CHAPTER 7 SUSTAINABLE DEVELOPMENT AND ITS RELATIONSHIP WITH MINING AND THE LAW (ENGLISH VERSION)

• Jurisdiction: United States

Mineral Development in Latin America
(Nov 1997)
CHAPTER 7
SUSTAINABLE DEVELOPMENT AND ITS RELATIONSHIP WITH MINING AND THE LAW (ENGLISH VERSION)
Laura Novoa V.
Philippi, Yrarrázaval, Pulido & Brunner
Santiago, Chile

1. Introduction

During the past 25 years, we have been experiencing important changes in the manner of appreciating economic growth, development and the environment. In this way the concept of sustainable development is being created to which very few deny validity, at least at the theoretical level.

Already in 1972, the United National Stockholm Conference admonished the governments about the damage that economic growth and industrial contamination were causing to the natural environment. However, the nonindustrialized countries pointed out that for them it was more important to concentrate on economic growth with a view to eliminating or mitigating the poverty into which they were plunged.

In 1987 the World Committee of the Environment and Development published its report entitled "Our Common Future" better known as the Brutland Report because of the name of its author. In this Report the bases were established of what today we know as sustainable development, consisting, essentially in addressing integrally the formulation of policies and their implementation, assuming that environmental protection and economic growth in the long and medium term are not incompatible but complement each other, and even further, are interdependent. The basis of this conception is that to resolve the environmental problems, resources are required that can only arise from economic growth, while the latter will be frustrated if human health, natural resources and in general the quality of life are damaged or cannot be achieved as a consequence of the former.

The 1992 Rio Conference, known as the Summit of the Environment, related the concept of sustainable development to social peace and democracy, assuming that there is no social peace without democracy, and there can be no development without social peace. Thus it incorporated the social dimension that led it to postulate a development centered on the human person that can only be achieved by economic growth based on a reasonable and

[Page 7-2]

conscientious administration of the natural resources, decided with the participation of all those involved, with the object of eliminating poverty and respecting the right of the present and future generations to have a planet where one can live in minimum conditions of dignity and life quality. On that occasion, 179 countries approved the so-called Agenda 21, which is a plan of action based on these ideas, and promised to put it into practice, including the commitment of the industrialized countries of contributing with 0.7% of their GNP to officially assist in the development of those countries whose level of poverty would make it illusory to address this task by themselves.

Further on in this paper, we shall endeavor to find an approach to what must be understood as sustainable development in the field of mining. It must not be considered strange that for this we resort to the opinion that in this connection is held by those who perform this activity, quoting them verbatim. We feel that sustainable development is always related with what the people want in the medium in question. That is our approach.

2. Mining and sustainable Development.

2.1. Concept.

The question arises as to whether sustainable development can be applied to mining activities, since thess fall on non renewable resources. It is true that the exhaustion of the mine constitutes a conceptual difficulty that cannot be ignored. However, sustainable development does not only seek to preserve resources that can be produced again and again. In conceptual terms, it extends in general to the need of preserving the environmental heritage, including rational use of non renewable resources. In this sense, to apply the principles of sustainable development to mining means placing emphasis on the efficient extraction of mineral substances and in their industrious utilization and development of substitutes that can replace them when they become scarce. In this way the sustainable use of mining resources can imply a reduction in the intensity of the commercial exploitation so as not to expose the mine to a premature depletion in exchange for a questionable immediate benefit. Furthermore, in their normal plans of development, companies seek to find a balance between the availability of mining resources and their depletion, foreseeing that at least in the next future there is no lack of mineral substances. The constant discovery of new mineral resources arising from the normal expansion and replacement work consubstantial with mining activity contribute to this, and ordinarily exceed the useful life originally calculated of a mine satisfying the needs of new generations. Recycling and improvement

[Page 7-3]

of the extraction methods are additional sources of mining resources that are susceptible of being considered in a mining plan that is respectful of sustainable development.

However, the relation of mining with sustainable development finds its greatest importance in the environmental factor, whose incidence makes it increasingly more difficult to find places where extraction activities can be carried out without damaging the environment to an extent that the people consider acceptable for their health or without adversely affecting biodiversity, the aquifers or the cultural surroundings, landscape, archaeological or other aspects that are integrated to the concept of sustainable development and form an inseparable part thereof.

There is another very important factor for sustainable development without which the most perfect mining planning can be frustrated. This is the adequate degree of participation of all those who are affected with the concrete activity in question, in the pertinent manner and time. Where this need is most noted is in the environmental impact studies which are now usual in almost all legislations. In any mining project consultation, discussion and dialogue instances in this stage is of vital importance.

The concept of sustainable development is molded in the adoption of policies and therefore it is pragmatic and dynamic and can be approached in a different way according to the country in question. It is therefore interesting to pit the view of the developed countries against those which are not.

2.2. The view of the developed countries.

In May 1994 an important group of mining experts of Europe and Australia participated in a Workshop on "Mineral Resources and Sustainable Development", which was held in Chateau de Bellinglise, Elincour Ste-Marguerite, North of France. We transcribe below some of the reflections on the subject contained in the Chapter "Introduction, Mineral Resources and Sustainable Development":

"A sensible approach to exploration, exploitation and processing of mineral resources must be taken by the community in the national, regional or local level. While the Government can create the climate to promote or not the extractive activity, the impact of this policy will commonly be felt at local level. The opening of a large quarry may substantially affect the adjacent environment. The closing of a quarry can cause a negative impact in local economy. In a larger scale, the decision of a country to reduce production of a resource can cause a greater pressure in an adjacent country to cover the deficit. The decisions on the

[Page 7-4]

exploitation of mineral resources become more complex because the countries do not have only one channel to resolve these problems. The Ministers of the Environment are commonly responsible for the environmental impact of the extraction. At the same time the Departments of Industry are concerned about the impact of the exploitation of the resources on an industrial basis of the region, including the opportunities of employment. In the same way, the movement of a larger quantity of massive volume has an impact on the transportation and the Ministries of Transportation, as also the abundance or scarcity of the material required for the construction of roads. Without a general view where they can be beneficial for one economic sector and at the same time cause serious deterioration to others, or they can be beneficial for a country or region or adverse for others".

"Naturally, the integral subject of "sustainability" was discussed in the Rio Summit. There all the nations subscribed the concept of sustainable development and acknowledged the need of developing a national strategy for its implementation. Mostly, these strategies have centered on biological resources and in truth there are some who maintain that the concept of sustainable resources cannot be applied to non renewable mineral resources. On the contrary, it can be sustained that even the mineral resource are "renewable", provided a geologic cycle of millions of years is considered, or in some cases, hundreds of millions of years".

"However, accepting that the opinion of the majority considers acceptable a cycle of renewal of not more than some generations, we must consider the application of sustainable development within a human and not geologic cycle".

"Mineral resources, sand, clay or gold, are finite but at the same time the figures can be misunderstood. This is particularly the case of the reserves (usually expressed in tons) which are projected to a number of years in which a mine or quarry can be worked at the existing production rates. Thus, it is stated that a mine has "twenty years of mineral reserves". However, in 20 years, the mine is still projected for another twenty years, because more reserves have been detected through geological research, or perhaps a new technology has made it possible to work a mine that before was not economical. This is a form of sustainability in the short...