This document discusses issues around sustainable development in the mining industry. It covers the following key points:
1) There is debate around how much mining companies contribute to sustainable development in poor countries. Critics say they do not do enough to reduce poverty and promote sustainability, while supporters argue they provide important infrastructure.
2) Both mining companies and humanitarian organizations have had limited success in reducing poverty and improving living conditions. They should work together more to achieve development goals.
3) Sustainable development presents challenges and opportunities for mining companies. They must decide whether to operate sustainably or risk destroying value by ignoring environmental and social issues. Their approach could help or hinder development in host countries.
Call Girls Abids 7001305949 all area service COD available Any Time
Mining Environmental Management - 2006
1. Counting the cost of
managing HIV/AIDS in
South Africa
Theory into practice:
sustainable development
in Australia
Reducing emissions from
China’s coal mines
March 2006
MEM0603.indd 1 22.3.06 1:13:14 pm
3. March 2006 Mining Environmental Management 3
envirominea round-up of the latest environmental news affecting the extractive industries
■UN HEAD APPOINTED
A German conservationist has
been appointed to head the UN
Environment Programme. Achim
Steiner is currently director general
of the World Conservation Union
(WCU). He will assume his new
role this June and will be based
in Nairobi. The WCU is the world’s
largest environmental network
with over 1,000 members in 140
countries, including governments
and advocacy groups. The UN said
Mr Steiner had worked both at the
grass-roots level and at the highest
levels of international policy-
making to address the connections
between environmental
sustainability, social equity, and
economic development.
■SANDBROOK DIES
Richard Sandbrook, a co-founder
of Friends of the Earth in the
early 1970s and one of the most
influential environmentalists
of his time, died in London on
December 11, 2005. In 1976
he joined the London office of
the International Institute for
Environment and Development,
eventually becoming executive
director from 1989 to 1999.
Following this he became a
freelance consultant. His portfolio
includes acting as co-ordinator
to the Minerals Mining and
Sustainable Development Project
(1999-2003), and he spoke on the
subject at Mining Journal’s Mines
and Money conference in 2003.
■ABN AMROWINS AWARD
ABN Amro has won the Gold
Medal Award for International
Corporate Achievement in
Sustainable Development from
the World Environment Centre, an
independent, not-for-profit,
non-advocacy organisation
promoting sustainable
development. The award is
in recognition of the bank’s
leading role in the creation and
implementation of the Equator
Principles. ABN spearheaded
the global programme in the
private sector. Subsequently,
more than 30 international banks,
representing 80% of project
financing in the world, have agreed
to adopt the principles.
ANALYSTS at Citigroup have identified
five sustainable development factors,
which they claim have the potential
to‘destroy or add’investment value
to mining and metals companies, and
thereby for investors.
The banking group said the
groundswell of public opinion has made
sustainable development a serious
business consideration for the mining
and metals industry, and for its investors.
Furthermore, they said the industry’s
reaction has been mixed, with a wide
range of responses to these emerging
business risks and opportunities.
In a research report entitled‘Towards
Sustainable Mining’, the equity analysts
argued that sustainable development
has traditionally been limited to immediately obvious issues
such as environmental pollution, health, safety and human
rights.
However, here they argued that it actually has a far
broader scope and offers to those companies (and their
share prices) the potential to outperform if they can react
effectively to the challenges these five factors pose.
The five factors take into account areas which include
commodity and country exposure, as well as mine
development, and corporate responsibility with regard
to sustainable governance and HSEE (health, safety,
employment and the environment) in operations.
By combining these factors the analysts were able to
create the Citigroup Sustainability Mining Index (CSMI) to
evaluate how metals and mining companies are conducting
their business relative to sustainable development priorities
– those that are in the best position to create value or are at
risk of destroying it.
The analysis suggested there is a trend towards
accepted standards of good practice around‘sustainability
governance’and‘HSEE in operations’. And it also suggested
that while commodity exposure can have some impact,
it is the country exposure that causes most variation in
the company scores. This, however, can be exacerbated or
softened by the company’s management processes.
The report said that traditionally an unconsolidated
mining sector has kept costs low by clamping down on
unionisation, cutting corners with health and safety and
taking risks with waste disposal etc.
However, the mining sector is now moving from
an externalising environment towards one where
environmental and social costs typically have to be included
in the cost of doing business.
This is increasing the costs of mining, limiting land
access, and extending the lead times for developing new or
expanding existing mines.
The sustainable development agenda presents
companies with a number of choices:
■ Seeking out low-regulation, low-cost environments for
their future development.
■ Developing a new business model that places a premium
on environmental responsibility and social progress.
■ Trying to operate in the old way in the new world and
going out of business.
Corporate benefits of
sustainable mining identified
� �� �� �� �� �� �� �� �� �� ���
���������
������������
��������������
�����������
�����
��������
������
�������
������
��������� �������
��������������
����� ����
�����������
�������
������� ������
����
���������
������������������
����������������
������������������
����������������������
����������������
ICMM calls for greater collaboration
THE International Council on Mining & Metals (ICMM) said
the mining industry has much to offer the drive towards
sustainable development in the mining and metals
industry, but significant progress cannot be achieved by the
industry alone.
Speaking at the World Mines Ministries Forum in Toronto
this month, ICMM secretary general Paul Mitchell said:
“I believe we are now reaching the limits of what companies
working alone can do to tackle the economic, social and
environmental impacts of mining.”
He called for more collaboration between companies
and other stakeholders – governments, communities, non-
governmental organisations and international agencies.
“Such partnerships are needed if we are to truly realise
the positive potential mining offers. This will of course
require a greater willingness by all parties to engage
substantively, thus necessitating a commitment and
openness that has not always characterised the sector to
date,”he said.
Mr Mitchell also argued for a more discriminating
response towards the leading companies from some non-
stakeholders.
He said it is in their interest to be able to distinguish
between those companies with which it is worth
collaborating, and the ones to be avoided as partners, those
who have no deep interest in sustainable development.
MEM0603.indd 3 22.3.06 1:13:18 pm
4. 4 Mining Environmental Management March 2006
enviromine
■LEARNING CURVE
Madagascar hopes to speed up its
development by urging mineral
companies to help fight poverty
and protect the environment.
Its mines and energy minister
said the country would try to
learn from the poor experiences
of other African mining and
petroleum hotspots. The minister
told Reuters that Madagascar
was overhauling its mining code
to put obligations on mining
companies to contribute to
local development. He said:“We
want to put soft pressure on the
extractive industries to accept this
new challenge and put in place
a model, so that when mining
companies come to Madagascar
there is always something for
them to integrate themselves into.”
■ALCOA’S LARGESSE
The Alcoa Foundation will donate
US$8.6 million to create the Alcoa
Conservation and Sustainability
Fellowship programme. It
will fund the study of global
conservation and sustainability
research by 30 academic and
non-governmental organisation
(NGOs) fellows from around the
world over the next six years.
The research will then be given
away to all companies and NGOs
worldwide in an effort to spur
better sustainable development
practices globally. Initial studies
include sustainable energy
technology development in
China, a new marine protected
area for Blue whales in Chile
and community-based resource
management in Zambia.
■DIAMOND COMPROMISE
The Brazilian Government has said
it may concede a diamond-rich
area in Minas Gerais state to an
organised group of wildcat miners
(garimpeiros), in a move to prevent
fighting over land. President Lula’s
government is planning to grant
space and rights to garimpeiros
organised into co-operatives as
part of its 2003 programme to
regularise small companies and
independent miners who do not
cause social problems, smuggle
drugs or damage the environment.
Big companies have agreed to give
up part of their land in a number
of cases involving garimpeiros in
a bid to improve Brazil’s image
as a mineral exporter following
concerns about pollution. Before
the programme there were an
estimated 1.5 million unofficial
mines in the country.
FREEPORT McMoRan was
forced to halt operations at
the Grasberg gold and copper
mine in Indonesia last month
after hundreds of illegal miners
blocked access to the site.
The miners were protesting
against the company’s efforts to
clear them from an area where
they pan for gold in Freeport’s
tailings.
The protests have come at a
time when the company faces
criticism from human rights and
environmental groups over its
practices at the mine in Papua.
Concerns have been raised
over its relationship with the
Indonesian military, which it
pays to maintain security at the mine.
The Indonesian Government had also threatened to
bring legal action against the company and close the mine.
