Documente Academic
Documente Profesional
Documente Cultură
DEPARTMENT OF GEOGRAPHY
BY
List of Figures iv
List of Tables v
Introduction 1
Mining Issues
Mining Issues
United States
Canada
Philippines
Australia
Nauru
Brazil
Economic Development
Environment Issues
Conflict of Interest
Conclusion
Bibliography
LIST OF FIGURES
Figure Page
1. North America 1
2. The areas included in the Anglo-American Region: United States and Canada 2
3. U.S. Mineral Commodities Summary 2017
LIST OF TABLES
Table Page
North America is the third largest of the worlds continents. It covers a total area of
9,355,000 square miles (24,230,000 square km) and spans over 5,000 miles (8,000 km) between
the North Pole and Equator. Majority of its landmasses are situated between the Arctic Circle
and the Tropic of Cancer, occupying the entire northern portion of the landmass generally
referred to as the New World, the Western Hemisphere, or simply the Americas.1
Mainland North America is shaped like a rough triangle with a wide base north of
Canada and a narrow apex by the Colombia-Panama border, where the Isthmus of Panama meets
Figure 1: North America Source: North America: Continent. Digital Image. Encyclopdia Britannica, Inc.
Accessed April 10, 2017. https://www.britannica.com/place/North-America#ref469324.
1
Hoffman et al. 2017
The continent also contains several islands including Greenland (the worlds largest
island) and other offshore island groups such as the Arctic Archipelago, the West Indies, Haida
Gwaii (formerly the Queen Charlotte Islands), and the Aleutian Islands.
Its general topography consists of broad lowland plains and long mountainous zones that
form parallels in the east and west.2 The lowlands, though varied in origin, appear similar to the
naked eye. The mountainous regions, on the other hand, exhibit noticeable differences due to the
Figure 2: The areas included in the Anglo-American Region: United States and Canada
Source: North America: Continent. Digital Image. Encyclopdia Britannica, Inc. Accessed March 29, 2017.
https://www.britannica.com/place/North-America.html.
North America owes much of its economic development to its natural resources,
particularly oil, gold, and a variety of other precious metals and minerals. These resources
provided Canada and the United States with the necessary materials to produce energy, build
2
The New Encyclopaedia Britannica 1992
infrastructure, and support economic growth, especially in the last 100 years.3 Moreover, these
played a major role in shaping the economy, society, politics, and culture of the region.
Because majority of North America is landlocked and located in the middle latitudes, its
territories have varying climates and vegetation. The larger the mid latitude land mass, the
greater the annual temperature range at interior locations. The Northeast is drier than the
depending on location. In the East, climate is determined primarily by insolation and latitude,
North America contains some of the oldest rocks on Earth. Its geologic structure is built
around a stable platform of Precambrian rock called the Canadian (Laurentian) Shield. The
Canadian Shield contains the Appalachian Mountains on the southeast and the younger and taller
Cordilleras on the west. The latter occupies nearly a third of the continents land area. In between
these two mountain belts are the generally flat regions of the Great Plains in the west and the
3
Todd, D. "REGIONAL LANDSCAPES OF THE UNITED-STATES AND CANADA, -BIRDSALL, SS,
FLORIN, JW." (1982): 135-136.
4
Scott, SL. "REGIONAL LANDSCAPES OF THE UNITED-STATES AND CANADA, -BIRDSALL, SS,
FLORIN, JW." (1981): 195-196.
5
Hoffman et al. 2017
The Anglo-American Cultural Region is a cultural entity of North America that traces its
roots to Northern Europe. These comprise most of the United States and Canada, whose primary
language is English and whose customs and folkways originate from Northern Europe.6 The
The term also designates a geographical area on the North American continent distinct
from Latin, Spanish, or Ibero-America (comprising Middle and South America), which have
strong Hispanic traditions and heritage. The term Anglo has come to signify a white,
While the Anglo-American region (with the exception of natives) is, in many respects,
homogenous, its inhabitants originate from different regions of Northern Europe.7 Moreover,
because majority of the population are of foreign origin, Anglo-America has been aptly called a
land of immigrants.
Mining offers millions of jobs and creates billions of dollars of revenue.8 North America has
been a top-tier provider and exporter of coal, which is utilized in energy production; bauxite,
which is utilized for manufacturing aluminum; iron and copper, which are staple materials for
construction; and nickel, which is utilized to create steel. The continent is also rich in gold and
silver.
6
Anglo-America | Cultural Region, North America
7
Todd, D. "REGIONAL LANDSCAPES OF THE UNITED-STATES AND CANADA, -BIRDSALL, SS,
FLORIN, JW." (1982): 135-136
8
Society and Society 2017
Mining is an indispensable part of the North American economy, and it has been so for
hundreds of years.9 For example, gold mining play a role in the development in the U.S. states of
California and Alaska in the 19th century. Coal has remained a major industry for the U.S., and
is often associated with states near the Appalachians. Coal is a type of sedimentary rock
discovered deep underground, stemming from the remains of ancient plants. When burned, coal
is a superb source of energy and is prevalently used as fuel for electricity-generating power
Mining Issues
Mining is a dangerous industry. Coal easily combusts. It catches fire and explodes easily.
When breathed for long periods of time, coal dust is toxic. Mines are susceptible to collapse.10
Mining accidents have influence companies and governments to pursue regulations that ensure
greater safety for miners. In 2006, as an example, a coal mine in Sago, West Virginia, exploded
that left thirteen miners trapped hundreds of meters below ground. Only one miner survived.11
The so-called Sago mine disaster prompted calls for greater communication and safety
Coal mining can also result to a negative impact on the environment. Mountaintop
removal mining (MTR) has erased entire mountain ecosystems in the Appalachians. Because of
this type of mining, coal waste products being stored near public land. Improper storage of these
9
Murray, Crowell. The iron ores of Lake Superior, containing some facts of interest relating to mining and
shipping of the ore and location of principal mines, with original maps of the ranges.
