure 5, one change in one of the variables of these 4 dimensions (economic, environmental, social and institutional) it presses others, a new response being generated in the system. Like example the environmental restrictions impose costs on the mining companies, the internalization these would affect negatively so much the profitability of the shareholders as the health

Government (Public Policies, regulations)

Non gov. Orgs and Other Organisms

Minerals Production (e.g. Copper Cathodes,

Copper concentrate)

Non-renewable natural resources

Stakeholders’ Profitability

Employment

Environmental Effects (water quality, air quality,

wastes)

Education

Health

Poverty



278

of the workers and his productivity. It they would produce other costs, for example in the public and private health system on having put up the price of the attentions for affections derived from the pollution of the environment.

The limit to the sustainable development is at the time in the systems: natural, social and infrastructure on which we depend. It is necessary that the stakeholders (society, companies, Government, ONG's) are aware of it and design and apply political, goals and consistent and coherent actions for an efficient use of these resources, which result allows to reach a upper level of quality of life, that is to say, a more prosperous, just and sure society in present and future terms.

There exists empirical evidence that the mining sector, specially copper large-scale mining industry, contributes to the economic growth of the country, for effect so many of its own operations as for the productive sequences of the sectors tied to it.

Equally, in the social area, the mining sector produces benefits towards the community, you fell like: major hospitable, community and educational infrastructure to regional level.

Nevertheless, in the environmental area and in the relations of the mining companies with the community, particularly in the areas where the indigenous etnias place, the contribution of the mining sector has a rather pessimistic perception15, linking to the mining industry with the following impacts:

15 Pessimist perceptions about the mining sector regarding environmental and

communication matters with the social organisations were complemented by the following documents:

-- “Information Systematisation and Cadastre Creation of the Social Organisations related to Sustainable Development Subjects in the Antofagasta region” prepared for Cochilco by CIMM Educación & Gestión Tecnológica S.A. [CIMM Education & Technological Management S.A.], 2001.



279

• It interferes the environment because of polluting emissions to the soil, air, and water.

• It interferes social organisations and their cultural values.

• It does not contribute to an equitable distribution of the revenue.

• It generates problems of access to the land without the social respective compensations.

• It increases the cost of government in the grant of public services on having induced their demand.

They are exactly these factors those that justify to design indicators of sustainability for the mining sector, since the negative perceptions on the mining operations persist, in spite of that in the last period, the big mining companies have tried to demonstrate that they assume his responsibility for the effects that they cause to the environment and that they consider to the communities in their decisions making processes, by incorporating their concerns and needs into internal policies.

Worldwide the situation is not different, since the trend of the mining industry has been to adopt in its operations the best available practices, stimulating with them the safe use of the metals.

Nevertheless, for some international organisms dedicated to the protection of the environment and human health, this sector continues being an area of its attention to the moment to define new environmental regulations, which undoubtedly, they produce significant impacts in the trade of countries as Chile, which - ““Emerging Environmental Issues for Mining in the PECC Region”, prepared by

Fritz Balkau and Andrew Parson, United Nations Environment Programme. - MMSD, Mining, Minerals and Sustainable Development Programme,

BOLETINES INFORMATIVOS No. 11 March 2001, No. 13 May 2001, No. 17 October 2001 and No. 18 November 2001.

- Phillip Crowson, ASPECTS OF SUSTAINABLE DEVELOPMENT AND MINING, 1997



280

development is based strongly on the exportation of mineral, such products as the copper and his derivatives.

4.3. Sustainability Dimensions In The Mining Sector

According to the theory of the capital, the sustainability of the mining sector would imply generating and to support in time the finance, human, and technological capital that allows an economic growth supported in those regions that depend strongly on this activity, further of the closing of the mining operations.

To this respect, the aims for the mining sector of great scale, as it appreciates in the Table 6, they should gain with the principles of the DS. Nevertheless, the improvement of the distribution wealth is not of competition of the mining companies, its responsibility is in the area of propitiating the economic growth and generating income in order that the State assumes his stabilizing role, allocating these resources in efficient form, with social justice and equity.

Nowadays, it is possible to conclude that the Government and the mining companies are approaching the challenges that it imposes the SD, across concrete actions tending to the fulfilment of his aims and principles. In the same way, the communities are generating spaces to treat his problems and to see in that measured they are affected by the mining activity. In consequence, the elements and conditions exist to articulate the system that would allow to reach in the future the SD.



281

Table 6 - Sustainable Development In The Mining Sector

Principles Objectives Economic and Social Dimension:

• Human needs satisfaction (economy, health, and education)

• Environment and development integration

• Intra and Intergeneration equity

1. To contribute to the improvement of wealth distribution at national and regional level

2. To increase social infrastructure (hospitals, schools, community centres)

3. To preserve cultural values of the community (indigenous ethnic groups included)

4. To contribute to reduce poverty rates

5. To improve workers’ health and safety

6. To create environmental awareness through education and human capital creation

Environmental Dimension:

• Contaminants prevention principles • “He who contaminates, pays”

principle • Ecoefficiency • To promote research and

technologies • Environmental Impact reports

7. To generate and apply economic instruments under “He who contaminates, pays” principle

8. To efficiently use natural resources through a preventive approach (clean production) in order to minimise environmental impacts (contaminant emissions and wastes)

9. To apply international Certification standards (ISO 14.000 or equivalent standards)

10. To preserve the ecosystems



282

Environmental Dimension (cont): • Contaminants prevention principles • “He who contaminates, pays”

principle • Ecoefficiency • To promote research and

technologies

11. To generate efficient environmental management systems

12. To apply voluntary environmental mechanisms

13. To generate tools for environmental liabilities countable treatment

14. To promote research and efficient technologies application

Institutional Dimension: ♦ Government participation ♦ Interested parties participation ♦ Communication nets and Education ♦ Environmental regulations ♦ Institutional ability

15. To spread information through information systems design and implementation (public and private)

16. To generate an integrated environmental accounting system

17. To improve participation channels among the community, government, and companies

18. To conciliate companies’ and government’s interests, and to environmentally position mining products at international markets

19. To promote the execution of corporate environmental reports and to induce mining industry to execute corporate environmental benchmarking

20. To foster the creation of an unique and integrated institutional channel about environmental regulations that affect the mining sector

Source: Chilean Copper Commission.



283

5. SD INDICATORS PROPOSAL FOR THE MINING SECTOR

It is necessary to to emphasize again that this document centres on the segment of the mining industry of great scale for the reasons exposed in the point 4.1. This section is divided in four parts.

The definition of the characteristics that should be present in the sustainability indicators and the methodology applied are included in the two first parts.

In the third part, there is realized a diagnosis of the mining companies associated with the Mining Council respect of the form that internalising in his operations SD's concept, using as base of information the Memories and other specific reports regarding to the environment.

Finally, they give themselves the elements to generate a debate opened on the sustainability of the mining sector, which result will be the construction of a line bases on which to measure the advances in SD of the mining companies in the medium and long term. The previous thing complements itself with the presentation of a series of SD's indicators, which will be submitted to the approval of the stakeholders, which final result will be to converge towards the preparation of " Sustainability’s Report " for the sector.

5.1. Theoretical Frame

Worldwide there is an agreement on the characteristics that they should have the indicators to measure the sectorial sustainability, which are summarized in:

• Relevant and sensitive to change: Show something it brings over of the system that it is necessary to know.

• Understandable, comparable, and useful for any person though they are not expert.



284

• Reliable: To guarantee that the information provided by the indicator is true.

• Accessible, available and, opportune: the information must be opportune and available to an efficient cost.

Unlike the traditional indicators, them of sustainability, beside satisfying these conditions, they have to be capable of identifying weaknesses and of identifying the reality of the interrelationship of the dimensions of the SD.

In the design of indicators they must be selected the most representative and efficient to measure sustainability, that is to say, those who allow to integrate and to balance all four dimensions.

To categorize the set of critical indicators two alternative structures exist. One of them is to construct a matrix of an objective indicator that interacts with other indicators chosen in a relationship of cause and effect.

The other option is to assign active and passive values to the chosen indicators’ set, by assessing current stock and future needs. Both options are complementary due to they incorporate SD long-term vision.

Independently from structure type to be chosen, sustainability indicators should be able to:

• Internalise and direct society’s priorities regarding different capital types (natural, human, social, and produced)

• To identify existing interrelationships in order to give shape to reality

• To extrapolate the data in a long-term vision

• To simplify communications and decision making processes of economic agents, and



285

• To be as a guide for policies formulation and design and its later appraisal.

5.2. Methodology

The methodology applied is the one designed by the Policies Co-ordination and Sustainable Development Department of the United Nations (UN), based on the premises contained in the Agenda 2116.

The above mentioned would be complemented by the support of the Global Reporting Initiative (GRI), that designed a methodological guide for preparing Sustainability Reports17. Its objective is to measure economic, environmental, and social performances of the companies, in this specific case, of the mining sector.

GRI ultimate objective is to develop in long-term “globally accepted sustainability countable principles”, in order to create reliability and credibility links between the companies –information suppliers- and the interested parties –information users- that would be the Government, Communities, Non Government Organisations, and other organisations related to SD.

For the GRI, Sustainability Reports shall contain a description of the organisation and indicators sets, general and specific about the company. As the methodology applied by the United Nations, the GRI is based on SD dimensions.

16 Agenda 21 promotes the design, application, and appraisal of SD indicators in

order to construct solid bases for the countries’ decision making process that allow monitoring their progress towards SD.

17 The methodological document is called “Guide for the Preparation of Sustainability Reports about Economic, Environmental, and Social Performances of the Company”, published by GRI in June 2000.



286

Economic Dimension

Economic indicators should measure the way in which the company has an influence on regional or national economy, in terms of resources use and wealth creation.

The GRI suggests indicators such as benefits granted for the workers, taxes payment, sales margin, debt/capital ratio, and labour productivity, among others.

Social Dimension

Social indicators should measure mining companies impact regarding social matters relevant for the community.

For this purpose, the GRI suggests indicators such as management quality, health and safety, human capital creation, benefits for the community as membership, donations, and indigenous culture preservation support, among others.

Environmental Dimension

Environmental indicators should measure operations management regarding air, water, soil, and biodiversity.

The indicators suggested by the GRI for measuring the effects in the environment are energy consumption, water consumption, particle material emission, wastes, solid tailings, liquids and hazardous substances, days in which the air and water quality environmental regulations are breached, impact in protected areas, impact in biodiversity, fines or sanctions for environmental regulation breach, and other mining operations that affect the environment.

It is important to mention that GRI methodology does not expressly consider the institutional dimension. However, it should be considered in the sustainability indicators definition because it represents how is the SD system being defined among the different agents (Government, mining companies, communities, and other social organisations).



287

5.3. Mining Companies Diagnosis About Sustainability

During the last years, SD concept has strongly emerged, generating action patterns at every productive sector, especially, those who base their businesses on renewable and non-renewable natural resources.

In this context, globalisation is not only based on economic competitiveness of the different industries, but also incorporates and balances economic, social and environmental sustainability, thus expanding management towards these new dimensions.

Mining sector, based on non-renewable natural resources, has been prone to integrate sustainability principles into operations, although the intensity of how they focus the activities within the theoretical trend related to weak sustainability is not so clear.

As mentioned in point 1.2, adopting strong sustainability implies to keep natural capital for future generations, that is to say, to prohibit mineral extraction. On the other hand, weak sustainability recognises the need to keep total net capital, assuming that there is a substitution process between the different capital types; then, it is not necessary to limit mineral resources extraction rate, provided that other capital types are generated from this process.

In the national mining scope, SD appears to be more related to weak sustainability rather than strong. In fact, according to the provided for in the Environment Bases Law and in the Mining Environmental Policy, the possibility that the mining sector encourages the generation of other capital types is expressly accepted. Only if this allows improving people’s quality of life and keeping equilibrium among economic, social, and environmental development in order to guarantee mining resources availability.

In force regulation encourages the mining sector to act in a responsible way, social and environmentally speaking, by incorporating SD principles into their management. However, give



288

solution to poverty and social inequity problems shall not be ascribed to the mining sector because it is only another actor at national level. Such role corresponds to the Government, which through its regulations and social policies is responsible for guaranteeing the economic development at regional and national level, by efficiently allocating the resources coming from the productive sectors, in this case, the mining sector.

Therefore, in terms of intra and intergeneration equity, the State shall look after for the regions to reach an economic, social, and environmental development that is compatible with SD principles, even further from post mining stage.

It is a great challenge to achieve sustainability in a heterogeneous mining sector, composed by large, medium, small-scale, and artisanal mining. In fact, medium, small-scale, and artisanal mining segments, considering that they directly have an influence on work force absorption, they generate considerable negative impacts on the environment, which cannot be mitigated at reasonable costs due to the lack of financing capacity and management.

Then, it is difficult to think that medium and small-scale mining segments, and even more artisanal mining characterised by its labour informality, could apply voluntary agreements or good practices codes, at least in a short and medium term, unfeasible in sustainability terms.

Once again, the State is responsible for assuming a proactive role for regulating social and environmental inefficiencies that these segments could cause, and as a response, to promote, through any economic instrument, sector’s sustainability.

Considering the above mentioned, this section focuses only on large copper producers mining companies, public and private, located between the I and IV Region, which are associated with the



289

Mining Council of Chile Trade Union. These represent 95% of fine copper production in the country.

The objective is to carry out a diagnosis of such mining companies based on the background contained in annual reports and/or specific reports related to sustainability and environment.

In the case of large scale mining, it appears as contributing with qualified employment, high investment levels, and it creates a positive effect on mining related activities (productive links), giving benefit to towns nearby operations with more road and social infrastructure (hospitals, schools, roads, etc), which are main aspects for SD concept.

From the diagnosis results shall arise SD indicators that could constitute a base line for measuring mining companies advances on this matter in a medium and long term. Through this line, comparisons between the mining companies, and also with other sectors and/or country average, would be made, in order to finally compare them with international standards. The main product would be a mining company ranking in SD terms.

Besides, the diagnosis18 would generate significant information that would validate or not agents’s perception on the mining sector actual contribution to SD and the impacts caused to the environment.

From the analysis, it could be observed that SD concept is broached on criteria basis such as Environmental Management, Social and Community Benefits, Health and Safety, and Environment Operational Subjects.

Based on such background, it could be concluded that in global terms, the analysed company groups have an average covering

18 Mining companies associated with the Mining Board of Chile A.G. diagnosis is

shown in Appendix 2.



290

of 72% in the fulfilment of these 4 criteria. It results to be a more than acceptable standard at national and sector level, if compared with other productive activities in Chile.

About the subject, it is worth to mention that the other productive activities related to renewable natural resources, such as the fishing and forest sectors, have taken longer for incorporating SD concept and environment protection into their management. This has been the result of legal and normative demands rather than a voluntary commitment to good practices codes about such matters.

Instead, mining sector has demonstrated an attitude prone to sustainability. Because of this, it has voluntarily applied some instruments such as Clean Production Framework Agreement, Environmental Impact Appraisal System, and Environmental Impact Statement, among others. Its purpose has been to comply with environmental standards and to contribute to social equity through specific programmes on health and education.

As shown in Table 7, the results according to the 4 criteria are summarised in the following indicators by company:



291

Table 7 – Mining Companies Diagnosis About Sustainability

Source: Chilean Copper Commission, based on the companies’ annual reports and specific reports on environment and sustainability



292

Criterion: Environmental Management

58% of the companies taken into account have incorporated Environmental Management into their operations, which specifically would cover the following indicators or standards:

• 62% has in its organisational structure a unit devoted to environment

• 100% has an established corporate environmental policy

• 62% carries out environmental management audits

• 92% has as policy goal to comply with in force regulations and norms

• 54% declares that its management is based on sustainable development principles

• 69% has designed and applies indicators for measuring environmental performance

• 8% has designed and applies indicators that measure sustainable development (Zaldívar)

• 8% carries out sustainability reports (Zaldívar)

• 85% reports about the company’s environmental management at internal communication

• 85% has environmental management and risk

• 77% invests and spends in environment

• 46% assumes its awareness on biodiversity

• 46% assumes participation at international activities regarding environmental and sustainability management



293

• 23% is certified19 by ISO 14.000 (Collahuasi, Escondida, and Candelaria)

Among the analysed companies with 95% fulfilment average in environmental management, stand out Zaldívar, Candelaria, and Escondida. Between 80% and 90% fulfilment are Codelco-Chile, Disputada de Las Condes, Collahuasi, and El Abra.

Especially, since 1998, Zaldívar mining company has a sustainability policy. It carries out advance reports on such matter, by measuring the accomplishments through sustainable development indicators. For this company, sustainability means that the different stages of the mining business (from exploration until mine closure) are carried out with due respect for the environment and that respond to the social, environmental, and economic needs both for actual and future generation. In short, to carry out a management that contributes to society’s quality of life improvement.

At micro level, sustainability policy implies to responsibly manage resources, promote education and social development, contribute to sustainable economic development, and generate fluent communication channels with the community, Government, and non government organisations.

In spite of such standards, Zaldivar has not been certified by ISO 14.000. This makes impossible to infer, from the considered background, it has other kind of certification equivalent to such norms, for instance, the Certification of its management Systems at corporate level. On the other hand, Collahuasi, Escondida, and

19 It is important to mention that this percentage could be higher if considered that

the valid standard is to have the certification, either ISO 14.000 norms or other equivalent certifications such as corporate environmental management systems.



294

Candelaria comply with ISO 14.000 norm certification, and Codelco-Chile20 is under certification process.

Criterion: Social and Community Benefits

62% of the analysed companies appears to be carrying out concrete actions for the community by financing health and education infrastructure, community organisation membership (committee of neighbours, sport clubs, etc), education and micro business programmes support, and at more isolated areas, they promote indigenous ethnic groups culture. Specifically, the results for such criterion would be the following indicators:

• 69% has programmes for the community

• 54% promotes effective participation of the interested parties (stakeholders) regarding the subjects that affect them, and commit to consider their needs and aspirations in decision making process

• 77% allocates educational programmes resources for the workers and the community

• 69% allocates health programmes resources for the workers and the community

• 23% has as sustainability objective to respect and promote ethnic groups’ values and culture

• 77% carries out training programmes for the workers and the community

Fundación Escondida [Escondida Foundation] and Zaldívar and Candelaria companies stand out because of the support to the community.

20 Codelco Divisions are analysed as a single company, although they are located

among the II, III, V, and VI regions, The Divisions show different advance shades and degrees in environmental terms.



295

Criterion: Health and Safety

In this scope, large-scale mining shows the best standards at national level, reaching 97% fulfilment.

Health and safety are priority objectives at mining sector operations, that is to say, to carry out safe operations in and out of the mine and to minimise the effects that may arise on the workers’s health (activities at altitude, shift systems, among the most relevant indicators).

In particular, the diagnosis would show the following results in the envisaged indicators:

• 100% has health and safety programmes

• 100% has indicators for measuring accidents rate, being the main objective to reduce such levels in order to reach international standards.

• 97% has environmental and operational emergency plans

Criterion: Environment Operation Subjects

73% of the companies appear to execute concrete actions for mitigating environment contaminants and to carry out an efficient use of environmental resources such as energy and water.

From the mining companies’ analysis, the following results would be obtained according to indicators that have been considered for diagnosis purposes:

• 100% has indicators for measuring energy consumption in its different sources (electricity, fuel, gasoline, natural gas, oil, and kerosene)

• 100% has indicators for measuring water consumption (recirculation rate, water supply sources), considering the lack of water resources in places where some mining operations are located



296

• 62% assumes actions for land efficient use • 77% monitors the emissions to the air based on in force norms

and carries out the corresponding corrective actions • 62% monitors the effects of its operations on surface and

underground water and carries out the proper corrective actions • 69% has liquid, solid, and hazardous wastes handling

programmes, which are constantly monitored against the in force norm

• 38% assumes carrying out environmental reports on the effects caused by operations in the environment

From preliminary analysis, large-scale Mining appears to be achieving the average fulfilment of 72% on such matters, which would constitute a more than acceptable level for any country with the same characteristics than Chile. It would be even more relevant, if it was considered that the agents perceive the mining activity as an operation that intrinsically disturbs the environment. In terms of the economic criteria, it is recognised as supportive for the country’s growth.

The prevailing environmental regulations at international level, have led the mining sector, specially copper large-scale mining, to anticipate the application of more restrictive regulations related to strong sustainability. In an extreme case, this approach would be the application of the precautionary principle. Facing such potential threaten, mining companies at international level have chosen to support voluntary agreements and good practices codes in their management.

Considering that most of the companies have a declared environmental policy for their operational management, that also grants more economic and social benefits for the workers than other productive activities, and finally, that they sponsor social initiatives for the community; then, it could be inferred that large-scale mining way towards sustainability would be already outlined.



297

Then, the challenge is to propose sustainability indicators, common to any company, which allows measuring the advances on such matter, by adopting a base line for assessing their short-term performance.

5.4 Sustainability Indicators Proposal For The Mining Sector

With the results from the preliminary diagnosis, this last section is to motivate the stakeholders (mining companies, governments, non government organisations, communities) to debate about mining sector sustainability, to converge towards common indicators for measuring it, by producing a Sustainability Report for the Sector based on such indicators.

For the debate contribution, the elements that should be considered in the Sustainability Report are analysed. Besides, an indicator set is proposed for measuring the sector’s advance degree in time, in order to create a base line for assessing the sector’s performance and its contribution to SD in time.

5.4.1 Sustainability Report

The report should comply with the following characteristics:

• To be standardised, common for any company to allow its comparison

• To be based on methodologies recognised by international organisations (United Nations, Agenda 21, and Global Reporting Initiative).

• To contain few indicators from official information sources in order to guarantee data reliability

• To allow its assessment from independent organisations in order to guarantee the validity and transparency of the contained information

The report could be applied to mining companies associated with the Mining Council, which altogether represent 95% of fine



298

copper national production. It should also contain a brief description of the mining company profile (location, patrimony, product type, production rate, and sales), indicators’ results, and a clause with the committed actions to be performed by the company in order to give a solution to the detected problems.

5.4.2 Proposed Indicators21

The indicators should be constituted on the base of the applied methodology recognised by international organisation. For this specific case, it is suggested to apply the methodology designed by the United Nations and the Global Reporting Initiative. Both are based on SD dimensions for measuring the progress.

The proposed indicators are mainly of a general type, that is to say, they could be applied to any other productive sector. They are also quantifiable, but the ones measuring perceptions or opinions from the agents related to the mining sector.

Indicator’s comparison parameter shall depend on the dimension to be measured. In fact, there shall not exist a standard for the economic indicators. For the social indicators, the standard shall be the country average. For environmental indicators, it shall be, when applicable, the national regulation, or the international norm, to which the mining sector should tend in a long-term. Finally, reference parameters for institutional indicators shall be the norms and/or instructions issued by the Government.

Considering that there is an indicator multiplicity for measuring economic, social, environmental and institutional advances 21 In Appendix 1 is included a list of indicators, more extensive than the hereby

proposed, as a guide for indicators debate that Large-scale Mining would consider as key for measuring Sustainable development. However, such indicators show some weakness with regard to the proposed indicators set because the evolution of such indicators should come from the mining companies themselves, subtracting independence and generating an anticipated bias in the results that could be inferred from them.



299

with regard to sustainability, proposed indicators set shall comply with the above-mentioned characteristics, as shown in Table 8. The choice is justified by the following criteria:

Information Source SD Measurement Methodology Reference Pattern

Table 8 - Proposed Indicators Selection Criteria

SELECTION CRITERIA

PROPOSED INDICATORS CHARACTERISTICS

INFORMATION SOURCES

The data come from known and reliable information sources. In general, they correspond to government statistics that provide information about the behaviour of such indicators, standing out the Central Bank of Chile, INE [Statistics National Institute], Ministry of Health, CONADI [Indigenous Development National Board], SERNAGEOMIN [Geology and Mining National Service], Ministry of Labour, INN [Normalisation National Institute], among others. This allows guaranteeing that there shall be no bias in the information interpretation and would give independence regarding the measurements that could be carried out by the mining companies.

METHODOLOGY FOR MEASURING SD

They comply with the criteria defined in methodologies widely accepted by the world community, designed by international organisation for measuring Sustainable Development, such as the United Nations, Agenda 21 and the Global Reporting Initiative. Thus, each of the indicators reflect a direct and indirect effect on sustainability according to the Brundtland definition.



300

Table 8 - Proposed Indicators Selection Criteria (cont.)

SELECTION CRITERIA

PROPOSED INDICATORS CHARACTERISTICS

REFERENCE PATTERN

It has a defined comparison pattern that allows sector, national, and international comparison. At national level, with the regulations of the Environment Health Service (SESMA), the Environment National Commission (CONAMA). On the other hand, at international level, reference patterns would come from institutions such as World Health Organisation (WHO), the International Labour Organisation (ILO), just as reference.


Specifically, the indicators proposed for measuring sustainability of the mining sector with regard to SD dimensions are the following:

a) Economic Dimension

These indicators measure the hoe the mining companies have an influence on economy, regional or national, through the use of mining resources and wealth creation. The following indicators are proposed:



301

Table 9 - Economic Indicators

PROPOSED INDICATORS MEASUREMENT UNIT

SOURCE

1. Mining GDP/ Country GDP

Percentage Central Bank

2. Mining Sector R&D expenses / Country R&D expenses

Millions of US$ CONICYT

3. Mining capital Goods Imports / Country capital Goods Imports

Percentage Central Bank

4. Proven reserves / Evidenced Reserves

FMT Central Bank, CRU, COCHILCO


The first three indicators seek to measure the contribution of the mining sector to the country growth in terms of wealth creation, where research and new technologies development are crucial for intra-generation equity and for the efficient use for water and energy resources.

On the other hand, proven reserves indicator versus evidenced reserves measures mining resource use degree, which is very relevant when considering that the natural capital represented by a non-renewable resource that shall be exhausted at any time, thus affecting sustainability regarding the Brundtland definition.

b) Social Dimension

These are the social indicators that measure mining companies’ impact on social issues relating to both company workers and the community, through the contribution of human and social capital creation, social safety, and quality of life. For this case, the following indicators are suggested:



302

Table 10 - Social Indicators

PROPOSED INDICATORS

MEASUREMENT UNIT

STANDARD SOURCE

5. Average remuneration mining sector workers

US$*worker/year Country Average*

AFP, Ministry of Labour

6. Accidents Frequency Rate22

Number/man hours Country Average

Ministry of Labour, Sernageomin

7. Seriousness Rate23

8. (Handicap days because of accidents)

Days/worked hours Country Average

Ministry of Labour, Sernageomin

9. Unionisation Rate

Percentage Country Average

Ministry of Labour

10. Conflict Number with Ethnic Communities

Number Country Average

CONADI

Source: Chilean Copper Commission.

Note (*): If the objective is to compare with other industries, country average could be replaced by the average of another productive.

c) Environmental Dimension

These indicators measure operations’ impacts on air, water, land, and biodiversity. It is suggested, for the purposes of this work, to reach consensus on SD indicators that in their environmental dimension shall mainly be adjusted based on environmental 22 Frequency Rate = number of disabling accidents per each million worked man-

hours 23 Seriousness Rate = number of lost days plus charge days as result from temporal

disability accidents plus charged days because of accidents, with permanent and/or fatal disability, per each million worked man-hours.



303

management indicators, as a first stage, considering to advance in further stages to environmental performance indicators.

In this scope, the environmental management of the company could be measured, almost completely, by ISO 14.00024 norms certification or by equivalent certifications such as the management Systems certification at corporate level.

ISO norms may be applied to any company and to any industry. They constitute voluntary standards that add value to trading operations, guaranteeing, on one hand, goods trade and efficient, safe, and clean services in environmental terms; and on the other hand, continuous improvement of the processes and efficient environmental performance.

In Chile, there are only three companies certified by ISO 14.000, these are Collahuasi, Escondida, and Candelaria. Codelco-Chile is under certification process. However, it is not possible to infer, from the analysed background, if there are other companies that count on an equivalent certification in the sector (for instance of the Corporate Environmental management System).

Doubtless, in the future norms, processes or systems certification demand could become the critical variable required for confirming if a productive sector, for example mining, is in the road to SD.

24 ISO 14.000 norms support certified companies to guarantee the goods and

services they produce in terms of environmental impacts that generate, specifically, some of the benefits in terms of operation continuous improvement are: Lower production costs. It improves corporate image among regulating organisations, clients, and

community. It applies a continuous improvement structure for the companies’

environmental performance.



304

Table 11 - Environment Indicators

PROPOSED INDICATORS

MEASUREMENT UNIT

STANDARD SOURCE

11. ISO 14.000 Certification

-- 100% INN

12. Efficient Use of Energy

KWH/FMT International SEC

13. Critical episodes because of SO2 quality to the air

Number/year National CONAMA, SESMA

14. Critical episodes because of As quality to the air

Number/year National CONAMA, SESMA


We have also added other indicators as critical episodes because of air quality (in CO2 and As), that would be relevant every time that the permitted norms are breached and population’s health is in danger.

c) Institutional Dimension

These indicators measure, on one hand, if the Government, through its organisms, has created and promoted the legal and regulatory conditions that guarantee the advance of the mining sector towards sustainability; and on the other hand, the mining companies support to such indicators.

In order to reach SD, it is fundamental that the country cunts on a formal and well organised institutions regarding the other involved agents, that contains norms, rules, standards, and instruments for measuring the advances on such matter.

The objective in this dimension is to pinpoint if the country has a legal framework composed by norms, regulations, and/or restrictions for the mining companies that allows measuring SD



305

advances through the comparison of local standards with the external ones.

Regarding international standards, for example the ones of the World Bank, WHO could be used as reference parameters.

Table 12 - Institutional Indicators

PROPOSED INDICATORS

INTERNATIONAL STANDARD OR COMPANY STANDARD

GOVERNMENT*

15. Air quality norm by SO2 (daily)

125 (WHO) 265

16. Air quality norm by As

1,5 X 10-3 (ug/m3m)-1 WHO Norm

NOT ISSUED25

17. Environmental Regulation Policy

YES NO

18. Mine Closure and Abandonment Regulation

NO NO

19. Unionisation Regulation

YES YES

20. Safe Work Regulation

YES YES


Note (*): Government id understood as organisations such as CONAMA, Ministry of Health, Ministry of Mining, COCHILCO, SERNAGEOMIN, all related to environmental and labour safety matters.

Summarising, the total 19 proposed indicators seem not to be excessive for belonging to a Sustainability Report. However, they are still few for beginning the debate with he interested parties. It is expected that from this process many more indicators may arise, until 25 In Chile, only exists Arsenic emission to air norm. However, for international

organisations, the required norm is the Quality of the Air by Arsenic, whose limit, according to the WHO, is 1,5 X 10-3 (ug/m3m)-1. A higher value could cause lung cancer to the people under exposure, according to the WHO.



306

reaching the necessary consensus for constructing the base line that shall allow measuring mining sector sustainability in medium and long term.

5. CONCLUSIONS

During the last decade, the mining sector has contributed in a relevant way to the economic development of the country, representing 8,7% of the country GDP, and growing to rates higher than 7% annually, much more than the country GDP growth during the same period.

In the last years, SD has strongly arisen, generating action guidelines for every productive sector, specially, for those that base trading on renewable and non-renewable natural resources. As a matter of fact, in Chile this has an important influence, considering that its economy mainly depends on mining resources.

In this context, this document has reached the following conclusions:

• Studies from international organisations reveal that Chile is located in an intermediate range in environmental and sustainability matters. There are pending tasks for reaching SD, specially, regarding environment protection and the application of more restrictive environmental regulations on the part of international organisations.

• For the in force regulation (Environment Bases Law and Mining Environmental Policy, and other specific environmental regulations), it is expressly accepted the possibility that the mining sector encourages the generation of other capital types. This is for improving people’s quality of life and keeping equilibrium among the economic, social, and environmental development, guaranteeing mining resources availability in time. This definition



307

would indicate that the country has adopted weak sustainability trend rather than strong.

• Because mineral resources correspond to a limited stock, susceptible to exhaust in time, the mining sector has become aware about it and has started to internalise SD principles into their management, for its performance to be socially and environmentally responsible from a local and external perspective.

• Regarding social equity and wealth distribution improvement, it is not a task that directly corresponds to the mining sector. In fact, the State through its regulations and social policies should be able to efficiently allocate the income coming from productive sectors, in this case the mining sector. Besides, to carry out the actions that allow an economic and social improvement of the locations where mining projects take place, with equity and social justice, even further from mine closure.

• There is empirical evidence that the mining sector generates economic and social benefits to the country and to the regions where mining operations are located. However, regarding the relationship with the community and the environmental impact of the operations, the interested parties still have a negative perception.

• From the preliminary diagnosis of the companies associated with the Mining Board is possible to infer that, most of them (72% fulfilment), have assumed, in a responsible and voluntary way, environment protection and more fluent communication channels with the stakeholders (Government, communities and non-government organisations). They have also been concerned about showing a better image to the community about the effects that their activities generate in social and environmental terms. However, this is not enough whereas is not validated by independent organisations, according to an indicators’s base line, assess the sector’s performance regarding SD in time. The



308

promotion of a debate that gathers such elements constitutes the actual contribution of this document.

• Along the whole mining business, from exploration until mine closure, the mining sector has demonstrated concern on the environment and the economic and social development of the people. As a conclusive proof is that 72% of the companies associated with the Mining Board incorporate SD principles into their management and have set as a goal to contribute to improve people’s quality of life.

• For the mining sector, sustainability policy shall cover a responsible management of the resources, promote education and social development, contribute to the sustainable economic development and generate fluent communication channels with the community.

