Mining and Critical Ecosystems: Mapping the Risks
Like many natural resource sectors, the hardrock mining (metals and precious stones) industry has been under considerable
pressure in recent years to improve its environmental and social performance. The financial and reputational costs of mining in areas that are environmentally and/or socially vulnerable have been high for both natural resource companies and the companies that insure and finance them. For example, in 1996 the gold mining company Placer Dome reported a $65 million loss due largely to a spill at its Marcopper mine in the Philippines.
The framework developed for this study is not intended to be used as a tool for making final decisions on siting, investment, or “no-go” areas for mining projects. Data uncertainties and the qualitative nature of the methodology make it unsuitable for these purposes. While it does not provide a rigorous, quantitative risk assessment methodology, the framework can be used as a first step to highlight areas that may be environmentally or socially vulnerable to mining, and which may require further assessment. The framework also goes beyond most other risk assessment tools in the mining sector to incorporate indicators of governance capacity as well as other environmental and social indicators for assessing mining risk, hazards, and vulnerabilities.