10.
n.d. The Bonanza Trail. Ghost towns and mining camps of the West
11
Charlton, William Hurst, 1875-. 1912. "American mine accounting: methods and forms employed by
leading mining companies, by W. H. Charlton."
waste products has put not only ecosystems in danger, but also threatened human health. In 2008,
a massive spill resulted in 1.1 billion gallons of coal slurry being released near Kingston,
Tennessee. The spill resulted to homes being destroyed and contaminated Emory and Clinch
The Philippines had a long history of artisanal mining. It was not until the American
colonial rule in the first half of the 20th century the country experienced a modern mining sector.
In 1936, Commonwealth Act 137 setup a mineral tenure system.12 The government is then
imbued with exclusive ownership of mineral resources that it can grant private large-scale
mining concessions. Mining companies eventually had the upper hand over artisanal miners that
they became the main gold buyers, principal employers, and sources of credit and patronage. The
mining boom came to a top at the start of the second World War. In the decades that followed the
war, there was a dramatic increase in metal mining that led to the foundation of mining giants
such as Philex and Atlas which sprouted mining operations throughout the country during the
1950s and 1960s.13 The 1970s became the busiest for the mining industry as whole.
The influence of high gold prices led to the reopening of old dormant gold mines. By the
1980s a mix of factors triggered a major crisis in the mining sector. The global crisis of
1970s-1980s and the associated drop in mineral prices has left the capital-intensive large-scale
12
Verbrugge, Boris. 2015. Undermining the State? Informal Mining and Trajectories of State Formation in
Eastern Mindanao, Philippines. Critical Asian Studies 47, no. 2: 177-199.
13
Verbrugge, B. (1,2). 2015. The Economic Logic of Persistent Informality: Artisanal and Small-Scale
Mining in the Southern Philippines. Development And Change 46, no. 5: 1023-1046.
Mining Issues
The severe debt crisis pressured the Marcos regime, with civil unrest, and insurgency
particularly in southern regions. Many creditors had lost faith on the country that led to an
increase in capital flight. The current government then is too busy enriching themselves with
crony businesses. In 1974, President Marcos promulgated Presidential Decree 462, which sought
cut neocolonial ties with the USA by placing a 40 per cent constitutional bar on foreign owners
which led to the shrinking of the number of foreign financial and human capital. The
Filipinization of the mining sector overlapped with a number of one-of- a-kind arrangements,
on which the Marcos regime granted loans to guarantees to selected local mining projects which
later on defaulted in their obligations. In 1981, the government increased mining taxes which
showcased how heavily regulated the mining sector is. To sum it up, an increasing number of
companies fell into the hands of corruption, mismanagement, and rising production cost.
Sustainability when it comes to minerals and its use, can be a precarious concept to
explore. Some would argue that there is no such thing as sustainable development once the
conversation diverts to the topic of mining minerals. To better concretize this, a journal entry
written by McLellan et al. gives explicit details in the mineral industry to further showcase the
different researches being conducted to achieve sustainable development. This journal entry
claims that sustainable development is a factor actively sought out by the mineral and mining
industry. It emphasizes that the concept behind how sustainable the mineral and metal industry
can be, lies not in the operation itself, but rather, in the design of the whole operation, stating that
sustainability. Instead, opportunities for impact reduction must be sought along and between
production and recycling chains.14 Considering this, we find that efficient operations do not
always lead to sustainable development, due to the disparity of the demand and the supply of
metal use. This is why their team finds that dwelling and blaming the operation itself must be
reviewed to be critical, due to the fact that sustainability could have a huge number of factors.15
surmised from this fact is that, people view the road to sustainability in the mineral industry with
different approaches. McLellan has observed this phenomenon and narrowed it down into two
viewpoints, in which he calls it as the Fixed stock and Opportunity Cost Paradigm. In this
observation he uses ecologists and mineral economists as two individuals that view sustainability
in a different way. In this fixed stock paradigm, McLellan explains that ecologists view minerals
irreplaceable resource. This is why he sees the actions of ecologists in order to maintain
sustainability as more inclined to limiting the extraction of these minerals and the call to loop
these minerals, or to recycle old products that use these minerals in order to lessen the demand to
extract these minerals. Meanwhile, mineral ecologists view the road to sustainability towards
these minerals as an Opportunity Cost, believing that cultivating these minerals would create a
scarcity, thus increasing the price of these minerals. Once this phenomenon happens, we can see
14
McLellan, B.C. and G.D. Corder and D. Giurco and S. Green, "Incorporating Sustainable development
in the design of mineral processing operations- Review and analysis of current approaches", Journal of
Cleaner Production 17 (2009): 1414.