Considering the above-mentioned, the contribution of this document is to propitiate the production and application of a new instrument, called Sustainability Report, to which the mining companies associated with the Mining Council voluntarily join, in order to create a base line for assessing, in quantitative terms, the sector’s contribution to sustainable development in medium and long term.

For this purpose, a total of 19 indicators is proposed, that cover economic, social, environmental, and institutional dimensions. Such indicators shall be subject of a debate with the stakeholders (mining companies, Government, communities, and non government organisations) during a second stage, that would correspond to the measurement process of the sector’s advances in SD matters, it is fundamental that every agent perceive that the next stage effectively contributes to the sector’s sustainability.



309

BIBLIOGRAPHY

Arroyo A. Mario Antonio, ESTRUCTURA DE LA BASE DE CAPITAL Y EL RETO DE LA TRANSICIÓN DE “CAMPAMENTOS MINEROS” A “CIUDADES SUSTENTABLE”, EL CASO DE LAS ZONAS URBANAS DE LA II REGION DE ANTOFAGASTA, Instituto de Economía Aplicada (IDEAR), Universidad Católica del Norte, 2000.

Banco Central de Chile, Ximena Aguilar, RECURSOS MINERALES EN LAS CUENTAS AMBIENTALES: el caso chileno, 1998 (presentado a la Quinta Conferencia Bienal de Economía Ecológica, Chile).

BHP, ENVIRONMENT AND COMMUNITY – Minera Escondida, Chile, Junio 2000 (página web).

Canadá, Natural Resources Canada, MINERALES Y METALES: HACIA UN PORVENIR SOSTENIBLE, 2000.

Canadá, Natural Resources Canada, LA POLITICA DE LOS MINERALES Y LOS METALES DEL GOBIERNO DE CANADA, 1996.

Canadá, Natural Resources Canada, SUSTAINABLE DEVELOPMENT AND MINERALS AND METALS, September 1995.

Comisión Chilena del Cobre y CCIIMMMM EEdduuccaacciióónn && GGeessttiióónn TTeeccnnoollóóggiiccaa SS..AA.. “SISTEMATIZACIÓN DE INFORMACIÓN Y CREACIÓN DE CATASTRO DE LAS ORGANIZACIONES SOCIALES VINCULADAS CON LA TEMÁTICA DEL DESARROLLO SUSTENTABLE EN LA REGIÓN DE ANTOFAGASTA”, año 22000011..

Comisión Chilena del Cobre, IMPACTOS SOCIALES DE LA MINERIA PRIVADA EN CHILE, DE/01/99, Febrero - 1999.



310

CONAMA, Grandes temas ambientales que el país debe abordar, Una Política Ambiental para el Desarrollo Sustentable, POLÍTICA AMBIENTAL EN MINERÍA, Enero 1999. Más comentarios a ese documento, elaborados por el Grupo de Trabajo Cochilco en Desarrollo Sustentable (escrito por Juan Pastén).

Comisión Nacional del Medio Ambiente (CONAMA), UNA POLITICA AMBIENTAL PARA EL DESARROLLO SUSTENTABLE, Enero 1998.

Comisión Nacional del Medio Ambiente (CONAMA), INDICADORES REGIONALES DE DESARROLLO SUSTENTABLE, 1998.

Comisión sobre el Desarrollo Sustentable, Consejo Económico y Social de Naciones Unidas. CRECIMIENTO ECONOMICO, COMERCIO E INVERSION. Informe del Secretario General, Enero 2000.

Compañía Minera Cerro Colorado Ltda., Compañía Minera Quebrada Blanca S.A.., Compañía Minera Doña Inés de Collahuasi, ANTECEDENTES SOCIOECONOMICOS DE LA I REGION DE TARAPACA, Iquique, Agosto 1998.

Compañía Minera Doña Inés de Collahuasi SCM, MEMORIA ANUAL 1999.

Compañía Minera Zaldívar, INFORME DE SUSTENTABILIDAD 1998.

Consejo Desarrollo Sustentable, COMITÉ DE APOYO TECNICO, ACTA SEPTIMA REUNION DEL COMITÉ, Noviembre 1999.

Consejo Minero de Chile A.G., INFORME DE LA GRAN MINERIA CHILENA, año 2000.

Fundación Minera Escondida y Centro Técnico Escondida, HACIA UN MODELO DE MINERIA SUSTENTABLE, Noviembre 1999.



311

GEMEED Secretariat, PRINCIPLES FOR A SUSTAINABLE MINING IN THE XXI CENTURY IN THE ASIA PACIFIC REGION, March 1999 (draft version).

Global Reporting Initiative, GUIA PARA LA ELABORACION DE MEMORIAS DE SOSTENIBILIDAD, SOBRE ACTUACIONES ECONÓMICAS, MEDIOAMBIENTALES Y SOCIALES DE LA EMPRESA, Junio 2000.

Global Mining Initiative, MINING, MINERALS AND SUSTAINABLE DEVELOPMENT.

Government of Canada, LA POLITICA DE LOS MINERALES Y LOS METALES DEL GOBIERNO DE CANADA, Asociaciones para un Desarrollo sostenible, 1996.

Grupo Placer Dome, SE TRATA DE NUESTRO FUTURO 98, Informe de Sustentabilidad 1998.

John E. Tilton, EXHAUSTIBLE RESOURCES AND SUSTAINABLE DEVELOPMENT, Two Different Paradigms.

Minera Escondida, IMPACTO ECONOMICO Y SOCIAL DE MINERA ESCONDIDA EN LA II REGION, 1998-1999 (brochure).

Ministro de Economía, Minería y Energía, José De Gregorio Rebeco, POLÍTICA AMBIENTAL DEL MINISTERIO DE MINERÍA, Discurso en el Seminario “Minería, Minerales y Desarrollo Sustentable”, Mayo 2000.

Ministerio de Minería de las Américas, DESARROLLO SOSTENIBLE. (página web).

Ministerio Secretaría General de la Presidencia, DECRETO QUE CREA CONSEJO DE DESARROLLO SUSTENTABLE, Diario Oficial de la República de Chile, 1998. Se agrega una minuta de Preguntas sobre el Consejo de Desarrollo Sustentable.



312

Noranda, SUSTAINABLE DEVELOPMENT REPORT, año 1999.

OECD, MEETING OF MANAGEMENT EXPERTS ON “MINERAL INVESTMENT AND ITS EFFECTS ON DEVELOPMENT”, Discussion Paper, Labour/Management Programme, 1998.

Phillip Crowson, ASPECTS OF SUSTAINABLE DEVELOPMENT AND MINING, 1997.

Phelps Dodge, ANTECEDENTES ECONOMICOS Y SOCIALES DE LA III REGION, Atacama, 1997.

Placer Dome, POLITICA DE SUSTENTABILIDAD, 1998 (brochure).

Placer Dome, LA MINERIA Y SU CONTRIBUCION AL DESARROLLO SUSTENTABLE, William Hayes, Presidente de Placer Dome Latin America Limited, Marzo 1997 (artículo).

Programa Chile Sustentable, CHILE: SUSTENTABILIDAD SOCIAL Y REDISTRIBUCION DEL INGRESO, Informe preliminar junio de 1998.

Revista Internacional de Ciencias Sociales, MEDIR Y EVALUAR EL DESARROLLO, marzo de 1995.

Sociedad Nacional de Minería, BALANCE SOCIAL DE LA MINERIA PRIVADA, 1996.

The Ministry of the Environment , Government of Japan, ENVIRONMENT PERFORMANCE INDICATORS OF BUSINESSES, FISCAL YEAR 2000 VERSION.

Unep Industry and Enviroment, Special Uses 2000, DESAFIOS PARA EL DESARROLLO SUSTENTABLE DEL SECTOR MINERO.

Unep, ENVIRONMENTAL IMPACTS OF TRADE LIBERALIZATION AND POLICIES FOR SUSTAINABLE



313

MANAGEMENT OF NATURAL RESOURCES, A Case Study On Chile’s Mining Sector, 1999.

Unep Industry and Environment – Special Uses 2000, “Desafíos para el Desarrollo Sustentable del Sector Minero”.

United Kingdom, The Department of the Environment, INDICATORS OF SUSTAINABLE DEVELOPMENT FOR THE UNITED KINGDOM, Transport and the Regions, December 1997.

United Nations Departament for Policy Coordination and Sustainable Development (DPCSD), INDICATORS OF SUSTAINABLE DEVELOPMENT FRAMEWORK AND METHODOLOGIES.

United Nations Environment Programme, EMERGING ENVIRONMENTAL ISSUES FOR MINING IN THE PECC REGION, Fritz Balkau and Andrew Parsons, 1999 .

Universidad de Chile, Departamento de Economía. ANALISIS MEDIOAMBIENTAL, SOCIOCULTURAL Y ECONOMICO DE LA GRAN MINERIA Y LA COMUNIDAD, El Caso de Chile, Rodrigo Araya, Julio Castillo, Verónica Kunze, José Miguel Sánchez, Julio 1999.

World Bank, EXPANDING THE MEASURE OF WEALTH, INDICATORS OF ENVIRONMENTALLY SUSTAINABLE DEVELOPMENT, 2000.

World Bank, Technical Paper Nº 429: “AN ENVIRONMENTAL STUDY OF ARTISANAL, SMALL, AND MEDIUM MINING IN BOLIVIA, CHILE AND PERU” , elaborado por Gary McMahon, José Luis Evia, Alberto Pascó-Font y José Miguel Sanchez, Mayo 1999.

World Bank, ENVIRONMENT PERFORMANCE INDICATORS, Second Edition Note, October 1999.



314

World Bank, RESOURCE ACCOUNTING IN MEASURES OF UNSUSTAINABILITY: Challenging the World Bank’s Conclusions, October 1998.

World Economic Forum, 2001 ENVIRONMENTAL SUSTAINABILITY INDEX, An Initiative of the Global Leaders of Tomorrow Environment Task Force, Annual Meeting 2001, Davos, Switzerland.

World Summit on Sustainable Development, EL ROL DEL SECTOR DE LOS MINERALES EN LA TRANSICION HACIA EL DESARROLLO SUSTENTABLE, Luke Danielson, Londres y Gustavo Lagos, Universidad Católica de Chile, International Institute for Environment and Development.

York Centre for Applied Sustainability, CANADA’S COMMISSIONER OF THE ENVIRONMENT AND SUSTAINABLE DEVELOPMENT: A CASE STUDY, David V. J. Bell.



315

MINING SUSTAINABILITY IN BOLIVIA

Ana Maria Aranibar Jimenez

Bolívia

The development concepts applied to the quality of life are varied, a complete and operational approach is the one used by the United Nations for Development, that defines human development as a choice extension process that people have to achieve their well-being. It takes as its main human development components: having access to a long-lasting life, and enjoying good health and education as essential requirements.

The sustainable development concept became known in this new century and it has become one of the main challenges that all nations must face as a serious commitment with the future generations.

In the same way as the human development criteria, there are several concepts about sustainability. For the present research, we adopted the concept that we consider the most appropriate for our purposes and the one that fits within the “mining sustainability” criteria, such as the fulfillment of developmental activities without generating any economic, social or environmental debts for the future. In other words, it is being able to take actions at present without putting into mortgage the fate of future generations. From this point of view we also assume the idea that sustainability also means the capacity that the local community has to carry out and manage a project by themselves.

A sustainable development project is one that does not depend on the existence of an external support, rather it is a product of a local consensus to be able to do a series of transformations in the economy and society that will allow us to solve the specific problems.



316

In a frame to develop a sustainable mining there must be a triangle of interaction between the state – mining company – mining community.

THE ROLE OF THE PERFORMERS WITHIN THE PROPOSED TRIANGLE

The Role of the State

The role of the state should be to motivate the support programs of local development through various instances, several organisms participate as part of the activities that the state must fulfill, and that take care of the traditional concepts of the state such as:

• The support to health, education, transportation, agriculture, industrial and human development programs, which are infrastructure and service programs that the state gives to the urban and rural communities. In the specific case of Bolivia, more importance is given to the areas with major poverty indexes.

Comunidad

Empresa Estado



317

The Role of the Mining Company

The mining company presence generates a series of impacts in the work place, mainly the work development, and the generation of both road and electricity infrastructure. All this impact generates a push in the local development and can be complimented by an explicit politic that is called “Social Responsibility”.

But we can leave a question here that will be the subject of analysis in the future.

How long is the company responsible for the local development? What is its real function?

The mining companies can manage its resources to generate a bigger positive impact in the development of a community, but cannot replace neither, the state nor the community in this social responsibility.

Social Responsibility of the Mining Company

The social responsibility is a compromise that the company assumes for the well-being of the social environment that surrounds them. Under this compromise, the mining companies avoid or mitigate any negative impact that its companies could cause over the people and motivate all the positive impacts that an investment brings to the areas in which the operations are being developed.

It is true that the main function of a mining company and the existence condition of any company is to generate profit.

The social responsibility assumes that the private institutions have a compromise with the environment in which they operate. This compromise has both an ethic and practical origin. An stable environment open to investment benefits the development of a project.



318

The Role of the Community

In Bolivia we can differentiate three types of communities:

The Rural Community

Who have acquired the rights of their land either through inheritance or through the acquisition of the land itself.

For the rural community the rights to their land not only means an economic right but also gives them prestige and power.

The Original Community

Whose land ownership is based in its original property right of the subsoil and of the surface.

The Mining Community

Is developed around a mining project such as in the case of Llallagua, Catavi and Huanuni, that are mines that belong to the state and where several mining projects have been developed for several years.

The Bolivian Mining Code concerning the mining rights

The first article of the Mining Code establishes that all the mineral substances in their natural state whichever is their background and present form, whether they are found in the subsoil or on the surface of the earth “belong to the original domain”. Its concession is subject to the Code norms.

The Fourth Article of the Mining Code, points out that the mining concession is a true right different to the ownership of the property in which it is located.

This means that the mining rights are given as “concessions”.

So there is a co-existence between two different rights, the subsoil and surface rights and the mining rights.



319

Bolivia has created the article 169 of the OIT where the “native community rights are recognized with relation to the land ownership”.

Under this umbrella, the previously mentioned triangle takes place. The participation of the state – company – community, the three performers with shared responsibilities is what will make up a sustainable economy with a mining extraction.

The following is a Bolivian sample: Inti Raymi Mining Company Case.

The Inti Raymi Mining Company, one of the most important projects in Bolivia with an open pit gold mining production.

The responsibilities in development push framework

The development of a community is the responsibility of the community itself, the community is the one that thoroughly knows its own problems, defines its own objectives and moves its own material and human resources.

The State motivates support programs through its different instances. Through its Ministries it should develop different infrastructure and service programs in the communities.

The Company generates a series of impacts, above all, as an example it generates road and electricity infrastructure and some other services.

How to secure the project’s sustainability

Every mining project must look for its sustainability in the time, meaning the capacity to function with the community and state contest, respecting the environment.

The project should be able to function with the support of the community, of the City Halls, of the community organizations and of the church.



320

The duplicity of effort should be avoided and they must not compete with the established institutions.

The local organizations must be established, training must be provided to the members and leaders of the community.

The support projects must be executed starting from a market analysis with and without the intervention of the company.

The service supporting actions must be coordinated together with the State.

One very important factor for the project to be sustainable in time is to establish a maximum limit on the company’s contributions. Many companies start with good community relationships by making big investments and then end up in great conflict.

BIBLIOGRAPHY

Mining Code- La Paz, Bolivia-2000 The Bolivian Oficial Gazette.

Community Relations Guide-Peru Republic- Energy and Mining Ministry. January 2001

Essays-Sobre a Sustentabilidade de Mineracao no Brasil. Maria Laura Barreto.

Data obtained from the Inti Raymi Mining Company.



321

THE SOCIOECONOMIC IMPACTS OF THE BAJO LA ALUMBRERA PROJECT AND AN APPROACH TO THE

ECONOMIC INDICATORS OF SUSTAINABILITY

Luis Manuel Álvarez

Mining consultant Catamarca - Argentina

INTRODUCTION

This paper deals with the socioeconomic performance of the most important mining project of Argentina, that is to say, the Bajo la Alumbrera Project, from the viewpoint of the communities that surround the mine and of the Province of Catamarca.

Therefore, a brief description of the project is given, together with an analysis of its principal economic impacts, the relationship of the company with the communities and the government, the expectations that the company and the mining project brought to the communities, the perception of the surrounding communities as regards mining benefits, the reasons why the communities cannot see the impacts of the project and finally the selection of a couple of economic variables that allow us to express said effects in the Province numerically and to analyse the sustainability of the project.

BRIEF DESCRIPTION OF THE PROJECT

The Bajo la Alumbrera gold and copper deposit is located in the District of Belén, Province of Catamarca in the northeast of the Argentine Republic.

The rights to explore and mine the deposit belong to Yacimientos Mineros de Agua de Dionisio (YMAD), a corporation



322

formed by representatives of the government of Catamarca, the National University of Tucumán and the Federal government.

YMAD has formed a Joint Venture with Minera Alumbrera Limited to mine the deposit.

Minera Alumbrera Limited is formed at the present time by three big international mining companies: M.I.M. of Australia with a 50 % interest, Rio Tinto of England with a 25 % interest and Billiton Ltd. of England with the remaining 25 %.

Bajo la Alumbrera is one of the principal metal-bearing ore in the world where open-pit mining is used. 1,200 million dollars were invested to set this mining project in operation.

The processes of crushing, grinding and flotation are used to produce an average of 600,000 tons of concentrate per year that contains approximately 180,000 tons of copper and 20 tons of gold.

The average value of production-exportation is about 450 million dollars a year.

Electricity is provided from El Bracho (Province of Tucumán) through a 200 Km 220 Kw powerline built by the company.

The Alumbrera mine produces copper-gold concentrates which are pumped with added water through a 316 Km pipeline (the longest in the world) over the Nevados de Aconquija mountains to the Province of Tucumán, where a filter plant was built in order to dewater the concentrates to obtain a drier product with 8 % moisture content.

From Tucumán, concentrates are railed through the Nuevo Central Argentino railway, with Minera Alumbrera´s privately owned trains, to the company´s port facilities in General San Martin (Province of Santa Fe) within 830 Km distance. From there the concentrates are loaded and shipped to international markets.



323

The building of the project started in 1995 and operation began in 1997.

At present, it employs about 800 people and another 500 people through contractors.

According to the latest estimation of reserves, the mine´s service life would last 15 years.

MAIN BENEFITS OF THE PROJECT FOR THE PROVINCE OF CATAMARCA

Influence of the project on the provincial GDP

Alumbrera produces the 20 % of the provincial GDP, that is approximately 1,800 million dollars in the year 2000.

Interconnection of the town called Santa María to the power line built by Minera Alumbrera

This important town in the west of the province, situated within approximately 100 Km distance of the mine, technically could not be supplied with electricity through the electric power lines that interconnect the west of the province (Tinogasta, Belén , Andalgalá and Pomán) with the national power network.

From the moment of the interconnection to the power line of Minera Alumbrera, that is, since October of 2001, Santa María has a larger and better electric power and the possibility of establishing different productive companies.

Alteration of the ravine of Belén on route 40

The work consisted in the reconstruction and asphalt paving of 14 Km of route over a mountainous ravine. Before the execution of the work, demanded for many years by the community of Belén, said ravine acted as a “stopper” since the road was narrow and without asphalting. It is supposed that with the execution of the above-



324

mentioned work the result would be a greater and better serviceability for people and products through the road.

Employment by the company

The Alumbrera project employs about 800 people, only 260 (32 %) of whom come from the Province of Catamarca. The total sum of the wages paid annually is approximately 4,400,000 pesos. (This information was given by the company). If we take into account the communities surrounding the project such as Andalgalá, Belén and Santa María, the employment is of about 200 people and the total wages paid are 3,200,000 pesos.

Employment by contractors

The companies that supply factors of production and services to the Alumbrera project and that are situated near the mine, employ about 490 people, only 160 (32 %) of whom come from the Province of Catamarca. The total sum of the wages paid annually is approximately 1,000,000 pesos (estimated data taking an average wage of 500 pesos a month). If the surrounding communities are considered, the employment is of about 150 people and the wages paid are 970,000 pesos.

Purchases to local suppliers by the company and contractors

In the year 2000 the purchases were of 2,800,000 pesos, counting the purchases of Alumbrera and Integralco that offer lunch service and cleaning in the mine (information given by Minera Alumbrera).

Mining royalties

The payments of the company on account of mining royalties ( 3 % of the value of the mineral in pithead) are approximately 7,000,000 pesos per year (depending mainly on production levels and prices of copper and gold).

Provincial taxes: approximately 1,000,000 pesos per year.



325

Water charge: approximately 700,000 pesos per year.

Profit from the project allotted to the YMAD company and to the Province of Catamarca

According to the Joint Venture contract signed between YMAD and Minera Alumbrera Ltd., a 20 % of the profit from the project corresponds to the state company, and pursuant to the act through which said company was formed, the Province of Catamarca owns a 60 %, therefore a 12 % of the profit belongs to it.

At the time of the distribution of profits (that is, when the investment of the project is recovered), it is estimated that the earnings will be greater than those from mining royalties.

THE PERCEPTION OF THE SURROUNDING COMMUNITIES AND OF THE PROVINCE IN GENERAL, AS REGARDS THE BENEFITS OF THE MINING PROJECT

The general opinion in the Province of Catamarca, according to many news items and opinion polls, is that the benefits the Alumbrera project yields in Catamarca are not relevant and that the Province most benefited is Tucumán.

This last perception is related to the fact that the mining company and contractors employ more workers from that Province, the workers from Tucumán receive better wages than workers from Catamarca and important purchases of factors of production and services are done to companies in Tucumán.

About 380 people from Tucumán (47 % of total) work in the Alumbrera project, with an annual payment of 8,800,000 pesos. A similar percentage, about 230 employees work for the contractors with an annual payment of 1,800,000 pesos (estimated data taking an average wage of 600 pesos a month).



326

With regard to the contracting of companies that supply factors of production and services, the companies from the Province of Tucumán are much more than those from the Province of Catamarca, with contracts that reach up to 40 million pesos per year.

Let´s see these comparisons graphically to notice clearly the different extent of the impacts in the above-mentioned provinces

CONCEPT CATAMARCA TUCUMAN Employment by Minera Alumbrera

260 (32 %) $ 4,400,000

380 (47 %) $ 8,800,000

Employment by Contractors 160 (32 %) $ 1,000,000

230 (47 %) $ 1,800,000

Purchases by Minera Alumbrera and Contractors

60 companies $ 2,800,000

180 companies $40,000,000

Royalties $ 7,000,000 - Provincial Taxes $ 7,000,000 - Water Charge $ 700,000 - TOTAL $ 22,900,000 $ 50,600,000

WHY DID THE DESCRIBED SITUATION HAPPEN AND WHY DO THE COMMUNITY THINK THAT THE BENEFITS ARE FEWER THAN EXPECTED ?

In the first place, a problem of expectation occurred mainly with the community of Andalgalá, caused by a lack of communication on the part of the mining company.

According to the feasibility study of the project and according to the information given by the Canadian company Musto in the year 1994 (1 year before the construction started), the copper and gold concentrate would be taken from the mine to the town of Andalgalá through a short pipeline. This meant that a filter plant would be built in said town and that the Belgrano railway would be



327

put into operation again in the section Andalgalá-Serrezuela to carry the concentrate to the port of Santa Fe. This fact caused great expectation in the province and especially in the community of Andalgalá, since it meant an important investment in the zone, the employment of local workers, the recuperation of a communication route that was essential to the region and consequently, Catamarca would feel the principal impacts of the project and not Tucumán as finally happened.

When in the year 1994 Musto sells 50 % of its shares to the Australian company MIM and the company undertakes the development and management of the project, changes in the engineering of the project are introduced and the mineral concentrate is railed from the Province of Tucumán to Santa Fe and not from Catamarca, adducing that the Belgrano railway in the section Andalgalá-Serrezuela was not operative and that significant investments were necessary to put it into operation again. This meant that the investments originally intended for Andalgalá were thrown aside, and a long, expensive and complex pipeline was built from the mine to Tucumán (316 Km long) and the Nuevo Central Argentino was used to rail the concentrate from Tucumán to Rosario.

These substantial changes to the original project resulted in the Province of Tucumán being benefited, to the detriment of the community of Andalgalá and of the Province of Catamarca. In this way the first disappointment of the community as regards the economic impacts of the mining project took place and the relationship among the company, the community and the government deteriorated.

The communication between the company and the community should be fluent and truthful, and one should be careful not to cause disproportionate and false expectations. If this happened, it may cause a difficult problem to solve, such as the indifference of



328

the communities towards the mining development or their opposition to it, as is the case in the Province of Catamarca at the present time.

EMPLOYMENT OF LOCAL WORKERS AND PURCHASES TO SUPPLIERS

As stated above, the employment of local workers by the mining company and by the contractors is low.

Minera Alumbrera employs about 260 workers from Catamarca out of a total of 800 workers, that is to say 32 %. Surprisingly enough, in the case of the contractors the same percentage (32 %) is rendered, with 160 workers employed from the Province of Catamarca out of a total of 490 workers.

This fact undoubtedly attenuates the multiplying effect of the project in the communities, since the total wages of 5,400,000 pesos per year is not significant and therefore it is not clearly reflected in the local purchases.

Thus, the absorption of local workers is low, even if compared to mining projects of similar business formation characteristics (public-private Joint Venture) such as Cerro Vanguardia S.A., a company that has been mining gold in the Province of Santa Cruz since the year 1998 and that is formed by Anglo Gold (46.25 %), Grupo Pérez Companc (46.25 %) and Fomicruz S.E. (Government-owned corporation of the Province of Santa Cruz) with the remaining 7.5 %. In this project, the employment of local workers reaches up to 90 % ( 413 workers from Santa Cruz out of a total of 460 workers) taking into account both the mining company and the contractors.

In the case of Alumbrera, the larger percentage of workers employed in the project is from the Province of Tucumán, with 380 (47 %) workers coming from that Province, and a similar percentage



329

is rendered in the case of the contractors that employ about 230 people.

The problem gets worse due to the fact that the workers from Tucumán earn on the average higher wages than the workers from Catamarca.

A similar situation occurs with the local suppliers.

Apart from the limited development of the industrialist and services sectors of the Province of Catamarca and the fact that the provincial authorities did not realise in time that a potential business was coming to light and therefore they did not prepare the sector, there is a general feeling that the mining company did not make the necessary effort to contract local companies.

These situations take place in spite of the fact that Article 12 of the Joint Venture contract signed by YMAD and Minera Alumbrera Ltd., states clearly that the company shall give priority to the employment of local workers and to the contracting of suppliers from the Province of Catamarca.

The analysed aspects limit without doubt the impacts of the project in the local economy and are the principal reasons why the communities do not see clearly the benefits of the project.

WHY DID THIS SITUATION HAPPEN?

This is one of the central topics of this paper.

Apart from an aspect that actually happened in the Province, such as the fact that the authorities at that time and the community in general did not believe in the evolution and development of the Alumbrera project and therefore did not prepare themselves to take advantage of its impacts, the principal event that caused what was described above is related to the company’s failures to communicate and to insert itself into the community and it is also due to the



330

conflicting company-government relationship as a result of the problem about mining royalties that led to a break in the dialogue and agreements between the parties.

Let´s delve deeply into this topic. The different actors that participate in the mining sector fully admit that the relationship between the international mining companies and the governments and the communities where they are situated is maintained by a mutual promise that may be summarised as follows:

“The international mining companies should compromise themselves with the socioeconomic development of the communities and regions where they are situated, and the governments that receive said investments should offer legal certainty”.

These fundamental principles that nowadays govern said relationships and that are unquestionable, did not work in the Province of Catamarca.

On the one hand, in the year 1993 a Mining Royalties Act was introduced in the provincial Congress that was different from the national act to which the provincial government had adhered and the royalty calculation method of the province act did not include a discount of any cost, so the rate was higher.

This issue, solved 8 years later (in June of the year 2001 the act of adherence to Section 22bis of Mining Royalties was passed) in spite of the government’s promises to solve the problem quickly, caused a considerable weakening in the relationship between the parties.

On the other hand, the company’s institutional performance was not as expected and resulted in a deficient insertion into the local community and in a limited commitment to the socioeconomic development of the same. Said commitment was directed mostly to the Province of Tucumán instead, which worsened the conflict.



331

Minera Alumbrera Ltd. did not give priority to the relationships with the authorities and communities in the Province of Catamarca despite the geographic location of the ore, the fact that the company shares the carrying out and management of the project with the YMAD company whose owners are mainly from Catamarca, and the contractual agreements set forth in the Joint Venture contract.

Although a) the company pays the mining royalties in Catamarca, b) out of the 20 % of net income from the project that corresponds to YMAD, 60 % belongs to the Province of Catamarca, c) the company pays water charge and taxes to the Province, d) the mining law enforcement and the environmental control of the project is also exercised by the Province and e) the Province checks that the Municipalities in the surrounding areas do not collect new taxes that may alter the fiscal stability of the project, the company did not give priority to the relationships with the Province of Catamarca and fostered a good relationship with the Province of Tucumán instead.

This is observed clearly in the above-described aspects, such as the limited employment of local workers and purchases of factors of production and services to suppliers from Catamarca and in the lack of commitment by the company as regards the improvement of the community facilities, lack of support to productive projects supplementary to mining activity and the lack of initiative to build houses for the workers employed by the company.

We can conclude that: “When the government and the communities cannot see the positive impacts of the mining activity, they can adopt attitudes that alter legal certainty”.

This argument may be applied to our case, since the communities and the government argue that they cannot see the positive impacts of the project, and this could have been the reason why the Government of Catamarca adopted a conflicting attitude as regards the collection of mining royalties, taking 8 years in solving the problem.



332

Finally, we can state that: “The keeping of legal certainty is a responsibility of the mining companies as well, since they should be interested in the perception of the positive socioeconomic impacts by the local communities”.

CONSIDERATIONS

If an analysis of the socioeconomic impacts of Bajo la Alumbrera project in the Province of Catamarca is carried out, it is observed that they are not significant and that the communities of Belén, Andalgalá and Santa María (adjacent to the project) and the Province in general have the same feeling.

This is clearly seen when analysing the employment of local workers, purchases to suppliers and the improvement of the community facilities in the area where the project is situated.

This perception would be different if the surrounding communities received the mining royalties that the company pays every three months, but the provincial authorities have not made it effective as yet.

The principal reason why the effects of the project are not better and are not felt by the Province is a consequence of the deficient relationships between the company and the government what resulted in a break in the dialogue and fruitful agreements for both parties.

The company committed communication errors during the stage of advanced exploration of the project and failed to insert itself into the communities, which led to a limited commitment with the socioeconomic development of said communities.

Besides the provincial government brought about the conflict of mining royalties, and in so doing it altered the legal certainty of the companies.



333

These objective facts that are difficult to state which one triggered the failure of the relationships among company, government and community, got worse and increasingly affected the relationship.

After almost five years since this major mining project was put into operation, it is imperative to settle the differences among company, government and community, having in mind the following:

“The international mining companies should compromise themselves with the socioeconomic development of the communities and regions where they are situated, and the governments that receive said investments should offer legal certainty”.

If this came true, the errors would be corrected and with the passing of time the local communities and the Province in general would see clearer the positive impacts of the mining project.

And what is even more important to realise is that there is a need to take advantage of this great experience in order to face the development of the next mining projects more firmly and clearly.

ECONOMIC INDICATORS OF SUSTAINABILITY FOR THE BAJO LA ALUMBRERA PROJECT

Let us consider the methodology to measure the direct and indirect economic impacts of the mining project and discuss which are the variables that allow us to analyse the sustainability of the same from the economic viewpoint.

It is advisable to use the input-output methodology to estimate the impact that the mining project may have in the main zone (Andalgalá, Belén and Santa María), making clear that at the local and district level there are difficulties to have sufficient data to determine the requirements that constitute the table.



334

In another direction, the economic relationship between a mining company of major importance, such as the Bajo la Alumbrera project and the surrounding communities is very complex, and it is necessary to define clearly the variables that best express such relationship.

The size of the mine, the size of the localities concerned (in the sense of population, urbanization, diversification, distance from the industrialist centers, etc.), the source of the capital and the precise distinction of the different stages of the project, constitute the basic elements to take into account.

Since the aim is to find indicators of periodic updating that can provide information about the economic impact of the mining project, it is necessary to identify relevant variables for which there should be information prior to the beginning of the project, during the execution of it and until the date of the measurement of the impacts.

It is also advisable to determine the calculation procedures of other relevant variables for which there is no direct information during the established period, such as by means of opinion polls, interviews and works with representative groups of the community.

The idea is to see the impact as clear as possible, in a context of scanty and sometimes dubious information at hand.

The variables that were considered relevant to the case in study, with the above-mentioned exception, are the following:

Population-Migrations

The variables that attempt to measure the modifications caused on the population and the migration rates of the communities and districts that are affected by the mining project, constitute strong indicators to measure the socioeconomic effects and they must be taken into account when making the data table that will be used as a tool to follow the impact produced by the project.



335

Economically active population, level of activity, employment, unemployment and underemployment

These indicators are also considered relevant to the making of the table that will allow us to measure the impacts, although sometimes this information is not available at the community and district levels.

Industrialist, commercial and services sectors

They constitute important indicators and the measurements to these sectors are carried out analysing the respective rises and drops.

Municipal public sector: Same as above.

Gross domestic product (G.D.P.)

