1. CHAPTER 16.2
Mining and Sustainability
R. Anthony Hodge
INTRODUCTION address not only the what, or the substantive part of human
The 1987 publication of the report, Our Common Future by action, but also the how, or the process part. In other words, in
the United Nations (UN) World Commission on Environment the practical application of sustainable development concepts,
and Development (WCED), brought the concept of sustainable not only what we do is important but how we do it.
development into the limelight. Chaired by the former Prime Thus, the ideas of sustainable development and sustain-
Minister of Norway, Gro Harlem Brundtland, and following ability are different but synchronous. Sustainability is a more
hearings held across the world, the commission proposed an general term that captures the idea that we need to maintain
agenda for world development that would enhance security certain important aspects of the world over the long term.
and reduce North–South disparities. It would be development Sustainable development is the human or action part of this
“which meets the needs of the present without compromis- set of ideas: As a society, we want to make choices about our
ing the ability of future generations to meet their own needs” actions that allow us to provide for the present without under-
(WCED 1987). mining the possibility for future generations to provide for
Since then, a rich debate has ensued about what this themselves.
means in practical terms. Though many other sets of words Together, these ideas are very appealing. However, their
have been suggested for defining the phrase sustainable devel- translation to practical action remains much debated. This is
opment, the Brundtland Commission definition has stood the not surprising. Human society is complex. There are about
test of time and remains the anchor. For a rich discussion, 10,000 cells in the standard industrial classification—our way
see the “definitions” portal of the International Institute for of classifying human activities within the market economy.
Sustainable Development, or IISD (SD Gateway n.d.) This does not account for many more activities outside the
In recent years, the word sustainability has also found its market economy. There are about 200 countries across the
way into common use. The idea is simple. Sustainability is the world, and the global ecosystem is complex and not fully
persistence over a long time—indefinitely—of certain neces- understood.
sary and/or desired characteristics of both human society and For its part, the mining, minerals, and metals industry has
the enveloping ecosystem (Robinson et al. 1990). These char- been a particularly active locus of sustainability-related policy
acteristics range from primary needs such as air, water, food, and practice innovations because
clothing, shelter, and basic human rights to a host of condi-
• The potential implications—both positive and negative—
tions that would collectively be called quality of life, not only
of mining activities and the minerals and metals that
for people but for other life forms as well.
result are significant;
It is here that the definitional issue becomes difficult
• Many interests are touched by mining;
for some, because the choice of which characteristics are to
• The role of many of these interests in decision making is
be sustained and the degree to which they will be sustained
growing (e.g., communities and indigenous people);
depends on the particular values that are applied. In turn, these
• The nature of contemporary communications systems has
depend on who is doing the applying. In other words, it is not
brought the often dramatic nature of mining operations
a closed definition. What a company CEO chooses as impor-
into the public eye; and
tant may be different than a politician, doctor, or librarian;
• Industry, governments, civil society organizations, and
what a Mexican chooses may be different from, for example,
the public, in general, are all anxious to ensure mining
a Tanzanian or Australian. Because of these potential differ-
makes a positive contribution that is fairly shared.
ences, a fair and effective process of interaction and seek-
ing consensus is critical to the practical application of these Importantly, the concept of sustainable development has not
ideas. Herein lies the rationale for why it is essential to always disappeared like so many “flavor of the month” ideas. Rather,
R. Anthony Hodge, President, International Council on Mining & Metals; Professor, Mining & Sustainability, Queen’s University, Kingston, Ontario, Canada
1665

2. 1666 SME Mining Engineering Handbook
it has grown in prominence and is now deeply entrenched in of the world’s largest mining companies took an unprec-
legislation, government, and corporate policy and practice. edented step.
Sustainability is the subject of university curricula, given as a Working through the World Business Council for
label to vice presidents and departments of mining companies, Sustainable Development, they initiated the Global Mining
incorporated into the names of service providers, and included Initiative (GMI). As part of GMI, they commissioned the
as an element of key performance indicators. International Institute for Environment and Development
This chapter provides an overview that links the ideas (London) to undertake a global review that would lead to the
of sustainable development and sustainability to the mining, identification of how mining and minerals can best contribute
minerals, and metals industry. To do so, a particular template to the global transition to sustainable development. The result-
is used for organizing the many interlinked bodies of knowl- ing project, Mining, Minerals, and Sustainable Development
edge that must be brought together: the Seven Questions to (MMSD), sparked a large and rich literature, including the
Sustainability (7QS) (MMSD North America 2002). project’s final report, Breaking New Ground: Mining, Minerals
This template is pragmatic though much informed by the and Sustainable Development (MMSD 2002).
theoretical foundation of systems theory. It recognizes that to Before the GMI was completed, participants moved
bring sustainability ideas into practice for the mining, min- to create an organization that would carry the resulting rec-
erals, and metals industry, the hard (well-defined) and the soft ommendations forward to implementation. Thus, in 2001
(ill-defined) systems of the real world must both be addressed, and building on the foundation established by ICME, the
as well as the objective (independent of judgment) and the International Council on Mining and Metals (ICMM) was
subjective (dependent on judgment). In doing so, all must be created. Many of the ideas summarized in this chapter have
treated, if not exactly scientifically (which is not always pos- emerged from or been refined through subsequent work of
sible), at least in a way that is characterized by intellectual ICMM.
