M.M. Veiga et al.

/ Natural Resources Forum 25 (2001) 191202

PERGAMON

Natural Resources Forum 25 (2001) 191202

191

www.elsevier.com/locate/natresfor

Special series on mine closure

This article is the rst in a special series on economic, social, legal and technical aspects of mine closure to be published
by the Natural Resources Forum. The series will run thgoughout volumes 25 and 26 of NRF. We are grateful to
Mr. Roberto Villas Boas, one of our Editorial Advisers, for inspiring the work on this series.

Mining with communities

Marcello M. Veiga a, Malcolm Scoble a, Mary Louise McAllister b
a

Department of Mining and Mineral Process Engineering, University of British Columbia, Vancouver, BC, Canada
E-mail: veiga@mining.ubc.ca (M.M. Veiga)
b
Department of Environmental and Resource Studies, University of Waterloo, Ontario, Canada

Abstract
To be considered as sustainable, a mining community needs to adhere to the principles of ecological sustainability,
economic vitality and social equity. These principles apply over a long time span, covering both the life of the mine and
post-mining closure. The legacy left by a mine to the community after its closure is emerging as a signicant aspect of its
planning. Progress towards sustainability is made when value is added to a community with respect to these principles by the
mining operation during its life cycle. This article presents a series of cases to demonstrate the diverse potential challenges to
achieving a sustainable mining community. These case studies of both new and old mining communities are drawn mainly from
Canada and from locations abroad where Canadian companies are now building mines. The article concludes by considering
various approaches that can foster sustainable mining communities and the role of community consultation and capacity
building. q 2001 United Nations. Published by Elsevier Science Ltd. All rights reserved.
Keywords: Mining communities; Sustainability; Social issues in mining; Environment

1. Introduction
Globally and domestically, the politics of mining are
increasingly being played out at the local community
level, monitored closely by a variety of media and nongovernmental organizations around the world. Investors,
insurance companies, banks, governments, and citizens
increasingly want little to do with an industry that is seen
as indifferent to the present and future socio-economic and
biophysical welfare of local communities. This is a message
that has been communicated loudly by international organizations, such as the International Council on Metals and the
Environment (ICME) and the World Bank. Mining companies must now pursue their interests in a way that also
promotes those of the local communities in regions where
they are operating. The long-term sustainability and viability of both the mining industry and its related communities
justies serious attention. Improving environmental performance and mitigating environmental impacts of mining are

critical, but will not necessarily sufce to ensure the social

health and welfare of associated communities.
It is necessary, therefore, to go further in considering what
sustainability entails in the context of mining. Communications, education, cooperative decision-making and diversication are all important elements in long-term community
sustainability. These concepts are not new. Yet, as illustrated
by the following examples from around the world, translating
stated goals into reality may not be easy. Nevertheless, certain
initiatives in various locations are pointing to positive developments that can serve as models for a more sustainable future.
To be effectively realized, such a future requires that there be a
net improvement in the biophysical, social and economic
health of the local community wherever mining takes place.
2. Sustainable mining communities
A mining community is one where the population is

0165-0203/01/$20.00 q 2001 United Nations. Published by Elsevier Science Ltd. All rights reserved.
PII: S 0165- 020 3(01)00009- 5

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signicantly affected by a nearby mining operation. The

community may be associated with the mining venture
through direct employment or through environmental,
social, economic or other impacts. The community can
range in size from a city (which could be serving as a
base for distant `y-in y-out' operations, or a centre for
supplies and nancing) to a village (which relies extensively
on local mining). Communities vary in their prole and
perceptions about mining and needs. Their ongoing viability
is also of considerable importance to mineral-producing
countries. In Canada alone, there are 128 communities
that rely on mining (NRCan, 1999) while others benet
indirectly.
Mining communities around the world share several
common characteristics. Many older, well-established
mining communities have faced reduced employment
resulting from increased mechanization and automation or
declining commodity prices. Mining companies are seeking
economies of scale, and exploration and mining operations
are moving offshore, as reserves become depleted. In developing economies, serious challenges arise from lack of
economic security and stability, and from quality of life
issues. Many mining communities are in remote regions
with few opportunities for diversication. There are, therefore, numerous challenges to making a mining community
viable.
A sustainable mining community is one that could realize
a net benet from the introduction of mining that lasts
through the closure of the mine and beyond. In practice,
this would mean that the community adhered to `three
fundamental pre-requisites for sustainable societies'
outlined by George Francis (1999): `ecological sustainability, economic vitality, and social equity. As an ideal,
sustainability meshes well with the desires of most people
to achieve decent levels of health and well-being, in
pleasant surroundings, with strong community networks,
and a diversity of opportunities for work and fulllment'.
The challenge for any mining company is to engage in an
equitable partnership with the associated community and
thus leave a lasting legacy of sustainability and well-being
to the community, avoiding environmental degradation and
social dislocation. Mining communities in different geographic locations may differ widely in terms of culture,
political orientation, environmental characteristics and
collective attitudes towards resource development. Nevertheless, communities that have had a poor relationship with
a mining company tend to share certain common perceptions: that the mining operation is intruding into their
environment, culture and history. Such a feeling may be
particularly strong where there is no previous mining tradition and where benets have not been cooperatively determined nor equitably shared. To minimize this perception
and create a durable relationship is key to building a sustainable mining community. The following cases suggest that
while mining companies are increasingly aware of this
dimension and are taking initiatives, particularly in the