It is advisable to consider the Net Provincial Product (a kind of homonym of Net National Product) in order to determine the real benefits in terms of personal income that Catamarca receives, after the transference of profits and the application of depreciations. With this exception the G.D.P. is a good indicator to be included in the database.

Municipal and provincial tax receipts

With certain precautions it is an indicator to take into account when making the table of measurement of the impacts.

VARIABLES OF DIRECT IMPACT

Employment by the mining company and by the contractors, wages paid by the mining company and by the contractors, and purchase of factors of production and services by the mining company and the contractors to local suppliers: They constitute important variables that must be taken into account to measure the impacts of the project.



336

VARIABLES OF INDIRECT IMPACT

Employment multiplier

Although the major mining projects are capital-intensive with a high productivity, they are important creators of indirect labour so far as the potential suppliers of factors of production and companies that render services improve their adaptation to the originated demands. The employment multiplier also depends on the degree of development of the region.

According to estimations of the National Under Secretary of Mining, the employment multiplier of the Alumbrera project in the zone of primary impact is 3, that is to say, for each direct employment 2 are created indirectly.

Externalities

They are related to the big works of infrastructure carried out by the mega projects and that are generally executed in desolate and underdeveloped zones.

These works of infrastructure used by the communities that surround the mining project create externalities that strengthen the existing activities and develop new ones. The main externalities generated by the Bajo la Alumbrera project in the primary zone of impact are formed by the alteration of the ravine of Belén on route 40 and the 220 Kw powerline.

With the available information and according to the characteristics of the Alumbrera project, the following Cost-Profit table can be drawn.



337

Type of community

Small / Remote / Not varied Type of company

Profits Costs

New

Big

Result

For each locality (Andalgalá, Belén and Santa María) the following table could be built.

Variable Exploration Building Mining ClosureMigrating movements Economically active population Employment Employment by the mining company

Employment by the contractors Wages paid by the mining company

Wages paid by contractors Municipal tax receipts Provincial tax receipts Industrialist and commercial rises and drops

Purchase of factors of production and services by the mining company and by the contractors

Gross domestic Product Externalities BIBLIOGRAPHY



338

The analysis and conclusions of this paper are based on the author’s experience as President of the YMAD company during 1992-1996 when the project came into life and on the field works carried out in the year 2001.



339

SUSTAINING INDICATORS ON MINING. THEIR MANIFESTATION IN CUBA

Lic. Mercedes M. Valdés Mesa

Consultantship and Registration Direction NATIONAL OFFICE OF MINERAL RESOURCES

Address: 666 S. Allende Avenue b/s Oquendo and Soledad, Centro Habana, Havana City, Cuba - Code: 10300

e-mail: [email protected]

INTRODUCTION

The importance of mineral ore for the development and industrialization of any country, the depression of the metals market prices in the last period and the geologic and even geographical and economic characteristics in Cuba justify the defense of the geological and mining patrimony of the country.

The legislative movement happened in Cuba in the previous decade, fundamentally in environmental, mining and fiscal matter, seen as a system and under the rule of guaranteeing the protection, development and rational use of the natural resources, in our consideration and concerning with other aspects, it allows a sustainable mining.

The exploitation even of non-renewable mineral resources could be sustainable if in first instance the country is able to adopt a politics that guarantees the use and the rational use of the resources and its strong control, if it reports economic benefits not only for the operating entity but for the country, for the society in its group, if it doesn't commit the protection of the environment, being compatible with the environmental interests and even with other prioritized activities and equally necessary and indispensable for the national



340

economy and if it guarantees the social and cultural development of the community.

Presently work is approached, illustrating with a practical example of the small mining, the sustaining indicators kept in mind to authorize its exploitation, pretending the conclusion that the relativity of these indicators presupposes its use depending on mining type to carry out, of the economic, environmental and social characteristics of the territory where it will be developed, if it is a developed country or developing and even the implanted social political system.

It is a responsibility of all to adopt the measures, to propose and to approve the normative ones and to implement the procedures that allow the development and advance of the mining so that it contributes to the current development of the society and preserve the well-being of the future generations.

1. NATIONAL MINING POLICIES

The States to guarantee a sustainable mining has the responsibility of adopting mining policies that guarantee the exploitation, the use and the rational use of the mineral resources in function of the interests of the Nation, so that it facilitates:

• Agile procedures are adopted for the grant of the mining rights, but they allow the compatibilización, ruled by the State, of all the existent interests in the area and with independence that the public utility of the mining is declared and its preferential right can coexist, as long as and until it don’t be affected, by other activities.

• The grant of the mining concessions is delimited in time and conditioned to the execution of obligations guided to a planned mining according to the existent minerals reserves in the country and to the necessities and present and future projections, to the



341

use of technologies and methods and introduction of innovations that guarantee not only the use of the main and accompanying minerals, but the evaluation of those ones, to the execution of the principle of uninterrupted work that impedes the existence of unproductive areas for sector interests and in detriment of the most convenient thing for the society.

• The adoption of fiscal systems that although they can be attractive for the investment for the benefits of all type for the community, preserve the national and territorial interests and regress benefits for the whole society.

• The approval of administrative actions as regards exports–import, tariff, etc. protecting the country.

• Inspecting organs are institutionalized to guarantee the fulfillment of the normative and the execution of a strong control in representation of the State as proprietor of the mineral resources.

2. SUSTAINING INDICATORS.

Starting at the sustaining designed by and for man it is translated in the rational use of the natural resources to achieve a superior well-being and bigger quality of life without committing the acting of the future generations, it is need to concrete the sustaining indicators relativity.

It is not possible to apply the same economic sustaining indicators in a developing country where the largest quantity of mineral resources exploited, fundamentally the metallic ones, are not consumed, they are exported and being in some of these countries one of the main entrance items that in a developed country high consumer of raw materials importing their majority, to satisfy their industry its high technology industry and with a marked tendency to recycle.



342

The same environmental indicators cannot be applied in developing countries where they exist the biggest quantity mineral ores in locations and the extractive industry with more environmental impact that in the developed countries with smaller extractive activity and application of cleaner technologies.

It is not possible to apply the same social indicators where most of the population is sunk in the poverty or below this, where the percents of illiteracy are highest, where the labor alternatives are limited, where the indexes of mortality rise and the population's great sector doesn't have access to the infrastructure of drinkable water, sewer system, etc. that in countries with a high level of life.

The equitable application of the sustaining indicators discriminates against to the developing countries and the condemnation to the reduction of its mining activity.

2.1 Economic indicators

One of the applicable fundamental economic indicators to all mining type is the quantity and the use of the reserves of the mineral resource that it will be exploited starting from their condition of not renewable. As the way the use is integral, minimizing the rejections, being enlarged the range of uses and guaranteeing in a rational period according to the development projections and represent an economic benefit that is reverted in technological advances that it even allows they diminish the future consumptions it will be a positive indicator of sustaining.

So that the development is sustainable the benefits should overcome the costs under the slogan of making minimum the cost, but achieving certain yield level and to get the maximum of effectiveness inside a budget limitation, obtaining the maximum well-being not only for the operating entity, but for the collective with a relative shortage of the bud gotten funds. The economic terms: investments, operation costs, etc. have to be transformed in



343

employment, supply security, infrastructure of public use, etc., translated into social well-being effects.

The production costs are among the economic indicators that are used in the mining, the profitability, the taxes in favor of the State regress in benefit for the whole society, the distribution of works and wages, the percentage of wages, the proportion of the payment payroll devoted to the teaching and the training, the energy consumptions, water and other resources, etc.

In Cuba there are some of these economic indicators that in a given moment and under specific circumstances are subordinated to social indicators, like profitability that although it is minimum to be almost in the balance point or in their minimum influence in the macro-economic parameters represents a social benefit for the community.

2.2 Environmental indicators.

Although the mining extractive activity impacts strongly to the environment, when being limited in time it allows the partial rehabilitation of the affected area, however the change of the use of the floor is at least an environmental indicator of transcendence at least for Cuba, for its size, forms and geographical conditions, because the rehabilitation in many of the cases doesn't allow the total recovery of the physiognomy of the environment neither the conservation of other natural resources; so that the importance that the extension of the areas for the extractive activity is limited strictly and from a rational position to the necessary levels of production and useful life of the project, what allows the amplification of other important economic activities as Agriculture.

Another environmental indicator of supreme importance for our country is the erosion level, in our case to be an island, so that the special attention necessary to lend to the rehabilitation in time, at least storm, of the exploited areas.



344

The disposition of the drainage of the waters during the extraction influences significantly in the contamination and the conservation of the quality of the water, so it is a parameter to keep in mind in the extractive activity and also for the characteristics of fundamental importance in Cuba.

Other indicators as emission of pollutants depend on the mining type that is carried out since it is not similar the impact that represents the emission of sulfurous dioxide in the process, say from the nickel to the emission of powder in the arid exploitation.

The indicators of health related with illnesses because of mining activities, the levels of noise, vibrations, and the high temperatures and the fulfillment of the protection actions and hygiene of work and mining security are parameters that should be exhaustively reviewed for their application.

Others of the environmental indicators that are used in Cuba and that they are appraisable they are the volumes of extracted sterile and the expenses in their disposition and possible use, affectation to the species and the expenses for their protection and rehabilitation type according to the planning of the country and their cost

The emissions of pollutants, percentage of supply reduction and quality of the water, the use of the floor and erosion risk are among the environmental indicators that are used in Cuba, affectation to the biodiversity, etc.

2.3 Social indicators.

The mining extractive activity should not only be seen as producer of material goods, but as employment source, as formed and continuity of traditions, like part of the culture and the identity of a town and from that point of view and leaving of the territorial classification should guarantee the economic peak of a territory, qualified personnel's formation able to develop the industry with the smallest possible strange personnel and to contribute to the formation



345

of values and maintenance of cultural traditions that are inherited from generations to generations and even to foresee the professional acknowledgment to other activities when it is not possible to continue the mining activity.

The social indicators should not be discriminated against in any case and they should be appraisable as soon as they represent starting from the activity mining benefits in the levels of the population's entrance, increase of the recreation and the sheerness and the access to the same ones, elevation of the education, training decrease of the mortality, etc., with the investment in the community in infrastructure and services for their residents' enjoyment

In countries like Cuba the participation of the members of the community, the absence of conflict socials for the levels of security and the of the indicative socials is of supreme importance, in such to way that still in investments with minimum earnings if it represents benefits for the community they plows considerable viable.

3. MANIFESTATION OF THE SUSTAINING PRINCIPLES OF MINING IN CUBA

We have taken an example of small mining in order to illustrate the sustaining indicators that were kept in mind to authorize the exploitation.

One of the territories with bigger mining development for the resources it had was located in the most western county, Pinar del Río, what bore to the development of an entire infrastructure dedicated to those objectives, including a mining ability and geology, with endemic of professionals' of the area formation. This county also has an extension of 10 925 square km and a population of 737 342 inhabitants, territory with having meant national importance for the environmental interests for its unique values in its landscapes and its vegetation, so that 30 protected areas of different handlings have been



346

declared with a total extension of approximately 2094 square kilometers, and that it has paid a special attention to the reforestation that experienced a growth of a 11,6% in the last two years and where was invested an approximate of 2,8 million pesos in the last year.

The mining tradition already existent in this province for the opening of the Matahambre Copper Mines, at the beginnings of the XX century, was reinforced with the opening of to it mines of gold, continued by another of copper and gold, exploitations of sand of good quality and the expectation of exploiting other polymetallics, being depressed the activity in the last decade of last century for the exhaustion of the mineral resources of Matahambre, the rise of the prices of metals in the international market, the reduction of the demand of raw material for the industry, among others, what meant to reduction of the workers dedicated to the mining sector between the 96 and the 2000, nevertheless to the adoption of social procedures that guaranteed the continuation of the mining tradition and the creation of new employment sources in agricultural activities and of services, so that it was necessary to look for alternatives in mining.

Previously, in the eighties decade and because of the existence of quartz-containing sand reserves of high quality, the State decided to declare as reserved mining areas several perspectives ones located in Pinar del Río: among them Bailén, Santa Teresa and San Ubaldo. By the middle of the year 1980 it only began the exploitation in a very limited area and with very restricted uses, only for the glass industry.

Those referred areas are already located in the municipality of Guanes in Pinar del Río, that has a population of 37 281 inhabitants, and only the 35,4% in labor age, the fundamental economic activities devoted are the Agriculture, fundamentally dedicated to the forest resources, the Mining and the Fishing, and although in the territory the growth of several economic and social indicators was appreciated, like the general investments increased in



347

18,2%, the population experienced a growth of 3,1%, the expenses in education also increased in 15%, those dedicated to the public health about 8%, with a doctor per 190 inhabitants approximately and 58,4% dedicated to the community medicine, and the social assistance with an increase of 12%; the mining fell however in 9% in the period between the years 1995 and 1999, what implied a reduction about 5% of the personnel's dedicated to the mining that it was low when representing the labor population's 1,1%.

Starting from these valuations and perspectives of new markets it was decided among other actions to conclude the study and to enlarge in extension the exploitations of these areas and to enlarge their uses, not only to the glass production that was the traditional national consumption, but also to the cement production, to the construction, to the ceramic and the export. It is necessary to point out that the production of silica sand had experienced a reduction from the Year 96 to the 2000 in 57,4%

Several reefs existed, among them, the environmental interests that could be opposed since exist a total endemic of 229 units and a strict endemic of 50 units in the area, their proximity to the Cuyaguateje River, located in their nearer point to 2 kilometers, basin hydrographic of national interest and with a sustained pollutant load of 2,56 tons DBO/day; as well as the new uses it was sought to dedicate, not foreseen initially, it should be meant that they constitute the only locations in the country with more than 99,5% silica and an iron content fluctuating between 0,010 and 0,17%, which determined them at that time, they were protected only for the glass production, the optics and the chemical industry.

Carried out the economic feasibility study in all these areas the project was viable:

• Their quaternary flat morphology of silts of marine alluvial origin, where the geologic cut is represented by white, brown and yellow sands with a power up to 4 meters from its surface, the



348

possibility to use an already existent plant with capacity of production of about 180 000 tons/year, from which was exploding only 10% of its capacity, the expenses for the change of use of the floor were minimized then when being most inside protected mining areas, given in management to the Ministry of the Basic Industry and the prohibition of carrying out agricultural activities, the very next existence to the plant of rail facilities and road ways, they fixed the production costs in an average of 2,15/MT in the one dedicated to the construction up 14 for the other more special uses, to the beginning of the investment, and annual utilities also to the beginning of the investment of approximately 455,19 MUSD. Besides the increment of the economic activity in other sectors, fundamentally that of the transport.

• Row material supply prevails for two cement plants, dedicated its final production a part to the export which earnings financed another part for the construction of social works, supply of sand for the construction and the ceramic for the constructive works of the capital and the other western provinces. The existent demand for the traditional uses was of 43 000 annual tons, with a demand perspective to use it in the ceramic and the construction up to 157 435 tons/year

• Increase of 66 workers that it represents a growth of the labor index in 0,5% of the population's in labor age dedicated to the mining, and the employment of 4% of the utilities in the personnel's training.

• Although for legal command it is formed a bottom for environmental rehabilitation of 5% of the total of the investment, the areas that don't present endemic species become rehabilitated naturally and partly of the area this rehabilitation is obtained with the deeming of the bench mark of exploitation for lagoons for “alevines” to the feeding of existent crocodiles in the area and the



349

guarantee of conservation of the endemism of the area that was of 95% until the moment, thanks to its double protection.

Presented the corresponding requests to the Mining Authority a compatibilización process began with the Ministry of Science, Technology and Environment, and at the same time with the other willing organs, being reached agreements in those that areas were excluded that environmentally was not possible to explode and being limited strictly to the mineral reserves that belonged together with the production volumes that are foreseen, besides other protection rules related with the equipment to use, the roads to use, the obligation to recycle the water, etc. In a same way it was defined how to rehabilitate from the beginning.

On its hand the Mining Authority and according to their function to look after the rational uses of the mineral resources carried out an analysis of the volume of the mineral existence it reserves, up warded to 17 168 800 tons, of their levels of quality for the existence not only of white sand, but the brown and the yellow ones to 50% of the total of the reserves of the current levels of production of the industry that demands of this raw material and the future projections took into account the decrease each time larger than the demand of the glass industry among others causes starting from the recycling of its production; integral uses of the whole resource at a minimum of sterile; the emission like pollutant to the atmosphere practically only powder in less quantities than the established ones; as well as the non affectation at the freatic level and it decided the blocks that could be dedicated for the construction and the ceramic and those that had to be reserved strictly to the metallurgy, the glass, etc., so that a part of the earning fixed between a 8 and 10% was invested in the modernization of the plant allowing a better classification to obtain a bigger diversity of grains dedicated to different uses, and the hydrociclons introduction for the obtaining of highest purity of the mineral for more demanding uses, all that guaranteed a more rational use of the resource.



350

4. CONCLUSIONS

It is possible a sustainable mining if the indicators fulfill that it is economically feasible for their profitability, if it reports economic benefits for the whole society, if it doesn't commit the protection of the environment and it is compatible with other activities prioritized for the national economy and if it guarantees the social and cultural development of the community.

The sustaining indicators are relative and their applications depend on the mining type to carry out and of the characteristics of the territory where it is developed.

It is indispensable the paper of the State as long as it approves mining policies that rule strategies for the earlier fulfillment of these indicators and to create organs and control mechanisms to their execution and inspection.

The adoption of global strategies is imposed for the application of the sustaining indicators in developing countries.



351

PROPOSAL OF SECTORAL ENVIRONMENTAL INDICATORS FOR THE TERRITORY OF MOA.

Rafael Guardado Lacaba1 and Olga Vallejo Raposo2 1Departamento de Geología ISMM

[email protected]; [email protected] 2Aspirante a Doctor de la Red ALFA/CYTED. Escuela Técnica

superior de Ingenieros de Minas de Madrid. [email protected] Departamento de Geología. Instituto Superior Minero

Metalúrgico de Moa.

ABSTRACT

The environmental indicator allows an express diagnostic of environmental changes happened in the mean. They are a reflection of conceptual organization for the evaluation of the changes in the ecosystems as a result of the human action.

The authors shows a proposal of environmental sectorial indicators that to separate into trend indicators, impact indicators and economic indicators for the environmental geo-mining. This impact has been considered as devastating but the same time it has been a source and support for the well being of the people of the territory and the nation.

This indicators allows to develop the work multidisciplinary better, to take with but rigor the environmental administration and the classification of the territory, being able to make decisions more specify and opportune.

Keys Words: environment indicator, environment sectorial indicator, mining- environment ordination



352

1. INTRODUCTION

Moa is a municipal belonging to the province of Holguín that is located in the north-eastern part of Cuba. It possesses the biggest reservations of nickel in the country which implies an important mining- metallurgic activity in this territory. It was in the decade of the 50´s when we explored with more intensity the mineral wealth of the region and in the second half of this decade the assembly of plant begins for the extraction of the nickel (Company “Pedro Soto Alba”). As a consequence of the construction of the plant and the lack of employment in other regions of the country, a considerably great migration takes place, in the municipal of Moa. At the present time there exists two mining and metallurgic companies that are devoted to the extraction of the nickel in this region, the above mentioned undertakes technology of leaching to pressure and the other Company “Major Ernesto Che Guevara” with a technology of carbonate ammonia. The is presently another plant called ¨the Camariocas that is in construction phase.

The productive development of the mining- metallurgic industry causes a great impact on the environment. This deterioration is owed partly to the irrational use of the geo- resources, for which there is minor sustainable development, considering that a key tool that marks sustainable development is environmental indicators.

An environmental indicator can be defined as “a variable that has been socially endowed ,one derived of its own scientific configuration, with the purpose to reflect in a synthetic way, a social concern with regard to the environment and apply it cohesively in the process of decision making” [Berger, A.R. 1983]. A peculiar development of the environmental indicators is the indicators of sectorial integration. These indicators interrelate the mining- metallurgic sector and the environment, with the view of decision making.



353

The environmental indicators constitute a fundamental instrument in the development of the environmental politics and, it orients us on the measures used in the utilization the land . In the last years it has acquired relevance because they assist in the decision making of the mitigation of the environmental impacts.

Working with the environmental indicators requires synthetic and scientific information that will allow this way to facilitate the decision making in the environmental politics. The origin of these environmental indicators is in the social indicators. But contrary to this, the environmental indicators arise out of a political urgency and they have a computational and technological development that did not exist previously. The employment of the environmental indicators has two reasons; 1) to have the appropriate information to make decisions with respect to the protection of the environment, and for a pursuit of the same ,Organization for the Cooperation and the Economic Development, OECD, 1994) 2) The necessity to reduce the great amount of scientific information from the environment to a governable number of parameters, appropriate for the processes of decision making and of information it publishes (Environment Canadá, 1991).

This system is approached by diverse countries each one with a characteristic system of indicators. To have an international vision we explain some of the countries that have developed their systems of indicators recently. The organization for the Cooperation and the Economic Development (OECD) it has among their objectives to promote the sustainable development. For it proposes a system of statistical environmental. This same model of systems of environmental indicators is also developed for Spain.

In 1991 Canada has defined a system of environmental indicators of which has continued working. The Agency of Environmental Protection of Sweden has also proposed in march a system of environmental Indicators able to offer a global vision of the



354

state of the ecosystems. The European Union has three generations of statistics on the state of the environment, and the system of indicators of Pressure - State - Answer. The objective of the Norwegian System is to provide indicators of the state of the environment, meaning , response to the pressures caused by the human activity. The Economic Commission for Europe of the United Nations (CEPE ) has developed in the year 1985 a proposal and The Low Countries present a system from the political point of view. The program SCOPE (Scientific Committee on Problems of the Environment) in collaboration with the Commission on Sustainable Development of the Economic and Social Council of the United Nations, has embarked on a project on Indicators of Sustainable Development.

The OECD has also elaborated an application of the systems of indicators of sectorial integration for the sectors of the energy and the transport.

The environmental indicator should allow a succinct, comprehensible and scientifically valid reading of the environmental phenomenon in question. This indicator will describe a field of information, constituting a synthesis. The indicators should respond to the environmental questions that interest in decision making. An unique model of system of indicators doesn't exist. The environmental indicators are dedicated this way to provide an added vision of the state of the environment of a country, coherent with the dominant and useful social interests for the processes of taking of decisions in this field.

The authors in this work propose a group of environmental indicators that allow you to order the environmental mining work of the territory and to reach a sustainable goal inside the mining- metallurgic activity of the region. By way of summary we can point out that the group of systems of indicators proposed for the mining -metallurgic development in Moa is the indicators of sectorial



355

integration and the objective of these it is to integrate the environmental aspects in the sectorial politicians

2. CARACTERÍSTICAS OF THE ENVIRONMENTAL INDICATORS AS POLITICS OF CLASSIFICATION AND ENVIRONMENTAL -MINING PLANNING

The conceptual debate of the levels of the sustainable development seems that this arriving to its end, the technological efficiency, the technological quality of production of products, the recycle of materials and the development of technologies with a rational domain of the geo-recourses will have to attain a practical approach to the sustentabilidad of the land. In this it plays a great role in the environmental indicators, these values considered inside maximum and minimum levels would allow us to know the transformation that they carry out inside all type of technological process. These values allow us to know the productive quality of the system. It is as if the causes and effects you can express, quantitative and qualitatively for the I implement from a new diffusion of a technological system to implement in the mining metallurgic and complex. They are not economic indicators, it is an indicator that measure the sustainable development: population density, quality of the development of the productive process, deterioration of the natural and human resources, levels of contamination of the physical means, etc. defining the load indicators, state, response and sustainability are the great tasks that we have before all types of systematic mining metallurgist process, and their social incidence in the population. There are four themes in the Organisation of the Development of Sustainable Mining –Metallurgy

(ODMMS) we have proposed. The following based on the elements toasted by the Calendar 21 and other rectors documents:

1. establishment of a classification politics and plantations.



356

Analysis of the mining politics

Analysis of the security and stability

environmental Administration and rational use of the soil.

environmental Administration and sustentabilidad of the primary and secondary activities.

2. to improve, to perfect, to rectify the Administration of the Natural Resources.

Rehabilitation and conservation of the land.

efficient Use of the hydrous resources.

efficient Use of the mineral resources.

efficient Use of the process metallurgist's technological mining.

3. training of the institutional and human resources.

training and education.

Participation in the mining – Metallurgic development.

4. sure opening of the use of the geological- Mining activity.

geologicmining metallurgic Administration. Exploration, exploitation, prosecution of the mineral.

Application and technological administration.

Efficiency miner metallurgic.

The indicators can be developed for each category of the Organization of the Development Mining Sustainable Metallurgist (ODMMS) in such a way that allows to measure the conditional ones and the critical tendencies of each one of these sectors. In general, the changes of the sustentabilidad are manifested naturally three-dimensionally in the environmental thing, the economic thing and the social thing, and also in the necessities of the international trade, that



357

is to say in the related with the economic growth and the protection of the means; all they are determined by a dynamic system that will be balanced. The three elements of the sustainable development are valued with certain effectiveness. These factors will include:

Exploration and application of technologies.

• The variations of the market / I trade international.

• The assignment of resources (investments in the urban, rural and the industrial thing)

• The population's · Capacity amble (fundamental natural resources)

The indicators of the sustainable development possess enormous changes inside the development mining metallurgist of each region, these three elements are not considered equally in the different countries and their influence in the territorial classification it plays a great importance. It is ignored until the moment the development of environmental indicators that you have been generalized for other countries, to our point of view this is due to that the development geo - mining metallurgist is variable in the different countries and regions of the planet. In Cuba, these activities are very institutionalised through the state, and this allows to develop the activity of environmental administration better.

3. APPLICATION OF THE ENVIRONMENTAL INDICATORS IN THE TERRITORY OF MOA.

In spite of the great environmentalist work carried out by the Cuban revolution, the time has been very short to be able to have abundant environmental data. This is one of the problems with those that is the study territory, which hinders in great measure the proposal of the environmental indicators.



358

For the territory of Moa a mining metallurgical city, the most appropriate thing is to propose a system of indicators of sector integration. The objective pursued by the sector indicators, is to integrate the sector aspects in the environmental politicians. It is for this reason that the sector administrations are the main ones to finish their development.

This type of indicators is a field of relatively new work, they go directed to the taking of more specific decisions. The sectoral environment is the activity geo - mining and metallurgic, main activity in the area. The proposal is based in the diagnosis of the existent environmental problem in the territory; that they reflect pressure, state of the means, and the answer of the means developed by the activity miner - metallurgic.

To establish the proposal of indicators of sectoral integration we follow their analytic mark:

1. excellent environmental sectoral tendencies. These are the performance motor in the mining activity.

2. environmental impacts. They indicate us the state of the means and they are function of the performances of the mining activity.

3. economic indicators.

Next the tendency indicators are exposed, of impact and economic.

4. INDICATORS OF TENDENCY

They are those sectoral indicators that, without revealing environmental aspects directly, for the systemic nature of the phenomenon of contamination and exhaustion of the resources, they allow to derive positive sectoral tendencies or negatives for the means. (Jiliberto, R. 1996).



359

They have been considered that they are four the sectoral tendencies.

Eficiency The efficiency as much in the mine as in the plant is a good indicator of integration of environmental considerations in the sector. This indicator gives us to know the rational use of the resource.

The indicators associated to this tendency are:

- Mineral loss

- Dilution

Conditions of the mining resource. The content of the different mineralogical component present in the location indicates us if the mineral is capable for the process metallurgist or on the contrary it is part of the rubbish, of there the importance that has to know these contents.

- Relationship among the pulled up material, the one surrendered and the exit of the process (process of technological mineralogy).

- Given mineral relationship and the nickel + obtained cobalt.

It is necessary to know the quantity of given mineral and the nickel + cobalt obtained in the process metallurgist, and to determine the variability of this relationship and to evaluate their causes and consequences.

Technologies. To know the changes of the used technologies and developed to reach but production in the exploitation of the location with the knowledge of the increase or the decrease of the impact that he/she takes place to the environment.

- nº of modifications in the technology - year pulled up Material (I clear and mineral). it is important to know the material started up since it implies an increment in the impacts environmental associates, such as atmospheric contamination, noise, etc.



360

- pulled up material (t/año)

5. INDICATORS OF IMPACT

The mining activity maintains a dimensional relationship with the environment, on one hand he believes the development in the municipal, and for another it diminishes the well-being by means of diverse aggressions to the means. These indicators are contained by environmental areas.

The main repercussions of the activities of the energy sector on the environment you can include in the following topics:

Atmospheric Contamination. Emission of a series of noxious gases and powder to the atmosphere for the process mining metallurgist. The indicator associated to this topic:

- polluting emissions (SO2, SO3,..)

- powder

Affectation to the vegetation. The mining activity affects to great numbers of vegetable species, some of these species are endemic.

- Ha forests cut of for the mining

- Ha. of autochthonous vegetation

Afectación to the fauna. As consequence of the loss of the habitat of the fauna for the above-mentioned mentioned many animal species die or migrateto other areas.

- Nº of vulnerable species and in extinction danger

- Introduced species

Production of solid residuals.

- t tail / tNi



361

Production of liquid residuals

- t WL/ tNi

- (WL: acid liquor)

- Affectation to the superficial waters

Quality

- longitude of the contamination of the hydraulically flow

- PH

- Temperature

- Chemical composition of the waters.

· Affectation to the underground waters

Quality

- aquifer nº contaminated by sulphates, chlorides, heavy metals, others.

- PH

Affectation to the population

- nº sick people for toxic environmental / year

6. ECONOMIC INDICATORS

The economic characteristics can be interrelated with the environmental aspects. The production, the expenses, etc. can be analysed from the environmental point of view. With these indicators it can be carried out an analysis and economic valuation of efficiency guided environmentally.

Inside the tight of economic indicators they have been considered the following topics:



362

Production of the mining sector. He/she gives us an idea of the economic situation of the sector for the possible politicians of environmental character.

- t/año

- International Bought ·.

- nickel price USD/t

- I price of the cobalt USD/t

- Expense of the mining metallurgic process. They are the expenses that integrate all the phases of the mining cycle.

- expenses in mine

- expenses in plant

- expenses in transport

- energy expenses

- expenses of inputs

- expenses of taxes

- expenses of security and risks

- other expenses

- expenses in I+D (investigation and development) environmental. It is necessary to know the expenses in activities of prevention or derived correction of environmental impacts of the activities of the sector.

- expenses in technologies environmentally favourable

- expenses of restoration of lands affected by the mining

- expenses in I+D



363

The analytic structure of this type of system of indicators can explain to herself with the following example:

First, the efficiency in the mine is environmentally a excellent sectoral tendency. In second place the mining sector generates in a direct way a series of environmental impacts that is necessary to know and to mitigate: the emissions of gases and powder to the atmosphere, the elimination of the vegetable cover and of the endemic, the contamination of rivers and seas, the increment of different processes and geologic phenomenon that spread to form different dangers and risks, the unbalanced elimination of the exploitation of the mineral resources and others. Finally, economic aspects that exercise a significant paper in the definition of the environmental profile of the sector exist: the fluctuations of the price of the nickel in the international market with the use of fuels to high prices in this market have an incidence in their use in thermoelectric plants and metallurgic with an excellent environmental impact; the necessities of inputs like the current consumption of calcium carbonate for the process of sour leaching derive significant environmental impacts. It is of great importance to highlight that a dynamics exists among these tendency indicators, impact and economic. For example an increase in the efficiency in the mine (tendency indicator), it will take a decrease of the environmental impact and in turn a decrease in the expense (economic indicator).

The analysis of these indicators is of great utility in the valuation of the environmental impacts. A way to value these impacts is to compare the value of the state pre operational and the value of the derived quality of the performance. The advantage of this method to other is that it shows the approaches continued in the transformation of the qualitative scales to quantitative explicitly.

These quantitative indexes are the base for the valuation of the environmental impacts. The qualitative information transforms to a quantitative information and consequently the valuations t become



364

of subjective to objective. With these quantitative values they are facilitated the understanding of the environmental problem as well as one has governable information for the development of political environmental.

7. CONCLUSIONS

1. with the application of indicators of sectoral integration in the territory of Moa, the main rules are to reach a sustainable development, and they constitute a basic tool for the search of solutions in the politicians of environmental development.

2. with the sectoral environmental indicators (IA) we see the existent relationship among the tendency indicators, the impact indicators and the economic indicators, serving as base for the analysis of alternative to take. The IA integrate the environmental aspects in the sectoral politicians.

3. knowing the economic indicators can be carried out a valuation of these together with the impact indicators it stops this way, to see the possibilities to minimize the environmental impacts caused by the sector.

4. these indicators besides being good for the taking of decisions are also the base for the valuations of environmental impact and I eat consequence for the classification of the territory.

8. BIBLIOGRAFIA

AGUILO ALONSO, Miguel. ARAMBURU MAQUA, María Paz y otros.1998. Guía para la Elaboración de Estudios del Medio Físico. Contenido y Metodología. Ministerio del Medio Ambiente. Secretaria General del Medio Ambiente. Madrid. España.



365

ALVAREZ ARENAS BAYO, Manuel y otros. 1996. Sistema español de indicadores ambientales: subáreas de biodiversidad y bosque. Serie monográficas. Ministerio del Medio Ambiente. Dirección General de Calidad y Evaluación Ambiental. Madrid. España.

BERGER, Antony R. 1998. Environmental Change, Geoindicators, and the Autonomy of Nature. GSA TODAY. A Publication of the Geological Society of America. Vol 8, N 1. p 3-8.

