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Mining and Environment in Africa

Mining and Environment in Africa

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Published by Chola Mukanga
June 2009 United Nations Environmental Programme
June 2009 United Nations Environmental Programme

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MINING AND ENVIRONMENT IN AFRICA

A COMPREHENSIVE REVIEW REPORT

By

Thomson Sinkala
For the

UNITED NATIONS ENVIRONMENT PROGRAMME Division of Technology, Industry, and Economics Sustainable Consumption and Production Branch

June 2009

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ACKNOWLEDGEMENT I wish to thank UNEP for supporting this study. I also wish to thank Dr. Desta Mebratu of UNEP and the UNECA members of staff Mr. Antonio Pedro, Ms. Tarik Kassa, Dr. Strike Mkandla and Ms. M. Desta for their valuable comments as well as provision of literature. I wish to thank Mr. Fui Tsikata for his detailed scrutiny of this report. I also wish to thank all members of the ISG, in particular Prof. Bonnie K. Campbell, Ms. Lois Hooge, Mr. Mensan Lawson-Hechelli, Dr. Paul Jourdan, Dr. Hudson Mtegha and Mr. Mkhululi Ncube for assistance with literature.

DISCLAIMER The conclusions and opinions expressed in the report do not necessarily reflect the position of the United Nations Environment Programme.

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EXECUTIVE SUMMARY This study is a comprehensive review report on mining and the environment in Africa. The study also looks at underlying reasons why Africa is failing to maximize benefits from the industry, and presents suggestions to reverse this trend. Africa houses a vast array of minerals and is a world leader for some of these. Minerals are among the most valuable exports of Africa, and about 24 (45%) (see Figure below) of the 53 African countries rely on the industry as the largest exports from their countries, thus earning these countries foreign exchange for various socio-economic activities. Mining industry provides revenues, jobs, school and health facilities, and stimulates development of vital socio-economic infrastructure such as electricity, roads, railways and telecommunications. With only about 7 (13%) of the African countries carrying out some form of value addition to the minerals (See Figure below), the continent is at present a producer of primary mineral products which she exports to industrialized countries. Meanwhile, most pollution occurs at primary level in the minerals value chain. About 98% of resource flows in the form of excavation residues occur in production countries1. This means that Africa retains the environmental burden which also reduces her already little earnings from minerals. For copper, for instance, a study2 has revealed that the realistic price paid by EU copper buyers to EU primary copper producers has been determined to be 33% less than they should have normally paid. The study also found that the specific external costs for primary copper production differ also significantly between regions. In Africa, Botswana, Congo DR, Morocco, Namibia, South Africa, Tanzania, Zambia and Zimbabwe were in 2005 listed as copper producers. These countries are largely primary copper producers and, apart from South Africa and possibly Morocco, their environmental management standards of copper production are, on average, not likely to be as high as in EU. The factor of external cost estimate for these African countries with reference to EU is therefore much higher, possibly ranging from 1.6 to 3.1 (or higher) estimated for South American countries and Russia. The Figure below shows that 96% of the 53 African countries are emitting green house gases (GHGs). Data for Somalia and Equatorial Guinea could not be found. In the African countries producing cement (58%) and coal (25%), and also those countries with large scale operations running non-cement processing plants (68%), the GHGs are likely to be significant. Apart from estimates of emissions based on coal for South Africa, quantitative information to directly attribute the emissions to mining activities could however not be found. To minimize energy related impacts, effort should be directed at development and utilization of renewable energy sources including hydro power, liquid biofuels, wind, solar and tidal wave.

1

Kuhndt M, Tessema F, and Martin H. 2008. “Global Value Chain Governance for Resource Efficiency Building Sustainable Consumption and Production Bridges across the Global Sustainability Divides”. Environmental Research, Engineering and Management, 2008. No. 3(45), P. 33-41. 2 Stäheli ME. 2008. “External Costs in the European Copper Value Chain - A Comparison of Copper Primary Production and Recycling”. MSc Thesis, MAS Management Technology and Economics MTEC/BWI, Swiss Federal Institute of Technology Zurich, Switzerland. May.

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Mining industry physically occupies a significant amount of land. For example, the Figure below shows that mine dumps are experienced in 96% of the 53 African countries. In Zambia alone, dumps in the highly populated Copperbelt Province take up 220,000 hectares by large scale copper mines. In South Africa, gold mining alone has degraded about 247,000 hectares of land in highly populated areas. The cumulative dumps by small scale mining activities are also a major source of concern, and the land degraded has not been quantified. When other mining degraded features such as areas covered by acid mine drain, inaccessible mine caving areas, sulphur dioxide plume areas as well as pits and quarries are taken into account, the land used and degraded by mining is cumulatively much greater. There is scant information on this degraded land coverage.

SOURCE: Derived from Table 6.9 of this report.

Acid mine drainage (AMD) or signs thereof, a very dangerous, sometimes irreversible and very expensive when it occurs is reported in 13% (see Figure above) of African countries. Consequences, especially in relation to water resources and soils are high when and where AMD occurs. Air and water pollution from mining industry in Africa are significant concerns (see Figure above). Hundred percent (100%) of the 53 African countries are experiencing some type of air pollution from various sources of mining activities including dumps, gas emissions from smelters and mercury in artisanal/small scale gold processing activities. Ninety-eight percent
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(98%) of the countries are experiencing pollution of water from the industry due to pollutants such as mineral processing run-offs, heavy metals and chemicals. Small scale gold mining and processing is carried out in 34 (64%) while cement production is prevalent in 31 (58%) of the African countries (Table 6.10 and Figure 6.16). Both of these activities pollute the environment with mercury. Environmental pollution and negative health effects due to poor use of mercury as well as degradation of water resources is a major source of concern. Intensified training, awareness and making available alternative sources of income and cement substitutes are among the measures required to minimize the problem in these areas. Uranium risk areas have been reported in countries including Congo D.R., Gabon, Madagascar, Niger, South Africa and Zambia. In these countries, there is a tendency to keep environmental pollution and the resulting health impacts a closely guarded secret [http://www.wise-uranium.org, Wise:Uranium, 2009]. The levels of pollution are dangerously high in all the five countries, and the likely health impacts could also be high. In South Africa, for instance, foods grown in the uranium areas have been found to be significantly polluted [National Nuclear Regulator, 2007]. Uranium mining/contamination (Table 6.10 and Figure 6.16) is reported in 9 (17%) of the African countries while exploration is reported in 32 (60%) of the countries. If all these exploration activities result in productive mines, the scale of uranium contamination could scale up and become wide-spread over the African continent if appropriate measures are not taken. Uranium related environmental degradation and health effects are very dangerous and long lasting. Appropriate measures are needed to stem the problem in the bud. Africa must intensify a shift from primary production to increased value addition. At primary production level, African countries must employ a “balance sheet” approach which, for every investment, must indicate a prior NET GAIN economically, environmentally and socially, before accepting the investment. Most of the social and environmental regimes for mining industry in Africa are very weak in their current form. In some cases, even those that are relatively comprehensive suffer from inadequate enforcement due to reasons including inadequate resources, corruption and complacency. With appropriate environmental and mining codes, there are many areas in the minerals value chain as well as those associated with environmental degradation which can be targeted for socio-economic inclusion. The latter would be “turning waste into gold”. The minerals sector offers immense opportunities for Africa to derive benefits from it. Based on the analysis of this study, it is recommended that various actions are taken to improve on the socio-environmental performance of the mining industry in the continent. The following are some of the main ones:

A “Balance Sheet” approach be applied when accepting mine investments. The balance sheet should ensure that the mineral host community knows in advance the economic, social and environmental NET GAINS to be derived from a project. Otherwise the project must not take place.
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• •

Current social and environmental regimes must be deepened to include those respective aspects which are weakening delivery of benefits in mining industry. Capacity should be developed to capture the opportunities of “turning waste into gold”. Some of what are considered environmental liabilities can be turned into business opportunities. As part of CSR, mine developers must assist local communities with capacity to develop mine investment balance sheet from a host community point of view. In addition to building skills for best small scale mining practices, capacity to create alternative income generation activities in small scale mining areas and beyond must be developed to minimize the cumulative environmental degradation by this sector. There is need to close the many gaps in environmental information in Africa. It is difficult to carryout mitigation measures without quantified evidence. To minimize environmental burden, Africa must go beyond production of primary mineral products. Appropriate incentives must be encouraged for value addition in mineral producer countries.


• •

Nearly all the above recommendations can be implemented at both national and regional levels.

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Contents
ACKNOWLEDGEMENT................................................................................................. 2 EXECUTIVE SUMMARY.................................................................................................3 Contents..................................................................................................................... 7 1 INTRODUCTION......................................................................................................11 2 THE MINERALS OF AFRICA ....................................................................................13 3 DEFINING “CONTRIBUTION” OF MINING TO DEVELOPMENT...................................15 3.1 Host Country Participation in Key Mine Investment Inputs..............................17 3.2 Participation in the Mine Production Process...................................................17 3.3 Revenues and Provision of Services to Mining Industry ..................................17 3.4 Participation in Management of the Altered Environment due to Mining Industry.................................................................................................................17 4 CONTRIBUTION OF MINERALS TO DEVELOPMENT IN AFRICA.................................21 4.1 Minerals Industry.............................................................................................22 4.1.1 Contribution by large scale mining to national development....................23 4.1.2 Contribution by artisanal and small scale mining to national development ........................................................................................................................... 23 4.2 Some Factors Affecting Mineral Wealth Contribution to African Development 25 4.2.1 Corruption and governance challenges.....................................................25 4.2.2 Poor business environment.......................................................................26 4.2.3 Inadequate corporate social responsibility................................................27 5 INITIATIVES AND TRENDS IN MINING AND MINERAL RESOURCE FLOWS................29 5.1 Global Trends.................................................................................................. 29 5.2 Trends in Mineral Resource Flows in Africa ....................................................31 5.2.1 Metallic minerals.......................................................................................31 5.2.2 Gemstones ...............................................................................................33 7

5.3 Implication of Mineral Resource Flows.............................................................34 5.3.1 Resource productivity during extraction...................................................35 5.3.2 Hidden flows in resource extraction..........................................................35 5.4 Current Trend in Mining and its Impacts on Security of Supply and Access....37 5.5 Improving Resource Productivity in Global Value Chain for Extraction Locations .............................................................................................................................. 39 6 ENVIRONMENTAL AND SOCIAL IMPACTS DUE TO MINING IN AFRICA.....................41 6.1 General............................................................................................................41 6.2 Mining, Greenhouse Gas Emissions and Climate Change................................42 6.2.1 Mining industry process and greenhouse gas emissions...........................43 6.2.2 Energy for mining and greenhouse gas emissions....................................46 6.2.3 The GHG global status for Africa...............................................................49 6.2.4 Energy options for mining industry in Africa............................................51 6.3 Landuse and Landuse Change.........................................................................53 6.3.1 Mining industry and forestry.....................................................................53 6.3.1.1 Direct use of forestry products by mining industry.............................53 6.3.1.2 Mining stimulated forestry depletion...................................................54 6.3.1.3 Mining stimulated economic benefits from forestry use.....................56 6.3.2 Land cover by surface mine facilities and dumps......................................56 6.3.3 Inaccessible hazardous land......................................................................58 6.3.4 Land polluted by mine operations.............................................................58 6.4 Water Use and Acidification.............................................................................58 6.4.1 Mining industry and inland water..............................................................60 6.4.2 Mining industry and marine water.............................................................63 6.4.3 Acidification of water environment............................................................63 6.5 Ecotoxicity and Health Effects on Humans......................................................64 6.5.1 Mining industry and mercury ....................................................................65 8

6.5.1.1 Mercury release in gold mining in Africa.............................................67 6.5.1.2 Mercury in cement industry................................................................68 6.5.2 Uranium and the environment..................................................................69 6.5.3 Other toxic chemicals from oil and non-oil mining industry......................73 6.6 Summary on Pollution Due to Minerals Industry..............................................79 7 THE EFFICACY OF ENVIRONMENTAL AND SOCIAL REGIMES IN MINING INDUSTRY IN AFRICA......................................................................................................................86 7.1 The Essence of an Environmental and Social Regime in Mining Industry........86 7.2 Profiling Social and Environmental Regimes for Mining Industry in Africa.......87 7.2.1 Objectives of the social and environmental regimes for mining industry..87 7.2.2 Measures to achieve intended results......................................................92 7.2.3 Dynamically tracking the state of intended results during the mine project ........................................................................................................................... 97 7.2.4 General observation..................................................................................98 8 “MAKING GOOD OUT OF BAD” ENVIRONMENTAL MANAGEMENT IN MINING INDUSTRY...............................................................................................................100 8.1 Reprocessing of Old Mine Dumps..................................................................101 8.2 Landscaping of Mine Dumps..........................................................................102 8.3 Consultancy and Contract Work Services .....................................................104 8.4 Environmental Education..............................................................................104 8.5 Greening Mining Towns.................................................................................105 8.6 Construction Material from Mine Dumps.......................................................106 8.7 Mine Area as Tourist Attraction and Recreation Centers...............................107 www.kingsgate.com.au/links/gold-mine-tourist-attractions.htm........................107 9 CORPORATE SOCIAL RESPONSIBILITY..................................................................109 9.1 General..........................................................................................................109 9.2 Public Participation in Mining Activities ........................................................110 9

9.3 Some Best Practices of Corporate Social Responsibility................................111 9.3.1 Material stewardship ..............................................................................111 9.3.2 Awareness and preparedness for emergencies at local level .................116 10 ENHANCING THE POSITVE DELIVERY OF THE MINING SECTOR..........................118 10.1 The Weak-Link Identification and Mitigation in Mining Industry..................118 10.2 Mining Industry in Africa Amid Current World Economic Crisis ...................120 11 CONCLUSIONS................................................................................................... 122 12 RECOMMENDATIONS.........................................................................................123 REFERENCES...........................................................................................................125 APPENDICES........................................................................................................... 132

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1

INTRODUCTION

The continent of Africa is home to almost all of the important world minerals. Mining of these minerals in the continent at commercial scale became significant in the 19th century following colonization in the 18th century of the continent by the European powers, mainly the Belgian, British, French, German, Italian, Portuguese and Spanish empires. Exploitation of resources and establishing outlet markets for European products were among the main driving forces for the scramble for Africa3. Historically, Africa has not experienced a net gain from the exploitation of its natural resources. The trend by investor countries has largely been that of
• • •

exploiting/extracting resources from Africa; taking these resources from Africa to investor home countries in Europe, America or Asia for downstream processing; and exporting finished products to Africa.

Exploitation of mineral resources results in significant environmental degradation. Actions such as outlined above mean that wealth taken out Africa does not match the damage caused in host communities/countries, except perhaps for those countries in Africa where the colonizers envisaged creating their permanent homes. The following quote summarizes this view4: “With regard to infrastructural facilities and development, the mining towns of Obuasi, Tarkwa, Prestea, Konongo, among others, provide a classic picture of the typical mining towns in Ghana. These towns are far from affluent, an aberration of what communities endowed with mineral resources, are or should look like. The towns are very much unlike other gold mining towns such as Johannesburg in South Africa, Noranda City in Ontario, Canada, Reno in the USA or Perth in Australia, where the scars of mining are sealed by the beauty and riches of these cities, built out of mining”. Many African countries have become increasingly aware of this scenario, and it has therefore become most appropriate and urgent to evaluate past experiences in natural resources development in Africa and to devise best practices which ensure that mineral resources contribute to the economic and social development of host societies in a sustainable and equitable manner. In 2007, UNEP established the International Panel for Sustainable Resource Management (Resource Panel) as a first step towards addressing the need to tackle resource efficiency challenges for both renewable and non-renewable resources from a life-cycle perspective. The overall objective of the Resource Panel is to provide independent scientific assessment on environmental impacts due to the use of natural resources over the full life cycle and provide advice to governments and international organizations on ways to reduce these identified impacts.
3

4

http://en.wikipedia.org/wiki/Scramble_for_Africa#Causes_of_the_Scramble_for_Africa http://apps.twnafrica.org/Blog/?c=environment&p=1

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Consequently, the Big Table on “Managing Africa’s Natural Resources for Growth and Poverty Reduction” which was held on February 2007 led to the establishment of International Study Group (ISG) to review Africa’s mining regimes. Under the Big Table it has been suggested that it is crucial to evaluate past experiences in natural resources development in Africa and put forward recommendations as to how mineral rich countries of Africa might best ensure that their natural resources contribute to the economic and social development of their societies in a sustainable and equitable manner [ECA, 2007]. The overall objectives of the ISG to Review Africa’s Mining Regimes are to review the extent to which Africa’s current mining regimes promote sustainable development of the mining sector as well as the broad national and regional economy, and to propose key elements for future change in the form of templates, toolkits and guidelines to formulate the next generation of Africa’s mining regimes. This study on mining and environment is part of a broader study. This study looks at the environmental sustainability component of mining regimes in Africa. The main objective of the study is to prepare a comprehensive review report on Mining and Environment in Africa that will feed into the general report of the International Study Group (ISG) on Mining Regimes in Africa and the work to be done under the International Resource Panel (IRP). The Terms of Reference for the task leading to this report can be found in Appendix 1.

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2

THE MINERALS OF AFRICA

The African continent houses a diverse mix of minerals including aluminum, antimony, chrome, coal, cobalt, copper, diamond gold, lead, molybdenum, nickel, oil and natural gas, palladium, platinum, coltan, ruthenium, silver, tantalum, tin, uranium, zinc and gemstones such as emerald, tanzanite, aquamarine, garnet and amethyst. Furthermore, Africa has significant resources of coal. Minerals are widely distributed on the African continent. Table A2.1 in Appendix 2 gives a summary of major mineral deposits which may be either developed or undeveloped. From the Table, it can be observed that minerals, to various degrees, are present in every African country.

Figure 2.1: Map of some mineral deposits of Africa5.

Looking at the non-oil mineral facilities map (Figure 2.1), the largest cluster of mining activities occurs mostly in the belt extending from southern Africa through central to western Africa, and also the northern Africa part covered by Morocco and Tunisia. Africa is a global leader in the production of platinum group metals (PGMs), phosphate, gold, platinum, vanadium, cobalt, diamonds and aluminium, as shown in Table 2.1. The table also shows that Africa is a world leader in reserves of the same minerals. A more systematic and comprehensive geological survey may bring to light a much greater resource base.

5

http://www.aeon.uct.ac.za/content/pdf/join%20us/p5053.viewpoint42.pdf

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Table 2.1 Some leading African mineral resources, 2005 [ECA and African Union. 2008].

MINERAL Platinum Group Metals Phosphate Gold Chromium Manganese Vanadium Cobalt Diamonds Aluminium

AFRICAN % OF WORLD RANK PRODUCTION 54% 1
27% 20% 40% 28% 51% 18% 78% 4% 1 1 1 2 1 1 1 7

AFRICAN % OF WORLD RESERVES 60+%
66% 42% 44% 82% 95% 55+% 88% 45%

RANK 1
1 1 1 1 1 1 1 1

Also Ti (20%), U (20%), Fe (17%), Cu (13%), etc.

Regrettably, most of Africa’s minerals are presently exported as ores, concentrates or primary metals (Photograph 2.1), without significant downstream processing to add value (Photograph 2.2). There is thus a large potential to increase revenues and employment through mineral beneficiation on the continent.

Copper cathode

Copper cables

Photograph 2.1 EXAMPLE of primary metal

Photograph 2.2 EXAMPLE of fabricated metal

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3

DEFINING “CONTRIBUTION” OF MINING TO DEVELOPMENT

The African continent, like all other landmasses, comprises the six essential “mother” resources including land, air, water, flora, fauna and minerals (intrinsic in land) which singularly or in multiple combinations provide the basis for socio-economic survival of the continent’s inhabitants. It is from these resources that the continent derives goods and services for local or international consumption. Land-based resources are terrestrial features that exist above the mean sea level. They include landforms such as plains, valleys, plateaux, mountains, deltas and peninsulas, islands and basins; soils; and plants and animals. In terms of economics, land resources also include mineral and fossil fuel deposits, natural and farmed timber, crops, animals and fish [Hamblin, 1998]. Land is a critical factor in natural and human managed production systems, influencing the level of natural capital, and social and economic development. These resources are important at all levels ranging from household to global [UNEP, 2006.]. Activities that depend on land include agriculture and forestry; development and expansion of urban infrastructure such as transportation; extraction of oil and non-oil minerals; development of tourism and recreation; and disposal of domestic and industrial waste. Land is critical in the cradle-to-grave cycle of both living and non-living things, providing habitats and other ecological goods and-services, sustaining investment and human livelihoods, and absorbing solid and liquid waste, pollutants and pesticides [UNEP, 2006; IUCN & ICMM, 2005]. Land is critical to all aspects of human well-being. It provides material resources for livelihoods, food and health, provides security against environmental shocks and future uncertainties, and underlies many social and cultural systems. Access to land and the resources it offers is at the core of enhancing opportunities and choices, particularly for those who depend more directly on it. The above suggests that a natural resource based development which is undertaken without evaluation of the best possible option, singularly or as a combination out of land, air, water, flora, fauna and minerals (intrinsic in land) may be missing greater opportunities. Therefore countries that have prioritized mineral exploitation over other natural resource options fall in this category of likely missed opportunities. Ideally, natural resource accounting and economic simulation should be carried out to determine which of the natural resources, singularly or severally, would give a net gain (represented by “NET RESULT” in Figure 3.1) to the community/country/environment where target mineral resources are located. Therefore, only when a deposit of the target mineral in a locality is found to give a net gain, should it then be exploited. When can it be claimed that mining has contributed to national development? Assuming an analysis has been carried out which indicates that mine development in a locality turns out to be the best economic option, the next issue is to determine actions that would meet minimum expectations from a mine development by the mineral host communities. One example can be described as follows:
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Figure 3.1: The schematic illustration of the relationship between resources and inputs/outputs leading to net result (positive/negative)and environmental alteration (positive/negative).

In areas where mineral exploitation demands resettlement of communities, the whole process of resettlement should be addressed as a business. Each affected individual/community should as a minimum break even, so that their socio-economic security (SES) in their new locality should as a minimum be equal to their original state [Sinkala, 2002]. If this minimum is exceeded, the mine development can be considered to have contributed to socio-economic development and poverty reduction.

The net gain must also translate downstream to national level, so that a situation must not arise where the mineral host country has experienced a net loss. In relation to contribution to national development by the minerals industry in host countries, there are four categories in the industry’s value chain from where this contribution can be derived (see Figure 3.1). These include:
• • • •

participation by the mineral host country in provision of key mine investment inputs; participation by the mineral host country in the mine production process; accrued benefits from outputs and provision of services in the value chain of the mineral production sector; and acquisition of environmental management skills through participation by the mineral host community in management of the altered environment, as well as the possibility for the community to acquire an improved environment (e.g. afforested mine area in arid regions).
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3.1

Host Country Participation in Key Mine Investment Inputs

A host country can benefit by participating in key investment inputs including capital, technology, policy direction skills and market. For capital, the host country can be a shareholder in the investment. In relation to technology, the host country can participate in the development of the mineral exploitation technology so that the country is technologically equipped beyond just the prevailing mineral deposit being exploited. With regard to policy direction skills, the host country can use the opportunity to develop and contribute with key skills for the policy direction of the mineral exploitation. As for the market, the host country can be introduced to the minerals markets where the country can participate and be equipped with skills beyond the prevailing deposit being exploited.
Examples here include (i) Debswana, a diamond company equally owned by De Beers and the Botswana government, and (ii) the Royal Bafokeng Nation (RBN) in South Africa provides an example of a community, which appears to have done exceedingly well with its participation in mining operations conducted on its land [ECA and African Union, 2008].

3.2

Participation in the Mine Production Process

Participation by a host country in the production of mineral deposit can be in form of technical management and skills provision for the operations. Such skills are for the entire running of minerals industry so that, in case new viable deposits are discovered, the country has technical ability to manage their exploitation without being too dependent on outside expertise. 3.3 Revenues and Provision of Services to Mining Industry

Associated with the establishment of the mining industry are various mine investment outputs including revenues/taxes, development of human capacity, development of communication infrastructure, downstream processing and industry; and direct and secondary services to the industry in which nationals can participate. Benefits that can accrue to the host country due to the existence of the industry can be wide ranging, as indicated by the above outcomes and services. 3.4 Participation in Management of the Altered Environment due to Mining Industry

Environmental degradation due to mining industry is ranked as second after agriculture (intensive land cultivation, over-use of agricultural chemicals, slope ploughing, intensive irrigation, over-grazing)6’7. The environmental costs of mining, if not well handled, can be massive in terms of land conversion and degradation, habitat alteration and groundwater pollution. It is therefore cardinal that minerals host communities are literate about environmental issues and skilled to manage them. They are the ones who bear the consequences during and after mining activities occurring in their areas and therefore local capacity must developed for them to handle environmental matters beyond mine life. In some respects, such as arid environments, a once bare land may be greened and populated with fauna, to the benefit of host communities.
6 7

http://www.grid.unep.ch/product/publication/CEO-for-Internet/CEO/ch2_2_2.htm http://www.allbusiness.com/nonpoint-source-pollution/4973520-1.html

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In a closed economy, all key mine investment inputs; management of mine production process; accrued benefits from outputs and provision of services in the mineral production sector; and acquisition of skills by host communities to manage altered environment due to mining industry; must be 100% by and in the mineral host country. Gains can therefore also be 100%. In a globalised economy however, such a situation is mostly found in developed countries, but rare in developing countries. Producers are not necessarily consumers of the produced mineral products. Furthermore the huge investment capital, technologies, and/or skills required by some mining projects are in many cases way beyond many countries hosting minerals of interest. Mineral host countries can therefore only maximize gains to the best extent possible using various tools targeted at the four categories described above. In October 2008, the Economic Commission for Africa jointly with African Union developed an “Africa Mining Vision” with the theme: “Equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development”. Implementation of the vision will be done in a phased manner as shown in Figure 3.2, and there appear to be similarities between the principle discussed above and the ECA/AU vision. Section 1 of Article 16 of the Draft ECOWAS Directive on the Harmonization of Guiding Principles and Policies in the Mining Sector States that:
“Mining Rights holders in Member States shall conduct their mining activities in a manner that respects the right to development in which peoples are entitled to participate in, contribute to, and enjoy economic, social, cultural, and political development in a sustainable manner”.

Table 3.1 is an example of an evaluation table for traceable and quantifiable wealth creation options for mineral host communities/countries. From the table, we can compute the Net Result based on various tools which may be prescribed in development agreements. This approximate quantitative result would indicate the gains to be made by the mineral host country in the value chain of mineral projects, and whether such gains are worth the natural and social environmental damage that may be caused. Presently, it appears African countries have historically applied inadequate analyses of natural resource (mineral) development projects. As a result, there are many unaccounted net losses against mineral-host environments/countries during and after closure of mine operations. Such scenarios end-up becoming very costly [Boocock, 2002] for host countries to manage mine areas after mine closure. Examples here include South Africa [Department of Environment and Tourism, 2008] and Zambia [Makumba, 2007]. Although the process as described above to determine the best course of action when dealing with natural resources may appear to be laborious, “the benefits of early action to improve resource efficiency and sustainability outweigh the difficulties” [Mebratu, 2008]. The evident mine ruble, water and air pollution, land degradation and social disruption in mine areas versus “wealth” created by miners which mineral host communities have not felt has given rise to conflicts in such areas. Examples are Tarkwa gold mining in Ghana8 and fluorspar mining
8

http://www.earthworksaction.org/wassa.cfm.

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in Kerio valley in Kenya [Ogola, Mitullah and Omulo, 2002]. Mining regimes have to therefore be revisited for areas where they are inadequate.

Figure 3.2 Schematic resource-based African industrialization phasing (relative economic importance) [ECA and African Union. 2008].

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Table 3.1 Assessment of the value of development to the area/country of resource location

WEALTH CREATION ROUTE
Local Resource
Own resource

IDEAL ROUTE
Example Action Value
(Monetary equivalent)

OPTIONS IN A GLOBALISED ECONOMY
Example Action Value (Monetary equivalent)

LRideal
Evaluate development options, invest in resource and process and diversify locally. • • Fair share in investing company, Sell resource at a fair price.

LRsub

Production Inputs
Money/capital Technology Fair share Local parts manufacture. (NB: South Africa used this during apartheid rule) Full mastery of technology. (NB: These are on the investment side) Develop local capacity to manage market.

PIideal
• • • Local trust, Employee fair share. Parts supply,

PIsub

• Technology skills. • Technology know-how beyond
mere maintenance.

Skills

Product market

• Develop local capacity to
OPideal

participate in the market and retain.

Outputs
Revenues Skilled nationals Communication infrastructure Downstream processing Direct industry services Secondary services Social amenities Most of the revenues reinvested in local economy Skills with highly versatile application beyond specific technology 100% constructed by local companies Local capacity to downstream process nearly 100% of all products from the mines All non-technology sensitive DIRECT services handled by local companies All secondary non-specialized services handled by locals All amenity services handled by locals

OPsub
• Fair share of revenues through taxes, part investment in local economy. Skills empowering locals beyond specific technology. Local participation in infrastructure development. Capacity for semi-fabricates.

• • • •

Most non-technology sensitive DIRECT services to be handled by local companies. All secondary non-specialized services handled by locals All amenity services handled by locals

Environment
The altered environment performs better than before mining. Local community provided with skills to manage the environment.

Eideal
Best practices applied in environmental management, resulting in minimal environmental liabilities.

Esub

Environmental alteration

Total =

NRideal

Total =

NRsub

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4

CONTRIBUTION OF MINERALS TO DEVELOPMENT IN AFRICA

Africa is home to almost all minerals of the world, albeit in different amounts in relation to the global resource base. Based on current geological mapping, the continent is world leader in both production and reserves in some of the minerals such as diamonds, cobalt, aluminium, PGMs and gold, as shown by Table 2.1. The continent also has significant resources of coal, of which South Africa is the largest producer and exporter. Minerals constitute among the most valuable exports of Africa. The largest cluster of mining activities lies along the belt extending from southern Africa through central to western Africa, and in north Africa in Morocco and Tunisia. Table A2.2 shows that countries that are involved in mining of minerals, and whose exports from these commodities rank among the top 3, include:

Southern Africa Botswana, Congo DR, Lesotho, Mozambique, Namibia, South Africa, Tanzania and Zambia, Zimbabwe. Central Africa Central African Republic and Gabon. East Africa Djibouti (urban mining) and Rwanda. North Africa Egypt, Morocco and Tunisia. West Africa Benin, Ghana, Guinea K, Mauritania, Niger, Senegal, Sierra Leon and Togo.
Djibouti inclusion in the list is because the country is practicing urban mining and export of ferrous waste and scrap. Table 4.1, derived from Tables 6.9 and A2.2, shows that 24 (45%) of the 53 African countries rely on minerals as the largest exports from their countries, thus earning these countries foreign exchange for various socio-economic activities. Considering Sub-Sahara Africa alone, 21 (40%) of the 48 countries rely on minerals as the leading exports.