area of remediation, the industry still needs to develop

further and address appropriate principles of sustainability.
3. Cases of company/community relations
A widespread public perception of mining is of a lowtech, polluting and avaricious industry. In 1994, a US
opinion survey conducted by Roper Research, ranked
the mining industry in 24th place in terms of public popularity, below the tobacco industry (Prager, 1997). Mining
is seen as a hazardous activity, accompanied by acute
environmental impacts This view is perhaps strongest
amongst urban dwellers who have little awareness of
direct benets from mining, despite being the largest
consumers of its products. Rural communities may
welcome mining activities as an alternative source of
employment. Nevertheless, in all mining communities,
residents are demanding recognition of their right to
live in a healthy environment and to share the benets.
Recognition of the needs and rights of a community are
now becoming entrenched principles in public decisionmaking throughout the world. As the global environment
in which mining companies operate today is highly
visible, they need to have a good reputation as being
socially responsible. To achieve this, three fundamental
considerations need to be heeded.
Environmental impacts must not pose any unacceptable risk to associated communities;
Communications between the mining company and the
community must be transparent and effective; citizens
should be encouraged to share in decisions that directly
affect their futures; this will help mining companies
avoid risks to the sustainability of both their own
operations and the community;
Mine development must be perceived to bring a net
benet to the community (it is no longer enough to
simply mitigate impacts). To achieve this, community
diversication must be part of mine planning, development, operation and post-closure.
The following three sections will offer examples of
what can go wrong when these three essential aspects
are overlooked. At the same time, some alternative examples will be offered that point to a more productive,
holistic and cooperative relationship between mining
companies and their host communities.
3.1. The environmental impact of mining on communities
3.1.1. The Ok Tedi mine, Papua New Guinea
A prominent example of adverse biophysical impacts has
been the mining operation of Ok Tedi Mining Ltd. (OTML),
which has been operating since 1984 in Papua New Guinea
(PNG). It is owned by BHP Ltd (52%), the PNG Government (30%) and Inmet Mining Ltd (18%). BHP reported in

M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

1999 that Since the project began, it has not been able to
construct planned tailings or waste rock storage facilities.
As a consequence, these materials have been progressively
discharged to the river system under government permit.
During the reporting period, a total of 83 million tonnes
of material entered the river system from the mining operation, of which 15 million tonnes was subsequently removed
in the course of the dredging trial in the Lower Ok Tedi
(BHP, 1999). ENGOs 1 and community leaders have taken a
strong and united stance against what they have termed one
of the `world's worst mining disasters' (Mineral Policy
Center, 1999a). They noted that these kinds of mining practice would not be allowed in Canada or Australia; as such
they questioned why they were allowed in PNG (Friends of
the Earth Canada, 1997; Minerals Council of Australia,
1999).
A recent OTML mine waste management project considered the possible means to reduce the mine's environmental
impact with engineering, social and environmental evaluations, including a risk assessment. It studied four options
offering potential solutions, including closing the mine in
2000. It concluded that: the issues are complex, and none
of the options has identied a way to prevent mine waste
causing environmental damage. For example, the studies
show that the current projected environmental impacts on
the river system exceed those previously expected; dredging
will not have the environmental benets originally expected
and impacts on the river system will continue to worsen with
or without dredging; and early closure of the mine appears
to be the only option that will signicantly limit projected
environmental impacts. From a social perspective, it has
been argued that early closure would stop the social and
economic benets that would accrue from continued operation and orderly closure in 2010 (BHP, 1999). Through the
process, the communities have received employment, land
rent, royalties and been provided with educational facilities
as well as other community development projects. But are
the tradeoffs acceptable? Must immediate improvements in
the physical health of a community and employment come
at the cost of long-term ecological degradation? Achieving a
balance between ecological and social health can be a
complex challenge, particularly in communities where
there is little opportunity for economic diversication. The
resolution of such conicts will not be easy. Some governments anxious for revenues may encourage mining under
unsustainable conditions or where it is difcult to nd technical solutions to environmental problems. In such situations, it would be sensible to either await adequate
technical solutions or pursue political or social alternatives.
1

The ENGOs (environmental non-governmental organizations) include

the Mineral Policy Center, MiningWatch Canada, Mineral Policy Institute,
MineWatch UK, Calancan Bay Villagers Support Coalition, the Environmental Mining Council of British Columbia, Friends of the Earth, Pacic
Environment and Resources Council, Project Underground, and others that
endorsed the position of Pacic-based NGOs.

193

In addition to signicant social benets extended to communities, companies need to adopt integrated methods of environmental and social assessment.
3.1.2. The Porgera mine, Papua New Guinea
Another case in the Pacic region is that of the Porgera
mine, also in Papua New Guinea. Operated by Placer Pacic
since 1990, the mine has adopted a practice of mine waste
disposal similar to that of Ok Tedi, discharging about
17,000 tonnes of tailings per day into a tributary of the
Porgera River. Treated tailings and waste rock are
discharged, predominantly as nes (80% 2 0.065 mm). At
a monitoring station 160 km downstream from the mine, the
total concentration of heavy metals in water is very high but
dissolved metals do not exceed the PNG Government
compliance criteria (CSIRO, 1996). As the area close to
the mine is scarcely inhabited and because the local population does not currently use the rivers for food and water, the
mine management and independent consultants do not see
health risks associated with riverine disposal practices. This
view, however, does not take into account the potential for
cumulative environmental impacts. Although multinational
rms often claim that they apply the same environmental
practices in less developed host countries as in their country
of origin, this may not always be the case. Moreover, it is no
longer considered satisfactory for mining companies to
comply only with the environmental standards of the host
country, which may often be less stringent, especially since
the host country may be in urgent need of foreign investment. A number of NGO's and other observers are keeping
an eye on mining environmental standards.
Placer Dome is engaged in monitoring the environment
and providing social benets similar to those provided by
BHP at the Ok Tedi mine. About 1900 people are directly
employed and Porgera's Community Affairs Department
has developed a number of social and business programmes
such as: professional training; business development; supermarket and bakery; community schooling and health
services; sports; and youth and women's assistance (Placer
Dome Asia Pacic, 1998). Such important assistance is not
easily given up by government and communities, despite
long-term environmental implications. However, leaving
responsible decision-making to governments or communities cannot be construed as encouraging community participation. Mining companies must take it upon themselves to
adopt a precautionary approach, using their expertise to
determine whether or not geological and other conditions
warrant the environmentally safe development and closure
of a mining operation on a certain property.
3.1.3. The Island Copper mine, Canada
In contrast to the Ok Tedi case, BHP took a more holistic,
life-cycle management approach to its Island Copper mine
on Vancouver Island, Canada. This mine was started in 1971
and closed in December 1995. It employed 900 people with
an annual payroll of US$ 25 million, producing copper,

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gold, silver and rhenium. The mine's daily production of