However, in a move that will please investors but disappoint
some human rights and environmental activists, the
government now says it will not close the Grasberg mine
despite the recent violent protests that have already seen
the deaths of four protesters.
According to Indonesian news agency Antara, Energy
and Mineral Resources Minister PurnomoYusgiantoro
said:“We want to show that we respect contracts and the
decision not to close PT Freeport (the US producer’s 91%-
owned subsidiary) is to give foreign investors a sense of
legal certainty.”
In January, the company’s chief executive, Richard
Adkerson, responded to what the company called
“disturbing and provocative mis-statements”about its
operations in Papua by The New York Times.
He said:“Our affiliate, PT Freeport Indonesia, operates the
world’s second-largest copper mine on the island of New
Guinea, where rainfall averages in excess of 200 in annually.
Significant volumes of gold are included as a by-product
in our copper concentrate, which we produce in a physical
separation process that does not involve the environmental
impacts of cyanide leaching used in traditional gold-mining
operations.”
Furthermore, he added:“The New York Times similarly
mischaracterised the support we provide for Indonesian
security forces and ignored the practicalities of conducting
business in a remote area.
“Indonesian law prohibits us from employing armed
private security or arming our employees to protect our
people and their families, 98% of whom are Indonesian,
including more than 25% from Papua.”
NEWMONT Mining Corp has reached
an agreement with the Government
of Indonesia to settle a civil action
brought by the government against
the company’s local subsidiary, PT
Newmont Minahasa Raya (PTNMR).
The US giant has agreed to pay
US$30 million in an out-of-of court
settlement after the government
claimed US$133 million in damages
for alleged pollution in Buyat Bay
from the now-closed Minahasa gold
mine.
The agreement ends the
government’s civil lawsuit against
PTNMR. In November 2005, the South
Jakarta District Court dismissed the lawsuit on jurisdictional
grounds, but the government issued a notice of appeal.
Newmont has maintained that its marine tailings
disposal system did not pollute the bay or harm local
people.“We are not walking away from Buyat Bay,”said
Robert Gallagher, Newmont’s vice president of Australia
and Indonesia operations. To the contrary, this agreement
reaffirms our commitment to environmental responsibility
and our confidence that we have fulfilled that commitment
at Buyat Bay.”
However, the settlement does not affect the criminal
action under way against PTNMR and its president, Richard
Ness, who faces a 10-year jail sentence if convicted.
Under the terms of the agreement, the government
and PTNMR will nominate members to an independent
scientific panel that will develop and implement a ten-year
environmental monitoring and assessment programme.
The company will provide initial funding of $12 million
to cover the cost of the monitoring and community
development programmes. Over a ten-year period,
Newmont will contribute an additional $18 million. The
funds will be managed by an organisation governed by
interested stakeholders.
Accountability for the fund will be ensured through
yearly reports that will be made available to the public,
and the transparency of the scientific panel’s activities will
also be assured through annual reports to the public, the
company said in a statement.
Protests halt operations at Grasberg
The closed Minahasa
gold mine
Newmont dispute settled out of court
The Grasberg mine
MEM0603.indd 4 22.3.06 1:13:22 pm
5. March 2006 Mining Environmental Management 5
enviromine
■LAFAYETTE OFFTHE HOOK
The Philippines said there was
not enough evidence to prove
mercury contamination around
a mine owned by a unit of
Lafayette Mining Ltd. The country’s
Mines and Geoscience Bureau
issued a statement after a local
environmental group said analysis
of water samples it had taken from
the area showed the presence of
cyanide and toxic heavy metals.
■HONDURAS CLAMPDOWN
Honduras will not grant new
permits for open-pit mines without
stricter environmental laws
and clearer social benefits.The
Honduran president, Manuel Zelaya,
said:“They can say we are sleeping
on a mountain of gold.Well, we are
going to be sleeping there … but
this gold has to serve the Honduran
people, and it has to serve the poor
of Honduras to develop our nation.”
The president of the country’s
National Mining Association said
various sectors were supporting a
bill to put stricter conditions on new
mining operations.
�������������������
�������������������������
�����������������������
�������������������������������
����������������������������
������������������������
�������������������������
THE Australian coal industry will spend up to
A$300 million over five years to help cut harmful
emissions from coal-fired power stations,
according to a statement by the Australian Coal
Association (ACA).
Through a project called the‘COAL21 Fund’
the industry will work with the electricity
generation industry to demonstrate“promising
technologies”for cutting greenhouse gas
emissions.
Most of the technology is known about but
demonstrations are necessary to speed their
take-up by the generating industry. As such:“A
number of potential demonstration projects are
now being assessed for funding support,”said
Mark O’Neill, executive director of the ACA.
The new fund has been secured through
a voluntary levy on coal producers, based
on the volume of their production – a world first, said
the statement.“Already there is significant buy-in, with
companies representing around 90% of Australian black-
coal production having signed on, and others expected to
follow,”said Mr O’Neill.
The project will help develop technologies that increase
the use of energy in a sustainable way.“Australia could
make a difference and complement international efforts”,
he added.
Some technologies that may acquire funding include:
■ Capture and permanent geological storage of carbon
dioxide.
■ Coal gasification for either electricity or liquid fuels
production.
■ Oxy-fuel combustion.
■ Post-combustion capture and storage of carbon dioxide.
■ Advanced clean coal preparation technology.
“What now remains is for the Australian electricity
generators to join Australian coal producers in funding
and developing the package,”said Milton Catelin, chief
executive of the World Coal Institute.
Initially, the fund will target mature projects although
newer ideas will be considered as the five-year life of the
project proceeds.
CS Energy/InterGen’s Callide Power Station in Queensland: the first power
station in Australia to employ supercritical technology to reduce coal
consumption and reduce greenhouse gas emissions. It was commissioned
in 2001
Aussie coal to invest in clean technology
MEM0603.indd 5 22.3.06 1:13:26 pm
6. Drill
S
OUTH Africa continues to face its greatest challenge
of the modern era: HIV and AIDS. With national
prevalence rates reaching 23% of the population in
1998, the epidemic is worsening and the economy
could slowly be edging towards the brink of collapse.
As South African mining companies supply over 40%
of the world’s commodities, it is imperative to maintain a
competitive position in the global market place. Therefore,
the risks associated with the HIV/AIDS epidemic must be
mitigated. Mines typically have higher prevalence rates of 25%,mitigated. Mines typically have higher prevalence rates of 25%,
which predominantly affects their young and powerful male
workforce.
With the uncertainty of illness, death and decreasing
productivity, most mines have actively responded to the
situation by preventing any further transmission of the
infection and by
providing treatment
to infected employees
with antiretroviral
drugs and other forms
of medication.
Research undertaken
in 2003 aimed to
ascertain the cost of HIV
and AIDS management
programmes on a
platinum-mining operationplatinum-mining operation
and its impact on mining projectand its impact on mining project
finance. The South African Bushveld Igneousfinance. The South African Bushveld Igneous
Complex (BIC) is a unique ore system extendingComplex (BIC) is a unique ore system extending
over 67,000 km2
at surface, holding about 80% of theat surface, holding about 80% of the
world’s platinum-group metals (PGM) reserves and supplies,world’s platinum-group metals (PGM) reserves and supplies,
and contains extensive reserves of chromium, iron, titanium,and contains extensive reserves of chromium, iron, titanium,
vanadium and tin.
The BIC comprises two principal PGM-bearing reefs:The BIC comprises two principal PGM-bearing reefs:
■ The Merensky Reef, typically 7.5-11 g/t.
■■ The Upper Group 2 (UG2) Reef,The Upper Group 2 (UG2) Reef,The Upper Group 2 (UG2) Reef,
3.5-19 g/t.
The average grade and
platinum content of
the Merensky reef
mined is typically
Three years on from major research into counting the cost of managing HIV/AIDS programmes in So
risk managementrisk management
Controlling an epidem
This article is based on
research by the author
in 2003 for her masters
dissertation at the Royal
School of Mines. Despite
numerous developments
in the platinum mining
industry over the ensuing
three years, the results still
have relevance to views on
HIV and AIDS today
BY CARINA FEARNLEY
An AIDS patient sits in aAn AIDS patient sits in a
Médicins Sans Frontières
consulting room with a doctor
at a clinic in Khayelitsha,
Cape Town, South Africa
Photo: Bloomberg News
6 Mining Environmental Management March 2006
Fig1
MEM0603.indd 6 22.3.06 1:13:40 pm
7. March 2006 Mining Environmental Management 7
Drill/blast
Bord/pillar
Rocksplitting
Rockcutting
mes in South African mining, MEM assesses its progress and implications
emic in the south
“SouthAfrica
hasoneofthe
continent’s
besthealthcare
infrastructures,
yetoneofthe
world’sworstHIV
epidemics.Around
fivemillionpeople,
about12%ofits
totalpopulation,
areHIV+”
higher than that of the UG2 reef. The UG2 reef is, however,higher than that of the UG2 reef. The UG2 reef is, however,
wider and more amenable to mechanised mining.wider and more amenable to mechanised mining.