21

Table 4.1 Number of countries whose minerals rank among the top 3 export commodities (Derived from Table 6.9)
REGION LARGE SCALE MINING SMALL SCALE MINING MINERALS EXPORT RANK 1 - 3

SOUTHERN AFRICA (of 15) CENTRAL AFRICA (of 6) EAST AFRICA (of 10) NORTH AFRICA (of 5) WEST AFRICA (of 17) TOTAL (out of 53) = Prevalence (%)

13 3 8 5 12 41 77

14 6 10 4 17 51
96

9 2 2 3 8

24
45

4.1

Minerals Industry

Mining as an industry and its products constitute a major bedrock of industrial development of any country. The equipment made from processed minerals used in construction and communication systems and the mineral-derived chemicals for various applications in pharmaceutical and agricultural industry, to name just a few, have given a landscape to the world as we know it to-day. Various countries derive benefits directly from mining or from downstream processing of minerals. In the Southern African Development Community (SADC), for example, the mining industry contributes about 60% of foreign exchange earnings, 10% of Gross Domestic Product (GDP) and 5% of employment. The economies of Angola, Botswana, the DRC, Namibia, South Africa, Tanzania, Zambia and Zimbabwe get between 22% and 96% of their foreign exchange directly from mining and mineral exploitation [UNEP 2006, USGS9]. The above include Angola’s oil and gas which in 2006 contributed about 52% and 96% of that country’s GDP and exports respectively, while diamonds contributed about 3% to the country’s GDP9. In West Africa, growth in the economies of Burkina Faso, Guinea, Ghana, Mali and Sierra Leone has been attributed to expansion in mining [UNEP, 2006]. Mining of gold, phosphates, iron, uranium and diamonds have offered opportunities for development in the region. Although Africa is a mining giant with impressive production in some countries, the industrial base is insignificant, and the majority of its people live in growing poverty. There is a need for Africa to move from being a major exporter of primary mineral resources to strengthening its industrial and manufacturing base. Only a few countries including South Africa, Botswana and Namibia have utilized mineral wealth to significantly improve the economic landscapes of their countries, for the benefit of their people.

9

http://minerals.usgs.gov/minerals/pubs/country/africa.html#ao

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4.1.1

Contribution by large scale mining to national development

Large scale mining is taking place in 41 (77%) of the 53 African countries (Table 4.1). Contribution by large scale mining is through many avenues, such as those shown in Table 3.1 under “OPTIONS IN A GLOBALISED ECONOMY”, but to various degrees in respective countries. In addition to tax collected by governments, large scale mining companies develop or stimulate development of infrastructure such as roads, railways, electric power generation and distribution, and telecommunications system, as well as social amenities such as schools, hospitals and recreational facilities. In addition, there are opportunities for nationals such as investing in shares in the mining companies and participating in delivery of services for mine operations. The industry also develops skills of nationals in various areas. These opportunities, if maximized along the principles stated in Chapter 3 and if well managed, have a very large potential to develop African countries. Practically, it is easier to control activities and monitor financial transactions of large scale mines than it is of artisanal and small scale mines. 4.1.2 Contribution by artisanal and small scale mining to national development

Artisanal and small scale mining in Africa have been in existence for centuries, but have increased since the mid-1980s due to opportunities created by trade liberalization. If we include quarrying for aggregate stone, sand and gravel, then artisanal/small scale mining operations occur in 51 (96%) of the 53 African countries (Table 4.2). It is estimated that about 20 million people depend on artisanal and small scale mining on the continent. In a number of countries, including Mali, Tanzania, Ghana, South Africa, Zambia and Mozambique, the role of artisanal/small scale mining in improving livelihood for rural poor communities has been recognized and has accordingly been factored into national planning strategies [UNEP, 2006]. Artisanal and small scale mining have been a major source of income which increases the wealth of rural populations where, in some cases, the income supports investments in agriculture and other socio-economic activities. This increases the options available to rural communities.
Table 4.2: Prevalence of small scale mining activities in Africa [FROM Table 6.9 of this report] NUMBER OF COUNTRIES (% REGION WITH SMALL SCALE ) MINING ACTIVITIES SOUTHERN AFRICA (out of 15) 14 93

23

CENTRAL AFRICA (out of 6) EAST AFRICA(out of 10) NORTH AFRICA(out of 5) WEST AFRICA(out of 17) Total (out of 53) = Percentage (%) =

6 10 4 17 51 96

10 0 10 0 80 10 0 96

The biggest problem with this scale of mining industry is that it is hard to regulate in most forms by government. The worst cases are where licensing excludes traditional/local authorizes who are close to sites of the mineral resources and may therefore play a major role to manage the industry if they were given the mandate. In such situations, indigenous communities with traditional land rights are powerless to stop rushes of artisanal miners. This scale of industry is therefore largely an unregulated environment, to the detriment of the greater community and economy. Apart from difficulties in collecting tax, the industry pollutes both the environment and social fabric, destroys land which thereafter may be lost for other economic purposes, and the people engaged in the industry expose themselves to physical health risk as can be seen in Photographs 4.1 (in Senegal) and 4.2 in South America.

Photograph 4.1: Reed covered small scale mine shafts on a hillside hosting hundreds of artisanal mines, near the village of Tenkhoto, Senegal10.

Photograph 4.2: Gold panning in South America, indicating a common problem for developing countries11.

10
11

http://abcnews.go.com/International/WireStory?id=5551166&page=3. http://www.sph.umich.edu/fogartysa/bcAgenda2005.pdf.

24

Photograph 4.3: A 7-year old child 7 sells gold for 5,000 Guinean Francs (approx. $1) in the Fatoya mine 12 region, in Guinea on April 25, 2008 .

Photograph 4.4: Children and women reworking old dumps and washing for gold in Murrupula, Nampula province, Mozambique [SANTREN and ITDG, 2001].

Furthermore, the industry quite often attracts child labour, and the children of the women folk involved in gold mines are subjected environments full of mercury vapour13. 4.2 4.2.1 Some Factors Affecting Mineral Wealth Contribution to African Development Corruption and governance challenges

It has been observed that many resource-rich countries in Africa face special governance challenges related to weak and poorly enforced law and policy [Pedro M.A.A, 2002]. Countries dependent on mining that have weak political institutions often have higher levels of inequality and poverty than non-mineral economies at similar income levels. Such countries often lag behind in overall development, with higher levels of child malnutrition, lower educational outcomes, and even shorter life expectancy [UNEP, 2006]. With the help of Corruption Perceptions Index (CPI), the last column in Table A2.2 compares corruption levels in African countries for the years 2007 and 2008. Corruption Perceptions Index is a rating published by Transparency International which orders the countries of the world according to "the degree to which corruption is perceived to exist among public officials and politicians". The organization defines corruption as "the abuse of entrusted power for private gain". A higher score means less (perceived) corruption14. The performance for the years 2007/8 is summarized in Table 4.3, from which it can be observed that 25 (47%) out of the 53 countries became more corrupt while 24 (45%) became less corrupt. Corruption levels for 4 (8%) of the countries did not change over the period.
Table 4.3: Performance in corruption levels in African countries for 2007/2008 (From Table A2.2)

12

http://abcnews.go.com/International/WireStory?id=5551166&page=3 http://www.dol.gov/ILAB/media/reports/iclp/tda2004/senegal.htm. http://en.wikipedia.org/wiki/Corruption_Perceptions_Index

13
14

25

REGION SOUTHERN AFRICA (out of 15) CENTRAL AFRICA (out of 6) EAST AFRICA(out of 10) NORTH AFRICA(out of 5) WEST AFRICA(out of 17) Total (out of 53) = Percentage (%) =

NUMBER OF COUNTRIES WITH REDUCED CORRUPTION 7 0 4 3 10 24 45

NO CHAN GE

NUMBER OF COUNTRIES WITH INCREASED CORRUPTION 8 5 5 1 6 25 47

0 1 1 1 1 4 8

4.2.2

Poor business environment

Africa ranks the most difficult continent in which to do business, as shown by Table 4.4 where the larger the number means the more difficult it is. For the period 2006/7, the average rank of African countries was 136 among 178 countries. Four African countries including Mauritius at 32, South Africa at 35, Namibia at 43, and Botswana at 51 had ranks in the top third. Kenya rose to 72 and Ghana to 87. But all the others had ranks of 90 or higher. The significance of this is that having mineral resources is not sufficient, and that it is important to create an environment in which business by both local and foreign investors must flourish, and the money earned from these investments channeled appropriately in social and economic support infrastructures in order for the benefits from the resources to trickle down to nationals. Many African countries have recognized the importance of improving business environment. Consequently about 46 Sub-Saharan countries introduced at least one business environment reform by 2006. Ghana and Kenya were among the top 10 reformers in the world in 2006/07. Eleven (11) countries introduced reforms to reduce the time and cost needed to start a business. For example, Burkina Faso created a one-stop shop for business entry, minimizing procedures from 12 to 8 and time from 45 to 34 days [World Bank, 2007].
Table 4.4 Rank of average ease of doing business, by region, 2006/7 [World Bank, 2007].

Region East Asia & Pacifi c Europe & Central Asia Latin America & the Caribbean Middle East & North Africa South Asia Sub-Saharan Africa

2006 76 77 87 96 107 136
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Quality of public institutions is judged by law and order, corruption level, court efficiency, and quality in the provision of public services. Corruption in particular remains a serious obstacle throughout African countries and is ranked as one of the top five overall constraints (Figure 4.1). This is the view held among business owners, irrespective of gender and firm size. The above scenario is another indication of one of the contributing factors leading to poor performance in delivering goods and services in the affected countries. According to the World Bank report for 2007 on African Development Indicators, performance indicators show that a 10% improvement in the objective measure of corruption and regulation is associated with about a 2% increase in productivity [World Bank, 2007]. To maximize the benefits of increased economic growth, countries must build stronger governance structures and strengthen accountability and transparency as well as eliminate graft.

Figure 4.1 Highest ranking constraints to doing business in Africa [World Bank, 2007].

4.2.3

Inadequate corporate social responsibility

African countries hosting mineral resources continue to experience poor corporate social responsibility from the minerals industry. Reasons include inadequate development agreements signed by host countries due to poor negotiation skills by the countries and the political expedience to attract jobs for local people. For most corporate decision makers, the cardinal issue narrows to whether their decisions optimize share value. The corporate responsibility message is now widely accepted by most leading companies, not only because they know they may be punished by their customers if they do not appear to be trying hard to be green, but also because it is profitable. A green business outlook is more than just a “window dressing” action. Evidence suggests that corporate companies applying higher levels of social responsibility are associated with higher share values. A report released in July 2007 by Goldman Sachs, one of the
27

world’s leading investment banks, showed that in the six sectors covered including energy, mining, steel, food, beverages, and media; companies that have sustained competitive advantage and outperformed the general stock market by 25% since August 2005 are those that have demonstrated leadership in implementing environmental, social and governance policies. Over the same period, 72% of these companies also outperformed their peers in the same industries [UNEP, 2008].

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5

INITIATIVES AND TRENDS IN MINING AND MINERAL RESOURCE FLOWS

The increasing scarcity of minerals which are easy-to-reach and extract, the just-ended short era of global high demand for mineral resources, and the need to understand the cradle-to-grave fate of minerals resources for the purposes of environmental management have prompted high level directive to carryout studies on global mineral resource flows. Study of the global metal flows are in the centre of the 3R, namely Reduce, Reuse, Recycle Initiative proposed at the G8 Sea Island Summit in 2004 by Japan and officially launched at the Ministerial Conference on the 3R Initiative in Tokyo in 2005. The importance of increasing resource efficiency through environmentally sound management in each country and establishment of the international sound material-cycle society through the 3R initiative was reiterated at the subsequent G8 Summits. The major world economies were urged to support and collaborate with developing countries with the aim of establishing an international sound material-cycle society [Graedel et al, 2008]. In this regard, metals refined from mineral processing activities are high value resources. These resources can easily be reused and recycled. By undertaking metal reuse and recycling activities at global level, we will be closing the loops, turning waste into resources, and thereby minimize environmental impacts, safeguard the availability of metals, minimize metal prices, and promote meaningful and safe jobs for poor people in developing countries. Some G8 Governments have laws on recycling, for example Germany and Japan. These countries have observed that a significant fraction of metals never come back into the cycle and there is need to know the fate of these metals. There is also need to know which environmental impacts can be offset by recycling in comparison to mining, and how resource efficiency world-wide can be enhanced by more and better reuse and recycling activities [Graedel et al, 2008]. To this effect, UNEP has constituted various expert groups to: • • • 5.1 Assess the quantity of metal stocks currently in use or landfilled and provide estimates as to when in the future and what amounts will re-enter circulation; Assess the current metals reuse and recycling activities on a global scale with regard to their resource efficiency, including environmental and other relevant sustainability impacts; and Describe current global metals flows and provide the scientific evidence that recycling metals is better for the environment than mining them. Global Trends

Until a few months ago, the world experienced, more than ever before, a record high cereal, fuel and other commodity prices. Reasons include a growing global demand for materials more especially in the emerging economies, and also increasing concerns about supply security and sustainability of resource use. This kind of scenario created significant macroeconomic consequences such as inflation, and further environmental challenges associated with the changing material flows both within and among countries. Decisions about technological development and innovation are, among others, influenced by prices. As a result, finding a more sustainable and efficient way to extract and use natural
29

resources, have become critical considerations, thus adding to the long-standing concerns about environmental impacts. These realities create major economic, environmental and social challenges for our societies and the international community. The question is how the world can sustain long-term economic growth and wellbeing and, at the same time, ensure the sustainable management of our natural resources and reduction in environmental pressures. Since 1980 the global resource extraction has increased by half and is now about 60 billion tones, and expected to reach 80 billion tonnes in 2020]. Of the current total extraction of natural resources, 40% is by the OECD countries [Padoan, 2008. OECD countries, with only 18% of the world’s population, consume nearly 50% of global natural resources. However, there are significant differences between countries and regions. For example, the OECD-Europe imports over 70% and OECD-Asia 99% of the metal resources they consume. Consumption in the fast growing developing economies of Brazil, Russia, India, and China (BRICs) is also increasing rapidly. For instance, China alone accounts for half of global cement consumption and about a third of global steel, coal, copper, tin, zinc, meat and cotton consumption. While per capita material consumption in the BRICs and other non-OECD countries is still well below the level of the OECD countries, the production and consumption patterns are growing. Looking ahead, a global adoption of a “western” lifestyle and consumption pattern would reach the physical limits of the planet, for a number of resources. Improving the resource efficiency would not improve this scenario, but is would be good for the environment. The negative environmental impacts associated with the extraction, use and end-of-life management of natural resources would reduce. The measure would also help avoid situations where valuable materials contained in waste are disposed of and ultimately lost for the economy. Furthermore, this would help to ensure that the consumption of resources and their associated impacts do not exceed the carrying capacity of the environment. Improving resource efficiency would make the relationship between economic growth and resource use less linear. It would also lead to greater energy and water efficiency. There are a number of initiatives that are addressing the issue of resource efficiency at the global, regional and national levels, and also in both public and private sectors. The G8 countries have had this as an agenda item at their past five summits. The OECD Council adopted recommendations on resource productivity in 2004 and 2008. The 2008 Council recommendation was made public in 2008 after the OECD Environment Ministers’ Meeting. The OECD has also just published a policy-maker’s guide on measuring material flows and resource productivity. And in 2007, UNEP set up an International Panel on Sustainable Resource Management. The EU adopted thematic strategies on the sustainable use of natural resources as well as on waste prevention and recycling in 2005. Most OECD countries address efficient management and sustainable use of natural resources. They have also launched initiatives to promote waste prevention, sustainable materials management, integrated product policies and the “3 R” (reduce, reuse & recycle) Initiative. China has recently adopted a law on the “circular economy” [Padoan, 2008].

30

The business sector has for its part established stewardship programmes for materials and products, invested in R&D and uses advanced technologies and non-technological innovation to increase materials and energy efficiency in both production and consumption phases. It also promotes eco-design and coherent materials supply and use systems. Sustainable resource use is further supported by international efforts to manage natural resource rents in a more transparent way and to promote good governance in extractive industries (e.g. the OECD Guidelines for Multilateral Enterprises) [Padoan, 2008]. 5.2 5.2.1 Trends in Mineral Resource Flows in Africa Metallic minerals

Figures 5.1 and 5.2 clearly show that Africa is more of a supplier of raw material than a destination. Africa is more a buyer of finished goods made from the same material originally sent to industrialized countries that benefit more by adding value. The addition in monetary value when minerals are further processed is illustrated by Figure 5.3 using iron ore, where it is shown that in the iron ore value chain, the iron ore worth about US$20/t FOB will appreciate to about US$450/t FOB when processed into steel.

Figure 5.1 A sketch indicating the global flow of copper, nickel, zinc, lead and other ores in 1998 [Moriguchi, 2008].

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Figure 5.2 A sketch indicating the global levels of reserves, mining, crude, consumption and supply of iron [Halada, 2008].

In Africa, most countries mining metallic minerals go as far as the Refining (Figure 5.4) stage (including smelting up to casting). Countries that are doing relatively significant downstream processing of semi-fabricates are Egypt and South Africa. For copper, for instance, Egypt the biggest importer of copper wire bars from Zambia manufactures mostly copper wire and transformers, but exports most of the copper products outside Africa. For 2006, countries importing copper wire from Egypt included France (52m US$), Jordan (16m US$), Hong Kong (9.1m US$), Ireland (6.1m US$), and China (1.2m US$). The biggest export by Egypt to SADC/COMESA region was 0.3 million US Dollars to South Africa. In the same year, South Africa exported: • • • • electric motors and generators (excluding generating sets) to Zambia (9.5m US$), Mozambique (2m US$), and Tanzania (3m US$); electric generating sets and rotary converters to Zambia (3.5m US$), Mozambique (3m US$), and Tanzania (7.3m US$); electric transformers, static converter (e.ge rectifiers) to Zambia (11m US$), Mozambique (3.5m US$), and Tanzania (2.6m US$); and insulated wire/cable to Zambia (11m US$), Mozambique (6.8m US$), and Tanzania (4.9m US$).

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5.2.2

Gemstones

Gemstone industry is largely a “preserve” of small scale miners. Apart from diamonds, tanzanite, emerald and amethyst which may be found in sufficiently large volumes of concentration, thus able to attract medium to large scale investment, the coloured stone (such as emerald, garnet, aquamarine, tourmaline, topaz, sapphire, ruby and opal) industry attracts mainly artisanal and small scale miners. Until about 10 to 15 years ago when sub-regional economic groups started promoting coloured stone cutting and polishing, almost all the stones were exported raw to countries such as Germany, India, Israel and Thailand. Recently, cutting and polishing is taking place to some level, but quality is yet to permeate to most levels of those involved in the industry. The money generated from downstream processed gemstones can be best illustrated by the disparity in affluence of observed through assets of source and destination of gemstones, as shown in Photographs 5.1 to 5.4. The damage caused to the environment, human health and social fabric in the areas where the gemstones are mined do not match the wealth generated by those involved in these areas.

Photograph 5.1: Unprocessed tanzanite trading

Photograph 5.2: Unprocessed amethyst trading

centre at Merelani, the tanzanite mining area in Arusha, Tanzania [Kanis and Sinkala, 2005].

centre called UK in Mapatizya, Kalomo District, Zambia.

Photograph 5.3:

Chanthaburi Gem Centre, Thailand, one of the renowned destination of

Photograph 5.4: Offices of a gemstone dealer in Chanthaburi, Thailand, a renowned destination of gemstones [Kanis and Sinkala, 2005].

33

gemstones [Kanis and Sinkala, 2005].

Figure 5.3: Iron ore value chain [Department of Minerals and Energy, 2007].

Figure 5.4: Mineral value addition [Adapted from Department of Minerals and Energy, 2007].

5.3

Implication of Mineral Resource Flows

Industrialized countries have generally achieved a relative decoupling in the direct resource consumption in recent years. Energy and materials are converted into ‘economic value’ more efficiently than ever, partly due to an international ‘burden shifting’: Resource intensive steps in global value chains have been relocated to other countries. These new global material flows
34

result from growing involvement of businesses in trade and the changing nature of the goods exchanged on global markets [Kuhndt, Tessema and Martin, 2008]. 5.3.1 Resource productivity during extraction

While more and more resource extraction is taking place in Africa, the resource use is largely as far as that associated with extracting and early processes activities (e.g. smelting and refining). During these activities, lower rates of resource productivity during extraction are frequently observed, leading not only to international burden shifting, but most likely letting these burdens grow [Kuhndt, Tessema and Martin, 2008]. Mineral extraction activities have increasingly been globalised (Figure 5.1) and moved to developing countries during the past decades. For instance, the total metal consumption in Europe in 2001 was about 2020 million tons, of which only 20% was produced domestically. Between 1970 and 2000, domestic ore extraction had fallen by about two thirds while domestic consumption was more or less stable. There is also an increasing trend to externalize the most materially intensive processes of raw material to developing countries. For instance, there is no more iron ore extraction in Germany due to the low grades (below 10%) compared to imported ores (about 60%) from developing countries, such as Brazil which currently meets 55% of Germany’s iron ore imports. The high global demand of base metals during the past few years has also led to usage of lower-quality ores. In turn, this has given rise to lower resource and energy efficiency, and has increased the waste tonnage and processing chemicals disposed in the environments of developing countries. High demand for base metals due to rapid industrialization of, especially, China and India has considerably increased Asia’s share in global resource extraction. For example, extraction of metal ores in China grew by 160% between 1980 and 2002. Latin American increase in domestic resource extraction is largely due to specialisation in resource-intensive export products, such as metal ores, where base metal extraction increased by 161% [Kuhndt, Tessema and Martin, 2008]. 5.3.2 Hidden flows in resource extraction

The significant shift in resource requirements by industrialized countries from domestic sources towards the use of imports from developing countries, the environmental burden due to resource use has also shifted to those regions, Africa included. While the resource productivity in industrialized countries is increasing, developing countries struggle to cope with the environmental impacts of rising extraction rates, including huge amounts of waste, wastewater and dissipative losses. About 98% of resource flows in the form of excavation residues occur in production countries. For example, copper is amongst the ten most resource-intensive materials. During the extraction process up to smelting, 1 ton of copper generates about [Kuhndt, Tessema and Martin, 2008]:

35

 100-350 tons of residues  50-250 tons of extraction waste

 30-100 GJ of energy  200-900 m3 of mineral dressing waste and slag; and  up to 300 Kg of S02 A survey by the Wuppertal Institute has indicated that metal ores and industrial minerals account for about 9% of the materials directly used and processed within the EU [Moll, Bringezu and Schütz, 2005]. This material is referred to as the Direct Material Input (DMI). However, when considering life-cycle-wide resource consumption associated with metals and industrial materials, the share was observed to increase significantly. The DMI accounts for 25% of the total materials required to satisfy the EU consumption levels. These “hidden flows” stem from resource intensive extraction and treatment activities outside Europe, especially in developing countries. Since the domestic extraction decreased on the account of imports, the overall total material requirement of metals and industrial minerals increased significantly throughout the 1980 - 2000 observation period. In reality, based on the definition presented in Chapter 3 (“DEFINING “CONTRIBUTION” OF MINING TO DEVELOPMENT”) above, the mining costs are not all there is when reflecting whether the country has “NET” gained or not. This is because besides having the “bragged about” beneficial effects to society, mineral production also induces unwanted side effects. Emissions of pollutants into air, water and soil can seriously impact human health, ecosystems, crops and infrastructures. As a consequence, additional “concealed” costs are inflicted on society without the society’s knowledge, which are not compensated through sales from mining industry by the producers and thus are not reflected by the mineral revenues displayed. This is in fact the case generally in all African countries, and is more prominent where the public is directly and indirectly paying for historical liabilities, noting that the attention we pay to environmental issues to-day is a recent human collective realization. To illustrate the aspect of “concealed” costs, a study was conducted in the European Union to assess the external cost above what buyers in EU pay for copper 15. In the study, 29 copper smelters and refineries located in Europe were considered. The copper production in the most important trading partner countries for refined or intermediate copper products was also taken into account. The study aimed to evaluate external costs in the copper value chain and to compare in particular the primary and the secondary copper production in Europe. The present level of external costs was estimated based on the contemporary European copper cycle and current production technology. The study found that taking into account the high environmental impacts generated in primary copper production countries of the EU, the realistic price paid by EU buyers from EU primary producers should have been 33% higher than they normally pay.

15

http://ewasteguide.info/biblio/Eugster_2008_ETHZ

36

The modelling results showed clearly lower specific external cost for the recycling or secondary copper production compared to the primary production. The energy intensive smelting processes for the concentrate and in particular for the blister copper production, contribute substantially to the higher external costs of primary copper. In the analyzed scenarios, the external costs of primary copper were by a factor 2.2 – 2.5 higher than for secondary copper. The specific external costs for primary copper production differ also significantly between regions, namely for Europe, Chile, Peru and Russia. In Europe, the lowest external costs incurred in 2005 was due to more advanced flue gas treatment systems and therefore significantly lower emissions. In Chile and Peru, the external costs were estimated to be by a factor 1.6 higher than in Europe. Because of poor implementation of environmentally sound technologies in Russia, the external costs were estimated to be by a factor 3.1 higher than in Europe. In Africa, Botswana, Congo DR, Morocco, Namibia, South Africa, Tanzania, Zambia and Zimbabwe were in 2005 listed as copper producers. These countries are largely primary copper producers. Apart from South Africa and possibly Morocco, the environmental management standards of copper production in these countries are, on average, not likely to be as high as in EU. The factor of external cost estimate with reference to EU is therefore much higher for these African countries, possibly ranging from 1.6 or higher to 3.1 or higher than estimated for the South American countries and Russia. 5.4 Current Trend in Mining and its Impacts on Security of Supply and Access

Africa is the world’s least industrialized region with respect to manufacturing. At present, nearly all of the region’s natural resources are exported elsewhere for secondary processing (Figures 5.1, 5.2, 5.5, 5.6 and Table 5.1). The recent surge in demand for minerals means that more minerals, a finite resource, were taken out of Africa, thus fast depleting the available resources. Furthermore, high demand prompted mining of even lower ore grade. Lowering ore grades translates into increased volumes of waste that is excavated and left as unsightly and polluting heaps. On the other hand, now that the demand for minerals has dwindled, mining companies that insist to continue mining will raise cut-off grades, so that more mineral material will be left in situ. When ore is left in situ, this ore is lost in cases where underground mining is presently used for extraction. This means reduction in accessible resources for our future generation, giving rise to an intergenerational inequity. We have inherited Africa from previous generations and we therefore have an obligation to pass it on in a reasonably functional condition to our future generations.

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Table 5.1: EU mineral imports dependence [Solar and Christmann, 2008.] DEPENDENCE DEPENDENCE MINERAL MINERAL (%) (%) Antimony 100 Gold 96 Beryllium 100 Uranium 94 Boron 100 Chromium 94 Cobalt 100 Phosphate 93 Mollybdenum 100 Aluminium 86 Niobium 100 Iron 82 PGMs 100 Zinc 82 Rare earths 100 Nickel 74 Renium 100 Copper 65 Tantalum 100 Lead ore 56 Tin 100 Tungsten ore 48 Titanium 100 Vanadium 100

Figure 5.5: Geographical concentration of minerals [Ericsson, 2008]

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Figure 5.6: Transnational corporations in global mining [Ericsson M. 2008]

Since Africa has no significant downstream processing and consumption of finished products, and since Africa does not have significant recycling technology, Africa is loosing at both ends of the mining industry value chain. The continent is loosing both the primary material and the possibility to significantly hold metals in form of urban reserves for future urban mining. 5.5 Improving Resource Productivity in Global Value Chain for Extraction Locations

The Wuppetal Institute has proposed measures to improve resource productivity in global value chain for ore extraction locations, which have been categorized at policy and industry levels [Kuhndt, Tessema and Martin, 2008]. At policy level, governments could:
 link initiatives on social issues in extraction to operational and resource efficiency

improvements;
 promote the exchange of knowledge, technologies and best experience on how to

increase resource productivity in the extraction phase;
 set up internationally harmonised labelling and information systems on the (embodied)

resource consumption of raw materials and commodities. At operational level, industry could:
 introduce resource efficiency standards in the global extraction activity globally to

capitalize on cost savings through resource efficiency;
 raise resource productivity in partnerships with actors in artisan or small-scale mining;

and
39

 engage in partnerships with raw material suppliers to enhance resource productivity

standards.

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6 6.1

ENVIRONMENTAL AND SOCIAL IMPACTS DUE TO MINING IN AFRICA General

Although mining provides a variety of socio-economic benefits, the environmental costs of mining, if not well handled, can be massive in terms of land conversion and degradation, habitat alteration, groundwater contamination and other forms of pollution. The fast growing clearing of vegetative cover in sensitive water catchment areas and forests in the Lamba Water Catchment area of the Zambia’s copper belt due to the peri-urban development triggered by existing mining activities [Limpitlaw and Woldai, 2004; ZCCM-IH, 2005a] and the recent exploration activities due to “base metal rush” in the Copperbelt Province of Zambia is one such example of land and habitat degradation. Large-scale mining generally produces large volumes of waste and chemical pollutants which may cover vast tracts of land, and can have devastating impacts on ecosystems. The most pervasive problem associated with waste dumps is acid drainage16. Furthermore, many mining activities are also polluting the environment through the use of hazardous chemicals, such as heavy metal mercury and chemical cyanide both of which are used in gold mining at both small and large scales. These heavy metals and chemicals when not properly managed can contaminate water, a very important habitat for aquatic life and can enter the human food chain with deadly effects [UNEP, 2006]. Evidence has indicated that the environmental and social effects of mining and smelting from previous mining spanning decades, centuries, or even millennia can be long-term. Future societies are compelled to continue to pay for natural capital stocks that have been utilized by past generations [Makumba, 2007]. The long-lasting impact of mining has been globally realized, and since the 1990s many governments have enacted environmental impact assessment (EIA) policies and laws. EIAs have to some extent helped countries to make better evaluations of the benefits and costs associated with mining and to adopt measures, such as restoration and rehabilitation, to avoid and mitigate harmful impacts. For example, South Africa undertook an EIA of a proposed mining venture of titanium along the eastern shores of St. Lucia, an area renowned as a valuable source of biological diversity. A review panel, which was charged to determine whether mining would be compatible with nature conservation and tourism, concluded that there was no compatibility. As a result, mining permission was refused and in 1999 the area was declared a World Heritage Site [UNEP, 2006]. Mining by nature causes direct and indirect impacts on the environment. The direct impacts are those caused through its direct value chain activities including prospecting, exploration, site development (including mine surface facilities), ore/coal extraction from rock in situ, mineral dressing, smelting, refining/metallurgy, transportation and post mining. In this value chain, the environment is affected in different phases of the mining cycle in various ways. Indirect impacts are those caused through avenues including infrastructure for mining inputs such as energy and
16

www.deh.gov.au/industry/industry-performance/ minerals/training-kits/p1index.html. April/May 2001.

