Mining,while environment-degrading,is also a necessary evil. And over the decades,systems have been built around mining,which seek (with varying success) to place extremely restrictive conditions in respect of areas in which mining is allowed,and the amelioration measures for controlling pollution of various types.
It is now more in the developing world,where penetration of modern technologies have not taken place (ironically,often because of the perception that some of it is labour-displacing),that mining is now often seen as an undesirable activity,to be placed under still more severe restrictions. Much of the change in the perceptions in the developed world has been driven by technological improvements which are the result of clear legislation and robust enforcement of measurable indicators publicly disclosed; and ultimately guaranteed by the existence of informed and enlightened local communities. As a result,on the environmental side the issues are fairly clear (to the extent of our understanding of the science,at least) and the costs are computable. Indeed probably they already stand internalised to a considerable extent.
Here local conditions continue to pose problems in adopting technological solutions already in place elsewhere. Not only is the range of mining operations diverse,ranging from small quarry leases and labour-intensive open cast mining to semi-mechanised and mechanised mining,but the problems arising out of population pressures,and competing requirements for land and water,make necessary the extensive modification of existing technologies or even developing new ones.
The lack of incentives in the current mining legislation and a permissive,even lax,concession regime that does not transparently prohibit granting concessions that are probably environmentally unsustainable by their very nature and size,which then does not comprehensively enforce plans designed to control their impact,and the difficulties faced in understanding and implementing environment-related legislation in the context of mining,are clearly areas for focus in any reform of the mining sector.
While the international mining may have made some significant progress in the environmental arena,issues relating to stakeholder communities and local populations continue to prove fairly intractable the world over. However,the fact that international companies operating in the developing world are now increasingly compelled to listen to standards set by investors used to higher levels of social responsibility in their own backyards is new. Inevitably,therefore,there will be increasing pressures to develop solutions to address community issues. But,as major mining activities were first initiated from within the government,through public mining institutions,government rather than industry may have to take the lead to kick-start the process,acknowledging that voluntary Corporate Social Responsibility (CSR) initiatives may not really take off.
It is not feasible to abjure mining as an activity. There is no alternative but to squarely address its negative impact and define the manner in which its benefits can be channelled and adverse effects minimised,and local communities protected and helped.
In other words,in addition to providing for the legal and environmental licence to mine,the state must create mechanisms to allow social licences to mine,within a sustainability framework that addresses not only the environmental issues (which it already attempts to do) but also community-related issues which have so far not really been squarely addressed. And it must do so not only through policy and legislation,but also by example,treating local communities as partners.
The reasons why this can no longer be postponed or swept under the carpet with vague undertakings of local area development and lump-sum compensation are becoming increasingly apparent. Tribal areas in particular are not only areas of substantial forest and mineral wealth. They are also the areas where opposition,and the way in which the expectation that benefits from these activities will flow to local areas is being frustrated,is taking the severest and most dangerous forms.
It is now more than ever necessary for the new mining legislation to address these issues in particular,how at least a significant part of the royalties and mining revenues will be channelled to benefit local communities; how local communities can be made direct and visible stakeholders in mining projects; and how they can take part in decisions on mine closures and rehabilitation.
Also,mining companies will need to proactively disclose information regarding mining plans,progressive mine closure activities and environmental indicators at levels and standards that would in any case be applicable to public mining institutions under the RTI Act. And there need to be independent bodies (including at least one quasi-judicial in nature,and outside the government) to ensure that these elements of the framework operate and help produce the more desirable outcome of local communities seeing mining projects as opportunities for growth rather than threats.
The writer is Special Secretary in the Ministry of Mines,Government of India. The views expressed here are personal
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