The Importance of Environmental Management in Mining
A mine will always impact the environment, but the question is to what degree?
The responsible management of natural resources and ecosystems such as soils, plants, animals, water and air, and the services they provide, is central to the efforts of any society seeking to become more sustainable.
The Intergovernmental Forum on Mining “IGF” has identified four issues that governments could effectively manage to reach sustainability goals.
- Water Management
- Biodiversity and Ecosystem Services
- Mine Waste Management
- Emergency Preparedness
These four key issues are critical for governments and communities to consider to ensure mining and the environment can coexist for the benefit of all.
Issue #1: Water Management
According to the IGF, U.S. mining operations used 5,526 million cubic meters of water, amounting to 1% of the country’s total water use in 2015.
Mining is a very water intensive industry. In mineral processing, slurry transport, dust suppression, and to meet the water needs of employees, large-scale mining operations use significant amounts of groundwater and surface water across the mine life cycle.
Mining operations need water to process ore and run camp operations. Mines also need to manage water that comes in contact with operations, through rainfalls and runoff.
The protection of water resources applies to both surface and groundwater, and these water resources are increasingly under strain due to:
- Climate change
- Variable precipitation
- Growing populations, increased industrial and agricultural activity
Competing demands for water resources from the mining sector, agriculture, households, from other industries and sectors, and for conservation and leisure—ensure that governments will always play a critical role in water management throughout the life of a mine, not only at the site itself but across watersheds and beyond national borders.
Issue #2: Biodiversity and Ecosystem Services
Mining projects have the potential to impact biodiversity and ecosystem services throughout their lifecycle. Understanding how mining can impact biodiversity is vital to mitigate the harmful impacts of mining on the biodiversity and ecosystem
Biodiversity delivers many benefits to their surrounding communities known as ecosystem services—and a mining project has direct and indirect impacts before, during and after mining operations on these services.
- Habitat loss
- Ecosystem fragmentation and degradation
- Water, air, soil and noise pollution
- Human migration seeking opportunities
- Increased hunting, fishing, gathering and land clearance for agriculture
- Unintentional introduction of invasive species to an ecosystem
Governments, when considering the merits of a proposed mining project, will have to weigh the economic and development needs of the country and the local community against its conservation and environmental goals.
Issue #3: Mine Waste Management
Mining moves and processes large amounts of materials to extract metals. The excess material is known as mine waste. Mine wastes can contain minerals that are reactive which could be released from the rock when it is mined, crushed, and exposed to air and water.
Mine waste makes up the largest amount of material that is mined. The strip ratio defines how much waste rock there is compared to valuable ore. For example, a 2:1 strip ratio means that mining one tonne of ore will require mining two tonnes of waste rock.
Waste management in mining is complex and incorporates a range of disciplines, including geology, geochemistry, civil engineering, and geotechnical engineering.
Waste rock storage facilities, leach pads, and tailings storage facilities are large structures that must be carefully engineered to ensure they are stable over time and the safety of workers and the public.
Governments should set international standards within their own jurisdictions to ensure the proper construction and maintenance of waste rock facilities.
Issue #4: Emergency Preparedness
Emergency preparedness involves understanding the likelihood of an emergency situation and its potential consequences, taking proactive action to prevent the hazard, preparing to mitigate emergency effects, responding appropriately, communicating effectively, and recovering afterwards.
This relates to:
- Industrial emergencies
- Natural and climate-related disasters
- Health emergencies
- Political and security risk
Governments have a strong role to play in emergency preparedness, ensuring that responses are swift, organized and coordinated, and that all relevant stakeholders, from local communities to staff, are safe and protected.
Resources and Communities
Mineable deposits occur in both convenient and inconvenient places, close to or distant from communities, close to or distant from water sources, and close or distant from farm land or ecologically sensitive areas.
Mining will always have an impact. The active and sustainable management of these natural resources before, during, and after mining will help to avoid negative impacts where possible and could even mean excluding mining.
A failure to manage the four issues of mining on the environment can threaten the viability of operations, but can also undermine the relationships between a mining company, affected communities, and all levels of government.
