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By H. M. Park

Risk is a major factor in all mining activities, arising from many internal and external variables. The authors? research has resulted in a systematic method for the quantification of risk in mining projects (Park, 2012). This research will be presented in a series of papers, this one and two more that will be published on Mining Engineering?s web site, www.me.smenet.com. This paper identifies the variables associated with risk in mining projects, and their effects. The second paper discusses methods of assessing the overall risk associated with those variables, and presents a statistical model based on a survey of 31 experts. The third paper presents an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved. There are several major competing entities, including BHP Billiton, Rio Tinto, Anglo American, Xstrata, Freeport-McMoRan, Chinese government- run companies and Japanese trading companies, that have large foreign holdings, controlling deposits in most of the world?s established and productive mining districts. In general, the mining industry considers the United States, Canada, Australia and the European countries to have good mining investment environments, but because the major companies have already achieved market dominance in those countries, large investments are required there. Newcomers seeking to enter the industry, either as producing companies or as investing partners, often have difficulty breaking into these established markets. Thus newcomers are increasingly turning to new areas like South America and Africa, which are relatively less developed. The competition among businesses to secure a share of the new market is intense, but there are still good investment opportunities. However, because most of the countries in these areas are not well developed, several additional risks are associated with participation in mining projects in those areas.

Oct 1, 2013

The mineralised members of the Brockman Iron Formation mined at Mt Whaleback are overlain and underlain by shale horizons. To maximise resource recovery, waste movement within the life of mine plan includes mining of the:unmineralised banded iron formation (BIF), Mt Whaleback Shale, Mt McRae Shale, Mt Sylvia Formation, and parts of the Wittenoom and Jeerinah Formation. With the exception of BIFs, all other units contain zones with varying amounts of sulphides and carbon û æreactive shaleÆ. Reactive shale has a propensity to self-heat and can react with some explosives, resulting in spontaneous explosion. Sulphide rich zones also have the potential to generate acid rock drainage (ARD). Mining reactive shale at the Mt Whaleback mine must be undertaken in a safe, efficient and environmentally responsible manner. Key tasks in the mining process include:100 per cent identification of blastholes that may contain reactive shale; 100 per cent correct loading of blastholes with specified blasting products; 100 per cent of reactive shale mined, hauled and dumped in designated overburden storage areas; 100 per cent containment and treatment of ARD water onsite; and ongoing research into ARD, self-heating and spontaneous combustion. Successful mining of reactive shale requires constant co-ordination between the geology, mine planning, mining and environment departments.

Jan 1, 2002

In-Country Business Development Agenda ?Siting/Permitting/Operational Planning ?Securing, maintaining, enhancing social license to operate ?Biodiversity conservation and ecosystem services ?IFC Performance Standards ?Environmental, Social, Risk Governance (ESG) ?Climate change plan

Aug 1, 2013

By C. M. EYE

IN the spring of 1905 I was employed by Messrs. Bradley and Requa, under our fellow member, Thomas Cox, on the mill plans for the Nevada Consolidated, when an opportunity came to go to the Philippines to erect a small mill on the property of the Benguet Consolidated. This I accepted, expecting to be away eight months or so, but it was seven years before I got back. .I sailed in May, on the Coptic, having as room-mate as far as Kobe, A. E. Drucker, who was going out to Korea for the Oriental Consolidated. It was the first trans-ocean trip for either of us, and we had some rather unusual experiences. This was toward the close of the Russo-Japanese war and the Russian fleet was known to be on the way from Suez to Asiatic waters, but it was a matter of doubt whether they would risk a passage between Japan and the mainland, or take the longer but obviously safer route outside of Japan. The Coptic carried much contraband of war for Japan, so naturally did not care to meet this fleet. No definite word being available at Honolulu, we went to the Midway Islands, but the cable station there had very little information to offer, so we proceeded cautiously toward Japan. On the last afternoon out, we steamed due north at half speed for several hours, and finally sneaked into Yokohama at night, to learn that ' the Russian fleet had met the Japanese the day before and had been annihilated. We sailed over the spot in the Sea of Japan a week later, and when we got to Manila we found three of the Russian boats interned and being guarded by the monitor Monadnock and a cruiser. This was only a matter of form, as the Russians were only too glad to be there for the rest of the war, and the boats could not have gone far anyway, for they were literally shot to pieces. The Admiral's flagship had a hole within 3 ft. of the water line, for ward, through which a man could enter by stooping.