rigor (see discussion of systems theory and sustainability in Almost simultaneously with these events, NGO pressure
Hodge 1995 and 1996). The 7QS template weaves together on the World Bank Group led to the initiation in 2001 of a
ideas from many disciplines but recognizes that deeper explo- multi-interest review of the group’s involvement in extrac-
ration is often warranted depending on site-specific condi- tive industries. The Extractive Industries Review sought to
tions. In this context, the objective of this chapter is to open a test whether or not industry projects could be compatible with
door as a first step to practical application. the World Bank Group’s goal of sustainable development and
poverty reduction. In its final report, Striking a Better Balance
MINING AND METALS INDUSTRY RESPONSE TO (Salim 2003), the review concluded in the affirmative but only
SUSTAINABLE DEVELOPMENT if three enabling conditions were in place:
The 1970s and 1980s were a time of reaction to dramatic
1. Public and corporate governance advocacy for the poor,
change for mining. Echoing increasing concern for the envi-
including proactive planning and management to maxi-
ronment across society, the late 1980s saw a number of lead-
mize poverty alleviation through sustainable development
ing mining companies publish “state-of-environment” reports
2. Much more effective social and environmental policies
related to their operations. Taking another important step, 30
3. Respect for human rights
leading mining and metals companies from across the world
came together in 1991 to create the International Council on The resulting refocused World Bank policy emphasizes
Metals and the Environment (ICME). ICME would give the strengthened governance and transparency, ensuring that ben-
industry an international voice on environmental matters. efits reach the poor, mitigating environmental and social risks,
Also in the early 1990s, many of these same companies protecting human rights, and promoting renewable energy and
joined with senior governments, labor unions, aboriginal efficiency to combat climate change. This refocusing has in
peoples, and environmental nongovernmental organizations turn influenced mining approaches to implementing sustain-
(NGOs) in a broad review of mining practices in Canada. able development on the ground. In sum, this process has
The Whitehorse Mining Initiative turned out to be a precur- served to elucidate and reinforce the concepts of sustainable
sor of a number of initiatives convened to bring sustainability development addressed in this discussion.
ideas to practical application around the world. The resulting
Leadership Accord (Whitehorse Mining Initiative Leadership MINING’S CONTRIBUTION TO SUSTAINABLE
Council Accord 1993) is a summons to change, framed within DEVELOPMENT
the context of a commitment to social and environmen- At the base of the interlinked ideas of sustainability and sus-
tal goals. It seeks a sustainable mining industry within the tainable development lies the simple idea that any human
framework of an evolving and sustainable society. The ideas activity—including mining—should be undertaken in such a
it champions and the multi-interest process it uses elegantly way that the activity itself and the products produced together
capture sustainable development in practice. provide a net contribution to human and ecosystem well-being
For the mining industry, the decade of the 1990s was over the long term.
a bleak period. Commodity prices dropped while public From an engineering design perspective in general and a
criticism skyrocketed, much driven by a civil society that mine design perspective in particular, this simple idea gives
was quick to take advantage of newly available and quickly rise to an overarching two-dimensional design criterion. That
evolving computer-based communications. As a whole, the is, mining activity (or any human endeavour for that matter)
industry found itself under attack and in a defensive pos- should be designed to achieve (through the activity itself and
ture. Its social license to operate was threatened (though the products that result) a net contribution to both human and
that particular label was to come later). In the late 1990s and ecosystem well-being over the long term. The achievement of
faced with growing concern about access to capital, land, design success should, in turn, be tested against this design
and human resources, the chief executive officers of nine criterion.

3. Mining and Sustainability 1667
Ten Principles for Sustainable Development Seven Position Statements
1. Implement ethical business practices and apply 1. Mining and protected areas
good corporate governance.
2. Mining partnerships for development
2. Integrate sustainable development in corporate
3. Climate change
decision making.
4. Mining and indigenous peoples
3. Uphold fundamental human rights.
5. Mercury risk management
4. Manage risks based on sound science.
6. Transparency of mineral revenues
5. and 6. Improve environment, health, and safety
performance continuously. 7. Mineral resources and economic development
7. Conserve biodiversity and contribute to integrated
land-use planning.
8. Encourage a life-cycle approach to materials
management.
9. Contribute to community development.
10. Publicly report, independently assure, and engage
openly and transparently.
Figure 16.2-1 Principles and position statements that comprise the sustainable development framework of ICMM
Thus, the focus here is not on how mining can be concentrating and refining. However, in an overarching sense,
sustainable—any mining project as a discrete activity cannot the ideas of sustainability and sustainable development call
continue indefinitely—but on how mining, minerals, and met- for both human and ecosystem well-being to be maintained or
als can contribute to sustainable development. This is a con- improved over the long term. Doing one at the expense of the
ceptual shift away from a singular analysis and mitigation of other is not acceptable because, either way, the foundation of
impacts to a more comprehensive analysis and encouragement life is undermined.
of contribution.
The focus on contribution is a tougher but fairer approach. PRINCIPLES AND FRAMEWORKS
It demands consideration of both the good and the bad. (The The nature of applied sustainability is evident from the many
idea that the mining and metals industry should be designed attempts to articulate sustainable development principles. For
for and tested against its contribution to the well-being of peo- a listing of more than 100 such principles, see the the “prin-
ple and the environment—to sustainable development—was ciples” portal of the IISD (n.d.). In short, there is no one-size-
first proposed by Professor Robert Gibson in 2000 and later fits-all approach to defining, framing, and characterizing the
taken up in development of the 7QS template [MMSD North ideas of sustainable development and sustainability. One set
America 2002; Hodge 2004].) That a mining activity might of principles of particular relevance to the mining industry is
be challenged to make a positive contribution to the ecosys- the 10-part set developed by the ICMM, along with its com-
tem over the long term may seem a tough, even impossible plementary set of position statements. ICMM brings together
challenge to some. However, articulating explicit engineering 19 of the largest mining companies of the world and, on an
design criteria in this way sets a design objective that is essen- annual basis, member companies assess performance against
tial if mining and metals-related activity and the resulting these commitments using a procedure that includes third-party
products are to achieve the sustainable development contribu- independent assurance (ICMM 2010a).
tion that is being demanded by society. The ICMM principles and position statements as of 2010
Application of these ideas is not simply a greening phe- are summarized in Figure 16.2-1. Just as many definitions and
nomenon; it is related as much to well-being and security of principles have been proposed, so too have many organizing
people as the environment. And, interestingly, the mining frameworks been designed to bring theory to action. A com-
industry’s capacity to deal with the environmental aspects parative analysis of about 30 such characterizations or frame-
is currently stronger than its ability to address the full range works is found in Hodge 1997.
of social aspects. This is likely because many environmental Almost three decades before the popularization of sustain-
issues can be addressed through hard scientific and technical able development ideas, geographer Walter Firey pointed out
solutions, whereas social issues often require soft behavioral- that three broad groupings of knowledge were pertinent to natu-
type solutions, which can be much harder to design and imple- ral resource use (Firey 1960; and see discussion in Hodge 1997):
ment—and which often fall outside the engineer’s training.
