Introduction to Mining and Issues Eia

8/3/2019 Introduction to Mining and Issues Eia

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Monali Zeya Hazra

Centre for Science and EnvironmentNew Delhi

Overview of mining sector and

key issues


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What is mining

Mining is extraction of valuable minerals orother geological materials from the earth,

usually from an ore body or seam.

Materials recovered by mining include bauxite,

coal, iron, copper, gold, silver, lead, limestone

Mining in a wider sense comprises extraction ofany non-renewable resource (e.g. petroleum,

natural gas, coal)


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Mineral classification

Broadly classified as: Fuel minerals - Coal, lignite, oil and gas

Major minerals

Metallic minerals Iron ore, bauxite, lead, zinc, etc

Non-metallic minerals limestone, manganese,

Minor minerals constitute constructionmaterial building stones, sand, marble, gravel,

sandstone, etc


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Basics of mining operation

Three stages operation Regional exploration to identify areas bearing

deposits through aerial photography, satellite

imagery, etc Reconnaissance permit

Detailed exploration Invasive and involves

close distance drilling, large-scale mapping and

geochemical testing Prospecting license

Extraction Mining lease


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Types of mining

Underground mining Mineral directly mined by creating access to it

through a horizontal, inclined or vertical tunnel.

The underground tunnels have to be provided with

roof supports to prevent them from collapsing.

Recovers only 50-60 per cent of the ore

Environmental friendly howevermore expensive

Cost of underground mining 2.6 times more thansurface mines

Risks Fire, subsidence, flooding


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Types of mining

Underground mining


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Types of mining

Opencast mining Topsoil, earth, rock and other material completely

removed to provide access to the ore seam.

Technologies adopted

Drilling and Blasting

Surface miners

Rock breakers

Can yield 80-90 per cent ore recovery

Cheaperbut has significant environmental

impacts


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Types of mining

Opencast mining


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Types of mining

Between 1996-2000, annual growth rate of opencast mines - 7.6 per cent compared to 0.7 per cent

for underground mines More than 80 per cent mineral production comes

from opencast mines Most major minerals mined by open case except

coal However, even coal moving away from

underground mining 85 per cent of coal production in 2005 from

surface mines


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Mining in India

Started 6000 years back. First recorded referencein 1774.

Came of age only after independence mere Rs58 crores in 1947. Today, worth 84211 crores.

Mineral rights belong to the government

State owner of minerals within their boundarywhile central government owner of minerals inocean or exclusive zones.

Rights to grant prospecting license and miningleases with Central Government

State vested with power to grant lease for onlyminor minerals


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Mining in India

Initially, most minerals reserved exclusively for publicsectorunits - Late 1950s-1970s saw emergence of

number of PSUs NMDC, SAIL, BGL

Post liberalisation with national mineral policy 1993,

13 major minerals opened up for private sector Foreign participation in mining and exploration was

allowed

Procedure for grant of mineral concession simplified

Following liberalisation, between 1993-94 and 2003-04,value of mineral production up by 10.8 times.


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The growth story

Growth industry: 1993-2005 Iron ore production increased by 2.5 times

from 60 MT annually to 155 MT;

Bauxite increased from 5 MT to 12 MT;

Chromite from 1 MT to 3.4 MT

Coal and lignite from 260 MT to 440 MT

Limestone from 80 MT to 170 MT

Value of mineral production grew at CAGR of10.7%.

Just the beginning.


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The growth story

Between 2002-03 to 2006-07: About 875 sq. km. area leased out for mining

600 sq. km. opened up for prospecting

560 odd mines obtained environmental

clearance - 500 odd mining projects awaiting

clearance

New growth areasbig money minerals

copper, lead, zinc, gold, diamond etc. But these are also polluting mineralslarge

mines, huge tailings and big pollution


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The China factor

Huge increasein demand

Huge increase

in price -- up 48per cent sincethe beginning of2006

Real price at 15-year high


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Some facts and figures

India a mineral rich country - recoverable reservesof 58 minerals (excluding fuel minerals). 85 billion

tonne of mineral reserves still to be exploited

Produces 90 minerals 4 fuel, 10 metallic, 50 non-

metallic, 3 atomic and 23 minor minerals. Leads the world in production of some key

minerals

2nd in barites and chromite

3rd in coal and lignite,

4th in iron ore, and

6th in bauxite


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Produced mineral worth Rs 84,211 crores

