The Impact of Mining Industry on Environment in The Context of Sustainability and Human Behavior

Gold mining is a global business that operates on every continent except Antarctica, extracting gold from various types and scales of mines. Over the years, gold mining operations have proliferated worldwide, moving away from the supply concentrations of four decades ago when the majority of gold came from South Africa. As of 2016, China emerged as the largest gold producer, accounting for 14% of the total annual production. Other significant regions include Asia, which produces 23% of newly mined gold, Central and South America at 17%, Africa contributing 19%, and the CIS region at 14%. Although mine production levels have significantly increased over the past decade, substantial new discoveries are becoming increasingly rare, and production levels are constrained. Gold mining does not react quickly to price changes, making it a complex industry to navigate.

India has been a consistent source of global gold demand, importing nearly 1,000 tons in favorable years. The World Gold Council is optimistic about the growth potential of gold production in India, which currently has a low base. In fact, projections suggest that gold production could double this year. Deccan Gold Mines, the only gold explorer listed in Mumbai, plans to commence production at its Ganajur project in Karnataka, expecting annual output to exceed 50,000 ounces. However, the company faced a loss of 96,250,000 in its profit and loss account for 2017, with cash flows from operating, investing, and financing activities reported at 1,449,000 and 8,798,000 respectively. As of March 31, 2017, cash and cash equivalents stood at 77,749,000.

Environmental Impact of the Mining Industry

The mining industry significantly impacts local communities, both positively and negatively. While the positive effects, such as employment opportunities and community development projects, are essential, they cannot offset the potential negative consequences. The detrimental effects of mining on the environment include water pollution, loss of biodiversity, air pollution, soil erosion, and the formation of sinkholes. Mining methods directly affect air quality by releasing unrefined materials into the atmosphere when mineral deposits are exposed. The removal of soil and vegetation, coupled with road traffic and wind erosion, leads to airborne particles that can contain toxic substances like lead, arsenic, and cadmium. These pollutants adversely affect human health, leading to respiratory illnesses such as emphysema.

Water pollution is another significant consequence of mining, resulting in metal contamination, increased sediment levels in streams, and acid mine drainage. Sources of water pollution from mining activities include processing plants, tailing ponds, waste disposal areas, active or abandoned surfaces, and haulage roads. Biodiversity also faces substantial threats due to mining, as large-scale habitat loss affects vegetation, animals, and microorganisms. Changes in temperature or pH levels resulting from mining can disrupt the livelihoods of communities living nearby. Endemic plant and animal species, which are particularly sensitive to environmental conditions, are at high risk of extinction due to habitat disruption.

Gold Mining and Sustainability on a Global Scale

In response to public concern over the environmental impacts of mining, the global mining industry has been shifting towards more sustainable practices in recent years. Several fundamental issues regarding sustainability must be addressed in gold mining, as it is commonly viewed as a finite and non-renewable resource. Long-term production trends indicate declining ore grades, increasing solid waste, and the prevalence of open-cut mining methods. Key sustainability issues include water usage, energy consumption, chemical usage, and pollutant emissions, collectively referred to as resource intensity. Understanding the relationship between gold production trends and resource intensity is crucial for addressing future sustainability challenges.

To promote sustainability, mining companies must adopt a shared value perspective, considering the full range of financial, social, and environmental factors that impact long-term business viability. Collaborating with various stakeholders will be essential to delivering shared value to companies, governments, industries, and communities, facilitating success in a circular economy. In contrast to the traditional linear economy—where products are manufactured, used, and ultimately discarded—a circular economy aims to minimize waste through constant product repair and material reuse.

Corporate Social Responsibility and Human Behavior in the Mining Industry

Corporate Social Responsibility (CSR) reflects a business's commitment to contributing to sustainable economic development and improving the quality of life in local communities. The nature and importance of CSR have evolved significantly in recent decades, influenced by practical experience and changing international business standards regarding ethics, social responsibility, and sustainable environmental development. While opposition to CSR exists, its adoption faces various corporate and practical challenges.

Effective CSR programs in mining involve actionable steps taken by governments, communities, and companies. These initiatives go beyond legal obligations to create added value for society. The mining industry plays a crucial role in providing inputs for other sectors essential for sustaining the well-being of populations and global economic functions. However, mining can also generate societal and environmental impacts that may compromise public acceptance of the sector.

The dual role of mining in society makes it imperative to improve sustainability performance, a significant objective for both the industry and policymakers aiming to enhance sustainable raw material supplies. The social impacts of mining are assessed using various indicators and targets, with land use and environmental impacts being particularly crucial. These factors directly affect human health and rights, underscoring their importance in the mining sector.

In conclusion, while the mining industry contributes significantly to economic development, it also poses considerable environmental and social challenges. A commitment to sustainability and responsible practices is essential for the industry's future viability and its acceptance by the communities it affects.

References

• World Gold Council. (2016). Gold Demand Trends.
• Deccan Gold Mines. (2017). Annual Report.
• International Council on Mining and Metals. (2018). Mining and Biodiversity: A Collection of Case Studies.
• Corporate Social Responsibility Initiative. (2019). CSR in the Mining Industry: Trends and Challenges.