Tuesday, June 15, 2010
Blinding Lure, Dirty Lucre
By M H Ahssan
Extracting enough gold to forge a wedding band leaves behind at least 20-30 tons of waste and environmental devastation. Gold mining wreaks havoc on the environment and humans alike, but some precautionary measures and fair practices can help minimize the damage.
Gold has held an allure for humans since time immemorial. One of the core quests of alchemy (before chemistry came to be recognized as a well-established science) was the transmutation of lead to gold. However, notwithstanding the many important insights alchemy did eventually provide to its successor, turning lead into precious gold was not one of them. The saying, “if you can’t grow it or hunt it, you have to mine it”, is true in the case of gold. Mining for gold goes back centuries; evidence for this may be found in Egyptian hieroglyphs from as early as 2600 BC. It is said that gold helped finance the growth of the Roman Empire. The European exploration of the Americas was driven by reports of gold ornaments displayed in great profusion by the Native American peoples.
Closer home, Indians are known for their obsessive and compulsive fascination for gold. India is the largest importer and largest consumer of the yellow metal as Indians buy about 25 percent of the world's gold. In 2008, India imported around 400 tons of it. About 80 percent of the world’s extracted gold is fashioned as jewelry.
The environmental cost
However, most of us don't know or don't think about the environmental cost of the metal. For instance, extracting enough gold to forge a solitary, no-frills wedding band ultimately translates into roughly 20-30 tons of waste (estimates vary). At some mines in Nevada (USA), 100 tons or more of earth have been excavated for a single ounce (about 28 grams) of gold.
The waste is of two forms: redundant rock, which is typically piled as flat heaps in locations near the mining site and the effluent or tailings which are a result of chemical processing of the mined ore.Sulphides in the redundant rock react with oxygen, making sulphuric acid which frees heavy metals like cyanide, cadmium, lead and mercury harmful to people even at miniscule concentrations (cyanide and mercury are used to separate gold from the rock.) The tailings component is typically a thick slurry laced with cyanide, aluminum, copper, lead, and mercury; enough to decimate fish populations of water environments it is disposed of into.
Disposal of wet tailings into water bodies has been effectively banned in developed countries but it continues to be practiced in most (if not all) developing nations. There is also a very real danger of surface water (i.e. lakes, streams, etc.) and groundwater table contamination on account of these heavy metals.
For example, Peruvian environmentalists say mercury released at La Rinconada (a city in the Peruvian Andes located near a gold mine) and the nearby mining town of Ananea has contaminated rivers and lakes more than 100 miles away. Sometime 2000, in Romania, gold mine waste spilled into a tributary of the Danube River killing more than a thousand tons of fish and giving rise to a plume of cyanide which ultimately travelled 2,500 kms to the Black Sea.
In fact, gold mining generates more waste per ounce than any other metal and the effects are startling. Mining for gold has left huge gouges on the face of the earth, so massive that they can be seen from space.
Health issues
In September 2000, Down To Earth quoted a study titled “Pollution due to mining waste at the Kolar Gold Fields” conducted by the Department of Geology, Bangalore University. Respiratory ailments, soil and water contamination, thick blankets of dust, withering of coconut trees and changes in land pattern use are some of the common features of the urban area around Kolar Gold Fields in Karnataka. At least 13 major residue dumps accumulating about 60 million tons of mine waste occupy 15 per cent of the total land in the township near the gold fields. Many areas are reported to have become infertile because of soil contamination. They contain a percentage of heavy metals enough to retard plant growth.
Similarly, according to another report in 2008, nearly seven years after the closure of these mines, the people of this region continue to face serious environmental and health problems, particularly in July and August, due to the Aashadha winds that carry with them cyanide particles from the dust piles in the abandoned mines. When the mines were operational, a layer of red soil used to be put over these dust piles before the onset of Aashadha to prevent the cyanide particles from being carried away by the heavy winds. Now that the mines have been closed, the mitigative measures have ceased as well.
The social cost
There are reports of entire families on Ghana's ancient Gold Coast carry on their own hunt for gold. Dubbed by the large miners as “illegal miners” and the United Nations (specifically, United Nations Industrial Development Organization or UNIDO) as “artisanal” or “small-scale miners,” these people from socially and economically marginalized communities turn to mining to escape acute poverty, unemployment, and landlessness. In some cases, their homes and farms may be ‘acquired’ for large-scale gold mining.
While compensation is promised to them, it may take a year or two to kick in. Till then, forced to eke out a bare livelihood mostly in a kind of lottery system, they resort to crude methods to separate any flecks of gold that may be there in the discarded waste rock using mercury. In the process, destroy themselves slowly as well as their environment. The shanty towns which inevitably come up around the large-scale mining sites only serve to add to the problem. Given their illegal and therefore unrecognized nature, they lack basic amenities like garbage disposal and water supply and sanitation, becoming another unsightly blot on the landscape.