The Intergovernmental Forum on Mining “IGF” is creating the policy framework to address the importance of environmental management in mining.
The History of U.S. Energy Independence
This infographic traces the history of U.S. energy independence, showing the events that have shaped oil demand and imports over 150 years.
The History of U.S. Energy Independence
Energy independence has long been a part of America’s political history and foreign policy, especially since the 1970s.
Despite long being a leader in energy production, the U.S. has often still relied on oil imports to meet its growing needs. This “energy dependence” left the country and American consumers vulnerable to supply disruptions and oil price shocks.
The above infographic from Surge Battery Metals traces the history of U.S. energy independence, highlighting key events that shaped the country’s import reliance for oil. This is part one of three infographics in the Energy Independence Series.
How the U.S. Became Energy Dependent
Oil was first commercially drilled in the U.S. in 1859, when Colonel Edwin Drake developed an oil well in Titusville, Pennsylvania.
Twenty years later in 1880, the U.S. was responsible for 85% of global crude oil production and refining. But over the next century, the country became increasingly dependent on oil imports.
Here are some key events that affected America’s oil dependence and foreign policy during that time according to the Council on Foreign Relations:
- 1908: Henry Ford invented the Model T, the world’s first mass-produced and affordable car.
- 1914-1918: The U.S. began importing small quantities of oil from Mexico to meet the demands of World War I and domestic consumption.
- 1942: In efforts to save gas and fuel for World War II, the Office of Defense Transportation implemented a national plan limiting driving speeds to 35 miles per hour.
- 1943: President Roosevelt provided financial support to Saudi Arabia and declared Saudi oil critical to U.S. security.
- 1950: With 40 million cars on the road, the U.S. became a net importer of oil bringing in around 500,000 barrels per day.
- 1970: Twentieth century U.S. oil production peaked and President Nixon eased oil import quotas, allowing an additional 100,000 barrels per day in imports.
The U.S. economy’s increasing reliance on oil imports made it vulnerable to supply disruptions. For example, in 1973, in response to the U.S.’ support for Israel, Arab members of the OPEC imposed an embargo on oil exports to Western nations, creating the first “oil shock”. Oil prices nearly quadrupled, and American consumers felt the shock through long lineups at gas stations along with high inflation. Combined with rising unemployment rates and flattening wages, the increase in prices led to a period of stagflation.
Despite the energy crisis, U.S. oil production fell for decades, while the country met its increasing energy needs with oil from abroad.
The Rise and Fall of U.S. Oil Imports
Here’s how U.S. net imports of crude oil and petroleum products has evolved since 1950 in comparison with consumption and production. All figures are in millions of barrels per day (bpd).
|Year||Consumption (bpd)||Production (bpd)||Net imports (bpd)|
Net oil imports quadrupled between 1960 and 1980, marking the two biggest decadal jumps. Given that production was falling while consumption was booming, it’s clear why the U.S. needed to rely on imports.
Imports peaked in 2005, with net imports accounting for a record 60% of domestic consumption. Both imports and consumption fell in the years that followed. In 2009, for the first time since 1970, U.S. oil production increased thanks to the shale boom. It ascended until 2019 to make the U.S. the world’s largest oil producer.
As of 2021, the U.S. was a net exporter of refined petroleum products and hydrocarbon liquids but remained a net importer of crude oil.
The New Era of Energy
Oil and fossil fuels have long played a central role in the global energy mix. The U.S.’ reliance on other countries for oil made it energy-dependent, exposing American gas consumers to geopolitical shocks and volatile oil prices.
Today, the global energy shift away from fossil fuels towards cleaner sources of generation offers a new opportunity to use lessons from the past. By securing the raw materials needed to enable the energy transition, the U.S. can build a clean energy future independent of foreign sources.
In the next part of the Energy Independence Series sponsored by Surge Battery Metals, we will explore the New Era of Energy and the role of electric vehicles and renewables in the ongoing energy transition.
Ranked: Emissions per Capita of the Top 30 U.S. Investor-Owned Utilities
Roughly 25% of all GHG emissions come from electricity production. See how the top 30 IOUs rank by emissions per capita.