South African platinum mines have increasingly usedSouth African platinum mines have increasingly used
mechanised mining techniques within the UG2 reef, despitemechanised mining techniques within the UG2 reef, despite
a lower platinum concentration, to accommodate the stronga lower platinum concentration, to accommodate the strong
rise in global demand for platinum. From an HIV and AIDSrise in global demand for platinum. From an HIV and AIDS
perspective, a material consequence of mechanised miningperspective, a material consequence of mechanised mining
techniques is that a smaller but more skilled workforce istechniques is that a smaller but more skilled workforce is
required when compared to the traditional labour-intensiverequired when compared to the traditional labour-intensive
techniques used in mining the platinum-rich Merensky reef.techniques used in mining the platinum-rich Merensky reef.
One of the key questions posed by the research conductedOne of the key questions posed by the research conducted
was whether the HIV/AIDS epidemic and its associated manage-was whether the HIV/AIDS epidemic and its associated manage-
ment costs were enough to justify increasing the level of mech-ment costs were enough to justify increasing the level of mech-
anised mining.The analysis was based on the Merensky andanised mining.The analysis was based on the Merensky and
UG2 reefs at the Rustenburg Section of Rustenburg PlatinumUG2 reefs at the Rustenburg Section of Rustenburg Platinum
Mines Ltd, a wholly-owned subsidiary of Anglo Platinum.Mines Ltd, a wholly-owned subsidiary of Anglo Platinum.
MINING ONTHE BIC
In 2003, Anglo Platinum planned to expand UG2 productionIn 2003, Anglo Platinum planned to expand UG2 production
at Rustenburg Section by 395,000 oz/y of refined platinumat Rustenburg Section by 395,000 oz/y of refined platinum
by 2006, in line with its strategy to increase production toby 2006, in line with its strategy to increase production to
meet the growing global platinum demand. The plannedmeet the growing global platinum demand. The planned
expansion would allow existing resources to be used withexpansion would allow existing resources to be used with
little modification, resulting in a lower capital expenditurelittle modification, resulting in a lower capital expenditure
requirement to establish the new UG2 mining areas.requirement to establish the new UG2 mining areas.
At the Rustenburg Section, conventional hand-held miningAt the Rustenburg Section, conventional hand-held mining
techniques dominate mining of the
Merensky reef and include longwall,
breast and down-dip mining (see
fig 1). The stopes are normally less
than 1 m high, making the area too
cramped for machinery; hand-held
pneumatic drills remain the most
effective approach.
As mining technology develops
and global health and safety trendsand global health and safety trends
become more stringent, there is an increasingbecome more stringent, there is an increasing
industrial interest in mechanisation techniques thatindustrial interest in mechanisation techniques that
improve worker safety. Where mechanisation leads to higherimprove worker safety. Where mechanisation leads to higher
productivity and lower unit costs, its implementation improvesproductivity and lower unit costs, its implementation improves
international competitiveness.international competitiveness.
SOUTH AFRICAN MINING AND HIV/AIDS
South Africa has one of the continent’s best healthcare
infrastructures, yet one of the world’s worst HIV epidemics.
Around five million people, about 12% of its total population,
are HIV+. Had South Africa moved quickly to fight the
epidemic, it may have prolonged innumerable lives;
instead, it now finds itself recording over 1,000 AIDS
deaths daily.
Despite the slow approach of the government, the
mining industry, along with the Department of Minerals and
Petroleum, has developed a progressive, far-sighted policy and
legislative environment to manage the epidemic effectively.
The mine population is young and almost exclusively male,
with both regional and local migrant workers. The isolation
of many ore deposits leads to inhospitable locations, which
historically have prevented family accompaniment.
Returning migrants often contribute further to the growth
of HIV/AIDS.
Most South African mining companies have benefited
workers and the related communities with extensive HIV
and AIDS programmes. These companies are consequentially
gaining positive exposure by developing effective manage-
ment methods to preserve life.
ANGLO PLATINUM
Anglo Platinum launched its HIV programme in 1998, despite
managing the problem for over 20 years, to protect the group
and its stakeholders by containing and managing HIV/AIDS.
It is able to ensure the long-term sustainability of its business
operations by reducing the infection rate among employees
and surrounding communities. Anglo Platinum’s strategic
plan encompasses economic impact and epidemic impact
containment, including reducing fears and dispelling myths
Virtually unknown 25 years
ago, AIDS is the leading cause
of death in sub-Saharan Africa
and the fourth-largest global
killer. AIDS is caused by the
human immunodeficiency virus
(HIV), which lives and multiplies
primarily in white blood cells,
the immune cells that normally
protect our bodies from disease.
As HIV develops, it slowly wears
down the immune system so
that‘opportunistic infections’
can make HIV+ people very
sick. AIDS is a fatal disease, but
there are interventions that can
prolong and improve quality
of life, including clinical management of common opportunistic infections, highly-active anti-
retroviral therapy (HAART), palliative care and counselling (above).
Community and home-based care can relieve local communities and health authorities by
providing a social safety net for poor households affected by the disease, AIDS orphans and
vulnerable children. HAART is a particularly complex treatment that requires sophisticated
administration and monitoring. With discounts and generic drugs, the cost of HAART has been
reduced to US$500-1,000/y per patient in some developing countries; this, however, excludes
the appropriate administration costs, which remain significantly high, and therefore are not
available to all who require such treatment.
A
A1
A2
Time
Numbers
HIV prevalence
AIDS – cumulative
T1
T2
B1
B
Fig 2
THE HIV/AIDS EPIDEMIC
Continued on page 8
Fig 1: Mechanisation of the UG2Fig 1: Mechanisation of the UG2
using bord and pillar techniquesusing bord and pillar techniques
Source: Anglo Platinum
Fig 2: The epidemic curves of
HIV and AIDS. ART will drive
the curves to the right
www.und.ac.za
MEM0603.indd 7 22.3.06 1:13:49 pm
8. 8 Mining Environmental Management March 2006
“TheMineraland
PetroleumResources
DevelopmentBill
statesthatallsingle-
genderhostels
shouldbereplaced
withfamilyunits
duetothenon-
idealpsychological
conditionsandthe
fastspreadofHIV”
risk managementrisk management
about the disease, respecting employees’rights, assisting
with access to appropriate and affordable healthcare and
supporting efforts to stop the disease spreading further.
Today, Anglo Platinum offers regular HIV tests, counselling
and, if needed, HAART, to keep workers healthy and productive.
The programme is now expanding from the workplace to
clinics in towns and villages near mines, often in partnership
with AIDS charities.
THE MODEL
The 2003 research evaluated the financial impact on the value
of the Rustenburg section expansion project through four
models:
1: Developing a base case where no epidemic is assumed.
2: Managing the epidemic as conducted by Anglo Platinum in
2003.
3: Incorporating family housing and care for orphans in the
above model.
4: Ignoring the epidemic completely, ie no direct costs; only
those related to increased absenteeism, death, training and
lower productivity.
The aim was to determine the financial impact of these
scenarios on both the Merensky and UG2 reefs, to test whether
managing the epidemic is more cost-effective than ignoring
it, and if mechanisation can, as a secondary effect, reduce HIV/
AIDS management costs due to a smaller workforce.
As mechanisation is currently not economically viable
within the Merensky Reef due to geological and engineering
constraints, a critical question was whether, despite higher
platinum grades associated with the Merensky reef, UG2
mechanisation could facilitate higher production at lower HIV/
AIDS operating costs.
The above scenarios were modelled within a discounted
cash flow to place a value on the Merensky reef maintaining
its current production levels, and the UG2 layer, starting
production in 2002 and stepping up until 2006, when full
capacity was expected to be achieved.