50,00060,000 tonnes of tailings was disposed over the
ocean oor, 650 feet below sea level. The mine's economic
contribution to the community and region was generated
from its payroll, and additional spending on supplies and
services of US$1.5 billion over the 25-year life of the mine.
The mine was instrumental in supplying physical infrastructure (power, water, building, dock and cleared land) for
other commercial and industrial uses. The mining company
also provided the community with a sewage treatment plant,
400 houses, support for a new hospital, an ice arena, swimming pool, theatre and parks. The ooded 530 acres, 1320
foot deep pit has subsequently been used for commercial
production of Atlantic salmon smolt. A company has
purchased the buildings and dock facilities for commercial
production of craysh and sturgeon. With almost half the
population of Port Hardy directly dependent on Island
Copper's payroll, most mine employees became actively
involved in all aspects of community life. This helped to
ensure that common goals were met. The company implemented two programmes to assist employees in job retraining and upgrading education. Other sustainable local
initiatives were taken to create new business opportunities
in tourism, wood and sh processing; and a seaplane base.
The main lesson learned was that the personnel employed
during the operation as well as the community should be
involved in the closure process (Welchman and Aspinall,
2000).
3.2. Communications, education and cooperative decisionmaking
In developing countries, remote communities may not be
prepared to change their lifestyles to accept new concepts of
development if they perceive a loss of important cultural
and spiritual values, even if their material standards are
improved (McAllister et al., 1999). Community antagonism
is often most intense when foreign exploration companies
start working a site. Thomson and Joyce (1997) 2 have
explored the complex relationship between the community
and geological exploration companies. Having little or no
knowledge of the larger picture of the mining industry and
its competitive challenges, local communities quite naturally view an exploration company as an isolated occurrence. The level of expectation of a community does not
usually coincide with the company's ability to invest. The
community may perceive initial exploration drilling as if it
is ore production. The expectation of jobs and benets from
the company may thus soon be frustrated.
3.2.1. Cachoeira, Brazil
An example from the village of Cachoeira do Piria, in the
state of Para in the Brazilian Amazon illustrates the kind of
2

Also published in PDAC Communique.

misunderstanding between a mining company and a

community referred to above. This region experienced a
signicant gold rush from 1980 to 1990, with an inux of
10,000 people, including 5000 miners. A junior mining
company, Brazilian International Goldelds (BGZ), headquartered in Vancouver, having secured an option to
purchase two granted mining concessions at Cachoeira in
September 1998, started an intense drilling programme
(2200 m) conducted by Brazilian geologists. For the 2000
inhabitants of the recently created municipality of
Cachoeira, the reactivation of the mining camp was a
spark of hope. The camp had originally been created in
the 1980s during the gold rush when about 5000 artisanal
miners extracted almost 4 tonnes of gold from supercial
ore. In the aftermath of mining and with few employment
opportunities, the village is currently struggling. Most of the
easily extractable soft ore has been depleted, and a handful
of miners are producing minor quantities of gold by reprocessing tailings. The main economic activity of the village
consists of sparse crops of rice, cattle farming and timber
cutting and milling. Major international companies are
exploring the Greenstone belt in the region in view of its
potential for gold. The main geological targets lie at the
periphery of the town, with 700,000 oz of gold dened to
date. Prior to the BGZ's discussions with the Mayor of
Cachoeira, there was a plan to build houses over old informal mining pits, shafts, audits and tailing sites left by the
previous miners. BGZ reached an agreement with the
Mayor to institute a moratorium regarding any further
urban development within these areas until exploration
was conclusive and to select alternative sites suitable for
urban habitation. In order to establish a relationship with
the community, the company employed over 20 people to
assist in site preparation and geological sampling. Their
salaries were 3050% higher than the norms for that region
of Brazil. After several months, the work was completed,
the company turned to compiling the data, and most
employees were laid off, as expected. Unfortunately, the
local people at this stage lost hope in the possibility of a
mining operation in the short term. They therefore ended the
moratorium and again started building houses on mercurycontaminated tailings.
During BGZ's discussions with the Mayor of Cachoeira,
the municipality and the community had openly supported
mining, as they expected that it could bring long-term
economic benets. The prospect that BGZ would, for example, provide water to the town from the local Piria River
generated particular interest. However, the community
wanted this to happen immediately. It had little understanding for the process and time required to establish a
company-sponsored operation, including drilling and feasibility studies, which would have to precede any investment
in infrastructure (Veiga, 1997). Drilling has recommenced
on the Cachoeira property under a joint venture between
BGZ and Gold Fields Limited, a major gold producer.
Discussions with the community continue. Some artisanal

M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

miners are still struggling to survive by extracting gold from

tailings and small ore bodies on the property.
The behaviour of the people of Cachoeira is not atypical
of the reaction of communities in remote areas when faced
with foreign-owned mining operations that evidence no
immediate benets to them. In the case of Cachoeira,
local people are not positive towards mining ventures, as
they invade cattle farms, which are viewed as productive
and associated with powerful local landowners. Foreign
companies are seen as rich gringos with an obligation to
provide jobs for all community members. The community
does not know the difference between a major mining
company and a junior. Even domestic companies from
outside the region may be seen as intruders.
3.2.2. The Yanacocha mine, Peru
A recent incident in Peru also illustrates how difcult it is
to establish a relationship of trust between a mining
company and local communities, in particular a foreign
company working in a developing country. Yanacocha
mine, operated by an American company, Newmont Mining
Corporation, is located in the Peruvian Andes at an altitude
of 4500 m in the district of Cajamarca. The mine is the
world's fourth largest gold producer (around 1.75 million
oz in 2000), the largest Latin American gold producer and
the largest heap leaching operation in the world. About 1.7
million oz of silver and 48 tonnes of mercury are produced
annually through cyanidation, together with gold. On 2 June
2000, employees of a transportation company failed to
observe that one of its 200-kg mercury asks was not safely
closed. An unsecured chlorine cylinder subsequently made
impact with this ask, resulting in the release of 151 kg (or
about 11.1 l) of metallic mercury along the 42 km road from
the mine site to the coast, passing through small villages.
Large pools of mercury were formed in the villages of Choropampa and San Juan, where the truck had stopped. Unfortunately, local inhabitants collected most of the spilled
mercury, either to play with (in the case of children) or to
extract gold and other metals they believed were associated
with the mercury. Thus, a number of people, not knowing of
its serious health hazards, handled the mercury or burned it
in their homes expecting to extract precious metals (CAO,
2000). Fortunately, the company acted quickly to clean up
the area and recovered most of the mercury from residents.
Health and environmental consequences appear to have
been minor.
Due to their general lack of education, and specically
their ignorance of the properties of mercury, local people
were not able to respond appropriately to the situation. For
example, it has been reported that when a local school
teacher learned that the company was paying the equivalent
of US$ 35 per kg for mercury returned by residents (at least
ve times the normal price), he asked his students to collect
and bring to him as much of the mineral as possible. In
return, he would give the students better marks on their
exams. As the teacher was not measuring the quantities of