1. Ecological (environmental)
These ideas also veer sharply away from thinking in
2. Ethnological (social/culture)
terms of a trade-off between human and ecosystem well-
3. Economic
being—it is not a balancing act that pits people against the
environment. There are obviously many small trade-offs in In the late 1980s, Firey’s three-part model of natural resource
any practical application: between interests, between compo- use was adopted by a number of those attempting to opera-
nents of the ecosystem, across time, and across space. This tionalize the concept of sustainable development (Mitchell
is particularly the case for mining and the related process of 1991). Since then, the three-part environmental–social–

4. 1668 SME Mining Engineering Handbook
As with all sustainable development frameworks, a broad
Components Results
range of topics is captured. However, this example is particu-
• Environmental
larly useful for another reason. It is clear that the simultaneous
treatment of all objectives sets up tensions that must ulti-
• Social mately be resolved: In a comparative analysis of alternatives,
— Cultural • Human Well-being
different value sets might well judge performance differently
— Political
— Health
• Ecosystem Well-being and, at the same time, place greater weight on certain objec-
tives. This is a poignant example of applied sustainability in
• Economic
— Institutional practice. Here again the process of finding common ground
can be seen as critical to practical implementation of sustain-
able development ideas.
Capitals: Natural, Built, Human, Knowledge, Institutional
From a different but important perspective, as part of
the World Bank Group response to the Extractive Industries
Figure 16.2-2 Different characterizations of sustainable Review, the International Finance Corporation (IFC) prepared
development and adopted a sustainability framework that consists of (1)
the Policy on Social and Environmental Sustainability, (2) the
Policy on Disclosure of Information; and (3) a set of perfor-
economic characterization of sustainable development has mance standards on social and environmental sustainability.
gained broad usage. A significant limitation of this approach, In its performance standards, the IFC addresses eight
however, arises because of the lack of common treatment for topics:
the social element.
1. Social and environmental assessment and management
Many other frameworks have also emerged that make
systems
sense for the particular application: population health, healthy
2. Labor and working conditions
communities, sustainable communities, foreign aid, urban
3. Pollution prevention and abatement
design, agriculture, forestry, fisheries, indigenous peoples’
4. Community health, safety, and security
needs, and so forth. From one particularly important perspec-
5. Land acquisition and involuntary resettlement
tive, the World Bank Group has used the lens and insights of
6. Biodiversity conservation and sustainable natural
economics to offer a “capitals” model to apply sustainable
resource management
development ideas: natural, built, human, knowledge, and
7. Indigenous peoples
institutional. Figure 16.2-2 is a synthesis that brings a number
8. Cultural heritage
of the alternatives together.
Another perspective that offers practical insight comes Here again is another definition of what is appropriate to
from an analysis of mine closure options that was undertaken include in addressing application of sustainability concepts to
for the Faro mine project in the Yukon Territory, Canada mining. The IFC sustainability framework is currently under
(Hodge and Merkhofer 2008). In this case, a sophisticated review with the expectation that a revised package is targeted
multi-attribute utility analysis—driven by a multistakeholder for release in 2011. The IFC has also published a number of
process—was used to assess the alternatives. Multi-attribute Good Practice Notes/Handbooks (IFC 2006) relevant to the
utility analysis is a form of decision analysis in which a set of practical issues of sustainability. Most importantly, the per-
objectives is articulated and each alternative’s performance is formance standards along with the World Bank Group’s
assessed against those objectives. The underlying principle is Environmental, Health, and Safety Guidelines form the basis
that the alternative that best performs against the objectives of the Equator Principles, which have been adopted by 67
is the best one. The foundation of this kind of analysis is the lending institutions worldwide (the Equator Principles lend-
articulation of objectives that can be translated to a scale, which ing institutions), many of whom provide financing for min-
can be assessed in terms of a direction (e.g., more is better, less ing activities. The Equator Principles are a voluntary set of
is worse) and magnitude (e.g., how much better or worse). standards for determining, assessing, and managing social and
The rigorous scaling and multi-interest process of assess- environmental risk in project financing. They are considered
ing and judging are complex. In the Faro analysis, two time the financial industry gold standard for sustainable project
horizons were used in the assessment: (1) short, 15–40 years; finance.
and (2) long, 500–1,000 years. Of relevance to this discus- Another important framework is the Global Compact, a
sion is the framework of closure objectives, because it was principle-based framework for businesses, which was estab-
set to reflect an overarching government policy of sustainable lished by the United Nations in 2000. The Global Compact is
development. Eight objectives were used for assessing closure the world’s largest voluntary corporate citizenship initiative
alternative at the Faro mine (Yukon Territory, Canada): and states 10 principles in the areas of human rights, labor, the
environment, and anticorruption. Members are committed to
1. Maximize public health and safety
aligning their operations and strategies with the 10 principles
2. Maximize worker health and safety
(United Nations Global Compact n.d.).