ASSUMPTIONS
Although Anglo Platinum provided its HIV/AIDS costs and
projections as of 2003, most of the assumptions in using the
data are entirely based on the author’s own research.
The cost estimations supplied incorporated additional
leave and absenteeism, HAART and voluntary counselling
and testing (VCT), death and medical incapacity benefits,
replacement of personnel, prevention, education and other
inventions, medication and hospitalisation.
The cost-model used assumed that management would
take the necessary steps, either by increasing the labour
complement or using overtime, to maintain the required
production levels.
Costs not incorporated due to their complexity included
pensions, further benefits for the family, larger administrative
costs and a further decrease in staff morale. However, it is clear
that, in reality, the costs of the models developed are likely to
be higher.
The model did not take into consideration any loss in
on-the-job productivity of the workforce caused by the side
effects of HAART treatment or associated general illnesses.
HIV prevalence testing is anonymous; and while specific
workers cannot be identified for treatment, the data is useful
in quantifying and mitigating operational, social and financial
risks. By ignoring the epidemic, high costs would be incurred
through extensive recruiting and retraining, additional leave
and absenteeism.
The Mineral and Petroleum Resources Development Bill,
enacted in October 2002, states that all single-gender hostels
should be replaced with family units due to the non-ideal
psychological conditions and the fast spread of HIV.Tests at
Rustenburg, however, demonstrated that there are no significant
differences in prevalence between HIV workers staying at
single-gender hostels and family homes.Therefore, these added
costs were not incorporated into the research models.
Model three assumes that 70% of orphans will be cared for
by informal fostering, 25% by statutory adoption and foster
care and 5% on statutory care. The numbers of orphans were
based on death rates as predicted by studies in 2003.
The discounted cash-flow models developed as an integral
part of this analysis were based on simplified versions of
the company projects under study. As such, they do not
incorporate all the variables that are present and therefore
performance indicators do not necessarily accurately reflect the
reality of the Merensky and UG2 mining projects at Rustenburg
Section. The models were used simply as a platform to apply
a simulation of an independent valuation and to evaluate the
practical application of the techniques.
The cash flow for the model was developed based on
real operating performance data, ie reserves and resources,
mining rates, grades, operating costs, working capital, capital
expenditure, production schedules, efficiency etc, as disclosed
in the annual and interim reports.
As future prices and costs are unknown, in order to account
for risk and uncertainty, a sensitivity analysis and Monte Carlo
simulation (MCS) was conducted which randomly generates
values, within consensus limits, for uncertain variables
repeatedly to simulate a possible real-life scenario.
Projected AIDS and non-AIDS
deaths in South Africa
Source: Whiteside, 2002
Continued from page 7
1.2
1.0
0.8
0.6
0.4
0.2
0
1995
Deathsinmillions
2000
Other deathsAIDS deaths
2005 2010 2015
MEM0603.indd 8 22.3.06 1:13:52 pm
9. March 2006 Mining Environmental Management 9
FINANCIAL ANALYSIS
The analysis showed that costs associated with managing the
HIV/AIDS epidemic in model 2 for both reefs are minimal relative
to the base case (model 1), with project value reduced by
around 3% for the UG2 project and 10% for the Merensky reef.
Model 3 reduces project value as determined by model 2 by
less than 1% for both reefs, indicating that, should Rustenburg
have to account for the costs of housing and caring for orphans
under its current HIV/AIDS programme, it would have little
impact on the current project value.
By ignoring the epidemic in model 4, the project value is
reduced by about 6% for the UG2 and and about 23% for the
Merensky. Huge assumptions in creating model 4 aside, it is
clear that, by ignoring the epidemic, project value significantly
deteriorates, although the impact is lower in the UG2 than in
the Merensky reef.
Despite the costs in managing the HIV/AIDS epidemic, a
sensitivity analysis demonstrated that volatility in commodity
prices and currency exchange rates have the greatest impact
on the net present value of the project. Both factors are
generally outside the control of mine management but
Anglo Platinum’s stated strategy of increasing production to
meet growth in global demand should reduce the long-term
volatility in metal prices.
The MCS demonstrated that failure in a project is most
likely to stem from metal price volatility, increased costs of
production and high interest rates all of which significantly
reduce financial returns. The risk associated with the relatively
low absolute cost of HIV and AIDS management is less for the
UG2 than the Merensky reef. Although associated HIV/AIDS
costs are expected to rise it can be argued that the proposed
introduction of a 4% platinum royalty charge by the South
African Government is a larger financial threat than the costs of
managing the HIV/AIDS epidemic.
CONCLUSIONS
Despite the ethical argument that a life is priceless, in financial
modelling, it is necessary to place a value on an inherently
unquantifiable risk. There are still so many unknowns
relating to the mining environment and such a wide-scale
and devastating epidemic that the only control that can be
achieved is by managing the situation as best as possible.
The 2003 research has shown that, by managing the
epidemic as Anglo Platinum has, its cost is relatively low,
and lower still within the UG2 reef when exploiting new
mechanisation techniques.
Yet although mechanisation can provide the added benefits
of a smaller workforce and greater operational efficiencies, it
requires more skilled labour. And Merensky reef still remains
highly profitable due to the higher platinum grades.
In 2003, mechanised mining of the UG2 reef was in its early
stages and adapting to the geological, grade and structural
constraints of the reef proved to be the largest challenges. The
high chrome content of UG2 also presented challenges in the
smelting process, addressed to a large extent by separate slag
processing and higher smelter temperatures.
Therefore, a primary conclusion of the 2003 research was
that moving to a mechanised UG2 mining environment cannot
be justified by lower HIV/AIDS management costs alone
because of the many other mining and economic variables that
drive profitability.
As a result of diligent mine HIV/AIDS programmes, the
impact of the epidemic on mining and the South African
economy remains stable, with continued growth in the
production and trading of commodities and the associated
secondary industries. With the government’s slow and gradual
realisation of the extent of the epidemic, the possibility of
economic collapse becomes less likely. South African mining
companies are global leaders in addressing the epidemic,
thereby providing business models for other regions where
HIV/AIDS is a problem. The success of effective HIV/AIDS
management appears to be the early identification of impact
and potential impact, and early appropriate response.
Carina Fearnley is an analyst at Fox-Davies Capital, a corporate
broker and financial adviser specialising in natural resources and
emerging markets
Left: Anglo Platinum manage-
ment and members of trade
unions and associations after
the signing of the HIV/AIDS
Agreement
Source: Anglo Platinum
“Aprimary
conclusionofthe
2003researchwas
thatmovingtoa
mechanisedUG2
miningenvironment
cannotbejustified
bylowerHIV/AIDS
managementcosts
alonebecauseofthe
manyothermining
andeconomic
variablesthatdrive
profitability”
We see solutions
where others don’t
MEM0603.indd 9 22.3.06 1:13:54 pm
10. Ministers from the 17 European Space
Agency member states gathered in
Berlin late last year and approved a
robotic exploration mission to Mars
carrying a drill which will study surface
materials for evidence of life.
D
UE for launch from Kourou, French Guiana, in 2011, the
ExoMars mission will deploy a highly mobile rover with an
exobiology instrument suite and a drill that will reach soil
samples up to 2 m below the planet’s surface in search of
traces of extinct or still existing life.
Separately, NASA’s twin Mars rovers have so far explored the surface of
the red planet for more than a full Martian year. The rovers’original mission
was scheduled for only three months.
Both rovers keep finding new variations of bedrock in areas they are
exploring on opposite sides of Mars. The geological information they
collect increases evidence about ancient Martian environments, including
periods of wet, possibly habitable, conditions.
The rovers are equipped with a rock abrasion tool, which is fitted to the
arm of the rover and weighs less than 720 g. It uses a powerful grinder
able to create a hole 45 mm (almost 2 in) in diameter and 5 mm (0.2 in)
deep into a rock on the Martian surface.
Space agency
approves
drilling
mission to
Mars
still life
Photo montage: the European Space Agency
headquarters; (main photo) view of the
Martian landscape taken by the panoramic
camera aboard a NASA rover; grinding of the
rock dubbed ‘Mazatzal’ (top)
Photos: Bloomberg News; Design: Tim Peters
10 Mining Environmental Management March 2006
MEM0603.indd 10 22.3.06 1:14:16 pm
11. March 2006 Mining Environmental Management 11
methane extraction
I
T IS not always the case that an initiative tackling a
mining environmental problem also directly improves
the health and safety of miners, but this is true for a new
World Bank project to remove methane from Chinese coal
mines.