195

mercury brought by the students, the children divided

droplets and shared them with their peers so that all could
get better marks. Fortunately, there were no registered cases
of serious mercury intoxication, although some minor
problems with dermatitis and red eyes did occur. This incident illustrates how the hazards inherent in mining-related
activities can become a danger to the local community due
to their lack of education.
No long-term effects are expected from this particular
incident, as exposure to mercury was brief. Also, the risk
of methylation (mercury being transformed to its most toxic
form) is considered minor thanks to the environmental characteristics of the region, and the success of the clean-up
efforts. At the time of the accident, local people were in
the habit of using mercury for spiritual and medicinal
purposes. Some believe that mercury has healing properties
and it is frequently spread on the oor around people who
are ill. It is important for a mining company to know of such
local practices in order to be able to investigate possible
misuse of dangerous contaminants. Misuse of mercury
could result in chronic exposure to toxic vapours.
Health problems from mercury associated with mining
are not limited to this accident. Historically in Peru, about
100,000200,000 artisanal miners have been using mercury
in gold extraction processes, undoubtedly handling it in
rudimentary ways. This occupational exposure is a risk to
the miners, their families, and other members of the
surrounding communities, as well as the environment. An
estimated 2030 tonnes of mercury is released annually to
the Peruvian environment, frequently under conditions
conducive to methylation and bioaccumulation. The tragic
conditions characterized by many artisanal mining areas are
well known to Peruvians (Veiga, 1997), although very little
has been done to address them.
Many lessons, both good and bad, can be learned from the
experience of the Yanacocha mine. The company, through
an established social development programme, has spent
more than US$13 million from 1994 to 2000 on assistance
to local communities in health, education, agriculture, training, income generation, social and productive infrastructure,
and rural organization. The company has sponsored four
non-governmental organizations that have been conducting
several social programmes for farmers, local women, the
local university and schools, tourism in the Cajamarca
region, etc.
In the case of the mercury spill, the company undertook
an efcient clean-up. It is estimated that more than 90% of
the spilled mercury was removed from the environment and
from the hands of local people who had handled it. If the
clean-up programme was successful, it came at a high cost
to the company: US$16 million. Also, it is believed that
residents continue to withhold small amounts of mercury
in the hope that the price will rise. The incident has also
given rise to local speculation about the company's intentions. Some people believe that mercury contains gold,
silver and uranium. An unfounded rumour has it that the

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M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

company deliberately dumped mercury on the roads so that

it could buy houses in the villages cheaply, in order to
acquire the thousands of tonnes of gold in the ground
beneath. These instances all show that local mistrust of
foreign companies can be a barrier to an effective and equitable mining operation. The mercury spill did not help foster
a trusting relationship. The considerable nancial compensation demanded by local citizens for the spill may possibly
have been warranted but, ultimately, it may not have been
the wisest use of community-directed money. The money
spent on this small spill could have been used to create new
economic opportunities in the towns, such as a sugar
factory.
In hindsight, this company, as well as mining companies
in general, would benet from a closer communications
strategy with the community in question, allowing it to
make decisions based on a more thorough understanding
of the benets and risks of mine operations. In the event
of any mine accident, the company could then quickly
connect with the community representatives, inform them
of the situation and ensure that the community properly
understood what approach would be in the best interests
of the community. In the case of the Yanacocha mine, the
company will continue interacting with the various communities affected by the mercury spill incident. Monitoring will
be conducted to ensure that remedial measures have been
satisfactory. Health programmes will continue, while education in health and environmental awareness is scheduled.
The company will also continue other community
programmes such as schooling and medical services, as
well as general infrastructure projects.
3.2.3. Rio Tinto, Spain
As mining companies evolve and move to new deposits
and locations, they frequently lose their links with the
communities that were originally central to their growth.
For example Rio Tinto Zinc (RTZ), the world's largest
private mining company operates over 60 mines and processing plants in 40 countries. In 1873, a group of English
bankers and businessmen acquired the Rio Tinto mines
from the Spanish Government for 3.8 million and founded
the Rio Tinto Company Ltd, taking its name from the
mining region in Southern Spain. The mines are located in
the Pyritic Belt, a geological region that extends from Andalusia, Spain, to Southern Portugal. Tartessians, in 3000 B.C.,
were the rst miners in the region and soon thereafter, the
Romans extracted large quantities of gold and silver. The
natural effect of bacterial leaching on massive pyrite bodies
has been generating acid for millions of years and the
natural impact is now mixed up with the drainage from
over 200 mines, abandoned over the last 5000 years. The
Tinto River is an encyclopedic example of acid drainage.
With pH below 2, the Phoenicians used to call it the `river of
re' and the Arab name for it was `river of sulphuric acid'
(Ariza, 1998). The region has recently been used by NASA