3. Maximize restoration, protection and enhancement of the
For their part, the Millennium Development Goals are
environment
eight international development goals that all 192 UN member
4. Maximize local socioeconomic benefits
states and at least 23 international organizations have agreed
5. Maximize Yukon socioeconomic benefits
to achieve by the year 2015:
6. Minimize cost
7. Minimize restrictions on traditional land use 1. Eradicating extreme poverty and hunger
8. Minimize restrictions on local land use 2. Achieving universal primary education

5. Mining and Sustainability 1669
1a 4a
Suspension or Temporary
Termination Closure
1 2 3 4 5 6
Detailed Site Operation Final Closure
Exploration Investigation, 2–100 years and Postclosure
Construction
1–10 years Design, and progressive Decommissioning in perpetuity
Estimating rehabilitation 1–5 years
Typically 1–3 years
2a
Suspension or
Termination Mine life cycle 1960s
Mine life cycle 1970s +
Mine life cycle 2000
Source: Adapted from John Gadsby (personal communication) and MMSD North America 2002.
Figure 16.2-3 Mine project life cycle
3. Promoting gender equity and empowering women society to walk more lightly on the earth. For example, all the
4. Reducing child mortality strategies needed for development, transmission, and use of
5. Improving maternal health renewable energy sources depend on mined metals and miner-
6. Combating HIV/AIDS, malaria, and other diseases als. Similarly, strategies to move to a carbon-reduced econ-
7. Ensuring environmental sustainability omy are only possible through creative uses of mined minerals
8. Developing a global partnership for development and metals.
Thus, the sustainability-related focus is now appropriately
Each of the approaches to capturing what sustainability
on mining as an activity and its implications for the communi-
means in terms of principles and frameworks is useful for the
ties and ecosystem within which minerals are embedded. At
relevant driving application. There is no single panacea that
any given site, whether a mining, smelting, refining, primary
applies in all cases. However, taken together they capture the
metals manufacturing, or recycling operation, there is a begin-
breadth of issues and topics that must be considered.
ning and end: No mining/mineral activity can be expected
to have an indefinite life span. However, the implications of
NONRENEWABLE NATURE OF MINING, MINERALS,
that activity (not only as a direct result of the activity but also
AND METALS
through the product that is produced) go on indefinitely.
Much of the literature through the 1980s and 1990s focused
In that sense, mining/mineral activities serve as a bridge
on renewable resource management and the idea of living off
to the future. The sustainability challenge is to ensure that the
the interest of a continuing core stock. For some, nonrenew-
implications of mining activities and the products that result
able resource-related activities such as mining simply did not
are net positive for people and ecosystems over the long term:
fit into the sustainability concept, although the hat might be
It is the well-being of human society and the enveloping eco-
tipped toward recycling and reuse of nonrenewable materials
systems that need sustaining. Limited-term mining projects
as helpful strategies.
can serve sustainability objectives if they are designed and
One result of this early emphasis was the marginaliza-
implemented in ways that ensure they meet that challenge.
tion, to a great extent, of concerns and perspectives about non-
renewable resources. Interestingly, the fact that minerals are
BOUNDARY CONDITIONS FOR APPLYING
nonrenewable (or stock) resources and, in some sense, fixed
SUSTAINABILITY TO MINING
in absolute quantity turns out to be relatively unimportant
Bringing sustainability ideas into mine design has a signifi-
from a sustainability perspective—at least at the macro scale
cant impact on mine design boundary conditions. Four aspects
(MMSD North America 2002). The nonrenewable character
of boundary conditions apply in this case, each of which
of minerals received a great deal of attention in the literature
has implications for setting the time and space dimensions
from 1950 into the 1970s. However, the long statistical record
and helps to identify the system components that must be
of continued output at relatively constant prices, together with
considered:
growing understanding first of environmental issues and then
of sustainability, has served to deemphasize this concern. At 1. Mine project life cycle (Figure 16.2-3)
the same time, recognition is growing that the products of 2. Mineral life cycle (Figure 16.2-4)
mining are needed both to provide for the world’s popula- 3. Time horizon (Table 16.2-1)
tion and, even more so, to support approaches that will allow 4. Communities of interest

6. 1670 SME Mining Engineering Handbook
Table 16.2-1 Perspectives on the time horizons for applied
sustainability
Exploration
Perspective Typical Time Horizon
Waste, Environmental, and Social Stress and Restoration
Financial/tax cycle Annual or quarterly
Reserves Election cycle 2, 4, or 5 years
Standard engineering design life Up to 50 years
Mining and Milling Social time horizon (seven generations) Up to 200 years
Environmental time horizon 200 to 10,000+ years
Concentrate Source: Adapted from Freeze 1987.
Primary Smelting Secondary Smelting
and Refining and Refining and civil society organizations—and is not yet fully under-
stood or appreciated.
The fourth and final aspect of defining the boundary con-
First Products ditions for applying sustainability relates to identifying the
Recycle
communities of interest that must be considered in the mine
Manufacturing
design, operation, and closure process. In times past, a com-
pany and government would simply come to a bilateral agree-
ment on conditions that would govern mine activities. Today
Final Products: that is no longer the case. Many interests play active roles, and
End Uses the definition of those roles itself requires great care and atten-
tion. Interests important to mining are
Figure 16.2-4 Mineral life cycle • Industry (investors, employees, industry associations,
other companies);
• Support services (financial, consultants, contractors,
First, the mine design process must take into consider- suppliers);
ation the full life cycle of a mine project. Many of the greatest • Government (federal, state/provincial, county/regional
problems facing the mining industry today stem from the fact district, local);
that this has not been done in the past. In the 1960s, the mine • Indigenous people and their organizations;
design process was limited to the end of operations. In the • Organized labor;
1970s and driven by rising environmental consciousness, the • Mining-affected communities (by economic, social, and/
need for mine reclamation gave rise to concerns about clo- or environmental [e.g., watershed] dependency);
sure, which at the time focused on cleaning and grooming a • NGOs or civil society organizations; and
site, with revegetation being a key activity. It is only in the • Academic, learning, and research and development sup-
last decade that the realization has set in that a postclosure port (universities, technical schools, private and public
phase can in some cases extend indefinitely because of the research centers).