15
Ibid
two predicted outcomes. First is that this would catalyze a improvement in design of technology
in cultivating minerals, which would allow the cultivation of lower grade ores, and so a lower
demand for the original mineral. Second is or of using other minerals as a substitute for the
original mineral due to its steep price, thus maintaining an ecological balance.16
This creates an interesting dilemma to some people, that view sustainability towards the
mineral industry as simply limiting the production or exploitation of these minerals. And so
going back to what we've mentioned before the design phase of an operation is extremely crucial
to maintain sustainability in an operation. The term DfS (design for sustainability) was coined
for this purpose, to serve as a background and outline once a certain operation is planning to
It could be defined as: design that takes into account social, economic and environmental
impacts and constraints and aims to produce the most benefit for society, whilst minimising
negative impacts and not violating any of the critical thresholds or the carrying capacity of the
society and environment, across the life cycle of the project and the product... DfS is an
important opportunity for improving SD outcomes over the life of the operation. In practice,
activities which could fall under the DfS definition have been viewed as a secondary element of
operations design, with the main focus being typically on how to design an operation that will
effectively extract the target minerals at the lowest possible capital cost and lowest risk.17
Although these are all important components in order to contribute to the reality of
sustainable development, we have to take into account government policies that in one way or
another affect the implementation of these. Government policies are extremely important in
16
Ibid 1415
17
Ibid 1416
regulating and maintaining these operations for it to be as sustainable as possible. It has been
widely accepted by economists worldwide that using the environment as a depository of many
types of wastes is beyond the control of the market system and therefore would need government
intervention.18 In the mineral industry, various types of wastes are being deposited each day to
account for their operations; Creating a standard of operation within a given industry would help
in the goal of being a sustainable operation, which is where government policy comes in.
However stringent the policy though, without a proper implementation body, these policies
would be for nought. An effect of the lack of a effective implementation force would result to a
market imperfection if the resource market, or the company heading the operation, does not
proceed from the given model the government has adhered to. This in turn could lead a weakness
to the market if, as Victor mentions the environmental effects of resource extraction are not
We can use the UK as an example on how the government can affect the cause for
sustainable development. The strategy adopted by the UK for the advancement of sustainable
development, is called the ecological modernization agenda. It strategizes a greener market using
efficiency and to try to separate economic growth from environmental degradation. Their
environment.20 Their global mark was affected by a supposed market transformation, that is part
18
Victor, Peter. "Indicators of Sustainable Development: Some Lessons From Capital Theory", Ecological
Economics (1991): 198.
19
Ibid 204
20
Seyfang, Gill and Adrian Smith, "Grassroots Innovations for Sustainable Development: Towards a New
Research and Policy Agenda", Environmental politics Volume 16, no. 4 (2007): 585-586.
of the ecological modernisation agenda. It has promoted sustainable consumption through the
innovation of sustainable choices for products and services thus encouraging other markets.21
Although sustainable development in the mineral industry can seem like it is an inclosed
situation, it actually affects a variety of people. It is a huge challenge in the mineral industry to
find ways to have a sustainable operation and so people with science backgrounds often get
recruited and hired, to help in technological advancement or strategies that could help make
mining company's operations more sustainable. Due to the nature of the mining industry, no
matter how sustainable they try to let their operations be, still causes some discomfort to the
residents living nearby the operation due to the supposed environmental degradation that mining
operations usually result in. Further, the employees of these operations must be given due
consideration when talking about the people being affected and that can affect sustainable
development in this industry. Providing mining employees with safe working conditions is a
complex situation for the mining operators which depends on how grand a scale the mining
operation is. The larger the scale, the larger the ecological footprint, thus making it increasingly
harder to achieve sustainable development in the given operation.22 Gaining even more
employees, could jeopardize their working conditions due to the sheer amount of them working
at the same time, making it more increasingly difficult for mining operators to ensure their
safety.
The complexity of the problems for the sustainable development of mining and the
resulting diversity on a global scale point at the need for the continuous exchange of experience
in the field of knowledge, methods, technologies and other solutions. They should provide a
Ibid 586
21
22
Dubinski, Jozef. "Sustainable Development of Mining Mineral Resources", Journal of Sustainable
Mining Volume 12, no.1 (2013): 5.
sustainable and socially acceptable development and continued operation of mining, invariably
In order to achieve the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda
for Sustainable Development, the United States entered into strategic partnerships with 193
countries and various communities around the world. Canada and the Philippines are among the
193 nations committed to end poverty and make transformative strides toward a future of shared
progress.24 Aside from being a part of the 2030 Agenda, each countrys government has also
UNITED STATES
The United States is the worlds largest user of mineral resources. A national report from
the United Nations states that the U.S total domestic mining and waste removal for nonfuel
mineral materials production amounted to 5.9 billion metric tons (Gt) in 2007. These materials
included 4.5 Gt of crude ore mined or quarried and 1.4 Gt of mine ore and waste from
development operations. Overall, 97% of nonfuel mineral materials was mined and quarried
using surface methods, and 3% was mined underground. Most non-fuel mining activities took
place in: Nevada, Arizona, Florida, Minnesota, Utah, California, Texas, Michigan,
Pennsylvania, and Georgia. These 10 States accounted for 63% of the tonnage removed in the
Ibid
23
24
United Nations. Transforming our world: the 2030 Agenda for Sustainable Development. UN.org,
2015. https://sustainabledevelopment.un.org/post2015/transformingourworld (accessed April 15, 2017)
production of nonfuel mineral materials mined in the United States. U.S. coal production in 2008
(most current year final statistics are available) reached a record level of 1,171.5 million short
tons, with 389.8 million short tons from the Appalachia Region, 146.7 million short tons from the
Interior Region, and 633.6 million short tons from the Western Region. In 2008, U.S. coal
25
consumption declined in every coal-consuming sector.
The mining sector of the United States has increased its focus on the sustainable mining
of its mineral resources in the 21st century because of the countrys large and active mining
industry. American institutions, public and private, work together to find innovative ways to
ensure that the extraction and processing of mineral resources are sustainable and have negligible
Mining activities in the U.S. are regulated by various entities with states playing a key
role in oversight. The following institutions mentioned in the report all play a role in influencing
the outcomes caused by the mining sites they own or are under their jurisdiction: U.S. Army
(BLM), National Park Service (NPS), Office of Surface Mining (OSM), U.S. Geological Survey
(USGS); U.S. Agricultures Forest Service (USFS); U.S. Department of Labors (DOL) Mine
Safety and Health Administration (MSHA); Environmental Protection Agencys (EPA) Office of
development principles and have pledged to conduct their activities in a way that recognizes the
http://www.un.org/esa/dsd/dsd_aofw_ni/ni_pdfs/NationalReports/usa/mining.pdf
26
Ibid
needs and necessities of the society and the desire to have a healthy environment, economic
27
growth, national security.