Jan 1, 1929

By Richard Stewart

There are highly competitive world markets in most of the minerals being mined today. The high standard of living we enjoy in North America results in ever increasing productivity through mechanization and automation. Conventional underground and open-pit mining practices throughout the world are constantly changing to reflect the engineering advances of our technology. New records in tunneling, shaft sinking and excavating are being established. Larger and faster equipment is in production. Mining operations are being studied in detail to improve materials, methods and machines. Standards and controls are being established to measure the performance of people and equipment. These steps all tend to improve our present performance. In addition to these short-range improvements, however, there are the basic research and applied research studies which are aimed at developing entirely new approaches to our mining problems. Basic research in rock mechanics is coupled with applied research in rock penetration, fragmentation and stabilization.

Jan 1, 1963

Since its creation in 1910, the Department of the Interior's Bureau of Mines has pioneered in the development of mineral technology, through research. From the very beginning, research on mine health and safety has been a dominating concern, and a responsibility that expanded markedly as a result of the Coal Mine Health and Safety Act of 1969. Until the mid-1970's research on fuel technology and coal production also was an important part of the Bureau's work. But in the four years following the 1973 oil crisis, Congress established a reorganized Federal energy research apparatus in which all fossil fuel research-encompassing extraction, use, and conservation-was centralized. Today, the Department of Energy houses Federal research on coal mine production technology, while research on coal and noncoal mine health and safety and environmental technology, and on noncoal mine production technology, remains in the Interior Department as a continuing responsibility of the Bureau of Mines. In carrying out its authorized research programs, the Bureau conducts both short- and long-term re-

Jan 1, 2012

By Staff

"In 2014, the estimated value of total mine production of nonfuel minerals in the United States increased. The quantity of production increased for most mineral commodities mined in the United States, as did prices. Notable exceptions were the declines in prices for most precious metals. Minerals remained fundamental to the U.S. economy, contributing to the real gross domestic product (GDP) at several levels, including mining, processing and manufacturing finished products. Following the reduction in construction activity associated with the 2008- 2009 recession that continued through 2011, the construction industry continued to expand in 2014, with increased production and consumption of cement, construction sand and gravel, crushed stone and gypsum, mineral commodities that are used almost exclusively in construction. Other segments of the nonfuel minerals industries increased as well. Trends in other sectors of the domestic economy were similar to those for industrial mineral production (Table 1).Discussion of mine production is frequently segmented according to the type of materials produced within the broad categories of metals and industrial minerals. Industrial minerals can be further subdivided as construction aggregates and other industrial minerals. The materials with the highest unit values, usually metals, tend to have very low production rates compared with those of many low-valued materials, such as crushed stone or construction sand and gravel. Therefore, for discussion and analysis of the performance of the minerals industry in general, the value of production is used rather than tonnage produced. Although the value of metals and industrial minerals mined in the United States are similar, if tonnages are compared, construction aggregates dominate, dwarfing the production of all other minerals combined.Mineral industry performanceThe estimated value of nonfuel mineral raw materials, including metals and industrial minerals, produced at mines in the United States in 2014 was $77.6 billion, a 3.5-percent increase from $75 billion in 2013 (Table 2). Net exports of mineral raw materials and old scrap were $15 billion (Fig. 2). Domestic raw materials, along with domestically recycled materials, were used to process mineral materials worth $697 billion. These mineral materials, including aluminum, brick, copper, fertilizers and steel, and net imports of processed materials (worth about $41 billion) were, in turn, consumed by downstream industries with a value added estimated to be $2,530 billion in 2014.In the United States in 2014, mine production of each of 14 mineral commodities was worth more than $1 billion. These were, in decreasing order of value, crushed stone, copper, gold, cement, construction sand and gravel, iron ore (shipped), industrial sand and gravel, molybdenum concentrates, phosphate rock, lime, salt, zinc, soda ash and clays (all types)."