geochemical processes at work in waste rock piles, tailings,
and exposed workings. These give rise to potential liabilities SEVEN QUESTIONS TO SUSTAINABILITY
that must be factored into annual financial statements and the One product of the mining industry’s MMSD project was a
calculation of share value. template aimed at assessing the compatibility between mining
Second, the mine design process must consider the min- operations and sustainability criteria (MMSD North America
eral life cycle. The mining industry has come to learn that it 2002; Hodge 2004, 2006). The 7QS offers seven queries for
must not only consider the production of minerals and met- consideration in the mine design and assessment process. Each
als but also their use. Too often in the past, the mine design question is the interrogative form of a goal statement. Seen in
process has limited its perspective in time and space to the another light, these seven goals define the application of sus-
immediate mine operation. In fact, many significant implica- tainability concepts. The technique of using the interrogative
tions extend across space and time in a kind of ripple effect form in this way is drawn from the accounting profession’s
(Figure 16.2-5). Some of these—both positive and negative— approach to auditing and assuring the validity and accuracy of
are significant. And all must be taken into consideration to financial statements.
ensure that the full contribution is accounted for. The focus on applying the 7QS approach is not on how a
Third, the time horizon to be used needs particular men- given mine can be sustainable—mining as a discrete activity
tion. Table 16.2-1 lists different perspectives on the time cannot continue indefinitely—but on how the process of min-
horizons relevant to applied sustainability. This element of ing and the products it produces can best contribute to sus-
the boundary conditions for the mine design, operation, and tainable development. Thus it enshrines the conceptual shift
closure processes has changed dramatically in the last few away from analysis and mitigation of impacts to analysis and
decades. The mine project life cycle shown in Figure 16.2-3 encouragement of contribution.
illustrates how the time horizon evolved after the 1970s to The seven questions are summarized in Figure 16.2-6. In
eventually take into considerations the postclosure phase, this section, the 7QS template is used to systematically orga-
which can sometimes stretch environmental and social obliga- nize the parts of applied sustainability, rendering their applica-
tions of mining operations into perpetuity. This is new terrain tion more practical. (The material presented in this section is
for all interests—industry, government, host communities, modified from MMSD North America 2002.) In applying this

7. Mining and Sustainability 1671
Direct Outputs
Benefits and
Costs to People
(Employees and their
families, shareholders
and investors,
subcontractors, suppliers,
community, region, nation,
future generations)
Indirect Outputs
Indirect Inputs Direct Inputs
(Benefits and costs to
(Benefits and costs (Stakeholder
Metals, Minerals, downstream consumers,
to upstream engagement, labor, Metals and Minerals
and Related operations, communities,
consumers, operations, land, water, energy, Industry
Products and ecosystems because
communities, and feedstocks, reagents,
of enhanced supply of
ecosystems because of and supplies)
metal- and mineral-linked
demand for inputs)
commodities and products)
Benefits and
Costs to the
Environment
(Environmental stress
and restoration,
chemical, physical,
biological)
Figure 16.2-5 Ripple effect
template, attention must be paid to the compilation and analy- 2. Ends. Questions 2 (people) and 3 (environment) focus on
sis of both quantitative and qualitative insights. Ultimately in the end results that must be achieved and against which
assessing effectiveness, efficiency, and progress, four distinct the success of any project must be tested—human and
steps are essential (Hodge 2007): ecosystem well-being over the long term.
3. Means to achieving ends. Questions 4 (economy), 5 (tra-
1. Drawing the qualitative insight that comes through under-
ditional and nonmarket activities), and 6 (governance and
standing the story that is relevant to the object(s) of the
institutions) cover the various means of achieving human
assessment
and ecosystem well-being.
2. Undertaking and compiling the relevant quantitative
4. Feedback. Lastly, Question 7 (synthesis and continuous
measurement
learning) provides the feedback mechanism that allows
3. Applying a systemic approach to synthesizing, setting
managers and others to ensure accountability and to learn
criteria, and judging significance
from the inevitable mistakes, adapt and improve designs
4. Effectively communicating the results to different key
as necessary, and celebrate the successes, giving credit
interests
where due.
The 7QS approach encompasses four categories of insight:
Effective Engagement
1. Relationships. Question 1 in Figure 16.2-6 (engagement)
If relationships with those important to a mining/minerals/
deals with the state of relationships that are important
metals project are unhealthy, the chance of achieving a suc-
to any given project or within any region that is being
cessful project—one that contributes to sustainability—is
assessed (see Thomson and Joyce 2000 for a succinct dis-
greatly reduced. Although this is a simple idea and one that
cussion of this topic). A key issue facing many projects is
is key to many successful nonmining businesses around the
the sense that the distribution of costs, benefits, and risk
world, application of this idea is only now gaining momentum
is unfair. This sense can cause stakeholder reactions that
across the industry.
range from feelings of discontent to outright civil disobe-
At any point in time, mining activities must align with
dience and damage to persons and property. Although
the norms and values of society as a whole. When it does, a
detailed procedures will vary from site to site, the 7QS
social license to operate is the result—an unwritten approval.
approach calls for addressing this issue early and in a way
If that alignment is not apparent, the social license will be
that facilitates constructive relationships achieved over
challenged. Within the mining industry, elucidation of this
the full project life cycle.
concept has been led by Ian Thomson and Susan Joyce (2008).

8. 1672 SME Mining Engineering Handbook
1. Engagement
Are engagement processes
in place and working effectively?
2. People
Assessing for Will people’s well-being
Sustainability be maintained or improved?
3. Environment
7. Synthyesis and Is the integrity of the environment
Continuous Learning assured over the long term?
