In the light of an impending recession, it is imperitive that we look at economic growth drivers, in order to reduce the damage, and to protect our vulnerable communities. I think this can be an opportunity in itself, if we look at how the basic materials we need can be sourced sustainably.
A lot of people are concerned about the future of mining because they don’t take into account that we can make the process of mining as sustainable as possible by considering environmental impacts, including greenhouse gas emissions, as well as the economic and social impact of mining on a community. The way we can reduce these negative impacts is by having appropriate technologies that help decrease environmental damage and using more sustainable processes to mine.
What are some of the important considerations for a community when mining is in the works?
The importance of understanding how mining will impact a community. When considering mining, it’s important to understand what outcomes you want to achieve. For example, if you want to build a new mine facility, what are the anticipated benefits and consequences?
Will it be an economic boost or job creation opportunity? If so, will its presence benefit or harm people living nearby who aren’t part of the mining process?
If you want to improve your community, understand how mining could be used to accomplish that goal.
But for that, we also need to look at how mining companies have been sued and what our justice system thinks of their business model. A case in point is to look at Vale.
Vale is a Brazilian mining company. The company is one of the largest mining companies in the world with operations in more than 20 countries.
The environmental litigation on Vale started in 2013 when Vale was accused of dumping toxic waste into a river. The waste had been dumped into a tributary of Rio Doce which led to significant devastation to the environment, flora and fauna. The case was filed by federal prosecutors on behalf of the Brazilian government and residents of Minas Gerais.
In March 2016, Vale agreed to pay $2 billion as compensation for damages caused by the disaster, but this amount has not been paid yet as it still needs approval from Brazil's National Development Bank (BNDES).
Vale, is accused of being responsible for the collapse of a dam in Brumadinho, Brazil. The dam collapse resulted in the destruction of homes and killed at least 266 people.
In January 2019, Vale was fined $1 billion by a Brazilian court for the disaster. This is the largest environmental lawsuit in history. Recently, the SEC (Securities and Exchange Commission, USA) sued the company for misleading investors over the dam’s audits.
What can we learn from here? I guess the mining industry is going through a tough time, but I think the fundamentals need to change, if these companies need to survive in a fairer world. What do you think?
Do you know of any environmental litigation that you would like to highlight? If so, please let me know.
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