41

water; and stimulated services such as roads and railways and amenities such as urban and periurban human settlements. The following sections present some of the environmental degradation experiences obtaining in Africa, directly and indirectly due to mining industry. 6.2 Mining, Greenhouse Gas Emissions and Climate Change

Climate change is the average significant change of weather experienced by a region over a longterm. Of the gases causing climate change, carbon dioxide is the main culprit (Figure 6.1). Major human activities contributing to climate change is the burning of "fossil fuels" including coal, oil, and natural gas. When these are burned they release carbon dioxide. Coal and oil contain sulfur. When they are burned the sulfur is transformed into fine particles which pollute the atmosphere, thus contributing to various environmental problems. Also the main cause of the hole in the ozone layer is chlorofluorocarbons (CFCs), gases that are used in refrigerators, air conditioners, and industrial applications17. Coal, particularly brown coal (also called lignite), is the energy source with the highest GHG emissions per energy unit. Burning coal generates 70% more CO2 than natural gas for every unit of energy.

Figure 6.1 World Greenhouse gas emissions by sector [UNEP, 2008].

When assessing GHG emissions in mining industry, this should cover “cradle-to-gate” emissions of greenhouse gases resulting from the production of a mineral or coal, from a mining

17

http://envis.tropmet.res.in/globalchanges.htm

42

perspective18. Greenhouse gas emissions are associated with the consumption of energy at every step in the production chain, from exploration through mining to the production of refined metal (or washed coal), and also with the use of explosives in mining. Producers of primary minerals material employ a variety of technologies to mine, mill, smelt and refine several different types of ore, with every orebody having its own special character. Along the production chain, the various modes of transport of ores and intermediate products can also contribute to GHG emissions. Depending largely upon location, mines, smelters, refineries and electrowinning plants consume energy in different proportions from the major primary sources – hydroelectricity, nuclear electricity, natural gas, petroleum products and coal – each with its own GHG impact. 6.2.1 Mining industry process and greenhouse gas emissions

Greenhouse gas emissions from mining industrial processes are primarily by-products of production, and they vary with the process technology used and the level of industrial output. These emissions arise from non-energy related sources. For example, high temperature processing of calcium carbonate to produce quicklime releases carbon dioxide emissions. The sources of emissions from industrial processes include [Australian Government, 2007], for example: Mineral Products: carbon dioxide from cement clinker and lime production, the use of limestone and dolomite in industrial smelting processes, soda ash use and magnesia production. Metal Production: carbon dioxide and perfluorocarbon emissions from aluminium smelting, and carbon dioxide, methane and nitrous oxide emissions from iron and steel production. Consumption of halocarbons: emissions of hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride from refrigeration and air conditioning equipment, foam blowing, metered dose inhalers, fire extinguishers, solvent use and electrical equipment. An example of disaggregation of the industrial processes sector for some minerals and coal is given in Table 6.1. Table 6.2 is an example of the global stationary annual CO 2 point sources larger than 0.1 million tonnes. It can be observed that mining activities including production of cement, refineries and iron and steel rank among the highest sources of CO2 emissions.

18

http://www.minecost.com/GHG_Web.pdf

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Table 6.1: Example of disaggregation of the industrial processes sector [Australian Government, 2007]

CATEGORY Mineral Products

EXAMPLE INDUSTRY SUB-SECTOR Cement production Lime production Limestone/dolomite use Soda ash production and usea Magnesia productiona

Greenhouse gases
CO2 ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ CH4 N2O PFC SF6 HFC

Metal Production Iron and steel production Aluminium production SF6 used in aluminium and magnesium foundries Coal19
a Emissions

Production and transportation Combustion

reported under this subsector include the aggregated emissions from individual subsectors that report their emissions on a confidential bases. These industries include ammonia and nitric acid production.

19

http://www.lime.com/glossary/greenhouse_gases

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Table 6.2: An overview of global stationary CO2 point sources larger than 0.1 million tonnes (Mt) of CO2/yr20.

PROCESS Power Cement production Refineries Iron and steel industry Petrochemical industry Oil and gas processing Other sources Bioethanol and bioenergy

Fossil fuels

Biomass TOTAL

NUMBER OF SOURCES 4,492 1,175 638 269 470 N/A 90 303 7,887

EMISSIONS (Mt CO2/yr) 10,539 932 738 646 379 50 33 91 13,466

(FROM: IPCC Special Report on CCS, based on the IE's GHG R&D Programme)

Copper, due to its divergent properties, is a popular metal. From the ecological point of view however, processing of copper has some drawbacks. For example, copper ores contain elements, like sulphur, which could be damaging. Recently, global copper-demand increased, mainly due to rising Chinese imports. In the longer-term, the environmental impacts could intensify as an increase in demand for copper products is expected, so enforcing growing mining and processing activities. The carbon dioxide emissions for copper are 2kg/m2 compared to aluminum of 5.2kg/m2 21. Technological changes in production processes can affect the energy and greenhouse intensity of industrial processes but rarely reduce process emissions, which are dictated by the process chemistry. However, product substitution may result in substantial changes in process emissions by changing the underlying chemistry [Australian Government, 2007]. The mining and metals industry accounts for approximately 34.3% (Figure 6.2) of the global GHGs from industry [UNEP, 2008]. In Africa, large scale mining is taking place in 41 (77%) of the 53 countries, cement production in 31 (58%) of the countries, while active coal mines can be found in 13 (25%) of the countries. Other than composite GHG emissions (Table 6.9) estimated for 51 (96%) of the African countries, no data was found on GHG emissions attributable directly to mining and metals industry in Africa to determine the continent’s mining industry’s share of the 34.3% above.

20
21

www.climateactionprogramme.org/features/article/carbon_dioxide_capture_and_storage_a_future_for_coal/.

http://www.iancoxroofingltd.co.uk/index.php?f=data_home&a=2

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Figure 6.2 Greenhouse gas emissions by sector and by activity [UNEP, 2008].

6.2.2

Energy for mining and greenhouse gas emissions

Greenhouse gas emissions are associated with the consumption of energy at every step in the production chain, from exploration through mining to the production of refined metal, and also with the use of explosives in mining22. For those mining activities with energy intensive operations such as smelters, such mines are reported to consume a significant amount of energy [Swedish Trade Council. 2007]. Consequently the environmental impacts related to energy can be said to be significantly stimulated by energy consumption by mining industry where they are found, and depending on the energy source. Figure 6.3 gives an indication of GHG emissions from production of electricity using different energy forms. Clearly, coal-based electricity generation has the largest quantity of GHG emissions per kWh. Therefore those mines using this source of electricity stimulate large amounts of emissions.

Figure 6.3: Greenhouse gas emissions from electricity production23.

Figure 6.4 shows that, in 1997, the biggest CO2 emitting coal producing countries (Table 6.3) in Africa were South Africa, Botswana and Zimbabwe. According to the year 2003 records, these countries used coal to generate electricity as follows24: South Africa 93.5%, Botswana 100% in Morupule25 and Zimbabwe 47% in Hwange.
22
23

http://www.minecost.com/GHG_Web.pdf http://www.publications.parliament.uk/pa/cm200506/cmselect/cmenvaud/584/584we34.htm 24 http://www.nationmaster.com/graph/ene_ele_pro_by_sou_fos_fue-electricity-production-source-fossil-fuel 25 http://www.miningmx.com/news/energy/155401.htm

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In terms of gas emissions, South Africa, for example, releases some 170 million tons of carbon dioxide annually, about 0.7 million tons of nitrogen oxides and about 1.5 million tons of sulphur oxides [Lloyd, 2002]. Based on the country’s 1994 data, South Africa is so far the only African country ranked in the top 20 greenhouse gas emitters (including land use change and forestry) [UNEP, 2008].

Figure 6.4 Emissions of CO2 in 1997 for selected countries26.

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Table 6.3: Coal production in Africa27

SNo.

GLOBAL RANK

COUNTRY

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

6 24 35 38 40 44 45 50 52 56 57 65 67 71 72

South Africa Zimbabwe Botswana Swaziland Zambia Niger Congo D.R. Tanzania Malawi Mozambique Egypt Nigeria Algeria Morocco Cameroon Total =

COAL USAGE FOR POWER AMOUNT GENERATION YEAR (Ton) AMOUNT YEAR (%) 244,986,00 93.5 2003 0 2005 47.0 2003 3,622,000 2005 100.0 2003 967,000 2005 360,000 2005 244,000 2005 182,000 2005 120,000 2005 75,000 2005 65,000 2005 40,500 2005 33,000 2005 8,000 2005 5,000 1999 2,000 2001 1,000 1997 250,710,50 0

6.2.3

The GHG global status for Africa

Figure 6.5 indicates that Africa's contribution to greenhouse gas emissions is insignificant. When comparing the greenhouse gas emissions per capita in the typical African country with the typical European country, the Europeans emit roughly 50-100 times more, while the Americans emit 100-200 times more [UNEP, 2002]. Global atmospheric concentrations of carbon dioxide, methane and nitrous oxide have increased markedly as a result of human activities since 1750 and now far exceed pre-industrial values determined from ice cores spanning many thousands of years. The global increases in carbon dioxide concentration are due primarily to fossil fuel use and land use change, while those of methane and nitrous oxide are primarily due to agriculture. Long-term trends from 1900 to 2005 have been observed in precipitation amount over many large regions [IPCC, 2007].

26 27

http://www.grida.no/publications/vg/africa/page/3113.aspx http://www.nationmaster.com/graph/ene_coa_pro-energy-coal-production

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Figure 6.5: Estimated regional carbon emissions trend between 1800 and 200028.

According to the 2002 report of the Inter Governmental Panel on Climate Change Third Assessment Report (IPCC TAR), Africa is very vulnerable to climate change because its capacity to respond and adapt is low [UNEP, 2002]. Based on historical records, a warming of approximately 0.7°C has occurred over most of the African continent during the 20th century. By the end of this century, global mean surface temperature is expected to increase between 1.5ºC and 6ºC. Sea levels are projected to rise by 15 to 95 cm. The IPCC TAR graphics indicate that temperature rise in Africa corresponds to global temperature rise [UNEP, 2002]. The expected warming is greatest over the interior of semi-arid margins of the Sahara and central southern Africa. Drying has been observed in the Sahel, the Mediterranean and southern Africa29. Adverse impacts are spread across the diverse environments of Africa, putting a huge proportion of African continent at great risk [UNEP, 2002]. Climate variability, including extreme events such as storms, floods and sustained droughts, has caused significant impacts on settlements and infrastructure in Africa. From urban planning point of view, the little-characterized and unpredictable rapid-onset disasters such as storm surges, flash floods and tropical cyclones are the biggest threats to localized population concentrations posed by climate variability and change. Furthermore, negative impacts of climate change could create a new set of refugees, who may migrate into new settlements, seek new livelihoods and add stress to the already inadequate infrastructure [Parry, Canziani, Palutikof and Co-authors, 2007].

28 29

http://www.globalwarmingart.com/wiki/Image:Carbon_Emission_by_Region_png http://www.ipcc.ch/pdf/assessment-report/ar4/wg1/ar4-wg1-spm.pdf

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In contrast to its relatively low energy consumption, Africa continues to be one of the major regions of the world that suffers most from the effects of climate change, while at the same time least capacity to implement mitigation strategies30. 6.2.4 Energy options for mining industry in Africa

In 2006, the world generated (Figure 6.6) a total of 18,930 Terawatt-hour (TWh) of electricity (excluding pumped storage) from mainly coal/peat (41.0%), gas (20.1%), hydro (16.0%), nuclear (14.8%) and oil (5.8%) fuels. Other sources (2.3%) included geothermal, solar, wind, combustible renewables and waste, and heat. Of this total, Africa was responsible for only 3.1% (Figure 6.7). A significant amount of consumption in Africa is by industry, and in some regions of Africa the industrial growth has outstripped the installed power capacity. Within the industrial sector, 41 (77%) of the African countries are housing large scale mining operations. This industry has a considerable power demand. For example, in Zambia the copper mining industry alone consumes nearly two thirds of the power produced in the country [Swedish Trade Council. 2007]. Most of the sub-Saharan nations face electricity shortages and unprecedented power crises (Figure 6.8). In recent years more than 30 of the 53 countries in the region have suffered acute energy crises [IMF, 2008]. Much of the available power goes to energy-intensive industries like mining and smelters.

Figure 6.6: Global fuel shares of electricity generation (excludes pumped storage) in 2006. (NB: Other includes geothermal, solar, wind, combustible renewables and waste, and heat) [IEA, 2008a].

Figure 6.7: Regional shares of electricity generation for 2006 [IEA, 2008a].

30

http://www.climateactionprogramme.org/regional_focus/africa

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Figure 6.8: Areas of ongoing or imminent power shortfalls in Sub-Saharan Africa [IMF, 2008].

Whereas mining industry has stimulated development of increased power in Africa, there are associated direct and indirect environmental problems. In short, more mining industry demands development of more energy to meet the industrial and domestic needs, which unfortunately also gives rise to more emissions and therefore environmental degradation. The alternative of not developing modern energy also results in environmental problems and perpetuates poverty. The United Nations Development Programme(UNDP) has stated that31:
“Energy is central to sustainable development and poverty reduction efforts. It affects all aspects of development -- social, economic, and environmental -- including livelihoods, access to water, agricultural productivity, health, population levels, education, and gender-related issues. None of the Millennium Development Goals (MDGs) can be met without major improvement in the quality and quantity of energy services in developing countries”.

In fact, the problem of poverty is closely intertwined with lack of modern energy services for the majority of rural and urban populations for both productive use and social welfare. The importance of energy in rural industrialization cannot be over-emphasized. In a Communiqué by “The 1st African Ministerial Round Table on ICT for Education, Training and Development – Mission to Accelerate Building of the ICT Infrastructures and Capacities for African Educational Systems” dated 28th May 2007, the Ministers:
“……. noted and emphasized that energy and ICTs are forces that drive development, particularly on the African continent. It was emphasized further that efforts should be made to balance urban and rural areas in energy and ICT development.”

As illustrated by Figure 6.3, Africa should aim at less polluting renewable energies including hydro-power, liquid biofuels, wind, solar and tidal wave.

31

http://www.undp.org/energy/

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6.3

Landuse and Landuse Change

The area of Africa is about 2,978,394,000 hectares. By the year 2000, the forest cover was about 650 million hectares (21.8% of Africa’s area), a reduction by 5,262,000 hectares over a 10-year since 1990. This forest cover is about 16.8% of the global forest cover. There is a wide range of goods and services including fuel and construction wood, medicines and foods derived from forests and woodlands, thus creating opportunities for development and improving human well-being on the African continent. Other services include protecting catchment, purifying water and regulating river flows, which in turn ensure the supply of water for hydropower generation. Forests and woodlands also help prevent soil erosion (from water and wind) and thus are critical for agriculture and food production. Forests also provide shade, habitat functions, grazing, cultural (sacred groves, shade, peace trees and plants, meeting places, boundaries and training areas) and aesthetic values [UNEP, 2006]. The overall value of these goods-and-services as outlined above and more must be protected for the survival of the earth’s inhabitants. During operations of mining industry in Africa, various activities and processes have impacted on landuse. The environmental status of these is described in the sections below. 6.3.1 Mining industry and forestry

6.3.1.1 Direct use of forestry products by mining industry Apart from forestry clearance to pave way for mine developments, some mining processes and related activities do make use of woods and logs. The following are the main examples of direct use of forestry in mining:
• • • •

Hard wood is used for support of small and large scale mine excavations (Photographs 6.1 and 6.2), Wood/charcoal and bamboos are used in smelters, Hard wood is used as railway sleepers on surface and underground, and Wood poles are used for electric power transmission.

This author is not aware of an Africa-wide study on the amount of deforestation and forest degradation directly attributable to mining activities. However, in Namibia the mining industry in the prior to 2000 consumed 24,000 tons of charcoal per year before the market was overtaken by coal [Kojwang, 2000].

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Photograph 6.1: An example of wooden support in small scale underground mines [Sinkala, 2008].

Photograph 6.2: An example of wooden support in large scale underground mines [Banks et al.].

To avert use of wood and charcoal in smelters, a number of mines in Africa are considering converting to electrical powered smelters wherever there is adequate power. For underground support systems, the mines are switching to non-wood support systems. On the other hand, use of metallic support systems promotes further development of mines, one of the promoters of deforestation – a “vicious cycle”. Some other measures undertaken by mining industry include reforestation using indigenous trees. However, since the logs used for underground support are from indigenous hard wood trees which take many decades to get to the harvested sizes, reforestation will usually not restore forestry for re-harvest during the lifetime of a mine. 6.3.1.2 Mining stimulated forestry depletion Due to scarcity of significant alternative income generation activities away from mining areas, the often unplanned urbanization of society continues to increase in mining areas of Africa. This urbanization stimulates uncontrolled use of forestry and other natural resources, resulting in loss or degradation of the resources in urban and peri-urban areas32.. For example, a study by Limpitlaw [2004] has revealed that with a population of at least one million people in the Zambian Copperbelt, charcoal demand is approximately 36,500t annually, translating to at least 243,000t the mass of trees felled, or about 286,000 m3 if a density of 850 kg/m3 is assumed. This takes about 3,400 ha of woodland per annum. If large logs are used for mining timber, then 2,580 ha will be required annually. In general, the overall loss of forestry in Africa is shown in Figure 6.9 and Table 6.4. The FAO report shows that a significant share of net forest loss is reported from those countries with the greatest extent of forests. This is the case in, for example, Angola, the United Republic of Tanzania and Zambia which together account for a majority of the forest loss in East and Southern Africa. Zimbabwe, with a rate of forest loss estimated at 1.7% per year, is far above the
32

http://news.mongabay.com/2005/1115-forests.html .

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average of 0.7% for all Southern Africa. In Northern Africa, the Sudan alone accounts for most of the forest cover and for 60 percent of the forest reduction. For a combined West and Central Africa, Cameroon, the Democratic Republic of the Congo and Nigeria together account for most of the loss.

Figure: 6.9: Forest change rates by country or area, 2000–2005 [FAO, 2007].

Table 6.4: Extent and change of forest area [FAO, 2007]

According to the FAO report [2007], a number of countries have stepped up afforestation efforts with the primary objective of environmental protection. This includes afforestation of degraded areas for soil conservation, establishment of windbreaks and shelterbelts to protect agriculture areas, stabilization of sand dunes and urban and peri-urban planting to improve amenity values. The 46 countries that reported on this activity indicated an increase in the extent of protective forest plantations of nearly 400,000ha during 1990–2005. Most of the increase of over 87% occurred in the poorly forested subregion of Northern Africa. For Africa as a whole, the total area of forest designated for protective functions showed a slight decrease, with Northern Africa being the only subregion with a slight increase. Nevertheless, the area of protective forest plantations is increasing in four subregions and in Africa as a whole. The FAO report is however unable to conclude whether protective functions are improving.
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6.3.1.3 Mining stimulated economic benefits from forestry use Mining industry does stimulate economic benefits for the rural poor which they generate through the production and sale of wood, fuelwood, non-wood forest products and foodstuffs. What is important is to have a well managed forestry industry that ensures rights to tree and forest resources and equitable access. There is a growing awareness of the importance of urban green spaces to the quality of the urban environment and urban life. As part of afforestation/reforestation of degraded mining areas, communities in the areas can take advantage of the growing biofuels era to plant perennial energy crops, such as Jatropha described above. Such trees will not only help to green the degraded areas, but they will also provide employment and income to the vulnerable communities [FAO, 2008; Thorpe et. al., 2008]. 6.3.2 Land cover by surface mine facilities and dumps

Mining activities will often give rise to occupancy of land surface by the following: • prospecting/exploration activities including pits and trenches, • mine site surface facilities including mine surface excavations, amenity buildings, processing plants, storage sheds, dumps and dams, as well as residential and commercial areas, • water and sewage treatment plants, • refuse disposal sites; • power line access ways; and • access road and railways. During this write-up, the information on land occupied by these facilities in Africa was not available to the author. For small scale mining, this lack of information applies to all countries. Mine dumps are an issue in 51 (96%) of the African countries, as shown by Table 6.5. There is however lack of quantified information on the dumps. The following is some information on South Africa and Zambia:

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Table 6.5: Prevalence of mine dumps in Africa [From Table 6.9]

REGION
SOUTHERN AFRICA (out of 15) CENTRAL AFRICA (out of 6) EAST AFRICA(out of 10) NORTH AFRICA(out of 5) WEST AFRICA(out of 17) Total (out of 53) = Percentage (%) =

NUMBER OF COUNTRIES WITH MINE DUMPS AS AN ISSUE 14 6 9 5 17 51 96

(% ) 93 10 0 90 10 0 10 0 96

SOUTH AFRICA In 1997 approximately 471 million metric tonnes of mining waste (general and hazardous) was generated, with gold contributing to almost half of this. Over 200,000 hectares of natural habitat have been transformed by mining activities. Slimes dams and waste rock dumps cover nearly 47,000 hectares [Environmental Affairs and Tourism, 2005]. ZAMBIA The copperbelt of Zambia occupies an area of about 150 km by 50 km. In the same area are emeralds mining activities south-west of Kitwe mining town. There are also two new mines (Lumwana and Kansanshi mines) in the North Western Province of Zambia. Over time, Zambia’s mining industry has accumulated a tremendous amount of dump material, as shown in Table 6.6.
Table 6.6: Mine dumps and area covered in the Zambian Copperbelt [Sikaundi, 2008].

TYPE OF DUMP Overburden dumps Waste rock dump Tailings dump/dam Slag dump TOTAL

UNITS 32 21 45 9 107

TONNAGE (million metric tones) 1,899 77 791 40 2,807

AREA COVERED (Hectares) 206,465 388 9,125 279 216,257

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6.3.3

Inaccessible hazardous land

All mine areas operating underground mines using, especially, caving mining methods do prohibit entry into such areas because such areas pose danger to humans and animals due to subsidence. Zambia, for instance, lost 89 people in 1970 due to a caving related accident33. No information was available at the time of this report. 6.3.4 Land polluted by mine operations

In South Africa, more than 50,000 tonnes of salts seep out of tailings dams in the Vaal region annually [Environmental Affairs and Tourism, 2005]. This severely contaminates not only the water, but also the soil and vegetation. There is no information about the area covered by this contamination, but landuse is most likely not suitable for food crops, for example. In Zambia, the areas of intense suphur dioxide plume in Mufulira and Kitwe cover approximately 12,000 hectares. In these areas, the air for the residents is polluted and vegetation is barely able to grow. Also, most effluent from the mines end up in the Kafue River, a source of drinking water for about 40% of Zambia’s population [Nkandu, Sinkala and Simukanga, 1996]. Africa wide information was not available at the time of the study, let alone for small scale mining areas. 6.4 Water Use and Acidification

Most people in Africa live in rural areas and are heavily dependent on agriculture for their livelihoods. The availability of and access to freshwater is therefore an important determinant of patterns of economic growth and social development. It is difficult in all sectors to sustain economic development without a water resource. Freshwater is a necessary input for industry and mining, hydropower generation, tourism, subsistence and commercial agriculture, fisheries and livestock production, and tourism. These activities are central to livelihoods and human well-being; they provide employment and contribute to national economies through, among others, export earnings. Furthermore, with provision of safe drinking water and adequate sanitation facilities, mortality rates related to water-borne and water-related diseases, such as cholera, diarrhoea and malaria can minimize. These, if not well managed can add to the cost of operations due to time lost by having a sickly workforce. Africa with a population of 13% of the world’s total holds about 11% of global water resources (Figure 6.10). The state of freshwater systems will continue to deteriorate due to climate change and variability as discussed in earlier sections, population growth and increasing water demand, overexploitation and environmental degradation. Poor land-use practices have resulted in pollution and sedimentation of river channels, lakes and reservoirs, and changes in hydrological processes. Dams (Figure 6.11), in particular large dams, threaten freshwater resources by fragmenting and transforming aquatic systems.
33

http://www.wise-uranium.org/mdaf.html

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Also, Africa is marked by a recurrence of climatic extremes in the form of flooding and drought. Global change scenarios predict a continuing global warming for this century of between 1° and 6°C, a sea-level rise of between 0.1 and, and an increasing frequency of climatic extremes that may further aggravate the state of available freshwater resources [UNEP, 2006]. Not only is the quantity of freshwater fundamental for the development of all sub-regions, but the quality of the resource is equally important. Meanwhile, global freshwater consumption is on the rise. In 2000, the United Nations noted that two out of every three people on Earth will live in that condition by 2025”.

Figure 6.10: The global overview of water availability versus the population [UNEP, 2006].

Figure: 6.11: Dams in Southern Africa [UNEP, 2006].

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Water pollution due to mining activities is a widespread problem in Africa. Table 6.7 shows that 52 (98%) of African countries experience some form of water pollution by mining activities. However, there is scarce quantified information on the extent of the pollution due to these activities.
Table 6.7: Prevalence of mining related water pollution in Africa [From Table 6.9]

REGION
SOUTHERN AFRICA (out of 15) CENTRAL AFRICA (out of 6) EAST AFRICA(out of 10) NORTH AFRICA(out of 5) WEST AFRICA(out of 17) Total (out of 53) = Percentage (%) =

NUMBER OF COUNTRIES WITH WATER POLLUTION DUE TO MINING AS AN ISSUE 14 6 10 5 17 52 98

(% ) 93 10 0 10 0 10 0 10 0 98

6.4.1

Mining industry and inland water

In developed countries, the leading sources of diffuse (non-point) water pollution are agriculture, industries, and mining34. With sparse presence of manufacturing industry in Africa, the mining sector is the second largest source of diffuse water pollution, after agriculture. The mining industry sector produces high concentrations of wastes and effluents. These sources act both as point- and diffuse sources of water quality degradation (Photographs 6.3 and 6.4) and acid mine drainage. The potential impacts of mining on the water environment are subdivided into those associated with phases of mining operations, namely [Department of Environment and Tourism. 2008]: • • • • the act of mining itself; seepage of contaminated water from mine residue deposits (waste rock dumps and tailings dams) resulting from mineral processing/beneficiation; dewatering of active mining operations; and rewatering (flooding) of defunct/closed mine voids and discharge of untreated mine water.

34

http://www.slideshare.net/Shohail/environment-22

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Mining industry consumes a significant amount of water, especially during mineral processing. In South Africa, for example, the mines together with bulk industrial activities consume close to 6% of the available, but scarce water [Environmental Affairs and Tourism, 2005].

Photograph 6.3: Transporting water at a Galamsey gold mining operation, Ghana [CASM, 2003].

Photograph 6.4: Water resource degradation by small scale diamond miners in Angola [PAC, 2007].

The water used by the mines is either from surface in natural rivers or lakes, or underground workings or boreholes in mining areas. Although this water is mostly renewable, the mine requirements may exceed water availability and arouse conflicts with other users. The mining activities may also contaminate water, thus reducing the quality and quantity of fresh water resources available for use (Box 6.1). Box 6.1: An example of water contamination due to mining activities
In Ghana, a tailings dam burst at the Tarkwa gold mine in the Wassa West District on October 16, 2001. Thousands of cubic meters of mine waste ended up into the Asuman River and contaminated it with cyanide and heavy metals. The incident left more than one thousand people without access to drinking water. Virtually all life forms in the river and its tributary were killed. Hundreds of dead fish, crabs, and birds lay on the banks of the river and floated to the surface.

The broken dam

“….. The spill at Tarkwa was one of five cyanide spills in Ghana over a period of seven years which have polluted water supplies and forced many families to abandon their farms. To make the situation even worse, in January 2003, water from an abandoned underground mine at Tarkwa seeped into the Asuman River creating new worries of water contamination. In the Wassa area, mining displaced 30,000 people between 1990 and 1998. At the same time, mining has caused social turmoil in affected communities by taking away large tracts of

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land from farmers, …..”. http://www.earthworksaction.org/wassa.cfm.

Some mines, small to very large, are located in/near aquifer rocks. For example, some of South Africa’s largest mines are located in or very near to the dolomitic rocks of the Transvaal Sequence, which is that country’s most important aquifer [Department of Environment and Tourism. 2008]. This is a major threat to the urban populations reliant on it for their water supplies. According to the Department of Tourism [2008], large-scale mining in Gauteng and surroundings, for instance, has resulted in subsistence in the dolomite rock causing localized sinkholes and earthquakes. Similarly, Lusaka in Zambia is built over a karstic dolomite aquifer, yet is littered with small to medium quarries which are often inundated with waste water and pollutants [Lusaka City Council, 2008]. Furthermore, shanty compounds using pit latrines are also built on this aquifer. Ground water accounts for 61% of the total water supply within Lusaka, while the rest comes from water pumped from Kafue River. For arid lands which depend largely on ground water, increased groundwater pollution is a serious concern [UNEP 2006; Shoko 2002; Savornin, Niang and Diouf, 2007]. This is the case in mining areas in Kalahari and Sahara deserts and their fringes. Mercury pollution and land degradation is reported in almost all small scale gold mining areas in such environments in West Africa, East Africa, and Southern Africa (Table 6.8). Continued water pollution by the mining industry, like by any other industry, will significantly deplete available resources and increase water scarcity. The quality of water resources in parts of Central Africa (which is largely a rain forest) is declining due to pollution from industrial effluents and sewage outflows, agricultural run-off and, in coastal areas, from seawater intrusion. Further threats include logging operations (that impair water quality through sedimentation) and mining operations [UNEP, 2006]. In Southern Africa, the limited water resources where the population is largely rural and heavily dependent on agriculture makes this sub-region vulnerable to environmental change. The subregion has 12 major internationally shared river basins, of which the four largest basins are the Zambezi, Orange, Okavango and Limpopo river basins. Gold mining associated with use of mercury and therefore a threat to water quality are taking place mostly in Mozambique (Photograph 6.5), Tanzania (Photograph 6.6) and Zimbabwe [Shoko, 2002], which are parts of the Limpopo and Zambezi river basins.

Photograph 6.6: Use of water in gold sluicing mining in

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Photograph 6.5: Sluice box built from tree barks in Sussundenga, Manica Province [SANTREN and ITDG, 2001].

Tanzania [SANTREN and ITDG, 2001]..

