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Determining the environmental costs of mining projects: A comprehensive quantitative assessment

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  • Badakhshan, Naser
  • Shahriar, Kourosh
  • Afraei, Sajjad
  • Bakhtavar, Ezzeddin

Abstract

Mining activities can have significant environmental costs, making mining uneconomical due to the high costs of preventing, reducing, or compensating for environmental impacts. To accurately evaluate the economic feasibility of a mine, it is essential to include the environmental costs in feasibility studies. However, quantifying environmental costs per ton of extracted ore is a significant challenge. This study proposes a framework-based methodology that considers critical factors such as the human development index, mining scale, location of the mine, mining method, type of mineral, and environmental and ecosystem sensitivities. Applying the methodology to the Songun copper mine dataset revealed that the environmental cost per ton of extracted materials was $0.02927 and $0.02145 for open-pit and block-caving sections, respectively. The difference in costs is due to the higher environmental impact of open-pit activities, requiring higher costs to prevent, reduce, and compensate for environmental impacts. The methodology provides a simple approach applicable to other mines, enhancing economic evaluations and reducing uncertainties in feasibility studies. Ultimately, the study contributes to sustainable mining practices by improving the accuracy of environmental cost assessments.

Suggested Citation

  • Badakhshan, Naser & Shahriar, Kourosh & Afraei, Sajjad & Bakhtavar, Ezzeddin, 2023. "Determining the environmental costs of mining projects: A comprehensive quantitative assessment," Resources Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jrpoli:v:82:y:2023:i:c:s0301420723002726
    DOI: 10.1016/j.resourpol.2023.103561
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    References listed on IDEAS

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    1. Tikoudis, Ioannis & Farrow, Katherine & Mebiame, Rose Mba & Oueslati, Walid, 2022. "Beyond average population density: Measuring sprawl with density-allocation indicators," Land Use Policy, Elsevier, vol. 112(C).
    2. Amir Jafarpour & Siamak Khatami, 2021. "Analysis of Environmental Costs’ Effect in Green Mining Strategy Using a System Dynamics Approach: A Case Study," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-18, July.
    3. Sidorenko, Olga & Sairinen, Rauno & Moore, Kathryn, 2020. "Rethinking the concept of small-scale mining for technologically advanced raw materials production," Resources Policy, Elsevier, vol. 68(C).
    4. Carlos Mestanza-Ramón & Jefferson Cuenca-Cumbicus & Giovanni D’Orio & Jeniffer Flores-Toala & Susana Segovia-Cáceres & Amanda Bonilla-Bonilla & Salvatore Straface, 2022. "Gold Mining in the Amazon Region of Ecuador: History and a Review of Its Socio-Environmental Impacts," Land, MDPI, vol. 11(2), pages 1-22, February.
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    Cited by:

    1. Esmailzadeh, Saghar & Bakhtavar, Ezzeddin & Mokhtarian-Asl, Mojtaba & Sadiq, Rehan & Hewage, Kasun, 2023. "Mathematical modelling of waste rock management through incorporating open-pit waste rocks in underground stope filling: An environmental approach," Resources Policy, Elsevier, vol. 85(PB).
    2. Samadi, Mahdi & Bakhtavar, Ezzeddin & Hu, Guangji & Hewage, Kasun & Sadiq, Rehan, 2023. "Assessment of mine post-closure strategies by integrating evidential reasoning and fuzzy cognitive maps: Toward sustainable mining policy," Resources Policy, Elsevier, vol. 83(C).

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