GILBERTO HERRERA R. Y otros, 1996. Indicadores Ambientales. Una Propuesta para España. Serie monográficas. Ministerio del Medio Ambiente. Secretaria General de Medio Ambiente. Madrid. España.

GONZALEZ NOVO, Teresita. GARCÍA DÍAZ, Ignacio. 1998. Cuba su Medio Ambiente después de medio milenio. Cesigma. Editorial Científico Técnica.

Guardado Lacaba Rafael 1998. Gestion Ambiental, Curso de postgrado impartido en la maestria de Protección del Medio y los GeoRecursos, Instituto Superior Minero Metalúrgico de Moa. CUBA,



367

SUSTAINABLE MINING?

GOLD IN NORTHERN PERU

Ivan Merino Aguirre Peru

SUMMARY

The mining of gold in Peru has had an outstanding development in the last 10 years; transforming to this country into one of the main producing of the world; however, this mining boom has not moved to other sectors of the national economy and on the other hand it has generated important restrictions for the residing in population's appropriate integral development the areas of exploitation. This document tries to explain the approaches of operation of the mining companies in a country like Peru, and it shows a typical case: Mining Yanacocha. At the end, it proposes some work lines to achieve that the mining is sustainable or spread it, taking advantage of the changes in the government administration and the reestablishment of the democracy in the country.

INTRODUCTION

Peru possesses a wide mining experience that began for centuries ago; when sílex was carved in Ayacucho area, the central mountain of Peru. Chavin culture began processing native gold and Electrum between 1200 and 1000 b.c. Chimu culture, north coast, (1200 - 1400 b.c.), the old Peruvians practiced the foundry of gold, silver and diverse alloys of copper, in hearths; and they developed a bound industry to this activity where they were common the laminate, embossed, welding, etc.



368

At the present time, Peru has become the seventh producing of gold of the world (3.4 million ounces approximately), the second of silver (68 million ounces), the third in Tin and Zinc (22 thousand tons and 900 thousand tons respectively), the lead room (200 thousand tons), and the seventh in copper (500 thousand tons). And the investments programmed at the 2005, they can transform Peru into the first producing of Silver and Tin, the second in Zinc, the room in copper and recruit in Gold; becoming this way the main mining producer of America. Everything considering it: The attractive legislation, the fact that the whole territory has geologic rising and detailed geographical letters; the existence of a totally automated mining Registration, and the total guarantee for the investment in the sector.

As for the biodiversity, Peru is considered as one of the 10 countries with more biodiversity: The surface of Forests in Peru is the fourth in the world environment, and in Latin America it is only overcome by Brazil. In spite of not having appropriate registrations, in flora it possesses 25,000 species (10% of the world total, of them 30% is endemic); it is the first country in number of plants with well-known properties and used by the population: 4,400 species; and also the first one in native domesticated species (128). In Fauna it is the first one in fish (2,000 species, 10% of the world total); second in birds (1730 species); third in amphibians (330 species) and third also in mammals (462 species). As for genetic diversity, the country is one of the world centers of agriculture origin. It is the first one in varieties of corn, potato (150 wild species of potato), Andean grains, tubers and other (15 wild species of tomato for example). 5 forms of domestic animals. Of four cultivation of world importance, the Peru possesses the highest genetic diversity in two of them: Potato and corn. The country is, also, well known as one of those "centers of Vavilov", for the high number of domesticated species you would originate. In a same way, the population in Peru shows multiple traditions, organizations and cultural expressions: As example you



369

can point out that only in the linguistic aspect, although Spanish is the official language, they share this space the Aymará and the Quechua one in mountain, and more than 120 linguistic varieties in amazonía.

All this Peruvian diversity is at the present time threatened, and before the dilemma: environment and amplification of human capacities or Mining1; it is necessary to study the feasibility of a sustainable Mining. For it is necessary to analyze the approaches that define the investment and behavior of the operations of the mining companies, the list of the state and of the organized civil society.

1 Farmers of Tambogrande and San Lorenzo, valley of coast of the department of Piura, north end, eminently agricultural with 4 million fruit-bearing trees, 8 thousand hectares of rice and 5 lemon thousand, as well as of other 50 cultivations whose production is exported Ecuador, Colombia, United States and Europe they are protesting, in an uncompromising way, for the installation of an auriferous mining company of Canadian womb: Manhattan. Has caused the fire of the facilities of this company in the area and the murder of the leader of the peasants, so far not resolved. At the end of May of the 2002, one carries out a popular consultation, (financed by OXFAM and with observers of diverse NGOs) where 98% of the residents you pronounces against the mining exploitation. It consults it was requested two years ago to the National Jury of Elections (JNE) and to the National Office of Electoral processes (ONPE), this I finish organism you retirement some days before having executed the consultation by pressures of the Central Government, to weigh that the current President, in their campaign, you pronounces aggressively against the installation of the mining one. In the II International Congress of Communities and Populations from the Affected Peru for the mining, organized by CONACAMI PERU carried out in Pasco, central mountain, in November of the 2001, they demanded that it is declared in state of environmental emergency the communities in those that the mining activity puts in serious risk the human health, it contaminates its shepherding lands, to animals, cultivations, lakes, rivers and lagoons, as well as against the spoil of lands, what leaves in the most complete impoverishment to the neighboring communities of the mining seats.



370

THE FOREIGN INVESTMENT IN MINING

The mining companies decide to already operate in a certain scenario on the base of approaches very defined:

- The mining resource. - Since there is only interest if it exists or there are evidences of the existence of the resource.

- The readiness of information as much for the exploration as for the exploitation. - The access to the information of quality is necessary for the taking of decisions, and better even if this information was already financed for other (State).

- The readiness of human resources qualified according to the technology to use. - The operation cost with personal native qualified, in at least some areas, it reduces the costs thoroughly.

- Relative stability of the norms juridical, accountants and financial. - The stable norms for the activity facilitate an appropriate planning and the validity of the dear ones in the "cash flow" of the project.

The previous approaches can be given in any scenario. Is reason preferred then, to invest in countries like Peru and not in the country where the company or do its proprietors reside? Given the basic supposition that Peru, their companies and the state, they don't have the enough capacity to invest autonomously in that sector. The possible answer should consider the following thing:

The necessity of control of inputs for the local industry

It can be political of the company or of the State (in the case of being a public company), to have the permanent control of the inputs for the industry where their interests are reflected. In the case of Peru, this approach is fulfilled the company Shougang whose proprietor is the State of the Popular Republic China. It is the only producer of iron of Peru and also the only outstanding location in the American coast of the peaceful one.



371

The readiness of qualified manpower to cheap prices

The legislation labor Peruvian is extremely permissible to the requirements of the companies, and before a permanent economic crisis, it facilitates that it exists a wide offer of professionals and qualified technicians and with experience at costs "moderate."

Diverse reductions of costs

Derived among other things of the negotiation power that a great company obtains when operating in small markets and the possibility of installing "lobbys" in the organs of the central power to modify or to create favorable laws. The participation in the market of final goods and inputs, as main, only or outstanding buyer, allows to obtain offers and financing that would not be possible in wide markets and developed as it could be in its origin country. The decade of the 90, it represents an outstanding change in the Peruvian scenario. In a coincidence with the coup d'etat of 1992; The Peruvian mining lobby gets starting from that date that the executive prioritizes the activity on the rest of the other sectors. They are generated, then, special norms, where the environmental thing is subordinate to the necessity of capturing investments. However, given this necessity, is the mining sector where the biggest advances settle down as for environmental legislation: Permissible limits, Environmental Impact Studies, and processes of public consultation (quite limited). The labor market also allows the use of contractors and subcontractors for almost all the operations. As long as, the legal responsibility for accidents and actions is diluted in the road.

Permeable environmental politics

In Peru a ministry of the Environment doesn't exist. The effective institutions regarding the environment, they are distributed among the different specialized units of each sector; being common the overlapping problems and an applicable common approach doesn't exist to all the sectors in the event of doubts and conflicts.



372

December 22 1994 (Law No. 26410) the National Council of the environment is created (CONAM). Their Directory conformed by three representatives "random" of the public sector, two of the managerial sector, one of the regional governments (the regional governments were disarticulated in 1998 and they begin January 1 the 2003 again) and one of the local governments (This governments lack specifically vicarial environmental abilities); the president of the CONAM is designated by the President of the Republic; but he has not been assigned level some in the system of public administration. The CONAM coordinates with and among the environmental units of each sector, it lacks effective capacity of supervision or sanction. To be in "limbo" of the state apparatus, caused for it interests explicit, it impedes coherent and stable environmental Politics' promotion.

Favorable legislation

The foreign manager that invests in mining can consent to diverse advantages in tributary matter, of handling accountant and financial; and of such operation as:

a) To repatriate the capital total and the generated utilities, including royalty's rights and payments for the use of technological transfer. In Chile one has to wait one year to repatriate the capital.

b) The free capital remittance, dividends and financial resources

c) Liberate commercialization of products as much in the country as in the exterior.

d) Stability of the régime of the exchange rate: It is used the lowest rate or the highest as it is wanted to sell or to buy.

e) And. Tributary stability; the company single pay the taxes and the effective rates to the moment of the contract.

f) No-discrimination right; any benefit for the national one benefits him immediately.

g) g. Accounting in dollars



373

h) h. Depreciation of 20% annual, generates additional rents and a reduction of the formal utilities and for it, a reduction of the effective payment for tax to the rent.

It is necessary to indicate that the collection for taxes to the Rent in the Country for the year 2001 had the following distribution that shows the following square elaborated with data coming from the Tributary National Superintendence (SUNAT).

Where the fifth category corresponds that collected employees mainly and salaried; that of fourth category mainly to independent professionals and that of third category mainly to the companies. That is to say, a difference of 7 percentage points only exists among the contribution of the group of companies that 90% of the assets of the country, and the group of employees and independent professionals that only control approximately 4% of the assets control.

In comparison, the Peruvian manager, dedicated to other sectors, only has, in outstanding way, the General Law of Societies. And this subject to a tributary pressure and relatively severe norms of handling accountant.

Also, in different countries corporate tributary analysis is applying that include to the group of companies of certain managerial group, preventing this way to avoid the payment of taxes; however in the Peru the demarcation is made by each Social Reason, that which facilitates the things for the companies, with the attaché of a possible bigger total utility generated by the "tributary effect" (So much in the Peru, as the one obtained in the origin country).

The Brazil, for example, also has special incentives to the foreign investment, but it doesn't direct them to the exclusively to the mining2: Quick depreciation for teams and new machinery for 2 Forbidden sectors to the foreign investment in 6 countries of Latin America Brazil.- Direct operation of the mining sector. Health



374

industrial production. Reduction of the rent tax for subsidies of transport and workers' foods. Reduction of the rent tax for donations. Reduction in the IVA for expenses in investigation and development.

Financing advantages

For the access to financing (in Peru, in the origin country, and in the international banking). This access not only understood by the quantity of what is possible to obtain but for the interest rates cash to those that the credit this fellow. It is curious to indicate that the great part of the available credit in the Peru is absorbed by companies or "joint venture" of companies of great magnitude that are few and many of them are devoted to the mining.

High risks in the country where you resides

Understood by the strong established norms that you must complete in tributary aspects, accountants, environmental, labor; that makes that an investment has limited grades of freedom for momentous modifications, since they would be subject of sanctions and a reduction in the utilities or the closing of the project.

Colombia.- Defense and national security. Toxic waste Costa Rica.- Public services. Sure. Hydrocarbons and mining. Distillation alcohol. Public health. Defense and national security Chile.- Lands. Mexico.- Petroleum, basic Petrochemical Hydrocarbons. Telegraphs, Radio and local TV. Radioactive materials and Generation of nuclear energy. Electricity sale to the public. Emission of money. Mail. Control and supervision of ports. Peru.- Radio and TV



375

THE MINING OPERATIONS IN PERU STARTING FROM APRIL OF 1992 YANACOCHA S.R.L, THE TYPICAL CASE

Antecedents

The extractive activities, mainly the mining, the petroleum and the fishing have caused in Peru you burden environmental problems: The biggest Andean valley in the country, has to the river of its name, the Mantaro, completely polluted.

The important ports of Ilo and Chimbote, bound to the fishing and Mining they present the worst health indexes. Fence in the north as in the south, they are threatened by overflows of the courts of waste, in a region where the earthquakes are daily.

The outlines of some managers of the sector who affirm: "The mining is the only economic activity that is developed above the 3500 meters on the level of the sea" (Charles Preble, President of the Southern Peru, Sep. 99), he's ignores the 18 million hectares of capable natural grasses for the cattle raising of Andean camel, and the industries related with them: For example, Textile of Alpaca fiber; and it can cause norms and actions that finally achieve that the traditional mining is the only one that works in this area. Their behaviors, motivated by the lack of appropriate negotiators on the part of the state or the local governments or agents of the civil society, and of an appropriate information, they cause that the bound managerial groups to the mining act with approaches of "to make the easiest and cheap thing possible." Generating of conflicts that in turn cause onerous expenses in the resolution of the same ones.

Yanacocha, the typical case.

The Newmont in alliance with peruvian group Buenaventura 3, and BRGM of France, I believe the company Yanacocha, the one

3 Company was founded in 1953, mining that has specialized in gold and silver. Landlady of 43.65% of Yanacocha, Has Joint ventures with Newmont, Teck-



376

that settled (1993) in the area of Cajamarca. The project is shown as a world record: There is alone a lapse of 9 months from the meeting of decision to invest to the obtaining of the first bar of gold and silver (Dore). The International Financial Corporation is landlady of 5%.

Cajamarca city, capital of the county and of the department of the same name, it is located in the north mountain, with minimum mining experience. It occupies it leaves of a valley dedicated especially to the cattle raising and dominated by small managers that provided milk to a subsidiary of the Nestlé.

This era the first outstanding investment for the government of Fujimori, already like dictatorial government. It is at the present time the first producer of Gold, and the one that I install the "jurisprudence" mining current in the country. Their cost net average for ounce for the year 2000 were in 95.8 US $, and 125 US $in the 2001, range in which has stayed from beginnings of their operations;

Cominco, SPCC, BHP, and Billiton & Meridian Gold. Their actions are negotiated in the Stock exchange of Lima (1971) and in that of New York (1996).

IImmpprroovviinngg SShhaarreehhoollddeerrss’’ VVaalluuee

40 0

60 0

80 0

1 ,00 0

1 ,20 0

1 ,40 0

1 ,60 0

1 ,80 0

2 ,00 0

A pr-9 8 O ct-98 A p r-9 9 O ct-9 9 A p r-00 O c t-0 0 A p r-01 O c t-0 1 A pr-0 215 0

17 0

19 0

21 0

23 0

25 0

27 0

29 0

31 0

33 0

M a r k e t C a p . G o ld P r ic e



377

product of the mark institutional Peruvian and of the wealth of the location. What allows to be very competitive, and to improve the given corporate bills the drop "perfomance" of other units of the Newmont as much in the USA as in other countries4.

Before the privatization in France of the BRGM, the Newmont and the Peruvian group, they made you the process necessary to obtain the part of the BRGM that was not outside of scandals 5. The case is still opened up in diverse parts of the orb:

Buenaventura May, 2002 4 Yanacocha is alone an example. In January 2001 Barrick Gold Corporation obtained in option the transfer of Alto Chicama project (1 200 Km2) when offering in the auction an equivalent bonus to 2.51% of the annual net sales. Barrick was the only bidder. April 23 the 2002, Barrick gave to know the discovery of around 3.5 million ounces of gold on Alto Chicama, calculated starting from 61 million TM of dear mineral, with a law of 0.057 ounces for ton. Barrick Misquichilca, subsidiary of Barrick Gold Corporation, is also owner of Pierina. In the 2001, Pierina took place but of 900 thousand ounces with a "cash cost" of US$40 for ounce. Diverse organizations of the civil society and local authorities criticize the environmental handling of this mine; and the impact of their operation in the population. Pierina is the most profitable mine in Barrick Gold (and one of the most profitable mines in the world). 5 In 1998 the Supreme Court of Peru dictated sentence in favor of Newmont in a voting of four against three. The sentence forced BRGM to sell Newmont its actions of the mine. The last year, after the popularization of videotape of the former adviser of Fujimori; the Newmont admitted to have maintained conversations with the Department of American State on the case, but denied to have violated laws. The National Council of the Magistracy agreed February 1 the 2002 to accuse constitutionally to the provisional supreme former vowel, Jaime Beltrán Quiroga for the infraction crime to the Constitution. The report concludes that Beltrán, to order of Vladimiro Montesinos, emitted its decisive vote in favor of the Newmont. Civil organizations presented complaints before the Unit of Investigations of Corruption and Fraud of the Bank World, so that this unit investigated the accusations, but the Unit remitted it to the IFC. The negative of the IFC to begin an investigation got the attention of some American legislators. Dennis Jett, former ambassador from United States in Peru, told journalists in 2001 that he remembered to have talked about the case with Fujimori and Montesinos to who he noticed that any sign of having given to French pressure would feed rumors of corruption in Peru and it would move away



378

France and USA; and this committing to the State in possible judicial processes.

He denounces miner, it is property of a company of the Peruvian partners whose main proprietor marks the rule of the managers' of the sector behavior6 .

The hectare of land acquired it to 44 US $, to Andean peasants, when the minimum price of market was of 500 US $, and with the added difficulty that a rural family in Peru, difficulty sells the entirety of its property. Mining Yanacocha controls 535 square miles (1,385 Km2), in its beginnings it controlled 100 square miles (259 Km2).

Mining Yanacocha has known how to use the different favorable norms very well: Yanacocha doesn't buy inputs or materials in outstanding quantity in the country7. Yanacocha doesn't sell its production to the interior of the country; both decisions impede the development of "clusters" or of linkages with the industry or local trade. Their main offices are located in the Peruvian capital and he/she has contracts of tributary stability and this included in the agreements of protection of investments that it impedes, of facto, to the Peruvian State some type of pressure on their operative or institutional behavior. Their contribution to the Peruvian, given

the international investors. Jett highlighted that Washington supports to the American companies in other countries, "but it would never accept the practice of the bribe." 6 In the Peru the proprietor of the surface, is not proprietor of the underground; it is the State the one that grants the concessions and the companies have to pay for her an annual quota to the treasure, determined by the quantity of hectares that possesses statement I denounce miner and if it is the resource it is metallic or not metallic. The priority that gives the State to the I denounce miner about the property of the surface it is obvious. 7 Situation programmed from the beginning of engineering of the project, since all company prefers to buy to its traditional or subsidiary suppliers, before to "unknown."



379

revenue the magnitude of their operations and results, it is not outstanding.

Yanacocha at the present time, is a great company to world scale. Its participation in the production of gold for a great producer as Peru comes closer to 50% of the total, if it is considered alone the formal operations, and to 42% on the dear total.

As for the participation of Mining Yanacocha in the entirety of extracted mining material and treaty in the whole country, it is but that outstanding. For example, of the 63 millions of T.M.S. extracted between January and March of the present year, 57 millions correspond the great mining, and Mining Yanacocha it contributes with 28 millions.

The main indicators of operation of mining Yanacocha are shown in the following square:

PRINCIPALES INDICADORES DE OPERACIÓN DE MINERA YANACOCHA1993-2001

Año 1993 1994 1995 1996 1997 1998 1999 2000 2001Extracción-TratamientoMineral 2454 8302 16107 21528 26672 38428 55660 75303 80200Desmonte 991 4033 6094 6182 15603 24983 40409 44345 78300Total TMS 3445 12335 22201 27710 42275 63411 96069 119648 158500Producción Onzas TroyOro 81497 304552 551695 811426 1052806 1335754 1655830 1795398 1995000Plata 24467 97349 180619 182979 163366 457183 826130 1536587 1966400Capacidad Planta M3/HR 243 293 429 586 765 1438 2286 2889 3900Area Pad M2 195000 526500 939500 1104500 1652500 2247500 2747500 3415500 3910500Fuente: Minera Yanacocha S.R.L.

The operations of mining Yanacocha have had a constant growth, and their magnitudes completely different to the traditional mining companies of the country, just as you it can appreciate in the following graphics:



380

Capacidad de PlantaMinera Yanacocha

M3/Hr

010002000300040005000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Capacidad de PlantaMinera Yanacocha

Area del PAD en Hectáreas

0100200300400500

1993 1994 1995 1996 1997 1998 1999 2000 2001

Producción de OroMinera Yanacocha S.R.L.

Onzas Troy

0500000

1000000150000020000002500000

1993 1994 1995 1996 1997 1998 1999 2000 2001



381

Yanacocha took place the year 2001 near 2 million ounces of gold and the projections for the 2002 it is of 2.3 million ounces due to its mined adult. In the first trimester of this year it has produced 471000 ounces.

It is not superfluous, to indicate that the city of Cajamarca has, today, an urban and residence deterioration, the violence and the delinquency has been increased. The cattlemen have been displaced by employees of the mining one in the directive of the social organizations. The only business of small scale that they have prospered they are the entertainment services, and the city is expensive for its old residents. The social spirit that one lives in Cajamarca is contrary to the company in a wide majority8 ; however, the city of Cajamarca, without the company, would enter in a bigger crisis9.

As for the environmental risk for the materials treaties10 28161000 T.M.S. alone between January and March of the 2002,

8 Motivated for: A) A traffic accident with a truck that transported mercury of Yanacocha that caused a spill of 11.2 liters of mercury in the highway between Yanacocha and Lima. The biggest spill happened, in the town of Choropampa to some few kilometers of Yanacocha, located in one of the sources of "Blind Cockerel", main it dams of the north of the Peru. At the beginning of June of the 2002 organized commoners they have presented three judicial quarrels before tribunals of USA on this spill. B) AND for the exploitation of the Hill Quillish that represents at least 15% of the reservations of Yanacocha. The residents argue that the Hill Quillish is the aquifer mattress of Cajamarca; Yanacocha points out that studies in charge by the International Financial Corporation (partner of Yanacocha) they confirm that the impact of Quillish on the quantity and quality of water is minimum. 9 The main business and inclusive projects of diverse NGOs (CARE for example) in Cajamarca, they carry out their actions in function of Yanacocha. 10 Materials treaties with cyanide of potassium, product of the lixiviation process with activated coal that it uses the mine; and deposited in the properties of the mine that it is located in the "divortium aquarium" of three basins of national importance and with high standards of rains and humidity, in an area highly seismic. The cyanide represents 10% of its total purchases, and it comes from the "Dupont Chemicals."



382

little it has been studied to discard it. The movement of lands for the expansion of the lixiviation courts not represents for Yanacocha less than 40% of the its annual investment for the 2002 (202 millions of US $), and enter 10% to 15% to the mine development. Other outstanding percentages in their investment are devoted to geology of mines, perforation for delineation of locations, and some 15 Millions of US $for a plan of control of silts.

THE POSSIBILITIES OF THE SUSTAINABLE MINING

In the Peruvian scenario, the possibility of a sustainable mining is feasible, but anything easy: To the margin of the commendable initiatives that has the State11, the normative mark of the activity first should adapt to the agreements that the own country has subscribed and to prevent that officials, not very objective, seek to establish norms that alone they drive to the conflict and the no-integration of the mining with the other activities.

In a same way, it should be to restructure the tributary system that without modifications in the rates and in the quantity of taxes, allow an exact collection with approaches of justness and effectiveness.

As for the respect to the biodiversity and their maintenance, already several managers and state officials, they have been given bill that said respect, it is of supreme importance Peru it doesn't only stop but for the whole region; it represents the economic, alimentary, and productive security, security in the negotiations so much present as future. The world tendency favors the consumption and trade of the processes that consider the environmental standards (ISO 14 001). Además la relevancia de la biodiversidad ya esta siendo considerada en las entidades de financiamiento multilateral y de asistencia 11 Politics' proposal is presented in this respect, of the Ministry of Energy and Mines. March 2002



383

técnica; such as the Agreement of Biological Diversity, the " Program 21" and the Global Environment Fund (GEF). All the above-mentioned imply a great responsibility that is not limited to its frontiers. They should be promoted and to establish sanction mechanisms and with appropriate effect before fragrant violations of the environmental legislation and the international norms in this respect12.

As for the reductions costs "not tied explicitly to the mining operation", these they can cause sanctions inside the GATT and the different forums of regulation of the world trade; Restricting markets and becoming an onerous politics to medium term. There have already been blockade initiatives to diverse factories with the argument of hidden subsidies (to maintain low salary costs), and an evident example is that of the difficulties of the European steel industry with the United States.

In the face of the shortage of you lead qualified and appropriately informed in organizations of the civil society, the solution goes by wide programs of institutional invigoration and the diffusion of the advances, especially those generated in the specialized forums, as the XIII CYTED.

12 A group of measures that caused mainly modifications in the price of the actions, since most of the big mining company's trade on the stock exchange, will have immediate answer on the part of these companies, in comparison to any judicial or administrative initiative.



385

PRACTICAL SUSTAINABILITY INDICATORS IN MINING: THE CASE OF ECUADOR

Cornejo Martínez Mauricio (l), Carrión Mero Paúl (2)

(1), (2) Escuela Superior Politécnica del Litoral SUMMARY

From the decade of the 70’s, Ecuador has experienced a change of vision regarding to the mining, with an impulse to the metallic exploitations and those not metallic that have taken to consider -to the mining- like an alternative that motivates the economic growth of Ecuador to medium term. However, always hidden for the oil exploitations that it has paid the economy of the Ecuador even in the moments of the most serious economic crisis that Ecuador has confronted; the mining has shown a growth that deserves to be considered.

As it was previously said, we notice the little incidence of the mining in the Ecuadorian economy, due to their relatively young mining tradition. Nevertheless, the mining potential is encouraging. According to PRODEMINCA, Ecuador could have a high potential due to:

1. Favorable position along the coast of the Pacific Ocean, inside a classic section of plate tectonics.

2. Indications of alluvial gold in most of the rivers in the spurs of the Andes mountain range, as much the oriental as the westerner, they demonstrate that the primary fields are still hidden.

3. The antecedents of proven and exploited fields from the times of the conquest, for example: Nambija 62 T and Zaruma - Portovelo 160 T.

4. It is considered that the 16 bigger deposits of gold in Ecuador possess reservations of > 700 T of gold and > 600 T of Ag (PRODEMINCA, 2000). On the other hand, the main metallic



386

and not metallic exploitations concentrate geographically on the Provinces of Guayas, Zamora Chinchipe, El Oro and Azuay that possess more than a third of the total population of Ecuador. Also, it fits to point out that due to the bureaucratic entity and lack of laws that offer security for all the social factors, these provinces find themselves in a position of abandonment with many difficulties that the centralism has originated.

However, many organizations have helped to the informal mining in the environmental, social and institutional aspect without losing of view their technical motivation as the CENDA-COTESU-PROJEKT CONSULT that have offered advice in the question of detoxification and neutralization of mine waters and mitigation of the effect caused by the inappropriate use of mercury in the mining districts.

In consequence, the present work will try to synthesize, the functionality of the use of sustainability indicators in the Ecuadorian mining extraction. Without losing objectivity, the repercussion will be analyzed inside the mark of sustainable development of the country in front of the acquired commitment before the AGENDA 21 of the United Nations. Also several series indexes will be established that will help to the evaluation inside the mark of sustainability of the Ecuadorian mining industry. 1. FRAMEWORK OF SUSTAINABLE DEVELOPMENT IN ECUADOR.

1.1 Antecedents of Ecuador.

The Ecuador has a total surface of 283,560 Km2, of which 6,720 are sea and bodies of sweet water. Also has as its main current resources: petroleum, wood, fish, and banana. With an arable surface, according to the last agriculture and cattle raising census, of 12,640,000 Ha.



387

1.1.1 Social general mark of Ecuador.

The population of Ecuador is 13,183.978 inhabitants, with a population growth rate of 2%, with natality rate of 25.99 births / 1000 inhabitants, a mortality rate of 5.44 deaths / 1000 inhabitants, with population's total relationship of 0.99 men / women, with a life expectancy of 71.33 years, with a fertility rate of 3.12 born children / woman. These data were processed by national institute of statistical and censuses until July of the 2001.

1.1.2 Institutional general mark of Ecuador.

The type of government from Ecuador is the Republic one; it has 22 provinces whose administrative divisions are under the Law of decentralization that governs the Ecuador, reason why it has autonomy about environmental, social, educational and institutional aspects. • Executive ramification: presided over the President Gustavo

Noboa from January 22 the 2000, chosen by the National Congress after the elect President's Jamil Mahuad deprivation. All the Ministers are designated directly by the President of the Republic.

• Legislative ramification: Conformed for the National Congress with 121 seats; 79 members are chosen in popular election at national level to serve during four years known as national deputies, the other 42 are chosen individually, and each province has two representatives to the congress known as provincial deputies.

• Judicial ramification: Directed for the Supreme Tribunal or Supreme Court of Justice

As main groups of political pressure we can mention the CONAIE (Confederation of indigenous nationalities of Ecuador), environmentalist Groups, unions, syndicates, etc.



388

1.1.3 Economic general mark of Ecuador.

Ecuador possesses a wide range of natural resources, thanks to its geographical location, it possesses a benign climate for the agriculture, a wide mining potential and a considerable oil reality.

The country exports primary products as oil, bananas, shrimps, gold and flowers, whose fluctuations in the world market prices can have repercussions in the general economy of the state due to its participation in the national GDP. It is necessary to emphasize that the economic growth has not been considerable in the last years, in spite of the economic crisis that still carries its sequels. This crisis caused by inadequate fiscal measures to Ecuadorian reality, for natural phenomenons, such as the Phenomenon of “El Niño” and volcanic eruptions like the Tungurahua and the Guagua Pichincha. Added to these, one of the biggest problems of the current society is the corruption that caused the “dominoes effect” in the landslide of the national banking inducing to the freezing of deposited capitals, distrust in the banking and an abrupt migration with the logical sequels in the human aspect that this separation causes. In consequence, the economic uncertainty led to a depreciation of 70% of the national currency. In that time the Sucre, that forced to the precipitate decision of “dollarization”, without taking into account the conditions of the Country during the year 2000. This abrupt decision seemingly has stabilized the national economy, however, the negotiations has not still ended with the International Monetary Fund for an agreement in the form that this organism will help Ecuador, reason why the destination of the Country in the economic aspect is uncertainty. It seems difficult that, with the current tributary system, with the interest rates that the banking manages, the distrust generalized in the national bank system, the flight of qualified and not qualified manpower, the low indexes of productivity and employment, Ecuador can push toward deep reformations in order to create a sustained economic mark so that at least it lasts long time the system of the dollarization with the consequent increase of the rate of



389

economic growth of the Ecuador. The consequences of the economic crisis are dictated next in figures:

The population's percentage under the line of poverty: 50% GDP: parity of the purchasing power: $37,

2 thousand millions (2000 est) GDP-rate of true growth: 0.8% GDP-per capita: $2.900 GDP-composition for sectors: Agriculture: 14%

Industry: 36% Services: 50%

Inflation: 96% Labor Force: 4.2 millions Labor Force for occupation: Agriculture: 30% Industry: 25%

Services: 45% Unemployment rate: 13% Public debt: $15 billion Bank interest rate (May of the 2002) Active referential: 15.32% Passive referential: 5.86% Conventional (limits of usury): 22.65% Interbank: 1.40%

1.1.4 Environmental mark.

Inside the environmental mark of Ecuador we can mention:

Coast longitude: 2,237 Km2



390

Territorial Sea: 200 Miles Climate: Tropical along the coast, the interior is more fresh with the highest elevations and tropical in the low lands of the forest. Natural resources: Petroleum, fish, wood, hydroelectricity. Uses of the land: Arable land: 6%

Permanent harvests: 5% Permanent grasses: 18% Forests and wooded: 56% Other: 15%

Arable earth: 12,640,000 Ha. (agricultural census, 2002) Natural dangers: earthquakes, landslides, volcanic activity, periodic droughts, the phenomenon of El Niño. Environmental problems: destruction of trees, erosion of the floor, desertification, water contamination, urban solid waste contamination, floods. International agreements: Treaty of the Antarctic, Protocol of climate change in Kyoto, species on danger, protection of the ozone layer, tropical wood 83. 2. SUSTAINABLE DEVELOPMENT OF THE MINING IN ECUADOR.

2.1 Social aspect.

One can affirm that the aspect that glitters the most inside the context of mining sustainable development is the social one. Inside this aspect, there are extenuating things that increase the situation, mainly of the mining to small scale. One of the main ones is the labor health, where inherent risks have been identified to the mining like: the intoxication, lung infections, risks of explosions, and body deterioration due to the physical effort. However, combined efforts of private and public companies exist, that have mitigated the problem



391

in certain measure, always having the advice of the Switzerland Government and the World Bank one can help in this aspect.

But a bigger problem exists like the one related with the psychosocial tensions, derived of work conditions, quality of life and depressions due to the separation with dear beings. Many of the mining establishments are located in rural areas with little or none infrastructure, services and clinics that even increase the precarious mining situation. Also like they are populated centers where the police surveillance barely exists, this has caused that the violence proliferates, the alcoholism and the prostitution. The topic of the prostitution is as difficult as the health one, because it has been detected sick persons of AIDS in Ponce Enríquez's populations and Shumiral that had been contaminated inside the near towns to the mining centers.

Another important aspect of the social vision is the one that is related with autochthonous groups as indigenous communities or communes, that being taken by political groups or environmental extremist they have spread an idea of repulsion to the mining with a series of accusations, due to the consequent contamination and the social problems that this brings. However, the lack of communication, concerning to the activities that the mining company carries out with regard to the execution of the environmental plan handling and social compensation, they are the main causes of the apparent civic disapproval, besides a lack of discharge arguments.

