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Mining and sustainable development: territorializing the mining industry

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  • Paulo De Sa

Abstract

The mining industry today faces a new set of environmental, social, economic, and political challenges. Despite efforts deployed by companies to improve their sustainable practices, and the proliferation of international initiatives aiming at enhanced sector management governance, mining is again being challenged. Centralized management and contradictory legal and institutional arrangements governing public sector institutions—especially the relation between the mining and the environmental authorities—create tensions between central governments and subnational authorities, mandated to manage territories in the context of decentralization. Given the lack of alignment in dealing with mining’s environmental, socio-economic, and territorial impacts, central government’s top-down decisions are becoming difficult to enforce. The politic dimension of the environmental and social impact assessment processes, in the context of poor inter-institutional coordination, accentuated the lack of trust in the formal procedures of consultation and increased the number of conflicts around projects. Revenue sharing mechanisms introduced by central governments to reduce tensions mostly failed to achieve their objectives. On the contrary, they often created new sources of conflict. To overcome this challenge, mining legislation must be harmonized with other sectors and adapted to territorial management. This requires participatory approaches to define integrated legal and institutional frameworks to manage the territories’ natural resources in the context of coherent decentralization processes. It also calls for the aligned intervention of different levels of government using the Municipality as the relevant coordination space.

Suggested Citation

  • Paulo De Sa, 2019. "Mining and sustainable development: territorializing the mining industry," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 131-143, July.
  • Handle: RePEc:spr:minecn:v:32:y:2019:i:2:d:10.1007_s13563-018-0149-8
    DOI: 10.1007/s13563-018-0149-8
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    References listed on IDEAS

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    1. Kemp, Deanna & Owen, John R., 2013. "Community relations and mining: Core to business but not “core business”," Resources Policy, Elsevier, vol. 38(4), pages 523-531.
    2. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
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    Cited by:

    1. Yıldız, Taşkın Deniz, 2020. "Waste management costs (WMC) of mining companies in Turkey: Can waste recovery help meeting these costs?," Resources Policy, Elsevier, vol. 68(C).
    2. Yıldız, Taşkın Deniz, 2020. "The impacts of EIA procedure on the mining sector in the permit process of mining operating activities & Turkey analysis," Resources Policy, Elsevier, vol. 67(C).
    3. Olga Janikowska & Joanna Kulczycka, 2021. "Impact of minerals policy on sustainable development of mining sector – a comparative assessment of selected EU countries," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(2), pages 305-314, July.
    4. Yıldız, Taşkın Deniz, 2021. "How can the effects of EIA procedures and legislation foreseen for the mining operation activities to mining change positively in Turkey?," Resources Policy, Elsevier, vol. 72(C).

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    More about this item

    Keywords

    Sustainable development; Mining policy; Revenue sharing; Decentralization; Territorial order;
    All these keywords.

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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