CANADA
Canada remains as one of the top producers and the leading exporter of minerals and
metals in the world. The economy of Canada is being continuously affected by its mineral and
metal industries. More than 340,000 Canadians have jobs because of these industries where 150
communities in both the rural and northern regions of Canada are dependent on. Minerals and
metals are significantly important to Canada and are important to federal policies and platforms
28
because of their considerable contribution to Canadas social and economic security.
so the Canadian Government proposed a policy to address this challenge --- the Minerals and
Metals Policy (MMP). In the Mining Agenda section of the policy, the Government pledged to
formulate a plan for the sustainable development of the Canadian minerals and metals sector.
The MMP represents the first attempt by the Canadian Government to integrate the notion of
29
sustainable development into an all-inclusive policy document in the area of natural resources.
Below are some of the given examples on how the policy can serve as a guide to federal
decisions on minerals and metals with regards to sustainable development as stated in the official
30
publication:
27
Ibid
28
National Resources Canada. The Minerals and Metals Policy of the Government of Canada.
Partnerships for Sustainable Development. No. M37-37 (1996): iii
29
Ibid
30
Ibid iii-iv
It sets parameters for federal decisions on minerals and metals, including a recognition
of the need for sound science, the importance of global markets, and the benefits of both
investment for Canada and notes the importance of a fiscal and tax environment that
recognizes the special challenges of the industry and its global context; and
It enunciates the Governments support of the principle of safe use of minerals and
metals and engages the Government to advance this principle both domestically and
internationally.
Environmental, social, and economic considerations must be taken into account in the
decision making process in order to achieve sustainable development. The MMP presents a
Government meet this challenge. It includes: a responsive public policy framework; the role of
the market mechanism; the role of regulation; the role of non-regulatory approaches; the
PHILIPPINES
The Philippines is gifted with plentiful amounts of both metallic and nonmetallic mineral
resources. Currently, gold, copper, iron, chromite and nickel are the most sought after metallic
31
Ibid v
commodities. Among our non-metallic resources, sand and gravel, limestone, marble, clay and
In 2010, the Philippines became the 3rd biggest producer of nickel ore, behind Russia and
Indonesia, hurdling over Australia and Canada. The Philippines produced about 11% of the total
32
world production of nickel, up from 10% of world production in 2009.
Section 3 of the Executive Order No. 79 series of 2012 ensures the compliance of the
members of the mining industry with environmental laws, standards, rules, and regulations. The
section accounts for the management and utilization of minerals toward sustainable development.
multi-stakeholder team headed by the DENR, which will be based on guidelines and parameters
stated in the specific mining contracts and agreements or applicable rules and regulations such as
33
the Mining Act of 1995 and the Labor Code.
The mining industry in the Philippines has recovered due to various movements and
revitalization of responsible mining. The government also recognizes the contribution, both
present and future, of the industry to the economy of the Country by attracting investments
Responsible mining is one step made by the government to achieve the sustainability of
compliance among companies, and giving of due recognition to local autonomy and indigenous
peoples rights.
Kuck, Peter. Nickel. U.S. Geological Survey Mineral Commodity Summaries. (2012): 108-109
32
33
Official Gazette of the Philippines. Executive Order No. 79, s. 2012. GOV.PH,
http://www.gov.ph/2012/07/06/executive-order-no-79-s-2012 (accessed April 17, 2017)
Issues Of Sustainable Development In Mineral Resources
degradations (i.e. pollution and destruction of water bodies), outright violation of ancestral land
of the rights of the mine workers, and other cultural disturbances. Many of these issues were
results of the failure of many small and large-scale mining companies to follow the strict,
34
globally-defined principles for responsible mining.
and policies and the absence of financing strategy for environment and natural resources also
34
National Economic and Development Authority. Conservation, Protection & Rehabilitation of the Environment
& Natural Resources. Philippine Development Plan 2011-2016 Ch.10 (n.d.) 309
35
Ibid 321-322
OTHER COUNTRIES AND THEIR USAGE OF NON-RENEWABLE RESOURCES
Other countries have same practices and others have different ways of using and utilizing
their non-renewable resources and minerals. As rare as non-renewable resources come, they are
very hard to maintain as well as to sustain in some, if not, most cases. In most countries, their
economy may strongly rely in their use of their non-renewable resources. Let us look at Australia
and Nauru.
AUSTRALIA
Australia is very rich with numerous resources and minerals as it has a very large land
area. Its main non-renewable resources are oil, natural gas, coal and uranium. Oil and natural gas
are utilized mainly for a secure supply of adequate, clean and reliable energy at an affordable
price which is vital for Australias economic growth. Australia is rich in natural gas on a per
capita basis, possessing 2.0% of the worlds proven gas reserves, but only 0.3% of the worlds
population.36 Most of the natural gas used by Australia comes from the North-West coast basins
and the coal basins in East Australia and oil from the Carnarvon and Gippsland basins. Coal is
their largest commodity export. It is mainly used for electricity production. It is said to have 500
years of coal remaining. The economic demonstrated resources (EDR) of black coal are said to
be adequate for about 90 years at current rates of production. Brown coal is more abundant in the
Gippsland Basin, Victoria while black coal is mined more in Queensland and New South Wales.