The bank has signed a memorandum of understanding
with China’s finance ministry for designing and developing a
Clean Development Fund, where sales of credits for emission
reductions, generated by projects such as coal-mine methane
(CMM) reduction, will be used to support sustainable develop-
ment projects, including the mining projects themselves.
Under the deal, 65% of these revenues would be earmarked for
climate-change projects, including CMM recovery, creating an
economic and environmental virtuous circle.
Senior Chinese finance ministry official Ju Kuilin says:“The
government of China attaches a high priority to participation in
global efforts under the Kyoto Protocol. We are glad that it has
been possible to bring forward this project…[making it] … a
significant contribution to these efforts.”
This is another sign of a recent sea-change in a government
for whom environmental controls have been a low priority in
the past.
After all, methane explosions in China’s mines are notorious.
In 2004, 6,027 workers were killed in the industry, the over-
whelming majority from gas accidents. In February 2005, 203
miners were killed in one methane explosion, at Fuxin, in
Liaoning province, northeast China.
Two reasons for securing World Bank assistance for extract-
ing methane from Chinese mines are:
■ HFC-23 (trifluoromethane) is one of the most potent
greenhouse gases around, having a global warming potential
11,700 times that of carbon dioxide. It is abundant in Chinese
mines, and when it is not blowing up China’s miners, it
is seeping or being directed to the surface and into the
atmosphere, trapping sunlight and heat.
■ Because of the Kyoto Protocol and its related greenhouse
gas emissions trading systems, HFC-23 is actually quite a
valuable commodity. This allows organisations transferring
technology to developing countries, which reduce greenhouse
gas emissions to claim carbon credits, which then can be
traded, and eventually be set against a country’s commitments
to reduce global-warming pollution. This is especially the case
where the gas can be burnt and converted into electricity or for
other industrial and domestic uses.
To find out how the umbrella agreement might work in
practice, Mining Environmental Management spoke to seniorMining Environmental Management spoke to seniorMining Environmental Management
World Bank environmental specialist KentaroYabe about how
his organisation operates potentially similar CMM reduction
projects already in place.
The bottom line is that the bank, acting through funds
operated by its Carbon Finance Unit (CFU), helps finance
the purchase and installation of CMM reduction technology,
by agreeing to buy carbon credits generated by this new
equipment. This means there is a constant revenue stream to
help operate and maintain the systems.
MrYabe says the problem with CMM is that it is not seen as
an attractive fuel. This is because, historically, the equipment
to extract and then utilise methane for power generation has
been expensive and the gas is of variable quality, with only an
average methane concentration of 40%.
The result of this, says the World Bank official, is that prices
for CMM are often too low“to make sense for mines to install
an expensive recovery system, power generator and pipelines”
associated with extraction and energy recovery schemes.
This situation can be exacerbated by complex national or
local administrative systems regulating the sale of any surplus
electricity generated by such technology, he adds. As a result,
simple venting systems have generally been more popular
among mine operators in developing countries such as
China, with all the resulting energy wastage, greenhouse gas
generation potential for accidents.
MrYabe notes:“We are trying to give mines incentives to
invest in recovery/utilisation system by [creating an] additional
revenue stream: carbon finance.”
EMISSIONS-TRADING PROJECTS: HOWTHEYWORK
MrYabe explains that CMM project joint ventures, mines
and mine operators end up owning the sequestration and
utilisation technology and participants are usually free to
decide which technology they want to install. He says:“We
assess if the project meets our safeguard policy but do not
instruct the project [to choose certain] technology as long as
the project chooses good, reliable, safe and environmental-
friendly technology. If the project asks us to find a technology,
we will co-operate in some way. We always respect project
owners’interests and decisions.
He continues:“Local technology is the cheapest in many
cases”, so a policy favouring the purchase of domestically-
produced technology maybe in the interest of a project
operator.“On the other hand, carbon finance often gives an
incentive to project owners to introduce foreign state-of-the-
art technology.”
As for selecting mines for World Bank-supported methane
projects, he says there is no minimum size restriction on
projects, regarding coal or methane production.
“Any size”of mine could apply. There is a longevity issue
here, however. The bank purchases emission reductions in
advance – up to 2012 and sometimes beyond – to secure good
financing. Therefore, mines with a solid guaranteed future
“good enough to continue their operations [both mining and
utilisation of CMM] until around 2012 are desirable”, he says.
Another consideration is obvious: underground mines are
the key focus: it is pretty hard to trap methane from an open-
cast pit. As for geography, the bank does not discriminate
between regions in a country. However, it can only work with
countries officially supporting the Kyoto Protocol, which
include China, as well as other big developing-country coal
producers like India, Russia and Ukraine.
Progress has already been made. Operating independently
of the new umbrella agreement, the bank is working with a
mine in Jincheng, north-central Shanxi province. It involves the
capture of methane and its conversion into 120 MW of on-site
power production.
This has effectively been financed by the CFU’s Prototype
Carbon Fund contracting to buy a minimum of 4.5 Mt in
carbon dioxide credits, creating 60 jobs at the power plant,
and helping to“improve the safety of miners by establishing a
better way to eliminate explosive methane from the mine”, said
a CFU report.
The bank is also negotiating another standalone CMM
project in Shanxi. Officials are about to carry out a feasibility
study for the project, which will recover CMM and use it to
replace coal as a fuel for household and industry users.
BY KEITH NUTHALL
CleansingChina’scoalmines
World Bank funding to reduce emissions from China’s coal mines will simultaneously
address issues regarding the health and safety of the nation’s mining workforce
While awaiting news, relatives
of trapped coal miners
weep near the state-owned
Chenjiashan mine in Tongchuan
City. Methane explosions are
notorious in China’s mines
Photo: Bloomberg News
MEM0603.indd 11 22.3.06 1:14:21 pm
12. 12 Mining Environmental Management March 2006
C
ASE studies that demonstrate how the various
elements of sustainable development are being
implemented across the Australian mining and
minerals processing industry are well documented.
Lessons learned from these are that environmental
and social improvements at operation levels, and within the
communities in which they operate, can realise short- and
long-term economic benefits.
The most commonly-used mechanisms for implementing
sustainable development across the case studies surveyed
were the cleaner production elements of technology modi-
fication and on-site recycling (or re-use) of wastes, as well as
stakeholder engagement.
The scope of the sustainability agenda fully integrates
ecological, social and economic objectives in a way that
provides both challenges and opportunities for the mining
industry. Sustainable development in the minerals industry
means that investments should be profitable, technically
appropriate, environmentally sound and socially responsible.
The Australian mining industry, through the Minerals
Council of Australia (MCA) (a member of the International
Council of Mining and Metals; ICMM), introduced a code of
practice in 1996 to facilitate greater environmental stewardship
across the industry.
In 2004, the MCA released a framework for sustainable
development called“Enduring Value”, which further underpins
the Australian industry’s commitment to sustainable
development. Enduring value was based on the ICMM’s ten
principles of sustainable development published in May 2003.
Putting these principles into action has been a challenge for
the industry globally and in Australia, and much has been
achieved in meeting it.
This article summarises the findings from a survey of 13 case
studies across Australia’s industry that show how sustainable
development can be successfully implemented at the opera-
tional level of a mining or minerals-processing operation, using
cleaner production tools and stakeholder engagement.
sustainable developmentsustainable development
MEM takes a look at the sustainable development mechanisms that have been put in place in Aus
Realising mineral the
BY TURLOUGH GUERIN
Case-study focus Minerals sector Company and location Summary description of case study (activity and outcome)
Air emission reduction Aluminium Comalco Aluminium Ltd (Rio Tinto) Use of dry-scrubbing technology led to A$11 million in savings and
Bell Bay Smelter – Bell Bay, Tasmania contributed significantly to the local community.
Dust management Lime Blue Circle Southern Cement Plant modifications enabled removal of fine dusts from the process and
– Marulan, NSW the collection of the limestone dust for sale as a by-product.
Energy and materials Industrial Tiwest Joint Venture Pigment Plant Modified process to recover synthetic rutile uses waste acid from
efficiency minerals – Kwinana, Western Australia neighbouring company to produce ammonium chloride for use in
pigment production.
Iluka Resources Ltd Synthetic Adopting technology to capture waste heat power and installed
Rutile Plant – Kwinana, Western Australia an electrostatic precipitator. Generated 6.5 MW returning 16% on
capital saving A$1.5 million/y.