Does a full synthesis show that the
net result will be positive or negative in 4. Economy
the long term, and will there be Is the economic viability of the project or
periodic reassessments? operation assured, and will the economy
of the community and beyond be
6. Institutional Arrangements
better off as a result?
and Governance
Are rules, incentives, programs, and
capacities in place to address project 5. Traditional and Nonmarket Activities
or operational consequences? Are traditional and nonmarket activities in
the community and surrounding area accounted for
in a way that is acceptable to the local people?
Courtesy of the International Institute for Sustainable Development.
Figure 16.2-6 Seven Questions to Sustainability
Thomson and Joyce (2006) have also played a lead role in
recognizing the central role of the explorationist and junior
companies (that are the first to enter an area) in either creating Engagement
lasting positive relationships or a climate of long-term tension.
Working to entrench such acceptance is an insurance policy
that includes both the ability to recognize meaningful change
and the ability to consider accommodating these changes. Dispute Reporting Informed
Engagement Adequate
Building a constructive engagement with the local com- Processes
Resolution and
Resources
Voluntary
munity involves a series of challenging steps to (1) identify key Mechanism Verification Consent
interests, (2) learn how to listen to each interest’s concerns amid
all the noise of existing pressures, and (3) develop a way for- Courtesy of the International Institute for Sustainable Development.
ward for mining and metals operations based on mutual respect, Figure 16.2-7 Assessing the effectiveness of relationships
trust, and integrity. It requires effort and resources, sometimes between operations and other interests
just as much as many technical aspects of a project. And today,
with the changing and growing role of many interests in society,
if care is not taken to build the needed relationships, implica- A particularly important issue for the mining industry
tions for proceeding effectively and efficiently on a project can is building effective relationships with indigenous people. A
be seriously undermined. At worst, physical conflict can occur. useful overview of issues relevant to this topic can be found
A leading example of addressing community relationship in Render 2006. A current perspective on how to best achieve
issues has been completed by Newmont Gold Corporation effective working relationships with indigenous people is pro-
(2009). In this case, concerns over conflict led an ethical vided in ICMM 2010b. This is especially relevant for countries
investor to ask for a complete review of the relationships where the legal system does not provide strong protections for
between Newmont operations and its host communities. The indigenous peoples. In the last decade, indigenous peoples’
initial work, completed over 2 years, included an independent concerns have led to the emergence of special impact benefit
review panel. Building on existing and past attempts to build agreements that formally entrench special arrangements for
effective relationships, it led to a series of company–host com- participation. A current tool kit addressing such agreements is
munity interactions that, in turn, changed Newmont’s own now available (Gibson and O’Faircheallaigh 2010).
internal management system. One result was that, in 2010, Considerations important to building effective relation-
Newmont was ranked 16th in Corporate Responsibility mag- ships are shown in Figure 16.2-7. Table 16.2-2 is modified from
azine’s 11th Annual List of 100 Best Corporate Citizens in the 7QS work and lists the ideal answer to the question,“Are
the United States (Corporate Responsibility 2010), the only engagement processes in place and working effectively?,”and
mining company in the top 20 and joining such businesses as offers example indicators that can be considered for compila-
Hewlett-Packard, Intel, Gap, IBM, and Microsoft. tion in order to assess how close a given mining or metals

9. Mining and Sustainability 1673
Table 16.2-2 Engagement: Are engagement processes in place and working effectively?
Question (Goal) Ideal Answer (Objectives) Example Indicators
Are processes of engagement committed Satisfactory processes of engagement have been designed and
to, designed, and implemented that implemented that Input
• Ensure all affected communities of • Ensure all affected communities of interest (including vulnerable ⇓
interest (including vulnerable or or disadvantaged subpopulations due to, for example, gender, Output
disadvantaged subpopulations due ethnicity, or poverty) are well informed and have the opportunity ⇓
to, for example, minority status, to participate in the decisions that influence their own future; and Result
gender, ethnicity, or poverty) are well • Are understood, agreed upon, and consistent with the legal,
informed and have the opportunity to institutional, and cultural characteristics of the community and
participate in decisions that influence country where the project is located.
their own future;
• Are understood and agreed upon by As indicated by:
implicated communities of interest; Engagement processes. Engagement processes are in place for all • Comprehensive mapping of interests
and phases of the project/operation life cycle to serve as a mechanism for completed.
• Are consistent with the legal, institu- • Collaboratively identifying desired objectives, best approaches for • Design of engagement strategy
tional, and cultural characteristics of gathering evidence in support of achieving objectives (quantitative completed, including guidelines that
the community and country where the and qualitative), assessment criteria, trade-offs and the bases for are agreed upon by all interests
project is located? judging trade-offs; and • Full and satisfactory disclosure of
• Overseeing the application of the approach to assessing the project-related information
contribution to sustainability articulated here. • Effective implementation as signaled
by participant satisfaction
Dispute resolution mechanism. An agreed upon, affordable dispute • Dispute resolution mechanism(s)
resolution mechanism (or set) exists and is understood by and • Effective mechanisms as signaled by
accessible to all communities of interest. participant satisfaction
Reporting and verification. Appropriate systems of reporting and • Systems in place
verification are in place. • Systems working effectively from
perspective of various interests
Adequate resources. Adequate resources have been made available • Adequate resources available
to ensure that all communities of interest can effectively participate as • Satisfaction with level of support
needed. • Effective participation achieved as
Note: Responsibility for ensuring that this capacity is in place rests assessed by company, community,
with a mix of government, company, and the local community itself. indigenous peoples, and government
The exact distribution of this responsibility should be worked out
collaboratively.
Informed and voluntary consent. The informed and voluntary consent • Broad community support
of those affected by the project or operation has been given.
Note: Inclusion of this factor does not imply that consent be given
as a requirement for a project to proceed. The responsibility for
approval lies with the relevant regulatory agency that is mandated
by the laws of the country. Rather, this factor is included as a means
to assess the extent of concurrence of those affected by a project. If
that concurrence is high, the potential for achieving a net positive
contribution to sustainability is greatly enhanced. In contrast, if
negative feeling toward a project or operation is extensive, that
potential is greatly reduced.