Jan 1, 2014

By Staff

Minerals contribute to U.S. gross domestic product (GDP) at several levels ? from mining and processing to the manufacturing of Anished products. In 2009, the estimated real GDP of the United States decreased by 2.4 percent compared with, and the estimated nominal GDP was about $14.2 trillion (Table 1). Trends in various sectors of the domestic economy are often reflected in mineral production and consumption rates. In 2009, the continued decline of the housing market was reflected in reductions in the production and consumption of cement, clays, construction sand and gravel, and crushed stone (those mineral commodities that are used almost exclusively in construction). Production of mineral commodities associated with the manufacture of goods for the housing market, such as ceramic tile, heating and air conditioning equipment, paint, plumbing and sanitaryware, roofing, wiring and wallboard also decreased. Declines in auto-mobile manufacturing resulted in reduced production

May 1, 2010

By B E. Hall, J Poniewierski, A J. Hills

Following a review of life-of-asset work at MMG’s Rosebery mine in which a proposal to increase production from 0.8 Mt/a to 1.2 Mt/a was mooted, questions were raised as to the seemingly arbitrary reasoning for the production increase. They included: Did the proposal actually add value? Was the production rate from the mine sustainable? Was it the best identifiable value-adding configuration?A multiple scenario analysis study commenced to model how various cut-off grade values against mill throughput, along with associated capital expenditure, would impact on the potential value of the operation. This was carried out utilising the ‘hill of value’ approach promoted by AMC Consultants.The traditional approach to these studies uses a constant cut-off value (NSR – net smelter return) for the whole mine analysis. This was thought to potentially introduce a large amount of variability to the model as different ore types were thought to have different processing costs and different underground lenses were thought to have different mining costs. With the aim of developing a consistent value measure that would be comparable between the lenses, an alternative measure was suggested for all ore block values in this model, irrespective of lens location.The new measure used was a mine variable value (MVV). This allowed for the variable factors of final metal concentrate production to be removed from the ore value. From a mining point this was the haulage distance from ore source to run-of-mine (ROM). For the mill it was the amount of reagents required, varying based on grade together with the amount of power required for crushing, grinding and tailings handling.From the initial run of the model, preliminary results lead to a conclusion of increased value being gained by either increasing cut-off grade or increased mill throughput rate. The validity of the result was tested using alternative price scenarios, which although changed the absolute value achieved did not significantly change the identified value-adding strategies. The realisation of these value increases identified are however contingent on higher sustainable development rates being able to be achieved mine-wide, higher backfilling rates being able to be achieved and overcoming recognised ventilation constraints. Further detailed studies are being put in place to identify the practicality of overcoming these recognised constraints and achieving the higher-value strategies identified.The ongoing objective of the hill of value model built is to keep the model alive as a life-of-asset planning tool and to continue refining the foundation data, such that various mining strategies can be analysed with increased confidence.CITATION:Hills, A J, Hall, B E and Poniewierski, J, 2014. Mining scenario analysis and mine variable value, in Proceedings 12th AusIMM Underground Operators’ Conference 2014 , pp 111–118 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Mar 24, 2014

MORE than 5000 miners and suppliers descended upon Denver to make the American Mining Congress' four-day metal mining show one of the most extravagant equipment displays ever assembled in one place at one time. The most recent developments in equipment for mining, milling, and processing ore were shown by the 146 exhibitors at Denver's new City Auditorium which covers 57,000 sq ft of floor space. Other displays were placed in the open air opposite the auditorium site. Registration desks were opened Sunday, Sept. 21. A field trip to the Colorado School of Mines at Golden was the featured activity of the day. Official opening of the show took place on Monday, and presided over by Howard I. Young, president of American Zinc, Lead & Smelting Co.; Otto Herres, vice president, Combined Metals Reduction Co.; William J. Coulter, vice president, Climax Molybdenum Co.; Charles B. Stainback, Westinghouse Electric Corp.; and Merrill E. Shoup, president, Golden Cycle Corp. Convention welcoming addresses were delivered by a representative of Mayor James Q. Newton, of Denver, and Gov. Daniel V. Thorton of Colorado. Following the formal opening ceremonies a round table discussion dealt with the "Paley Commission Report" formally called Resources for Freedom. Participating in the panel were: Arthur H. Bunker and George R. Brown, members of the Paley commission; H. I. Young, president of the American Mining Congress; Horace M. Albright, president of U. S. Potash Co.; Evan Just, vice president, Cyprus Mines Corp.; Donald H. McLaughlin, president, Homestake Mining Co.; E. H. Snyder, president Combined Metals Reduction Co.; Simon D. Strauss, vice president, American Smelting & Refining Co.; Sen. H. C. Dworshak (R.-Idaho) ; Ira B. Joralemon, consulting engineer; Jess Larson, De fense Materials Procurement Agency; and Andrew Fletcher, president of St. Joseph Lead Co. The panel discussed the report for six hours, adding a great deal of information to the already voluminous amount which has been gathered concerning it. Three objections to the report frequently mentioned were: 1-the multilateral contract; 2-international buffer stocks; 3-international buffer stocks combined with limited quota arrangements. Points on which the panel commended the report were its recommendations for acceleration of topographic and geologic mapping of the United States and Alaska; recognition of the principle of percentage depletion for metals and minerals; and advocation of removal of the present limitations on the expensing of exploration costs applicable to minerals. Technical sessions were held throughout the four days of the meeting. Included in the program were: Progress in Mechanication; Small Mines; Public Lands; Open Pit Mining; Manpower-Labor Relations; Shaft Sinking; Roof Support; Taxation, Gold, Silver and Monetary Policy; Advances in Mill Practices; Special Conference on Strategic Materials; Uranium Mining-Atomic Energy; Prospecting and Exploration; New Metallurgical Processes; and Rock Breaking. About 45 papers and several panels were presented during technical sessions. Formal and informal social functions consumed the remaining time of the convention. Three locations were needed to handle the huge throng attending the Mining Jamboree Monday evening. The only other sponsored social function took place Thursday evening. A great many informal gatherings, chiefly convivial, were held in manufacturers' courtesy rooms-called wet stopes. Field trips included Cripple Creek, Pueblo, Climax -Leadville-Gilman, Colorado Plateau-Grand