Emissions per Capita of the Top 30 U.S. Investor-Owned Utilities
Approximately 25% of all U.S. greenhouse gas emissions (GHG) come from electricity generation.
Subsequently, this means investor-owned utilities (IOUs) will have a crucial role to play around carbon reduction initiatives. This is particularly true for the top 30 IOUs, where almost 75% of utility customers get their electricity from.
This infographic from the National Public Utilities Council ranks the largest IOUs by emissions per capita. By accounting for the varying customer bases they serve, we get a more accurate look at their green energy practices. Here’s how they line up.
Per Capita Rankings
The emissions per capita rankings for the top 30 investor-owned utilities have large disparities from one another.
Totals range from a high of 25.8 tons of CO2 per customer annually to a low of 0.5 tons.
|Utility||Emissions Per Capita (CO2 tons per year)||Total Emissions (M)|
|Berkshire Hathaway Energy||14.0||57.2|
|American Electric Power||9.2||50.9|
|Florida Power and Light||8.0||41.0|
|Portland General Electric||7.6||6.9|
|Pacific Gas and Electric||0.5||2.6|
|Next Era Energy Resources||0||1.1|
PNM Resources data is from 2019, all other data is as of 2020
Let’s start by looking at the higher scoring IOUs.
TransAlta emits 25.8 tons of CO2 emissions per customer, the largest of any utility on a per capita basis. Altogether, the company’s 630,000 customers emit 16.3 million metric tons. On a recent earnings call, its management discussed clear intent to phase out coal and grow their renewables mix by doubling their renewables fleet. And so far it appears they’ve been making good on their promise, having shut down the Canadian Highvale coal mine recently.
Vistra had the highest total emissions at 97 million tons of CO2 per year and is almost exclusively a coal and gas generator. However, the company announced plans for 60% reductions in CO2 emissions by 2030 and is striving to be carbon neutral by 2050. As the highest total emitter, this transition would make a noticeable impact on total utility emissions if successful.
Currently, based on their 4.3 million customers, Vistra sees per capita emissions of 22.4 tons a year. The utility is a key electricity provider for Texas, ad here’s how their electricity mix compares to that of the state as a whole:
|Energy Source||Vistra||State of Texas|
Despite their ambitious green energy pledges, for now only 1% of Vistra’s electricity comes from renewables compared to 24% for Texas, where wind energy is prospering.
Based on those scores, the average customer from some of the highest emitting utility groups emit about the same as a customer from each of the bottom seven, who clearly have greener energy practices. Let’s take a closer look at emissions for some of the bottom scoring entities.
Utilities With The Greenest Energy Practices
Groups with the lowest carbon emission scores are in many ways leaders on the path towards a greener future.
Exelon emits only 3.8 tons of CO2 emissions per capita annually and is one of the top clean power generators across the Americas. In the last decade they’ve reduced their GHG emissions by 18 million metric tons, and have recently teamed up with the state of Illinois through the Clean Energy Jobs Act. Through this, Exelon will receive $700 million in subsidies as it phases out coal and gas plants to meet 2030 and 2045 targets.
Consolidated Edison serves nearly 4 million customers with a large chunk coming from New York state. Altogether, they emit 1.6 tons of CO2 emissions per capita from their electricity generation.
The utility group is making notable strides towards a sustainable future by expanding its renewable projects and testing higher capacity limits. In addition, they are often praised for their financial management and carry the title of dividend aristocrat, having increased their dividend for 47 years and counting. In fact, this is the longest out of any utility company in the S&P 500.
A Sustainable Tomorrow
Altogether, utilities will have a pivotal role to play in decarbonization efforts. This is particularly true for the top 30 U.S. IOUs, who serve millions of Americans.
Ultimately, this means a unique moment for utilities is emerging. As the transition toward cleaner energy continues and various groups push to achieve their goals, all eyes will be on utilities to deliver.
The National Public Utilities Council is the go-to resource to learn how utilities can lead in the path towards decarbonization.
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