Source: Adapted from MMSD North America 2002.
operation is to achieving the ideal answer. In turn, the breadth movement came close examination of the social and economic
of knowledge that Table 16.2-2 spans provides an indica- implications of mining activities, particularly in emerging
tion of what any mining operation might be expected to take nations. One observation that emerged was that examples of
into consideration when addressing this aspect of sustainable developing economies suggested a link between mining activ-
development. ity and ongoing poverty. In these instances, was the presence
of natural resources in fact a “resource curse” resulting from
Contributing to Human Well-Being a combination of poor governance, corruption, and civil war?
Most inside the mining industry take it for granted that min- There is a large amount of literature on this subject (e.g., see
ing activities contribute to society in general, to investors that Davis 2009, Crowson 2009, Auty 1993, and Sachs and Warner
risk their capital, to management and workers who are gain- 1995).
fully employed as a result, and to the many host communi- More recently, work completed by the ICMM (McPhail
ties who experience the secondary and tertiary benefits that 2008) has demonstrated that the resource curse needn’t occur
ripple out from any mining activity. However, following hard if appropriate collaborative action is taken. The ICMM work
on the heels of the rise of the contemporary environmental has identified six key areas of focus: (1) poverty reduction,

10. 1674 SME Mining Engineering Handbook
People
Individuals Communities
Distribution of
Population health, Social and Responsibilities
costs, benefits,
safety, and cultural integrity and sureties are
risks, and
well-being are are assured assigned and
responsibilities
assured adequate
is fair
Community,
Full social and organization,
Worker health cultural costs, capacity,
and safety are benefits, and risks infrastructure,
assured have been resiliency, and
considered dependency
Courtesy of the International Institute for Sustainable Development.
Figure 16.2-8 Example factors to consider in assessing the contributions of mining and/or metals
operations to human well-being
(2) revenue management, (3) regional development, (4) local operation? These factors draw on the foundation provided by
content (the use of local labor and locally derived services socioeconomic impact analysis but use the lens of contribu-
and supplies), (5) social investment, and (6) dispute resolu- tion. Table 16.2-3 then provides both the ideal answer as well
tion. The key to success is the use of collaborative approaches as examples of the kind of indicators that might be consid-
involving host governments, companies, civil society, and ered in assessing how close a given operation is to meeting the
donor agencies. ideal answer. As in the previous section, the range of topics
One spin-off of the emergence of sustainability ideas provides a sense of what sustainable development means to
starting in the mid-1980s, the resource curse debate of the mining from this particular perspective.
1990s and 2000s, and the ongoing challenging of the mining
industry by NGOs and in some cases host governments is a Contributing to Ecosystem Well-Being
realization that much greater effort is required to understand, The relationship between a mining operation and its host envi-
capture, and share the nature and extent of mining and metal’s ronment is the focus of the environmental impact assessment
contribution to human well-being. No longer can it simply be and the resulting environmental management plan and related
taken for granted. environmental management systems. The approach used here
A key issue requiring attention in emerging economies is builds on this foundation.
a documented gender bias in mining whereby benefits (such Figure 16.2-9 shows one way of conceptualizing the
as employment, income, training, education, and health care) environmental implications of a mining operation. It looks at
accrue largely to men and the local elite while most risks (such chemical, physical, and biological implications from both the
as family and social disruption, domestic violence, alcohol- generation of environmental stress and the linked potential for
ism, HIV/AIDS, increased prostitution, loss of gardens for ecosystem restoration. The concept of restoration that is used
subsistence agriculture, pollution, and water losses) fall on the here is not the idea that everything needs to be returned to a
poorer women, the less advantaged, and the families they care chemical, physical, and biological premining state. Rather, a
for (see Eftimie et al. 2009a and 2009b). A company purchas- robust ecosystem is sought that is naturally reproducing and sus-
ing the bulk or all of its produce needs locally can be benefi- tainable. This is the domain of the emerging science and art of
cial for local farmers and landowners who see prices increase restoration ecology.
for their produce, but this can also have the unintended effect A chemical, physical, and biological characterization of
of worsening the situation for the poor community women environmental implications is traditional and helpful from
who may be unable to afford the higher food prices. These are several perspectives, including (1) often regulatory require-
complex issues that require careful management approaches ments are organized in this manner; (2) the professional
for any mining company. expertise that must be drawn on is often organized in this
Figure 16.2-8 offers example factors to be considered in way; and (3) traditional education is offered in this way and
answering the question—“Will people’s well-being be main- therefore management’s understanding is often aided by this
tained or improved” by a given mining, minerals or metals approach.

11. Mining and Sustainability 1675
Table 16.2-3 People: Will people’s well-being be maintained or improved?