to test the performance of robots in acidic environments

similar to those likely to be encountered on Mars.
By 1875, the Rio Tinto Company Ltd had become one of
the world's largest copper producers, and was bringing
signicant wealth to the village of Rio Tinto, employing
14,000 people. A large public demonstration was organized
in 1888 in the main municipal plaza of Rio Tinto to protest
smoke and sulphur dioxide releases from the company's
smelters. In order to control the crowd, the company
asked the Spanish Army to intervene. The soldiers opened
re against the demonstrators, killing 200 people and
wounding hundreds.
During more than a century of operation, the mine has
changed names and witnessed several takeovers and
mergers. In 1970, a new copper smelter was built in the
city of Huelva, on the delta of the Tinto River. Today it is
operated by Atlantic Copper S.A., a Freeport-McMoRan
Copper & Gold Inc company in which RTZ has a 16%
stake. The Huelva smelter is one of the world's largest
copper smelters and is also very cost- and environmentally
efcient (Atlantic Copper, 2000). In the 1980s, the Rio Tinto
mine halted its copper production because of low metal
prices, but the extraction of gold and silver from the ore
maintained the protability of the mine.
In April 1992, the Rio Tinto Foundation inaugurated a
Mining Museum that became an embryo of a series of initiatives to restore the historic mining sites of the region. These
include drifts and caves left by the Romans, old railroad
tracks and locomotives, ruins of the old processing and
roasting plants, etc. These sites are visited by over 40,000
people every year and bring important income to the Rio
Tinto community that is proud of its mining history. The
restoration work on the mining sites, tools and transportation equipment has been a remarkable example that could be
emulated in other countries. Despite the environmental
damage arising from the excess of pyrite in the environment, the community has taken advantage of this phenomenon to sell souvenir bottles of acidic water.
In 1993, the US based company, Freeport, acquired 100%
of the mining rights and copper smelter. In 1995, the mine
operation was sold for a symbolic price of 1 peseta per share
to the mining employees. The new mining company, Minas
de Rio Tinto S.A.L., is being formed by 523 workers who
are waiting for a US$5.7 million loan from the Spanish
Government to initiate the exploitation of a rich copper
orebody. The forecast for economic return is not very optimistic, however and the new owners are considering selling
the mine.
The community of Rio Tinto, with 5100 inhabitants,
suffered from a lack of economic alternatives after Freeport-RTZ transferred the mine operation to local employees.
The only recent productive activities in the town are small
factories making cardboard and plastic packaging. The
future of the Minas de Rio Tinto does not seem to be promising, as sparse efforts from a few employees to extract copper
and gold from old workings have met with limited success.

M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

In a recent workshop in La Rabida (CYTED, 2000), Spain,

employees from Minas de Rio Tinto and community
members raised the question why RTZ gives donations of
millions of dollars to the Royal Museum in London but does
not help them exploit more value from their mine. Company
representatives were not present to answer.
Around the world, RTZ has actively participated in
several initiatives with communities near their mines. In
its homepage (Rio Tinto, 2000), it states that we recognize
our business can accelerate social change, and we accept the
obligation to work with our neighbours to manage that
change. The company has also played an important role
in the recently created Global Mining Initiative, a forum
where representatives from governments, educational institutions, businesses, communities and non-governmental
organizations aim to ensure that the mining industry contributes to the global transition to more sustainable patterns of
economic development.
As a multinational mining company, RTZ has faced
strong opposition to its operations around the world, including, for example, from a United Kingdom-based NGO
called the PARTiZANS (People Against RTZ and its Subsidiaries). Since 1991, this NGO has published extensive
material reporting how Aboriginal communities in Australia, USA and Canada, as well as residents of the Philippines,
New Zealand, U.K., Panama, Namibia, Zimbabwe and other
countries, are being threatened by RTZ mining operations.
The NGO believes that mining, by its very nature,
constitutes an assault on the physical, social and cultural
environment (Gedicks, 1991). It is interesting to note that
the community in Rio Tinto, Spain, does not appear to have
heard about this NGO and there is no citation about the
village in the NGO's publications. It seems that both the
mining company and its opponents have forgotten the
community of Rio Tinto. Agricultural prospects are poor
in the region and the possibilities for reviving the glory
days of mining are remote. As in Manitoba, tourism is
being considered to help ll the void of economic activity.
Unfortunately, even tourism, with very little support and
investment, may only be able to attract tourists who wish
to witness the effects of environmental degradation from
mining.
3.3. The need for alternatives and community diversication
As noted in the cases above, the reaction of a community
to a mining operation in its vicinity may be volatile and
unpredictable, particularly when the level of poverty is
high and mining is a potentially strong economic activity.
This is a serious problem for sustainability, particularly
when one considers the huge numbers of people dependent
on marginal forms of mining employment. In 1993, for
example, it was estimated that about six million of the
world's 30 million mine workers were engaged in artisanal
operations in more than 40 countries, extracting over 30
different types of mineral substances (Noetstaller, 1995).

197

The International Labour Organisation (ILO, 1999) estimates that the number of artisanal miners is currently
around 13 million in 55 countries and rising, which indicates
that some 80100 million people worldwide may depend on
this activity as a livelihood. Gold, due to its ease of trading
and independence of monetary instability, is by far the
major commodity being extracted. Experts have estimated
that one in every 900 Latin Americans are employed in gold
and silver artisanal mining (Inter Press Service, 1995).
Some countries are facing severe social and environmental
problems from poor mining and processing practices associated with a lack of economic alternatives (Veiga, 1997).
It is perhaps difcult for developed countries to grasp the
scope and scale of the artisanal mining problem in developing countries. Concepts such as conservation, heritage
values and aesthetics, that are commonly established principles in developed countries, are superseded by the struggle
for survival and need of employment in poorer countries
where choices are few and people are unable to plan beyond
the immediate future. In December 1999, the World Trade
Organisation meeting in Seattle brought to the public's
attention many important points related to the fragility of
developing countries in establishing their trade protocols. It
has been estimated that, in developing countries, some 250
million children between the ages of 5 and 14 work, half of
them full time, and tens of millions of them under exploitative and harmful conditions. In some countries, 250,000 or
more children work full-time or part-time in artisanal
mining operations (Jennings, 1999). Most children work
to support their families. Their parents are aware of the
hazards and risks associated with rudimentary mining activities but see no alternative. In some cases, this is the way to
keep the families together. Jennings (1999) reports that the
main reasons for child labour in small-scale mining are:
poverty, lack of incentives to go to school, no prospects
for regular employment, lack of coordinated policies to
stop child labour, lack of enforcement, a reluctance to invest
in small-scale mining to improve performance and social
benets for rural communities. Governments and mining
companies all over the world are generally not well prepared
to deal with artisanal mining issues, let alone those related to
child labour in marginal or illegal activities. The World
Trade Organisation meetings also highlighted another
important point: many powerful and vocal organizations
are no longer prepared to allow trade and development to
take place without equal attention being paid to such
adverse social (and environmental) impacts.
The conservative tradition of rural politics in developing
countries also poses a considerable obstacle to the creation
of an environment of trust between governments and
miners. Many governments impose rules on artisanal miners
trying to force them to be part of the formal economy.
Rarely is assistance provided to help these miners use
legally and technically sound practices. Cultural, social
and political constraints are barriers to meaningful consultation with stakeholders and to developing a consensus

