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Why have so many tailings dams failed in recent years?

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  • Armstrong, Margaret
  • Petter, Renato
  • Petter, Carlos

Abstract

The number of tailings dam failures has doubled in the past 20 years. Advances in mining technology have made it possible to exploit lower grade deposits despite decreasing commodity prices, which means disposing of more rejects and putting more pressure on tailings facilities. Our analysis of four recent tailings dam failures in countries with a strong mining tradition (Los Frailes in Spain, Mt Polley in Canada, Samarco and Brumadinho in Brazil), showed that production had been increased and/or cost cutting measures had been put in place before the accidents. In this paper, we postulate that the compensation packages offered to middle management which actively encourage managers to cut costs and increase production so as to increase their annual bonuses are a key factor in the rising number of serious accidents. Newmont Mining's compensation package contains a component that is equivalent to the options in traders' bonuses. As is well known, this led to excessive risk-taking in banks and hence to the subprime crisis and the global financial crisis. We argue that year after year managers keep taking risks with a low probability of occurrence but with potentially catastrophic consequences. These risks are compounded by shortages of experienced staff due to the cyclic nature of the industry and the retirement of the baby-boomer generation.

Suggested Citation

  • Armstrong, Margaret & Petter, Renato & Petter, Carlos, 2019. "Why have so many tailings dams failed in recent years?," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    • Handle: RePEc:eee:jrpoli:v:63:y:2019:i:c:40
    DOI: 10.1016/j.resourpol.2019.101412
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    Cited by:

    1. Mariane Paulina Batalha Roque & José Ambrósio Ferreira Neto & Wilson Cruz Vieira & Bianca Diniz Rocha & Arthur Telles Calegario, 2023. "Social vulnerability to environmental disasters in the Paraopeba River Basin, Minas Gerais, Brazil," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 118(2), pages 1191-1210, September.
    2. França Pimenta, Adriano Augusto & Demajorovic, Jacques & Saraiva de Souza, Maria Tereza & de Carvalho Pedro, Samara & Pisano, Viviane, 2021. "Social licence to operate model: Critical factors of social acceptance of mining in the Brazilian Amazon," Resources Policy, Elsevier, vol. 74(C).
    3. Paolo Mazzanti & Benedetta Antonielli & Alessandra Sciortino & Stefano Scancella & Francesca Bozzano, 2021. "Tracking Deformation Processes at the Legnica Glogow Copper District (Poland) by Satellite InSAR—II: Żelazny Most Tailings Dam," Land, MDPI, vol. 10(6), pages 1-20, June.
    4. Saes, Beatriz Macchione & Muradian, Roldan, 2021. "What misguides environmental risk perceptions in corporations? Explaining the failure of Vale to prevent the two largest mining disasters in Brazil," Resources Policy, Elsevier, vol. 72(C).
    5. Carlos Cacciuttolo & Alex Marinovic, 2023. "Experiences of Underground Mine Backfilling Using Mine Tailings Developed in the Andean Region of Peru: A Green Mining Solution to Reduce Socio-Environmental Impacts," Sustainability, MDPI, vol. 15(17), pages 1-27, August.
    6. Carlos Cacciuttolo & Deyvis Cano, 2023. "Spatial and Temporal Study of Supernatant Process Water Pond in Tailings Storage Facilities: Use of Remote Sensing Techniques for Preventing Mine Tailings Dam Failures," Sustainability, MDPI, vol. 15(6), pages 1-32, March.
    7. Sally Innis & Negar Ghahramani & Nahyan Rana & Scott McDougall & Stephen G. Evans & W. Andy Take & Nadja C. Kunz, 2022. "The Development and Demonstration of a Semi-Automated Regional Hazard Mapping Tool for Tailings Storage Facility Failures," Resources, MDPI, vol. 11(10), pages 1-20, September.
    8. Thiago Christiano Silva & Fabiano José Muniz & Benjamin Miranda Tabak, 2023. "The Impact of Government Disaster Surveillance and Alerts on Local Economic and Financial Conditions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 559-591, February.
    9. Holley, Elizabeth A. & Smith, Nicole M. & Delgado Jimenez, Jeison Alejandro & Cabezas, Isabel Casasbuenas & Restrepo-Baena, Oscar Jaime, 2020. "Socio-technical context of the interactions between large-scale and small-scale mining in Marmato, Colombia," Resources Policy, Elsevier, vol. 67(C).
    10. Macedo, Suélem Viana & Valadares, Josiel Lopes & de Melo, James Rocha Rodrigues, 2021. "The formulation of Brazil's mineral policy: A multiple streams explanation," Resources Policy, Elsevier, vol. 74(C).
    11. Cox, Benjamin & Innis, Sally & Mortaza, Adnan & Kunz, Nadja C. & Steen, John, 2022. "A unified metric for costing tailings dams and the consequences for tailings management," Resources Policy, Elsevier, vol. 78(C).

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