States accounting for majority of the mineral

value are Andhra Pradesh, Orissa, Jharkhand

and Gujarat

Jharkhand10%

Chhattisgarh

9%

Maharashtra

6%

Assam

6%

Rajasthan

5%

West Bengal

5%

Others

19%

Gujarat

10%Madhya

Pradesh

9%

Orissa

10%

Andhra

Pradesh

11%


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Distribution of coal reserves Jharkhandaccounts for major chunk followed by Orissa

Andhra Pradesh7%

Chhattisgarh

16%

Jharkhand

29

%

Maharashtra

4%

Oriss

a24%

West Bengal11%

Others1%

Madhya Pradesh

8%


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620,372 ha under mining of major minerals 9131mine leases

Land under coal mining with public sector 0.13

million

Total land 754861 ha

Sector dominated by large numberof small mines

Minor minerals dominated by small and medium mines

Fuel minerals dominated by large-scale public sector In metallic minerals, large-scale private sectordominate


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Economic contribution

Accounts for2.2 per cent of nations GDP

Except petroleum, country largely self sufficient

recent trend in imports of coking coal

Exports minerals worth Rs 49911 crores 17 per

cent of total value merchandised out of India

Other than cut diamonds, iron ore biggest export


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556647562778

599301

638741658901

685673704537716183

0

100000

200000

300000

400000

500000

600000

700000

800000

1996 1997 1998 1999 2000 2001 2004 2005

Employment:30% reduction, but four-foldincrease in mineral value

Economic contribution

E l t 60 70% d ti


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Employment: 60-70% reductionin potential


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Employment: Will reduce further


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ISSUES


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Environmental Impacts - Land

Irreversibly changesland use pattern

Mining in agricultural

land affects local

economies and

lifestyle. Example:

farmers in MP havebecome contract

labourers


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Some Fact - Land 7 lakh hectares of land leased out for mining coal,

metallic and non-metallic minerals (excludes minorminerals)

Majority of land acquired by cement sector forlimestone mining is agricultural


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Some Facts Land Mine closure dominated by repair job mindset

In large-scale cement sector out of 1100 ha OFFICIALLY

exhausted, only 535 ha reclaimed


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Mine closure: Open secret

Miners have abandoned mines govt. arefooting the bill in the US under the superfundsites billions of dollars for mine closure

Estimated cost of closing over a trillion dollars in the developed world

No one knows how many abandoned mines inIndia

IBM: 296 abandoned mines (also calledorphaned mines) of major minerals

Abandoned coal mines : 214

Total official number: 510 who will foot thisbill?


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Mine closure

Only in 2003 that mine closure plan as anstatuary requirements to operate mines not for

coal mines

State of closure plans very poor

36 closure plans reviewed water bodies,stabilized dumps & plantations very few

alternate landuse, nothing on social and

economic rehabilitation

Financial surety highly inadequate for any sort

of proper closure

Closure is central to mining can not ignore


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Some Facts Land

There are some examples of good reclamationpractise. These are howeverFEW and far between

Minerals and forests: Complete


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Minerals and forests: Completeoverlap

Top 50 mineralbearing districts forest coverone-third higherthannational average

Districts account for18% of forests bulkforest

90% of Indias coal,

72% of forest land,80% of other

minerals are found

in tribal areas

Minerals and forests: Complete


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Minerals and forests: Completeoverlap

Mining has alreadydestroyed largetracts of forests

Total forest landdiverted for miningsince 1980 till 2005- 95002.68 hectares(governmentestimates).

Nationalconsultation ofDrafts Forest Billputs it at 164,610

hectares

M th Mi i t i d b


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Fact: Forest clearance 4 times higher in thisdecade than earlier.

1980-97 1997-05 1980-2005

Mine leases granted inforest areas

317 881 1198

Avg. leases granted/year

19 126 80

Forests diverted (ha.) 34,527 60,427 95,003

Avg. forest diversion/year (ha.)