6.4.2

Mining industry and marine water

Southern Africa is a hive of both small and large mining activities. The region is exploiting mainly onshore mineral resources [UNEP, 2006]. Diamond mining from coastal sand dunes and by dredging inshore seabed sediments is a major industry in Namibia and western South Africa. In coastal sediments on the Indian Ocean shores of South Africa and Mozambique, there are commercially viable titanium and zirconium minerals, also derived from the hinterland. The marine diamond mining industry in Namibia and South Africa yields close to a million carats of diamonds each year. Coral reefs continue to suffer pressures from increasing populations, coastal development and marine-transported litter. Mining of coral and sand for use in construction is also damaging habitats, with most states implementing stricter legislation and licensing. In São Tomé, coastal erosion, exacerbated by beach sand mining (now largely banned), has been reported to be threatening infrastructure in the southern part of the main island [UNEP, 2006]. The reduction of forests in Morocco, Algeria and Tunisia has resulted in a reduced effect on regulating water and maintaining soil. Recently, road construction, quarrying and mining industries, building dams and construction of irrigation canals have contributed to the deterioration of forest ecosystems by reducing forest areas and destroying habitats, thus affecting forest biodiversity [UNEP, 2006]. 6.4.3 Acidification of water environment

Acid mine drainage (AMD), when it occurs, is one of the most serious problems that affect mine environments. AMD is characterized by low pH (high acidity), high salinity levels, elevated concentrations of sulphate, iron, aluminium and manganese, raised levels of toxic heavy metals such as cadmium, cobalt, copper, molybdenum and zinc, and possibly even radionuclides. The acidic water dissolves salts and mobilizes metals from mine workings and residue deposits. AMD is not only associated with surface and groundwater pollution, but is also responsible for the degradation of soil quality, aquatic habitats and for allowing heavy metals to seep into the environment. Worse still is the characteristic of AMD to persistence in the environment, so that it is extremely difficult and very costly to clean up. For instance, in the US the cost of remediation of acid mine drainage, which affects some 20,000 km of watercourses, was estimated to be between US$2 billion and US$35 billion in 1998 [Boocock CN. 2002]. A number of countries including Ghana, Nigeria35, South Africa36, Zambia (Figure 6.7) and Zimbabwe37 have reported either acid mine drainage or susceptibility of their mine environments to acid mine drainage.
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http://www.springerlink.com/content/n4l5177106rgxg1v/fulltext.pdf?page=1 http://www.miningweekly.com/article/in-the-midst-of-a-disaster-2009-05-08 37 http://cat.inist.fr/?aModele=afficheN&cpsidt=1249686
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Photograph 6.7: An example of acid drainage due to oxidation of sulphide ore at Chibuluma, Copperbelt of Zambia

In South Africa, for example, the major impacts of mining are related to mine dewatering, tailings management, atmospheric emissions and acid mine drainage, which in some cases are specific to the type of mining. South Africa is also confronted by the problem of the environmental legacy of past mining, particularly acid mine drainage from abandoned coal and gold mines [Boocock CN. 2002]. Acid mine drainage in South Africa was observed at the West Rand in Gauteng Province where acid mine water started to decant from defunct (closed) flooded underground mine workings on the West Rand in August 2002.
“Decant has subsequently been manifested at various mine shafts and diffuse surface seeps in the area. Dark, reddish-brown water and pH values as low as 2.5 persist at the site. Up until early-2005, and completion of storage and pumping facilities to contain and manage on average of 15 Mega-Litres per day (ML/d) of decant, the AMD found its way into an adjoining natural water course and flowed northward through a game reserve, and towards the Cradle of Humankind World Heritage Site” [Department of Environment and Tourism. 2008].

6.5

Ecotoxicity and Health Effects on Humans

Chemical substances and their derivatives are widely used in mining industry for various purposes in its value chain. Poor management of the chemicals during production, transportation, application, storage and disposal are areas requiring attention in order to minimize pollution to environment. By world standards, Africa is currently not a major consumer or producer of chemicals. Nevertheless, the level of risk posed to poor countries is disproportionately higher than in those with sufficient resources to effectively manage and monitor chemical use. With the recently registered growth, there is likelihood that Africa may become both a producer and
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consumer of chemical products. Coupled with a trend to relocate chemical production away from developed countries, it is increasingly importance to give the issue of chemicals an appropriate attention. Apart from chemicals, intentional or unintentional outflow of pollutants to the environment in concentrated form also affect the health of the environment. These include air pollution due to emissions such as sulphur dioxide from processing plants, run-offs from mine processes containing various elements and chemicals, tailings (containing treated ore, heavy metals in solutions, and chemicals), leakages from rock and tailings dumps. Much of these pollutants contain metal and sulphur compounds, which are sources of acid drainage that may need treatment or control for hundreds of years and, together with sulphur dioxide emissions from smelting, pose serious environmental problems for affected areas. Figure 6.12 illustrates pathways of contaminants from mineral waste disposal facilities to the ambient environment and humans. In blue - transport of contaminants in water, dissolved and suspended; in black - transport of contaminants in solid particulate matter and solids in general; in red - direct irradiation, and inhalation of radon-222.

Figure 6.12: Pathways of mineral waste [ZCCM, 2005].

6.5.1

Mining industry and mercury

Mercury is used for various purposes including making thermometers, dental fillings and gold extraction (Figure 6.14). In mining industry, the largest use is in gold extraction. But also, mercury is the basis of fulminating mercury, the explosive powder put into percussion caps, cartridges, and fuses. Dry fulminating mercury will explode violently when struck with a hammer or any other hard object. When wet, it is non-explosive and is kept in this condition until

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wanted for use38. In mining industry, mercury is also released to the air during cement production. Mercury is poisonous, and its toxic effects include damage to the brain, kidney, and lungs39. Global consumption of mercury in 2000 was estimated at about 2,269 metric tons, of which 18% was in Africa (Figure 6.13). Of the global consumption of 3,439 metric tons in 2005, 29% (or 1,000t) was attributed to gold extraction in small scale mining world-wide. Figures 6.13 and 6.14 also indicate that over the five-year period from 2000 to 2005, mercury global consumption increased by 52%.

Total = 2,269 metric tons Figure 6.13: Regional mercury consumption for 2000 [Bailey, 2007]. Total = 3439 metric tons (52% more than in 2000) Figure 6.14: Estimated global mercury consumption by sector for 2005 [Bailey, 2007].

The mercury emissions map shown in Figure 6.15 indicates that mercury emissions are more concentrated in the mineral belts of Africa, stretching from South Africa through Central to West Africa, and then North Africa. The highest concentrations in these belts are in South Africa, Zimbabwe, Congo DR, Nigeria, Ghana and Algeria. The 2000 estimates show that South Africa, at 257 tons (87.41%) per year, was the biggest consumer in Africa. Two of the most prevalent mercury related human health risk areas in African mining activities are associated with gold mining and cement production (Table 6.8).

38 39

http://chestofbooks.com/crafts/metal/Applied-Science-Metal-Workers/524-Uses-Of-Mercury.html http://en.wikipedia.org/wiki/Mercury_poisoning

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Figure 6.15: Map of diffuse plus point sources of mercury emissions for 2000 [Bailey, 2007].

6.5.1.1 Mercury release in gold mining in Africa Table 6.8 shows that gold mining is taking place in 34 (64%) of the 53 African countries, but there was no quantitative information found on the amounts of mercury used to process gold. In gold mining, mercury is used to separate and collect the gold from the rocks in which it is found [UNEP, 2008b]. The three most common methods used by artisanal and small scale gold miners are whole ore amalgamation, gravity concentration or “panning”, and burning amalgam [UNEP, 2008b].
Table 6.8: Countries involved in cement production and in gold mining and mercury usage [From Table 6.9]

REGION
SOUTHERN AFRICA (out of 15) CENTRAL AFRICA (out of 6) EAST AFRICA(out of 10) NORTH AFRICA(out of 5) WEST AFRICA(out of 17) Total (out of 53) = Percentage (%) =

GOL D 7 6 7 2 12 34 64

CEME NT 8 3 6 5 9 31 58

COUNTRIES WITH MERCURY POLLUTION 9 6 7 5 14 41 77

(%)

60 100 70 100 82 77

For the whole amalgamation process technique in which mercury is added to all of the ore being processed during crushing, grinding or sluicing, only 10% of the mercury added to an
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amalgamating barrel or pan (in the case of manual amalgamation) combines with gold to produce the amalgam. The rest (90%) is excess and must be removed and recycled or is released into the environment, which may lead to harm on the miners. For example, a study of panners in Insiza District in Zimbabwe identified symptoms characteristic of occupational mercury poisoning. Of those sampled, 60% had general body weaknesses, 55% had nausea symptoms, 50% had lost teeth and 45% had a history of respiratory diseases [UNEP, 2006]. In the gravity concentration or “panning” technique where gold with the heavier particles are concentrated in the pan while lighter particles are sluiced away, mercury is added to the concentrates in order to amalgamate or gather the fine gold particles. Although this process is an improvement over whole ore amalgamation, this process results in about 10-15% of mercury loss to the environment in artisanal scale gold mining [UNEP, 2008b]. In the burning amalgam technique, miners heat amalgam to recover the gold. When this is done without the use of a retort, mercury vapours are released to the air and are inhaled by the miners, their families and others nearby. This practice produces atmospheric mercury emissions of around 300 metric tonnes per year worldwide [UNEP, 2008b]. The extent of impact on the environment is further spread since the panners dilute the mercury with water to increase quantities. When mixed with water, mercury is lethal to human beings and plants, and the problem is that mercury has a long life – up to 30 years from the time of immersion. It is therefore active in water bodies for a long time, compounding the pollution and human health problems [UNEP, 2006]. 6.5.1.2 Mercury in cement industry Cement kilns are some of the biggest mercury polluters in the world 40. In the USA, for instance, the Environmental Protection Agency (EPA) says cement kilns are America's fourth-largest source of airborne mercury. The agency says the proposed limits would save up to 1,600 lives a year41. EPA's proposed rule would require the nation's 99 cement plants to make steep reductions in releases of pollutants such as mercury, hydrochloric acid, hydrocarbons and soot. The following are some of the areas in the cement process where mercury is found [Smith, 2006]:
• • • •

Mercury is present in raw materials; both natural and recycled inputs; Limestone/shale can contain mercury, and can be significant due to volume of limestone used; Recycled streams such as fly ash from electric power generation often also contribute significantly; Fuels (coal, waste-derived fuels) also contribute varying, sometimes significant amounts; and

40 41

http://action.earthjustice.org/campaign/mercury_0409 www.huffingtonpost.com/2009/04/23/cement-industry-mercury-a_n_190478.html.

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A significant fraction of the mercury present in the feed is not retained in the product; the fraction of that which escapes and is a solid is collected in the particulate air pollution control system, but mercury also exists in the exhaust as a gas.

This survey indicates that 32 (62%) of the 53 African countries produce cement (Table 6.8). No quantitative information was however found on the amount of mercury release to the environment or the harm caused in the environment due to cement production in the areas of mining operations. 6.5.2 Uranium and the environment

Wherever uranium mining and processing is taking place, uranium tailings will remain radioactive for hundreds of thousands of years, and will require such expensive long-term surveillance and maintenance by government and the local citizenry as to make statements about uranium mining providing revenue very misleading. Misuse of uranium tailings has led to internal lung doses calculated to be 100 rems per year to the public. Conservative calculations show that the public near uranium tailings will receive a 25 percent increase in lifetime radon daughter radiation. Uranium tailings will have appreciable radioactivity for more than 100,000 years. There have been many uranium tailings disasters in Australia, Canada and the United States, even with the most modern ''state of the art'' tailings dams [Young and Woollard, 1980]. The following are uranium activity risk areas in Africa, notably in Congo DR, Gabon, Madagascar, South Africa and Zambia, which may have hazardous effects on their respective environments42: CONGO D.R. Since 1997 miners have been entering the former Shinkolobwe mine site each day without authorization. They have excavated a huge open pit next to the former uranium mine, which had been flooded after it was mined out. The miners are interested in cobalt rather than uranium. However, uranium could also be extracted from the ore. In view of the possibility of uranium being extracted and circulated without any control, the United States has demanded the DR Congo government to regain control over the mine site. The 15,000 miners now working the Shinkolobwe mine without authorization from the government risk contracting cancer and developing other health problems because of high radiation levels at the site, concluded investigators from the U.N. mission in Congo42.

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http://www.wise-uranium.org/udec.html#CD

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GABON On April 4, 2007, the organizations SHERPA, CRIIRAD and Médecins du Monde presented the results of an investigation into the health and environmental situation at Areva/COGEMA's former Mounana uranium mine. The resulting report is based on a site tour in June 2006, and evidence of former miners, among others. In summary, CRIIRAD concludes:
• • • • •

During the active mining phase, protection of the workers was not assured appropriately; The follow-up of the health of the former miners is inadequate; In Mounana, several buildings were constructed with radioactive material, some of these buildings had to be demolished; More than 2 million t of uranium mill tailings were simply released into a river between 1961 and 1975, presenting a long-term health hazard; and The reclamation of the site was done in a totally inadequate way.

During the first years of operation, COMUF simply released a total of over 2 million tonnes of uranium mill tailings into the next creek. This creek, the Ngamaboungou, then carried them over kilometers to the Mitembe river. Later, another 4 million tonnes of tailings were dumped in the former open pit mine. Only in 1990, COMUF built a dam to hold the tailings produced during the last years of operation. It has received, however, only the small remainder of the total of nearly 7 million tonnes of tailings43. The mine and mill effluents led to high contaminant concentrations even in the Mitembe river, and dead fish were often observed in the river. In 1996/1997, still, levels of up to 3.2 Bq/l of soluble radium-226 and 1.7 mg/l of soluble uranium-238 were found in the river water. After shutdown of the mine in 1999, these values are reported to have decreased to below 0.7 Bq/l for radium, and below 0.1 mg/l for uranium (for comparison: WHO recommends 0.015 mg/l for uranium in drinking water). In the creek valley, the tailings deposited on the river bed, forming a reservoir for long-term remobilization of contaminants. The tailings moreover formed deposits in the valley, presenting a hazard from external radiation and from re-suspension of radioactive dust. COMUF calculated that residents crossing the valley (Photographs 6.8 and 6.9) to reach their plantations have received annual radiation doses between 2.3 and 2.9 mSv per year. After covering some of the material, the radiation doses are expected to decrease to 0.8 mSv per year. The tailings dumped in the open pit were left without a cover for long years and children used to play on the dusty surface of it. The tailings dam built in 1990 was erected across the Ngamaboungou creek, without providing an - elsewhere mandatory - diversion channel for the creek: the creek is flowing through the dam still (!), leaving it via an overflow, without any treatment.

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http://www.wise-uranium.org/udec.html#CD

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Recently, a large part of the waste piled up at the Ngamaboungou creek has been covered with soil. The mayor of Mounana, however, anticipates that the cover will not last longer than a few years, given the extremely high precipitation rate in the area44.

Photograph 6.8: Detail at confluence of Ngamaboungou creek with Mitembe river.

Photograph 6.9: Residents crossing the Mitembe river a few meters behind the confluence with the Ngamaboungou creek on the way to their plantations.

MADAGASCAR The site has been exploited by open cast mining by French Commissariat à l'Energie Atomique between 1937 and 1954. A monitoring survey of the abandoned mine site and its vicinity revealed radiation doses from gamma radiation and radon 13 times "normal" exposure. The gamma dose rate varies between 250 and 1466 nGy/h, corresponding to annual equivalent dose rates of 2.19 - 12.85 mSv/a44. NAMIBIA On 20th September 2005 Namibia commissioned a second uranium mine despite strong opposition from human rights and environmental groups who fear it could pose an ecological hazard. The Langer Heinrich Mine, 80 km east of the coastal town of Swakopmund, is located in in the protected Namib Naukluft Park. This is Namibia's second uranium mine after Rio Tinto's Rossing Uranium, also situated in the Namib Desert. The mine is wholly owned by Australian exploration and development company Paladin Resources, which got a government go-ahead last month after being awarded a 25-year mining license by the Ministry of Mines and Energy. The World Information Services on Energy (WISE), a pressure group working on nuclear energy issues, has strongly opposed the venture, voicing fears ranging from ground and surface water pollution to radioactive gas emission.
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Environmental lobby groups Earthlife Namibia and Germany's Oeko Institute said the environmental impact assessment for Langer Heinrich had grossly underestimated the hazards. Earthlife Namibia alleged that people visiting the park, a major tourist attraction, would be exposed to higher than internationally acceptable levels of radiation. The mine would also become the single largest consumer of water in Namibia, using 1.3 billion litres per year45. SOUTH AFRICA There are several areas and reports of environmental risks due to uranium mining in South Africa [www.wise-uranium.org]. Below is one cited example: “Investigations of risks due to gold and uranium mining in the West Rand and Far West Rand goldfields of South Africa have …….. revealed An unacceptable level of risk has been identified, primarily due to the chemical toxicity of uranium on ingestion via drinking water. Radioactive levels three times higher than permitted have been found in vegetables grown in wetlands in the Wonderfonteinspruit area between Randfontein and Potchefstroom, …. According to the report by the South African Nuclear Energy Corporation (Necsa) drawn up at the request of the National Nuclear Regulator. Tests on asparagus, oats and onions produced in the Gerhard Minne wetlands showed that the level of radioactive substances was three times higher than the safe permissible level for human consumption. Pointing out that intensive gold mining takes place in the area - and that uranium as a by-product is found in mine dumps there - the news report said large tracts of land in the area of the Wonderfonteinspruit were 150 times more radioactive than the permitted level. It quoted an unidentified spokesperson for the National Nuclear Regulator as saying that the test results in the report were worrying [National Nuclear Regulator, 2007]. ZAMBIA Uranium was mined at Kitwe, where the mine is now operated by Mopani Copper Mines (MCM) Plc, during the 1950s when a company called Amco was contracted to sink shafts at Mindola. The uranium was shipped to the United Kingdom, whose colony northern Rhodesia was then, but since then, the mineral has not been actively mined. From about 100,000 tonnes of uranium ore mined at a grade of 0.19 per cent U, about 100 tonnes U were produced.

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www.minesandcommunities.org/article.php?a=1430

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6.5.3

Other toxic chemicals from oil and non-oil mining industry

Mining industry is also associated with various other toxic chemicals that can cause a variety of adverse health effects. Toxic substances such as arsenic, cadmium, lead (Box 6.2) and sulphuric acid contaminate water and soil, and affect human health. Heavy metals pose serious threats, particularly to children and during foetal development. Among the pollutants from oil industry include petroleum hydrocarbons and sulphur. Box 6.2: Lead poisoning in Kabwe, Zambia, a former lead-zinc mining town
In many mining centres, average atmospheric lead concentrations reach 0.3-0.5 μg/m3 and exceed 1 000 μg/g in dust and soils. The people of Kabwe, in Zambia, face a serious threat from lead and zinc mining activities. At its peak, Kabwe was the largest and richest lead mine in Africa. Unfortunately there were few pollution controls. The mine closed in 1994 and since then the town and province have not only faced growing economic hardship but also the risk of lead poisoning. The vegetation, water and soil are contaminated and about 90,000 children are at risk from lead poisoning. Concentrations of 5 μg/dl threaten brain development; in Kabwe, many children have concentrations exceeding 300 μg/dl. Average blood level is 60-120 μg/dl. To address the problem of lead pollution in Kabwe, the Zambian government has adopted various programmes. There are proposals to either cover the mine dumps with vegetation or cap them with concrete to prevent air pollution. In 2003, the Zambian government asked 2,000 residents to vacate their canal-side homes so that the waterways could be dredged. However, for most residents, finding alternative accommodation is not a reality. Lead can damage the nervous and reproductive systems, and the kidneys, and it can cause high blood pressure and anaemia. Lead accumulates in the bones and lead poisoning may be diagnosed from a blue line around the gums. Children are amongst the most vulnerable. Lead is especially harmful to the developing brains of foetuses and young children and pregnant women. Lead interferes with the metabolism of calcium and Vitamin D. High blood lead levels in children can lead to irreversible learning disabilities, behavioural problems and mental retardation. At very high levels, lead can cause convulsions, coma and death.
FROM: UNEP. 2006. “Africa Environment Outlook 2: our environment, our health”. United Nations Environment Programme (UNEP), P.O. Box 30552, Nairobi, 00100, Kenya.

These chemicals pose serious risks that are compounded by the lack of adequate access to information regarding safe handling, use and disposal of chemicals due to poverty. In the context of scarce resources, chemical containers are often re-used by rural people for household purposes including the collection of water and can result in poisoning. Beyond mining, more than 11 million poisoning cases by pesticides occur annually in Africa, yet few African countries have specialized poison centres. In 2004, only ten African countries had poison centres, and none had more than five [UNEP, 2006].

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Country examples The following are selected country examples: NIGERIA Studies on the quality of seafood resources and sediments of the Qua Iboe river mangrove swamps were conducted between 2003 and 2004 [Nsikak UB, Essien JP, Antai SP. 2007]. The impact of anthropogenic influences principally offshore petroleum activities, solid waste dumping and incessant oil spills on the biotic resources and overall ecological perturbations were of concern. The study analysed for petroleum hydrocarbons and heavy metals loads in 72 samples, each of mangrove epipellic and benthic sediments, Tympanotonus fuscatus and surface water from Qua Iboe Estuary, Nigeria. The levels of heavy metals in the epipellic sediments were comparatively higher in the wet than dry season. The range of average concentrations increased by 1.29%(Cr), 14.98%(Cu), 10.53% (Fe), 7.50% (Ni), 1.57% (Pb), 5.96% (V) and 11.945 (Zn). Mean metal levels in benthic sediments were also higher during the wet than dry seasons with concentrations of 27.06±1.11, 0.66±0.05, 965.13±215.32, 36.42±0.92, 28.97±1.66, 2.99±0.15, and 4.18±0.72 mg/kg for Cu, Cr, Fe, Ni, Pb, V and Zn respectively. The metal concentrations of the freshwater reaches were generally lower than in the estuarine ecozones. The total petroleum hydrocarbons (TPH) levels in sediments and T. fuscatus were highly variable. The overall levels of heavy metals and TPH in the estuary when compared to similar ecosystems with substantial industrial and domestic coastal activities worldwide revealed a moderate to high levels of heavy metal and hydrocarbon pollution. ZAMBIA With large scale mining activities for almost a century, there are serious environmental problems that have occurred over these years. These range from air pollution (Photograph 6.10) in the form of sulphur dioxide, approximately 300,000 to 700,000 tons emitted in the air per year prior to installation of electric furnaces, soil contamination as a result of sulphur dioxide fallout and contained copper and other elements that end up into natural water systems and on the ground, water pollution from runoff (Photograph 6.11) and leakage from existing mine waste dumps and potential for tailings dam failure that could cause extensive physical damage to the ecology with possibility for loss of life. The impact of pollution from mining operations is compounded by the fact that nearly 90% of the population on the Copperbelt is urban. This has resulted in concentrated demand for natural resources such as water, energy and food. The competing demand for water by industry and households has constrained the sustainable use of water resources [Makumba, 2007].
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Photograph 6.10: Air pollution at Nkana mine, Copperbelt of Zambia

Photograph 6.11: Uncontained tailings flow at Nchanga mine, Copperbelt of Zambia

GHANA Ghana, where mining has been going on for over 100 years now, hosts the second-largest gold deposits in the African region after South Africa. Consequently, the country derives 90% of its external revenues from gold mining. Apart from gold, Ghana also produces significant quantities of bauxite and diamonds, and is also among the top five nations across the globe for its manganese ore production. Though the mining industry has been successful in attracting foreign capital, it has also been subject to criticism from the Ghanaian government, environmentalists and human rights activists. Foreign players are reported to exploit legal loopholes and abuse both human rights as well as the environment. Unmonitored releases of mercury—used in the gold-amalgamation process— have caused numerous environmental problems (Photographs 6.12 and 6.13) throughout rural Ghana.

Photograph 6.12: Panning of tailings for gold nuggets at Teshi, Ghana[Hassan, Nartey and Amankwah, 2007].

Photograph 6.13: Degraded land due to small scale gold mining at Teshi, Ghana [Hassan, Nartey and Amankwah, 2007].

A number of studies conducted in small scale gold mining areas have revealed that small scale gold mining is a potential source of heavy metal pollution in Ghana. Metals in their natural states are not bio-available but are released into the environment through gold processing. Gold recovery methods include crushing of the ores, gravity separation and amalgamation with
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Mercury (Hg). Mercury, which does not occur naturally in most mining areas, is introduced into the environment when it is used to amalgamate the gold in the process of extraction. Tailings with varying levels of contaminants are often discarded in farm fields and into rivers. Tailings are generally sandy with little fine fraction, and they vary from highly acidic (e.g. Tamso site) to alkaline (e.g. Obuasi site). The studies [Manu A. et al. 2007] have revealed very high concentrations of metals in tailings in some places, for example Arsenic (2,409 mg/kg at Obuasi site), Mercury (from 22.2 to 44.0 mg/kg). These values are several magnitudes greater than the natural background concentrations of Hg in soil systems. Pollution of the environment through the release of heavy metals from small scale mining operations is most severe at the Obuasi site. Tailings at Tamso, Senyakrom, Baako Akohu sites are discarded in streams which eventually become the source of drinking water downstream. Studies are required to test crop fields on which tailings have been discarded for heavy metals, as these metals may become bio-available with time and enter the food chain. KENYA A study site in the Migori Gold Belt of Kenya found high levels of metals in the tailings including Lead (510 mg/Kg), Arsenic 76.0 mg/kg), and Mercury (1920 mg/Hg/kg). In stream sediments, the levels of these metals were as high as 11,075 mg/Kg for Lead, 1.87 mg/Kg for Arsenic and 348 mg/Kg for Mercury. These values were above background levels of these metals in the soil [Ogola, Mitullah and Omulo, 2002]. The highest metal contamination was recorded in sediments from the Macalder stream (11075 mg kg–1 Pb), Nairobi mine tailings (76.0 mg kg–1 As) and Mickey tailings (1920 mg kg–1 Hg). Inhaling large amounts of siliceous dust, careless handling of mercury during gold panning and Au/Hg amalgam processing, existence of water logged pits and trenches; and large number of miners sharing poor quality air in the mines are the major causes of health hazards among miners. The amount of mercury used by miners for gold amalgamation during peak mining periods varies from 150 to 200 kg per month. Out of this, about 40% are lost during panning and 60% lost during heating Au/Hg amalgam. Mercury has a long residence time in the environment and this makes its emissions from artisan mining a threat to health. The use of pressure burners to weaken the reef is a deadly mining procedure as hot particles of Pb, As and other sulphide minerals burn the body. Burns become septic. This, apparently, leads to death within 2–3 years. A study to determine the levels of pollution due to mining activities in the Kerio valley revealed that there are high levels of iron present in the river and its environs. The Kerio River water had 0.883 parts per million (ppm) of iron, which is about three times the World Health Organization (WHO) recommended value of 0.3ppm. The levels of fluoride and heavy metals emitted into the environment from Fluorspar Mining Plant in Kerio Valley were also high. High concentrations were found in the soils, plants and water in the vicinity of fluorspar mining and processing
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operations, which the culprit factory intentionally discharged into the river at night Redorbit, 2006]. TANZANIA In another study in Tanzania, analysis of gold ore tailings by Ikingura et al. (1997) revealed Hg concentrations to be as high as 31.15 mg/kg, with an average concentration of 10.27 mg/kg. The high Hg content in the tailings is an indication that a significant amount of Hg is left in the tailings after the amalgamation process [Manu A. et al. 2007]. SOUTH AFRICA The coal industry has not only provided a sizeable source of income through generating export revenues, and created a large number of jobs; it has also provided the bulk of the country's energy needs. Today, coal accounts for almost 75% of energy consumption in South Africa, covering all energy, industrial and transport uses. However, South Africa, the industrial power-house of Africa, is also the biggest environmental polluter. It is responsible for 90% of energy sector carbon dioxide emissions in Sub-Saharan Africa. The two major types of pollution in South Africa are air and marine pollution. The industrial sector is the prime contributor to air pollution. More than 90% of South Africa's electricity is generated from the combustion of coal that contains approximately 1.2% sulfur and up to 45% ash. Coal combustion can lead to particulate matter in the air, as well as contribute to acid rain. Nitrogen dioxide levels in Capetown, South Africa, for instance, have been found to surpass the World Health Organization's annual mean guideline for air quality standard of 50 micrograms per cubic meter46. South Africa also experiences negative environmental impacts from mining activities. Pollution from mining activities is probably the most direct cause of groundwater pollution in South Africa. Acid mine drainage (AMD) is also occurring in South Africa, an example of which is reported at the West Rand in Gauteng Province [Department of Environment and Tourism. 2008]. Furthermore, small waste coal dumps cause both pollution and safety problems, as waste coal may spontaneously ignite. LIBERIA In Liberia which has just emerged from war, thousands of Liberians rely upon mining for their livelihoods. For example, since 2003, intensive mining in the park has occurred and two major mining settlements – called Iraq and Baghdad – were established with a population of between 3,500 – 5,000 people [SDI, 2005]. Research, in the region of Iraq, showed that gold mining and trading is was the main economic activity, generating for some miners about 198.45 gram of gold a week. At a minimum price of U$9 per gram in Monrovia, this amounts to an income of U$1,786 a week [UENP, 2006].
46

http://corrosion-doctors.org/AtmCorros/mapSA.htm

77

However, the various negative environmental impacts of the alluvial mining techniques are hardly regulated. Mining results in the discharge of large amounts of suspended solids into watercourses, and the release of large amounts of mercury into the environment.