Coal BHP Billiton Coal – Illawarra region, NSW Capture of coal-seam methane and piping it to surface where it
generates 94 MW of energy through electricity generation
(energy for 60,000 homes).
Energy Xstrata’s Mount Isa Mines Program of innovations enabled opening of new mine, increase capacity
– Mt Isa, Queensland while cutting electricity use, CO2 emissions and delaying demand for
new power station.
Water efficiency Steel OneSteel Whyalla Steelworks Reed beds were introduced for treatment of industrial waste water to
– Whyalla, South Australia reduce water consumption and increase quality of discharged water.
Copper and BHP Billiton Olympic Dam Mine Production processes were modified so less water is used in flotation/
uranium – Roxby Downs, South Australia separation; recycling acid and saline water from mine tailings for drilling
and dust control.
Waste minimisation Aluminium Alcoa Portland Aluminium Reduction in waste going to landfill by evaluating processes, through
– Portland, Victoria gaining the commitment of its workforce and combining with waste
minimisation concepts.
Integrated sustainable Aluminium Alcoa World Alumina Implemented range of cleaner production initiatives at bauxite mines
development – various locations in Western Australia and alumina refineries, led to saving of about A$0.5 million annually.
Gold JV between Delta Gold & Placer Dome Developed range of sustainability practices, taking holistic approach to
Granny Smith Mine mining. Created opportunities for indigenous communities and reduced
– Laverton, Western Australia landfill waste.
Oxiana Golden Grove Operations Initiatives reduced pollution and landfill waste, improved energy
– Western Australia efficiency and reduced greenhouse-gas emissions, and improved
rehabilitation processes.
Diamonds Argyle Diamond Mine (Rio Tinto) Mine was threatened with closure in 2001 but is still operating in 2006 as
– Kununurra, Western Australia a result of efforts by management implementing a range of initiatives.
TABLE 1: CASE STUDIES OF SUSTAINABLE DEVELOPMENT AND CLEANER PRODUCTION IN AUSTRALIA’S MINERALS INDUSTRY
“Animportant
meansformaking
sustainable
development
operationalis
throughtheuseof
cleanerproduction
approaches”
MEM0603.indd 12 22.3.06 1:14:22 pm
13. March 2006 Mining Environmental Management 13
A SURVEY OF AUSTRALIAN
CASE STUDIES
Table 1 provides a summary of how
sustainable development is being
implemented in Australia from
the outcomes from the 13 case
studies surveyed. The case studies
presented cover a wide range of the
environmental, social, community and
business issues facing modern mining
operations in Australia.
The studies demonstrate:
■ That a wide range of companies,
representing a cross-section of the
mining and minerals-processing sector,
have embarked on the sustainable
development journey.
■ That there is a need for an
integrated response by mining
companies to the environmental,
social and economic impacts at their
operations. This includes a co-ordinated
internal effort within the organisation
to implement sustainable development
but also across the industry.
■ The financial, environmental and social benefits of
implementing sustainable development initiatives can be
significant, particularly when the impacts are considered across
a mine and the region in which it is operating.
■ Different operations face different challenges, depending
on the location of their operations, and indicates the need
for mining operations to work with the natural environment
in their area. For example, the BHP Billiton Olympic Dam case
study illustrated measures undertaken to improve water
efficiency in remote regions, which suffer water shortages.
■ The importance of mining operations working with and
providing employment for indigenous communities. This is
becoming an increasingly important expectation for many
mining companies striving to be sustainable.
■ Cleaner production and stakeholder engagement are the
key mechanisms for embedding sustainable development
initiatives.
WAYSTO EMBED SUSTAINABLE DEVELOPMENT
An important means for making sustainable development
operational is through the use of cleaner production
approaches. Cleaner production is a preventive strategy, and to
improve its success in contributing to a business’sustainability,
it should be linked to the core activities of the business. The
elements of cleaner production, as applied to the mining and
the minerals industry, are summarised in table 2 (p14) and the
diagram above.
Cleaner production is an environmental improvement
strategy, which leads to specific solutions applicable to
any given business. However, cleaner production also
draws upon, and is linked to social and economic drivers.
Cleaner production is one of a number of ways in which an
organisation can move toward sustainable development and
its success is linked to both internal and external stakeholders
of a mining or minerals processing organisation.
ce in Australia’s mining and minerals-processing industry
heories‘down under’
Cleaner production
Product
modification
Input
substitution
Technology
modification
Good
housekeeping
Onsite
recovery
First tier:
source reduction
Second tier:
recycling and re-use
Above: Five cleaner production
approaches. Cleaner production
aims at making more efficient
use of natural resources (raw
material, energy and water)
and reducing the generation
of wastes and emissions at
the source. This is generally
achieved through a combination
of product modification, input
substitution, technology
modification,goodhousekeeping
and (on-site) recycling and reuse
Continued on page 14
MEM0603.indd 13 22.3.06 1:14:24 pm
14. 14 Mining Environmental Management March 2006
sustainable developmentsustainable development
Cleaner production complements life-cycle analyses (LCA),
product stewardship programmes and initiatives, as well as
social‘tools”including stakeholder engagement. Stakeholder
engagement, which has become more and more important in
the global mining industry, is now being recognised by mining
managers as a critical tool, enabling them to operate their
mines.The type of stakeholders relevant to mining operations
include local, state and federal governments, communities,
suppliers and customers.The way in which these relationships
within and external to an operation are managed, is critical as
these will impact upon all initiatives to enhance the operation’s
future viability.
The main mechanisms for implementing sustainable
development in the case studies are given in table 3. Based on
an analysis of these case studies, the following observations
can be made about the use of cleaner production, LCA, product
stewardship and stakeholder engagement in the Australian
minerals industry:
■ Technology modifications, including process equipment
redesigns and on-site recycling (or recovery), are the most
common applications of cleaner production tools with more
than 60% of the 13 case studies using these approaches.
■ Stakeholder engagement was an important approach
used with more than 50% of case studies demonstrating its
important role.
■ Resource use optimisation was also an important cleaner
production tool, with 46% of the reported case studies
using this as a major means of implementing sustainable
development initiatives. This included optimisation of how ore
resources and other process raw materials are used, as well
as improvements in how other inputs were used including
energy sources and chemical reagent inputs into downstream
processes.
■ Input substitution, good housekeeping, LCA and product
stewardship were less prominent; under 35% of case studies
demonstrated that they were used for contributing to
sustainable development at mining and minerals-processing
operations.
■ Pigment production at the Tiwest joint venture in Western
Australia demonstrates an example where numerous tools for
implementing sustainable development were effectively used
in an integrated manner.
■ Coal-seam methane capture at BHP Billiton’s operations
in the Illawarra region of NSW, and efficient waste use at its
Olympic Dam operations in South Australia, both demonstrate
operations where cleaner production technologies and
stakeholder engagement have been integrated effectively.
HIGHLIGHTS ANDTAKE-HOME MESSAGES
The case studies highlight the following about implementing
sustainable development in Australian minerals industry:
■ Mining and minerals companies in Australia are putting
Cleaner production element Application
Mining Minerals processing
Resource use optimisation Improved separation of overburden and Sequential leaching to recover multiple
other wastes/materials to produce minerals/metals from ore
higher-purity ore
Enhanced modeling of orebody to optimise Conversion of process wastes and emissions
ore recovery into useful by-products
Sourcing customers to match range of Residue processing into geochemically-stable
grades ores produced forms for storage with minimised impact
Input substitution Fluids selection for operating plant in process Use of environmentally-friendly reagents
and non-process areas and process auxiliaries
Technology modification Efficient mine design to minimise minerals Alternative metallurgical processes
movement during operation and for closure (eg biotechnological)
In-pit milling and separation Use of energy-efficient fixed/mobile plant
Design of mine refuelling and lubricant Application of fuel-efficient furnaces
dispensing facilities to enable lowest cost and and boilers
safe supply to mobile plant
Enhanced monitoring and control of
leaching and recovery processes
Good housekeeping Monitoring and benchmarking of haulage Use of inventories to manage and control all
fleet fuel efficiency inputs into process
On-site recycling Composting of green wastes to produce Recovery and reprocessing of un-reacted
heat/steam generation ore from processing waste
Reuse of overburden/waste rock in progressive Counter-current use of water for washing
rehabilitation of mine site operations
TABLE 2: GENERIC APPLICATIONS OF CLEANER PRODUCTION INTHE MINING AND MINERALS INDUSTRY
Continued from page 13
Continued on page 16
Copper being smelted at WMC
Resources Ltd’s Olympic Dam
Copper mine, South Australia,
where cleaner production
technologies have been
integrated effectively
Photo:BloombergNewsPhoto:BloombergNews
MEM0603.indd 14 22.3.06 1:14:30 pm
16. 16 Mining Environmental Management March 2006
sustainable developmentsustainable development
Above: Illawarra Coal produced
6.07 Mt of saleable coal in
2004-05
Above right: dust suppression at
Illawarra Coal’s product stockpile,
Port Kembla Coal Terminal
sustainable development into operation at their sites. The
extent to which this is being done varies from operation to
operation and it is reasonable to state that no one operation
reviewed has implemented a fully sustainable operation.