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M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

approach to common concerns. These problems are part of

the historical legacy of developing countries (Peiter et al.,
2000).
3.3.1. Las Cristinas, Venezuela
One of the most interesting projects in communities with
a traditional history of artisanal mining has been evolving in
the interior of Venezuela: a venture to extract 48,000 tonnes
of gold ore daily from the Las Cristinas deposit. Placer
Dome Ltd. faced signicant social tension when they
became a partner with a Venezuelan public company in
1994 to develop the project. The community of 2800 people,
mostly artisanal miners and families, had already suffered
signicant economic destabilisation from the relocation to
new settlements outside the property in 1992. Unauthorized
mining became a potential problem, especially as it represented the livelihood for 40% of the active population. With
the escalation of tension in the area, the company proposed a
co-habitation programme, establishing a small-scale mining
operation within the company's property with the participation of the local community. The company invested US$ 1
million in this project to foster a stable relationship with the
community. After an extensive effort to organize the miners
and provide a legal framework for the operation, a training
programme focused on the introduction of safety and environmental considerations and the improvement of quality of
life. A mining centre was created in 1997 including: a
recreational area, cooking facilities and an inrmary.
Mercury was banned from the property, and in 1999 the
independent work of 200 miners changed to a more cooperative organisation with 50 miners receiving salaries and
establishing production goals. About 2 kg of gold was being
produced per month under the management of a miner's
association (Davidson, 1998). Unfortunately, the co-habitation solution has only involved a small number of people as
it does not yet provide economic diversity during and after
mine closure. The efforts at this mine should be carefully
examined, as community participation was seen as an
important and viable approach to contemporary mining
practices. Moreover, it became clear that social instability
and discontent (an important factor in political risk assessment) can play a far greater role in determining the ultimate
success of a mining operation than had been historically
calculated in mineral investment decisions.
3.3.2. Mining communities in Manitoba, Canada
Sustainability of mining communities is not just an issue
in developing countries, it is a worldwide problem. One
example of a very successful, proactive approach to partnerships and long-term sustainability is found in Manitoba,
Canada, mining being the second largest primary resource
industry in the province. Unlike the cases from developing
countries discussed above, mining has a long and respected
tradition in Manitoba. Communities have been built around
the mineral industry and there is a generally supportive local
culture for mining activities.

Building on an earlier national multi-stakeholder process

entitled the Whitehorse Mining Initiative (The WMI
Leadership Council, 1994), interested parties in Manitoba
have been working together to develop a strategy for longterm sustainability. In early 2000, the Manitoba Minerals
Guideline, a code of practice, was signed by ve parties:
First Nations, Metis Nation, Northern Community Councils,
the Minerals Industry and the Province of Manitoba. These
parties are working together to develop an approach to
mining that considers the many needs of all affected parties.
Efforts are being made to improve educational and business
opportunities, joint ventures, cross-cultural training, and
maintaining diverse ecosystems (Manitoba Minerals Guideline, 2000). 3
In Northern Manitoba, ve traditional mining communities, who have faced mine closure and loss of economic
opportunities, have joined forces to build on their mining
base to develop a sustainable plan for the future. Calling
themselves, Team Manitoba, a group of small, isolated
communities, Flin Flon, Lynn Lake, Leaf Rapids, Thompson, and Snow Lake, are developing strategies for the future
(Team Manitoba, 2000). These small towns, with populations ranging between 1000 and 15,000 inhabitants, decided
to work together to attract investment in exploration and
mineral-related activities by advertising their potential
mineral wealth and the province's favourable investment
climate. They are also banding together to advertise their
communities as part of a region that can serve as a regional
tourist destination, to encourage visitors to explore the
history of the mining communities and operations, to
engage in sports as shing, hunting, canoeing, cross country
skiing, and ecotourism, to learn about aboriginal cultures,
and to participate in festivals.
Other initiatives are also underway. An abandoned part of
one mine will be used to legally grow marijuana for medical
purposes, and the growing of herbs and vegetables hydroponically is being considered. In Thompson, Manitoba, cold
weather testing of equipment such as snowmobiles and
trucks, offers another economic opportunity (Bloodworth,
2000). 4 Beyond economic development, however, as part
of the overall strategy of the province, a level of stability,
essential to both long-term community development and
ecosystem integrity, is being established through ongoing
consultations amongst diverse stakeholders to set up a
network of protected areas. Working closely together,
groups such as the World Wildlife Fund Canada (WWF),
the Mining Association of Manitoba and the provincial
government have achieved a remarkable level of consensus
regarding protected areas using the Whitehorse Mining
Initiative recommendations. Sophisticated mapping tools
are used to avoid conicts between proposed protected
areas with important representative ecological features and
3
See also Prospectors and Developers Association of Canada, PDAC
(2000).
4
See also Globe and Mail (2000).

M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

areas known to have a high mineral potential. This approach

has met with considerable success and similar consultation
is taking place with forestry, Aboriginal and hydro interest
groups. The degree of cooperation, particularly that which
has been achieved between the Manitoba Association of
Mining and the World Wildlife Fund is unusual in Canada
and elsewhere in the world. For the industry, communities
and governments wishing to maintain stability and ecosystem integrity, the initiatives in Manitoba warrant closer
scrutiny than space here permits.
4. Sustaining the community
Today, any mining company that has experienced poor
community relations knows that sustaining the community
is integral to an effective and respected operation. As noted
earlier, a sustainable mining community should be based on
the principles of ecological sustainability, economic vitality, and social equity. An examination of case studies shows
a wide variation in circumstances and approaches.
The traditional route to a sustainable mining community
has tended to focus on a three-step approach. The rst step
was to establish infrastructure to support and nurture the
workforce. Mining companies in Canada, for example,
have set high standards in creating towns and infrastructure,
including utilities and medical and educational facilities.
Canadian mining towns built in remote areas over the past
25 years or so probably belong to the last generation of such
endeavours, including Leaf Rapids (Manitoba), Fermont
(Quebec), Elliot Lake (Ontario), and Tumbler Ridge (British Columbia). Some communities that grew up within such
towns and infrastructure have evolved further through diversication: Sudbury (Ontario), for example, has grown into a
city with a diverse industrial base. This growth has been
facilitated by the city's geographical position as a transportation centre, the continued presence and collaboration of
two major mining companies for over a century (INCO and
Falconbridge), favourable government initiatives and an
active local community. Part of Sudbury's vision for development is to become a world leader in mining technology
and services, and to set up a global bre optics network.
Sudbury is promoting an Internet-based initiative to make
the region's expertise and resources available to the international mining community (Sudbury Regional Development Corporation, 2000). Sudbury has been fortunate to
see a large number of mines, as well as smelting, rening
and other downstream activities. All mining communities
eventually will witness the exhaustion of their mineral
deposits and the closure of their mines. In an earlier generation of mining communities, little thought was given to
sustainability and many suffered and wilted after the closure
of the mine. Although people were often willing to respond
to change and the need to follow the new sources of ore
elsewhere, signicant social damage was generated when
the mining company moved away.