Habitat loss
According to the World Gold Council, while estimates of numbers engaged in artisanal mining vary widely, they range between 13 and 20 million men, women and children from over 50 developing countries. Indeed, it is believed that as much as a quarter of the world’s gold is supplied by artisanal miners. Their efforts to earn themselves a daily wage have resulted in huge (and overlooked) habitat loss and destruction.
For example, huge patches of land (some reportedly measuring 50 square kilometers) -- once home to lush trees in the island of Borneo in Indonesia -- are being swiftly rendered treeless and lifeless pits of waste. Incidentally, the island is highly famed for its rich biodiversity. Combined with heavy pressures from the logging lobby and need for cheap power through hydroelectricity and relentless mining activity, it is hard to imagine if Borneo will manage to retain its crown.
Consider another example. In 2007, Newmont Mining Corporation decided to foray into gold mining in Indonesia. The site is incidentally located in the rainforest, home to more than a thousand tribes of native Indian peoples and endemic wildlife species. Backed by the World Bank, Newmont compensated the farmers who were evicted from their land. It offered training for new jobs, like growing edible snails and making soap. It built new concrete and tin-roofed houses to replace homes made of mud. In 2007, Newmont paid close to $390 million in royalties and taxes and spent a reported $600 million in minimizing environmental damage. Till 2007, it had created 8,000 jobs for Indonesians.
In spite of all these “environmental and social mitigation efforts”, there continues to be widespread opposition in Indonesia to the company and its mining activities. A commonly asked question is, “What will be left of our environment when the mine is finished?”
In March 2009, Newmont released the results of an independent, 18-month international review of the company's ability to manage relationships with local communities. While the study deemed Newmont's current standards and policies to be "generally very good", it also noted (perhaps somewhat euphemistically) that "it is apparent there are significant gaps between the language of Newmont's standards and practices at the mine sites".
The study was generated by a 2007 resolution approved by nearly 92 percent of Newmont's shareholders to initiate a review of the company's policies and practices related to community opposition to its operations. The shareholder resolution was filed by Christian Brothers Investment Services and members of the Interfaith Center on Corporate Responsibility.
Mercury dumping ground
By the 20th century, though the big players in gold mining replaced mercury with cyanide, small-scale miners continued using it since it is faster and cheaper than the conventional panning. Small-scale gold mining is the second-worst source of mercury pollution in the world, after the burning of fossil fuels. According to a 2006 United Nations report, miners in Indonesia, the Philippines, Colombia, India, Tanzania, and Brazil are found to have mercury levels up to 50 times above the World Health Organization limits. United Nations observes that symptoms such as reduced motor skills, fatigue and weight loss are routine at mining sites. The European Union has agreed to ban mercury exports from 2011.
In developed countries, use of mercury in various products is either banned or regulated. No concrete initiative has however been taken by the Government of India to address the issue. Mercury and its various compounds are actually “free” for import to our country. While the conditions of its import are listed under the Hazardous Waste (Management and Handling) Rules -- against a license and only for the purpose of processing and reuse – it is in effect a green signal for multinational industries to India as one of the dumping grounds for cheap and environmentally destructive mercury. Under such a scenario, the government’s clamping down on mercury use in small-scale mining would not appear on the radar.
India’s quest to get intense
Why should these facts about gold mining bother us? After all, we just import the metal; we do not mine it here to the extent other countries do (the domestic production of gold is only about two tons per annum compared to Australia’s annual production of about 280 tons). That’s about to change though. New Delhi has big plans to fuel growth in the mining sector and is looking to open investment in gold mining in the country – and in a big way.
However, India’s environmental track record in mining has been anything but stellar. And this is something that requires close attention in light of the planned increased forays into gold mining. Even with the comparatively minuscule amounts of gold mining done so far, we have tripped up on environmental considerations.
Geologically, India’s terrain (Karnataka and Andhra Pradesh in particular) is very similar to those in other parts of the world where there have been huge gold finds. India is estimated to have 20,000 tons of gold and diamond reserves spread over several states. The estimated gold ore reserves in Andhra Pradesh alone are pegged at about 6.8 million tons.
Spiraling prices of this often volatile commodity (235 percent in the past eight years and still rising) and improved extraction technologies have suddenly turned even previously uneconomical sites viable into opportunities for gold mining. With the current market price for gold hovering over Rs 18,000-18,500 per 10 gram, the break-even point for a production rate of two tons of gold per annum for an open cast mine is Rs 8,000 per 10 gram and Rs 14,000 for underground mining. Many Indian and international mining companies are jumping into the fray. State governments could reportedly earn royalties of 20 percent (perhaps more) from gold mining.
Mining for gold alters landscapes irrevocably, so much so that the land becomes unfit for any other use thereafter. Where does this lead us to? Do we not mine for gold at all?