■ Environmental and social improvements at operations
and communities in which they operate, can realise economic
benefits and will not always incur a major financial cost for
a mining operation or its corporate function. For example,
improvements to waste-management practices and waste
prevention can lead to cost reductions and often increased
revenues.
■ Local communities provide the means by which a mining
or minerals-processing operation can realise its full potential in
contributing to a region’s economic and social well-being.
■ Water-efficiency improvements will be needed by
any mining company planning to remain viable in future,
particularly in Australia where water is major limiting resource.
Similarly energy efficiency improvements will also be
important.
■ At the operations level, there needs to be clear commit-
ment from senior management to make the case for change to
a more sustainable mining or minerals-processing operation.
Such commitment is needed if effective operation-wide
engagement and participation is sought for a sustainable
development initiative.
■ Mining companies need to work closely with other
businesses (eg neighbours and others processors and
manufacturers in minerals supply chain) and suppliers to
identify new processes, products and knowledge that will
increase the sustainability of their businesses. For example,
there were relatively few examples where a mining operation
had engaged explicitly with suppliers to enhance its own move
towards sustainability. This suggests that there are barriers
to the current way in which suppliers are engaged by mining
operations and that these barriers need to be overcome before
the benefits to sustainability, of closer engagement with
suppliers, will be realised.
Turlough Guerin works for Shell’s Commercial Fuel business in
Sydney, and supports the mining and heavy industry marketing
and sales team in Australia. He can be contacted via e-mail at:
turlough.guerin@shell.com
TABLE 3: A COMPARISON OFTHE 13 CASE STUDIES ANDTHE SPECIFICTOOLS EMPLOYED AT EACH OFTHESE
Note: major (■) and minor (■) emphasis of the particular tool or approach evident from the case studies
Airemissionreduction
(Comalco,Tasmania)
Dustmanagement
(BlueCircleCement,NSW)
Pigmentproduction
(TiwestJointVenture,WesternAustralia)
Wasteheatutilisation
(IlukaRutilePlant,WesternAustralia)
Coal-seammethaneutilisation
(BHPBilliton,NSW)
Efficient-energymanagement
Xstrata,Queensland)
Efficient-waterutilisation
(OneSteel,SouthAustralia)
Efficient-waterutilisation
(OlympicDamMine,SouthAustralia)
Wasteminimisation
(PortlandAluminiumSmelter,Victoria)
Integratedsustainabledevelopment
(Alcoa,WesternAustralia)
IntegratedSustainabledevelopment
(GrannySmithMine,WesternAustralia)
IntegratedSustainabledevelopment
(ArgyleDiamondMine,WesternAustralia)
IntegratedSustainabledevelopment
(GoldenGroveMine,WesternAustralia)
Cleaner Production
Resource use optimisation ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Input substitution ■ ■ ■ ■ ■ ■ ■
Technology modification ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Good housekeeping ■ ■ ■ ■ ■ ■ ■
On-site recycling (recovery) ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Life-cycle analysis (LCA) ■ ■ ■ ■
Product stewardship ■ ■ ■
Stakeholder engagement ■ ■ ■ ■ ■ ■ ■ ■ ■
Australian mining case studiesAustralian mining case studiesAustralian mining case studies
Tools and
approaches
used
Continued from page 14
Right:Tiwest’spigmentprocessing
plantiswherenumerous
toolswereeffectivelyusedfor
sustainabledevelopmentinan
integratedmanner
MEM0603.indd 16 22.3.06 1:14:36 pm
17. March 2006 Mining Environmental Management 17
A
NEW method has been used to reposition two
mineshaft vents on a former colliery site in West
Yorkshire. The two closed valves on the vents were
not only unsightly, but could also have constituted
a hazard, as the area they were in is to become a
children’s play park.
The task faced by the main contractor, Cheetham Hill
Construction (CHC) and consultant WhiteYoung Green (WYG),
was to remove the vents and valves, which were under a
vacuum of about 0.33 bar, caused by the extraction of methane
from the disused Wheldale/Fryston colliery, some 4 km away, at
the rate of 2,500 m3
/h.
Opening the valves would create an inflow strong enough
to suck anything or anyone nearby into the old shaft, and the
pressure drop would also interfere with the extraction process
which is due to continue for another six to ten years. After this,
the vent stacks will be required to act as conventional vents,
with the valves open, to release any methane and prevent a
build-up of pressure which could cause it to permeate through
the ground.
Initially the two valves were at ground level, with the
600 mm diameter stacks extending down approximately 4 m to
the caps, and up to a height of about 3 m above ground.
CHC had already laid two plastic pipes, which will connect
the shafts to new vents outside the site boundary. The
objective of this contract was therefore to remove the existing
stacks and reposition the valves immediately on top of the
mineshaft caps, so that the new venting system could be
connected to the mineshafts with nothing visible above
ground.
Pipe Equipment Specialists Ltd (PESL) offered a solution to
the safe and leak-free removal and replacement procedure
using a steel cylinder (launch tube) about 2 m in length, with
a flange at one end and a blanking plate at the other. In the
centre of this plate was a glanding system that would allow
a steel tube (support rod) to pass through while providing a
good seal. A pressure gauge and release valve were also fitted.
The launch tube was long enough to contain two inflatable
stoppers, which were connected by short chains, with the
inflation hose of the lower one passing through a small central
tube built into the upper one. The support rod, which passed
through the gland, and was fixed to the uppermost stopper,
was used as the means of lowering and raising the pair of
stoppers within the launch tube and the vent pipe.
With the vent valve closed, the launch tube containing the
two stoppers was bolted on to the top of the valve, which
was then opened to allow the stoppers to be pushed through
the valve and into the 600mm diameter pipe below. Once in
position, just below the top of the mineshaft cap, the stoppers
were inflated, thereby sealing the pipe and allowing the valve
to be removed.
Several additional safety measures were adopted. First,
a specially fabricated steel plate could be placed over the
exposed vent pipe or valve at any time, so that nothing could
be drawn into the shaft if the stoppers suddenly failed.
Second, clamps were fitted to the support rod and at least
one of these was in use at any given time to secure the rod to
either the metal plate or to scaffolding erected above the shaft.
Third, the airlines to the stoppers were permanently
connected to nitrogen cylinders through automatic valves
which ensured that the correct pressure was maintained,
the system was also fitted with a low pressure alarm which
sounded in the main site office if the pressure dropped for any
reason.
Finally, safety harnesses and lines were used by all personnel
working in proximity to the
shaft.
Once the section of vent
pipe above the cap had
been removed, the valve
was lowered into its new
position directly on the
cap itself. After bolting it
in place, the launch tube
previously used to install
the stoppers was fixed to
the top of the valve which
could then be opened. The
pressure in the stoppers
was then released, and the
airlines were connected
to the release valve on top
of the launch tube. This
ensured that the pressure
within the stoppers was the
same as that outside them
– ie, a partial vacuum – so
that they deflated fully and
could be lifted up through
the open valve and back
into the launch tube.
After the retrieval of the
stoppers within the launch
tube, the vent valve was
closed and the launch tube
containing the stoppers
was removed. Although the
process took a little time
because of the need to
ensure that the rod attached
to the stoppers was always
secured in at least one place
at all times, the operation
was completed successfully
and with no risk of pressure
loss or danger to personnel.
WYG’s resident engineer, Barry Lazenby, says:“As far as I
know, this is the first time that this procedure has been used
to seal mineshaft vents while replacing or repositioning the
associated valves and pipework. Although there was a learning
curve for everyone involved, the system worked well and very
safely, and we would be happy to use it again.”