Australia is known to be 1/3 of the worlds known economic resources when it comes to
36
St John, Alex. Australian Non-renewable Energy Resources. Parliament of Australia.
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/
pubs/BriefingBook44p/EnergyResources (accessed April 10, 2017).
uranium. All production is for export purposes. Deposits can be found in South Australia,
Northern Territory and West Australia. Australia aims for sustainable use but most of their
resources, they have already predicted how much they can exploit until these resources can no
Australias use of these non-renewable resources are heavily grounded but, from time to
time, their have been alternative practices and decisions on their usage. Significant rise in
Eastern gas prices prompted calls from consumers to ensure gas supply and calls for gas
reservation policies. The heavy use of coal in Australias energy mix is controversial, but it still
accounts for 35% of Australias primary energy consumption and provides export earnings of
more than $30 billion annually. 87% of the coal production is exported while the remaining coal
is actually for domestic use. Completed and announced closure of oil refineries will see
Australian refining capacity halved compared to 2000-2001 levels and the liquefied fuel supply
will increasingly rely on imports. As for uranium exports, moves to establish new uranium
projects are possible during the 44th Parliament, after Queensland and New South Wales relaxed
Needless to say, conflicts of interests among people like businessmen, politicians and
private owners tend to raise issues in the usage of non-renewable resources in Australia. People
calling for gas reservation policies but are prevented by political parties because they believe that
energy supply is best guaranteed by a well-functioning market. Whether the reservation policy will
have a positive or negative effect, is up to dispute. As mentioned, the controversial heavy use of
coal in Australias energy mix comes up because of its primary use for electricity production. The
industry becomes harder to replace because it has long been practised. Crude oil exports mainly to
Asian refineries. The production of crude oil, condensate and LPG declined since 2001 because of
closing Australian refineries. In 2013-14, funds were appropriated for the government to
investigate the Australias compliance with its International Energy Agency fuel stockpiling
obligations. All of Australias uranium is produced primarily for export and having a domestic
nuclear plant industry is highly unlikely in the near term, despite calls from some industry and
scientific groups in Australia. A range of geological, economic and policy factors influences the
decisions of private investors. Most importantly, in the exploration and development stages,
project profitability assessments are influenced by expectations and risks relating to, for example,
resource prospects, resource prices, technologies, input costs more generally, land access and
government policies. Government policies that are relevant to industry range from sector specific
policies such as resource taxation and approval processes, to broader policy processes such as
A rightful solution is, of course, needed in order to ensure the proper management of
these resources. Australia may lessen the use of coal in their energy mix, but it may be hard to
find an alternative for it. They could take risks and try the reservation policy for gas in order to
see for themselves the results whether it be positive or negative. They could set a time frame for
it and observe fluctuations, if there are any, in the market. Setting aside a portion of their
uranium production for local industry usage is a wise move since it may help their own science
Hogan, Lindsay and Rebecca McCallum. R 2010. Non-renewable Resource Taxation In Australia.
37
ABARE Report - April 2010. Prepared for the AFTS Review Panel. ABARE-BRS. Canberra. October.
NAURU
Guano phosphate mining has stripped bear the nation and it faced an economic crisis.
Inch for inch, Nauru is the most environmentally ravaged nation on earth. So much of the island
has been devoured by strip-mining which began 90 years ago that Nauruans face the prospect
When European sailors first caught sight of Nauru in the 18th century, they were so
enchanted by its luxuriant tropical vegetation that they called it Pleasant Island. Today, the name
is a bitter joke. After generations of mining, the environmental devastation of Nauru is nearly
total. Four-fifths of the island has been mined out, leaving behind a pitted, ghostly moonscape of
gray limestone pinnacles, some as tall as 75 feet. The only habitable land is a narrow coastal
The Europeans soon discovered phosphate deposits and the tiny island became a strip
mine, exploited by foreign colonial powers. After it gained its independence in 1968, mining
intensified until most of the phosphate had been stripped and the islands economy went south.
In the process of mining phosphate to fertilize fields in faraway places, the country had rendered
its own landscape infertile. Today, the island is a barren wasteland with jagged limestone
pinnacles that cover 80% of the island. The land and economy werent the only things ravaged.
The Nauruans are among the most sick and obese people in the world, racked by diabetes and
high blood pressure. Few people live past the age of 60 years. Before independence, there was a
culture of fishing and gardening among the Nauruans and they ate fresh fish, fruits, and
vegetables grown on land. With the easy income from phosphate, the people stopped farming
Shenon, Philip. A Pacific Nation Island Is Stripped Of Everything, The New York Times, December 10,
38
1995, http://www.nytimes.com/1995/12/10/world/a-pacific-island-nation-is-stripped-of-everything.html
and began importing canned and frozen food. As a result, Nauru has the highest rates of obesity
and diabetes in the world. 94% of its residents are overweight while 72% of them are obese.
More than 40% of the population has type 2 diabetes, as well as other significant dietary-related
The Germans began mining phosphate in 1907. In World War I, the Australians seized
Nauru and, apart from the Japanese occupation of the island in World War II, controlled it until
independence in 1968. In 1989 Nauru filed suit against Australia in the International Court of
Justice, asking that it pay for the rehabilitation of one-third of the island, the area destroyed by
mining during the colonial era. Two years ago Australia settled the suit for about $75 million.
The Nauruans plan to use the money to knock down hundreds of thousands of the lifeless coral
pinnacles, and then to lay down topsoil in hopes of coaxing pandanus, mango and breadfruit
trees to grow again. Environmentalists say it is unlikely that the land will ever produce enough
food to feed the population. The other option is to uproot the population and move to another
island. In the 1960's the Australians offered an island off the coast of the Australian state of
Queensland, but Nauru's leaders rejected the proposal because they would not have been given
complete sovereignty. Many Nauruans say their situation today is so hopeless that they must now
reconsider a move, possibly even to buy a new island home from one of Nauru's Pacific
neighbors.