2,031 8,639 3,800

Myth: Mining constrained byforest rules

I t f t F hi h


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Impact on forest: Far higherthan lease areas

Manendragarh

Sarguja and

Korba Lease area: 1-

3% 18-24%

converted to

barren land 12-44% into

degraded

forest


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Minerals and water: Close bond

Huge impact on waterresources - bothsurface andgroundwater

Destroys smallstreams and rivers

Groundwater isdepleted as water tablebreached - 40%

limestone mines; Rivers polluted -

Damodar, Bhadra,Shankhini, Brahmani


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Minerals and water: Close bond An example: sediment loading in Bhadra river

increased from 1197 tonne in 1984 to 49429 tonnes in

1986


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Mining consumes large quantity of water For example, Lanjigarh mines of Vedanta

proposes to consume around 33,000 tonnes of

water per year

Taking average per capita consumption of 55lts/day, this much water can meet requirement of

6 lakh people.

During entire life of the mine (of 25 years), the

mine will consume water which could have metthe requirement of15 million people


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Can destroy the water basin of a river by changing

course of riverordestroying streams

Rani Jharna and Khadi Jharna completely dried up

due to bauxite mining by BALCO in

Gandhamardham hills

Course of few hilly rivers including Phaskhowa

changed due to dolomite quarrying in Jalpaiguri

The Pipawar coal mining project has cut 3 major

and 25 minor streams feeding river Damodar

Vedantas proposed mining in Niyamgiri hills will

affect 36 streams flowing out of the range


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Environmental Impacts - Air

Mainly in form ofFUGITIVE DUST.

Most operations generate dust - drilling, blasting,

hauling, loading, transporting, storage and

crushing

For example, a coal stack of 50,000 tonnes cangenerate 250 tonne of fugitive dust even if

assuming loss of only 0.5 per cent as fugitive

dust.

= 50,000 x 0.5/100 = 250 tonnes

Opencast mining have more severe air pollution

problem compared to underground mining


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Fugitive dust from blasting


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Fugitive dust from drilling


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Fugitive dust from movement of vehicle within lease

area

Environmental Impacts -


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Environmental Impacts -Transportation

Nuisance to public due to increased transportation


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Environmental Impact - WasteSolid waste generation

Overburden

Organic material and soil that overlie a mineral

deposit

InterburdenLayers of shale, interstital clay and dolomite which

exist with the minerals

Top soil


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Environmental Impact - Waste

Solid waste Overburden generation is denoted by stripping

ratio.

What is stripping ratio?

The ratio of overburden that needs to beremoved to the amount of ore removed.

Example: A stripping ratio of 4:1 means that 4

tons of overburden are removed to extract one

ton of ore.

Low stripping ratio translates into low quantities

of waste


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Environmental Impact - Waste

Overburdenmanagement amajor issue ittakes up land andgenerates dust and

run-off. Can evencause landslides inhilly areas

In 2005-06: 1.6billion tonnes ofwaste andoverburden fromcoal, iron ore,limestone & bauxite


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Environmental Impacts - WasteTopsoil

Mining operation results in excavation of largequantities of top soil

It is precious as it holds nutrients and is essential forsuccessful rehabilitation and afforestation

Top soil management and its reuse is important. Poorstorage can lead to run-off

Amount of top soil from a mining project can becalculated. All one needs is: Thickness of top soil and

mine lease area

Example, thickness of top soil is 0.5 m and the areato be mined is 50 Ha. The quantity of top soil will be

= 50 ha x 10000 m2 x 0.5 m = 250,000 m3


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Fact - Waste

A weak area. Topsoil mostly dumped with overburden

with no reuse.

Environmental Impacts


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Environmental Impacts Noise & Vibration

Noise A cumulative effect of all mining activities produces

considerable noise in the mining and adjoining area

Some sources of noise blasting, drilling, crushing andmovement of vehicles

Environmental Impact Noise


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Environmental Impact Noise& Vibration

Vibrations Blasting results in vibrations and if there are human

habitation nearby, it can destroy property and houses

Environmental Impacts


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Environmental Impacts Climate change

Climate change - Methane

Specific to coal mines as it emits methane during

extraction and distribution

Methane is important because of:

Safety hazardsClimate change

Lower quality coals ("brown" coal or lignite) have

lower methane content than higher quality coals

(bituminous and anthracite coal)

Surface mined coal releases on average, produces

only 10% as much methane per unit mined as does

coal removed from underground mines

Impacts Occupational health &


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Impacts Occupational health &Safety

The workers in mine have high risk of the following

occupational diseases:

Pneumoconiosis: Caused due to inhalation of coal

dust. Can cause severe lung problems and lung cancer

Silicosis: Due to inhalation of free silica. Prolonged

inhalation causes chest pain, continuous coughing anddifficulty in breathing

Asbestosis: Due to inhalation of asbestos. This causes

chest congestions and organ malfunctions.