2.2 Institutional aspect.

As it was previously said, the evolution of the different laws has taken a common factor as it is that the minerals are very common and that the commercialization corresponds to the state. Nevertheless, the only civic participation for taking of decisions on this resources in the provincial Council and the municipal Council, because in the state environment, the revenues that the mining generates are dedicated to cover administrative expenses and technical dependences in the



392

Ministry of Energy and Mines, reason why an organism succession hasn’t settle down and participate in the mining address in Ecuador.

In 1991, Ecuador lacked environmental norms in mining, but with the implementation of the Environmental Regulation for mining activities in the Republic of the Ecuador in 1997, that establishes parameters to be done in the different steps in order to obtain an environmental license, it also marks the responsible entities for the reception and control of impact studies and plan of environmental handling as they are the Regional Addresses of Mining and, the entity responsible for the correction and approval of the same ones as it is the Ministry of Energy and Mines. On the other hand, in this regulation, the environmental guarantee was established for the very first time for proven damages on the mining part, it also establishes the possibility to carry out impact studies for groups or communities with their respective combined plan of handlings.

The Ministry of Energy and Mines, gives the responsibility of governing the legal part from the Ecuadorian mining to the Sub-secretary of Mines, also the mining environmental unit that corrects and approves the plans of environmental handling. But with the Modernization Law of the State, the unit can hire specialized consultants to carry out these tasks. But in the year 1997 the Ministry of the Atmosphere was created, and seeking protection in the Law of Mining of the year 2000, it’s established that under the coordination of the Ministry of the Atmosphere the sub-Secretary of environmental Protection of the Ministry of Energy and Mines will act. Practically the figure institution has not moved, nevertheless some sectors affirm that it should have more radio of action in mining questions.

On the other hand, the politics of the state with regard to the mining are weak, there are not impulses that can grant security to national or foreign investments, so that it promotes levels of decentralization and stimulate the distribution of the benefits better. The legal bases exist in Ecuador, but an application of the norms



393

doesn't exist to towns and indigenous communities. In this aspect there is a very flimsy previous figure that limits the performance from the communities only with the previous consultation, to participate of the benefits and being reimbursed in the event of arising physical and biotic damages of their sector.

2.3 Economic aspect.

Inside the macroeconomic indicators one has the contribution that the mining activity gives to the GDP, in this aspect it is marginal the contribution that makes the bonuses of the mining activity, of course when it’s compare to the contributions that the oil and banana industry makes in the Ecuador. On the other hand, the information that is possessed in order to regularizing the offer and national demand is very insipient and it is not pertinent, said otherwise it is very little and of bad quality and also it is not attached to the reality, what doesn't give us an idea of the true proportion that the mining contributes to the Ecuadorian global economy.

On the other hand, in the macroeconomic aspect, the mining helps to improve the levels of revenues and it opens a wide range of employments directly or indirectly bound to this. It is important to indicate that with the new investigations in order to prospect that have been carried out in the country to look for metallic and not metallic; the reserves of these have been increased in such a way that also becomes tempting in the economic aspect.

2.3.1 Ecuadorian mining production.

When we speak of mining production in the Ecuador, we refer to two poles like they are the gold and the limestone. Said otherwise, the exploitation of metallic during this century has been dedicated almost in their entirety to the extraction of gold from the districts of Nambija, Zaruma-Portovelo and Ponce Enríquez, and also we have the exploitation of auriferous pleasures in the spurs of the Los Andes mountain range. Also, in the non metallic aspect the



394

biggest industry that consumes prime matter it is the Cement plant and the construction activities, evidently the enormous limestone locations that appear from the outskirts of the city of Guayaquil until almost the line of Coast along 130 Km., they are the main resource for the metallic mining exploitation in the Country.

The exploitation of gold from the beginnings of the century was directed mainly in the district of Zaruma-Portovelo in the province of El Oro, however the great quantity of informal miners doesn't allow to have an right estimation of the quantity of gold that is processed. The same thing happens with Ponce-Enríquez in the province of Azuay and also in the sector of Nambija in the province of Zamora - Chinchipe. In this sense, 78.1% of the gold production corresponds to the province of El Oro with 18,047,953 grams of gold.

As for the non metallic exploitations it has been focused in the extraction of the limestones, clays and feldspars for the cement plant industry. We will also emphasize that 76.9% of the limestone production in the Ecuador corresponds to Guayas with 20,528,176 Tons of limestone, most part of it correspond to the National Cement. It has also been exploited, but in smaller degree, such materials as: siliceous sands for the industry of the glass, bentonites mainly for the oil industry and industrial minerals for export like pumice stone and marbles.

To synthesize the economic aspects we use the data of INEC (national Institute of statistical and censuses) about mining. Which throw a growth of the "establishments" between 1981 and 1998 from 18 to 39, as well as the Total production mounts from 7,308,000 USD to 29,952,000 USD approximately. The establishments that grew the most were those linked with the metallic mining from the 16 to 49% approximately. In consequence, the mining activity that grew faster in the last two decades was the metallic mining. However, the data due to the informality of this activity could not reflect the real magnitude of this activity.



395

In summary, until March of the 2001, 859 inscribed concessions have been granted that embrace 385,606 mining hectares, which 34.6% of the concessions correspond at exploration and the 65.4 for omission correspond at exploitation. This proportion indicates the grade of approval of the mining projects, that is to say the percentage of projects that pass from an exploration phase to a phase of exploitation. Nevertheless, 83.2 % of the total area corresponds to exploration and only 16.8% corresponds to exploitation.

2.3.2 Mining contribution to the GDP.

In the last 20 years, two stages exist in the evolution of the contributions of the mining (in this epigraph when we refer to mining we are involving the metallic and not metallic mining) because from 1980 up to 1988 the contribution incremented from 0.3 up to 1.2%, after this year fell up to 0.5% and it has stayed in the last years. This stagnation can obey the fell up of the gold price in the international markets, lack of total production registrations.

2.3.3 Investments in the mining activities.

The mining investments oscillated, in the last three years, between 6 millions and 4 million dollars. 62.3% corresponds to explorations and 37.7% to exploitations. As for the public expense, up to 1988 the contribution of the state was insipient, from 1% of the expenditures.

2.3.4 Wages and employments.

Generally, in the areas of mining exploitation are hired autochthonous personal and those that sporadically go there, because most of the works don't require bigger qualification, they are also temporary and without any public health benefit or doctors. For that, many times their remuneration is a little bit higher that the vital minimum wage. Also, another employment factor is the indirect one. This employment type is conformed by those that supply of inputs of



396

first necessity that are generally people close to the personnel that work in the mine. It is considered that 92 thousand people work in mining, which conform 0.6% of the economically active population (PEA). However when it is analyzed the rural PEA, the numbers change, because one have 80.2 % of the PEA, but the real percentage of those who get a salary is 42.7%, meanwhile the other 42.2% work on their own.

2.3.5 Exports.

Very little dynamism exists, as for the figures of exported values, because the registrations are not pertinent. An good example is the case of Nambija. In Nambija of 100% of gold production, one has just registered around 50%, while 35% escapes for the frontiers, mainly for the Peru and finally 15% was used in the internal market. It similarly happens in other mining areas of the country.

On the other hand, the industrial minerals are exported in almost sporadic way because the entirety exploited material is for internal consumption. It is necessary to emphasize that certain materials had peak like the pumice stone in 1995; however with the inclusion in the market of “substitute materials”, it blocked what seemed to be a flourishing source of foreign currencies for the country.

2.4 Environmental aspect.

Leaving from the fact that in Ecuador, in the last two decades it has been developed of handmade mining (Law of mining of 1991, Titles X, Of the special Regimens) to small scale mining (*) (law for the Promotion of the Investment and Civic Participation (Law Trole II) of the 2000), with certain advances in the legal questions has been able to, in certain way, to control the environmental aspect of the mining exploitations, including the metallic and not metallic. Since the small scale mining it’s considered as the most aggressive in environmental sense, also to have idea of the magnitude of the small



397

mining, during the year 2000 the contribution of this type of mining to the total mining production was around 83.5%, also the participation of the non metallic exploitations, for example plaster, marble, barytes, zeolite was just of 30%.

Nevertheless, in spite of the efforts in the legal part that are being carried out to formalize and to normalize the mining works, it doesn't exist a reliable database that can be analyzed for successive environmental monitoring, in order to evaluate the impacts along the time and space.

Another aspect is the distribution of the mining activities in Ecuador, although mining exists in the whole Country, just in the Counties of Guayas, El Oro, Azuay and Zamora Chinchipe exist mines that has some technology degree and production practice. Also the areas where the mining works settle are of high environmental sensibility as primary forests and with a high biodiversity grade. There also bodies of water that cross some of them and that in lower areas this water is used for irrigable and alive beings' consumption. The mining has caused colonizations around the mining activities it is calculated that 60,000 people inhabit near the mainly metallic mining exploitations in the Country. These aspects impacts, due to the precarious conditions of life, high risk of natural disasters, and biota contamination that before the mining works they would have remained unalterable.

The mining exploitations have also caused also the following impacts:

Non technical use of the mercury, mainly in the mining of gold.

Inappropriate location of remainders. Mining Subsidence, caused by non-technical designs of

tunnels without the due disposition of struts or fortifications.



398

Atmospheric contamination caused by powders and noises, mainly due to non metallic mining in areas near to urban establishments.

Deterioration of the environmental quality in areas of mining exploitations. Finally, the environmental Regulation for mining activities of

the Republic of Ecuador (1997) is the first normative instrument of this type that is dictated in the country, in order to mitigate, to correct, to compensate and to annul the environmental impacts caused by the mining. 3. SUSTAINABILITY INDICATORS FOR THE MINING ACTIVITIES IN ECUADOR.

As it was previously pointed out, the activities in Ecuador -in the mining area - are relatively new. Gradually it has been sought to fill legal spaces, institutional and also cultural and social holes. Nevertheless, in spite of the lack of the elements before mentioned, it is sought to create a feeling of commitment that forces the social actors involved inside this activity, to fulfill with the things specified in the law(*). Next it is pointed out, to the authors' approach, the indicators that in function of the reality and being the most objective thing, they can mark rules to establish the grade of growth of the mining activities in Ecuador.

(*) It was ratified the term of small scale mining in the Substitute General Regulation of the General Regulation of the mining Law, promulgated April 17 the 2001, which is in vigor at the moment.



399

3.1. Social Indicators in the Mining



400



401

3.2. Institucional Indicators in the Mining



402



403

3.3. Environmental indicators in the mining



404



405

3.4. Economic indicators in the mining



406

(*) It can also be related with numbers of dependent people of the mining like employees, it is considered that the mining employees are 92000 people of which can serve as denominator in the indicators to evaluate their evolution. 4. CONCLUSIONS AND RECOMMENDATIONS.

Leaving from what was previously said, we notice that in Ecuador we have no control over the emissions, also that it doesn’t exist a real institutional figure that regularizes and can sanction the offenders of any type of environmental damage. Also, so that a process of sustained development can take place, the environmental administration should be based on pertinent and affordable data, for what is imperative to establish some institution that monitories and controls the environmental and social indicators in the different points that the mining areas are seated. Also, it should establish priorities in the social objectives as housing, basic services, health and education to improve the mark of the sustainable development.

On the other hand, the sustainable development strategies must be participative in the sense of arriving to a consent in the objectives and ways to achieve the proposed goals. Inside Ecuador, that has been the main problem: the lack of communication. Also that these media and transfer of information is available for all those implied in the mining activity. Therefore, all mining activity must seek protection in the legislative figure of the “Previous Consultation” to obtain this consent that helps the mining development in the Country.

As the mining activity it is relatively new, the legislation has had to transform gradually until, aided in the State Law of Modernization, at the moment is in a process of decentralization. For that, the responsibility relapses on local entities that are still “adapting” to its new responsibilities.



407

To conclude, it is also important for the mining activities the access to fresh capitals and foreign investment that helps to the investigation, development and training of the groups immerses in the sustainable development of the mining. However, in Ecuador with interest rates of 15-22% with which the banks are managed in Ecuador, it is very difficult to make the decision of carrying out such companies, because they should have a period of recovery of very short capital, what is not the case of the mining activities in Ecuador, due to the geologic uncertainty and the economic uncertainty. Therefore, it is almost null the access to credits for the development of the mining. 5. BIBLIOGRAPHY.

COMMISSION OF SUSTAINABLE DEVELOPMENT OF THE UNITED NATIONS, Calendar 21, Indicators of the sustainable Development for the countries, 1992.

CENTRAL BANK OF ECUATOR. Inform economic, 2002.

NATIONAL INSTITUTE OF STATISTICAL and CENSUSES, Inform socioeconomic situation per provinces in Ecuador, 1997.

NATIONAL ADDRESS OF Mining, Report of mining Cadaster of Ecuador, 2000.

MINISTRY OF ENERGY and MINES, environmental Regulation for mining exploitations in Ecuador, 2001.



409

SUSTAINABILITY INDICATORS IN THE SPANISH EXTRACTIVE INDUSTRY

Dr. Arsenio González Martínez and Domingo Carvajal Gómez

CYTED XIII-D - Huelva University -High Polytechnic School The Rabida Campus - 21819-Palos de la Frontera. Huelva. Spain

[email protected] - [email protected]

ABSTRACT

In the literature specialized in sustainability indicators in the European Union and in environmental indicators in Spain there is not an important absence regarding the natural resources renewable, for what the progresses cannot be measured in the environmental dimension of the mining companies and if the performances are adjusted to the Strategy of Sustainable Development that praises for years the European Union and for the one that comes betting in a resolved way through the European Environment Agency (EEA).

For the importance of the thematic one and of the extractive industry in Spain, in this report a study of the situation of the sustainability indicators is made and they intend some from the qualitative point of view based on the experience of the authors, with the purpose of contributing to travel the one on the way to the necessity of a mining whose sustainability can be evaluated as soon as possible by means of indexes that allow to know the progress in the execution of the environmental commitments on the part of the mining companies, to compare some performances with other and to serve as base for the design of the environmental administration in mining.



410

1. THE MARK OF THE SUSTAINABILITY INDICATORS IN THE EXTRACTIVE INDUSTRY

The necessity to measure and comparisons that allow to those responsible for the environmental politicians to have excellent information that drives to establish control measures and administration of the sustainability of the natural resources, to settle down leads to potenciar nowadays the investigation of those denominated environmental indicators (Jiliberto, 1996).

The sustainability indicators are a category of environmental indicators used to measure the progresses in the environmental dimension in a strategy of sustainable development (EEA, 2002).

Since they can be defined many indicators it is necessary to optimize their election to allow to pick up the biggest possible information with the smallest number of indicators. This is not an easy task, since detailed studies and experience are needed.

The study but serious that has been carried out in Spain to this respect he has gone guided to present a first proposal of environmental indicators (Jiliberto, op. cit.), based on the pressure-state-answer system that has been adopted by the countries that integrate the OCED -Organization of Cooperation and of Economic Development- and that it develops what is made in the main organizations at international level in this field (European Union, Canada, Sweden, etc.).

In the ordination approaches that have been continued for it prevails it the definition of areas based on big means (atmosphere, waste, water, etc.). The proposed outline consists of four main areas, being divided the area of natural resources in turn in five subáreas:

1. Atmosphere

2. Waste

3. Population



411

4. Natural resources

4.1. Biodiversity

4.2. Forests

4.3. Coast ecosystems

4.4. Marine ecosystems

4.5. Soils

4.6. Waters

With the purpose of selecting the appropriate information for the pursuit of the sustainability objectives the areas they are structured in environmental topics –excellent topics of environmental character - and inside each area and for each environmental topic they have been selected a series of indicators that they respond in turn to a mark of causation (pressure-state-answer) that doesn't seek another thing that to link the effects of the human activities on the state of the environment and the social answer that it modulates those activities for an approach to a certain ecological balance.

In the following table the structure of the proposal of the Spanish system of environmental indicators is shown (Jiliberto, op. cit.).



412

POLITIC AREAS →

ENVIRONMENTAL ASPECTS →

THEMATIC INDICATORS (*) OF PRESSURE-STATE ANSWER

Destruction layer of ozone

Thickness of the layer of ozone

Global heating Emissions of CO2 Acidification Emissions of SO2

ATM

OSP

HER

E

Photochemical contamination

Inmissions of NO2 population

Net production of toxic and dangerous waste

WA

ST E

Elimination of waste

Volume of mires generated in purifying Atmospheric contamination

Inmissions of SO2 regarding legislated values % population's with ordinances of noise

POPU

LA

TIO

N

Urban deteriorations Surface of green areas for inhabitant Vulnerable species and in extinction danger

BIODI

VERSITY

Specie and ecosystem disappearances

Index of agricultural escalation

FORESTS Quality and extension of the forest

Rate of variation of the forest mass

Change the uses COAST ECO

SYSTEMS Contamination % of the surface of the coast occupied by constructions

Overexploitation Fishing capacity in jurisdictional waters MARINE ECO

SYSTEMS Contamination SOILS Soil erosions Hydrological-forest repopulation

Water quality River longitude with quality of bad water

NA

TUR

AL

RES

OU

RC

ES

WATERS

Water quantity Aquifer overexploitations 9 AREAS /

SUBÁREAS 18 TOPICS 79 INDICATORS

(*) Alone they are picked up in this table some of the 79 selected indicators It structures of the proposal of the Spanish system of

environmental indicators (Jiliberto, 1996)

It is of standing out that in this proposal the sustainable use of the susceptible natural resources of exploitation includes to the renewable resources and it doesn't contemplate the mining resources.



413

Particularizing in the Andalusian Community, in which exercise our activities, is of interest for the context of our report indicating that the Plan of environment of Andalusia 1995-2000 (CMA, 1995) it already established seven topics or performance areas (that were of high-priority concern of the European Union as regards environment in the years ninety, and that they follow it being at the present time):

1. I change climatic 2. Acidification and quality of the atmosphere 3. Biodiversity and protection of the nature 4. Water administrations 5. Urban environment 6. Coastal areas 7. Waste administrations For the performance in these thematic ones instruments and

measures were developed as the following ones: - it improves of the information on the environment - scientific investigation and technological development - sectoral and space planning - correct fixation of prices - it improves of the public information and the environmental

education - professional and continuous formation - financial attendance

When describing the environmental situation of the natural resources of Andalusia the plan he dedicated alone some lines to say something obvious as it is the one that the ground resources constitute one of the clearest example of what they are the non renewable resources.



414

The plan justified the decadence of the Andalusian mining for the widespread crisis of the world mining, that makes that the profitability of many exploitations descends in mining districts that in times they were of great prosperity (Linares-La Carolina, in the county of Jaén; pyrite belt of Huelva-Sevilla; basin of the Guadiato, in the county of Córdoba).

To likeness with what has been exposed before, the plan neither outlined the study of the environmental repercussions of the mining by means of the use of indicators, and it although the mining contributes with 12% of the gross production of the Andalusian industry.

On the other hand, the plan recognized to provide the mark of a new position of the environment in Andalusia to achieve the sustainable development and fixed the evaluation indicators and pursuit of the same one (CMA, op. cit.):

1. Physical indicators 1.1. Indicators of the plan of urban environment 1.2. Indicators of the biodiversity plan 1.3. Indicators of the Andalusian forest plan 1.4. Indicators of the coast plan 1.5. Indicators of the plan of water 1.6. Indicators of the plan of development of compatible

activities with the environment 2. Financial indicators

In the public information on environmental protection in the autonomous Community of Andalusia (JA, 1999) the main threats are described to the environment (he doesn't make an appointment for anything the extractive industry):

- The atmospheric contamination



415

- The water - The disappearance of the forests - The ozone hole - The erosion and the desertization - The effect hothouse - The energy - The waste

At international level the use of environmental indicators to measure the ecological behavior of the companies has received a great impulse with the presentation of the report 2001 Environmental Sustainability Index, in the last meeting of the World Economic Forum, taken place in January of 2001 in Davos (Switzerland). There it became public the result of the collaboration among the group of work of environment -Global Leaders for Tomorrow (GLT)- of the World Economic Forum's, the Center for the Politics and the Environmental Legislation of the University of Yale and the University of Columbia –a inclination of their Center for the Net of Information of the Science of the Earth–. In this report it is clear that to measure the environmental sustainability of a country or a sector can be complicated if indicators are not used that are comparable.

The report picks up an analysis of the progresses carried out by 122 countries from the point of view of its sustainability. That is to say, according to their capacity to put into practice the concept of sustainable development –that allows the current development without putting in danger the capacity of the future generations to satisfy their necessities–. The indexes seek to measure in a numeric way the ecological efforts of a country, a sector or, even, a company, through variables as emissions to different means, consumption and saving of water, generation of residuals and impact in the ecosystems.

The study is based on the analysis of 22 indicators that combine 6 variables that, in turn, they give place at 67 different



416

(Fernández, 2001; WEF, 2001; www.weforum.org). Starting from this information, the universities and organisms responsible for the report have tried to establish an index of environmental sustainability –Environmental Sustainability Index (ESI)–. The index seeks to offer a base of comparison of the environmental conditions of different countries. She also seeks to become a support to the taking of decisions on the application of political ecological.

In general, a high index indicates that a country has achieved a high level of environmental sustainability. On the other hand one under it indicates that the country is having problems to achieve a sustainable behavior.

The main problem that presents the use of sustainability indicators is the lack of comparability of the ecological data that they are used as starting point. The file and the organization of all this information is, according to the study, one of the priorities at local, national and international level.

Also, according to the report, “the economic conditions affect, but they don't determine, the environmental aspects”. The comparison among different indicators reveals that the decisions in both fields don't always go of the hand.

Among the challenges to confront in next years the main one seems to be centered in to define with clarity the used concepts and to try to harmonize their use. Among these concepts, she is that of the base triple –triple bottom line– that defends the realization of efforts in three slopes: the economic one, the social one and the environmental one. The experts agree, also in that the sustainability index should be based in a series of common components. This way, they highlight as aspects key the reduction of the ecological problems, the human vulnerability, the environmental systems and the social and institutional capacity.

The main sustainability indexes proposed are (WEF, op. cit.):



417

Environmental systems: – Air quality – Water quantity – Water quality – Biodiversity – Territorial systems Reduction against the exhaustion of resources: – Prevention of the air contamination – Minimization of the water consumption – Reduction of the ecosystems exhaustion – It fights against the pressures it has more than enough waste and consumption – Measures against the pressures on the population Reduction of the human vulnerability: – People's basic necessities – environmental health Social and institutional capacity: – Science and technology – Regulation and administration – Responsibility of the private sector – Eco efficiency – You distort of the public mechanisms Global behavior The conclusions of the study were:

– The environmental sustainability can be appraisable through indicators.



418

– They have been detected more than 67 variables inside 22 indicators that allow to create sustainability ratios in 122 countries.

– The indexes allow to establish a comparison, through the benchmarking1 technique, of the environmental conditions in different countries and the possibility of those responsible for the taking of decisions about the necessity of ecological changes with a rigorous analytic base.

– The economic conditions affect, but they don't determine, the environmental aspects.

– The non comparability of data environmental file the mensuration of the sustainability. Among the multiple actions undertaken by the European

Environment Agency to show the interest of the sustainability indicators it highlights the proposal to the Meeting of the European Union, taken place in Barcelona in March of 2002, so that this finally grants to the environment the since rightfully it corresponds him (EEA, 2002). For it the Agency contributed data and evaluations of the sustainability indicators used by the European Union to measure the progresses in the environmental dimension of the Strategy of Sustainable Development:

- I change climatic - Transport - Production and energy use

1 I process of identifying, to understand, and to adapt practical exceptional (the best to the but low cost) with the purpose of helping to improve the operation of organizations in any place of the world. It is a practice highly respected in the world of the business. It is an activity that she looks toward it was to find the best practice and the high yield and later it measures real business operations of agreement with those goals



419

- Public health in their relationship with the urban contamination

- Production and administration of urban waste

Although it is foreseen that in the future they will leave perfecting and enlarging the indicators the certain thing is that in that list indicators neither appear to measure the sustainability of the extractive industry, and it in spite of philosophies so interesting as the one managed in that Meeting “the climatic change, the transport, the energy, the waste or the tourism are among the motive forces and press on the environment that they are reflected in the landscape and the territory in one or another way; in fact, the landscape and the territory can be considered like a metaphor of the environment: the sustainable development is largely sustainable use of the soil and of the territory.”

Soon after this Meeting of Barcelona the States members of the Union has requested since they are included among the indicators of sustainable development the changes in the uses of the soil and of the territory and its relationships with the protection of the nature and the biodiversity, among other matters.

As we know, the mining has a lot to say in all this, but the certain thing is that at the moment it doesn't consider it to him.

The day in that sustainability indicators for the extractive industry figure in that list a great step will have been given in the European and international space, since it is necessary to indicate that the European Environment Agency (EEA) it is the main source of information for the European Union and their States members when developing political environmental. The Agency has as objective to support the sustainable development and to help to get a significant improvement and quantifycable of the European environment facilitating a modernized information, specific, pertinent and trustworthy to those responsible for the environmental politics and to the public in general. Created by the European Union in 1990 and



420

operative in Copenhagen from 1994, the EEA constitutes the central axis of the European Net of Information and Observation of the environment (ENETIO), a net of about 600 organisms through which the Agency gathers and it diffuses data and information related with the environment. The Agency, open to all the nations that share its objectives, has twenty-nine countries members at the present time: the fifteen States members of the European Union; Iceland, Norway and Liechtenstein (members of the European Economic Space) and eleven of the thirteen countries of central Europe and of the east and of the mediterranean area candidates to the adhesion to the UE: Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malt, Rumania, Eslovenia and the Slovak Republic. The incorporation of these countries transforms to the Agency into the first organism of the UE in admitting to countries candidates to the adhesion to the UE. It is possible that the two countries remaining candidates, Poland and Turkey, ratify their agreements in next months. With it, the countries members of the Agency will add thirty and one. Also, they are in course negotiations with Switzerland.

In the VI Program of Action of the Environment European Community 2001–2010 (CCE, 2001) it is opened the way when including the sustainable administration of the non renewable resources. Would it rot the extractive industry to find this program it is the opportunity and the place that correspond him? he will be necessary to wait!.

At the moment, the certain thing is that it represents the only program where is bet with determination by the environmental administration of the resources.

This new program establishes environmental objectives for next 10 years and further on, and it determines the measures that it is necessary to adopt in a term from 5 to 10 years to reach them. Although the program is centered in measures and commitments that it is necessary to assume at community level, it also indicates the



421

measures and responsibilities that it is necessary to adopt at national, regional and local level, as well as in the different economic sectors.

The conclusions of the global evaluation and of the reports on the state and tendencies of the environment have guided to the program toward a series of high-priority questions that they have grouped in four main topics (CCE, op. cit.):

1. To solve the problem of the climatic change 2. Nature and biodiversity: to protect an unique resource 3. Environment and health 4. Sustainable administration of natural resources and waste.

The program will be object of a revision in 2005, and she will modify and it will modernize if it is necessary in view of the evolution of the situation and to keep in mind new data.

The philosophy of the program is based in that the wise use of the natural resources of the planet and the protection of the world ecosystem are indispensable factors for a sustainable development, besides for the economic prosperity and a balanced social development. The long term well-being of the society in Europe and the world, and the patrimony that we will leave our children and grandsons depend that the development is sustainable. The program points out the ecological problems that have to be solved so that the development is sustainable:

- I change climatic - excessive use of renewable and not renewable natural

resources - biodiversity loss - accumulation of toxic and persistent chemical substances in

the environment.



422

The program proposes five high-priority strategies that they will help to complete the environmental objectives:

- The first one consists on improving the application of the effective legislation

- The second have for object to integrate the environmental problem in the decisions that are adopted in other politicians

- The third seek to find new roads to work in a more narrow way with the market through companies and consumers

- The fourth search to qualify each citizen to allow him to modify their behavior

- The fifth, lastly, it is guided to perfect the planning and administration of the uses of the soil

For the colateral interest that has with the thematic object of the report, we analyze the strategy of sustainable use of the natural resources and administration of residuals shortly.

The objective of this strategy is the one of getting that the consumption of renewable and not renewable resources doesn't overcome the capacity of load of the environment; to dissociate consumption of resources and economic growth by means of a remarkable increase of the efficiency of the resources, the desmaterialización of the economy and the prevention of the residuals.

The resources of the planet, mainly renewable resources as the soil, the water, the air and the wood, they support a strong pressure of the human society. A strategy is needed centered in such measures as taxes and incentives that it guarantees a more sustainable exploitation of the resources. The volume of generated residuals will continue increasing if measured proofreaders don't take. The prevention of the residuals will be a fundamental element of the politics's position integrated on the products. It is necessary to adopt other measures to impel the one recycled and the use of residuals.



423

The use of non renewable resources as the metals, the minerals and the hydrocarbons and the production of waste that generate has numerous repercussions about the environment and the health of people. The consumption of limited non renewable resources puts us also before the moral dilemma of deciding the quantity of resources that we can use today and the quantity that we have to leave to the future generations, but this question is not strictly of environmental nature and it is preferable to treat her inside a global strategy of sustainable development.

The strategy of the European Union on the sustainable use of the non renewable resources goes the appropriate political mark that allows to define approaches to fix two basic priorities to settle down:

- the necessary realization of the analysis tasks and of collection of data to determine the resources that are in a situation more difficult; these approaches will be good to determine if the damages caused to the environment by the use of a concrete resource threaten to be long term and irreversible, if substitutes can be for the future generations, etc.

- to apply specific political measures that allow to reduce the consumption of these resources, for example modifying the conditions of the demand, improving the effectiveness of their use and impeding their waste increasing the percentages of having recycled economic.

Among the measures that could figure in a thematic strategy as the suitable one it is necessary to mention:

- The investigation and the technological development of products and processes of production that consummate less resources

- Programs of development of the best practices dedicated to the companies



424

- Transfer of the fiscal load to the use of the natural resources, the creation of a tax on the products and the use of other economic instruments, such as the trade of the emission rights, to encourage to the companies to adopt technologies, products and services that make an effective use of the resources

- Elimination of the subsidies that foment the excessive use of resources

- Integration of considerations of effective use of the resources in the integrated politics of products, plans of having labeled ecological, political ecological of public recruiting and a system of presentation of reports on the environment.

Among the recent contributions at international level for the search and definition of sustainability indicators for the extractive industry and for the discussion of their credibility they are necessary to highlight those of Azapagic (2000), Forero (2000) and Vargas (2000).

Based on them, we formulate a proposal of indicators next for the Spanish extractive industry. 2. PROPOSAL OF SUSTAINABILITY INDICATORS FOR THE EXTRACTIVE INDUSTRY

The position for our proposal portions of the base that a sustainability indicator is different from an environmental indicator.

In the extractive industry they are known many indicative, essentially of environmental impact (for example acidity of the water, particles in the air, level of noise, etc.), but alone they have been defined some few sustainability indicators (Azapagic, op. cit.; Vargas, op. cit.) and some of them are annoying when quantifying them (Forero, op. cit.).



425

For that reason we seek to go further on and to propose qualitative indicators of sustainability, simple of evaluating but they define of the state of sustainability of the extractive industry and with universal validity it stops whichever it is the sector that it is.

The methodology that we propose is based on the realization from a sustainability test to the mining company that it is. The support of the test is indicative of sustainability, each one of which it is evaluated with answers yes/no to a series of simple questions but that they respond to actions keys on the part of the mining company.

Starting from this test she is defined an Global Sustainability Index (GSI):

GSI(%)

(TC AC ELC SCC)YES

x100

Total actions

(TC AC ELC SCC)YES

x100

28=

+ + +∑

=

+ + +∑

If the GSI > 50% the extractive activity would be in the field of the sustainability and it would be so much more sustainable the more she approached at 100.

If the GSI < 50% the extractive activity would enter in the field of the non sustainability and therefore the mining company should thoroughly revise all the actions that it carries out.

In the following square the indicators of proposed sustainability are shown.



426

It completes the action

Name of the

indicator

Action type

YES NO Is the genetic pattern of location known? Does it exist a planning of the use and administration of the mineral reserves?

Does it exist a geomecanical characterization of the exploitation and their environment?

Does a system of integral administration of the water exist?

Does a program of prevention of labor risks exist?

Does a plan of ordination of the mining territory exist?

Is the method of exploitation optimized? Has some certification of administration of the quality been obtained (ISO 9000)?

Does plan of closing of the mining activity exist?

TE

CH

NIC

AL

CH

AR

AC

TER

IZA

TIO

N

TC

Does some plan of energy efficiency exist? Does it exist pursuit program and control of emissions?

Has some certification of environmental administration been obtained (ISO 14000)?

Do studies of evaluation of environmental impact of the project exploitation exist?

Is the plan of mining restoration completed? Has she had the mining company some environmental audit?

Is some program of minimization of waste continued (zero discharge)?

ENV

IRO

NM

ENTA

L C

HA

RA

CTE

RIZ

ATI

ON

E

C

Does a plan of minimization of environmental damages exist?



427

It completes the action

Name of the

indicator

Action type

YES NO Is it known the degree of execution of the normative one and environmental legislation?

Are the administrative, fiscal and labor requirements completed?

ECO

NO

MIC

-LE

GA

L C

HA

RA

CTE

RI-

ZATI

ON

Has it foreseen the company some bottom of guarantee of their activities?

Is there informative transparency on the part of the mining company?

Does it exist compromise and social responsibility of the company with their employees?

Have protection performances and valorization of the patrimony been undertaken?

Do programs of continuous formation and training exist for the employment?