Brazil is one of the worlds major producers of metals such as iron, gold, tantalum,
columbium, aluminum, and tin40. The growth of Brazils mining sector has helped improve the
countrys economy and make its presence known in the international market, bringing in foreign
direct investments alongside Russia, China, and India. The mining industry contributes at about
4% to the countrys annual gross domestic product (GDP), which is around 100 billion US
dollars.41 The country even leads in the production of mineral commodities globally. Brazil ranks
sixth in mining production worldwide and is a significant producer of bauxite. It is the largest
exporter of iron ore in the world and is also a growing producer of copper and nickel. In 2010,
Brazil traded almost 80 mineral commodities and globally stood out as a leading mineral
producer: currently, the country produces 70 mineral commodities including four fuels, 45
industrial minerals, and 21 metals. Brazils three main mineral export commodities are iron ore,
aluminum, and gold42. According to a research conducted by SNL Metals & Mining in 2013, the
states mining sector ranks tenth worldwide in exploration activities. However, in spite of its
geological potential, Brazil is not competitive in terms of attracting investments for exploration
among different sectors of the government. At a federal level, the three key government agencies
40
Incio de Medeiros Delgado, Augusto Pedreira and Charles Thorman, "Geology And Mineral
Resources Of Brazil", International Geology Review 36, no. 6 (1994), 85.
41
Carlos Jr. Nogueira Da Costa, "Brazilian Policies For The Mining Sector", 2014.
42
Will Soutter, "Brazil: Mining, Minerals And Fuel Resources", Azomining.Com, last modified 2012,
accessed April 15, 2017, http://www.azomining.com/Article.aspx?ArticleID=51.
43
Instituto Brasileirio De Minerao (IBRAM), Overview Of Brazilian Mineral Sector, 1st Meeting MCTI
and IBRAM on International Cooperation with Brazil on Mineral Resources and Disclosure 24th World
Mining Congress (WMC 2016) (Brasilia, 2015), accessed April 15, 2017,
http://www.ibram.org.br/sites/1300/1382/00005617.pdf.
responsible for Brazils mining industry are the Ministry of Mines and Energy, DNPM and
CPRM. The Mining Code of 1967 governs all aspects of the mineral industry, from exploration
to production and use of mineral resources, and establishes the rights and duties of the holders of
mining rights.44
conducted in Brazil. Environmental regulations in Brazil vary between state authorities, thus can
be confusing and make application procedures more prone to duplication. Along with other
regulatory problems, the countrys government have been pushing for regulatory changes since
2009. Some of which include a 20-year national plan of geology and mining and mineral
processing (which covers 2010 to 2030), the creation of a National Council of Mineral Policy
that will update the Mining Code, and many others. The overall consensus is Brazils new
regulatory regime will simplify applications and licensing processes, thus helping to render
Under the new regulatory regime, a number of proposed measures also aim to mitigate
the negative impacts created by speculation in the mining market. Additionally, exploration
permits will be limited to a maximum, non-renewable period of five years. Permit holders that
have not conducted surveys within this period will forfeit their rights to the respective prospects.
holding public hearings for major projects to engage communities and placing discretionary
limits on the sizes of particular areas that allocated to one company. Lastly, a mandatory
44
Yadira Soto-Viruet, The Mineral Industry Of Brazil (U.S. Geological Survey, 2013).
transitional period will be incorporated within the proposed changes in order to ensure that all
companies are provided with a suitable amount of time to adjust to the new regime.45
Economic Development
Minerals are both extremely essential for the people and the economy of a country in
general. Extraction, processing and usage of mineral resources play a significant role in the
growth of a countrys economy at the same time in the wellness, status and daily living of the
people. Processed materials from minerals take a large part in the everyday lives of the people,
from food, clothing, furnitures, appliances and computers up to businesses, energy resources and
large construction materials. The increased availability and amount of mineral-based products
elevates ones standard of living, apparently stressing that mineral resources availability could
determine and measure the wealth of a society46. Although not generally true especially for poor
countries, societies who have been successful and efficient in extracting, processing and using
minerals especially in economic theaters such as through exportation and importation have
As reported in the U.S. Mineral Commodities Summary 2017 shown in Figure 3, almost
four percent of the U.S. gross domestic product was attributed to the annual value of processed
45
E&MJ News, "Brazil Mining", E-Mj.Com, last modified 2011, accessed April 18, 2017,
http://www.e-mj.com/features/850-brazil-mining.html?showall=1#.WPYkL0V97IV.
46
Edward A. Keller, Introduction to Environmental Geology (New Jersey: Prentice Hall, 2008), 444-445
47
Mineral Commodities Summarries 2017 (U.S. Geological Survey 2017)
https://minerals.usgs.gov/minerals/pubs/mcs/2017/mcs2017.pdf
Figure 3: U.S. Mineral Commodities Summary 2017.
Source: Mineral Commodities Summarries 2017 (U.S. Geological Survey 2017)
https://minerals.usgs.gov/minerals/pubs/mcs/2017/mcs2017.pdf (Accessed on April 10, 2017)
Although the United States imports processed mineral materials e.g. metals and
chemicals from countries such as China, the total net imports summed up as $31 billion only
reaches nearly five percent of the mentioned amount of the domestically processed mineral
products, which resources come from the locally mined and reclaimed minerals (both raw and
processed), as well as imported raw mineral materials. This data could well emphasize the
States on foreign states for certain minerals (Table 1). This does not mean that the imported
minerals does not exist in justifiable quantities necessary to be mined. Rather, it states that there
could be better reasons that regard importing minerals as more practical option, either political,
environmental or economic reasons such as to meet and provide ample supply the mineral
demand of industries.
