Sustainable Development in the Mining Industry - KeyNote Presentation at the Mining Engineers' Association(MEAI) Conference, Feb 2014

MINING ENGINEERS’ ASSOCIATION OF INDIA (MEAI) Bhubaneswar Chapter

Workshop at Sukinda Chromite Mines, Tata Steel

28th Feb'14

P ra b h a s h G o ka r n Head Raw Material Projects

Tata Steel

Prabhash Gokarn : Tata Steel

Disclaimer

The presentation is an amalgamation of author’s own views and thoughts.

Tata Steel does not necessarily subscribe to the views and thoughts expressed in the presentation and should not be held responsible for the same.


Presentation Structure

1. Three Views on Development v/s Sustainability 4 - 8

2. Mining and Sustainability 9 - 15

3. Rational Development - “fair” to stakeholders 16 - 20

4. Sustainable Development : Need & Reward 21 - 24

2


….a developer is one who is yet to

build his house, champions of

sustainability are already well

ensconced in theirs….

3

Prabhash Gokarn : Tata Steel 4


First View .….

Mountain Pass Rare Earth Mine in California, United States. The mine, owned by Molycorp Inc., once supplied most of the world's rare earth elements. Chemical processing of ore stopped since 1998 and the mine was fully closed in 2002, in response to environmental restrictions .

5


Second View …. Description of Rare Earth Mining near near the city of Ganzhou, in in Jiangxi province, China : Miners use a chemical extraction process that involves digging several holes of just a few feet in depth and feeding pipes into the holes. A concentrated mixture of chemicals is then pumped through the pipes, leaching out rare earth metals as it passes. It is incredible that such a low-tech method is used to harvest minerals that are used in some of the world's most technologically advanced products…

at any cost

6

Horrendous levels of pollution at Jiangxi


The Confused View….

CLOSED Kerala Mineral & Metals : In God’s own country, water heavily contaminated with monazite, iron fluoride and magnesium, high number of cancer patients.

Unabated Production : Expansion

Kudramukh Iron Ore Company : In Karnataka : mine has one of highest iron ore grades in the world. Not operating since 2005…. 7


Hope yet, Convergence of the Debate..

MolyCorp has reopened MountainPass Mine since

Aug’13

China Announces $1.6 Billion Pollution Fund….

Government has seized control of rare earth mining after finding widespread illegal strip-mining(Feb-14)

INDIA

?

8



…. Mining uses up the resources which

promotes it, thus it must catalyze the

development of other economic activities

and also generate enough positive impacts to

assist in sustainable development ….

10


Mining & Sustainability

Mining necessarily ends up depleting the resource it uses and is characterized by negative impacts.

However, it has significant potential for making positive impact. It is possible for mining to contribute to sustainable development through:

Enhancing the benefits while mitigating the negative impacts both when mining is taking place and subsequently as well as

Improving stakeholder participation in the management of the resources.

This is however easier said than done…

11


Sustainable development

Sustainable Development is

developing in such a way that

future people will have

“enough and as good”*

* Phrase from John Locke, 1690

12


Sustainable Development Development that :

meets the needs of the present

without

compromising the ability of future generations to meet their own needs

a) How much into the future

b) Are we underplaying the role of technology?

13


2014 2025 2050 2075 2100

D = Development : e.g. Development of a Mine

Must we sacrifice just as much for people in the far future as for people in the near future?

D

Why must we leave as much and as good for future people? What if that requires us to sacrifice money, work, time, satisfaction, etc.

How Much Into the Future ?

14


Two Views?

Discounters of Future People

Defenders of Future People Earth’s resources belong to all, no matter when they “arrive”. Locke (1690)

We have borrowed the earth from our Children…. - Can’t create new land - Conservation of biodiversity - Population control

Discounters of Future People We should sacrifice “less for them” – not “should totally dismiss”.

Nearer future people are closer relatives of ours, so we have stronger obligations to them.

Future people will be richer than us; poor don’t have to help rich.

They will have technology we can’t predict. Development

4



Rational Development will…. Stay within the capacity of ecosystems to absorb change.

Provide an adequate standard of living for those who do not have enough, in area of influence.

Create conditions in which individuals and groups can develop their potential, enrich lives, advance technology.

Develop systems of governance which promote and sustain these goals.

17


Key Principles

18

1. Leadership

2. Collaboration

3. Corporate Social Responsibility

4. Sustainability

5. Communication

6. Community Engagement

The Miner of the 21st Century must know:

1. How to monitor emissions

2. How to protect the environment

3. How to restore a mine site back to other uses

4. How to get along with the neighbours

Mining today is a balance of three elements:

1. Techno-economic issues

2. Environmental issues

3. Socio-political issues


– plan for the neighbourhood

– protect the environment

– plan for closure

– mitigate/restore the site

– sustain the communities

– sustain the company

Before mining

During operation

After operation

At all stages…

1. Land degradation. 2. Deforestation. 3. Subsidence. 4. Air pollution. 5. Water pollution. 6. Soil Pollution.

Abandoned Mine X

Planned Closure √ Sustaining the Community – alternate employment

Rigorous Environmental Impact Assessment process

19


Key Challenges

Setting up and expansion of mining operations

Increase in workforce to support expansion

Accommodating the workforce – impact on forest areas

Impact of Operations on the environment

Balancing Local and National interests – local livelihood v/s mineral for development

Immediate, short, medium and long term management issues.

Mine Closure….

20



Urgency for Sustainable Development Globalization means that many problems are no longer simply local or

national concerns.

Growing evidence that ecosystems are seriously out of balance, posing new and poorly understood risks.

The problem of poverty is inseparably linked with global ecological problems which cannot be solved unless people have a stake in the outcome and the resources to manage the problems.

Governance systems have not yet emerged for the reality of a globalized economy.

Increased awareness and expectations flowing from the new world information regime.

22


Rewards of Sustainable Development

• Production consumption and living patterns consistent with ecological balance.

• Dramatic reduction of the numbers of people living in poverty.

• Greater opportunity to develop individual and group potential.

• More open, cooperative, transparent and consensual systems of governance.

23


Sustainable Development

is Difficult

But the Rewards are Immense

[email protected]

24

Technology

Sustainable Development in the Mining Industry - KeyNote Presentation at the Mining Engineers' Association(MEAI) Conference, Feb 2014