The Social and Economic Impacts of Mining:
Experiences from Developed and Developing Countries

Jeff Barham

SMEC, International
Manager for Enviroment & Planning, SMEC
PTY Australia.

Abstract

Mining can be an intrusive activity and the mining industry is often criticized for the environmental impacts that result from its operations. The sustainability of the industry is also questioned. Critics of the industry often assert that after mining ceases, long standing environmental impacts remains. Moreover, there are minimal positive effects to take from the industry which causes significant environmental impacts.

The reality is more complex and removed from the hyperbole and stereotypes stated above. Highlighting the positive and negative effects of exposing the environment to mining operations can be difficult to quantify. On the positive side many social and economic benefits of mining can be in tangible.

Through the use of case studies, this paper will show that with rigorous assessment and innovative operational and management methods, mining can be a positive for the environment. In particular, there are significant social and economic benefits that can result.

The first case study is the Phulbari Coal Mining Project in Bangladesh. This project will see the introduction of a large open-cut coal mine to an under-developed, remote rural community in north western Bangladesh. There have been inevitable social impacts on local residents, through property resumption, resettlement and the changing nature of the social environment. These impacts have been minimized through the comprehensive assessment undertaken by SMEC Australia and the innovative approach taken to social impact management.

The second case study is the expansion of gold mining operations at the Superpit gold mine at Kalgoorlie in Western Australia. At this location the expansion of Australia’s largest gold mine was planned close to the town and in conjunction with the nearby landowners. The development of the mine allowed the continuation of an economic generator for the town which directly and indirectly supported a considerable part of the town’s population

The conclusions of this paper will be that mining in fact can bring substantial social and economic benefits to local communities and that environmental impacts can be managed to acceptable levels.