Jan 1, 1952

By Van E. Housman, Stephen D. Hoffman

The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), also known as "Superfund", requires a listing of sites that have known releases or threatened releases of hazardous substances, pollutants, or contaminants throughout the U.S. When EPA determines that a significant threat exists, it places the worst contaminated sites on the National Priorities List (NPL). CERCLA provides EPA broad authority to clean up hazardous sites that threaten human health and the environment. There are currently 52 sites on the NPL that were placed on the list because of high human health or environmental risk as a result of non-coal mineral extraction, beneficiation, or processing operations. This list covers mining sectors from aluminum to zinc. While some of these sites were abandoned, many are still operating. (There are additional mine sites that have been recently proposed to be included on the NPL that are not included in this paper.) EPA is continuing to develop a mining program to address human health and environmental threats from active non-coal mines. EPA has performed a comprehensive study to assess the waste management practices at all of the 52 mine sites on the NPL. In addition, EPA is continuing to collect information on the specific mining sectors (i.e., gold, copper) that represent many of the NPL mine sites. One of the goals of this effort is to attempt to identify the types of mining practices that lead to human health and environmental problems at the NPL mine site. EPA estimates that there are currently 500 to 1,000 active mines (not including placer operations). While some mining NPL sites began operations before the turn of the century, only a handful of the NPL mines entirely ceased operations prior to 1970. Of the 52 NPL sites studied by EPA, 12 are currently active. By definition, these mines represent current mining practices. Approximately 17 additional NPL mines that ceased operations between 1970 and 1990 represent some degree of current mining practices. Therefore, at best, less than half on the 52 NPL mine sites can be said to definitely represent past mining practices. Although some mining waste management practices have changed over time, the basic technology for extraction and beneficiation of mineral ores have remained fairly constant over the last fifty years. While the use of acid to leach copper dumps, the use of cyanide to leach gold in heaps, and the spread of solvent extraction techniques has changed some aspects of mining, the basic operation of removing ore from the ground and concentrating it through beneficiation has remained fundamentally the same as when most of the non-active

Jan 1, 1992

Software exhibitors at MINExpo will feature the newest, the best, the most comprehensive computer-based tools available to get minerals from the ground to the market. From the ?cloud? to the pit, the variety that will be featured is almost limitless ? a digital tool for every phase of the mining lifecycle. Blue Sky Network SkyRouter brings the Blue Sky Network to the cloud. Using its interactive Web portal, SkyRouter, with detailed mapping and integration with Google Earth, the Blue Sky Network links enterprises to personnel and assets anywhere on earth through Iridium satellites. The cloud-based solution is designed to support connectivity with remotely dispersed mobile assets, including Blue Sky?s dual-mode GSM and Iridium tracking and communications services. This enables seamless connectivity with assets in problematic cellular reception areas, where only 10 percent of the Earth is covered, and in remote locations.