Do mechanisms of civil participation exist in the company decisions?

Does a study of social demand of the mining product exist?

Does linking of the mining company exist in local Agenda 21?

SO

CIO

-CU

LTU

RA

L C

HA

RA

CTE

RIZ

ATI

ON

SC

C

Does a study exist on repercussions of the mining activity in the population?

∑

Disposition of indicators and actions for the sustainability test

A high GSI would indicate that the mining company has achieved a high level of environmental sustainability. On the other hand a low GSI indicates that the mining company is having problems to achieve a sustainable behavior.



428

It is necessary to stand out that the proposed indicators are qualitative, that is to say they are not based on quantities (physical measures), and that it stops their definition they have been considered the following basic principles (FEA, 1997; in Vargas, 2000):

- Comparability: that allow to make comparisons and to reflect changes of environmental impacts.

- Orientation for objectives: that pursue goals of improvement that can be influenced by the company.

- Balance: that propitiate a coherent focus among the environmental acting, the areas of environmental problems and the potentials of improvement.

- Continuity: that use the same selection approaches in every period and that they refer to comparable intervals.

- Opportunity: that they are determined with short and enough intervals and the use of untimely information is avoided.

- Clarity: that are clear and comprehensible for the company and the user, also coherent and that they concentrate on the essential aspects.

The uses of the proposed system dog serve ace it bases to it defines action plans for the sustainable development of the extractive industry whose object is the implementation of politicians that they allow to advance to the mining companies and the local community where they it plows framed toward social the, economic and environmental sustainability.

They will also be able to be used in the territorial ordination of mining spaces and even in the definition of strategic ecosystems2 (Agudelo, 2002).

2 A strategic ecosystem (SE) she is defined like a concrete geographical portion, exactly delimited, in the one which the environmental, natural offer or induced by the



429

CONCLUSIONS

The mark of the sustainability indicators in the Spanish industry extractive presents a not very encouraging panorama for the time being since the programs (European, national and regional) of sustainable use of the susceptible natural resources of exploitation they are designed for the renewable resources. The non renewable resources are hardly contemplated and the mining resources are completely unknown.

Taking like base the experience of the authors intends an Global Sustainability Index (GSI) based on the use of qualitative indicators of sustainability for the extractive industry.

The application methodology is simple and it is based on the formulation from a sustainability test to the mining company, with universal validity it stops whichever it is the sector that it is.

REFERENCES

Agudelo, L.C. (2002). Indicadores de sostenibilidad y ordenación del territorio, huella ecológica y ecosistemas estratégicos. Fac. Arquit. Univ. Nac. Medellín. Colombia. http://www.fescol.org.co/VLibrary/PDF/Conversatroio%20IV/Luis%20C%20Agudelo.pdf

Azapagic, A. (2000). Indicators of sustainable development for the minerals extraction industry: environmental considerations. Technological challenges posed by sustainable development: the mineral extraction industries, pp. 202-217. R. Villas Boâs & L. Fellows Filho Eds. CYTED/IMAAC/UNIDO. Brasil.

man, it generates a group of goods and indispensable environmental services for the population that defines them as such



430

CCE (2001). Propuesta de Decisión del Parlamento Europeo y del Consejo por la que se establece el Programa Comunitario de Acción en materia de Medio Ambiente para 2001-2010. Comisión de las Comunidades Europeas, 24.1.2001. COM (2001) 31 final. 2001/0029 (COD). Bruselas.

CMA (1995). Plan de medio ambiente de Andalucía 1995-2000. Consejería de Medio Ambiente. Junta de Andalucía. Sevilla.

EEA (2002). Información para mejorar el ambiente de Europa. Barcelona, lugar de encuentro de las dimensiones medioambiental, económica y social. European Environment Agency. Copenhague.

FEA (1997). A guide to corporate environmental indicators. Federal Environmental Ministry and Federal Environmental Agency. Bonn. Berlin.

Fernández, M. (2001). El sector empresarial busca indicadores para medir su comportamiento medioambiental. Expansión Directo. Secc. Medio Ambiente. http://www.expansiondirecto.com/edicion/noticia/0,2458,2489,00.html+indicadores+de+sostenibilidad&hl=es

Forero, C.F. (2000). Sustainability, indicators & credibility. Inf. Jorn. Cyted-XIII IMAAC COPPER FORUM. Technological challenges posed by sustainable development: the mineral extraction industries, pp. 356-362, R. Villas Boâs & L. Fellows Filho Eds. CYTED/IMAAC/UNIDO. Brasil.

JA (1999). Protección ambiental. Comunidad Autonómica de Andalucía. Delegación Provincial de Medio Ambiente. Junta de Andalucía. Huelva.

Jiliberto, R. (1996). Indicadores ambientales. Una propuesta para España. Centro Public. Secretaría Gral. Técnica. Ministerio de Medio Ambiente. Madrid.



431

Vargas, E. (2000). Indicadores de sostenibilidad y su aplicación a las empresas mineras. Cierre de Minas, experiencias en Iberoamérica, pp. 354-380. R. Villas Bôas y Mª Laura Barreto Eds. CYTED/IMAAC/UNIDO. Brasil.

WEF (2001). 2001 Environmental Sustainability Index. Global Leaders for Tomorrow. World Economic Forum. Ginebra. Suiza.



433

INDICATORS OF SUSTAINABLE DEVELOPMENT IN COLOMBIAN MINING

Jorge M. Molina and Alejandro Cardona A [email protected]./ [email protected]

INGEOMINAS, Colombia.

ABSTRACT

The sustainable development of the mining is based on a model of State, on which the determining actors for the development interact: the State, the community and the privates sector; considering the regional and local peculiarities, whose main objective must be to generate a dynamic process of economic growth by means of the harmonization and integration of goals, objectives and strategies for the economic, social and environmental actions designed for such aim. This model for its control and monitoring requires of the design of a system, based on impact indicators, with which it is possible to be measured quantitatively and qualitatively the management and interaction of the determining actors and who must serve as support for an appropriated decisions.

INTRODUCTION

The economic development is a dynamic process of growth, in which changes in the essential characteristics of the social and economic structure of a State is generated. The mining industry is an economic activity of world order, but framed within the Model and economic order, socio – cultural and environmental of the states that make this activity, for which can be identified like determining actors of its development: the State, the community and the Private Investment.



434

It is the action on the model under which they interact and closely they are bound to the determining actors and their elements, having like fundamental counting on the regional and local peculiarities. It must have a focused strategy coherently according to the comparative advantages existing or created on the macro processes of the mining industry, exploration, production, added value and commercialization, the required support to confront the challenge of the mining and minerals to advance to the sustainable development.

In this document is tried to show to the actors and elements of preponderant importance in the development of the mining sector, and on which the strategies and actions are due to define that allow to the profit of the objectives and raised goals of development within each economic model, for which a system of indicators is due to design that allows to the monitoring and the pursuit of the obtained results.

This subject will be developed from the identification for each actor, the State, the community and the deprived investment, of the elements that constitute and their relations with the mining sector, defining the critical factors of success towards which the strategies and actions for the profit of the development of the mining

are due to orient.

THE STATE

It is from the first approach, the mining industry like an activity of world order, but framed within you order them state within which it is carried out, under which one defines the relations of the State with the mining sector and this one assumes the role of owner, supervise and administrator of the resource.



435

The roll defined for the State, forces it like owner of the subsoil and its nonrenewable resources to the efficient administration without damage of the rights acquired and perfected in accordance with preexisting laws.

It is through the effective planning of the handling and advantage of these resources, giving strategies and policies that they induce to the growth of the sector within a competitive and stable legal frame, facilitating the private investment and the integration of all actors, that may be guaranteed the sustainable development of the mining in benefit of the society.

Elements of development

The main and determining elements of the development within the State are the administration of the Resource, the laws and the Institutionalism.

Administration of the Resource

Colombia that counts on geologic environments of formation which they could be compared with productive deposits in other nations and considering pre-Colombian tradition, it shows a modest development of its mining industry, product of a little geologic knowledge and the mining potential of its territory.

It is required to lead by the State, the systematic campaigns of prospection and regional exploration, with a suitable cap of the territory national that provide the knowledge of the suitable subsoil, like only means of which the geologic potential acquires a real value, confirming the models or hypothesis, raised with base to the formation environment and became as potential.

The information generated by this process, is due to store in data bases and GIS, with the objective to facilitate to the investor a fast vision of the potential and serve as support to the decision making on the execution of mining projects.



436

The evaluation of the mining resource from intelligence targets or "targets", the reserves and the mining production is based on offering to the investor the possibility of making its own projections, considering that the mining presents/displays lengths terms to obtain the consolidation and to generate yield indices acceptable.

The Laws

The state must obtain the balance of the laws that converge in the development of the mining sector, like the environmental legislation, the tributary legislation and the labor legislation, that improve the effects of the mining legislation (code of mines). This is due to establish sure a regulatory frame so that the agents related to the sector can have a coherent law and fit in operative form each other.

Colombia presents a new Code from Mines which needs measure the impacts on mining competitiveness of the country, along the evolution of the mining legislation in Latin America and its interpretation as far as the effects of the competitive position of the country. In addition it is required to implement a process of re-engineering to the management of mining environmental proceedings to take them to the required minimum duration, with the objective to obtain a comparative advantage.

In addition the prescribed decree to the code is required, which must reinforce the spirit expressed in the same one, raising with a lever the criteria of transparency, administrative agility and no discretion, with direct implication to all the areas, legal, fiscal, institutional and others.

The law of mining investment of is recognized necessity and complementariness with the code of mines, thus requires the joint evaluation with the organizations responsible for the law project, this



437

must touch the points related to the competitiveness that the sector requires for its development:

• the schemes of incentives required for the development of suitable mechanisms of mining financing on the part of the private bank

• the favorable conditions to the infrastructure development on the part of the sector deprived in regions with mining potential.

The fiscal load of the Colombian mining sector is onerous. There is a high-priority action to develop talks about better fiscal parameters, jointly with the organizations responsible not only for the total tax, but also for the tributary incentives to the mining.

Institutionalism

The mining authority and the attached organizations demand an integral policy function with a new approach of modern and efficient state, oriented to the profit of the beneficial institutional stability for the development of the sector from the following strategies:

• To foment the competition and the concurrence of the industrialists throughout the productive chain of the power mining sector (production, added value and commercialization).

• To guarantee the free access to the infrastructure.

• To eliminate the barriers the entrance of new agents in all the activities of the sector.

• To rationalize the subsidies and to implant a structure of costs it is transparent for each one of the goods and services of the power mining productive chain.

• To utilize mechanisms that facilitate the fulfillment of the environmental law in the sector.



438

• To have a suitable and sufficient basket of power to the country, to generate as well excessive of export them international markets and to assure a sustainable development such.

• To incorporate the social responsibility with the communities and the areas of influence of such in all the projects of the sector.

• To always look for regulatory and normative clarity of the sector.

THE COMMUNITY

It is the segment of the society that takes the hit of the execution of the mining activity and it as well contributes goods, services and labor force around the mining projects. Also, given the particular conditions of each site where the mining activity is developed, the community by means of organization mechanisms, has the possibility of constituting itself in executor of viable and sustainable mining projects.

It is important to stand out that the support of the state as opposed to the communitarian development in operative terms must be transitory, and is due to make with a facilitator approach to the entailment of private capitals that support the sustainability of the activities anticipated for the project.


The elements defined with preponderant in the search of the development of the community are the well-being, the qualification and the formation and the organization.

The wellfare

The well-being for the community is considered like the balance between the three dimensions of the sustainable development, identified like the social welfare, in which the rights of the community are not opposite to the national interests; the



439

economic well-being, remembering that the mining is or can constitute in the main sustenance of many regions and the environmental wellfare, starting off of the sustainability as it bases of the resources of the future communities.

The qualification and formation

The rational exploitation of mining resources by the communities demand of a learning process that stimulates the knowledge increasing the levels of qualification and formation and entails to a faster process of increase of the productivity. This knowledge is due to visualize on basic, vocational, technical and enterprise scale.

The organization

In anyone of its forms, the fact to add forces always is considered like advantage on the particular performances, still more if the weakness is considered that disorganization provides at the moment for competing in the present conditions of the market. The Code of Mines stimulates the creation of shared in common companies, besides to draw up specific and oriented actions to the communitarian organizations for the fortification of the mining activity.

It is to stand out that it is through the communitarian organization, like is possible to be managed to go beyond the marginal and illegal mining activities, which affect great part of the Latin American countries with negative impacts in the environment and the advantage of the resources, to viable and sustainable mining units.

THE PRIVATE INVESTMENT

Starting off of the constitutional principle that says that the economic activity and the private initiative are free, within the limits



440

of the communal property, the private sector identifies like elements necessary to enjoy its right the resources, the investment and the production.


The resources

Although the State is the proprietor of nonrenewable the natural resources of the subsoil, the private sector is who will have to assume the responsibility of the development of operation projects, generation of added value and commercialization, in all its phases pre-feasibility, feasibility, basic engineering, engineering of detail and execution, the mineral resources offered like mining potential by the state, fulfilling in taxes with the effective mining law.

The investment

They are the financial resources, applied to the acquisition of technologies and machinery, to the development of the required infrastructure and to the investment in capital of work among others, required by the deprived sector to make the operation, the transformation and the commercialization of a mining deposit.

The required financial resources for this investment can be had directly by the investors or be provided by internal or external sources founding.

The production

It includes the relation with the other chains around the mining activity as they are it the inputs, the technology, the manual labor, the commercialization, the infrastructure and the transport, among others, within the productive process by means of which the mining resource is extracted and is transformed or into the market (accompanied or by a process that generates added value). It also demands to establish competitive productivity indices, of which they



441

affect the costs of the same one directly and they do not determine its competitiveness in the national and international markets.

Additionally, being the resource of property of the State, the productive activity, specifically the extractive process, is generating of a rent for the state (mining rent).

AN SPECIFIC CASE, INDICATORS FOR A NICKEL MINE IN COLOMBIA

Cerro Matoso S.A. (CMSA) is a company of world-wide class, conformed by an outstanding human group almost totally Colombian with the financial, organizational and technological support of BHP - Billiton, owner of 99% of the actions of the company. Some achievements of CMSA were certification ISO 14002 in 2000 and re-certification ISO 9002 in 1999, after being one of the first companies of the country in obtaining it in 1995. ISO 14002 already means satisfaction in environment indicators. In the 2000 it obtained the Cross Emerald of the Colombian Council of Security and in 2001 prize DHL - Logistic of Export 2001.

“What it is not possible to be measured is not possible to be improved", deep and accurate concept of Karou Ishilkawa, the great Japanese writer who as much contributed to the quality concept. With this same spirit the independent evaluation of the economic impacts was promoted partner of the "Complex of Production of Ferro- nickel de Cerro Matoso S. A." This study study was made by the consultants “Econometry" with the contribution of the "University Corporation of the Sinu '".



442

Economic effects

Production (million pounds)

Sales of Ferronickel

(US$ million)

Investments (US$ million)

1982 –1999 757 2,598 986 2000 – 2020(e) 2,399 7,058 330 1982 - 2020(e) 3,156 9,657 1,316

Contributions to the Domestic Economy

The total of Production Matoso is exported, process that obtained an annual average in period 1994 - 1999 of 170 US$ millions /year, positioning to CMSA like the industrial company of the country with greater value of annual exports

Added value total generated by Matoso

1982 - 1999 2000 – 2020(e) total Paid wages 449 658 1.107 Taxes and contributions 311 1.815 2.126

Royalties 101 789 889 Excessive gross of operation

1,203 1,991 3,194

Added Value US$ 2,064 millones

US$ 5,253 millones

US$ 7,316 millones



443

Improvement of the quality of life

UBN Improvement in UBN by CMSA

Rest of department(*) 20,8% Montelibano 31,7% 11% % Rest of the area of direct influence 22,8% 2% UBN=Unsatisfied Basic Needs Index (*) Without Montería, neither Matoso’s influence area

Reduction of the rate of illiteracy 1973 1993 Reduction Montelíbano 49,78% 23,96% 52,42% Rest area of influence 51,57% 29,31% 41,96% Rest of the department of Cordoba 40,89% 23,73% 36,57%

Communitarian development and support to productive projects

Foundation San Isidro Educative Foundation of Montelíbano

Panzenú Foundation

$10,169 millions $30,818 millones $21,375 millones

US$ 6,3 millions US$ 18,5 millones US$ 12,3 millones

Constant Colombian Pesos $ and constant dollars US$ of 1999

The foundation San Isidro generates direct and indirect employment in the zone of the area of influence direct Matoso. In 1999 it altogether generated 42 employees of which 31 is direct; In 1999 it took care of 147 communities which meant a 49% of cover of the influence area developing programs such as: Support to productive projects with credit and qualification, contributions to productive projects, communitarian development and donations to social projects, projects of house, fortification of the communitarian and institutional management among others.

The Educative Foundation Montelíbano was founded on 1981 to offer education of high quality to the children of employees



444

Matoso the Hill and of his foundations, also, from his foundation it has offered the opportunity to study to students employees Matoso hill, not being represented a 15% of the student population of the foundation; the results of the foundation in the tests of the ICFES between 1993 and 1997, classified to the school in their Maxima category (high). In 1998 and 1999 the yield of the establishment was catalogued like superior.

The Panzenú Foundation is a IPS dedicated to the benefit of the service of health to Matoso’s workers and of its foundations as well as to their relatives, its cover is close by 4,800 people who represent 11% of the population of the municipality and 19% of the municipal head. Impacts in the physical infrastructure development

Monte libano

Other munici-pallities that receive from

CMSA royalties

exemptions Cordoba

Average national

Average Cover of the service of aqueduct

36,4% (1985) 68,9% (1997)

18,68% (1985) 67,02% (1997)

39,8% (1985) 74,8% (1997)

69,7% (1985) 85,0% (1997)

Cover of the service of sewage system

17,30% (1985) 35,10% (1997)

12,8% (1985) 33,06% (1997)

11,60% (1985) 27,30% (1997)

46,30% (1985) 67,00% (1997)

Cover of electrical energy to domicile

45,30% (1985) 93,90% (1997)

30,26% (1985) 65,98% (1997)

37,80% (1985) 70,30% (1997)

65,70% (1985) 91,80% (1997)

Density of tele-phone service

2,1% (1985) 4,8%

(1997)

1,6% (1985) 2,43% (1997)

2,4% (1985) 4,5%

(1997)

9,5% (1985) 11,1% (1997)



445

Royalties

CMSA’s royalties create new conditions and institutional necessities in the receiving organizations that they generate: changes in the territorial finances, new opportunities of investment and institutional handling and decision making.

During the period of 1982 - 1999 Matoso paid by concept of royalties US$ 101 million constant dollars of 1999, which were used in the area of direct influence like investment in projects of: health, education, aqueduct and sewage system, electricity, environmental, house, routes, service of debt, operation, institutional fortification among others.

Environmental Management System

CMSA with the objective to orient its work in the care of the environment has implemented the system of environmental management with base in norm ISO 14001/96 and through the environmental policy it is engaged with the protection of the environment and the preservation of the natural resources achieving the sustainable development.

Synthesis of effects in CMSA

Additionally to the economic effects before presented, , the payment of royalties and the support to the community through their foundations have produced important effects in the area of direct and indirect influence: improvement of the quality of life of the region, communitarian development and support to productive projects, extension of the cover and quality of the services public and the physical infrastructure and better possibilities of investment on the part of the receiving municipalities of royalties.

Main obstacles

The main obstacle to the profit of the CMSA competitiveness is the high costs of electrical energy, the double of the cost for the



446

international competitors, as well as frequent and the very substantial new surcharges that it represents more of 30% of his direct costs of production. In 18 months until June of 2001 to the positions and taxes to the electrical energy were duplicated, those that already represent half of the invoice. Only half is negotiable by contract.

Maintaining the competitiveness CMSA that as much has made an effort in obtaining, aspires to remain several lustrums and to continue exerting its deep social responsibility in the region where it operates.

In the future he will be indispensable to reduce the production costs of Ferro nickel, if it is wanted to extend the useful economic life of the deposit. As lowing the grade of the available ore, since it started was of 3% and today is 2,3% , requires more energy by production unit. The years of life utility of the mineral deposit depend then, of the lower cost of producing.

POTENTIAL OF DEVELOPMENT IN COLOMBIA

In Colombia a great potential of mining projects exists to develop, which can generate economic and environmental impacts partner equal or superior to the one of complex Matoso, as long as they are advanced with the criteria of sustainability, and competitiveness, under stable a legal and tributary frame, looking for its location in the first lines of export and therefore a high mining positioning world-wide level. Now appears a listing of possible developments for metallic minerals accompanied by projections of investment and currencies and the possible impact in the employment generation and they are compared with two actual projects in Peru (Yanacocha and Pierina)



447

CONCLUSIONS

An integral development of a nation based upon mining, needs to integrate de exploitation of its mineral potential, transformation processes, high add value and commercialization, using sustainable indicators. It is a key to identify the critical success factors that induce the growth of the mining sector under the integration of all actors.

EXPLOITATION TRANSFORMATION –

ADDED VALUE COMMERCIALIZATION

IMPROVEMENT AND OPTIMIZATION

EXPLORATION, OPERATION TRANSFORMATION - ADDED VALUE COMMERCIALIZATION

DEFINITION OFACTORS

, ELEM ENTS FACTORS

STRATEGIESAND ACTIONS

INDICATORS

DIRECT TOTAL

MOCOA 570 1500-2000 3000-4000 180PANTANOS PEGADORCITO 380 1000-1500 2000-3000 120MURINDO 700 2000 4000 180MARMATO 500 500-600 1000-1200 120CERROMATOSO 420 1338-2688 3227-6697 150CERREJÓN 3000 3500-5500 7000-1000 1000 YANACOCHA 400 3000-4000 6000-8000 300PIERINA 260 2000-3000 4000-6000 240

DEPOSIT INVESTMENTINITIAL M US$

EMPLOYMENT ANNUAL EXPORTS

AVERAGE USS

US$



448

Design of system of control to measure the management of the State, as developer roll, is an important work as the design of the strategies and actions for the development. With the identification of the actors and their elements, the action of the State would be use the indicators to measure the following aspects:

ACTOR ELEMENT INDICATOR Ambient of formation Knowledge of the subsoil Information

Administration of the Resource

Evaluation of the mining resource Environmental Legislation Tributary Legislation Labor Legislation Mining Legislation Schemes of Incentives

Legal Issues

Development of Infrastructure

STA

TE

Institutionalism Clear Regulation Social Welfare Economic Welfare Welfare Environmental Welfare

Qualification and formation

Levels of qualification and formation

CO

MM

UN

ITY

The organization communitarian Organization

The resources Development of projects

The investment Levels of investment

THE

PRIV

ATE

IN

VES

TMEN

T

The production Indices of productivity

The process of economic growth must be the continuous and persistent increase of real the national product, but still more the



449

sustainable economic development are due to look for by means of the harmonization and integration of the objectives and goals on economic, social and environmental component, with defined strategies and actions for each actor.

As result of this process must improve the qualitative conditions of life, such as nutrition, living, education, health and recreation conditions, for all the classes in equal proportion. Therefore, a diminution of the poverty, the inequalities, the unemployment, at the same time that is due to improve the quality of life, the environmental conditions and the political stability; this it is the challenge that really must confront the mining and minerals in century XXI.

BIBLIOGRAPHY

UPME. 2002. Documents in process of the National Mining Development Plan 2002-2006

CMSA. 2000. Evaluation of the economic impacts partner of the industrial mining complex of Ferro- nickel of Cerro Matoso S.A. 1980-1999, 2000-2020

UPME. 2001. Competitiveness of the Colombian mining sector

MINISTRY OF MINES and ENERGY, UPME 1998. National plan of Mining Development



451

SUSTAINABILITY INDICATORS IN METALLIC AND NON METALLIC ORE MINE DISTRICTS IN VENEZUELA:

INVESTIGATIÓN PROPOSAL

MSc. Alba J. Castillo1, Br. Aurora Piña2 and Br. Sixto Jaspe2 1Instructor, Mining Department, FI-UCV.

2Mining Engineer Candidates, FI-UCV. [email protected]; [email protected]; [email protected].

INTRODUCTION

This paper presents the research proposal description: “Evaluation of Sustainability Indicators to Decision Making Optimization in Creation of Sustainable Mining Districts Process”. Mining and Environment docent unit researchers, to the Venezuelan Science and Technology Ministry, have submitted this proposal. This proposal has been welcomed with interest and enthusiastically by public officials of scientific and technical research and natural resources administrative agencies.

Particularly in the research subject, the academic realm of university studies in mining still has the need to include the temporo-spatial vision of mining concessions groups. These concessions are simultaneously operating in a particular territory ecosystem. The ecosystem is characterized by the coexistence of hydrographic basin, biological communities, and indigenous communities; each one representing Venezuelan and global, natural and cultural patrimonial actives.

In one hand, knowledge has been reached in cumulative environmental impact, even potential or manifest. On the other hand, knowledge has been reached in visualization strategies of risk scenes and business opportunities, using process evaluation and diagnostic tools. Both have been reached in other applications of industry.



452

Nevertheless, these can be applicable in mining and environmental modern management. This practice can be included toward an extractive mineral optimization plan. Sustainable Development model might be made operative by improving initial phases of mining process, as it is sustainable mineral reserves identification and creation of sustainable mining district.

JUSTIFICATION

Traditional mining in Venezuela is modest, from the point of view of diversity of mineral commodities, mineral production scale, organizational structure, investment capital, and national gross product quote. Primary productive sector has been creating business opportunities, at the same time it has been recognizing the multiple limitations for mining industry expansion. However, there is interest to expand la national output of commercial commodities for internal consumption and exportation.

Exploration and mineral reserve analysis in Venezuela have been important, but there are still a lot of expectations on people aware of geologic potential in the national geography. Venezuela owns a significant mineralogical potential in metallic and non-metallic ores. Metallic ore bodies, of importance as gold districts in Bolívar state, in the amazon region, of Venezuela; mineral coal ore bodies at the occidental basin, in Falcón and Zulia states, and industrial ore bodies in the north region: coastal, oriental, and Andean mountain chains.

Venezuelan Government Executive Office, for instance, has been changing the natural resources administrative structure and bureaucratic procedures for land use and environment ordering. It has been dealing with making legal transactions more effective and less time consuming. When possible, exploration and exploitation permits, as mining concessions, and environmental authorizations, as



453

land occupation and resources effects. It has also been dealing with a more effective tax recuperation procedure of developing mining operations and others to initiate. Environmental protection agencies have been making more pressure, since 1992, by the time when Venezuelan Environment Penal Law and technical norms were enacted.

Constitución Bolivariana de Venezuela, of 1999, includes a declarative chapter of Environmental Rights, in which Sustainable Development Model has been declared as a principle to follow by Venezuelans. The same way, another chapter about Indigenous People Rights, recognizing their existence and their rights to use natural resources in their traditional habitats. On the other hand, Venezuela has also sign international agreements, as those of 1992 Rio Summit Conventions on Climate Change, Biodiversity, and Dryness Process Fight.

The searching strategy to convey agreements in mining matter and environmental protection allows taking advantage of national mineral potential and international environmental engagements. This way, it can environmental decision taking be incorporated as sustainability parameters in developmental programs. Such proposal has been made in Chapter 8 of 2100 Agenda. Environmental Decision Taking in Developmental Programs constitute the main reason to look for consensus between economic development and nature conservation. Thus, the need to attend international agreements in biodiversity protection, climatic change rate control to attenuate global warming, and dryness and desert creation control, with reduction control of fresh water degradation rates.

Finally, Venezuelan national reality in mining matters is complex. It is known the Venezuelan State traditional limits to organize the mineral extractive sector, especially gold and diamond extraction. Acceptable legal conditions, attractive economic



454

incentives, equal opportunities to interested people in investing on mineral commodities extraction, even under small or median production, respect to traditional land use and occupation, are all demanded by mining sector.

INVESTIGATION SCOPE

Figure 1 shows a Venezuelan map indicating selected areas to identify sustainable development indicators, for Venezuelan extractive industries. Iron and gold extraction in metallic ore mining districts, coal in energetic mineral industry, and industrial minerals sector, such as: clay, shale, and feldspar ore deposits. The objective of this selection is to attend different geographic areas, systematically characterizing them by distinctive risk scenes and business opportunities.

Although in each region, each group of indicators is present, each area is characterized by the emphasis of one or more incidence indicator: biophysical, social and cultural, social and economic, and geopolitical matters. On the other hand, to some mineral commodities there are economic settings from artisanal production, to cooperative and corporate ones. Sometimes coexisting in mining districts, such as gold and carbon districts.



455

Figure 1. Venezuelan map with schematic mining districts

With relation to metallic mining, this research proposal includes the identification of sustainable development indicators for iron and gold, in Sierra de Imataca, in Bolívar State, in the Guayana region. It presents a tropical humid forest ecological system of the amazon region, with diverse indigenous communities, as pemón y yanomami.

In the Venezuelan occidental coal basin, research is performed in two states: 1) in the northern region, in Zulia State, and 2) in Falcón State. In Zulia State, exploitation is undergoing since 1986, as a corporate economic activity. On the other state, it has been traditionally exploited with a cooperative pattern economic activity; nowadays there is an opening process toward concessions of mayor capital investment.



456

In Zulia State, of major consideration is the ecological fact that coal basin is under a specially administrated protection zone, the hydrographic basin of Guasare river. Thus, potential cumulative impact of coal exploitation would have an intended spatial directionality along coal strata strike. This directionality is oblique to natural watershed. This protected area ecosystem is a tropical dry forest, in which dryness susceptibility is already a condition to trigger desertification processes. Up to now, there have been permitted 22 exploration and subsequent mining exploitation permits, those of which are in different phases of mining processes.

Zulia and Bolívar states are at the frontier region, with Colombia and Brazil, respectively. In both states cohabit important indigenous communities. It is also necessary to consider cooperation international agreements in those frontier regions.

Related to industrial mineral districts sustainable indicators, researched regions were selected based on concentration of extractive source areas where there is considerable urban pressures. It is known that for these mineral commodities, the local value factor is a very important variable to consider in the economic analysis. There were selected three central Venezuelan states, nearby Capital District, with very dense demographic and industrial cities. Thus, Aragua, Carabobo, and Cojedes states were selected. In those states sustainable indicators would be studied for shale, clay, and feldspar minerals, respectively.

Clayey minerals, in Carabobo State, might not be the best mineral commodity to be selected there. It has been some thoughts to reconsider the industrial mineral in the same state, Carabobo, or better, to select Lara State, more western, with the same mineral commodity for the ceramic industry.

It is more evident that creation of sustainable mining districts is the opportunity to strength the mineral extractives sector. Recognizing mining projects traditional limitations is convenient and



457

ethically correct. Inadequacies include very little attention to ecological and social consequences in places with not very well probed geologic certainty and economic and technological viability. OBJECTIVES

Identify most relevant local sustainable indicators, out of biophysical or ecological, social, economic, political, and public perception realms.

Develop criteria to create sustainable mining districts, in diverse mineral commodities and at specific geographical regions in Venezuelan territory.

Manage as much necessary information to develop a mining and environment decision making tool optimization, that it would be possible to plan land use attending land vocation and vulnerability of environmental factors quality, ecological and cultural.

Recommend criteria and political ideas, from mining and environmental management, to evaluate mineral reserves considering the three fundamental variables: geological certainty, economical and technical viability, and ecological and institutional sustainability. HISTORIC ANTECEDENTS VENEZUELAN MINING

With respect to metallic mining, as in other American countries, auriferous mining was the more ancient. Since pre-Hispanic period, including commercial production with exports toward the end of the XIX century to present times. Mendoza (1988) describes a potential of 8,000ton gold reserve in Venezuelan Guayana and average annual production by the nineties of 10,000 kg, approximately.

On this own side, of relative high rate production, iron mining was initiated by the first quarter of XX century. Even with many market difficulties at the present time, there exists interest to



458

find opportunities to continue iron extraction and refining activities in the economic sector. The mining publication Anuario Estadístico Minero (MEM, 2000) presents iron probed reserves of 4,000 Mt.

With respect to energetic mining, it was the Venezuelan oriental coal basin the production source in the second half of XX century. Overwhelming limitations, even today, avoid coal extraction in this region. However, oil industry is the major economic activity there. Venezuelan coal competes in the national and international market with some fossil fuel sources, as crude natural gas. Even more, it competes with the advance of alternate energy generation sources.

Since the eighties, coal extraction operations began and today annual production reaches 10 Mt, mainly in northern occidental basin. It represents 50% production in South America. Venezuelan coal reserves amount 8.200Mt, representing 0,8% world coal reserves (Anuario Estadístico Minero, 2000).

Venezuelan non-metallic commodities sector, especially industrial minerals, is diverse and it is almost overall distributed national territory. It supplies national market inputs, such in the cases of cement manufacture industry and ornamental rocks industry. Besides, a portion of production is exported. Clayey soils, sand, shale, diamond, precious minerals, sulfur, granite, among many others are just few examples of industrial mineral diversity. Total production by 2000 was 21Mt (Anuario Estadístico Minero, 2000). PRELIMINARY RESEARCH

Original efforts to this research proposal began in July 1996, at National Mining Politics Symposia, a technical event organized by ÚCV Secretary Office research committee. The main objective consisted in technical opinions in different aspects the mining sector problems, particularly auriferous mining and mining development agenda, toward a political plan of national mining opening.