Question (Goal) Ideal Answer (Objectives) Example Indicators
Will the project/operation lead directly or The project or operation will lead directly or indirectly to
indirectly to maintenance of people’s well- the maintenance or improvement of people’s well-being Input
being, preferably an improvement • During the life of the project or operation or ⇓
• During the life of the project or • In postclosure Output
operation, or ⇓
• In postclosure? Result
As indicated by:
Community organization and capacity. Effective and • Presence of an organizational structure that links
representative community organization and capacity and represents the community in project-related
(knowledge, skills, and resources) are in place in the local decision-making processes
community, including representation of women and the • Training facilities in place
disadvantaged in community leadership and decision • Local education/skills level to serve project
making. needs and provide basis for postclosure
Note: Responsibility for ensuring this capacity is in place activities
• Community access to the information and
rests with a mix of government, company, and the local
community itself. The exact distribution of this responsibility expertise needed to ensure that properly
should be worked out collaboratively. informed decisions are made
Social/cultural integrity. All communities of interest have a • Existence of community and regional visions
reasonable degree of confidence that social and cultural expressed explicitly in development and land-
integrity will be maintained or preferably improved in a use plans
way that is consistent with the vision and aspirations of the • Presence of key indicative social structures and
community. their states
• Sense of satisfaction signaled by all interests that
Involuntary resettlement and other interventions will be social and cultural integrity will be maintained
undertaken in such as way as to maintain or preferably or improved (including separate consultations
improve social and cultural integrity. with community women and representatives of
Note: This category is particularly dynamic and will change disadvantaged groups in the community)
as a project proceeds. • Social and cultural indicators identified as
significant by the community
• Preparation and implementation of community-
supported and project-induced migration
management plans to help manage the impacts
of the inflow of outsiders that occurs when a
mining development is expected or announced
Worker and population health, safety, and well-being. • Baseline studies completed that include basic
Improvement of indicators of worker and population health, demographics to track population change
safety, and well-being are maintained or improved. (birth rate, infant mortality, morbidity rates,
Note: Responsibility for gathering this data and information in/out-migration), household incomes, and so
lies with a mix of company (in terms of workers), community, forth, including gender disaggregated data
and government. However, statistics on population health, • Worker health and safety
training and education, jobs, income, poverty, debt, • Population health
community resiliency, and community dependency typically • Training and education
fall to government. • Jobs, income, poverty, debt
• Crime and security
• Community resiliency
• Community dependency
Availability of basic infrastructure. The infrastructure to meet • Water supply, sewage and wastewater treat-
basic needs is available to workers and residents. ment, power, communications, transportation,
education, health services
Consideration of all direct, indirect, and induced or diffuse • Direct, indirect, and induced or diffuse eco-
effects. All communities of interest have a reasonable degree nomic, social, and cultural effects of project
of confidence that all direct, indirect, and induced or diffuse • Changes in social behavior as a result of the
effects have been considered and addressed. project
Note: Requirements will change through the project.
Full social/cultural costs, benefits, and risks. All communities • Satisfaction that all social/cultural costs,
of interest have a reasonable degree of confidence that the benefits, and risks found across the full life cycle
full costs, benefits, and risks to people have been identified from exploration through postclosure have been
and factored into project or operation-related decision identified and addressed
making (as it applies throughout the full project or operation
life cycle).
Source: Adapted from MMSD North America 2002.

12. 1676 SME Mining Engineering Handbook
Environmental
Implications
of Mining
Chemical Physical Biological
Stress Restoration Stress Restoration Stress Restoration
• Discharge of • Closure of facilities to • Alteration of surface • Closure of facilities• Introduction of exotic • Closure of facilities
contaminants to ensure human safety water or ground- to ensure human species to ensure human
surface water in and ecosystem water flow systems safety and ecosystem safety and ecosystem
• Wildlife mortality:
operational effluent integrity • Restructuring of land,
integrity integrity including
contaminant
and runoff revegetation of
• Cleanup of alteration of • Restoration of ingestion and/or
disturbed areas
• Discharge of previously topography and topography and roadkill
contaminants to contaminated sites, landscapes landscapes • Alteration of habitat
• Restoration/
groundwater in natural or human- improvement of
• Instability leading to • Increased stability
seepage made • Provision of access wildlife habitat in
failure (slope, dam, of slopes and
leading to increased adjacent areas
• Discharge of tunnel, stream watercourses
harvesting
contaminants to air in crossing, foundation) • Enhancement of
• Restoration of
operational emissions human–wildlife
• Noise generation surface and
and dust interaction
groundwater flow
• Discharge of systems
contaminants in
accidental spills to
waterways and land
• Transfer of solid
waste to landfills and
hazardous waste to
treatment or storage
facilities
Figure 16.2-9 Chemical, physical, and biological implications of mining/metals operations
However, the ecological system does not function in typical economics of a mine is such that the first few years
such a compartmentalized way, and those expert in ecology (generally, years 1 to 5) are usually very profitable, which is
in general and ecological restoration in particular have offered necessary to serve investors who require a return on invested
alternative ways of addressing this challenge. Figure 16.2-10 capital. Middle years are moderately profitable (generally,
offers such an approach, and Table 16.2-4 addresses the years 6 to 15), and older mines are usually marginally viable.
question—“Is the integrity of the environment assured over Company managers strategize from this perspective because
the long term?”—and provides both an ideal answer to this it is their legal responsibility to protect the investors. If a
question as well as an example set of indicators that, if com- large number of operating mines within their system are in
piled, would serve to facilitate an assessment of how com- the older phase, a company can be vulnerable. However, from
patible a mining/metals operation would be with sustainable the perspective of an employee or service provider, the mine
development An increasingly important emerging issue is is meaningful as long as it operates and provides employ-
understanding the full life-cycle environmental contribution ment. And the concern from the local, regional, or national
of the metals. Much remains to be learned about the technique government is that the mine leads to a lasting contribution—
of life-cycle analysis. however that is achieved. These different perspectives all fac-
tor into the sustainable development equation.
Economic Viability: Project, Community, Nation However, they do not imply that a project/company should
Understanding the economics of a project lies at the heart of be assuming responsibility for the local, regional, or national
successful mining from a management and investment per- economy. Rather, it is often possible that by working in col-
spective. Two key factors govern project economic stability: laboration with in-country partners, benefits can be achieved
(1) the licensing and fiscal regimes under which mining takes for the host community, region, or country that involve little
place—that they are efficient, noncorrupt, and result in secu- cost to the company but have significant benefits for the host.
rity of tenure; and (2) an equitable sharing of costs, benefits, Further, if unintended economic consequences related to this
risks, and responsibilities between the host country and the broader perspective arise and are not recognized, they may
investor. result in a liability to the company over the long term that
For any project to be successful, the deposit, the com- can have grave consequences, including the possibility of the
pany, and industry must all be economically viable. The national/local business environment deteriorating to the point