Entitled as one of the largest gold reserves in the world,it leads the world as fourth in copper
reserves and fifth in nickel. In the Mining Industry Statistics report (Table 2), Mines and
Geosciences Bureau (MGB) expressed that the minings contribution to the countrys Gross
National Product (GNP) has slightly increased in 2016, totalling to P84.9 billion, while
maintaining a constant part of 0.6 percent in the Gross Domestic Product (GDP) for two
consecutive years.48
P100.6 billion in 2016 from P 179.7 billion in 2015. It also recorded a significant drop in the
total mineral and mineral products exports sliding to $1,686 million in 2016 or about 40 percent
down from 2015, and a less serious decline in the collected taxes and fees in 2015, summing to
P29,575.9 million since the last years data is still unavailable. Although the mining industry
seemed to stand only on a small portion in the countrys economy, it should be noted that its
importance lies heavily in the goods it produces and the services it may provide. However, the
fact that the Philippines highly depends on the cheap importation of its raw minerals due to
absence or insufficiency of manufacturing and processing industries, which is then exported back
as processed materials at a higher price, proves that the countrys mining sector is at a drawback
as compared to strong economies like U.S. that are effective in utilizing the sectors resources
and services. Currently, the Philippines has plans to ban the exports of unprocessed minerals as
part of the initiative to revive its steel and iron industry, although this will greatly affect the
status of the country as among the top exporters of raw minerals particularly nickel.49
In Canada, $24.6 billion of the $56 billion contribution of the mining sector to the
countrys gross domestic product (standing at 3.4%) came from mineral extraction, while the
remaining $30.9 billion from mineral manufacturing and processing. In global arena, Canada is
among the foremost mining countries and largest sources of minerals and metals. The sector
recorded a value of 19% of the Canadian exports in 2015, accounting up to $17.6 billion from
the exports of aluminum, copper, iron and steel, iron ore, nickel, silver and gold. This is aside
2017.
http://www.philstar.com:8080/business/2017/03/04/1677631/phl-may-stop-exports-unprocessed-minerals
from the fact that mining industry have provided work most especially to the Aboriginal people50
Environment Issues
The issue of environmental degradation was perhaps the major focal point of the critiques
regarding the mining industry. In the recent years, the Philippines have encountered numerous
serious environmental accidents due mostly to mining malpractice. In 1996, the Marcopper
Mining Corporation have led the country in one of its biggest mining disasters as its open pits
drainage tunnels ruptured and spilled two to three millions of tons of mine waste through Boac
River in Marinduque, flooding and burying the villages that affected almost 20,000 people and
annihilated the marine and agricultural life in the river and surrounding areas.51 In 2015, at least
five miners were killed by a landslide in the Semirara coal mine in Antique, two years after the
coal mine collapse incident happened in the same area leaving five miners dead, three others
rescued and five remaining missing.52 On the other hand, the large-scale mining in Homonhon
and Cagayan have disrupted the ecological and natural heritage of the land aside from also
affecting the livelihood of the residents.53 In Zambales, mining activities have led to first,
conversion of forested mountains into deserted flatlands54; second, mud-colored waste flow in
50
Brendan Marshall. Facts & Figures of Canadian Mining Industry 2016. (Mining Association of Canada.
(Mining Association of Canada (MAC))
http://mining.ca/sites/default/files/documents/Facts-and-Figures-2016.pdf
51
Look Back: The 1996 Marcopper Mining Disaster Rappler. March 24, 2017
http://www.rappler.com/move-ph/issues/disasters/165051-look-back-1996-marcopper-mining-disaster
52
Gian Geronimo. Five miners killed, five missing as Semirara coal mine GMA News Online. February
14,2013.http://www.gmanetwork.com/news/story/294880/news/regions/five-miners-killed-five-missing-as-
semirara-coal-mine-collapses
53
GMA News TV Investigative Documentaries March 20, 2014.
https://www.youtube.com/watch?v=3MibO4J1yh0
54
Pagmimina sa Zambales, sisiyasatin sa 'Investigative Documentaries G MA News Online. July 24,
2014. http://www.gmanetwork.com/news/story/371565
the two major rivers in the province, killing the milkfish livelihood of the people55; third, rising
of leukemia and skin irritation cases due to nickel mines56; and lastly, degradation of the strength
and quality of the land due to over-extraction and continuing activities despite the cease and
desist order issued by the MGB to the black sand mining companies, even leading to other
57
problems such as unfair compensation with the affected residents like Aetas . These are in spite
of the existing laws and programs of the government regarding mining such as the
58
Environmental Protection and Management, Mining Act, and Mining Forest Program .
In United States meanwhile, good practices of responsible mining were noted, although
mining issues have also been a serious challenge in the country. As example, a mine in Colorado
was transformed into a golf course from being an open-pit mine for 100 years and a site of waste
disposal.59 The same success happened in the Ruby Hill Mine in Nevada after converting an
open-pit gold mine into a sustainable land through revegetation and consideration of local fauna
60
. These are amidst the mining pollution in the Bunker Hill mine in Idaho due to contamination
of toxic metals mixed with minerals and other materials61 and the mountain top removal mining
In Canada on the other hand, extensive mining in British Columbia, which has been a
major focus due to rich mineral deposits, have led to deforestation through extreme infestation of
55
Ibid
56
Sta. Cruz, Zambales residents: Nickel mine causes leukemia, skin irritation GMA News Online.