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6.6

Summary on Pollution Due to Minerals Industry

Mining industry is a significant source of pollution and in Africa ranks second after agriculture. Table 6.9 is a summary of the existence of small and large scale mining activities and the prevalence of environmental issues in African countries. In the Table, “X” means an environmental issue is present in the respective country, but that there is no quantitative information available. A “shade” means either the environmental aspect is not present, or this author did not come across the respective information. The Table shows that artisanal/small scale mining activities exist in 51 (96%) of the African countries while large scale mines exist in 41 (77%) of the countries (Table 6.9). Figure 6.16 is a summary of selected pollution prevalent in Africa. The numbers in the figure are percentages of the countries experiencing the respective pollution, out of the total of 5347 African countries. MINING, GREENHOUSE GAS EMISSIONS AND ENERGY Table 6.10 and Figure 6.16 shows that 51 (96%) of the 53 African countries are emitting green house gases (GHGs). Data for Somalia and Equatorial Guinea could not be found. In the African countries producing cement (62%) and coal (25%), and also those countries with large scale operations running non-cement processing plants (68%), the GHGs are likely to be significant. Apart from estimates of emissions based on coal for South Africa, quantitative information to directly attribute the emissions to mining activities could however not be found. To minimize energy related impacts, effort should be directed at development and utilization of renewable energy sources including hydro power, liquid biofuels, wind, solar and tidal wave. LANDUSE AND LANDUSE CHANGE Mine dumps are experienced in 51 (96%) of the African countries (Table 6.10 and Figure 6.16). Mining industry physically occupies a significant amount of land. In Zambia alone, dumps in the Copperbelt Province take up 220,000 hectares by large scale copper mines. In South Africa, gold mining alone has degraded about 247,000 hectares of land. The cumulative dumps by small scale mining activities which are prevalent in 51 (96%) of the countries on the continent is also a major source of concern, and the land degraded has not been quantified. When other mining degraded features such as areas covered by acid mine drain, inaccessible mine caving areas, sulphur dioxide plume areas as well as pits and quarries, the land used and degraded by mining is cumulatively much greater. There is scant assessment of this land coverage. Recycling of dump material, conversion of safe dump areas to other economic uses and involvement of traditional authorities in monitoring small scale mining activities are among measures that can be applied to minimize wasteful land occupancy by mining activities.
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79

Table 6.9: Summary of mining and environment in Africa
COUNTRY LARGE SCALE MINING SMALL SCALE MINING PRIMARY MINERAL EXPORT RANK 1 - 3 VALUE ADDITIO N

CO248 / TOTAL49 GHG Emissions50 (Mt)

MINE DUMPS (xMln t)

MINE DUMP COVER (x1000 ha)

WATER CONSUM PTION (Bln lit/yr)

MERCUR Y (tonnes)

CYANID E

URANIUM EXPLORAT / CONTAMINA TE

ACID MINE DRAINAG E

MAJOR MINE ACCIDENTS

WATER POLLUTIO N54

AIR POLLUTI ON55

S. AFRICA Angola Botswana Comoros Congo D.R. Lesotho Madagascar Malawi Mauritius Mozambique Namibia South Africa Swaziland Tanzania Zambia Zimbabwe C. AFRICA Cameroon Central African Rep Chad Congo Braz. Equatorial Guinea Gabon E. AFRICA Burundi Djibouti Eritrea Ethiopia Kenya Rwanda

D, Cem D, Ni D,Ot,Cem D Ilm,Cem Cem,Coal Al,Cem D,U,Zn
PGMs,Au,U,D,Coal

D, Au D,Coal IM D,Au51,Ct D Au, Gs Gs,IM
Fe,Mn,Co

1,2 1,2 3

D 1 1,2,3 1,2,3 1,3 1,2 2,3

Gs,Au D D,Au,Gs
D,Au,Gs

Cu, Fe

Asb,Coal Au,Cu,Cem
Cu,Co,Coal,Cem

Pt,Ni,Cem,Coal Al, Cem

Gs Au,D,Gs D,Au Au,D
Au,D,IM

Cu

8.56 / 4.54 / 9.29 0.09 / 0.52 2.33 / 44.53 / 182 2.73 / 21.93 1.05 / 7.07 3.20 / 3.36 1.62 / 8.19 2.98 / 5.60 341.96/379.84 0.96 / 2.64 4.79 / 39.24 2.26 / 32.77 9.88 / 27.59 3.12 / 165.73

X X >113 >3.05 X X X X X X >47 X X >220 X X X X X X

X

X X X X X X

Expl / Expl / X Expl / X Expl / X Expl / Expl / X Expl / X Expl / Expl / X Expl / Expl / Expl / X Expl / X X

X X X X X X X X X X X X X X X X X X X

>471

>1.3 6%

X X

X

X

>2807

X

3052 X X X X X X X X X X X

X

X X

X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X

1

0.25 / 38.34 0.13 / 8.02 1.18 / 1.38

Cem

Au, D, Au,IM

Mn,Cem,U Sn,Au
Scrap

Au,D Au53
Salt

3

2.09/6.52 0.22 / 2.00 0.37 / 0.51 0.53 / 0.60 5.27 / 47.75 11.0 / 21.47 0.57 /

X X X X 3.7 X

Expl / X Expl /

X X X X X X X

3

Cem Tant,Cem Fluors,Cem Mo,Nb,Sn,Cem

Au,IM Au,IM,Pt Gs,Au Au

2,3

48 49 50 51

http://www.iea.org/Textbase/country/maps/AFRICA/co2_tpes.htm http://unstats.un.org/unsd/environment/air_greenhouse_emissions.htm Million tonnes of CO2 equivalent http://www.youtube.com/watch?v=pnDExclWFhw Veiga MM, Maxson PA and Hylander LD. 2006. “Origin and consumption of mercury in small-scale gold mining”. Journal of Cleaner Production, Volume 14, Issues 3-4, 2006, Pages 436-447. http://indexmundi.com/minerals/?country=bi&product=gold&graph=production.

52
53

80

Table 6.9 (continued)
COUNTRY LARGE SCALE MINING SMALL SCALE MINING MINERAL S EXPOT RANK 1 - 3 VALUE ADDITIO N

CO2 / TOTAL GHG Emissions (Mt)

MINE DUMPS (xMln t)

MINE DUMP COVER (x1000 ha)

WATER CONSUM PT (Bln lit/yr)

MERCUR Y

CYANIDE

URANIUM EXPLORAT / CONTAMIN

ACID MINE DRAINAG E

MAJOR MINE ACCIDENTS

WATER POLLUTIO N54

AIR POLLUTI ON55

Seychelles Somalia Sudan Uganda N. AFRICA Algeria Egypt Libya Morocco (+W. Sahara) Tunisia W. AFRICA Benin Burkina Faso Cape Verde56 Gambia Ghana Guinea-K. Guinea-B. Ivory Coast Liberia Mali Mauritania Niger Nigeria Sao Tome & Principe Senegal Sierra Leone Togo
COUNTRY

Cem Cem Cem,Fe,IM
Cem,Coal,Fe,Al, Cu Fe,Cem,IM Aci,Wr,CP,Au, Co,Cu,Ag,Cem

IM Gs,Salt Au
Au,Co,IM

0.55 / 0.26 11.43 / 54.24 1.83 / 42.60 85.91 / 3 Cu 152.74/117.27 42.44 / 1,2,3 3 Cu, Ox Cu 39.80 / 44.37 19.70 / 25.14 3.01 / 39.35 1.10 / 5.97 0.28 / 0.29 0.29 / 4.24 8.64 / 13.40 1.34 / 5.06 0.27 / 6.13 / 0.47 / 0.57 / 8.67 2.56 / 4.33 1.2 / 4.86 51.42 / 242.63 0.09 / 1 1,3 2
MINEREX PORT RANK 1 - 3

X X X X X X X X X X X X X X X X X X X X X X X X X
MINE DUMPS (xMln t) MINE DUMP COVER (x1000 ha) WATER CONSUM PT (Bln lit/yr)

X X X X X X X X X X X X X X X X X X X X X X X X

Expl / Expl / Expl / Expl / Expl / Expl / Expl /

X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X
AIR POLLUTI ON

Au IM Salt Pb,Zn

X

Cem,Fe,Wr Scrap,Cem Cem Cem Mn Al,Cu Au Cem
Fe,Cem,Cu,Au

U Fe,Cem,Coal

Au,IM Au,IM Salt IM Au,D Au,D IM Au,D,IM D,Au Au Au Au Gs IM

3

Expl / Expl / Expl /

X

X

2 1,2,3

X X

X Expl / Expl / Expl / X Expl / X

1 1

X

X

Aci,Cem D,Cem Cem,CP,IM
LARGE SCALE MINING

Au,Salt,IM

Ox

D,Au Au,D
SMALL SCALE MINING

4.46 / 9.57 0.99 / 0.90 / 6.28
CO2 / TOTAL GHG Emissions (Mt)57

X X X
MERCUR Y CYANIDE

Expl / Expl / Expl /
URANIUM EXPLORAT / CONTAMIN ACID MINE DRAINAG E MAJOR MINE ACCIDENTS

X X X
WATER POLLUTIO N

VALUE ADDITIO N

PREVALENCE (%)

77

96

45

13

96

6

96

21

79

2

60/17

13

15

98

100

54

[UNEP, 2006] http://www.uneca.org/csd/CSD4_Report_of_African_Atmosphere_and_Air_Pollution.htm http://minerals.usgs.gov/minerals/pubs/country/africa.html, http://en.wikipedia.org/wiki/List_of_countries_by_carbon_dioxide_emissions

55
56

57

81

KEY for TABLE 6.9: Aci=Acids, Ag=Silver, Al=Aluminium, Asb=Asbestos, Au =Gold, Cem=Cement, Co=Cobalt, CP=Calcium(natural) Phosphate, Ct=Coltan, Cu=Copper, D=Diamonds,
Expl=Exploration, Fe=Iron, Fluors=Fluospar, Gs=Gemstones, Ilm=Ilmenite, IM=Industrial Minerals (Clay, sand, gravel, crushed stone, etc), Mn=Manganese, Mo=Molybdenum, NG=Natural gas, Nb=Niobium, Ni=Nickel, O=Oil, Ot=Other minerals, Ox=Oxides, Pt=Platinum, Sn=Tin, Tant=Tantalum, U=Uranium, Wr=Wire/conductors, Zn=Zinc.

X = this is an issue, but there is no quantitative information available. Shade=it is not an issue, or the author did not find information.

NOTE also that Table 6.9 summarizes information from the various sections and sources above.

Table 6.10: Summaries of regional mining and environment in Africa [From Table 6.9]
REGION SOUTHERN AFRICA (of 15) CENTRAL AFRICA (of 6) EAST AFRICA (of 10) NORTH AFRICA (of 5) WEST AFRICA (of 17) TOTAL (out of 53) = PREVALENCE (%) =
LARGE SCALE MINING SMALL SCALE MINING MINERAL S EXPORT RANK 1 - 3 VALUE ADDITIO N

CO2 / TOTAL GHG Emission s (Mt)

MINE DUMPS (xMln t)

MINE DUMP COVER (x1000 ha)

WATER CONSU MPTION (Bln lit/yr)

MERCU RY

CYANIDE

URANIUM EXPLORAT ION

URANIUM MINING / CONTAMI NATION

ACID MINE DRAINAG

MAJOR MINE ACCIDEN TS

WATER POLLUTIO N

AIR POLLUTI ON

13 3 8 5 12 41

77

14 6 10 4 17 51 96

9 2 2 3 8

3 0 0 3 1

15 5 9 5 17

3 0 0 0 0

24 45

7 13

51 96

3 6

14 6 9 5 17 51 96

4 0 0 5 2

11 21

9 6 7 5 14 41 77

1 0 0 0 0

10 4 4 4 10

6 2 0 0 1

4 0 0 1 2

4 0 0 0 4

1 2

32 60

9 17

7 13

8 15

14 6 10 5 17 52 98

15 6 10 5 17 53 100

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Figure 6.16: Prevalence of selected pollution in Africa due to mining industry [From Table 6.9].

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WATER USE AND ACIDIFICATION Acid mine drainage (AMD) or signs thereof, a very dangerous, sometimes irreversible and very expensive when it occurs is reported in a number of African countries. Consequences, especially in relation to water resources and soils are high when that occurs. AMDs must not be allowed to occur in the first place. Fourteen percent 7 (13%) of the African countries have reported either existence of AMD or susceptibility of their mine environments to AMD (Table 6.10 and Figure 6.16). AIR POLLUTION Air pollution from mining industry in Africa is a significant concern. As shown in Table 6.11 and Figure 6.16, all (100%) of African countries are experiencing some form of air pollution from various sources of mining activities, including dumps, gas emissions from smelters and mercury in artisanal/small scale gold processing activities.
Table 6.11: Prevalence of air pollution in Africa due to mining activities [From Table 6.9]
REGION SOUTHERN AFRICA (of 15 ) CENTRAL AFRICA (of 6 ) EAST AFRICA (of 10 ) NORTH AFRICA (of 5) WEST AFRICA (of 17) Total = Percentage (%) NUMBER OF COUNTRIES WITH MINING RELATED AIR POLLUTION AS AN ISSUE 15 6 10 5 17 53 100

MERCURY POLLUTION, HEALTH AND WATER RESOURCE Small scale gold mining and processing is carried out in 34 (64%) while cement production is prevalent in 33 (62%) of the African countries (Table 6.10 and Figure 6.16). Both of these activities pollute the environment with mercury. Environmental pollution and negative health effects due to poor use of mercury as well as degradation of water resources is a major source of concern. Intensified training, awareness and making available alternative sources of income and cement substitutes are among the measures required to minimize the problem in these areas.

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URANIUM AND THE ENVIRONMENT AND HEALTH Uranium risk areas have been reported in countries including Congo D.R., Gabon, Madagascar, Niger, South Africa and Zambia58. In these countries, there is a tendency to keep environmental pollution and the resulting health impacts a closely guarded secret. Section 7 of Article 13 of the Draft ECOWAS Directive on the Harmonization of Guiding Principles and Policies in the Mining Sector States that:
“No data shall be considered confidential if it relates to degradation or claimed degradation of human health, the environment, or worker safety”.

The levels of pollution are dangerously high in all the five countries, and the likely health impacts could also be high. In South Africa, for instance, foods grown in the uranium areas have been found to be significantly polluted [National Nuclear Regulator, 2007]. Uranium mining/contamination (Table 6.10 and Figure 6.16) is reported in 9 (17%) of the African countries while exploration is reported in 32 (60%) of the countries55. If all these exploration activities result in productive mines, the scale of uranium contamination could scale up and become wide-spread over the African continent if appropriate measures are not taken. Uranium related environmental degradation and health effects are very dangerous and long lasting. Appropriate measures are needed to stem the problem in the bud. MULTIPLE LOSSES BY AFRICA Africa at present is a producer of primary mineral products which she exports to industrialized countries. Meanwhile, most pollution occurs at primary level in the minerals value chain. About 98% of resource flows in the form of excavation residues occur in production countries. This means that Africa retains the environmental burden which has the effect of reducing the continet’s earnings from minerals. For copper, for instance, the realistic price paid by EU buyers has been determined to be 33% less than they should have normally paid to primary copper producers in the EU. The cost borne by primary copper producers in Africa which lack downstream processing could be 3 times, or more, higher than the EU counterparts. Only about 7 (13%) of the African countries are carrying out some form of value addition to the minerals (Table 6.10 and Figure 6.16). The continent must intensify a shift from primary production to increased value addition. At primary production level, African countries must employ a “balance sheet” approach which, for every investment, must indicate a prior NET GAIN economically, environmentally and socially, before accepting the investment. To achieve this, it is necessary to develop appropriate mining investment and socioenvironmental regimes. In the following Chapters, the main focus is targeted at assessing the efficacy of the current socio-environmental regimes in Africa.

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http://www.wise-uranium.org

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7

THE EFFICACY OF ENVIRONMENTAL AND SOCIAL REGIMES IN MINING INDUSTRY IN AFRICA

Historically, large scale mining began during the colonial period. During the colonial period there was very limited, if any, public accountability, and there was widespread environmental damage. In the follow-up years, environmental degradation continued or even increased for those newly independent countries that were led by dictatorial regimes because of the financial constraints under which the mines operated. In countries where governments were immune to public pressures, especially in Eastern Europe, Africa and Asia, the process of degradation continued and when Governments themselves were involved in mining it remained an uncontrolled industry and hence environmental decay continued. 7.1 The Essence of an Environmental and Social Regime in Mining Industry

Simply defined, an environmental and social regime in mining development projects which are based on extraction of natural resources should be ensuring that mining activities do not cause adverse effects on the social and natural environment. Humanity will continue to exist beyond mine projects. This existence will however progressively become unsustainable if mine projects degrade or wipe out the natural resources on which humanity depends. For this reason we should, to the greatest extent possible, at any given time quantitatively account for the state of environment during and after the mine project. At any such state, the host communities of the mine development should QUANTITAVELY ensure that they are not disadvantaged environmentally, socially and economically. Based on the NET-GAIN principle discussed in Chapter 3 of this report, an environmental and social regime balance sheet for mining industry can be categorized in three sequential parts, as shown by in Table 7.1.
Table 7.1 Sequential parts of the environmental and social regime balance sheet in mining industry
Part 1 OBJECTIVES OF AN ENVIRONMENTAL AND SOCIAL REGIME In Part 1, the regime should define its position and attitude towards environment and natural resources. Consequently, it should also clearly declare the need to achieve a NET GAIN socially and economically. Furthermore, it must demand that at the end of the mine development, there should be no liabilities, and environment must be left “AS WAS” before development or BETTER. The above must NEGOTIABLE. be NONPart 2 REGIME-BASED ACTIONS DURING AND AFTER MINE PROJECT In Part 2, The necessary actions required to achieve the objectives should be explicitly outlined, and they should be diligently implemented. Their roles, big or small, are what make the chain/bridge (regime) complete to deliver the intended results. The efficacy (strength) of this bridge (Environmental Regime) is only as effective (strong) as the weakest element/action (link) in its midst. Part 3 STATE OF RESULTS AT ANY TIME OF THE MINE PROJECT & ITS CLOSURE Part 3 is the dynamic NET picture resulting from the actions of Part 2. Both the mine developer and the mineral host country should be able to track the performance of the environmental regime at any given time during the life of the mine, and after closure. The operation must be terminated if/when NET negative results, with no sign of likely positive change, start to occur.

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The premise over which this balance sheet is developed is simple. It is likened to a mine developer whose aim is to make a profit. Both the projection in the business plan and the actual operation must always remain favourable, failure to which the investor will not proceed. Similarly, therefore, the mineral host community/country should not proceed with the mine project unless the projection and eventual operation indicate that the project will be socially, economically and environmentally favourable. That is, a mine project should be accepted only if it meets the needs of the present without compromising the ability of future generations to meet their own needs. 7.2 Profiling Social and Environmental Regimes for Mining Industry in Africa

Based on the above concept, environmental and social regimes from a sample of thirteen (13) African countries including Botswana, Congo D.R., Ethiopia, Gabon, Ghana, Guinea, Mozambique, Nigeria, South Africa, Tanzania, Uganda, Zambia and Zimbabwe were profiled for their provisions in terms of Table 7.1. A sample of this profiling is presented in Table 7.2. Results of the entire profiling are presented in Appendix 4. Summaries of results of the profiling of a sample of 13 social and environmental regimes for mining industry in Africa are presented in Tables 7.3 and 7.4. In Table 7.3, “1” indicates that the regime in the respective country has a provision while a shade indicates that there is no provision. From these tables, the following can be observed: 7.2.1 Objectives of the social and environmental regimes for mining industry

Explicitly stating objectives of a regime sets a reference point for social and environmental activities for all players related to mining projects. Mine developers, for example, will take the actions they do, only because it is a requirement and not because they appreciate. 7.2.1.1 Sub-objective on sustainable development Only 54% (7 out of 13) of the sample countries have explicitly defined the objectives of their environmental regimes. However, the objectives are only directed at the intention to ensure sustainable development by protecting the environment and associated natural resources. 7.2.1.2 Sub-objective on a development that adds value

Even for those countries that have stated sustainable development objectives in their environmental regimes, none (0%) of the objectives mentions the fact that the purpose of a mine development is to socially, economically and environmentally (NET) add value to the host community.

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Table 7.2 Profile of social and environmental regimes in mining industry in Africa
DESIRED DESIGN
BRIDGE FOR AN EFFECTIVE SOCIAL AND ENVIRONMENTAL REGIME

EXISTING DESIGN BOTSWANA CONGO D.R. ETHIOPIA To improve and enhance the health and quality of life of all Ethiopians and to promote sustainable social and economic development through the sound management and use of natural, human-made and cultural resources and the environment as a whole so as to meet the needs of the present generation without compromising the ability of future generations to meet their own needs [www.epa.gov.et/AboutEPA.htm].

ELEMENTS

JUSTIFICATION / DESCRIPTION

1

Mission / Objective(s) of the social and environmental law

(a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Humanity will continue to exist beyond a mine project. Continuity of human existence will be threatened if a mine project is wasteful of natural resources.

To foster the pursuit of sustainable development by coordinating the protection of the country’s environment and the conservation of its natural resources.

2 Ingredients of an enabling bridge to desired results

(b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry (b) Autonomous body with capacity to enforce the environmental laws. (c) Integration of environmental requirements into mining legislation. (d) Mandatory environmental prerequisites / preconditions to exploration / mining rights. (e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection.

A mining project must socially, economically and environmentally NET add value to the host community. Environmental regime sets the framework for implementing environmental protection activities in mining operations. Mines and Minerals Act 1999, sec. 14(1) (b). Mining Proc. No 52/1993, Article 26(3). The Environmental Protection Authority (EPA) and Regional Environmental Agencies (EIA Proc. No 299/2002 & Environmental Pollution Control Proc. 300/2002). AUTONOMOUS? Provisions for environmental requirements in the Mining Proclamation No 52/1993, Article 26(3). (i) No environmental preconditions for exploration rights. (ii) Yes for mining rights [Mining Proc. No 52/1993, Article 46(2) (h)& Mining Regulation, Article 5(2)(d)]. NIL

Mining Code, Art. 39&42.

An environmental regime will be “lame” in the absence of an autonomous body with capacity to enforce it.

The Department of Environmental Affairs Act 6, 2005 [Ch6507s2]2. AUTONOMOUS?

Department in charge of the Protection of the Mining Environment, Ministry of Mines (Art. 15). AUTONOMOUS? Provisions for environmental requirements in the Mining Code, Art. 39&42. (i) Requirement to develop an environmental management plan to obtain mining rights (Art.42). (ii) Existence of rehabilitation plan for mine closure (Art. 80(c))

A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry. Need to carry out mining operations in an environmentally friendly manner should be non-negotiable, and must be mandatory.

Provisions for environmental requirements in the Mines and Minerals Act 1999, sec. 14(1)(b).

(i). Exploration rights [Sec. 14(1)(b)] (ii) Mining rights [Sec. 65]. (iii) Quarry rights (Art. 154(b))

Sufficient technical and financial resources are necessary to effectively enforce environmental regime. Inadequate negotiation capacity disadvantages the mineral host community to bargain for environmental protection and mineral wealth benefits.

Department should be efficiently managed and provided with the necessary resources [www.saiea.com/dbsa_book/Botswana.pdf]

NIL

NIL

NIL

NIL

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Table 7.2 (Continued)
(g) A well informed and adequately vigilant public against environmental mismanagement. (h) Adequate public participation in environmental management. Absence of a well informed and adequately vigilant public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored. Participation of host community in environmental management strategically cardinal during active mine period and for post mining period.
(i) Promotion of environ education & public awareness programs (Dept of Environmental Affairs) (i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information. (ii) NO Public hearing/comments (i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information. (ii) Public hearing/comments on EIA (Article15).

[www.saiea.com/dbsa_book/Botswana.pdf]
(ii) Public hearing/comments on EIA Sec. 12(2) (a).

NIL

NIL
(i) Jobs and on-job training. (Art. 273(c)). (ii) Priority to Congolese firms for any mining contracts with conditions in terms of quantity, quality, price and delivery and payment dates (Art. 273(f)). (iii) Consent to operate near occupied land (Art. 279). (iv) Compensation for damages even after rights granted (Article 280 & 281). (v) Plan for social responsibility (Art. 69(g)). Management of postmine social impacts?

NIL

(i) Socially responsible mine project.

A mine project must be socially and economically responsible to host community.

(i) Jobs and on-job training (ii) No displacement without consent (iii) Compensation (Mines and Minerals Act 1999, Sec. 63). (iv) Preference for domestic goods and services owned by Botswana citizens (Mines and Minerals Act 1999, Sec. 12). Management of postmine social impacts?

(i) Jobs & on-job training (Mining Proc. No 52/1993, Article 46(2)(h)& Min. Reg., Article 5(2)(d)). (ii) Domestic goods and services (Mining Proc. No 52/1993, Art. 27(3)) (ii) No displacement without consent (iii) Compensation where necessary (Mining Proc. No 52/1993, Article 24). Management of postmine social impacts?

(j) Quantified expectations known, traceable and accessible by all players. (a) Quantified NET benefits (envisaged to be POSITIVE). 3 Quantifiable / measurable NET results (b) Quantified environmental and social liabilities (envisaged to be ZERO)

All benefits (environmental, monetary, etc) should be quantified and known in advance and traceable during and after mine project. The NET result (environmental, monetary, etc) of the measures of the environmental regime must be dynamically assessed against planned targets, and to terminate the mine project if results become significantly unacceptable.

NET GAIN/LOSS quantified?

NET GAIN/LOSS quantified?

NET GAIN/LOSS quantified?

(i) Taxes, royalties, etc. NET quantified gain/loss? (i) Biennial environmental audits to ensure compliance (Sec. 21), suspend/terminate license if mine project fails to comply with environmental commitments. (ii) Mine project must rehabilitate mine area on closure (Mines and Minerals Act 1999, Sec. 65). (iii) Security fund for environmental liabilities (Mines and Minerals Act 1999, Sec. 65(9)). ZERO LIABILITY?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss? (i) Suspend/terminate license if mine project fails to comply with environmental commitments (EIA proc. 299/2002, Article 12). (ii) Mine project must rehabilitate mine area on closure (Mining Proc. 52/1993, Art. 52(3)& Mining Regulation, Art. 29). (iii) Mine project MAY require to deposit security for environmental liabilities (Mining Proc. 52/1993, Article 45). ZERO LIABILITY?

The liabilities of a mine project must be dynamically assessed against projections, and to terminate a mine project if liabilities begin to indicate unfavourable state.

(i) 0.5% of turnover rehabilitation fund (Art. 204, Art. 258). (ii) Mine project must rehabilitate after sampling / mining closure (Art. 147, Art. 294). ZERO LIABILITY?

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Table 7.3 Results of the profiling of a sample of 13 social and environmental regimes for mining industry in Africa.
BRIDGE

ELEMENTS

COUNTRY
Botswana Congo DR Ethiopia Gabon Ghana Guinea Mozamb Nigeria South Africa Tanzan Uganda Zamb Zimbab

TOTAL 7

% 54 NIL 100 100 100 54 85 23 NIL 31 62 8 85 92 62 62 100 NIL NIL 100 NIL 46 62 85 8

1

a b a b c d e f

Regime for what? $ PROJECTED NET gain Environment regime available Autonomous authority Environ in Min Act Preconditions for Explo rights Preconditions for Minin rights Implementation Resources Capac to negotiate Educate public Public hearing Active Public Participation Jobs to locals Training locals Business to locals Consent to move in Compensation CareforClosure SocioImpacts

1

1

1

1

1

1

1

NIL
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 13 13 13 7 11 3

NIL
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 8 1 11 12 8 8 13

2

g h

i

NIL NIL
1 1 1 1 1 1 1 1 1 1 1 1 1 13

j a

Pre-Publicized $ benefits Taxes, royalties, etc. $Dynamic Balance Sheet Periodic environ audits

NIL
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 8 11 1

3
b

Rehabilitation fund Rehabilitate at closure $Dynamic State of Liability
ELEMENTS COVERED OUT OF 25 ELEMENTS COVERD (%)

18 72

13 52

13 52

11 44

17 68

10 40

7 28

11 44

19 76

10 40

15 60

17 68

10 40

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Table 7.4 A summary of results of the profiling in Table 7.3.
DESIRED DESIGN BRIDGE FOR A SOCIAL AND ENVIRONMENTAL REGIME 1 Mission / Objective(s) of the social and environmental law ELEMENTS OF THE BRIDGE
(a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry (b) Autonomous body with capacity to enforce the environmental laws. (c) Integration of environmental requirements into mining legislation. (d) Mandatory environmental prerequisites / preconditions to exploration / mining rights (e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection.

STATUS Total Sample Score 7 NIL 13 13 13 7 11 3 NIL 4 8 1 11 12 8 8 13 NIL NIL 13 NIL 6 8 11 1 %
54 NIL 100 100 100 54 85 23 NIL 31 62 8 85 92 62 62 100 NIL NIL 100 NIL 46 62 85 8

REMARKS

2 Ingredients of an enabling bridge to desired results (to attain the objectives)

(g) A well informed and adequately vigilant public against environmental mismanagement. (h) Adequate public participation in environmental management.

(i) Socially responsible mine project.

(j) Quantified expectations known, traceable and accessible by all players. (a) Quantified NET benefits (envisaged to be POSITIVE).

3 Quantifiable / measurable results at any stage of the mine project

(b) Quantified environmental and social liabilities (envisaged to be ZERO)

Regime for what? $ PROJECTED NET gain? Environ regime? Autonom authority? Environ in Min Act? Preconds for Expl rts Preconds for Min rts Implem. resources? Capac to negotiate? Train public Public hearing Public participation? Jobs Training Business Consent Compensation Post mine social impacts? Publicised $ benefits? Taxes, royalties, etc. $DYNAMIC Balance Sheet? Periodic environ audits Rehabilitation fund Rehabilitate at closure $DYNAMIC state of liability?

13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13

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7.2.2 7.2.2.1

Measures to achieve intended results Presence of a social and environmental regime for mining industry

All (100%) of the thirteen countries sampled have social and environmental regimes, or provisions thereof to various degrees in the mining codes, for mining industry. The number and distribution of “1” markings in Table 7.3 is an indication of the degree of comprehensiveness and coverage on social and environmental issues by the respective regimes. The analysis (Figure 7.1) shows that only 7 (54%) out of the 13 sample countries have regimes which have addressed more than 50% of social and environmental bridge elements. With 19 (76%) out 25 elements addressed, South Africa has the most comprehensive regime followed by Botswana (72%), with Ghana and Zambia in third position at 68% each.

Figure 7.1: Comprehensiveness of social and environmental regimes for mining industry in Africa (in %)

It is however important to note that having a regime does not automatically mean that all is well with social and environmental issues. All the elements of the regime have to be effectively implemented for the objectives to be met.

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7.2.2.2

Autonomous body with capacity to enforce the environmental laws

All (100%) of the sample regimes (2(b) in Tables 7.3 and 7.4) indicate existence of some form of authority to enforce the social and environmental regime. The structures range from environmental authorities established to run independently, to departments within ministries. Establishments which run independently with independent boards/councils appear to have more autonomy than those running as departments in mainstream ministries. Such autonomy is also spelt out by the powers given to them, as opposed to those serving only as advisory entities in ministries. Regimes with autonomous bodies will generally achieve more than those in advisory capacity, as the advise may be compromised. 7.2.2.3 Integration of environmental requirements into mining legislation

All (100%) of the sample regimes (2(c) in Tables 7.3 and 7.4) have some mention of environmental and social issues in the mining codes. Again, the depth of integration range from a few lines (e.g. Zimbabwe) to the whole section (e.g. South Africa) dedicated to social and environmental issues. A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry. The weaker the policy, the less will be the attention to social and environmental issues in mining industry of the associated country. 7.2.2.4 Mandatory environmental preconditions to obtain exploration/mining rights

Fifty-four (54%) and 85% of the sample regimes (2(d) in Tables 7.3 and 7.4) have provided for mandatory environmental prerequisites for obtaining prospecting and mining licenses, respectively. Where left optional, it may be difficult to carryout correctional measures in case a prospector/miner pollutes. This is especially the case for prospecting which usually takes place in poorly accessible areas. 7.2.2.5 Sufficient resources for implementation of the environmental regime

Only 3 (23%) of the countries (2(e) in Tables 7.3 and 7.4), namely Botswana, Ghana and South Africa, have explicitly provided for sufficient resources in their social and environmental regimes to execute them.
For example, in Botswana the overall objective of the Department of Environment is to “foster the pursuit of sustainable development by coordinating the protection of the country’s environment and the conservation of its natural resources”. The Government of Botswana states that the Department must be “……. provided with the necessary resources and further ensuring that all resources allocated to the Department are effectively and optimally utilized” [www.saiea.com/dbsa_book/Botswana.pdf].