199

The second step was to generate sustained employment

through discovering and mining all available ore deposits in
the locale. Communities such as Flin Flon and Snow Lake
(Manitoba), for example, have been sustained remarkably
well by the continued discovery and operation of many ore
deposits within reasonable proximity.
The third step generally was to leave infrastructure such
as roads, power, and housing to local communities when the
mine was closed or, in remote areas, to demolish it. Planning
for mine closure is a relatively recent development and its
scope and practice are still evolving. In the past, infrastructure was viewed by many companies as a major contribution
to the communities. While the hard infrastructure remained,
social and environmental responsibilities were left to the
government. Experience has shown, however, that bricks
and mortar are no substitute for enlightenment, education
and organization. Villages left behind by mining companies
often became shanty towns, as the Amazon region has
demonstrated. Today, in both developed and developing
economies, the approach to creating a sustainable mining
community has changed. It is now required to contribute to
the ecological integrity or viability of the local biophysical
environment, to diversify the economy into different areas,
and to consider long-term community sustainability.
As the market price for mineral and metal commodities
uctuates, mining communities go through periods of
economic downturn, which challenge their viability.
Mines that are built during periods of high prices may
decline and close with the onset of market downturns. The
decline of coal prices in the last two decades, for example,
has had a severe impact on the coal mining communities and
led to a number of closures. A dramatic decline in Europe's
coal mining industries was followed in North America.
Governments frequently nd it difcult not to intervene
and provide subsidies to workers and communities through
such difcult periods. In Canada, recent closure victims
have been coal mines in Cape Breton, Alberta and North
East British Columbia. In Cape Breton it has been estimated
that the total government subsidy of the coal mining industry since 1968 has been around $1.7 billion. Some would
argue that this has had negative effects on affected mining
communities, such as discouraging innovation, entrepreneurship and self-reliance (Campbell, 1999).
Two coal mines were built in North East British Columbia, the Quintette and Bullmoose mines, as part of a Canadian mega project in the 1980s. A total of $2.6 billion, more
than half being taxpayer's money, was invested in port facilities, hydro and rail lines and other infrastructure. Between
1981 and 1983, a new town was created solely to serve the
mines. The population of Tumbler Ridge peaked in the early
1980's at 5000, falling to about 2500 in March 2000, when it
was announced that the two mines would close earlier than
originally planned (Culbert et al., 2000). The challenge for
this remote, northern community is to transform itself
quickly from being based on one industry, and diversify.
Options include new oil and gas developments and a

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M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

sawmill; another option is for the town to become a retirement community.

The advent of long-distance commuting (LDC) or `y-in
y-out' as a model for mine development has added a
further dimension to planning for sustainable mining
communities. In long-distance operations, remote deposits
are mined without building a traditional mining town. This
method may bring its own set of implications for rural and
remote communities, particularly if that community has no
previous experience with mine employment. Of great
concern to declining mining communities is the prospect
of being `own-over' as companies may prefer to hire
staff from larger regional centres rather than from the smaller, more remote towns. On the other hand, LDC operations
can be far less environmentally disruptive than to build a
new mining town. Signicant environmental (socioeconomic and biophysical) costs accompany the building
of a mining community, especially considering its requirements for extensive infrastructure, schools, and social and
health facilities required in a remote setting. An LDC operation can avoid many of these costs. The opportunities and
costs, both for the company and the affected mining towns,
need to be carefully weighed and evaluated case by case. In
developing countries, communities may be reluctant to use
LDC rather than hire local workers. Placer Pacic's Porgera
mine (Papua New Guinea), for example, was originally
intended to be operated on a y-in, y-out basis. However,
this idea appears to have been dropped at the request of the
government (Mining Journal, 1989). In contrast, many say
that Tumbler Ridge will be the last mining community to be
built in Canada as there does not appear to be general public
support for such ventures. Instead, LDC has been used in
recent times for remote areas, such as the Raglan Mine in
Quebec or the Ekati Mine in the Northwest Territories.
The attention of mining companies to the surrounding
social environment has historically been devoted to the
reduction of conicts or compliance with legal requirements
rather than its long-term sustainability. Sassoon (1999)
highlights the importance of a serious environmental (and
social) impact assessment (EIA) to constitute a commitment
for companies to establish environmental management, not
merely to pay lip service to legislation. Community consultation is increasingly being practiced throughout the world.
Consultation has been an intrinsic part of environmental
impact assessment in many countries as guidelines for
companies to interact effectively with communities. Basic
strategies are offered by social scientists to reduce the
difculties that companies have when dealing with the
public (Connor, 1997). The community needs to fully
understand the mining project and its costs and benets,
and consultation can help involve it in a joint problemsolving process. From the community's perspective, such
consultation can lead to a far better understanding of the
proposals covered in the EIA and can contribute to a
successful working partnership (Australian Environmental
Protection Agency, 1995).