August 4, 2014.http://www.gmanetwork.com/news/video/213252/
57
Reporter's Notebook: Black sand mining in Zambales continues despite cease and desist order.
https://www.youtube.com/watch?v=o0wGCG3TfBI
58
Mines and Geosciences Bureau September 2016 Report.
http://www.mgb.gov.ph/images/homepage-images/mining-facts-and-figures-updated-January-2017.pdf
59
Edward A. Keller, Introduction to Environmental Geology (New Jersey: Prentice Hall, 2008), 444-445
60
Pollution Issues. Li Na>Mining. http://www.pollutionissues.com/Li-Na/Mining.html
61
Ibid
62
Murray Gray, Geodiversity: Valuing and Conserving Abiotic Nature (UK: John Wiley & Sons, 2013), 156
pine tree beetles for easier remote sensing detection of resources under the forest floor.63 Mining
industry have also yielded to creation of polluted and contaminated soil and water due to acidic
and chemical-filled mine waste water from drainages,64 as well as acidic precipitation directly
from refineries and mines in Quebec, Ontario and Manitoba65 and abandoned open-pit mines
across the country that still leak wastes in the nearby lakes and rivers.66
Conflict of Interest
The extractive nature of mining inevitably pits economic interests (often backed by states
and powerful multinational corporations) against the environment and, consequently, societies
within the vicinity and periphery of mine areas. Switzer (2001) posits that mining can lead to
conflict over the control of resources and resource territories, environmental impacts,
benefit-sharing and decision-making, and the means to gain access to resources and manpower.67
In the same vein, mining operations may be used to finance conflict but may also become a
Local communities existing within or close to mining operations often bear the brunt of
the effects of exploration and extraction, many of them suffering massive dislocation, human
63
Carrier Sekani Tribal Council. Current Issues>Mining.
http://www.carriersekani.ca/current-issues/mining/
64
Government of Canada. Environment and Climate Change Canada>Mining.
https://www.ec.gc.ca/pollution/default.asp?lang=En&n=C6A98427-1
65
Canadas Mining Industry.
http://www.dpcdsb.org/NR/rdonlyres/2FA3A27F-0E8C-42AF-A11E-7BA78ECAD9BD/17065/canadasmini
ngindustry.PDF
66
ibid.
67
Switzer J. 2001. Armed conflict and natural resources: the cases of the minerals sector. MMSD Work.
Report No. 12. http://www. iied.org/mmsd/mmsd_pdfs/jason_switzer.pdf
rights violations, and a host of other negative impacts. That these communities are minorities
Mining, as an industry, gains a lot of notoriety for the disparity it creates. The tug-of-war
of resources can give birth to human rights violations and abuses, political conflict, delayed
development, and poverty. In fact, ore-exporting and resource-rich countries have been found to
perform worse than small resource-poor in terms of GDP/capita per annum. Thus, the notion that
mineral resources lead to progress and development is one with little precedent or basis.
Today, in Canada and the United States, thousands of Native Americans are being
displaced due to the mining of oil and the construction of oil pipelines69. In particular, the
construction of the Alberta Pipeline by Energy East and the Dakota Pipeline by Energy Transfer
Partners. These pipelines, while necessary for providing affordable fuel and energy to both
Canada and the US, pose a major threat to surrounding rivers and ecosystems that are essential
for the hunting, gathering, and agricultural lifestyles of Native Americans. This conflict has led
At the moment, Canadas oil pipelines are already operating at maximum capacity. The
construction of the Alberta pipeline is expected to increase Canadas capacity to transport oil
both to their citizens and export markets (notably, to the US). The pipeline will traverse the
entire length of Canada (the longest in the Americas) and is expected to cost $15.7 billion. It is
expected to increase Canadian oil production from 2 million barrels of oil a day going to change
to 4 million by 2022. However, the construction of the pipeline will almost inevitably result in
68
Ballard, Chris, and Glenn Banks. "Resource Wars: The Anthropology of Mining." Annual Review of
Anthropology 32, no. 1 (2003): 287-313. doi:10.1146/annurev.anthro.32.061002.093116.
69
http://fusion.net/the-standoff-that-never-ended-1794041575
the displacement and alienation of Mohawk communities of Kahnawake and Akwesasne in the
area.
In mining, the balance of power is almost unavoidably skewed towards corporations and
states with significant clout and capital. This is exacerbated by the growing need for metals, oil,
However, with NGOs and international bodies like Amnesty International coming into
the picture, rights of indigenous communities and laws protecting the environment are growing
in importance. Because of this, the mining industry is moving (albeit slowly) towards a paradigm
and locals should work with each other to pave the way for development that considers the
environment, individual and collective human rights, economic development, and sustainable
policymaking.
In the US, the Sioux Rock Tribe, through protests and demonstrations, were able to
successfully resist the construction of the $3.8 billion Dakota Pipeline by the Dallas-based
Energy Transfer Partners. Although negotiation for rerouting the pipeline are currently
The Philippines faces a similar predicament. Indigenous peoples, most notably those
from the Cordilleras and far-flung regions in the Mindanao island are being displaced due to gold
and copper mining. Although Philippine mining laws are some of the strictest in the world,
institutional weaknesses and corruption prevent these laws from being enforced.
CONCLUSION
The continent of North America is richly endowed with natural resources, including great
mineral wealth, vast forests, immense quantities of fresh water, and some of the worlds most
fertile soils. These have allowed North America to become one of the most economically
developed regions in the world, and its inhabitants enjoy a high standard of living. North
America has the highest average income per person of any continent and an average food intake
per person that is significantly greater than that of other continents. Although it is home to less
than 10 percent of the worlds population, its per capita consumption of energy is almost four
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