459

In that opportunity the need of governmental planning of land use and environmental protection as conditions of mining development was discussed and concluded. For the first time, it was proposed to explore giving sustainability to Venezuelan mining processes, although recognizing exhaustion conditions of mineral resources. It was asked to make deep paradigmatic and structural changes, in institutions and organizations with mission and vision of mining sector, to warrant mining process continuity (Castillo, 1996). It was postulated the need of mining sustainability from the initial viewpoint of Sustainable Minerals Reserves.

It was insisted on the thesis of identification of sustainable mineral reserves, at the Engineering Faculty Research Symposium: JIFI´98, in 1998. This event served as an academic exercise to give shape and a methodological strategy. In JIFI´2000, there was formulated a conceptual model to develop risk scenes and business opportunities evaluation and to identify sustainable developmental indicators to calculate sustainable mining reserves (Abstracts Proceedings, JIFI´98 and JIFI´2000).

In 1999, a proposal was published in the Proceedings of the XVI Mining International Congress, celebrated in Ankara, Turkey. In 1999, the VII Iberoamerican Congress of Superior Mining Education, in Caracas, was another opportunity to present the ideas. On November 2001, the research project was submitted to the Science and Technology Ministry, in Venezuela. The Environmental Management Coordination and Engineering and Development Coordination evaluated this project. It was then assigned to the Environmental and Social Impact Coordination of the Industrial Innovation Management. RESEARCH METHODOLOGY

The type of research is exploratory and correlacional. The research design is no experimental, on discrete samples of mineral



460

resources. There were selected three types of mining districts, metallic, non-metallic energetic, and non-metallic industrial minerals, in those of which is going on mining exploitations of gold, iron, coal, clay, shale, and feldspar, in specific regions of the Venezuelan territory.

There were presented three projects as Thesis Degree to opt to Mining Engineering professional tittles. Three candidates showed interest to develop the ideas of sustainable mining districts. In first term, these mining districts are described as currently traditional mining operations and their current status. Furthermore, they are included different aspects about national and international market opportunities, traditional volume of national mineral reserves, international prices, and national production costs, to each commodity.

In second term, for each mining district case it is described local legal aspects and administrative procedures to each commodity. In Venezuela, metallic and energetic mining are administrated by the federal government and industrial minerals are administrated by local state government. This last group of mineral commodities is included in a special administration law toward decentralization process and territory land use planning.

In third term, aspects of environmental management are described, including environmental impact assessment, environmental surveillance and control plans, in those cases that they are performed. This section includes the factorial identification of international environmental conventions, i.e. national strategies to control global climatic change, biological diversity conservation, and dryness and soil desertification control.

Analysis of available data includes the diagnosis of strengths and limitations of current ore exploitation, for each mineral commodity. It also prognoses opportunities and hazards of expanding exploitation volume, to convey research conclusions. Conclusions



461

and recommendations of research offer identification and proposal of local development indicators and criteria to create sustainable mining districts.

The research relevance consists in innovate and support optimization of environmental decision adoption or taking process, in the scenario of economic development politics, fundamentally with the vision of expanding mineral resource use, over space and time. CRITERIA TO SUSTAINABLE MINING DISTRICTS

Some sustainability criteria to mining districts evaluated in this study, using available information, are:

Bolívar State: in the gold mining district, which represents the major challenge to Venezuelan society, indicators are identify in the realms: ecological, social, legal, and public perception:

Exceeding habitat fragmentation; speed soil erosion and transportation; water source reservoir depletion; mercurial and cyanide water contamination.

Territory use conflicts: forestry, mining, agriculture, tourism, indigenous traditional territories, and subsistence life modes.

Revision process to legalize more than 600 mining rights permits actually declared invalid.

Conditioned opportunity equality to exploit gold, from artisanal to corporate production, public and private, in relation to economic development vision, environmental regulation accomplishment, technology, and fiscal matters.

Very limited confidence in Venezuelan institutional transparency and bureaucratic matters, neither in economic performing.

Bolívar State: iron-mining district, most relevant indicators are identify in market and environmental self-regulation model:



462

National and international commerce; national operation costs.

Politics to submit to national environmental regulations by public industry.

Zulia State: coal mining district, indicators are identify from ecological, social, and market:

Cumulative environmental impact; tropical dry forest protected area habitat fragmentation, total solid particulate, SDT; ionic sulfate concentration, SO4.

Frequent conflicts and complaints by hispanic and indigenous comprised community; frontier region characteristics.

Alternate energy source generation, competence, and availability: Venezuelan oil crude and natural gas, and renewable ones.

Falcón State: coal mining district, sustainable indicators are out of ecological and social:

Soil degradation; speeding dryness processes.

Conditioned opportunity equality related to artisanal to corporate production.

With respect to Venezuelan northern mineral industrial mining districts, only preliminarily, it can be said that most relevant sustainable indicator is recognized in social ordeal, then in economic one. Demographic pressures and urbanism fundamentally limit these. An economic restriction of mineral local value is opposite to mining potential access due to urbanistic expansion.



463

CONCLUSIONS

It has been described a research proposal in environmental mining management, helping consolidate systematic knowledge in mining industry risks and opportunities. There have been identified sustainable indicators in metallic and non metallic mining districts of Venezuela. This research will help to develop a numerical tool to optimize environmental making decision processes.

Most relevant sustainable local indicators and tendencies were:

Gold mining district of Bolívar State:

Habitat fragmentation: affected vegetation Caroní river basin: 47.3% forest, 51.3% savannas, and 1.4 % morichales: (data from the nineties). Tendencies in cumulative and increasing progress.

Soil loss river canal: suspended sediments: Icabarú 390ppm, Caroní 20ppm y Chiguao 190ppm (data from the nineties). Increasing tendencies.

Mercurial concentrations in Caroní river basin streams, as indicated in the graphic. Data was collected in the nineties in undergoing non-legal and legal gold placer mining concessions.

Resulting analytical curve from regressive analysis shows an exponential tendency, y=axb. More data is required to give a and b parameters, from the equation, in order to have more confidence in the results.



464

Each digit represents five years since 1990.

(Gathered data by Piña, 2002).

The following two graphics are from coal mining Zulia State districts. These show TSD and SO4 local sustainable indicator tendencies. These are the result of projecting coal production to year 2010. More data is required to give a and b parameters, from the equation, in order to have more confidence in the results.

Gathered and analyzed date by Jaspe, 2002

TDS ESTIMATION

0

2000

4000

6000

8000

1985 1990 1995 2000 2005 2010 2015

(mg/l)

SO4 CONCENTRATION

010002000300040005000

1980 1990 2000 2010 2020

mg/l

Hg in Sediments

01234

0 1 2 3 4

Years

Hg

(mg/

g)



465

REFERENCES

MINISTERIO DE ENERGÍA Y MINAS (2000). Anuario Estadístico Minero. Venezuela.

CASTILLO, A. (1998). Identificación de Reservas Sustentablemente Económicas. Memorias de Resumens Jornadas de Investigación JIFI´98. Facultad de Ingeniería. UCV.

CASTILLO, A. (1999). Sustainable Ore Reserves Identification. Memorias 16th Mining Congress of Turkey. The Chamber of Mining Engineers. Junio. Ankara, Turquía.

CASTILLO, A. (1999). Minería Sustentable: Revisando el Espíritu Económico de la Minería. Dimensión Académica de los Aspectos Ambientales en el Programa de Estudios de Minas en la UCV. VII Reunión de la Asociación Iberoamericana de Enseñanza Superior de la Minería AIESMIN. UCV. Noviembre. Caracas, Venezuela.

CASTILLO, A. (2000). Identificación de Reservas Sustentablemente Económicas: Escenarios de Riesgos e Indicadores de Sustentabilidad. Memorias de Resumenes Jornadas de Investigación JIFI´00. Facultad de Ingeniería. UCV. Caracas, Venezuela.

JASPE, S. (2002). Evaluación de la Minería del Carbón en los Estados Zulia y Falcón para la Creación de Distritos Mineros Sustentables. Trabajo Especial de Grado. Departamento de Ingeniería de Minas. Universidad Central de Venezuela. Inédito (En edición).

MENDOZA, V. (1988). Desarrollo Aurífero de Guayana. CVG – Técnica Minera, CA. Resumen Gerencial. Puerto Ordáz.

PIÑA, A. (2002). Indicadores de Sustentabilidad en la Optimización de Toma de Decisiones para Creación de Distritos Mineros aplicada a Minería Metálica: Au y Fe en el



466

Estado Bol+ívar. Trabajo Especial de Grado. Departamento de Ingeniería de Minas. Universidad Central de Venezuela. Inédito (En edición).

Anteproyecto: Lineamientos para Optimización en Toma de Decisiones para Creación de Distritos Mineros de Minerales Industriales en Región Central de Venezuela. (En proceso de asignación para su desarrollo).



467

PROPOSAL FOR THE THE USE OF INDICATORS FOR THE RESOLUTION OF CONFLICTS AFFECTING PERUVIAN

MINING

Maria Chappuis Peru

1. BACKGROUND

The substantial growth experienced by the Peruvian mining sector in the last decade (7% annual mean growth) meant challenges as well as exceptional opportunities for the country. Although Peru’s economic and political conditions have been improving progressively, a number of conflicts have also arisen, particularly between certain mining units and their surrounding communities. These conflicts have been largely motivated by fear of environmental pollution and the perception that these companies extract the territory’s wealth but do not create employment opportunities or tangible permanent improvements to benefit the local inhabitants, who are mainly engaged in traditional small-scale agricultural and stock-raising activities.

The ever-increasing technical nature of mining activities limits the number of direct employment openings created to satisfy the needs of these mining projects as well as the possibility of hiring local inhabitants for such activities. This perception has been exacerbated in recent years, when one compares the amounts of money that the mining industry invests in the development of its projects, the income these companies generate and the minimal participation of neighboring communities within this scheme.

Likewise, the presence of some organizations totally foreign to the area (and very often also foreign to the country itself), carrying their own agenda, coupled to the limited knowledge of the locals regarding the risks and benefits inherent to the mining activity, becomes an additional disturbing factor. In this context, perhaps the



468

major risk factor that any prospective investor has to face today, is the socio-political conflict in its area of influence (1). These conflicts can arise during any stage of the project: exploration, construction or operation stage.

Area of Influence

Geographical space over which mining-energy activities execute any type of considerable impact. The impact can be on flora, fauna, air, rural communities, natural landscape archeological sites, etc. (Glosario, Guía de Relaciones Comunitarias, Ministerio de Energía y Minas del Perú)

Before having to face the consequences resulting from this type of dispute, it is always better to create consultation and communication channels between the communities and the industry, agreeing on parameters of measurement created to encourage the growth of mutual trust between the two players. The Peruvian mining industry considers its involvement in the sustained development of the communities within its area of influence to be fundamental, contributing to their welfare by directing a significant portion of its technical and financial resources generated by its activity to an initiative of social responsibility and sustained development.

The Concept of Sustained Development: to ensure economic viability of the area of influence of mining and oil operations through the application of part of the income derived from the exploitation of non-renewable resources towards the rational exploitation of existing renewable and potential resources.

The implementation of a sustainable development program implies not only an opportunity to offer viability to the communities generally located in inhospitable geographical environments lacking in materially important resources, and relying on subsistence-level agricultural economies, but also an effective tool in the fight against poverty. (2)



469

Moreover, by actively participating in the sustainable development of the communities within the area of influence in which it operates, the industry creates the opportunity to redefine its archetype and improve its image. In a society which ever-increasingly questions the use and acceptance of extraction activities, it is important that these activities are not seen as an end in themselves, but rather perceived as a means of reaching a better quality of life for many communities. 2. THE PERUVIAN MINING INDUSTRY

The contribution of the mining activity in the generation of foreign currency in Peru is an essential element since this accounts for roughly 45% of national exports (see Table No. 1). Likewise, this industry realizes a significant contribution to the State’s tax income since it contributes 18% of Public Treasure income, despite the fact that it only represents approximately 5% of the country’s GNP.

Table N° 1 - Export value of mining products (Million US$)

YEAR 1999 2000

Total 3,008 3,212 Gold 1,193 1,145 Copper 776 931 Zinc 462 496 Lead 177 190

Regarding employment, the mining industry is also a significant player since its contribution is reflected in an estimated 200,000 direct and indirect job opportunities dependent on mining activities, equivalent to almost 4% of the national Economically Active Population (see Table No. 2).



470

Table N° 2 - Direct, indirect and dependent employment - Year 2000

Total Direct Workers 52,484 Indirect Workers 209,936 Total Direct and Indirect 262,420 Family Dependents 918,470 General Total 1,180,890

Finally, according to a recent study, the mining cluster, made up of equipment manufacturers, supplies and services is most likely the most developed in the country. 3.PROCESS FOR THE RESOLUTION OF CONFLICTS

This process requires open and permanent communication channels open to all participating entities, as well as the full integration of an adequate understanding of the existing environmental concerns for the communities involved in regional development programs. For this, it is important to determine the most appropriate mechanism to implement such a program.

The initial means chosen has been the Consultation Forum which ought to be transformed into a true “Agreement for Development” set forth in a defining document, establishing clear guidelines and backed by the State’s commitment through the signing of a preliminary agreement, and structured as an organizational framework consisting of a clear mandate which permits its execution.

Since 1998 real agricultural prices have dropped to 17.6%, causing a severe crisis.

The Consultation Forums summoned by the State are made up by representatives from a diversity of civilian sectors such as:



471

• The communities within the area of influence. • Representatives of the companies within the mining district(s). • The central, regional and local governments, and their

autonomous institutions, such as the National Environmental Council (CONAM-Consejo Nacional del Ambiente).

• The Civilian Community (the Church, NGOs, Professional Colleges, Chambers of Commerce, Defense Movements, etc.).

Through these Forums the State seeks to ensure that the implementation of a program of sustainable development actually reflects the authentic ambitions and expectations of the beneficiary communities and does not come over as a scheme paternalistically imposed by a Central Government. In this context, it is fundamental that the communities within the area of influence assume active roles and are not merely simple passive observers within this process.

To date, the traditional focus towards sustainable development in mining has generally tended to be the result of private sector initiatives (such as “Global Mining Initiative” and related organizations) in response to the call made by international organizations such as the UN and the World Bank. However due to the present urgency in this respect, the State has acted as the promoting and coordinating entity of this initial dialogue process.

In order to ensure the success of these Forums it has been indispensable for the Administrative government to issue clear guidelines to grant this matter maximum priority and to designate a specific national entity as director in addition to instructing the other Central Government entities to fully collaborate (3). In this case, the designated speaker is the President’s Ministry.



472

The state entities involved are the Congress of the Republic; the Ministry of Energy and Mines; the Ministry of Education; the Ministry of Agriculture; the Ministry of Health; CONAM: the National Environmental Commission and the local governments.

With respect to the conflict generated in Cajamarca involving the Yanacocha mining company, the Forum has established ad hoc commissions to supervise compliance of the commitments assumed by the company, such as an international and independent environmental audit and the installation of a water analysis laboratory in the city.

In order to adequately manage the environmental concerns of the community it is necessary to create additional informative technical workshops (“there is nothing better than to be well informed in order to act appropriately”), to have established parameters agreed upon between the companies and the communities for evaluative purposes and which would, at the same time, serve as evidence of the sustainable progress of its area of influence. These indicators must be economic, social and environmental, with datelines, pre-requisites and conditions.

Proposed Indicators: Economic Investment in Research and Development Productivity Investment in Training Social Social Investment Local Acquisitions Local Workers Environmental Observance of Environmental/Safety Regulations Number of Incidents and Accidents Power Efficiency



473

The development of the indicator framework shall be based on a preliminary relationship, as well as the establishment of number-objectives for different periods, budgets, ad hoc work programs and strategies.

Once the validation of the community and the successful establishment of this initiative have been attained, then the scope of the program may be extended towards the management of a social responsibility program consisting of the cooperation of the main players, and achieving in this manner, an effective mechanism in the fight against poverty and healthier company/community relations. Likewise, every social responsibility project shall be designed to fit within the regional master plans (4) avoiding, in this way, the atomization of available resources and the loss of synergies.

The regional master plan, shall require the creation of an intangible fund so as to ensure that funds shall not be withdrawn in the future and diverted towards short-term needs and shall be subject to a series of control mechanisms regarding its applications, without affecting its operational agility.

The financing of this fund shall be realized through State contributions (mining canon), the mining industry’s social investment, contributions made by the communities themselves and eventually from additional resources proceeding from international donors. Since the mining canon will not be sufficient to allow for the successful implementation of these activities, the existing legal framework is currently under study to determine whether it is convenient to reform it and establish a tax credit for those expenses incurred by the industry and which are directed towards improving the communities within the areas of influence.

The present viability, as well as the stability and continuity in time of this initiative, of measuring the execution of the social responsibility of a company by means of indicators, may be boosted by the involvement of multilateral entities (5), explicit State



474

commitments, and the consensus between the representatives of the administrative, legislative, central and local governments.

It is essential to develop an organic structure which contributes towards this participation and ensures actions which integrate the efforts of all the participants within this initiative, and supports a development agreement based on a diagnose of the present situation as well as the identification of concrete and real objectives and goals.

The participation of multilateral agencies could ensure the participation of a perfectly neutral and trustworthy player capable of providing support based on technical experience and standing firm against distortions in the program so as to guarantee continuity and fulfillment of its primary objectives. All too often programs which include State-participation tend to stray from their original objectives in response to economic trends, and thus wavering their original mission. The participation of these organizations would guarantee any such program with elements of transparency and external supervision. 4. INITIATIVE FOR THE USE OF INTERNATIONAL INDICATORS

Multilateral organizations can contribute not only with their human and financial resources, but also with its wealth of experience and related projects in other parts of the world to define methodologies which would enable assessing the companies’ environmental performance. This is the case of Global Reporting Initiative (GRI), which designed a methodological guideline for drawing up Sustainability Reports. This permits a common language both for the companies as well as for the government and civilian community, which in time will foster enhanced levels of trust and credibility.



475

5. CONCLUSIONS

• The road is long, but worthy. The participation of the communities within the area of influence is fundamental, since these must carry out a proactive role.

• The comparable measurement of the performance of the industry in different parts of the world would permit its better acceptance. Companies which know the reality of their area of influence better than the regional or central governments can offer better input towards the district’s sustainable development.

• A sustainable development initiative cannot be executed without the close coordination and collaboration of the local, regional and central governments.

• Private companies are also another indispensable protagonist within the articulation and implementation of this initiative. Nevertheless, it is important to evaluate the level of representation such participants should have.

• The destabilizing effect of some non-governmental organizations in industry-community relations has already been mentioned. It is indispensable therefore to ensure not only the cooperation of the most representative elements, but also those which are more inclined to cooperate and negotiate.

Some Indicators for Cajamarca

In the case of Cajamarca we can say that the presence of Minera Yanacocha has contributed towards boosting its economy, from the very beginning. Between 1992-1993, construction works mobilized hundreds of persons. In the last three years, 686 million dollars were invested in the area, representing roughly 70% of the billion dollars invested between 1992 and 2001. There is no question about this is massive investment having an exceptional impact on Cajamarca’s economy. In effect, the GNP rose by 109% between 1993 and 2000 while the national GNP grew only by 45% in the same period.



476

During 2002, Yanacocha will produce between 2.2 and 2.4 million ounces of gold, valued between 660 and 720 million dollars. This sum could represent between 8 and 9% of the total value of exports for the country. Programmed investment is estimated at 200 million dollars out of which 100 million dollars are to be invested in the country. The purchase of goods and services in Cajamarca accounted for 44 MM in 2001. Workers and contractors (5000 people) represent approximately 10% of the economically active population of Cajamarca. Indirectly, Yanacocha creates additional employment for 15 to 20% of the economically active population.

6. BIBLIOGRAPHY

Cabrera, Cesar Humberto, “Inversión Minera y Desarrollo Regional, Algunos Indicadores para Cajamarca”, Abril 2002.

Gomes, Claudio “Crescem os Investimentos Privados no Social” Gazeta Mercantil, Abril 15, 2002

Hoyos Juan, “Balance Social de la Minería”, IDEM, Marzo 2002

Joyce, S, Thomson, Ian “Cultural Dimension to Sustainable Development”, Mining Journal, London May, 10, 2002

Stoddart,Richard “ Desarrollo Humanamente Sostenible en Mineria y Energia”, MEM, Julio 2001

World Bank, “Large Mines and the Community, Socioeconomic and Environmental Effects in Latin America, Canada & Spain”,2001

World Bank-IFC, “Large Mines and Local Communities: Forging Partnerships, Building Sustainability”, 2002

World Bank-IFC,” Treasure or Trouble? Mining in Developing Countries”,2002

IV. Region Case studies



479

THE UTILISATION OF SUSTAINABLE DEVELOPMENT INDICATORS WITHIN THE EU MINING INDUSTRY

Luís Martins Head of Department, Instituto Geológico e Mineiro, Apartado 7586, 2721- 866 Alfragide, Portugal, Tel.: (351) 214 718 922, Fax: (351)

214 718 940, - e- mail: [email protected]

INTRODUCTION

In 2000, the 15 EU member countries consumed approximately 30 tons/per capita of raw materials necessary to maintain their standard of living, which represents a total consumption of 11 295 Mt. The mining industry is the only capable of obtaining these materials for domestic and industrial use. It is obvious that the processes required to extract from the earth these mineral products have an impact in our environment.

Although the mining industry (post 60 ‘s) is not one of the most polluting sectors, it is viewed with a tarnished image by politicians and political opinion as well as the media in general. However, this image is often unjust and environmental impact is confused with visual impact. Recent estimates published by the European Environment Agency indicate



480

That the total area of Europe affected by nitrate and pesticide pollution resulting from agricultural activities is 600 to 1200 times higher than that caused by the mining industry, even though this activity is often viewed as a “necessary evil”. On the other hand, the approval, implementation and development of recent EC directives have severely limited the industry to access to necessary geological resources, which is a highly penalising factor since the location of these high economic value deposits is controlled by natural processes and cannot be chosen or modified.

Within the mining industry, the denomination of the word “contaminated” that may be conferred to the environment, by way of exploitation, results mainly from the accumulation of sterile materials from mining, rejected materials resultant from ore treatment and the circulation of liquid effluent carriers of heavy metals and reagents, some of which contain some organic matter. Therefore, it is largely due to chemical factors that these attain greater relevance; be it by their inherent element toxicity or other



481

constituent components or by the aerial extension of influence. However, this environmental problem cannot be disassociated from other aspects such as those that deal with the security of people and assets although risk situations can occur due to abandoned structures that are frequently in ruin, unsealed or unprotected escavations, shafts and addits, Subsidence phenomena resulting from the cave-in of underground stopes.

Lousal Mines- Iberian Pyrite Belt, Alentejo, Portugal

It is known that in developed countries, authorities and economic operators are increasingly understanding that generically “a sustainable industrial development has to include an environmental facet” such that the mineral extraction does not affect subsequent use of the land and subterranean water and the land planning. On the other hand, it is known that in the past the mining industry was guided by criteria that allowed the optimal use of deposits based essentially on economic factors. Due to this type of thinking and lack of control of the mining activity resulted situations



482

of environmental danger, which have worsened over time. These factors result in the fact that now the governments of developed countries, namely the EC, consider environmental with a greater weight than economic or social factors, i.e. this situation is inverted or on the way to becoming disequilibrated. This highly visible scenario in a continent with long historical traditions such as Europe has generated the necessity to define sustainable development indicators, which can objectively measure this disequilibrium and make a decisive contribution towards achieving a balance between economic, environmental and social factors.

São Domingos Mine - Iberian Pyrite Belt, Alentejo, Portugal

THE WORK GROUP "RAW MATERIALS SUPPLY GROUP" (RMSG)

The primary objective of this group, which was formed some years ago under the aegis of the EC Directorate- General Enterprise, is to improve sustainable competitivity within the mining industry. The group further pretends to promote the interchange of information and discussion on issues related with this problem by involving various stakeholders as representatives of the Commission, delegates from member countries and candidate countries, industrial associations and interested NGOs.



483

Extraction of clays in the Barracão area, Pombal, central Portugal

In 2000 this work group produced a Communication – Com (2000) 265 on the application of the concept of sustainable development within the mining industry (a first in this sector) entitled "Promoting sustainable development in the EU non- energy extractive industry", in which are proposed some priority actions, one of which is the necessity to maintain and enlarge dialogue between members and subsequently create work groups that pragmatically deal with those priorities. Therefore, subsequently, there were created groups to study the themes of Mining Security, Sustainable Development Indicators, Expansion and Restructuring of the RMSG.



484

THE “MINERALS POLICY SECTOR" OF THE EUROGEOSURVEYS

The Association of European Geological Surveys "Eurogeosurveys", presently all 15 European member countries as well as Norway, Switzerland and Iceland and more recently Bulgaria, Poland, Hungary and Czech Republic. Its structure contemplates 11 different thematic topics or "Policy Sectors", which have as their main objective to make public the role of the Geological Surveys in each of those areas of intervention in the offices of the EC.

One of those wok groups, entitled "Mineral Resources", integrates various members with a long mining tradition which have contributed to the discovery of new mineral deposits that have guaranteed the supply, to Europe, of raw materials thereby maintaining the standard of living of its citizens while simultaneously assuring a equilibrated sustainable development.

Old infrastructures of the Aljustrel Mines - Iberian Pyrite Belt, Alentejo, Portugal



485

Conversely, these organisations have played a pivotal role in maintaining the balance between the needs of the industry and environment, supplying practical geoscientific multidisciplinary know-how on an impartial basis. This knowledge has aided governments, industry and the general public to ensure that mining activities continue in and environmentally friendly manner. The "Minerals Policy Sector" (MPS) has as members, representatives from the Geological Survey of Portugal (IGM- coordinator), France (BRGM), Spain (IGME), Sweden (SGU) e United Kingdom (BGS), which form the Executive Committee. As corresponding members the MPS has Greece (IGME), Norway (NGU), Germany (BGR), Ireland (GSI), Austria (GBA), Finland (GTK), Denmark (GEUS), Holland (TNO/ NITG), Iceland (OS) and Hungary (MAFI). Its mission is based on the following points:

• Promotion and follow up of development of all actions related with mining resources.

• Application of information and geoscientific know-how in the exploration of mineral resources within the EC.

• Intervention in the establishment of a European mineral raw material investigation policy taking into account aspects related with land planning.

• Contribution towards the solution of problems related to the supply of mineral raw materials and the environment as well as aspects related with geomining assets.

The MPS has been participating regularly in meetings and various other activities of the "Raw Materials Supply Group" and has produced various documents dealing with matters related to its core mission as well as being represented in the work groups “Expansion”, “Mining Security” and “Sustainable Development Indicators”.



486

SUSTAINABLE DEVELOPMENT INDICATORS WITHIN THE EC: METHODOLOGY AND CRITERIA

We can use several different types of Sustainable development indicators, i.e. pressure, which describes the variables that cause environmental problems, state, which reflect the most common conditions within the environment, impact, which shows the end effects of a significant change in the environmental context and finally

Old sulphur factory at Achada do Gamo- São Domingos Mine, Iberian Pyrite Belt, Alentejo, Portugal

Action

Which demonstrates the effort spent for dealing with specific problems. The choice of these indicators is often not easy since they have to be sufficiently relevant to deal specifically with each developing situation as well as being scientifically sound, resistant to change in space and time and social change, sufficiently clear, comprehensive and coherent, easily accessible and able to detect alarm situations.



487

Limestone quarry in Salgueiras, Maciço Calcário Estremenho, Portugal

Furthermore, these sustainable development indicators group themselves in the following classes or categories: social, economic, environmental and institutional. In this domain the work carried out by the "Commission on Sustainable Development" of the United Nations.

The work group “sustainable development indicators” formed under the above mentioned "Raw Materials Supply Group" has been working on these matters since the beginning of 2001 and has tried to define criteria and work methodologies in the selection of indicators to be used within the EC in such a way that they have a consensual acceptance by the mining industry and all other stakeholders. The following steps have been taken:

1) The group initially planned to present a series of indicators for approval in the plenary meeting of the RMSG until the end of the first semester of the current year and has met 6 times so far.

2) In the first meeting, objectives, scope and methodology were discussed. It was concluded that the indicators served to better communications between the various partners involved (industry,



488

entities and administration, general public). The indicators will be defined following the various levels: a) companies and/or locals; b) industrial sectors; c) regional or national; d) EC.

3) In the second and third meeting it was decided that the indicators would be established under the following categories or classes: a) social; b) environmental; c) economical; d) institutional.

Panasqueira Mines, Centre of Portugal-Mine dumps next to the old Rio plant

4) In the fourth meeting it was concluded that a group of indicators would be defined so they could be tested, by way of a questionnaire, by a group of companies. The IMA ("Industrial Minerals Association") offered to select 15 companies and this motion was carried.

5) The fifth and sixth meetings discussed the replies from the above mentioned questionnaire, which had a resounding acceptance. From this evaluation resulted the selection of 22 indicators, 16 of which will be used at a company or local scale, 6 at national level of the member states, while 2 of the indicators will be common to



489

both. The following types of indicators were discussed and debated: Employment and Education; Health and Security – Employment Conditions; Investigation, Investment and Exploration; Communication; Use of Energy and Resources. For example, we can refer the separation between direct and indirect employment would cause confusion and hence would be treated as one and quantified through an index termed “full time employment equivalent" and that the indicator "proximity to natural reserves" would only be used at the national scale. Finally it was suggested that the objectives and form of this task should be made clearer as well as paying close attention with respect the publication of results since many of these contain delicate and/or confidential data.

6) In the plenary meeting of 8 March 2002 of the RMSG, these conclusions were presented and accepted. It was also decided to continue the work of the group so that the points raised above could be clarified as well as to compare the results and other similar and contemporaneous initiatives.

REFERENCES

CE, Promoting sustainable development in the EU non- energy extractive industry, COM (2000) 265, Brussels, May 2000.

Espí, J. A., Métodos actuais de análise de qualidade e gestão ambiental, aplicados a operações mineiras, conferência proferida no IGM, Março de 2002.

Martins, L., Regueiro, M., Arvidsson, S., Mining in Europe: the Future, Documents du BRGM 297, pp. 24-27, BRGM, Orléans, Novembro de 2000.

Regueiro, M., Martins, L., Féraud, J., Arvidsson, S., “EGS' Opinion on the document of the European Commission Directorate-



490

General Environment, Towards an European strategy for the sustainable use of natural resources, Madrid, Maio de 2002.

Santos Oliveira, J. M., Matos, J., Farinha, J., Ávila, P., Rosa, C., Martins, L., Machado, M. J. C., Daniel, F., Machado Leite, M. R., Diagnóstico preliminar das minas abandonadas do País, Relatório interno do IGM, Lisboa, Maio de 2001.



491

UNIDO’S POSITION

STRATEGY OF THE ORGANIZATION TO ACHIEVE SUSTAINABILITY IN PROJECTS RELATED TO MERCURY POLLUTION OF INTERNATIONAL WATERS CAUSED BY

SMALL-SCALE GOLD MINING

Christian Beinhoff

Artisanal mining which is sometimes used synonymously with small-scale mining means different things to different people. There is no universal definition of what constitutes an artisanal or small-scale mine. In general, artisanal mining is used to refer to those mining activities carried out by individuals, families, and/or adhoc groups (some form of co-operatives) of indigenous people, the majority of which have no technical skills and lack adequate working tools. Although the term “artisanal mining” is used in some countries, e.g., Zimbabwe, to refer to illegal alluvial gold mining activities, it is used in others to refer to those activities that are carried out without following conventional mining engineering norms. As such a good number of artisanal miners in countries like Brazil, Indonesia and Tanzania are licensed and there are policy drives to get all mining activities licensed as a way of transforming them into organized small-scale mining activities. Although there have been improvements by various countries in recognizing artisanal mining as a significant economic activity, the promulgation of legal frameworks that are conducive to this sector remains elusive.

Despite these activities being individually small, their combined economic and social impacts are substantial for the economies of many developing countries. Globally, it is estimated that up to 12% of metallic minerals, 31% industrial minerals, 20% coal, 10% diamonds and 75% of gemstones production come from small-scale mining operations. In individual countries the economic



492

benefits are even higher. For example, whereas in Brazil activities of garimpeiros are estimated to produce 50% of the country’s total gold production averaging around 60 tons, it is estimated that in both Tanzania and Zimbabwe artisanal miners have the capacity to produce 10 tonnes of gold per year. On average, it is estimated that artisanal miners in Indonesia and Laos have annual gold production of nearly 50 and 0.5 tonnes respectively. Although statistics are hard to establish, estimates show that in Sudan where artisanal gold mining is relatively limited, 10 tonnes of gold have been produced over the last thirty years (1970 to 1999). These activities provide considerable employment especially in the rural areas and thus contribute substantially to poverty alleviation. It was estimated in 1993 by the International Labour Organization, (ILO), that out of the 30 million mineworkers throughout the world, 6 million were engaged in artisanal mining in developing countries. Given the fact that rural poverty is prevalent in most developing countries, artisanal mining has room to contribute fully to economic and social development. It is now widely accepted by large mining companies that artisanal miners are one of the most important tools for finding sizeable gold deposits. Artisanal mining also allows the exploitation of marginal reserves that would otherwise be classified as uneconomical.

