Land use issues in mineral extraction

"Recent land-use decisions in British Colwnbia, and the publication of a report on compensation for expropriations of resource interests, have highlighted the nature of land use policies. Landuse decisions, such as the creation of large new parks, raise three principal issues which have implications for how land-use policy is conducted and how it impacts on the mining industry. The first is the identity of the parties advocating different land-use policies and their motives for doing so, the second is the changing nature of benefits derived from land, and the third is the change of property-rights regime which is devised to accommodate the (changing) benefits from using land and natural resources, as well as the interests of the different parties involved.Involved Parties and BenefitsThe process of establishing or modifying property rights depends on the interest groups involved. Three distinct categories, each with distinct incentives which can influence the process, must be distinguished: private claimants, politicians and bureaucrats (Libecap, 1989).The first groups claim rents and management powers through asset ownership. They may be incumbent owners seeking enforcement of the status quo, new claimants seeking redistribution of assets, or third parties who depend on the distribution of assets (e.g. lenders, labour suppliers and contractors). Some infonnal property arrangements can be negotiated within the group whereas others requires action in the political arena through lobbying politicians for (re)allocation of property rights and influencing bureaucrats for favourable administrative decisions. The second category is politicians, who direct the powers of the state to change or enforce property rights. Both incwnbents and office-seekers fall in this category and their actions and opinions are shaped by their constituencies and financial backers. However, not all causes can be championed and trade-offs have to be made, resulting in decisions that maximize political benefits. The third category of parties in the process is the bureaucrats. The power to manage has been delegated by politicians but bureaucrats also have opportunities and incentives to further their own interests. These can include maintaining or expanding jurisdictional turf or increasing operating budgets (Libecap, 1989)"