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A social and environmental regime can hardly serve any purpose if it is inadequately funded. The relative level of funding is a strong indicator of the seriousness a country attaches to the regime. 7.2.2.6 Capacity to negotiate for benefits and environmental protection

In many cases, an investor is in a stronger position than the host community/country when negotiating for a development agreement. This is because an investor has money, more technical and negotiation knowledge and experience (“tricks”), and more powerful networks in terms of finance capital, commodity market and national/international decision makers. It is therefore necessary to develop capacity at all levels in a mineral host community/country for such community/country to adequately bargain for its share of the mine development. In the 13 regimes analyzed (2(f) in Tables 7.3 and 7.4), none (0%) of the countries have provided for this very important aspect in minerals industry. This could be one contribution to poor terms of agreement between mineral hosts and mine investors, leading to NET losses out of the developments. 7.2.2.7 An environmentally well informed and adequately vigilant public

The analysis (2(g) in Tables 7.3 and 7.4) indicates that only 4 (31%) of the sample regimes have provided for developing and/or implementing programs for social and environmental education for the public.
For example, in the Ghanaian EPA Act 1994, Part I, the functions of the Environmental Protection Agency include: “(l) to promote studies, research, surveys and analyses for the improvement and protection of the environment and the maintenance of sound ecological systems in Ghana; to initiate and pursue formal and non-formal education programmes for the creation of public awareness of the environment and its importance to the economic and social life of the country; to develop a comprehensive database on the environment and environmental protection for the information of the public; to conduct seminars and training programmes and gather and publish reports and information relating to the environment;”

(m)

(o) (p)

Programs of this nature give birth to public pressure groups such as the Third World Network – Africa (www.twnafrica.org) of Ghana and Citizens for Better Environment of Zambia (www.cbezambia.org/networking.html). These groups play a role of an independent “eye” over how natural resources are being managed in a country. A study carried out by the Southern African Institute for Environmental Assessment (SAIEA) revealed that key environmental policy areas requiring support include environmental information and education [SAIEA, 2003]. Absence of a well informed and adequately vigilant
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public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored. Still under this element, 8 (62%) of the regimes provide for public hearing, as part of the environmental impact assessment (EIA), disclosure, or similar process. This gives the public to air views, but the usefulness of the views are limited by the level of awareness and the extent to which information has been disclosed. 7.2.2.8 Adequate public participation in environmental management

Here (2(h) in Tables 7.3 and 7.4), only South Africa explicitly provides for active public participation in environmental management. The South African National Environmental Management Act, 1998 (ACT NO 107 OF 1998, Section 4.3.1 (ii) states that an environmental management plan must:
“Enhance the participation of stakeholders, to play an active role in minerals, metals and mining development throughout the life cycles of mining operations, in accordance with national regulations and taking into account significant transboundary impacts”.

And, the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), Section 52(g) states that an environmental management plan must contain:
“a record of the public participation undertaken and the results thereof”.

Active public participation not only builds capacity in the local community to management environmental projects, but also prepares the community for future environmental problems that they may be encountered beyond a mine project. 7.2.2.9 Socially responsible mine project

A social and environmental regime for mining industry should provide for ensuring that developers are socially and economically responsible to host communities. Mine projects ought to, among others, • • • • • • offer jobs to national, train nationals, give priority to nationals and local products and services with regard to involvement in mine project business, get consent of holders of property who may be disturbed by mine projects; give compensation for displacement or damage to property owners; and ameliorate any post closure impacts on the host communities.

Analysis (2(i) in Tables 7.3 and 7.4) of the 13 samples regimes indicate that 11 (85%) provide for jobs to nationals, 12 (92%) provide for training of nationals, 8 (62%) provide for prioritizing nationals and national products and services in mine projects, 8 (62%) provide for consent before
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proceeding with mine project; and all (100%) provide for compensation to property owners in case of displacement/damage by mine developers. 7.2.2.10 Quantified expectations known, traceable and accessible by all players

A mine developer will quantifiably project the investment picture and display it to the share holders. This investment picture will also indicate the likely layout of liabilities and how to manage them, but must still remain profitable. If a positive picture does not emerge, a mine development will not take place. Similarly, a mineral host community/country should project this kind of picture. The picture should not only indicate the anticipated NET gain, but should also ensure that there are no liabilities at the end of mine project which might wipe out or even exceed any financial gains made. Both the anticipated NET gains and the environmental outlook must become a reference, and must be publicly displayed, traceable and accessible at any time by the host country/community. If a NET positive picture does not emerge, the host community/country must reject the investment. Although it does not contain some of the information being recommended here, Figure 7.1 gives an example of Kinross publicized benefits to the local community in Alaska where it is operating.

Figure 7.2: An example of publicized benefits to the local community59

A study carried out by the Southern African Institute for Environmental Assessment (SAIEA) revealed that among the key environmental policy areas requiring support are the economics of sustainable development [SAIEA, 2003]. For this, the priority areas envisaged were to carry out economic, equity and environmental assessments. In meeting the requirements of this component, SADC ELMS prepared a project proposal entitled, “Capacity Building for EIA in the Southern African Development Community”. It was expected to be implemented between 1995 and 1999, but was not due to lack of funding.
59

http://dnr.alaska.gov/mlw/mining/largemine/fortknox/pdf/fk2009ppt.pdf

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To promote transparency, good governance and public access to information in mining industry, Article 13 of the Draft ECOWAS Directive on the Harmonization of Guiding Principles and Policies in the Mining Sector States that:
“Records, documents and information furnished or attained ……… which relate to a mining right granted should be considered public and shared with the public. ECOWAS member States that do not have laws on the free flow of information are encouraged to develop them to promote public and media access to information regarding mining”.

Based on the analysis (2(j) in Tables 7.3 and 7.4) of the sample regimes, NONE (0%) provides for quantified expectations known, traceable and accessible by all players. 7.2.3 7.2.3.1 Dynamically tracking the state of intended results during the mine project Quantified NET POSITIVE benefits.

Among a number of avenues governments use to collect revenue include taxes, royalties and resource rents. The analysis (3(a) in Tables 7.3 and 7.4) shows that all (100%) of the regimes in the thirteen sample countries provide for various combinations of these forms of revenue collection. However, since none of the regimes has a reference balance sheet such as the one described in Section 7.2.2.10 above, it cannot be demonstrated whether a NET gain from a mine development has been achieved at any one time. Just like an investor would terminate a business operation if the current balance sheet indicates losses with no hope of it getting better, a mineral host community/country should be able to demand a closure of business if the balance sheet starts becoming irreversibly unfavorable. But this is only possible if a prior and tractable projection has been established from the start. Lack of this tool makes it difficult for a mineral host community/country to assess their ability to cope with possible future social and environmental liabilities. This is actually the case in a number of countries, such as South Africa [Department of Environment and Tourism, 2008] and Zambia [Makumba, 2007] where they have had to take on very high and unforeseen costs to deal with liabilities long after mine developers have left. 7.2.3.2 ZERO (environmental and social) liabilities

Liabilities of a mine project must be dynamically assessed against projections. The state of liability must be periodically assessed, and not left to the end of the project. If the assessment shows that the project is exhibiting signs of liabilities towards an unfavorable and irreversible state, the project must be terminated. Another important precautionary tool here is for a mine developer to begin to reserve a rehabilitation fund from the start of operations. This fund must be adjusted to match the changing state of liabilities during a mine life. In this way, the host community/country will avoid incurring costs which should have been borne by the developer.
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From the analysis (3(b) in Tables 7.3 and 7.4) of the thirteen sample regimes, only 6 (46%) of the regimes provide for need for periodic environmental audits, only 8 (62%) provide for a rehabilitation fund, 11 (85%) provide for need for a mine closure plan, and only South Africa provides for need to annually carryout environmental audits and making appropriate adjustments to the environmental fund. The Mineral and Petroleum Resources Development Act 28, 2002, Sec 41(3) states:
“The holder of a prospecting right, mining right or mining permit must annually assess his or her environmental liability and increase his or her financial provision ……”.

7.2.4

General observation

Figure 7.3 shows that out of the 25 identified elements in a complete environmental regime being suggested, five elements including need to:
• • • •

project NET GAIN (balance sheet) as an objective (1b); build capacity in communities for them to competently handle negotiations (2e); provide for post mine closure management of social impacts (2i-6); publicize quantified expected NET GAIN benefits before start of project (2j); and dynamically display the status of the balance sheet to all players (3a-2)

are absent in the regimes, or could not be detected by this author in the regimes.

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Figure 7.3: Depth (in %) to which the thirteen social and environmental sample regimes have addressed the key success elements of the regimes in mining industry in Africa.

If all the above elements were incorporated and implemented, coupled with zero tolerance for corruption, the bridge will have been completed for a strong and successful social and environmental regime for mining industry in Africa, and it is this author’s belief that the continent would substantially and sustainably benefit from the minerals industry.

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8

“MAKING GOOD OUT OF BAD” ENVIRONMENTAL MANAGEMENT IN MINING INDUSTRY

The environmental situations in mining industry range from abandoned (orphaned) to active mines. In principle, active mines are catered for through obligations imposed by environmental regimes, of course keeping in mind the various regime weaknesses by design and implementation. On the other hand, abandoned mines, which are mines for which the owner cannot be found or is financially unable or unwilling to carry out site rehabilitation, require innovative regime approaches. Some of these mines pose environmental, health, safety and economic risks to communities, the mining industry and governments where they are found [NOAMI undated]. Nevertheless, a number of such mines offer immense opportunities for involving affected communities to manage them in less complicated arrangements than those often associated with development agreements between the host country/community and mine developers. Environmental management for both abandoned and active mines have socioeconomic linkages, as illustrated in Figure 8.1. The linkages can be variably upward, downward and/or lateral, depending on the situation and the way participation is structured. Some of these linkages will be elaborated below.

Figure 8.1 Socio-economic linkages in environmental management in mining industry.

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8.1

Reprocessing of Old Mine Dumps

The three main reasons for reprocessing old mine dumps are mineral extraction, safety enhancement and environmental protection [Vanicek and Vanicek, 2008]. 8.1.1 Mineral extraction

Numerous old dumps in various countries contain high metal grades. The high grades are largely due to inefficient technologies with which mining and mineral processing in the old times were done. The recent surge in metal demand also meant that low grade dumps became of interest, as they could be economically reprocessed due to the high metal prices at the time. Examples of countries that are reprocessing of old dumps include Congo D.R (Yager, 2007), Ghana [Coakley, 2003], South Africa [EMJ, 2008], Zambia [Mobbs, 2008]. While the main motive is to extract minerals, the mine dump operators have to abide by conditions set-out by environmental regimes in respective countries, when disposing of waste from the reprocessed dumps. For those dumps that would have required attention from environmental and safety point of view, this becomes a case of a “win-win” situation, without which the dumps would have been complete liabilities requiring governments to look for extra funding to manage them. 8.1.2 Safety enhancement

A number of old tailings dams may need reprocessing to prevent failures, breaching and flooding, as consequences of flow failures or overtopping. The potential risk of failure of old dumps; especially that in form of tailings dams is very high. Many of these dams are situated in highly built up areas (e.g. gold mining dumps in Johannesburg, South Africa) or in important river basins (e.g. copper mining dumps in the Kafue River basin, Copperbelt of Zambia). The already discussed tailings dam burst60 at the Tarkwa gold mine in the Wassa West District on October 16, 2001, is one such example. For dumps in orphaned mines with no possibility to economically reprocess them, funds for rehabilitation have to be raised by governments. Here lie opportunities for engaging local communities with the help of local and/or foreign expertise to do the rehabilitation work. In planning for the remediation of abandoned and orphaned mines, members of local communities should have equal opportunity to contribute to decisions and processes that will affect them [ICME, 1999]. According to experiences in Canada and the United States, these processes should be as open and transparent as possible, and the definition of “affected community” should be a product of citizen self-analysis where opportunity exists to contribute to decision-making processes [NOAMI undated].

60

www.earthworksaction.org/wassa.cfm

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8.1.3

Environmental protection

The way a number of old dumps were constructed does not meet the current environmental standards. For example, gold mining in South Africa resulted in vast volumes of waste material, mainly in the form of tailings material. Poor management of most of the tailings dams resulted in the release of acid mine drainage that in some cases caused soil degradation and water contamination underneath and around these sites [Rosner, 1999]. In another example, a report by the South African Nuclear Energy Corporation revealed that tests on asparagus, oats and onions produced in the Gerhard Minne wetlands showed that the level of radioactive substances was three times higher than the safe permissible level for human consumption. Pointing out that intensive gold mining takes place in the area - and that uranium as a by-product is found in mine dumps there - large tracts of land in the area of the Wonderfonteinspruit were 150 times more radioactive than the permitted level61. Reprocessing may therefore be done to eliminate sources of acid generation, ground water contamination, or aerial pollution [Vanicek and Vanicek, 2008]. Like in the above example (Section 8.1.2), local communities with the help of local and/or foreign expertise can be used to carry out the rehabilitation work. Experience with abandoned and orphaned mines in the United States has shown that public participation and community involvement can provide the essential knowledge, information and insight to enhance the efficiency of administrative decision-making, contribute to conflict resolution and support the implementation of actions and decisions [NOAMI undated]. Such capacity inevitably leads to more sound risk management and trust between parties, as communities can be a vehicle for identifying health concerns/indicators and key issues of priority to which decision-makers should give attention. 8.2 8.2.1 Landscaping of Mine Dumps Mine dump construction

Construction of mine dumps, following professional design, involves material (rock, tailings or slug) movement and profiling, construction of skates/berms as well as drainages. Communities can be appropriately involved, especially in less complicated activities such as drainage construction. 8.2.2 Revegetation

Some areas where the local community may be contracted to provide services include seed collection, propagation of seedlings and management of a nursery, revegetation works, rehabilitation monitoring, weed management and fire management. Such practices are common, for example in Australia62, Canada and United States [NOAMI undated]. In South Africa, the Johannesburg community has partnered with large mining houses to green mine dumps (Photographs 8.1 and 8.2). Johannesburg’s distinctive mine dumps are the visible legacy of the city’s origins as a mining town. The project is considered to be a way to stabilize
61
62

www.wise-uranium.org/udec.html#ZA www.nt.gov.au/nreta/environment/assessment/register/matildaminerals/pdf/s21.pdf

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the soil and prevent air pollution from the fine dust from the dumps. It is thought that besides being a long term investment in the health of Johannesburg’s residents, it would add new notches to Johannesburg’s green belts63.

Photograph 8.1: A mine dump in Johannesburg [www.joburg.org.za].

In Ghana, mine closure has brought shocks to communities in mine areas and beyond. Economic tree planting programs have therefore commenced as one way to reduce shocks, as explained in Box 8.1 (Thorpe et. al., 2008]. Box 8.1 Revegetating mine dumps with economic plants.
We are committed to extending the benefits of our mining operations in Western Ghana to our stakeholder communities and to making that benefit extend beyond the life of the mine. Through community consultation, we are able to determine the post‐closure land use that will best suit our stakeholder communities and then develop rehabilitation plans aimed at meeting those needs. As such, we are currently developing Jatropha on waste dumps at our Wassa mine and an oil palm plantation on our closed tailings disposal facility at our Bogoso / Prestea operation. The shock to the local economy of mine closure is extensive. However, to address this eventual reduction in the local economy, we have established Golden Star Oil Palm Plantations Limited. This innovative, community‐based oil palm plantation development company aims to reduce poverty in our stakeholder communities and provide beneficial economic development opportunities that will endure beyond the life of our operations (Thorpe

et. al., 2008].

63

www.joburg.org.za

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Apart from trees, mine dumps also require grass, such as Vetiver grass which is a member of the same part of the grass family as maize, sorghum, sugar cane and lemongrass. It is an ancient plant that has grown around the world to great benefit for centuries64. For both tree and grass planting activities, communities can either grow plants/trees and sell for greening the mine areas, or they can be contracted to carryout both the raising of nurseries and planting them. 8.3 8.3.1 Consultancy and Contract Work Services Studies

Research and compilation of information on mine areas is necessary to enable sound decisionmaking, cost-efficient planning and sustainable rehabilitation. Such information is also necessary to ensure transparency of decision-making and access to information by governments, civil society, industry and other communities of interest [NOAMI undated]. Engagement of local communities in the studies helps to build capacity and to ready the community to deal with environmental issues during and beyond mine life. Based on various national and international publications and conferences (e.g., See the First International Conference on Environment Research, Technology and Policy, ERTEP 2007, Accra, Ghana.1619 July), a number of African countries, notably South Africa, Ghana, Nigeria, Tanzania, Zambia and Zimbabwe are involving nationals in social and environmental studies in mine areas. 8.3.2 Mine dump management

Beyond mine dump construction, the dump needs to be managed until it is completely stable. Communities can be engaged to monitor and manage the dumps for activities including water quality studies, flora and fauna establishment and erosion control. 8.3.3 Acid management in mine areas

Current approaches to reclaiming acid generating tailings include permanent water cover or encapsulation with various synthetic liners and/or clay. Although these methods can be effective, some ongoing maintenance will be required in perpetuity to ensure that water levels are adequately maintained or that the integrity of any capping system is protected. The successful creation of wetlands in tailings basins in Ontario, Canada, offers the possibility of creating a stable environment for the tailings with minimal maintenance [Eger et al., 2007]. Communities can be involved in pH monitoring and management as well as construction of the wetlands in dump basins. 8.4 Environmental Education

64

www.theherbcottage.com/vetiver_sales1.html

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The analysis (See Chapter 8) of thirteen sample social and environmental regimes for mining industry in Africa indicates that countries such as Botswana, Ghana, South Africa and Zambia promote environmental studies, research, surveys and analyses. They also promote formal and non-formal education programmes for the creation of public awareness of the environment, as well as seminars and skills training programmes. There is a significant involvement by educational institutions, consultants and NGOs in Africa in the development and delivery of environmental courses at various levels. Courses with greater impact are those in form of case studies developed based on actual situations directly facing communities in mining areas65. These capacity building initiatives, apart from their importance in sustainable development, are also vital as income generation activities. 8.5 Greening Mining Towns

Mining towns in Africa often experience rapid forest degradation and/or deforestation, due to unsustainable urbanization. The mushrooming townships that emerge due to this urbanization are often not provided with electricity network. As a result wood and wood charcoal become the main source of energy. As part of corporate social responsibility, a number of mining companies are supporting reforestation programs, such as illustrated in Box 8.2 - an experience in Tanzania. Box 8.2: Mine support to community for reforestation of mine area in Tanzania GOLDEN PRIDE MINE - TANZANIA
Environmental performance at Golden Pride continues to improve. Highlights include the approval of the 2007 Environmental Management Plan, a milestone reached of over 500,000 seedlings planted on the Golden Pride lease since the project commenced in 1998, development of Environmental Geographic Information System to improve land management and monitoring, waste rock dump water management improvements, staging of the Resolute Group Environmental Conference, and continued development of environmental personnel. Community environmental support and development continued with additional training of local community members in plant nursery and reforestation management and donation of 21,000 Golden Pride seedlings to local reforestation programmes. Since commencement of operations in excess of 350,000 seedlings have been donated to the community [www.resolute-ltd.com.au/cr-environment.html].

In Johannesburg, apart from greening mine dumps there is also greening of the city which has lost trees over years (Photograph 8.2). The choice of trees to plant depends on various conditions and purpose, but can include indigenous, ornamental and economic trees such as palm plants and Jatropha.

65

http://www.hoffmann-reif.com/e3091/e16/e1029/e3990/proj_files3999/Santren_eLearning.pdf

105

Photograph 8.2: Tree planting in Johannesburg [www.joburg.org.za].

8.6

Construction Material from Mine Dumps

Many mine dumps materials have limited potential for use as aggregates because of their fineness, high impurity content, trace metal leachability, propensity for acid generation, and/or remote location (i.e., away from aggregate markets). However, when the location and material property characteristics are favorable, some sources of waste rock or coarse mill tailings may be suitable for use as granular base/sub-base, railroad ballast, Portland cement concrete aggregate, asphalt aggregate, flowable fill aggregate or fill, and engineered fill or embankment. In the USA, large quantities of these materials have historically been used, at least in 34 different states, as highway construction materials whenever it has been economical and appropriate to do so [RMRC, 2007]. A variety of products can be developed from mine waste as long as they meet the standards specified for each application [Chidavaenzi 2004; Lemeshev et. al. 2005]. Mill tailings consisting of quartz, feldspars, carbonates, oxides, ferro-magnesium minerals, magnetite, and pyrite have been used in the manufacture of calcium silicate bricks, and have also been used as a source of pozzolanic material [RMRC, 2007]. The opportunities for communities to earn income through use of mine waste at the same time as they clean up mine environment are enormous.

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8.7

Mine Area as Tourist Attraction and Recreation Centers

Many mining areas, both closed and active, are very suitable for tourist attraction and examples (Photograph) abound, especially in the USA66, Canada, Europe67,68, Australia69, New Zealand70, but also in South Africa71. The variety of tourist attraction activities tend to be more in closed mine areas, because they are free from interfering with production, and the safety issues are less cumbersome. Children and adults alike learn about minerals mining and the life of miners. Visitors can even take home samples of ore. Various attractions including mine drilling, search for minerals, recreation of old mineral mining towns complete with actors in costumes from the pertaining era and period accommodation can be put in place to improve or widen patronage. The areas can also be populated with animal parks and hotels with associated mineral-based souvenirs. Following the closure of Martha mine in New Zealand in late 2006, a Waihi Community Consultative Group was formed to brainstorm on a wide range of issues and options relating to the future of the town and district72. The ‘Blue Skies’ initiative, “what could we achieve together as a community following mine closure?”, came out of those discussions, with example options as shown in Box 8.3.

Australia
www.marthamine.co.nz/09_12_03_UDM.html.

Gold Reef City fun park in Johannesburg.

USA
www.roadsideamerica.com/story/11496

http://members.virtualtourist.com/m/p/m/3393 4a/ Photographs 8.3: Examples of tourist attractions at closed mines

Examples in Box 8.3 by the Martha mine community show that there are immense socioeconomic opportunities that can be derived from mining areas, closed or active. The need to
66

http://www.roadsideamerica.com/story/11496
www.penzance.world-guides.com/penzance_attractions.html. www.raa.se/cms/en/places_to_visit/world_heritage_sites/

67
68

69
70

www.kingsgate.com.au/links/gold-mine-tourist-attractions.htm. www.marthamine.co.nz/09_12_03_UDM.html 71 http://members.virtualtourist.com/m/p/m/33934a/ 72 www.marthamine.co.nz/09_12_03_UDM.html.

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achieve these benefits would be one driving force to engage communities in the areas to clean up the environment so as to pave way for these socio-economic activities. Box 8.3: The ‘Blue Skies’ Initiative following the closure of Martha mine in New Zealand
www.marthamine.co.nz/09_12_03_UDM.html If funding and other considerations were not an issue, what could we achieve together as a community? The list is presented here. The challenge now is to work together to investigate likely options, seek sources of funding, produce business proposals and talk with each other to ensure the very best possible future for Waihi.
Heritage • Link to Union Hill heritage features • Linking of all features within Waihi Gold’s licence area • Links to dams, water races, batteries, tram lines, and many others • Links to wider heritage features • Set up a Heritage Trust • Leaving things from current mining as heritage features for tomorrow. Environmental • Make areas available for rare/endangered birds/plants possibly with predator fences (mainland islands) • Kauri banks and other important local species • Recreating what vegetation used to be like in Waihi • Bird corridor using other areas e.g. Union Hill, Black Hill • Remove goats from Union Hill to allow native species to regenerate • Wetlands, possibly incorporating a water race • Community gardens – organic, heritage, plant deciduous trees for shading buildings, fruit & nut trees for community • Tricycle and bicycle ways (cycle friendly town) possible extension to Karangahake and beach. Separate from walking tracks. • Maori medicinal plants • Education – many opportunities, primary, secondary and tertiary, research studies, mining impacts • Horse/lama treks • Establish relations with group to “add value” e.g. National Geographic Tourism • Interactive Gold Mining Discovery Centre incorporating expanded information centre • Themed hot pool complex • Ore cart transportation system linking Martha Mine to Union Hill, Mill and tailings storage facilities areas • Development of earth study/geology/history campus • Sports academy focusing on water sports • Jewellery School • International Standard Conference Centre • Themed cinema (possibly incorporate in PYE building) • Gold Trail (using Iron Trail, Minnesota model) www.irontrail.org • Underground public toilets at Info Centre with car and bus park • International mountain bike course designed by world champ (similar to Bob Charles Golf Course idea) • Tent & breakfast camp idea • Historic village • Have a paid Golden Legacy Development Manager to follow through on CCC ideas for future developments. Possibly form a “future Waihi” trust with a team of volunteer trust members. Social Impact • Restore residential confidence • Restore public access to Pumphouse • Extend Vintage Railway into town possibly following old Rake Line, including aspects of interest at Union Hill, Martha, Favona with a central business stopover. • Any extension of train into town would complement any “historical street” scenarios • Provide more “after 5” activities e.g. movie theatre, hot pool • Power generation (possibly from lake water flow or windmills at the tailings storage facilities) • Must consider how Golden Legacy might impact on residents • Consider ratepayers and the return for them. Social Development • Acknowledgement & clarity of process re social impact of mining including cultural impact on Maori • Public transport • Alternative education opportunities (’Aroha’ Learning Centre) • Full-time Hauraki Regional Youth Worker • Apprenticeship trade opportunities • Creative pursuits opportunities e.g. music, performing arts, film and media studies, art, jewellery. Education • Outdoor education e.g. kayaking, sailing, water related activities, abseiling/rock climbing, guided mine site/Union Hill tours for schools, walkways of varying lengths and purposes, some wheelchair friendly, interpretive signs and displays, amenities for school groups e.g. shelter area, BBQ area, Outward Bound style Education Centre • Build links with primary, secondary & tertiary institutions for field trips e.g. geology, biology & link to existing providers e.g. museum, train to provide total packages • Centre for native plant study • 4 wheel drive training school • Historical bush camp experience • ‘Ranges to Sea’ walkway • Maori carving school • Links to community marae • Multisport/triathlon/mountain bike course. Business • Utilise existing labour force once mining complete • Utilise existing mine facilities once mine closes • Model boats • Industry to support other Golden Legacy initiatives • Working mine display/theme park idea with rides etc • Use labour for walkway development • Multicultural Centre • Using old mine timber • Paid mine tours

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9

CORPORATE SOCIAL RESPONSIBILITY

Section 8 has extensively illustrated areas of community empowerment in both active and abandoned mines. The avenues through which communities can be empowered include government legislation, corporate social responsibility and community effort itself, as for example in the case of community self-drive by Martha Mine in New Zealand. 9.1 General

Mining industry is increasingly becoming under public pressure “to show good” to communities in which they operate, and the term Corporate Social Responsibility (CSR) is gaining prominence. Mineral host governments, regional bodies and international institutions are all adding weight on the need for CSR in mining industry. In the absence of a predetermined Net Positive Balance Sheet approach discussed in Chapters 3 and 7, increasing social, economic and environmental corporate responsibilities by mine developers in mineral host communities at present takes a tripartite approach, as shown in Figure 9.1.

Figure 9.1: The current tripartite approach to increasing social, economic and environmental corporate responsibilities by mine developers

GOVERNMENT REGULATION Through regulation, governments can set preconditions to be fulfilled by developers form them to obtain licenses. But as was observed in the analysis of the thirteen mining regimes, there are glaring inadequacies in most regimes so that the delivery from this angle is very minimal. Even where provisions in the regimes may be reasonably significant, implementation in many cases is undermined and only becomes mostly a lip service [ECA, 2004].
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CORPORATE SELF REGULATION Corporate self-regulation requires that mine developers integrate their “self regulation” into a business model to meet their social and environmental obligations. In this case, CSR policy would function as a built-in, self-regulating mechanism whereby mine developers would monitor and ensure their adherence to law, ethical standards, and international norms. The developers would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and the general public sphere73,74. Furthermore, the developers would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet, Profit. PUBLIC PRESSURE A well informed public will exert pressure on both mine developers and government when irresponsibility is observed on the part of both the governments and mine operators. Due to public pressure, the Zambian Government was forced to introduce a windfall tax and a variable profit tax that was designed to work in periods of both high and low prices and for both low and high cost mining projects75. 9.2 Public Participation in Mining Activities

Among the several measures through which mining projects will benefit host communities is improving public participation. Public participation and sustainable development have become central and interconnected terms in present day development discourse [ECA, 2004; World Bank, 2004]. The ECA report identifies the following as avenues of participation which may require consideration: Participation in decision-making • Public participation in the procedures of impact assessments to contribute to management of natural resources; • Involvement screening environmental impact assessment activities • Institutional arrangements for project approvals • Procedures for participation in project impact assessment • Rights of access to information • Participation in monitoring and enforcement • Participation in policy formulation

73 74 75

www.icmm.com
http://en.wikipedia.org/wiki/Corporate_social_responsibility. http://www.mibs.gov.zm/index.php?option=com_content&task=view&id=285&Itemid=142

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Allocation of benefits from mining • Forms of benefit • Local community allocation from national revenue • Managing revenue • Infrastructure provisions • Tri-sector partnerships • Equity participation • Economic empowerment of the previously disadvantaged communities Another area of participation recommended by the ECA report is through integration of mining into national economies in order to improve the retention of benefits from mining industry. At present, almost all important mine investment aspects including capital, equipment and key personnel with huge emoluments are foreign. Mining policies which capture these forms of participation while also localizing key investment factors would minimize the huge drain on money earned from the industry, which would otherwise benefit the African continent [ECA, 2004]. 9.3 Some Best Practices of Corporate Social Responsibility

The best practices described here are with respect to social and environmental corporate responsibilities. Although some of the CSRs have been discussed in Chapter 8, such as the support of mine developers to communities in tree planting, special mention will be done here for two selected ones, namely Material Stewardship and APELL, which are implemented by mining industry. These are especially discussed because Material Stewardship addresses CSR in the life cycle of minerals while APELL addresses the disaster aspect of the mining industry. These two are cardinal in CSR concerns. 9.3.1 Material stewardship

9.3.1.1 Defining Material Stewardship Material stewardship is the act of various stakeholders along the mineral value chain undertaking activities that enhance the durability and recyclability of minerals and metals, increase the efficiency of their production and use, and minimize associated risks in order to maximize the value of the minerals. For investing companies, this entails responsible product design, use, reuse, recycling and disposal of their products. The success of material stewardship hinges upon input and co-operation of value chain stakeholders including mining companies, suppliers to mining operations, the users of minerals, product designers and engineers, regulators, communities, workers, policy makers, the recycling industry and non-governmental organizations all have roles to play [ICMM, 2006]. Materials stewardship encompasses both process and product stewardship. Process stewardship refers to activities undertaken by a company to ensure that its processes to explore, extract and refine minerals and metals are done in a way that minimize environmental impacts and health
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and safety risks. Product stewardship addresses the minerals and metals utilized in product systems by others, and refers to activities that influence or guide their application in order to minimize environmental, health and safety risks and enable recovery, reuse or recycling, as appropriate. The implementation of materials stewardship requires: • Understanding the social, environmental and economic impacts of materials as they move through the life cycle from mining to use and through to the end of their life. • Developing relationships with different stakeholders to assist and influence beneficial use of materials as well as the minimization or elimination of risks to human health and the environment. 9.3.1.2 Materials stewardship and the minerals and metals life cycle Figure 9.2 illustrates the scope and key themes around which materials stewardship for a mineral and metal life cycle activities can be organized, highlighting key operations and activities from production through end-of-life and recycling [ICMM, 2006]. The mining industry in Africa is primarily in the early stages of this life cycle, namely exploration, mining, processing, smelting and refining. These stages are areas where the primary stewardship activities are focused on efficiency, productivity of resources and minimizing environmental, health and safety risks. They are areas which are relatively manageable compared to widespread use such fabrication, where stewardship responsibilities widen. This manageable part of stewardship is referred to as process stewardship. The characteristics of specific minerals and metals can help determine where materials stewardship activities need to be undertaken. For example, a mineral or metal with hazardous properties may require more co-ordinated and structured materials stewardship activities than a more benign substance.