5. Community consultation and capacity building

Consultation can make the life of a mining company
somewhat easier but it will not in itself achieve community
sustainability. What is being suggested here is a more significant, fundamental change: one that is related to questions of
power, resources, and control. Resource-based communities
throughout the world, including those in Canada, have
historically been at the mercy of events happening and decisions taken outside their control; whether it be uctuating
world market prices, foreign-owned companies, international trade organizations, or domestic governments
primarily serving the interests of the politically inuential
urban and metropolitan regions. At the heart of the problem
then is a question of social equity. Until community
members themselves feel that they are partners in decisions
that intimately affect their own lives and the environment in
which they live, little progress on the path to sustainability
will be achieved. As some analysts have pointed out, what is
required is `resilience through local governance' (Paget and
Walliser, 1983). A exible, adaptable local process is
needed, where communities can `withstand the periodic or
sporadic economic misfortune that besets all resource
communities at some point in time'. Rather than having
companies or state governments determine the future and
structure of communities, a system of local governance
needs to be established. Such a system of local governance
should include all community groups and actors, not just
local politicians. Such participation should take place
before, during and after mine development. Warhurst et
al. (1999) have stressed that the socio-economic impact
assessment needs to be an ongoing process throughout the
active life of the mine and through decommissioning. The
authors suggest that the consultation process needs to
change from an almost exclusive focus on the operational
phase of a mine to placing equal emphasis on exploration
and closure. Such a pro-active approach would reduce false
expectations on the part of the community during the
exploration phase and would also mitigate the impact of
closure. The problems of coping with closure at the community level range from unemployment and family disruption
to destruction of the environment and consequent loss of
economic opportunities.
The rst step to community sustainability, then, may
relate to local capacity-building and local governance.
Community members are given choices as to how the
mine can be developed, and as to tradeoffs that are possible
within existing nancial, social and natural constraints.
Developing a sense of control within the community leads
to political, local and social stability. Paget and Walliser
(1983) suggest that through local governance it is possible to:
embrace and foster a broader concept of community
governance;
elevate social development to a position of at least equal
prominence with other development objectives; and

M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

actively involve local residents in the process of making

decisions for themselves.
With these internal capacities, communities will be better
able to respond to rapid economic change, face an uncertain
future, and will have increased long-term resilience to conditions generated by external forces beyond their control (Paget
and Walliser, 1983). Companies would also benet from this
approach. Rather than having to face unrealistic expectations,
they would be able to work with a consistent local policy that
outlines clearly what it needs and what can be realistically
expected from the mining company. Without a measure of
local empowerment, communities are placed in a position of
ignorance, mistrust and inability to negotiate effectively.
6. Adding value to the community
The benets a community can gain from a mine being
developed in accordance with the principles of sustainability include the opportunity to diversify their economy and
add value to the area. Values may include the enhanced
benets mining companies traditionally consider, such as:
direct employment; ancillary economic activity; water and
power supply; transportation and other infrastructure;
education, health and other facilities as discussed above.
However, companies need to think beyond that, about how
the development of a new mine could bring long-term
biophysical and socio-economic improvement to a region
in a way that is consistent with holistic principles of sustainability. This means that, to be sustainable, a decision should
not result in a zero-sum equation where there is a dramatic
trade off between immediate needs and long-term ecological
integrity. As demonstrated by the case studies discussed in
the foregoing, the issues and solutions are often complex.
They will require attention at the level of international
trade organizations and decision-making bodies; they will
involve nancial institutions, governments, non-governmental organizations, and mining associations. It is often at the
international level that preconditions for local sustainability
are established. Given current concerns over recent failures
of tailings dams, mining companies will need to establish
their credibility regarding the design and management of
waste disposal systems. Instituting mechanisms for independent environmental audits and independent environmental
reporting would go a long way toward convincing communities and ENGOs that a company is committed to environmental sustainability (Mineral Policy Center, 1999b).
It is not suggested here that the quest for a sustainable
community is easy. An important rst step is to dene a
general goal. For example, a fundamental decision-making
principle for the development of any sustainable mining
community might be the following: does the mining
company operate on an ethical basis in a way that contributes to the well-being of the present community and leaves
a sustainable legacy for future generations? In the words of

201

George Francis (1999), sustainability is ultimately an ethical commitment based on a belief that the natural world and
its component life forms, including humanity, have value in
and for themselves.
7. Conclusion
The global mining industry is facing many challenges in
terms of human interaction with physical and social environments. Many companies have invested considerable
resources in technological innovation to increase productivity and competitiveness. Benets also relate to improved
health and safety, as well as the quality of the environment.
Attention still needs to be given to nding innovative
approaches to establishing long-term benets for the
communities created or enhanced by the presence of the
mining operation. Developing resilient communities, longterm benets, and shared decision-making processes may
not come easily to mining companies but experience indicates that the diverse needs and requirements of communities must be acknowledged and respected. Such an
approach recognizes that community sustainability is not
simply another management problem, something that
needs resolving much in the way that a technical difculty
might be tackled. It is a completely different philosophy
based on a concept of sharing benets and responsibilities
with local communities. This is a philosophy that goes
beyond mere coexistence; it is one that promotes concepts
of industry-community co-participation in the mine-building process. As Canadian mining companies are moving to
developing regions it is of paramount importance to understand how the problems of poverty and disenfranchisement
affect the long-term health of a mining community. Built
into that understanding is a recognition that local people
need to make decisions about what benets they would
like to see, that will t in with their cultural needs and
physical requirements. Thus, there is no single formula.
Adaptability, exibility, responsiveness, and respect for
people and the biophysical environment, which we all
depend on, are the principles upon which future mines
need to be built if they are to follow a more sustainable path.
Acknowledgements
The authors wish to acknowledge the Canadian Institute
of Mining, Metallurgy and Petroleum for permission to
publish this paper, which is based on a presentation made
at the 102nd Annual General Meeting of the Institute in
Toronto 2000. The authors would also like to thank Brazilian International Goldelds for its support of eld research
underlying some of the paper and for assisting in its review.
We also express our gratitude to Domingo Carvajal and Dr.
Arsenio Gonzalez from the Group of Hydrogeology and
Environment at the University of Huelva, Spain, for their
information about the community of Rio Tinto. Nick Cotts

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M.M. Veiga et al. / Natural Resources Forum 25 (2001) 191202

from Minera Yanacocha is also acknowledged for his

comments and suggestions for the section on the accident
in Peru. We also appreciate the quick responses for information from the Manitoba Ministry of Industry Trade and
Mines, the TEAM Manitoba mining communities, Barbara
Bloodworth, Mayor of Leaf Rapids, and Ed Huebert of the
Manitoba Association of Mines. Finally, we would like to
thank the reviewers of this article who made very helpful
and insightful comments.
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