That seems a bit unthinkable. After all, gold constitutes an “emotional purchase” for Indians – a must-have factor and an almost-instinctive craving to build and nurture the family nest egg. Some may even argue that there is always a price to be paid for any kind of development and gold mining is only one in a basket of such activities. Besides, the “business case” is much too strong with probable expectations of $1 billion over the life of a mine and profits of $200 to $300 million (i.e. returns of 25-30 percent).
This is where environmental and social concerns suffer a setback – an obscenely gross one. Lax environmental regulations, poor implementation of short-sighted laws, toothless environmental protection agencies, and legal loopholes in developing countries (especially India) make up a sure-shot recipe for disaster.
For example, guidelines for arsenic in drinking water must at least match those of the World Health Organization (i.e. in no case should arsenic levels exceed 0.01 mg/L). Currently, the Central Pollution Control Board of India does not even list arsenic in its list of water quality criteria. The next best available indicator for these standards in the country – the Bureau of Indian Standards (IS: 10500) – lists a limit of 0.05 mg/L, five times more than the WHO limits.
Arbitrary environmental clearance
India’s tryst with the Environment Impact Assessment (EIA) Notification (2009) and its meaningful implementation portend many a disaster if we don’t seriously rethink the way we do business. Intended as an “environmental clearance” procedure where projects will be assessed for clearance depending on their potential for environmental harm, it is not an exaggeration to say that the process is esoteric and arbitrary.
The clearance process begins with the compilation of an Environmental Impact Assessment Report by the project authority (i.e. the company wishing to launch the project) with the aid of 'EIA consultants', followed by public hearings which are typically hotly contested by the communities affected by the project (but to little avail). These are accompanied by a series of dispatches from the state departments and eventually, and most often, a 'clearance letter' is issued by the Ministry of Environment and Forests (MoEF).
The environmental clearance is granted based solely on the reliance on data about environmental impact from the project proponent. The clearance includes an accompanying set of conditions that have to be complied with and monitored by the Regional Offices of the MoEF and sometimes the State Pollution Control Boards and other State Departments.
In a recent report Calling the Bluff - Revealing the State of Monitoring and Compliance of Environmental Clearance Conditions by Kanchi Kohli and Manju Menon of Kalpavriksh, the authors qualify their analysis of environmental compliance in the country with some scary facts. According to them, the compliance and monitoring reports are not based on actual site verification; the project authorities do not always report non-compliance in their reports; regional offices often draft their monitoring reports to mimic the compliance reports that project authorities file; and not all projects are monitored and monitoring is done on priority due to inadequate field staff in regional offices.
It would appear that the MoEF has relinquished its responsibility. In fact, its officials admitted as much in one RTI response to having no database on the extent of compliance of the 6000-odd projects it has cleared. With such a state of affairs, it is not hard to understand why environmental abuse is so rampant. Important questions related to mine closure – the lifespan of a mine could last for 15-20 years – would also remain unacknowledged and unanswered.
Community welfare, the way forward
Socially too, the benefits of mining must reach the communities it affects on ground zero. It must be recognized and acknowledged that such projects are bound to unalterably change the lives of these people. Their resettlement and rehabilitation must transcend mere lip-service.
In fact, the government mandating a minimum percentage of the mining company’s annual (not a one-time allotment) revenues towards community development (over and above a budget for minimization of environmental issues arising from the project) would be a good first step.
Fair trade jewelry
One avenue for social empowerment of artisanal gold miners is ethically sourced jewelry. Also termed as fair trade jewelry, this practice has been slowly making inroads in the United States. Since 2004, the “No Dirty Gold” Campaign, the brainchild of the environmental group Earthworks, has been busy obtaining pledges from top jewelry retail firms from around the world on responsible sourcing throughout their supply chains for gold used in their products.
More than 60 jewelry companies representing USD 14.5 billion in sales, including Sears and Tiffany & Co., have committed to purchase cleaner sources of gold by endorsing the Golden Rules, a set of principles for more responsible mining. These companies are calling on the gold mining industry to move away from current practices that harm local communities and generate millions of tons of toxic waste.
While such initiatives (and responses to them) may appear ‘pre-nascent’ in India, the fact that they target entire supply chains gives hope that the industry will be driven to adopt environmentally cleaner and socially responsible practices in the not too distant future.
Innovative extraction methods
Research and development into cleaner methods of extraction is also a must. Not that these technologies do not exist; they do, but they also require some fine-tuning to adapt them to the conditions of the project site. For example, bioleaching is being increasingly used for the treatment of refractory (generally defined as ore containing gold which cannot be satisfactorily recovered by conventional methods) gold deposits by various mining companies throughout the world. Here, extraction of gold is facilitated by the metabolism of certain microbes and can significantly reduce the extent of pollution caused by conventional extraction methods.
Learning from the past
As far as gold mining is concerned, we have an opportunity to learn from the mistakes committed by certain developed countries in their own backyard. We have a whole series of examples of where things have gone wrong (and where they are still going wrong) from other developing countries. We need to use these insights to our advantage, and quickly.
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