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Figure 9.2: Themes and activities in materials stewardship [ICMM, 2006].

The stewardship beyond refining demands supporting appropriate applications and facilitating efforts towards recovery and re-use as appropriate, and is referred to as product stewardship. This involves many more actors in the value chain. 9.3.1.3 Implementation of materials stewardship in Africa To the knowledge of this author, there are two associations in Africa, namely Chamber of Mines of South Africa and Mining Industries Associations of Southern Africa, that are members of the International Council on Mining and Metals (ICMM). It is possible, though, that companies operation in other regions other than Southern Africa are members of ICMM through commodity associations such as International Aluminium Institute, International Copper Association, World Coal Institute, International Zinc Association and Nickel Institute [Davies, 2007]. To illustrate the importance of material stewardship, two case examples cited by Gold Fields Limited of South Africa are presented in Boxes 9.1 and 9.2 in South Africa and Ghana, respectively.

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Box 9.1: SOUTH AFRICA - Material stewardship and supply chain management
Procurement
Our Project Beyond in South Africa set out in financial year 2005 to achieve cumulative contracted benefits of R300 million. This project focuses on three pillars which are: • Quality and safe underground mining; • New technology and innovation; and • Power, people and surface optimisation. To date, this project has delivered contracted total cost benefits for SA operations in excess of the target (around R20 million beyond the target). During the reporting period, another R31 million in contracted benefits were delivered, excluding cost avoidance estimated around R34 million over this period. Although real record high inflation over the last year outstripped the contracted benefits delivery, it does imply a reduced basket inflation impact compared to doing nothing. Likewise, the International operations, through integrated supply chain initiatives, added approximately US$36 million in contracted benefits since 2005, with around US$8 million in benefit added over this financial year. For the South African operations, the in-house shared workshop operations managed to turn the facility from a loss making model during the first part of the financial year to a cost savings model over the second part of the year, over and above the critical enabling support that this capability provides to the South African operations.

Local procurement and empowerment
Our policy objective for South Africa is to identify and approve Historically Disadvantaged South African (HDSA) suppliers, increase the level of spend to previously disadvantaged individuals and to increase business opportunities and set targets for HDSA procurement spend. When applying for registration on our database we evaluate the following criteria: • Ownership; • Black empowerment programme; and • Size of enterprise relating to turnover and staff. Should an HDSA vendor not qualify as a result of safety, quality and service, Gold Fields will at, its discretion, support and develop the supplier to be able to meet our criteria as set out in the Gold Fields Policies and Procedures. As a matter of course, we monitor and verify all information received to ensure accuracy by making use of external auditing companies and preference is given to HDSA suppliers where Gold Fields criteria are achievable. The policy extends to all tenders regarding any supply contract entered into by any Gold Fields Limited affiliate. http://onlinewebstudio.co.za/online_reports/gold_fields_ar08/sus_chain_management.php

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Box 9.2: GHANA - Material stewardship and supply chain management GHANA
In Ghana, our major business partners continue to support our SEED programme’s educational projects. A Gold Fields strategic supply partner, Sandvik, assisted in financing a new junior high school classroom building at Awudua in Tarkwa. We are also engaging in strategic partnerships with local suppliers. Gold Fields Ghana and Tema Steel (a local steel mill) have a mutually beneficial relationship that has seen Tema Steel grow in confidence to a point where their products meet quality criteria and there is a growing market evident not only in Ghana but in the West African region. Tema Steel has embarked on an expansion and modernisation of their production capacity which is expected to produce 20,000 tons of grinding media per annum by the end of next year. We have also engaged E&P, a local engineering company, in developing the Phase 5 Heap Leach Expansion Project. It is expected that resources generated from this venture will be re-invested into the local economy. Gold Fields Ghana continues to develop the Electrofax Engineering Company, another wholly Ghanaian owned company, by engaging them in a partnership for all electrical works. This company is presently providing a consultancy service and has been encouraged to set up a motor rewinding facility in Tarkwa, the first of its kind by a private company in the area. A local joint venture investment with OTR tyres at Tarkwa through a newly built tyre retread facility was also commissioned during the third quarter of financial year 2008. The first product was produced in February 2008. This business venture is not only critical to ensuring a reduction of the risk of short supply, but will also service the greater region and industry as part of a future hub for tyre retreading. This new manufacturing facility obviously also created employment opportunities for local people and an added economic contribution to the community. The Damang operation increased their local supplier spend from less than 10 per cent in 2003 to over 30 per cent to date. Certain material is provided free of charge to a local Chief and we have also agreed to establish a shop where minor consumables like cement blocks and other building materials can be bought. Damang are also buying soap, rags and timber from suppliers in the village and workers’ uniforms are sewn at the Damang Village.

http://onlinewebstudio.co.za/online_reports/gold_fields_ar08/sus_chain_management.php

However, African countries have realized that “some mining companies are departing from their previous approaches to development and community relations, variably characterized as “Strictly business”” [ECA and African Union, 2008]. Africa aims to assess successful companies according to a triple bottom line, namely financial success, contribution to social and economic development, and environmental stewardship. Therefore, successes such as the ones cited in Boxes 9.1 and 9.2 emphasize the point that mining companies applying materials stewardship have everything to gain and that their care about the environment will not only uplift their image, but their operations are also likely to be more sustainable. Urging small scale miners to implement material stewardship is a very difficult task, but the sector is probably best dealt with side by side with large scale operators, and also as part of the local community natural resources stewardship in a broader sense. Local management engenders local stewardship of natural resources, which, in the end results in a sustainable natural resource management [Shoko, 2002].

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9.3.2

Awareness and preparedness for emergencies at local level

Mining is one of the industries that have experienced disasters, as shown by examples in Table 9.1. When these accidents, for example tailings spills, occur they cause serious environmental and community impacts. Given the number of mining operations in Africa where communities are not technically, socially, environmentally and economically prepared, the consequences are immense. Some of the accidents shown in Table 9.1 resulted in fatalities, and also caused physical damage to property and farmland. Where chemicals have been released, such as the case of the tailings dam burst at the Tarkwa gold mine in the Wassa West District, Ghana, on October 16, 2001, fish and other species have been killed and human health and livelihoods threatened 76. Accidents have also had serious financial consequences for companies, and have also seriously damaged the image of the industry as a whole. Awareness and preparedness for emergencies at local level (APELL) helps to prepare mining industry prevent accidents and ensures that contingency planning, awareness and communication reduces their impact [UNEP, 2001]. The industry, as part of corporate social responsibility, should prepare society where it operates for such eventualities.

76

www.earthworksaction.org/wassa.cfm

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Table 9.1: Chronology of major tailings dam failures in Africa (since 1960) [http://www.wise-uranium.org/mdaf.html].

Date

Location

Parent company
Konkola Copper Mines Plc (KCM) (51% Vedanta Resources plc)

Ore type

Type of Incident
failure of tailings slurry pipeline from Nchanga tailings leaching plant to Muntimpa tailings dumps

Release

Impacts
Release of highly acidic tailings into Kafue river; high concentrations of copper, manganese, cobalt in river water; drinking water supply of downstream communities shut down Tailings traveled 4 km downstream, 17 people killed, extensive damage to residential township 1 person killed, extensive siltation to waterway and adjoining rough pasture 12 people killed in a mine shaft inundated by the tailings; tailings flow 45 km downstream

Nov. 6, 2006

Nchanga, Chingola, Zambia

copper

?

1994, Feb. 22

Harmony, Merriespruit, South Africa

Harmony Gold Mines

gold

Dam wall breach following heavy rain slurry overflow after continuous rain over several days

600,000 m3

1978, Arcturus, Jan. 31 Zimbabwe

Corsyn Consolidated Mines

gold

30,000 tonnes

1974, Nov. 11

Bafokeng, South Africa

?

platinum

embankment failure by 3 million concentrated m3 seepage and piping through cracks liquefaction of tailings, flowing into underground workings some 1 million tons

1970

Mufulira, Zambia

?

copper

89 miners killed

tonnes = metric tonnes

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10 ENHANCING THE POSITVE DELIVERY OF THE MINING SECTOR In relation to the definition discussed earlier in Chapter 3, and in the light of mineral resource flow pattern in Africa, Africa is currently the source of primary minerals materials whose value does not significantly benefit the continent. The lack of value-adding industry means that the continent is far from realizing full potential from mineral resources. At the same time, the environmental damage caused by the extraction and transportation of these minerals does not match the revenues realized. There is therefore need to approach the development of the industry holistically in order to enhance and positively transform the impact of the mining sector in Africa. 10.1 The Weak-Link Identification and Mitigation in Mining Industry To enhance the positive delivery impacts of the mining sector in Africa, one approach is to apply, among others, a series of tools including:


identifying leverage points (i.e. weak links) in the mining investment and socioenvironmental codes, as well as the mining value chain; where applicable, applying Logic Modeling to identify root causes of the weak links; and applying solutions / mitigation measures to improve the overall performance of the mining sector.

Application of these tools is illustrated in Figure 10.1. The above approach derives from the basis that any chain is only as strong as its weakest link. Some of these weak links were observed in the current socio-environmental regimes presented in Chapter 7. If we can tune up these weaknesses, whether infrastructural or managerial in nature, the system (mining sector) performance should improve to achieve desired developmental goals. This is particularly important now that Africa, in The Africa Mining Vision, has outlined the resource-based African industrialization, so that the suggestion put forward here by this author provides the “nuts and bolts” action for its implementation.

Figure 10.1 An approach to improving system performance

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Brazil, for example, has applied this approach to “maximize national content in the goods and services industry, within competitive and sustainable basis, in the implementation of oil and gas projects” [Sinkala and Mulenga, 2008]. Factors influencing ability to establish national content in products and services industry are shown in Figure 10.2, while strategic subjects affecting ability to maximize local content in products and services are shown in Figure 10.3.

Figure 10.2 Factors influencing ability to infuse national content in products and services industry [Sinkala and Mulenga, 2008].

Figure 10.3 Strategic subjects affecting ability to maximize local content in products and services [Sinkala and Mulenga, 2008].

Brazil considers national content in products and services as very crucial for creation of industry around industry, creation of jobs, and for stabilizing the economy. Improving national content in national industry also facilitates innovations in the industrial complex where local providers of products and services have to compete with foreign companies (Figure 10.4).

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Figure 10.4 Trade scenarios towards achieving a greater local content for various zones [Sinkala and Mulenga, 2008].

10.2 Mining Industry in Africa Amid Current World Economic Crisis “The world is presently experiencing a deepening economic crisis, with the slowdown in advanced economies now spreading to major emerging markets such as China, India, and Brazil”, warned Dominique Strauss-Kahn, IMF Managing Director77. Sub-Saharan Africa's prospects have deteriorated somewhat and the risks have increased, according to the October 2008 Regional Economic Outlook. Growth in the region is projected to dip to 6 percent in 2009. The fall is due mainly to the global food and fuel price shock, which has weighed particularly on growth in oil-importing countries, and to the global financial market turmoil, which has slowed global growth and demand for Africa's exports. There are significant risks to the outlook related to a potentially deeper and longer period of global financial turmoil and resulting slowdown in global activity, and substantial uncertainty concerning commodity prices. This turmoil has affected several African countries so that some mines have closed and people have lost jobs. This is particularly acute for copper mining and oil industry. However, IMF has said that even though the financial crisis had started in the United States, the recent strength of the dollar showed that people around the world still had confidence in the U.S. economy. As long as that confidence remained, the United States would be able to finance its large deficit. Even though the Chinese economy was on the rise, the United States would still remain formidable. Through globalization, both economies would remain dependent on the rest of the world. Africa should use this crisis to reorganize herself using, for instance, the Brazilian approach, not only to develop her capacity to manage the mining industry but also to seriously implement the
77

http://www.imf.org/external/pubs/ft/survey/so/2009/NEW012109A.htm

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Vision 2050 towards attaining a significant value addition. Henry Kissinger, the former US Secretary of State, has predicted a new world order in which Brazil, China, India and perhaps South Africa will become major players78. Africa has room to find her equitable position in the new order, but that is if Africa works to realistically prepare itself. It is said that “it is better to be prepared and not have an opportunity, than have an opportunity and you are not prepared”.

78

http://www.economist.com/theworldin/displaystory.cfm?story_id=12574180

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11 CONCLUSIONS Africa houses a vast array of minerals and, for some of these, the continent is a world leader. Minerals constitute the most valuable exports of Africa, and 24 (45%) of the 53 African countries rely on minerals as among the top three exports from their countries, thus earning these countries foreign exchange for various socio-economic activities. Of the 53 African countries, 41 (77%) have large scale mining operations while 51 (96%) house small scale mining operations. Mining industry provides revenues, jobs, school and health facilities, and stimulates development of vital socio-economic infrastructure such as electricity, roads, railways and telecommunication facilities. Whereas in the short term these positive aspects are highly valuable, it is unfortunately not presently quantifiably clear whether for many mining investments in Africa there is a Net Gain or Net Loss. Nevertheless, looking at infrastructure that comes out of the investments at both the source of minerals and the investor home countries, it can be concluded that Africa has experienced a Net Loss. In fact, the cost of environmental liabilities alone outstrips the little that Africa has collected as revenues from the industry, especially for defunct mine sites. In terms of mineral resource flow, Africa is a primary producer up to refinery stage in the minerals value chain. The implication of this is that Africa bears most of the wastes and pollution, estimated to be 3 times or more than their primary producer counterparts in EU, in the value chain. Pollution and environmental degradation is considerable in form of landuse and landuse change, large volumes of emissions which contribute to GHG, toxic substances which pollute soils and water resources, and many other environmental problems. The problem of pollution is relatively well monitored for large scale mining operations. Small scale mine operations however “do as they like”, partly due to the remoteness of their operations and partly due to a “double standard” enforcement of environmental laws, where these laws exist. Quantitative data on pollution levels due to mining industry is hard to access for most African countries. If there is, the information is not made public. It is also worrying that more information on Africa is to be found in information repositories outside of the continent, despite the digital information age. This is an indication that Africans do not know much about the state of health of their own environment, which makes it even more difficult for them to participate in corrective measures [UNEP, 2001]. Most of the social and environmental regimes for mining industry in Africa are very weak in their current form. In some cases, even those that are relatively comprehensive suffer from inadequate enforcement due to reasons including inadequate resources, corruption and complacency. There are many areas in the minerals value chain as well as those associated with environmental degradation which can be targeted for socio-economic inclusion. The latter would be “turning waste into gold”. A number of these have been illustrated in Chapter 8.
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The minerals sector offers immense opportunities for Africa to derive benefits from it. The benefits can be maximized if:  mining codes are enhanced to adequately address environmental, social and economic aspects with a view to achieve NET gains from mining projects;  economic evaluations are performed to determine whether a mine development project is a better option than working out other natural resources in the same environment;  promoting value addition within mining project host African countries;  prioritizing and enabling mining industry host communities to participate throughout the value chain;  enhancing the performance of upward, lateral and downward economic linkages of mine areas before and after closure; and  improving on the delivery of CSR designs and implementation. 12 RECOMMENDATIONS Based on the analysis of this study, it is recommended that various actions are taken to improve on the socio-economic and environmental performance of the mining industry in Africa. The following are some of the main ones: 12.1 Socio-Economic and Environmental Benefits

It is recommended that a “Balance Sheet” approach be adopted and made the cornerstone when accepting mine investments. The balance sheet should ensure that the mineral host knows in advance the economic, social and environmental NET GAINS to be derived from a project. Otherwise the project must not take place, as similarly the investor would not commence a project when there is not profit to be made. 12.2 Social and Environmental Regimes for Mining Industry

Work is required to deepen the current social and environmental regimes to include those respective aspects which are weakening delivery benefits in mining industry. These aspects have been outlined in Chapter 7 of this study. 12.3 Socio-economic and Environmental Linkages in Mining Industry

Capacity should be developed to capture opportunities of “turning waste into gold”. Some of what are considered environmental liabilities can be turned into business opportunities. These aspects have been outlined in Chapter 8 of this study. 12.4 Corporate Social Responsibility

In addition to current efforts on CSR, mine developers must assist local communities with capacity to develop mine investment balance sheet from a host community point of view. In
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troubled times, such balance sheets will help all players address real issues than dwell on acrimony. 12.5 Small Scale Mining Industry and the Environment

The cumulative environmental degradation by small scale mining industry should be taken seriously. In addition to building skills for best small scale mining practices, capacity to create alternative income generation activities in mining areas must be developed to minimize the cumulative environmental degradation by this sector. The “time-is-money” reality must be demonstrated to this cadre of mining who hang to the trade for life but with immense NET NEGATIVE impacts on themselves, their families and communities/countries in which they operate. Furthermore, traditional leadership must be given capacity to monitor small scale mining activities, as most of these activities are in remote areas. 12.6 Enhancing Quantified Environmental Information

There is need to invest in closing the many gaps (Xs and Shades in Table 6.9) in environmental information. It is difficult to carryout mitigation measures without quantified evidence. 12.7 Value Addition in the Minerals Sector

To minimize environmental burden, Africa must go beyond production of primary mineral products. Appropriate incentives must be encouraged for value addition in mineral producer countries.

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APPENDICES

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APPENDIX 1: Terms of Reference for the Consultant on Environment and Mining in Africa

Background In 2007, UNEP established the International Panel for Sustainable Resource Management (Resource Panel) as a first step towards addressing the need to tackle resource efficiency challenges for both renewable and non-renewable resources from a life-cycle perspective. The overall objective of the Resource Panel is to provide independent scientific assessment on environmental impacts due to the use of natural resources over the full life cycle and provide advice to governments and international organizations on ways to reduce these identified impacts. This is with a view to increasing resource efficient economic growth in all regions of the world and to contribute to stimulating sustainable innovation. The partnership aims at providing scientific assessments and policy advice on decoupling environmental impact and contributes to the overall policy goal of decoupling environmental impacts from economic growth. The panel will initially focus on selected consumption and production induced material flows using renewable and non-renewable resources. Mining and minerals are one of the product group identified for initial consideration. In February 2007, the Economic Commission for Africa (ECA) and the African Development Bank (AfDB) organized the Big Table on “Managing Africa’s Natural Resources for Growth and Poverty Reduction”. The meeting recognized that, historically, Africa had not gained the best possible benefits from the exploitation of its natural resources and noted that in the 1990s, many African countries embarked on a scale of reforms-which did not have any historical precedentand formulated generous investment laws and regulations to attract foreign direct investment (FDI) to their natural resources sector. The meeting also observed that there has been a paradigm shift in the 2000s with a surge towards a more societal-oriented development. In addition, the Big Table noted that the natural resources sector is witnessing a commodity price boom, fuelled by global resource scarcity and the entrance in the commodity market of new global resourcedemanding players such as China and India. In view of the above factors, it appeared most appropriate and urgent to evaluate past experiences in natural resources development in Africa and put forward recommendations as to how mineral rich countries of Africa might best ensure that their natural resources contribute to the economic and social development of their societies in a sustainable and equitable manner. To achieve this, the Big Table recommended the establishment of an International Study Group (ISG) to review Africa’s mining regimes. The inception meeting of the International Study Group to Review Africa’s Mining Regimes that was convened by UNECA in October 2007 discussed the draft TOR for the ISG indicating the core areas to be covered by the study, the mechanism for conducting the study and the timeline for completing the study. Based on the outcome from the inception meeting ECA invited UNEP to lead the preparation of the report on the environmental sustainability component of mining regimes in Africa. This has provided the background for the preparation of this TOR.

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Tasks to be undertaken The main objective of this task is to prepare a comprehensive review report on Mining and Environment in Africa that will feed into the general report of the ISG in Mining Regimes in Africa and the work to be done under the International Resource Panel. The following are the specific tasks that shall be undertaken by the consultant.
• • • • • •

• •

Review the contribution of mining to socio-economic development and poverty reduction in Africa including the contribution of Artisanal and small-scale mining. Review the major global and regional initiatives and trends in the area of mining and mineral resource flows that may have some direct and indirect effect on the development of the mining sector in Africa. Identify the major environmental impacts caused by mining operations in the region with a focus on the major mining sectors and provide figures that show the current state and future trend of environmental degradation and pollution caused by the sectors. Review the existing environmental management regimes for the mining sector in the region with a particular focus on policy provisions, institutional arrangements and effective enforcement/implementation. Identify existing needs and gaps that need to be addressed at various levels in order to ensure the development of the sector on a sustainable basis and enhance its transformational impacts. Make specific recommendations that need to be taken up at the regional, national and sectoral level with a particular focus on the shift from reactive to a more proactive environmental regime. Prepare a consolidated report covering the above points and make presentations to the regional validation workshop that will be reviewing the reports. Finalize the report on the basis of the feedback to be provided by UNEP and UNECA and the comments to be obtained from the regional meeting.

Duration and deliverables The duration of assignment for the consultant to undertake the above tasks is 4 p/m spread over 10 months as per the following time frame for the deliverables. November 2008 February 2009 30 March 2009 Submission of the first draft of the Report to UNEP and UNECA for initial review Presentation of the final draft report to the meeting of the International Study Group (ISG) Submission of the Final Report

Qualification: The consultant should have an advanced degree in the filed of environmental and/or mining engineering with extensive experience on environmental management and policies of mining industries.
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Language:

Fluency in written and spoken English is a requirement while working knowledge of French is desirable.

Essential Core Competencies: Communication, team work, planning and organizing, creativity and innovation, client orientation, technological awareness, ability to extract, interpret and analyze data, commitment to continuous learning, and ability to work effectively in a multicultural environment. Core Values: Integrity, Professionalism, and Respect for Diversity. Other Skills: Strong research, analytical and drafting skills; ability to effectively evaluate materials, and determine their significance to the work of the study are desirable. Proficiency in computerized word processor, spreadsheet, database and statistical software is also desirable. Duty station: The consultant will be working from his home-base with a travel requirement to participate in the validation workshop. Commencing date: 25 June 2008

Appendix 2: Figures and Tables
Table A2.1 Major ore deposits of Africa COUNTRY MAJOR ORE DEPOSITS Algeria Iron, lead, zinc, petroleum

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Angola Benin Botswana Burkina Faso Burundi Cameroon Chad Congo DR Congo Brazzaville Cote d’Ivoire Egypt Equatorial Guinea Eritrea Ethiopia Gabon Ghana Guinea Kenya Lesotho Liberia Libya Madagascar Malawi Mali Mauritania Morocco Mozambique Namibia Niger Nigeria Rwanda Senegal Sierra Leone South Africa Sudan Swaziland Tanzania Togo Tunisia Uganda Zambia Zimbabwe

Diamond, gold, nickel, chromium, platinum group metals, iron, manganese, copper, lead Gold, petroleum Diamond, copper, nickel, coal, gold, platinum group metals Gold, lead Gold, tin Bauxite, petroleum, gemstones Petroleum, coltan, gold Copper, cobalt, zinc, coltan (columbite-tantalite), diamonds, tin, manganese Petroleum, copper, lead, zinc, iron, phosphate Gold, diamond, iron Petroleum, lead Petroleum Gold Gold Petroleum, manganese, uranium Gold, diamond, bauxite Bauxite, gold, diamond, iron, nickel, uranium Trona (sodium-rich mineral), gemstones Diamond, uranium Iron, diamond Petroleum Chromium, gas, gemstones Coal, gemstones Gold Iron, copper, phosphate Phosphate, lead, zinc, copper Bauxite, beryllium, tantalum, gold, coal, gemstones, Diamond, gold, silver, uranium, copper, lead, zinc, gemstones Uranium, gold, coal Petroleum, gold, tin, coal Tin, coltan, gold, gemstones Gold, phosphate, iron Bauxite, diamond, gold Gold, PGMs, coal, diamonds, iron, manganese, chromium, uranium, vanadium, lead, zinc, phosphate, gemstones Petroleum, gas Iron, gold, diamond, coal Gold, diamonds, gemstones, coal, gas, phosphate Phosphate Phosphate, gas Gold, copper, cobalt, tin Copper, cobalt, zinc, gemstones Chromium, gold, diamonds, coal, PGMs, Nickel

SOURCE: Geoscience magazine. http://www.miningreview.com/mineralmap.php

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Table A2.2 Summary of mining contributions to economies of African countries [World Bank, 2007].
COUNTRY SOUTHERN AFRICA Angola Botswana Comoros Congo D.R. Lesotho Madagascar Malawi Mauritius Mozambique Namibia South Africa Swaziland Tanzania Zambia Zimbabwe CENTRAL AFRICA Cameroon Central African Republic Chad Congo Republic Equatorial Guinea Gabon EAST AFRICA Burundi Djibouti Eritrea Ethiopia Kenya Rwanda Seychelles Somalia Sudan Uganda Total = 2 countries NORTH AFRICA Algeria Egypt Libya Morocco (+Western Sahara) Tunisia 3.0 / 3.2 2.9 / 2.8 2.5 / 2.6 3.5 / 3.5 4.2 / 4.4
Gold, nonmonetary excluding ores (1st, 10.9% STE); Copper ores, concentrates (3rd, 8.6% STE) Copper, anodes, alloys (1st, 55.8% STE); Cobalt, cadmium, and the like, unwrought (2nd, 7.0% STE) Nickel, nickel alloy, unwrought (2nd, 12.6% STE); Nickel ores, concentrates (3rd, 12.3% STE) Diamonds excluding industrial (1st, 42.6% STE) Other nonferrous ore, concentrated (2nd, 17.2%) Diamonds excluding industrial (3rd, 15.0% STE) Diamonds excluding industrial (1st, 88.2% STE) Nickel mattes, sinters, and the like (2nd, 8.1% STE)

MINERALS IN TOP 3 EXPORT COMMODITIES (2005)

CORRUPTION PERCEPTION INDEX (CPI)

2007/2008 2.2 / 1.9 5.4 / 5.8 2.7 / 2.5 1.9 / 1.7 3.3 / 3.2 3.2 / 3.4 2.7 / 2.8 4.7 / 5.5 2.8 / 2.6 4.5 / 4.5 5.1 / 4.9 3.3 / 3.6 3.2 / 3.0 2.6 / 2.8 2.1 / 1.8

Aluminium, aluminium alloy, unwrought (1st, 73.4% STE) Diamonds excluding industrial (1st, 39.1%); Radioactive chemicals (2nd, 11.4% STE); Zinc, zinc alloy, unwrought (3rd, 9.7% STE) Platinum (1st, 12.5% STE); Other coal, not agglomerated (2nd, 8.0% STE); Gold, nonmonetary excluding ores (3rd, 7.9% STE)

Total = 9 countries 2.4 / 2.3 2.0 / 2.0 1.8 / 1.6 2.1 / 1.9 1.9 / 1.7 3.3 / 3.1

Diamonds excluding industrial (1st, 40.0% STE)

Manganese ores, concentrates (3rd, 6.9%)

Total = 2 countries 2.5 / 1.9 2.9 / 3.0 2.8 / 2.6 2.4 / 2.6 2.1 / 2.1 2.8 / 3.0 4.5 / 4.8 1.4 / 1.0 1.8 / 1.6 2.8 / 2.6

Other ferrous waste, scrap (3rd, 7.0% STE)

Ores and concentrates of molybdenum, niobium, and the like (2nd, 19.0% STE); Tin ores, concentrates (3rd, 9.8% STE)

Portland cement, and the like (3rd, 4.7% STE) Inorganic acid, oxide, and the like (1st, 7.2% STE); Insulated wire, and the like, conductor (2nd, 6.8% STE); Natural calcium phosph. (3rd, 5.6% STE) Insulated wire, and the like, conductor (3rd, 6.7% STE)

Total = 3 countries

137

Table A2.2 (continued)
COUNTRY WEST AFRICA Benin Burkina Faso Cape Verde Gambia Ghana Guinea Guinea-Bissau Ivory Coast Liberia Mali Mauritania Niger Nigeria Sao Tome and Principe Senegal Sierra Leone Togo MINERALS IN TOP 3 EXPORT COMMODITIES (2005)
Other nonferrous metal waste (3rd , 6.4% STE)
CORRUPTION PERCEPTION INDEX (CPI) 2007/2008

Manganese ores, concentr. (2nd, 7.2% STE) Aluminium ore, concentrate (1st, 50.9% STE) Alumina (aluminium oxide) (2nd, 17.2% STE) Copper ores, concentr. (3rd, 7.8% STE)

2.7 / 3.1 2.9 /3.5 4.9 / 5.1 2.3 / 1.9 3.7 / 3.9 1.9 / 1.6 2.2 / 1.9 2.1 / 2.0 2.1 / 2.4 2.7 / 3.1 2.6 / 2.8 2.6 / 2.8 2.2 / 2.7 2.7 / 2.7 3.6 / 3.4 2.1 / 1.9 2.3 / 2.7

Iron ore, concentrates not agglomerated (1st, 51.3% STE) Radioactive chemicals (1st, 79.5% STE)

Inorganic acid, oxide, and the like (1st, 38.8% STE) Diamonds excluding industrial (1st, 62.7% STE); Natural calcium phosphates (2nd, 19.8% STE)

Total = 8 countries SOURCES: (i) CIA World Fact Book, https://www.cia.gov/library/publications/the-world-factbook/geos/za.html,

(ii) US Geological Survey, http://minerals.usgs.gov/minerals/pubs/country/africa.html, (iii)Transparency International, http://www.transparency.org/policy_research/surveys_indices/cpi, and (iv) SADC Trade, Industry and Investment Review 2007/8, http://www.sadcreview.com/country_profiles/frprofiles.htm
(x)

STE = Share of Total Export

138

Appendix 3: General Conversion Factors for Energy

139

Appendix 4 Profile of a sample of social and environmental regimes in mining industry in Africa
DESIRED DESIGN BRIDGE FOR AN EFFECTIVE SOCIAL AND ENVIRONMENTAL REGIME ELEMENTS JUSTIFICATION / DESCRIPTION BOTSWANA NIL (a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry (b) Autonomous body with capacity to enforce the environmental laws. 2 Ingredients of an enabling bridge to desired results (c) Integration of environmental requirements into mining legislation. (d) Mandatory environmental prerequisites / preconditions to exploration / mining rights. (e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection. EXISTING DESIGN CONGO D.R. ETHIOPIA
To improve and enhance the health and quality of life of all Ethiopians and to promote sustainable social and economic development through the sound management and use of natural, human-made and cultural resources and the environment as a whole so as to meet the needs of the present generation without compromising the ability of future generations to meet their own needs [www.epa.gov.et/AboutEPA.htm]. NIL NIL

1 Mission / Objective(s) of the environmental law

Humanity will continue to exist beyond a mine project. Continuity of human existence will be threatened if a mine project is wasteful of natural resources.

To foster the pursuit of sustainable development by coordinating the protection of the country’s environment and the conservation of its natural resources.