Jan 1, 2012

By William Winsor, Harold L. Snyder

"AbstractShould oil and gas be proven in commercial quantities on the Labrador Shelf, current technology is not adequate for production operations in this severe environment, which includes yearly invasion of pack ice and icebergs. The fishery of this section of the North Atlantic is a vital resource to which a major oil spill or blow-out would impose an intolerable burden, This means that production systems must be designed and built to be fail-safe.The experiences of mining in Bell Island and Cape Breton have shown that it is possible to operate beneath the ocean floor, and this technology may hold the key for safe, reliable and economic production, This paper attempts to define particular problems and outline possible solutions.IntroductionOUR DISCUSSION is subject to the assumption that large hydrocarbon reservoirs will be discovered in the sedimentary basin of the Labrador continental margin. The petroleum industry has not attempted to operate in a harsher area. The Labrador coastline is exposed to North Atlantic storms and icebergs year’round, Arctic pack ice occurs up to six months of each year. However, there is no doubt that, if sufficient hydrocarbon potential is outlined, development will proceed."

Jan 1, 1977

By C. David Mann

Metal prices continued to improve in 1964, resulting in the opening of new mines and re- activation of old ones. Larger and deeper shafts are being bored. At the AEC's Nevada Test Site, a 72-in. diam shaft is being bored to 3200 ft. In New Mexico a 1650-ft shaft was bored with a 48-in. bit, then reamed to 124 in. to 935 ft, and 102 in. to 1650 ft. Deviation was only 26 in. In California a shaft sinking machine has been developed which combines drilling and mucking equipment into one mobile, integral unit.

Jan 2, 1965

By D Carroll

Mining of the zinc, lead and silver deposit at the Broken Hill Southern Operations site has been occurring for over 100 years. As a result of this, a significant amount of high-grade ore is now taken from narrow remnant pillars left between old stopes and zones of previously mined ground. Stopes have been filled with either hydraulic fill (also known as ‘sandfill’), cemented hydraulic fill (cemented sandfill), waste rock backfill or a mixture of these fill types.In the last ten years, there has been considerable success mining through narrow pillars where sandfill is exposed in the development face and/or walls using a ‘shell’ support regime, wherein a layer of bolted mesh is sandwiched between two layers of sprayed fibrecrete (25 mm fibrecrete, then mesh and bolt, followed by a final 50 mm layer of fibrecrete). Shell support is also used in very poor, broken, relaxed ground conditions and in areas filled with cemented fill (sandfill with a minimum four per cent cement content).The next stage of innovation has been to develop a technique for mining through old stope voids filled with uncemented sandfill, known locally as ‘contours’ (old cut-and-fill working), an activity where unconsolidated sandfill can run at the face and from the backs. The challenge is to prevent exposed sandfill in the face and the backs from failing before it can be supported.To achieve this, the Southern Operations mine has implemented a technique in which 6 m long spiling bars are used to strengthen and stabilise the sandfill in front of the face. The hollow steel bars are driven in around the heading perimeter in a closely spaced pattern then pumped full of grout. The bars and the grout stabilise the sandfill in front of the face, preventing it from failing into the drive during excavation and prior to further support being installed.A final support system consisting of shotcrete, mesh, bolts and steel girders is installed as excavation progresses. Both the initial and final support systems are essentially passive support systems designed for a low-stress environment (as the stress originates mostly from the mass of unconsolidated sandfill).This process is slow and labour intensive. Fifteen separate cycles of people/machinery are needed to progress one equivalent heading cut (compared to six for a standard fibrecrete- and bolt pattern-supported rock face heading). This slow pace introduces scheduling challenges, but the process opens up parts of the orebody that were previously uneconomical to mine.CITATION:Carroll, D, 2014. Mining through sandfill using spiling bars, in Proceedings AusRock 2014: Third Australasian Ground Control in Mining Conference , pp 95–100 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 5, 2014

By T Jones, K Karunaratna

The Kalgoorlie Consolidated Gold Mines (KCGM) Fimiston Open Pit is located on the eastern boundary of the Kalgoorlie-Boulder City and is mining an area traditionally known as the Golden Mile. The pit area has been continuously worked since 1893, predominantly by underground mining methods and more recently through open cut mining. There are over 2000 km of old mine headings and numerous stopes under the open pit area. KCGM has interpreted and digitised the underground mine plans and stope sections into a common database. A 2D-model software package, called Pits, was developed in-house and allows old workings to be displayed at any bench level; this is integrated with 3D Vulcan modelling software, which allows triangulated surfaces to be displayed. Almost every mining activity is affected by underground workings. The effective management of the interaction between current mining and the underground workings is very important for safety and production. A specific ævoidÆ management department has been formed and its broad objective is to minimise the impact of underground workings upon production while maximising safety. Special criteria and procedures have been developed and implemented to keep personnel and machinery from being exposed to unsafe ground. It is of primary importance to accurately define the location and outline of underground workings in advance. Probe drilling has been used as the key tool for that purpose. Various geophysical methods have also been trialled on site to detect underground workings; these are discussed in some detail. This paper discusses ævoidÆ management issues such as data integration, void detection and flagging. The impact of underground workings on mine planing, production and slope stability is also discussed.