Steve Kent managing director of PESL is understandably
hopeful that the method will find favour elsewhere.“There is
an ongoing programme of redeveloping former colliery sites,
many of which have vent stacks similar to these,”he remarks.
“Methane pumping, with the associated negative pressures
within the mineshaft and vent stack, is also fairly common, and
we now have a technique that allows alterations to be carried
out simply and safely.”
case studycase study
Tips on effecting a
vacuum clean-up job
Ventstackimmediately
priortoremoval
MEM0603.indd 17 22.3.06 1:14:37 pm
18. 18 Mining Environmental Management March 2006
technology
Atlas rig to make European debut in Paris
ATLAS Copco’s new surface drill rig, which
operates at substantially reduced noise levels,
will receive its European launch at this April’s
Intermat show in Paris.
According to the company, the ROC-series rig
will be the quietest-running and most intelligent
rig of its kind in the world.The rig was initially
launched in Finland late last year.
The SmartRig ROC D7C has noise levels that
are about 10 db(A) below that
of other rigs on the market
and comes with a lower fuel
consumption and increased
drilling capacity.
Operationally, it suits
environments such as urban
areas, where strict noise
restrictions are enforced. In
some cases, noise reduction
can equate to as much as 50%,
depending on conditions and
position from the rig.
Drilling noise created by
the hammer and drillstring generates vibrations
in the feed system, boom and body of the rig.
The rig’s silencer consists of many different
components which reduce the overall noise level,
the most noticeable of which is the hood that
covers the mast.
The advanced and more efficient hydraulic
system, and a new, powerful engine (CAT 6.6)
makes it possible to lower the idling rev/min
and select the optimal power
needed according to rock
conditions.This makes it
possible to reduce the fuel
consumption by up to 30%
compared to similar rigs.
The rig also has an updated
intelligent system, which
makes it possible to increase
the shift capacity through
faster positioning. Other
‘smart’features include a
GPS system for position
monitoring.
INGERSOLL Rand (IR) has launched two compressor
models, based on a redesigned common platform, to
meet this year’s European noise regulations*.
The 7/26E and 7/31E portable compressors use
a‘serviceless’direct-driven 85 mm airend (the 7/26
model used a belt-driven airend). For environmental
safety, the new‘bunded base’option provides a
fully-contained base to ensure
all operating fluids (fuel, oil and
water) stay within the compressor.
The generator variants meet
specific needs for compressors
that provide power for lights,
tools and fusion welding and
compressed air for powering
breakers and other pneumatic equipment.
*Portable compressors are among the 57 types of
outdoor equipment for which most noise limits and
labelling requirements have been set by European
Directive 2000/14EC. With a view to reducing noise
levels, the Directive has been introduced
New IR compressors
meet Euro noise ruling
The SmartRig
ROC D7C: boasts
noise levels about
10 db(A) below
that of other rigs
on the market
MEM0603.indd 18 22.3.06 1:14:41 pm
19. March 2006 Mining Environmental Management 19
DATES FOR YOUR DIARY
tailings
MERCURY pollution from artisanal gold mining will feature
prominently on the agenda of The International Conference on
Mercury as a Global Pollutant this August. In advance of this
meeting in Wisconsin, US, Simon Handelsman and Dr Marcello
Veiga highlight the work being carried out by the Global
Mercury Fund to tackle the problems associated with mercury
contamination.
There are estimated to be some 15 million people involved
in artisanal and small-scale gold mining (ASM) in more than
55 developing countries and they use mercury extensively.
This results in as many as 100 million people whose health may
be damaged by mercury contamination.
To address the problems, the GEF/UNDP/UNIDO-supported
Global Mercury Project (GMP) was set up in August 2002. Six
countries (Brazil, Lao PDR, Indonesia, Sudan, Tanzania and
Zimbabwe) are participating in a pilot project to remove
barriers to the introduction of cleaner technologies for ASM.
Other neighbouring countries (including Venezuela and
Ecuador; and Mozambique and Guinea in collaboration with
Blacksmith Institute of NY) are also receiving some assistance.
The free trade of mercury from developed countries,
especially Europe, makes mercury readily available. In most
cases, mercury enters developing countries through legal
channels for legitimate uses (eg dental fillings), but is diverted
to ASM operations.
While the amount of mercury produced from mining
(including by-product production) fell from 6,066 t in 1990 to
1,849 t in 2000, the availability of recycled mercury from chlor-
alkali plants and other sources increased
from 440 t in 1990 to 910 t in 2000.
GMP is introducing best practices and
pollution prevention measures to limit
mercury contamination from ASM. During
the past four years, as a practical measure,
it has promoted the use of a retort that
can be made locally from inexpensive
materials and developed in collaboration
with the University of British Columbia’s
Department of Mining Engineering, training
programmes to make miners sensitive to
the health risks and adopt new practices.
International guidelines are being developed to minimise
mercury use in ASM and reduce environmental and occupat-
ional hazards.
Provisions include: mercury emission and exposure controls;
recycling and reusing mercury; reduction of mercury in
tailings; prevention of combined uses of mercury and cyanide,
constraints on where mercury is used (emphasising protecting
village/residential areas and water sources); safe storage,
disposal, clean-up and rehabilitation; guidelines to manage
mercury in gold shops; and conducting environmental and
health assessments.
2006
APRIL
April 2-6
Symposium on the Application of Geophysics
to Engineering and Environmental Problems
(SAGEEP)
Seattle, US
Environmental and Engineering Geophysical
Society, 1720 South Bellaire, Suite 110, Denver,
CO 80222-4303, US
Tel: +1 303 5317517 Fax: + 1 303 8203844
E-mail: staff@eegs.org Visit: www.eegs.org/sageep
April 3-7
9th International Seminar on Paste and
ThickenedTailings
Limerick, Ireland
Tel: +44 113 3432377
E-mail: admin@paste06.com
Visit: www.paste06.com
April 19-21
Mineral Economics and Management Society
Annual Conference
Colorado, US
Issue discussed will include reducing costs and
emissions Tel: +1 303 2733321
E-mail: registrar@minecon.com
Visit: www.minecon.com
MAY
May 1
9th International Symposium on Environmental
Issues andWaste Management in Energy and
Mineral Production (SWEMP)
Athens, Greece
Contact: Prof George Panagiotou, National
Technical University of Athens, Department of
Mining Engineering, GR-15780, Athens, Greece
Tel: +30 210 7722198 Fax: +30 210 7722191
E-mail: panagiotou@metal.ntua.gr
Visit: www.metal.ntua.gr/swemp2006
May 10-12
Clean Coal 2006
Vancouver, Canada
‘What is the future of clean coal?’
Contact: Doug Sanborn
Tel: +1 207 781 9603
E-mail: dsanborn@intertechusa.com
Visit: www.intertechusa.com
May 14
2006 Canadian Institute of Mining (CIM),
Metallurgy and Petroleum Conference and
Exhibition
Vancouver, Canada
The event will help individuals and industry
create value with values by: creating and
demonstrating wealth and alleviating poverty;
responsible practice; and environmental integrity
Contact: Jean-Marc Demers, CIM’s director of
commercial operations. Tel: +1 514 9392710
E-mail: jmdemers@cim.org Visit: www.cim.org
JUNE
June 28-30
Second International Conference on
Quantified Eco-Efficiency Analysis for
Sustainability
Egmond aan Zee, The Netherlands
Esther Philips, CML, Leiden University, PO Box 9518,
NL 2300 RA Leiden, The Netherlands
Tel: +31 715277477
E-mail: ee-conf@eco-efficiency-conf.org
Visit: www.eco-efficiency-conf.org
JULY
July 2-6
Australian Earth Sciences Convention 2006
Melbourne, Australia
Visit: www.earth2006.org.au
SEPTEMBER
September 13-15
First International Seminar on Mine Closure
Perth, Australia
Visit: www.mineclosure2006.org
Hot topic: mercury pollution
GMP team teaching miners in
Mozambique
Simon Handelsman is senior policy adviser, Global Mercury Project; and Dr Marcello Veiga is chief
technical adviser, Global Mercury Project, and is associate professor, Dept Mining Engineering,
University of British Columbia. For more details about GMP, please visit: www.globalmercury.orgwww.globalmercury.orgwww.globalmercury.or
MEM0603.indd 19 22.3.06 1:14:42 pm