A mining project must socially, economically and environmentally NET add value to the host community. Environmental regime sets the framework for implementing environmental protection activities in mining operations. An environmental regime will be “lame” in the absence of an autonomous body with capacity to enforce it. A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry. Need to carry out mining operations in an environmentally friendly manner should be non-negotiable, and must be mandatory. Sufficient technical and financial resources are necessary to effectively enforce environmental regime. Inadequate negotiation capacity disadvantages the mineral host community to bargain for environmental protection and mineral wealth benefits.

NIL

Mines and Minerals Act 1999, sec. 14(1)(b).

Mining Code, Art. 39&42.

Mining Proc. No 52/1993, Article 26(3). The Environmental Protection Authority (EPA) and Regional Environmental Agencies (EIA Proc. No 299/2002 & Environmental Pollution Control Proc. 300/2002). AUTONOMOUS? Provisions for environmental requirements in the Mining Proclamation No 52/1993, Article 26(3). (i) No environmental preconditions for exploration rights. (ii) Yes for mining rights [Mining Proc. No 52/1993, Article 46(2)(h)& Mining Regulation, Article 5(2)(d)].

The Department of Environmental Affairs Act 6, 2005 [Ch6507s2]2. AUTONOMOUS?

Department in charge of the Protection of the Mining Environment, Ministry of Mines (Art. 15). AUTONOMOUS?

Provisions for environmental requirements in the Mines and Minerals Act 1999, sec. 14(1)(b).

Provisions for environmental requirements in the Mining Code, Art. 39&42. (i) Requirement to develop an environmental management plan to obtain mining rights (Art.42). (ii) Existence of rehabilitation plan for mine closure (Art. 80(c))

(i). Exploration rights [Sec. 14(1)(b)] (ii) Mining rights [Sec. 65]. (iii) Quarry rights (Art. 154(b)) Department should be efficiently managed and provided with the necessary resources [www.saiea.com/dbsa_book/Botswana.pdf]

NIL

NIL

NIL

NIL

NIL

140

(Table Continued)

(g) A well informed and adequately vigilant public against environmental mismanagement. (h) Adequate public participation in environmental management.

Absence of a well informed and adequately vigilant public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored. Participation of host community in environmental management strategically cardinal during active mine period and for post mining period.

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and nonformal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information. (ii) Public hearing/comments on EIA Sec. 12(2)(a).

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information. (ii) NO Public hearing/comments

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information. (ii) Public hearing/comments on EIA (Article15).

NIL

NIL
(i) Jobs and on-job training. (Art. 273(c)). (ii) Priority to Congolese firms for any mining contracts with conditions in terms of quantity, quality, price and delivery and payment dates (Art. 273(f)). (iii) Consent to operate near occupied land (Art. 279). (iv) Compensation for damages even after rights granted (Article 280 & 281). (v) Plan for social responsibility (Art. 69(g)). Management of postmine social impacts?

NIL
(i) Jobs & on-job training (Mining Proc. No 52/1993, Article 46(2)(h)& Min. Reg., Article 5(2)(d)). (ii) Domestic goods and services (Mining Proc. No 52/1993, Art. 27(3)) (ii) No displacement without consent (iii) Compensation where necessary (Mining Proc. No 52/1993, Article 24). Management of postmine social impacts?

(i) Jobs and on-job training (ii) No displacement without consent

(i) Socially responsible mine project.

A mine project must be socially and economically responsible to host community.

(iii) Compensation (Mines and Minerals Act 1999, Sec. 63). (iv) Preference for domestic goods and services owned by Botswana citizens (Mines and Minerals Act 1999, Sec. 12).
Management of postmine social impacts?

(j) Quantified expectations known, traceable and accessible by all players. (a) Quantified NET benefits (envisaged to be POSITIVE). 3 Quantifi able / measura ble NET results

All benefits (environmental, monetary, etc) should be quantified and known in advance and traceable during and after mine project. The NET result (environmental, monetary, etc) of the measures of the environmental regime must be dynamically assessed against planned targets, and to terminate the mine project if results become significantly unacceptable.

NET GAIN/LOSS quantified?

NET GAIN/LOSS quantified?

NET GAIN/LOSS quantified?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(b) Quantified environmental and social liabilities (envisaged to be ZERO)

The liabilities of a mine project must be dynamically assessed against projections, and to terminate a mine project if liabilities begin to indicate unfavourable state.

(i) Biennial environmental audits to ensure compliance (Sec. 21), suspend/terminate licence if mine project fails to comply with environmental commitments. (ii) Mine project must rehabilitate mine area on closure (Mines and Minerals Act 1999, Sec. 65). (iii) Security fund for environmental liabilities (Mines and Minerals Act 1999, Sec. 65(9)). No security fund for environmental liabilities. ZERO LIABILITY?

(i) 0.5% of turnover rehabilitation fund (Art. 204, Art. 258). (ii) Mine project must rehabilitate after sampling / mining closure (Art. 147, Art. 294). ZERO LIABILITY?

(i) Suspend/terminate license if mine project fails to comply with environmental commitments (EIA proc. 299/2002, Article 12). (ii) Mine project must rehabilitate mine area on closure (Mining Proc. 52/1993, Art. 52(3)& Mining Regulation, Art. 29). (iii) Mine project MAY require to deposit security for environmental liabilities (Mining Proc. 52/1993, Article 45). ZERO LIABILITY?

141

DESIRED DESIGN BRIDGE FOR AN EFFECTIVE SOCIAL AND ENVIRONMENTAL REGIME ELEMENTS (a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry JUSTIFICATION / DESCRIPTION Humanity will continue to exist beyond a mine project. Continuity of human existence will be threatened if a mine project is wasteful of natural resources. A mining project must socially, economically and environmentally NET add value to the host community. Environmental regime sets the framework for implementing environmental protection activities in mining operations. GABON [Tarik, 2008]

EXISTING DESIGN GHANA
To ensure that mining activities do not cause adverse effects on the natural resources, environment or public health unless ((Environmental Assessment Regulation, 1999, Part I, Sec. 1(2); Minerals and Mining Act 2006, sec. 18). (NOT EXPLICIT) NET GAIN/LOSS? The Environmental Protection Agency Act, 1994 and the Environmental Assessment Regulations 1999. (Environmental Protection Agency Act, 1994, Sec. 12 subsection 1&2).

GUINEA

1 Mission / Objective(s) of the environmental law

NIL

NIL

NET GAIN/LOSS?

NET GAIN/LOSS?

Environmental Management Act [Chapter 20:27]. The Minister of Environment and Tourism or any other Minister to whom the President may assign? Environmental Management Board? National Environmental Council? Environmental Management Agency?

Mining code, Article 16

(b) Autonomous body with capacity to enforce the environmental laws.

An environmental regime will be “lame” in the absence of an autonomous body with capacity to enforce it.

Environmental Management Act [Chapter 20:27], sec. 5, 7, 10, 37 & 56. AUTONOMOUS?
Provisions for environmental requirements in the Mining code (Mining Law No. 005/2000, Arts. 10, 35, 54, 73, 77, 84, 94).

The Environmental Protection Agency (Environmental Protection Agency Act, 1994, Sec. 2(i)).

Ministerial decree of Environmental and Natural Resource 1990? National Director of Mines?

(c) Integration of environmental requirements into mining legislation. 2 Ingredients of an enabling bridge to desired results (d) Mandatory environmental prerequisites / preconditions to exploration / mining rights.

A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry.

Provisions for environmental requirements in the Mining code (Minerals and Mining Act 2006, sec. 18). (i) Exploration requires approval permits (Minerals and Mining Act 2006, sec. 18). (ii) Mining rights requires EIA and EMP (EIA Regulations, 1999, sec. 1, 3 and schedule 1(5) & 2(11)) (iii) Maintaining mining rights requires adherence to Environmental Management Plan (Environmental Assessment Regulation, 1999, sec. 24). (iv) Reclamation plan part of EIS for permit holders (EIA Regulation 1999, Sec. 14). Parliament shall annually provide to the Agency such sums of money as may be necessary for the efficient discharge of its functions (The Environmental Protection Agency Act No. 490, Sec. 24)

Provisions for environmental requirements in the Mining code, Article 16

Need to carry out mining operations in an environmentally friendly manner should be non-negotiable, and must be mandatory.

(i) Exploration requires approval permits. (ii) Mining rights requires EIA and EMP (iii) Maintaining mining rights requires adherence to Environmental Management Plan (Mining Law No. 005/2000, Art. 94).

No mandatories.

(e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection.

Sufficient technical and financial resources are necessary to effectively enforce environmental regime. Inadequate negotiation capacity disadvantages the mineral host community to bargain for environmental protection and mineral wealth benefits.

NIL

NIL

NIL

NIL

NIL

142

(Table continued)

(g) A well informed and adequately vigilant public against environmental mismanagement.

Absence of a well informed and adequately vigilant public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored.

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

(ii) NO public hearings.

(i) [a] To promote studies, research, surveys and analyses for the improvement and protection of the environment and the maintenance of sound ecological systems in Ghana; EPA Act 1994, Part I, 2(l). [b] Formal and non-formal environmental education programmes for public awareness (EPA Act 1994, Part I, 2(m)). [c] Comprehensive environmental database for the public (EPA Act 1994, Part I, 2(o)). [d] Environmental seminars, training, reports and information (EPA Act 1994, Part I, 2(p)). (ii) Public hearing (EIA Regulation, 1999, sec. 17). NIL
(i) Priority for jobs and training. Minerals and Mining Act 2006, Sec. 11(d) & 50. (ii) Compensation for damage / displacement /loss of income (Mines and Minerals Act, Sec. 73 & 74). Management of postmine social impacts?

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

(ii) NO public hearings.

(h) Adequate public participation in environmental management.

Participation of host community in environmental management strategically cardinal during active mine period and for post mining period.

NIL
(i) Jobs and on-job training. (ii) Compensation for damages (Mines and Minerals Act, sec. 80, 133, 141). (iii) Compensation for displacement (iv) Land occupier can lodge complaint (Sec. 123). Management of postmine social impacts?

NIL

(i) Socially responsible mine project.

A mine project must be socially and economically responsible to host community.

(i) Priority for jobs, training and contracts. (Art. 18 &19). (ii) Consent (Art. 64) (iii) Compensation (Art. 71) Management of postmine social impacts?

(j) Quantified expectations known, traceable and accessible by all players. (a) Quantified NET POSITIVE benefits. 3 Quantifiable / measurable results

All benefits (environmental, monetary, etc) should be quantified and known in advance and traceable during and after mine project. The NET results (environmental, monetary, etc) of the measures of the environmental regime must be dynamically assessed against planned targets, and to terminate the mine project if results become significantly unacceptable.

NIL

NIL

NIL

(i) Taxes and royalties ((Mining Law No. 005/2000, Art. 99; and Titrate X). NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(b) ZERO (environmental and social) liabilities

The liabilities of a mine project must be dynamically assessed against projections, and to terminate a mine project if liabilities begin to indicate unfavourable state.

(i) Periodical assessment of the mine projects to ensure compliance (Sec. 106). (ii) Rehabilitation requirement is imposed on the holder of a decision letter (Mining Law No. 005/2000, Art. 84).
ZERO LIABILITY?

(i) Updating of environmental assessment report only if fundamental change in the environment occurs (Section 26(2)). (i) Rehabilitation fund (EPA Act 1994, Part III). ZERO LIABILITY?

(i) Holders of mining titles liable for rehabilitation of the developed sites, even after the surrender of titles takes effect (Art. 57). (ii) NOT mandatory to update environmental assessment report during the course of the development of the project? ZERO LIABILITY?

143

DESIRED DESIGN
BRIDGE FOR AN EFFECTIVE SOCIAL AND ENVIRONMENTAL REGIME

EXISTING DESIGN MOZAMBIQUE [Tarik, 2008]
The Constitution (Art. 135.1) confers on every citizen both the right to live in a balanced environment as well all the duty to defend this right. Therefore, need for correct management of the environment as well as the creation of conditions favourable to the health and well being of people, to the socio-economic and cultural development of communities and to the preservation of the natural resources which sustain them. (LAW Nº / 97 of July 30, (AR-IV/044/30/07/97))

ELEMENTS

JUSTIFICATION / DESCRIPTION

NIGERIA

SOUTH AFRICA
To provide for cooperative environmental governance by establishing principles for decision-making on matters affecting the environment, institutions that will promote cooperative governance and procedures for coordinating environmental functions exercised by organs of state; and to provide for matters connected therewith. (National Environmental Management Act, 1998 (Act No. 107 of 1998).

1 Mission / Objective(s) of the environmental law

(a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry

Humanity will continue to exist beyond a mine project. Continuity of human existence will be threatened if a mine project is wasteful of natural resources.

NIL

A mining project must socially, economically and environmentally NET add value to the host community. Environmental regime sets the framework for implementing environmental protection activities in mining operations.

NIL

NIL

NIL

Environmental Law of September 1997. (i). The Council of Ministers (Art. 6(2)) / National Council for Sustainable Development. Policy maker also the enforcement agency? (ii). Public participation in the preparation of environmental policies and legislation (Art. 8). (iii). Public participation in the development of activities that implement the National Programme for Environ Management (Art. 8). Environmental requirements integrated into the mining legislation (Mining Law, 2002, Chapter V)

Minerals and Mining Act, 2007 and Environmental Impact Assessment Decree, 1992

National Environmental Management Act, 1998 and its Amendment Act, 2006

2 Ingredients of an enabling bridge to desired results

(b) Autonomous body with capacity to enforce the environmental laws.

An environmental regime will be “lame” in the absence of an autonomous body with capacity to enforce it.

The Environmental Protection Agency (EIA Decree, 1992).

The Minister of Mineral and Energy (Sec. 39(4) & 45), NEMA/EIA Reg. 2006, Art. 4(4))

(c) Integration of environmental requirements into mining legislation.

A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry.

Environmental requirements integrated into the mining legislation (Chapter 4 of Minerals and Mining Act, 2007). (i) Mandatory environmental preconditions to obtain exploration rights (Minerals and Mining Act, 2007, sec. 61). (ii) Mandatory environmental pre-conditions to obtain mining rights (Sec. 71& 119). (iii) Mandatory environmental prerequisites to maintain mining rights (Sec. 111 & 118).

Reconnaissance permit, prospecting right or mining permit requires an environmental management plan. EIA/EMP for operations also required. (Mineral and Petroleum Resources Development Act, 2002, sec. 39 (2)(3)) (i) Mandatory environmental preconditions to obtain exploration rights (Sec. 80(1)(c)). (ii) Mandatory environmental preconditions to obtain mining rights (Sec. 22 & 39(1)). (iii) Mandatory environmental prerequisites to maintain mining rights (Sec. 47).

(d) Mandatory environmental prerequisites / preconditions to exploration / mining rights.

Need to carry out mining operations in an environmentally friendly manner should be nonnegotiable, and must be mandatory.

(i) NO mandatories to obtain exploration rights. (ii) NO mandatories to obtain mining rights. (iii) Mandatory to obtain environmental permit within a specified period and to comply with environmental protection obligations (Art. 15, 18, 22 & 35)

144

(Table continued)

(e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection.

Sufficient technical and financial resources are necessary to effectively enforce environmental regime. Inadequate negotiation capacity disadvantages the mineral host community to bargain for environmental protection and mineral wealth benefits.

NIL

NIL

Adequate resources (National Environmental Management Act, 1998 ((ACT NO 107 OF 1998, Section 3.2). NIL Promote the environmental literacy, education and empowerment of South Africa's people. Develop and maintain information management systems to provide accessible information (National Environmental Management Act, 1998 ((ACT NO 107 OF 1998, Section 3.2). (ii) Public hearing (Sec. 10) Adequate public participation (National Environmental Management Act, 1998 ((ACT NO 107 OF 1998, Section 3.2). (i) Jobs, skills (Sec. 4.1). (ii) Compensation to land users for damage caused (Minerals and Pet Devt Act, 2007, sec. 56(e), 70(1)(j)). (iii) Potentially affected persons can prevent the grant of a mineral right or an environmental permit. (Sec. 10(2)) (iv) Black empowerment ((Minerals and Pet Devt Act, 2002, 100(2)(a)).
Management of postmine social impacts?

NIL

NIL

(g) A well informed and adequately vigilant public against environmental mismanagement.

Absence of a well informed and adequately vigilant public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored.

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

(ii) NO public hearings. (h) Adequate public participation in environmental management. Participation of host community in environmental management strategically cardinal during active mine period and for post mining period.

(ii) Public hearing (EIA Decree, 1992, sec. 25).

NIL (i) Compensation to land users for damage caused (Mining Law 2002, Art. 9(2)(c), 15(6)(k), 18(2)(g), Art 39(6)). (ii) Potentially affected persons CANNOT PREVENT the grant of a mineral right or an environmental permit. (iii) NO requirement for informed consent.
Management of postmine social impacts?

NIL (i) Training of Nigerians (Mining Decree 2002, Art. 22(3)(c)) (ii) Compensation to land users for damage caused (Minerals and Mining Act, 2007, sec. 56(e), 70(1)(j)). (iii) Potentially affected persons CANNOT PREVENT the grant of mineral right / environ permit. (iv) NO need for inform consent.
Management of postmine social impacts?

(i) Socially responsible mine project.

A mine project must be socially and economically responsible to host community.

(j) Quantified expectations known, traceable and accessible by all players.

All benefits (environmental, monetary, etc) should be quantified and known in advance and traceable during and after mine project.

NIL

(i) Developer to state in writing the rate of annual surface rent to be paid by the lessee for the land used for mining operations (Sec. 102(2)).

NIL

145

(Table Continued)

(a) Quantified NET POSITIVE benefits.

The NET result of the measures of the environmental regime must be dynamically assessed against planned targets, and to terminate the mine project if results become significantly unacceptable.

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss? (i) Rehabilitation to its natural or

3 Quantifiable / measurable results The liabilities of a mine project must be dynamically assessed against projections, and to terminate a mine project if liabilities begin to indicate unfavourable state.

(b) ZERO (environmental and social) liabilities

(i) Responsibility of polluter to rehabilitate during mining and after mine closure. (Art. 15(6)(h), 18(2)(d) & 22(1)(c)). (ii) No requirement for periodic update of the environmental impact study during mine project. (iii) Not mandatory to prepare closure plan. (iv) No requirement to post a security bond.
ZERO LIABILITY?

(i) A tax deductible reserve for mine rehabilitation and closure costs. (Sec. 30 & 121). (ii) Mine project must rehabilitate after sampling (Sec. 61(1)(d), 90, 118(b) & 120). (iii) NO requirement for periodic update of the environmental impact study during mine project. (iv) NOT mandatory to prepare closure plan.
ZERO LIABILITY?

predetermined state or to acceptable land use (Min. & Petr. Resources Devt Act 28, 2002, Sec. 42; Chapt. 2, Part IV, Art. 73). (ii) Annual environ audits during mine project. (Sec. 41(3)). (iii) Rehab. fund (Chapt. 2, Part III, Art. 53(1); Min. & Petr. Resources Devt Act 28, 2002, Sec. 41)). (iv) Assess annual liability and adjust environ fund (Min. & Petr. Resources Devt Act 28, 2002, Sec 41(3)).
ZERO LIABILITY?

146

DESIRED DESIGN BRIDGE FOR AN EFFECTIVE SOCIAL AND ENVIRONMENTAL REGIME ELEMENTS JUSTIFICATION / DESCRIPTION TANZANIA

EXISTING DESIGN UGANDA ZAMBIA
To ensure that mining projects take into account the need to (M & M Devt Act of 2008, Part IX, Art. 115): (a) conserve and protect the (i) air, water, flora, fauna, soil, fish, fisheries and scenic attractions; and (ii) features of cultural, architectural, archaeological, historical or geological interest; and (b) prevent any adverse socioeconomic impact or harm to human health.

1 Mission / Objective(s) of the environmental law

(a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry

Humanity will continue to exist beyond a mine project. Continuity of human existence will be threatened if a mine project is wasteful of natural resources.

NIL

To assure all people living in the country the fundamental right to an environment adequate for their health and well-being; and to use and conserve the environment and natural resources of Uganda equitably and for the benefit of both present and future generations.(National Environment Act 1995 (Ch 153), Part II(2)) .

A mining project must socially, economically and environmentally NET add value to the host community. Environmental regime sets the framework for implementing environmental protection activities in mining operations.

NIL Environmental provisions in the Mining Act (Mining Act 1998, sec. 34(2)(b); Sec. 35(3) ; Sec. 38(4)(d); Sec. 38(5)). The National Environment Management Council and the Minister responsible for environmental issues. (Environmental Impact Assessment and Audit Regulation, 2005).
AUTONOMOUS?

NIL

NIL

Environmental provisions in the Mining Act 2003, sec. 35(2)(a), 43(3)& 47(2)(c) & Part XI The National Environment Management Authority under the general supervision of the Minister (The National Environmental Act, Cap 153 Part III Sec.4; and the EIA Regulation 13/1998).
AUTONOMOUS?

Environmental provisions in the Mines and Minerals Act of 2008, Part IX. Environmental Council of Zambia (Environmental Protection and Pollution Control Act, Sec. 2 & EIA Regulation, Part II-V).
AUTONOMOUS?

(b) Autonomous body with capacity to enforce the environmental laws.

An environmental regime will be “lame” in the absence of an autonomous body with capacity to enforce it.

2 Ingredients of an enabling bridge to desired results

(c) Integration of environmental requirements into mining legislation.

A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry.

Provisions for environ requirements in the Mining Act (Mining Act 1998, sec. 34(2)(b); Sec. 35(3); Sec. 38(4)(d); Sec. 38(5)). (i) NO exploration rights granted under the Mining Act. (ii) Mandatory environmental preconditions to obtain mining rights (Mining Act 1998, sec. 39(1)(d)). (iii) Mandatory to submit an environmental management plan (Mining Act of 1998, sec. 39(1) (d)). (iv) NO mandatory environmental prerequisites to maintain mining rights.

Provisions for environmental requirements in the Mining Act 2003, sec. 35(2)(a), 43(3)& 47(2) (c). (i) NO mandatory environmental preconditions for exploration rights. (ii) Mandatory environmental impact assessment, environmental impact research, environmental statement and safety factors to obtain mining rights. (Mining Act 2003, Sec. 43(3)(b)). (iii) Mandatory to have and adhere to environmental management plan in order to maintain mining rights (Mining Act 2003,Sec. 109(3)).

Environmental requirements integrated into the mining legislation (Mines and Minerals Act of 2008, Part IX). (i) Mandatory [a] environ studies and assessments for prospecting licence (Mines and Minerals Act of 2008, Part III, Art. 19, Sec. 1(h&i)). [b] to develop an environ mgt plan to obtain mining rights (M & M Act 2008,Part II, Art. 12, Sec. 4(b); EIA Reg., Sec. 11(i)). (iii) Public awareness program a precond. for application of large scale mining license (M & M Act of 2008, Part III, Art. 25). (iv) Mandatory to have/adhere to environ mgt plan to maintain mining rights (M & M. Act 2008, Part IX, Art. 116).

(d) Mandatory environmental prerequisites / preconditions to exploration / mining rights.

Need to carry out mining operations in an environmentally friendly manner should be non-negotiable, and must be mandatory.

147

(Table continued)

(e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection.

Sufficient technical and financial resources are necessary to effectively enforce environmental regime. Inadequate negotiation capacity disadvantages the mineral host community to bargain for environmental protection and mineral wealth benefits.

NIL

NIL

NIL

NIL

NIL

NIL (i) Proactive programs on environmental education to create an enlightened public opinion (EPPC Act No. 12 of 1990, Sec. 6(i) & 76(f)). (ii) Public hearing (EPPC Act, Sec. 2 & EIA Regulation, Part IIV Sec. 17 & 18). NIL (i) Preference to (a) train and employ Zambians, (b) buy Zambian goods and services, (c) procure from Zambians (Mines &Minerals Act of 2008, Part II, Art. 13). (ii) License holder to get written consent of affected people (Mines and Minerals Act of 2008, Part II, Art. 127, Sec. 1(b)). (iii) Compensation (Mines and Minerals Act of 2008, Part II, Art. 132, Sec. 1).
Management of postmine social impacts?

(g) A well informed and adequately vigilant public against environmental mismanagement.

Absence of a well informed and adequately vigilant public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored. Participation of host community in environmental management strategically cardinal during active mine period and for post mining period.

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

(ii) Public hearing (Sec. 26 & 27). (h) Adequate public participation in environmental management. NIL

(ii) Public hearing (Sec. 19,20&22). NIL

(i) Socially responsible mine project.

A mine project must be socially and economically responsible to host community.

(i) Employment and training of Tanzanians as PER PLAN (Sec. 38(f); Sec. 44(b)). (ii) Compensation (Sec. 95(1)(b) ; Sec. 96(3)). (iii) NO free and informed consent. (iv) NO social policy document.
Management of postmine social impacts?

(i) Preference to (a) train and employ Ugandans, (b) buy Ugandan goods and services, (c) procure from Ugandans (Mining Act, sec 26(h) & 45(1)(e), Sec. 113). (ii) Written consent of affected people (Mining Act, sec 26(h) & 45(1)(e), Sec. 113). (iii) Compensation (Mining Sec. 79, 80& 82).
Management of postmine social impacts?

(j) Quantified expectations known, traceable and accessible by all players.

All benefits (environmental, monetary, etc) should be quantified and known in advance and traceable during and after mine project.

NIL

NIL

NIL

148

(Table continued)

(a) Quantified NET POSITIVE benefits.

The NET result of the measures of the environmental regime must be dynamically assessed against planned targets, and to terminate the mine project if results become significantly unacceptable.

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss?

(i) Taxes, royalties, etc. NET quantified gain/loss? (i) Mine closure pre-conditions (Mines and Minerals Act of 2008, Part IX, Art. 116, Sec.1(c)). (ii) Requirement to post a security bond by the mine project. (Mines and Minerals Act of 2008, Part IX, Art. 116, Sec.2(b); and Art 122). (iii) Post assessment environmental audit between 12-36 months of the commencement of the project. (iv) Protection against wasteful mining (Mines and Minerals Act of 2008, Part IX, Art.121) (v) Mine closure DOES NOT cover environmental and social aspects. ZERO LIABILITY?

3 Quantifiable / measurable results (b) ZERO (environmental and social) liabilities The liabilities of a mine project must be dynamically assessed against projections, and to terminate a mine project if liabilities begin to indicate unfavourable state.
(i) No requirement for periodic update of the environmental impact study during mine project. (ii) Not mandatory to prepare closure plan. (iv) Environmental fund (Mining Act 1998, Sec. 109) ZERO LIABILITY?

(i) Exploration / mining license require annual environmental audit and related to EIA. (Mining Act, Sec. 108(3)) (ii) Mine closure pre-conditions (Mining Act, Sec. 110) (ii) Environmental performance bond (Mining Act, Sec. 112). ZERO LIABILITY?

149

DESIRED DESIGN BRIDGE FOR AN EFFECTIVE SOCIAL AND ENVIRONMENTAL REGIME ELEMENTS (a) Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (b) A NET GAIN socially, economically and environmentally. (a) Presence of a social and environmental regime for mining industry 2 Ingredients of an enabling bridge to desired results JUSTIFICATION / DESCRIPTION ZIMBABWE To provide for the sustainable management natural resources and protection of the environment; the prevention of pollution and environmental degradation. (Environmental Management Act [Chapter 20:27]) NIL

EXISTING DESIGN

1 Mission / Objective(s) of the environmental law

Humanity will continue to exist beyond a mine project. Continuity of human existence will be threatened if a mine project is wasteful of natural resources.

NIL

NIL

A mining project must socially, economically and environmentally NET add value to the host community. Environmental regime sets the framework for implementing environmental protection activities in mining operations.

NIL

NIL

Environmental Management Act Chapt. 20:27 Environmental Management Board, the National Environmental Council, the Environmental Management Agency, all under a Minister designated by the President ([Environmental Management Act Chapt. 20:27], Sec. 5, 7, 10, 37 & 56). Environmental provisions in the Mines and Minerals Act (Part IX)

NIL

NIL

(b) Autonomous body with capacity to enforce the environmental laws. (c) Integration of environmental requirements into mining legislation.

An environmental regime will be “lame” in the absence of an autonomous body with capacity to enforce it.

A reflection of environmental requirements in mining legislation is a strong recognition, at policy level, of the need to address environmental issues in mining industry.

NIL

NIL

150

(Table continued)

(d) Mandatory environmental prerequisites / preconditions to exploration / mining rights.

Need to carry out mining operations in an environmentally friendly manner should be non-negotiable, and must be mandatory.

(i) NO mandatory environmental preconditions for exploration rights. (ii) Mandatory environmental statement and safety factors to obtain mining rights. (Mines and Minerals Act, Sec. 160(2)(c)). (iii) Mandatory to have and adhere to environmental management plan to maintain mining rights (Mines and Minerals Act, Sec. 159(3)(3) (vii)). NIL

NIL

NIL

(e) Sufficient resources for implementation of the environmental regime. (f) Capacity to negotiate for benefits and environmental protection. (g) A well informed and adequately vigilant public against environmental mismanagement. (h) Adequate public participation in environmental management.

Sufficient technical and financial resources are necessary to effectively enforce environmental regime. Inadequate negotiation capacity disadvantages the mineral host community to bargain for environmental protection and mineral wealth benefits. Absence of a well informed and adequately vigilant public to bring to fore any environmental mismanagement may result in many vices being “swept under carpet” or simply ignored. Participation of host community in environmental management strategically cardinal during active mine period and for post mining period.

NIL

NIL

NIL
(i) NO PROACTIVE promotion of environ studies, research, surveys and analyses; formal and non-formal environ education programmes for public awareness; environ database for the public; and environ seminars, training, reports and information.

NIL

NIL

NIL

NIL

(i) NO Public hearing, but one can appeal. (Sec. 123). NIL (i) Jobs and training (ii) Consent (Mines and Minerals Act Sec. 31) (iii) Compensation (Mines and Minerals Act Sec. 80 &133). (ii) Right to graze stock (Mines and Minerals Act, sec. 179).
Management of postmine social impacts?

NIL

NIL

(i) Socially responsible mine project.

A mine project must be socially and economically responsible to host community.

NIL

NIL

(j) Quantified expectations known, traceable and accessible by all players.

All benefits (environmental, monetary, etc) should be quantified and known in advance and traceable during and after mine project.

NIL

NIL

NIL

151

(Table continued)

(a) Quantified NET POSITIVE benefits. 3 Quantifiable / measurable results (b) ZERO (environmental and social) liabilities

The NET result of the measures of the environmental regime must be dynamically assessed against planned targets, and to terminate the mine project if results become significantly unacceptable. The liabilities of a mine project must be dynamically assessed against projections, and to terminate a mine project if liabilities begin to indicate unfavourable state.

(i) Taxes, royalties, etc. NET quantified gain/loss? (i) NO requirement for periodic update of the environmental impact study during mine project. (ii) NOT mandatory to prepare closure plan. (iii) NO requirement to post a security bond by the mine project. ZERO LIABILITY?

NIL

NIL

NIL

NIL

152

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