Jan 1, 2003

Once every three years the eyes of the construction and mining industry?s turn to Munich, Germany for the bauma trade fair and exhibition. From April 19-25, Messe München International (MMI) will host the 29th edition of this massive show that, despite the recent recession and global financial struggles, has grown yet again. The show, which is completely booked, will take place on a record 555,000 m2 (5.9 million sq ft) of indoor and outdoor exhibition space at the New Munich Trade Fair Centre. More than 3,000 exhibitors are expected to make use of this event. To prepare for the show that highlights some of the largest and most impressive construction and mining equipment in the world, Messe München began working months in advance on getting the infrastructure on the open-air site ready, in time for the arrival of the gigantic machinery exhibits, which started to arrive in March. Part of the preparations include a new entrance at the northwest corner of the exhibition center that was built to regulate visitor flow better. This should help with bauma considering that in 2007 more than 500,000 visitors passed through the gates. ?Although in 2010 the construction machinery sector in many markets worldwide will be recovering only slowly from the recession, we are pleased to report that we are seeing strong demand for exhibition space. This shows that exhibitors regard participation in the world?s leading trade fair bauma as a must, although many are at present having to make cuts in their advertising and trade-fair budgets. We have been particularly surprised by the strong demand for space from exhibitors from markets like China, India and Turkey. The fair is fully booked and many more companies are on the waiting list,? said Eugen Egetenmeir, managing director of Messe München. More than 50 percent of the exhibitors at bauma 2010 come from countries outside of Germany. While the show?s primary focus is on the construction section, it is not as if the mining sector will be difficult to find. With some of the largest equipment in world on display in section C2 (Fig. 1), the mining industry is sure to be well-represented.

Jan 4, 2010

By L. G. Hagenbuch

Several factors need to come together in creating an integrate mining equipment dispatching system. At the hub of these factors ace the central dispatching formulas. This paper details the development of these central dispatching formulas and explores the combining of these formulas with other elements to create an integrated dispatching decision. WHY DISPATCHING? Truck dispatching implies and in reality should equate to mine equipment efficiency. Good truck dispatching will yield good mine equipment efficiency while poor truck dispatching will yield the alternative. Truck dispatching can either be automated through a computerized, process or it can be manual. Every mine with haul trucks has a truck dispatching system whether it is recognized or not. Even a system wherein the hauler operators determine where they are going for their next load is a truck dispatching system.

Jan 1, 1987

The new law on Environmental Protection and Management (Republic of Indonesia Law 32 of 2009) was passed by the Indonesian parliament in September 2009. This law aims to protect Indonesia's rapidly degrading environment by providing tougher provisions for both polluters and law enforcers. In doing so, the law introduces a number of new constraints and potential business risks that will affect all companies in Indonesia, particularly mining companies. Some of the newly introduced concepts follow.   Mining companies will now require an environmental license, issued by the Minister of Environment or local counterparts. This license is a prerequisite for all other business and operational permits. The Minister can revoke the environmental license at any time in case of an environmental incident or dispute. Mining companies may be exposed to additional environmental taxes and bonds besides already existing reclamation and mine closure bonds.   There is an increased risk of environmental lawsuits, due to more stringent controls on one side and greater protection for NGOs on the other side who make claims, false or true, against the company. Company executives and managers can be sued and they will be held accountable if environmental degradation has indeed occurred due to the company's activities.   Companies may face increased liabilities due to a change in the definition of contamination. The new definition is more stringent (and on occasion may prove too stringent to be practical); it also provides little room for flexibility in its application.   As implementing regulations are prepared over the coming two to three years, mining companies will need to adjust to the new law. A proactive approach is needed to minimise risk. Recommended actions include: upgrading existing environmental impact assessments to a higher standard; conducting baseline studies and thoroughly documenting environmental conditions on a regular basis; closely tracking regulatory changes, especially the forthcoming implementing regulations on the new environmental law; and regularly engaging key government and community stakeholders on environmental issues.

Jun 1, 2010

By Josh Savit

Corporate responsibility already encompasses safety and compliance. No longer will companies be able to use differing standards of care to miners based on the country in which they are working. This is not only an issue of social license, but one of global risk management.