Although artisanal mining has shown some positive contributions, it has also suffered negative conceptualization as a misnomer to mineral sector development by host Governments. Whereas some countries choose to ignore the existence of such activities, others lack adequate legal frameworks to regulate them. As a result, the activities are carried out illegally thus denying the host Governments the badly needed revenues. Even in countries that have enacted legal and regulatory frameworks for controlling such activities, the lack of adequate resources limits the capacity to institute them effectively. The combination of this and the lack of technical know-how and financial means make it difficult for miners



493

to invest in appropriate technology. Mining and processing activities are carried out by manual means or through application of locally improvised but inefficient equipment and tools. As a result, the activities have become synonymous to negative environmental impacts, inefficiency, lack of adherence to health and safety standards, and activities that have negative social impacts. The uncontrolled use of mercury as a cheap means for recovering gold is now threatening the health of miners and members of communities far away from mining areas. Most of the negative factors tend to reinforce one another resulting in a vicious circle that is difficult to break. For example, the lack of regulatory mechanisms means that Governments lose the much-needed revenue that in turn makes it impossible to provide adequate control due to lack of resources. The lack of, technical know-how, access to credit facilities, and technical support coupled with poor organizational structures means that miners are unable to invest in technology and hence cannot improve their working methods. This results in negative environmental impacts, low productivity and hence earnings and the vicious circle continue.

In many gold producing countries, women are major participants in artisanal mining activities. In Laos it is estimated that almost 80% of all artisanal gold panners are women. In Zimbabwe, the majority of the 350,000 estimated artisanal miners are in gold digging and panning with 50% comprising of women and children. In Tanzania, 26% of all 600,000 artisanal miners are estimated to be women most of which mine gold and gemstones. In Sudan it is estimated that 35% and 10% of the miners consist of women and children in the Southern Blue Nile and Eastern Bayuda Desert regions respectively. Despite these impressive figures, the number of women miners with mineral rights is still limited. In other words the majority of women operators are still in the illegal miners category. Direct entry into mining production activities is often determined by taboo,



494

socio-cultural factors, financial and economic capacity, technology and organizational aspects.

ARTISANAL GOLD MINING ACTIVITIES IN INTERNATIONAL WATERBODIES

Recently a new project has been approved by the Global Environment Facility (GEF) for UNIDO execution in six countries (GLO/01/G34). The selection of countries participating in this project was done based on the intensity of mercury based artisanal gold extraction activities and their impacts on water bodies of global significance. In the South American region, the Amazon Basin is the largest drainage system in the world with an area of about 6.0 million square kilometres. The Amazon River has a total length of 6400 kilometres, which is slightly shorter than the Nile. Stretching almost 2760 kilometres from north to south at its widest point, the Basin occupies a great part of Brazil and Peru, significant parts of Columbia, Ecuador and Bolivia and a small area of Venezuela. Almost two-thirds of the Amazon’s main streams and by far the largest portion of its Basin are within Brazil. More than two thirds of the Basin is covered by an immense Amazon Rain Forest which represents about half of the Earth’s remaining rain forest and constitutes the largest reserve of biological resources. At the peak of the gold rush in the 1980s, it was estimated that nearly 1.0 million people were directly involved in the activities, with 400,000 of those being in the Tapajos area alone. Available figures show that nearly 1,000 tonnes of mercury were dumped into the Amazon Basin during the 1980s and nearly 130 tonnes are currently dumped annually.

Within the participating countries of the African Region, the significant International Waterbodies include the Nile River system, Lake Victoria and the Zambezi River system. The Nile River system is composed of the Blue Nile (Abbai) River that originates from Lake Tana and the White Nile that rises from Lake Victoria. Sudan



495

occupies a major part of the River Nile basin. Along its course (6825 km), the Nile drains from the Equator up to the Mediterranean coast in Egypt. Areawise, the Nile basin represents one tenth of the African continent. Mining along the Nile covers nearly 2,000 km2 in the Southern Blue Nile region with mine workings developed in old river terraces along the riverbanks and its tributaries at the foothills of the Ethiopian highlands. It is estimated that nearly 120,000 people are engaged in these activities. On the other hand, Lake Victoria which has an area of more than 70,000 km2 is Africa’s largest lake and second largest in the world only to North America's Lake Superior. The Lake, which is surrounded by one of the most highly populated areas in the world and is shared by Tanzania (51% of the Lake area), Uganda (43%) and Kenya (6%), is a source of employment for nearly 30 million people. The Lake Victoria Goldfields which cover almost 200,000 km2 are estimated to employ nearly 300,000 people and produce nearly 70% of the country's total gold production. Nearly 12 tonnes of mercury are released annually to the environment in Tanzania alone. More than 50% of artisanal gold panning activities in Zimbabwe are carried out within the Zambezi River system (more than 2400 kilometres are panned) and its tributaries. The Zambezi flows along the northern and Southern borders of Zimbabwe and Zambia respectively before cutting across central Mozambique on its way to the Indian Ocean. There are about 350,000 gold panners in the country with as many as 300 panners concentrated in every kilometre of the widely panned sections of the Zambezi River system and releasing nearly 12 tonnes of mercury annually to the environment.

River Mekong in Laos and River Kahayan in Central Kalimantan, Indonesia are the significant International Waterbodies within the Asian participating countries. The River Mekong which is about 4,500 kilometres long and is a life-stay for almost 50 million people and their cultures sets out at the Qinghai plateau in Western China before flowing into Laos, Myanmar, Thailand, Cambodia and Vietnam. Although the upper portions of the river are characterized



496

by turbulence, the lower Mekong is more placid, and the annual flooding supports a biologically diverse ecosystem. In Laos, alluvial mining activities are carried out as seasonal activities during the dry non-agricultural season mainly by dredging on the River Mekong and its tributaries. Up to 3,000 miners have been found at any one time working on River Mekong. The Kahayan River, is the largest river in Central Kalimantan and drains directly into the Java sea and thus with effects to Singapore, the Islands of Sumatra, Java, Bali and others. Most activities are based on alluvial operations within the river systems with a few mining hard rock gold veins. However, even those in hard rock mining transport the ore to the rivers for processing. The Kahayan River in Central Kalimantan and the Tapian River in North Sulawesi are known to have a high concentration of miners per kilometre length. It has been reported that more than 2,000 illegal miners would converge on single mining site following a reported gold recovery. In Indonesia where artisanal gold mining activities are carried out either through village cooperative units or through illegal operations and are found in the provinces of West and Central Java, Sumatra, Central and East Kalimantan, North Sulawesi and others, nearly 180 tonnes of mercury are released to the environment annually.

NEGATIVE ENVIRONMENTAL IMPACTS DUE TO ARTISANAL GOLD MINING

Artisanal gold mining activities within the participating countries under review show negative environmental impacts that tend to overshadow their positive contributions. Mining is carried out either by pitting in both hard rock and in old riverbed alluvium or by dredging existing riverbeds all of which generate substantial amounts of rubble. Whereas pits in abandoned areas are dangerous to people and animals, the mined rubble blanket the top fertile soil and thus lead to loss of grazing and agricultural land. The exposed mined areas



497

are susceptible to accelerated erosion from both wind scour and surface runoffs and may lead to Acid Mine Drainage. Piles of tailings most of which contain toxic chemicals, e.g., mercury, are directly washed into rivers resulting to siltation and water pollution problems. Pools of stagnant water left behind during washing and abandoned flooded pits turn into breeding grounds for Malaria spreading mosquitoes. Poor sanitation from mining camps, hydrocarbons from machinery, uncontrolled use of explosives and others, add to pollution of surface and ground water systems.

During the preparatory phase of this project, it was revealed that mercury is directly released into rivers and lakes during panning of the alluvial ore or washing of the hard rock-based ore within the waterbodies. The key concerns here are the direct release of mercury into the waterbodies, its accumulation and subsequent methylation to organo-mercury and hence transfer into the food chain through the aquatic ecosystem. The transformation of inorganic mercury to an organo-metallic compound, methyl mercury, is the most significant in terms of uptake and accumulation of mercury by man as this compound can block enzymes and so damage essential metabolic processes.

Available data indicate that the amount of mercury released during burning of the amalgam is approximately in the ratio of 1.2 - 1.5:1 to the amount of gold produced. There are clear indications that mercury pollution from small-scale mining is a threat to public health not only in the proximity of mineral processing activities, but also in the mining villages themselves and even far downstream of contaminated rivers. New results from UNIDO projects in Ghana and Philippines give evidence that approximately 50 percent of gold mining communities in these countries must be considered as mercury-intoxicated, i.e. the threshold limits in body fluids are by far exceeded and the neurological symptoms can be detected.



498

At present, there is not any single “off-shelf ” solution to problems related to artisanal mining. The introduction of cleaner mining and extraction technology would go a long way to minimize the activities impacts to the environment, maximize the socio-economic benefits and ensure that operations are sustainable and adhere to health and safety standards. Although piecemeal solutions have been tried in many countries, a more holistic approach is required in dealing with artisanal mining problems. Attempts to such an approach that will ensure the introduction of cleaner mining and extraction technologies is a priority for UNIDO.

INTERNATIONAL AND NATIONAL ACTIONS

The plight of artisanal and small-scale mining has attracted the world attention since the seventies. In 1972, the United Nations Department of Economic and Social Affairs published the proceedings from a seminar organized to discuss small-scale mining activities. Although a number of meetings have since been held and strategies laid on how to transform the sector, there have been limited actions "on the ground". A meeting of different international organizations and mining experts that was convened in Harare, Zimbabwe in 1993 in search for solutions to artisanal mining problems, came up with what is known as “The Harare Guidelines on small / Medium-Scale Mining”. The implementation of the guidelines whose main objective was to provide a framework for encouraging development of small and medium-scale mining as legal sustainable activities was left to individual countries and has had limited impacts.

In 1995 the World Bank hosted a “Round Table on Artisanal Mining” meeting in Washington to chart out a strategy for dealing with the sector's problems. The meeting came up with what the Bank published as a proposal for assistance known as “A Comprehensive Strategy Towards Artisanal Mining” aimed at minimizing the negative side effects and thus maximize socio-economic benefits of



499

artisanal mining. The strategy which has since been implemented in a number of countries identified the negative side effects of artisanal mining as being; unacceptable environmental practices; poor social, health and safety conditions; illegal mining and marketing and waste of resources. Where it has been implemented, the programme has succeeded in strengthening the institutional capacity and introducing internationally competitive legal, regulatory and fiscal frameworks and hence enhanced the process of legalizing the artisanal mining activities. With the increase in poverty in the developing world and the lack of coordinated international actions, the amount of mercury that is released to the environment from artisanal gold mining activities is bound to keep increasing.

Following the problems of the gold rush experienced during the 1980s, the Brazilian House of Representatives commissioned the Centre for Minerals Research, CETEM, of the Brazilian Research Council, to evaluate the state of the art of the operations, propose solutions, and advise the House on possible control legal measures. Through a four-year programme, comprehensive descriptions of the activities, data related to mercury and particulate matter pollution, proposals for control legislative measures, were produced. However, practical implementations of the findings of this programme were hampered by the lack of adequate resources especially when dealing with such a large area like the Amazon Basin. Some years later, the Government of Tanzania in collaboration with the World Bank formulated the Mineral Sector Development Technical Assistance Project in order to provide the Government with necessary technical, managerial and material support for the implementation of its new private sector oriented mining development strategies. One of the major components of the US $13.9 million five-year project was to improve the economic, social and environmental performance of the artisanal mining in order to encourage and expand private investment in the mining sector. Although the project resulted in the country's first mining environmental legal and regulatory framework, it has not



500

addressed itself fully to the negative environmental impacts resulting from artisanal mining activities. The European Union in collaboration with the Government of Zimbabwe has embarked on a US $38.7 million project part of which will be spent on development and control of the small-scale mining sector. Although there are similar programmes in other countries, most do not address environmental problems of a global nature.

UNIDO’S RELEVANT EXPERIENCE AND POSITION REGARDING SUSTAINABILITY OF SMALL-SCALE MINING OPERATIONS

Over the years, UNIDO has gained a lot of experience in dealing with artisanal related problems especially in developing countries. In 1995, UNIDO initiated a programme named “High Impact Programme” with the main theme being to “Introduce New Technologies for the Abatement of Global Mercury Pollution”. Following the launch of this programme, an international workshop was conducted in November 1995, in Jakarta, Indonesia on “Ecologically Sustainable Gold Mining and Processing” and it attracted 41 participants from 14 countries. Based on the recommendations of the workshop and with support from the donor community and host Governments, UNIDO initiated programmes in a number of countries, e.g., Cameroon, Ghana, Philippines, and Tanzania, aimed at assessing the potential for the introduction of new technologies for the abatement of mercury pollution. These programmes, some of which are ongoing, have enabled UNIDO to gain experience and appreciation of the magnitude of the mercury pollution problems, project co-ordination and establishment of working relationships with Governments and local institutions. In addition, during the preparatory phase of this GEF project, UNIDO conducted preliminary investigations in the six countries participating in order to assess the intensity of the artisanal mining activities and



501

their impacts on the International Waterbodies. Review of previous related studies, identification of the “hot spots” areas (rivers and waterbodies) and estimation of levels of pollution resulting from the application of mercury around these areas, were carried out. Apart from assessing the most affected International Waterbodies, barriers limiting the introduction of cleaner technologies were identified in each of the participating countries.

CURRENT OPTIONS FOR DEVELOPING SUSTAINABLE ARTISANAL MINING

The barriers limiting artisanal miners from adopting sustainable and cleaner technology result from the fact that both the miners and the relevant Governments find themselves in negative circles of cause and effect. The application of poor technology leads to low productivity that in turn results in low revenue earnings and hence inability to invest in appropriate technology, it traps miners in crude and inefficient working methods and hence results in severe negative impacts to the environment, health and safety. On the other hand, the institutional weaknesses that lead to inability to enforce the existing legislation results in illegal operations, poor environmental, health and safety standards and loss of the badly needed fiscal revenues. The loss of fiscal revenues makes the authorities unable to perform their regulatory functions and hence perpetuates uncontrolled artisanal mining. In order to develop artisanal mining into sustainable and environmentally acceptable activities, both negative circles must be broken.

In view of the difficulties facing both miners and the governing authorities, the increase in knowledge and awareness and the introduction of efficient and cleaner technologies are at present the best option for developing environmentally acceptable activities. Prior to such intervention measures, the baseline data regarding environmental, technological and socio-economic issues, should be



502

established. Both training and awareness campaigns should be developed through involvement of miners and their organizations in order to enhance their acceptability. Such programmes should provide special considerations for women whose direct entry into artisanal mining activities is often limited by socio-cultural issues and the strenuous nature of the activities.

Since there is medical evidence that women and the unborn are especially vulnerable to mercury, it is regarded as indispensable to give priority to women miners during training and awareness campaign programmes so that the majority of them can adopt cleaner technology. Demonstration of efficient and cleaner technologies should be conducted in selected demonstration sites so as to enable miners appreciate the monetary and non-monetary benefits. Assistance should be provided to Governments to enable them develop policies and legislation that would lead to implementable standards. Development of enforcement programmes and building capacity to enable local institutions to carry out continuous monitoring, is essential for promotion of environmentally acceptable artisanal gold extraction activities.

IMPORTANCE OF THE GEF INTERVENTION

It is now widely accepted that the problems associated with artisanal mining in developing countries are similar and require integrated solutions and partnership between different players. The problems relate to protection and effective resources utilization, to general environmental conditions in areas surrounding the mines and in remote areas receiving mine waste and contaminants and to safe working and health conditions of miners. Whereas most attempts indicate appreciation of the extent of the negative environmental impacts resulting from these activities, no single programme within the six countries has addressed itself to the effects of these impacts on International Waterbodies.



503

The GEF intervention will show, through the establishment of the envisioned demonstration projects, how the current uncontrolled artisanal mining activities can be transformed into more organized, environmentally acceptable and sustainable operations. In each of the participating countries, the programme will aim at assessing the extent of mercury pollution, raising awareness and increasing knowledge of the miners and the public, introducing and demonstrating the application of cleaner and efficient technology, assisting the Government to put in place practical and implementable policies and legislation and building capacity to ensure continuous monitoring of mercury pollution on the surrounding waterbodies.

PROJECT STRATEGY

LONG-TERM OBJECTIVE

The long-term objective of the GEF project is to protect international waters from mercury pollution emanating from small-scale mining operations. Measures and methods to reduce this pollution are demonstrated in a pilot suite of developing countries located in several key transboundary river/lake basins. The main tools for reducing the pollution consist in assessing the extent of mercury pollution from current activities, introducing cleaner gold mining and extraction technology that minimize or eliminate mercury releases and developing capacity and regulatory mechanisms that will enable the sector to minimize negative environmental impacts.

BROAD DEVELOPMENT OBJECTIVE

The broad development objectives of the six participating countries is to transform the current artisanal mining activities into organized activities in order to enhance incomes of the participating members of the population,



504

minimize negative environmental impacts and enhance development of the mineral sector and hence the economy. Like in many developing countries, artisanal mining activities are carried out in the six participating countries mainly as a way of dealing with poverty by the rural populations. As a result, the short-term gains envisaged by miners in order to escape from poverty have largely been outweighed by the negative impacts caused by these activities to their environment, health and safety and the neighboring communities. In addressing the negative environmental impacts resulting from these activities, some Governments have initiated programmes to address the issues related to the uncontrolled use of mercury in the recovery of gold. However, since most activities have been operating outside the legal framework, major efforts are still directed towards putting in place legislative and regulatory frameworks upon which artisanal mining activities can be conducted.

GLOBAL ENVIRONMENTAL OBJECTIVE

The global environmental objective is to assist developing countries in creating conditions necessary to minimize mercury pollution and other negative environmental impacts on International Waterbodies resulting from artisanal gold mining and extraction activities. Most artisanal gold mining activities within the participating countries are carried out within basins of major ecological significance and that cross geographical boundaries to many countries, e.g., the basins of the Amazon, River Nile, Lake Victoria, River Zambezi, River Mekong and River Kahayan in Indonesia. As such, the negative environmental impacts on the International Waterbodies within these basins are bound to affect many countries most of which do not even have gold mining activities. The Governments of the participating countries, acting



505

unilaterally are unable to finance the high initial start up costs of dealing with mercury related pollution problems. The GEF project will lead to an assessment of the extent of mercury pollution, increase of knowledge and awareness on environmental issues, introduction and demonstration of the application of efficient and clean technology and provision of assistance to Governments to enable them develop policies and legislation that are practical and enforceable. These efforts will in turn lead to artisanal mining activities that are efficient and environmentally acceptable.

SPECIFIC PROJECT OBJECTIVES

There is general agreement on the need for a globally consistent approach to address the removal of barriers to the introduction of cleaner artisanal gold mining and extraction technologies. Since the issue cannot be addressed at the same time in dozens of countries suffering from the same problem, typical cases for mercury pollution of international waters have been selected.

The following specific project objectives and related activities will be implemented within the participating countries.

Objective 1A: To ensure effective project coordination and support (providing information, communications, professional assistance, programme implementation and evaluation and assessment) through establishment of a UNIDO based Programme Coordination Unit (PCU) and a Global Project Task Force.

Objective 1B: Identification of, and provision of resources for the establishment of the programme management structures in each of the six participating countries and the creation and operation of the basin and country specific project task forces.



506

Objective 2: Identify project demonstration sites and organize training aimed at increasing knowledge and raising awareness of miners, Governments, NGOs and the general public on the environmental and health impacts associated with the current artisanal mining practices and the environmental, health and economic benefits of employing appropriate technology.

Objective 3: Identify hotspots in project demonstration sites, conduct geochemical and toxicological studies and other field investigations in order to assess the extent of environmental (mercury) pollution in surrounding water bodies and devise intervention measures.

Objective 4: Establish a databank comprising of technological requirements relevant to artisanal gold mining and extraction activities through field investigations, interviews with miners, miners' associations and other relevant institutions.

Objective 5: Acquire and demonstrate, within the project demonstration sites, the application of affordable high-efficiency clean technology with improved gold processing methods while avoiding environmental degradation from mercury contamination.

Objective 6: Based on the acquired experience, develop sustainable extraction indicators and hence assist Governments to develop generic and to the extent possible, country specific policies and legislation that will lead to implementable standards on the application of mercury with special attention to minimization of environmental impacts.

Objective 7: Promote the dissemination of the produced project results and identify opportunities that will allow the



507

project to continue beyond the three-year time frame through self-financing and to initiate and conduct a Donor Conference to solicit financing.

CONCLUSION

One of the priority areas identified by GEF under the “international waters focal area” is the degradation of the quality of the transboundary water resources, primarily due to pollution from land-based activities. The negative impacts resulting from artisanal mining, which is a land-based activity, lead to degradation of the selected International Waterbodies resulting to far reaching consequences. The project is also consistent with the GEF Operational Programme #10, which targets projects that “help to demonstrate ways of overcoming barriers to the adoption of best practices, waste minimization strategies and pollution prevention measures that limit contamination of the international waters environment”. The activities aim at removing barriers that inhibit artisanal miners from applying cleaner and efficient technology. Apart from removing the barriers the project is demonstrating the application of cleaner technology and conduct training to the miners in order to enhance the application of cleaner technology and thus reduce pollution and minimize waste resulting from the currently applied poor technology. Supplementing ongoing activities of the respective countries in developing the artisanal activities to the level of an organized small-scale gold mining sector, the project contributes to a substantial incremental progress regarding the reduction of mercury pollution.

V. CVRD Vale do Rio Doce Company



511

VALE DO RIO DOCE COMPANY– CVRD

Founded on June 1, 1942 as state company, and privatized on May 7, 1997, CVRD is the largest diversified mining company in the Americas, with market capitalization of approximately US$ 11 billion. Composed by a holding company and by more than 50 subsidiaries, CVRD has its shares negotiated in reais (Bolsa de Valores de São Paulo – BOVESPA), in US dollars (New York Stock Exchange – NYSE) and in euros (Madrid Stock Exchange – LATIBEX), being constituted as the most exporting Brazilian company. In 2001, international sales reached a volume of US$ 3.3 billion.

Companhia Vale do Rio Doce is the biggest producing and exporting company of iron ore and pellets in the world and one of the main global producers of manganese and ferro-alloy. It also produces bauxite, gold, kaolin, potash, alumina and aluminum. CVRD is one of the main cargo transportation companies in Brazil, where it holds and operates a series of railroads and ports. It has stakes in two hydroelectric power plants under operation and in other seven under construction. It also takes part in steel and fertilizers producing companies in Brazil and abroad.



512

ENVIRONMENTAL QUALITY AT CVRD

CVRD considers the environmental quality of its products and services a fundamental factor to its competitiveness.

“Everyone has the right to an ecologically balanced environment, a fundamental gift and essential to a healthy quality of life, being a duty of the Public Authorities and the community to defend the environment and preserve it for both present and future generations”.

Federal Constitution of Brazil

CVRD has a clear perception of the large influence that environmental issues have on the market. It’s Environmental Policy and management directives express the Company’s commitment to environmental quality. Full conformity to the law is the absolute minimum requirement to be observed by all its operational units,



513

which also comply with the Company’s internal norms and standards, which take a preventive and proactive approach.

At the beginning of the nineties, with the ECO 92, in Rio de Janeiro, environmental issues began to be dealt with in the economic arena, influencing companies strategic decisions and calling for more wide-reaching and rigorous government action, in response to the growing demands of society.

In line with these changes, in 1994 CVRD introduced its Environmental Audit Program, a pioneering move in Brazil, which involved a complete environmental diagnosis of its operations and allowed for better planning of preventive and corrective action. As a result, the First CVRD Environmental Program 1994-2000 was formulated, covering over seventy projects, with investment of some US$ 110 million.

CVRD placed environmental aspects alongside other management issues with the introduction of its System of Environmental Quality Management – SGQA, based on the ISO 14001 standard specifications. The first two ISO 14001 certificates obtained by CVRD (Mineral Development Center – Minas Gerais State - 04/1997 and Iron Ore and Manganese Mines at Carajás – Pará State - 10/1998) were a world-first in their field. CARAJÁS IRON PROJECT

CVRD’s Carajás Iron Project is globally recognized for its pioneering initiatives in the consideration of environmental variables since its initial conception. As neither specific laws nor standards existed at that time, CVRD organized the Environmental Study and Advice Group – GEAMAM, made up of well known Brazilian scientists, which made more than 200 recommendations, all of them implemented by CVRD.



514

Preservation of the areas surrounding the Carajás mines

Since 1987, IBAMA (Brazilian Institute of Environment) and CVRD have maintained a joint agreement to protect the Conservation Units located around the Carajás Mineral Region. Thanks to the introduction of the Carajás Iron Project, and the consequent creation of conservation units, a continuous area was designated as one of the largest and best preserved areas of primary rain forest in the south of the state of Pará. This area, together with the indigenous land of the Xikrin do Cateté, totaling more than 1.1 million hectares.



515

CVRD AND INDIGENOUS COMMUNITIES IN THE CARAJÁS REGION

The Brazilian Federal Constitution confers special rights on indigenous communities with the aim of guaranteeing their integrity. The responsibility for providing assistance to the Indian communities lies with the Federal Union, through the National Indian Foundation.

Although most of the indigenous communities located within the area of influence of the Carajás Iron Project have close relationships with farming and urban populations – some for more than a century, since the start of the Carajás Iron Project to the end of 2001, CVRD had spent US$ 25 million in support of projects for indigenous communities.

With CVRD’s support, 2.8 million hectares of 20 Indigenous Territories were demarcated by the Brazilian government; education, hygiene, health and environmental preservation programs were implemented; local infrastructure of villages, building dwellings, sanitary installations, first-aid posts, schools, communication systems and roads has been implemented and improved. The indigenous communities self-sufficiency, though the promotion of agricultural and forest management projects, is also an important program supported by CVRD.

The Xikrin do Cateté community is the closest one to the Carajás mines, the reason why it is the object of special attention on the part of CVRD. One of the most significant indicators of the success of this partnership is the reversion in the decreasing population curve: 1982 there were a total of 397 indians in this community, while today there are more than 700.



516

ENVIRONMENTAL QUALITY OF INDUSTRIAL OPERATIONS

CVRD invests more than US$30 million per year is the continuous improvement of the environmental performance of its industrial activities. In all the Company’s installations, atmospheric emissions, effluent outflows, waste generation, treatment and disposal are monitored and controlled, using the most appropriate technology for the activity or process of each operational unit. Only in the Tubarão Port and Industrial Complex, in Vitória, CVRD has invested more than US$ 90 million in the control of particle emissions, achieving a reduction of around 75%.

Spraying in the ways to the mine – Carajás, Pará State



517

REHABILITATION OF DEGRADED AREAS BY MINING ACTIVITIES

CVRD has developed technologies for the rehabilitation of degraded lands by mining activities. On it’s Natural Reserve of Linhares (22.000 hectares of primary Atlantic Forest, opened to the public in 2001), CVRD is able to reproduce more than 800 tropical species. Only in 2001, six million trees were produced by CVRD’s nurseries.

In 2001, the Company began the rehabilitation of seven mines already closed, a total of 436 hectares. This involves reprofiling of slopes, hydrogeology, revegetation and monitoring. The revegetation projects take into account the diversity of the ecossystems, giving priority to native species so that the new vegetation blends in naturally. FORESTS IN INDUSTRIAL AREAS

In the Tubarão Industrial Complex, enrichment of covering vegetation on 411 hectares of land is being carried out, with the planting of one million seedlings over three years, adding to more than five million trees already planted. The vegetation coverage in the Tubarão Complex covers about 53% of the entire industrial area and is the largest forest in the municipality of Vitória. Species are being planted that act in a similar fashion to the green belts around the stock yards and the areas where bulk solids are handled, improving to the existing function of containing airborne dust clouds and flying particles.

In Itabira Mining Complex, CVRD carries out the enrichment of the forests in order to form natural tree barriers between the mines and the urban areas.



518

SOCIAL RESPONSABILITY

The Vale do Rio Doce Foundation - FVRD, CVRD’s social action instrument, has as its central purpose the improvement of the quality of life in the communities. Since 1998, FVRD has carried out a number of projects that seek to promote regional development, in partnership with sates, municipalities, private-sector companies and civil organizations. Its implements and supports initiatives that are focused on education, social development and culture in regions where CVRD operates. During 2001, CVRD invested approximately US$10 million in social programs, which have benefited thousands of citizens.

The Escola que Vale (school that counts) program has benefiting more than 15.000 people, among pupils, teachers and professionals at 33 schools. In 2001 this program won the ECO 2001 Education Prize, awarded by the American Chamber of Commerce in São Paulo.

The Citizenship Train offers to the communities located at the influence area of Carajás Railroad the possibility of obtaining basic documents and provides access to health facilities. Besides medical and dental treatment, it promotes illness prevention, In 2001, the Citizenship Train had 118,684 visits.

Environmental education, music teaching, literacy, sports, information technology (installation of computers in 300 schools), are also social programs developed by CVRD



519

Vale on Information Technology

CVRD is a global player, recognized for its competence in all its business areas. The inclusion of the environmental and social factors as being a key element in its ability to compete, as well as increasing its market value, is a typical stance of a modern company, committed to satisfying its shareholders, clients, the communities in which it operates and other interested parties.

To continue to benefit from being in the spotlight as a benchmark company, both domestically and internationally, CVRD has a consolidated environmental culture and social action, with strategies clearly defined by the Board, applying professional management to environmental issues and to its relations with the communities.



520

CYTED XIII http://www.cetem.gov.br/cyted-xiii

Coordinadores Internacionales Roberto C. Villas-Bôas (desde 1998) Lelio Fellows Filho (1986 a 1996) Subprogramas por Áreas Temáticas APOYO A POLÍTICAS DE CIENCIA Y TECNOLOGÍA I. METODOLOGIA EN CIENCIA Y TECNOLOGIA Dr. Jesús Blanco Álvarez XVI. GESTION DE LA INVESTIGACION Y EL DESARROLLO TECNOLOGICO Dra. María Carlota de Souza Paula MEDIO AMBIENTE XII. DIVERSIDAD BIOLÓGICA Dr. Peter Mann de Toledo XV. CORROSION E IMPACTO AMBIENTAL SOBRE MATERIALES Dra. Mª. Carmen Andrade Perdrix XVII. APROVECHAMIENTO Y GESTIÓN DE RECURSOS HÍDRICOS Dra. Alicia Fernández Cirelli XVIII. TECNOLOGÍAS DE PREVISIÓN Y EVALUACIÓN DE DESASTRES NATURALES Dr. Hugo Alfonso Yepes Arostegui RECURSOS ENERGÉTICOS IV. BIOMASA COMO FUENTE DE PRODUCTOS QUIMICOS Y

ENERGIA Dr. Roberto E. Cunningham VI. NUEVAS FUENTES Y CONSERVACION DE LA ENERGIA (EXCLUIDA BIOMASA) Dr. Luis Roberto Saravia (VI)



521

TECNOLOGÍA DE LA INFORMACIÓN Y DE LAS COMUNICACIONES

VII. ELECTRONICA E INFORMATICA APLICADAS Dr Ricardo Baeza Yates (VII) IX. MICROELECTRONICA Dr. Jordi Aguiló TECNOLOGÍA DE LA SALUD Y DE LA ALIMENTACIÓN II. ACUICULTURA Dr. Manuel M. Murillo (II) III. BIOTECNOLOGIA Dr. Mitermayer Galvao dos Reis X. QUIMICA FINA FARMACEUTICA Dr. Mahabir P. Gupta XI. TRATAMIENTO Y CONSERVACION DE ALIMENTOS Dra. Jenny Ruales Nájera (XI) XIX. TECNOLOGÍAS AGROPECUARIAS Dr. José Ramón Díaz Álvarez TECNOLOGÍA DE LOS MATERIALES V. CATALISIS Y ADSORBENTES Dr. Paulino Andreu VIII. TECNOLOGIA DE MATERIALES Dra. Osmara Ortíz Núñez XIII. TECNOLOGIA MINERAL Dr. Roberto Cerrini Villas Bôas XIV. TECNOLOGIA DE VIVIENDAS DE INTERES SOCIAL Dr. Edin de Jesús Martínez Ortega (XIV)



522

Diretoria Executiva do CNPq Esper Abrão Cavalheiro Presidente Alice Rangel de Paiva Abreu Vice-Presidente Lélio Fellows Filho Chefe de Gabinete da Presidência Albanita Viana de Oliveira Diretoria de Programa Témáticos e Setoriais Celso Pinto de Melo Diretoria de Programas Horizontais e Instrumentais Gerson Galvão Diretoria de Administração Maria Claudia Miranda Diogo Assessoria de Cooperação Internacional



523

http://www.gefweb.org

http://www.unido.org http://www.undp.org

http://www.cetem.gov.br

www.cvrd.com.br

http://www.cyted.org http://www.cetem.gov.br/cyted-XIII



524

Other books of interest: Zero Emission Roberto C. Villas Bôas & James R. Kahn, Eds IATAFI & CETEM Publishers Technological Challenges Posed by Sustainable Development Roberto C. Villas Bôas & Lelio Fellows Filho , Eds. CYTED & IMAAC Publishers Mining Closure in Iberoamerica Roberto C. Villas-Bôas & Maria Laura Barreto, Eds. CYTED & IMAAC Publishers Quarries Schools in Iberoamerica Roberto C. Villas Bôas & Gildo Sá , Eds. CYTED & CNPq Publishers Mining Heritage and Mine Closure in Iberoamerica Roberto C. Villas Bôas & Arsenio Gonzalez-Martinez, Eds. CYTED & SEDPGyM , CNPq Publishers Land Use in Mining Roberto C. Villas-Bôas & Roberto Page , Eds. CYTED, SEGEMAR & CNPq Publishers Mercury in the Tapajos Basin Roberto C. Villas-Bôas , Christian Beinhoff & Alberto Rogério da Silva , Eds. UNIDO & GEF Publishers