Tag Archives: mining company Vale

Human and Environmental Costs of Low-Carbon Technologies

Substantial amounts of raw materials will be required to build new low-carbon energy devices and infrastructure.  Such materials include cobalt, copper, lithium, cadmium, and rare earth elements (REEs)—needed for technologies such as solar photovoltaics, batteries, electric vehicle (EV) motors, wind turbines, fuel cells, and nuclear reactors…  A majority of the world’s cobalt is mined in the Democratic Republic of Congo (DRC), a country struggling to recover from years of armed conflict…Owing to a lack of preventative strategies and measures such as drilling with water and proper exhaust ventilation, many cobalt miners have extremely high levels of toxic metals in their body and are at risk of developing respiratory illness, heart disease, or cancer.

In addition, mining frequently results in severe environmental impacts and community dislocation. Moreover, metal production itself is energy intensive and difficult to decarbonize. Mining for copper,and mining for lithium has been criticized in Chile for depleting local groundwater resources across the Atacama Desert, destroying fragile ecosystems, and converting meadows and lagoons into salt flats. The extraction, crushing, refining, and processing of cadmium can pose risks such as groundwater or food contamination or worker exposure to hazardous chemicals. REE extraction in China has resulted  threatens rural groundwater aquifers as well as rivers and streams.

Although large-scale mining is often economically efficient, it has limited employment potential, only set to worsen with the recent arrival of fully automated mines. Even where there is relative political stability and stricter regulatory regimes in place, there can still be serious environmental failures, as exemplified by the recent global rise in dam failures at settling ponds for mine tailings. The level of distrust of extractive industries has even led to countrywide moratoria on all new mining projects, such as in El Salvador and the Philippines.

Traditional labor-intensive mechanisms of mining that involve less mechanization are called artisanal and small-scale mining (ASM). Although ASM is not immune from poor governance or environmental harm, it provides livelihood potential for at least 40 million people worldwide…. It is also usually more strongly embedded in local and national economies than foreign-owned, large-scale mining, with a greater level of value retained and distributed within the country. Diversifying mineral supply chains to allow for greater coexistence of small- and large-scale operations is needed. Yet, efforts to incorporate artisanal miners into the formal economy have often resulted in a scarcity of permits awarded, exorbitant costs for miners to legalize their operations, and extremely lengthy and bureaucratic processes for registration….There needs to be a focus on policies that recognize ASM’s livelihood potential in areas of extreme poverty. The recent decision of the London Metals Exchange to have a policy of “nondiscrimination” toward ASM is a positive sign in this regard.

A great deal of attention has focused on fostering transparency and accountability of mineral mining by means of voluntary traceability or even “ethical minerals” schemes. International groups, including Amnesty International, the United Nations, and the Organisation for Economic Co-operation and Development, have all called on mining companies to ensure that supply chains are not sourced from mines that involve illegal labor and/or child labor.

Traceability schemes, however, may be impossible to fully enforce in practice and could, in the extreme, merely become an exercise in public relations rather than improved governance and outcomes for miners…. Paramount among these is an acknowledgment that traceability schemes offer a largely technical solution to profoundly political problems and that these political issues cannot be circumvented or ignored if meaningful solutions for workers are to be found. Traceability schemes ultimately will have value if the market and consumers trust their authenticity and there are few potential opportunities for leakage in the system…

Extended producer responsibility (EPR) is a framework that stipulates that producers are responsible for the entire lifespan of a product, including at the end of its usefulness. EPR would, in particular, shift responsibility for collecting the valuable resource streams and materials inside used electronics from users or waste managers to the companies that produce the devices. EPR holds producers responsible for their products at the end of their useful life and encourages durability, extended product lifetimes, and designs that are easy to reuse, repair, or recover materials from. A successful EPR program known as PV Cycle has been in place in Europe for photovoltaics for about a decade and has helped drive a new market in used photovoltaics that has seen 30,000 metric tons of material recycled.

Benjamin K. Sovacool et al., Sustainable minerals and metals for a low-carbon future, Science, Jan. 3, 2020

Ethical Mining 2020

Less than half of the world’s larger miners have released safety and environmental details about their mine-waste dams, showing the mixed success of investors’ demands for greater transparency after the deadly Brumadinho dam collapse in Brazil. In January, 2019, 270 people died following the collapse of a tailings dam owned by Brazil’s Vale SA. The incident prompted a coalition of investors who manage more than $13 trillion to ask 726 companies in the mining and oil-sands business to disclose information on their dams. Nearly 55% of companies hadn’t delivered as of November 2019. While some of the largest miners—including Vale, BHP , and Anglo American have disclosed their information, others have yet to do so. Investors are increasingly examining ethical issues when looking at mining.

Tailings, the waste material from extracting valuable minerals, are often held for decades behind dams that can be risky if they are poorly constructed, ill-maintained or filled with too much waste. Major failures of tailings dams have become more frequent as mining companies ramp up production to meet the world’s growing demand for commodities. Norilsk Nickel one of world’s most valuable miners with a market capitalization of roughly $43 billion, hasn’t publicly released details on its tailings dams. In 2016, heavy rainfall caused a Norilsk Nickel tailings dam in northern Russia to overflow, coloring a local river red. Miners of potash and phosphate—minerals used mainly in fertilizers—have been slow to disclose.

Another big company that has not released details is Canada-based Nutrient. Satellite images show two of the company’s six Saskatchewan mines are located a few miles from residential communities and one neighbors a bird-breeding area. A tailings pond at the company’s North Carolina phosphate mine is located next to the Pamlico River, which feeds into the state’s largest estuary.

In 2017, Israel Chemicals reported that the partial collapse of a subsidiary’s dike in Israel released 100,000 cubic meters of acidic wastewater that flowed into a nearby nature reserve. The wastewater resulted from the production of phosphate fertilizer.Vancouver-based Imperial Metals Corp.is tied to what is considered one of Canada’s worst environmental catastrophes. In 2014, a British Columbia dam owned by the company burst, sending some 25 million cubic meters of mining waste pouring into a pair of glacial lakes

Large Chinese miners such as Jiangxi Copper, Zijin Mining Group Co.  and Zhongjin Gold Corp. also haven’t shared information with the investor coalition. There are 8,869 documented tailings dams, of which 16% are within about half a mile of a residential area, school or hospital, according to research led by the School of University of Science and Technology in Beijing. Karen Hudson-Edwards, a mining specialist at Britain’s University of Exeter, said the actual number in China is estimated at around 12,000 dams and there is little transparency on tailings risk in the country. There have been at least 12 serious tailings-dam accidents in China since the 1960s, with one in 2008 killing 277 people, according to the World Information Service on Energy, a Netherlands-based nonprofit.

Alistair MacDonald et al, Many Mining Companies Fail to Provide Waste-Dam Data, WSJ, Dec. 18, 2019