Other risk include exposure to radio active elementsin uranium mining. Can increase the risks of lung and

bone cancer.


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Impacts - Safety Other safety hazards in mining operation include:

Explosion in mines (due to methane)

Accidents due to blasting and drilling

Inundation or drowning due to flooding

Poisoning due to carbon monoxide (CO is generated during

mine fires or explosions)


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Impacts - Fire Mine fires an issue for not

only the workers but also the

people living in adjoining

area

Jharia coal mines: In 1972,

there were reportedly, 70active fires over an area of 17

sq.kms. Presently 9 sq. km is

still affected by fire even after

spending Rs 115 crores.

Raniganj coal mines: Out of850 hectare land in Raniganj

town, 90 hectares affected by

fire and subsidence.


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Mining and people

No localdevelopment, only

cost.

Mineral district

suffer fromresource curse

Of the 50 top

mineral producing

districts of India, 60

per cent fall under

the 150 most

backwards districts.


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Mining and poverty

Mining areas are also the poorest areas Three states with substantial dependence on

minerals (between 8-10% of GDP/about 6-13% of

the total revenue receipt) Jharkhand, Orissa

and Chhattisgarh Characterised by low per capita income, lower

growth rates and higher levels of poverty and

food insecurity.

Maximum number of backward districts in thecountry: Jharkhand (19/22), Orissa (27/30),

Chhattisgarh (15/16)


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Mining and poverty

Major mining districts of the country are alsothe poorest and most underdeveloped districts.

Iron ore districts

Keonjhar: Produces 21% of Indias iron ore; 60%

BPL; ranked 24th out of the 30 districts ofOrissa in HDI

Bellary: 19% of iron ore production (most

exported); largest number of private aircrafts;

ranked third from the bottom in HDI inKarnataka; 50% literacy level


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Mining and poverty

Limestone districts 10 districts that produced more than 5 MT all

ranked at the bottom half of their respective

states in HDI

Gulbarga largest producing district 2nd fromthe bottom in HDI in Karnataka

Bauxite districts

Koraput produces around 40 percent of Indias

Bauxite; ranked 27th out of the 30 districts of

Orissa in HDI.


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Mining and poverty

Chromite districts Jajpur produces 95% of Indias

chromite is ranked 22nd out of the 30

districts of Orissa in HDI.

Lead/ Zinc districts

Bhilwara produces 83 per cent ofIndias zinc; ranked 25th out of the 32

districts of Rajasthan in HDI.


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Why poor?

The wealth of mining doesnt go backto the mining areas

Mining takes minerals, degrades land,

water and forests, does not providelocal employment

Mining displaces people from the

existing livelihood but cannot replace it


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Mining and displacement

No complete data on displacement

Estimates: During 1950-1991, 2.55 millionpeople displaced 12 per cent of all projects

2nd largest

55 per cent from Scheduled Tribes highestof all projects

Only 24.7 per cent resettled (no estimationson rehabilitation) lowest of all projects


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Population Density (persons/sq. km)Western Australia: 0.79

Canada: 3.3

Brazil: 20.5

PNG: 13

Chile: 22

China: 137

India: 329 (less than 0.3 ha per person) Any large-scale land use change will lead to

large-scale displacement.


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Post 1991 no data

Between 2002-2006, 90,000 ha land

(including forests) have been leased for

mining.

People displaced 50 years back are still

awaiting compensation

In cases people displaced multiple times


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Fact - Social ImpactsThere is growing

protests against miningprojects 10 years protest by

Nimalapedu againstAditya Bilra Groupscalcite mines in AndhraPradesh

Protest against Uraniummine in Jadugoda inJharkhand

Protest by Kashipur

village in Raygada districtagainst Utkal Aluminium

Protest against bauxitemining in Niyamgiri hillsby Vedanta (SterliteIndustries), Orissa


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Mining and Naxalism

Minerals andNaxalism goestogether?

40% of top 50

mineral richdistricts affected

Targeting mining

establishments


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Fact Social Impacts

Increasingconflict is

inevitable.if

peoples

concern arenot addressed

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