Coase Colored Glasses

Tuesday, April 19, 2005

Strip Mining in Latin America..Friend or Foe?

Sometimes I find that my own personal feelings and thoughts conflict. For example I believe that third world countries progress faster if they have “our junk”. With increased industrialization they are better able to expand into other areas and slowly bring themselves out of poverty. However, I also believe that America can be too forceful. The disrespect it shows to other countries feelings and perspectives is appalling. For example, I found an article discussing the surge in gold prices, and the eagerness of American industry to locate in Latin America and begin strip mining. Many of the indigenous people are vehemently opposed to this action and yet they are ignored because the government is afraid of the lawsuit. If people want mining to expand that is fine, if they don’t leave them alone. I am sure a lot of individuals will disagree. I suppose they feel progress needs to be achieved at all costs. However, in this search for progress we can still be considerate. Markets aren’t necessarily shrewd. They have rules and consequences but respect can still exist.

Strip mining is highly effective and relatively cheap, it is also ugly and very costly to the environment. Peter Kolesar, professor of geology at Utah State University, says there are two typical types of mining, open pit or strip mining and underground mining. Open pit mining is the worst form of mining.

"The company strips off all the overlying soil and searches for material. It is very efficient and highly inexpensive," said Kolesar. For the most part companies are required to restore the area as it once was. Unfortunately this is a very expensive process and most mining companies end up declaring bankruptcy rather than participate in land reclamation. Not to mention, third world countries don’t really receive the same treatment.

The Silver Butte Mine is an example of problems that occur with open pit mining. Acid mine drainage flows out of this mine in Riddle, Ore. The acidic water is toxic to aquatic life and dangerous to human health. Cleanup has presented a problem and the government is still looking for ways to create a healthy environmental solution.

Like the Silver Butte Mine, the Berkley Pitt in Butte, Mont., also filled with water. Although this water is also not safe for human or wildlife consumption, it is better managed. The EPA and other organizations have monitored the water levels carefully to ensure the least amount of environmental impact possible.

These two similar situations led to two different outcomes. The complexity of these issues makes generalizations very difficult to discern. However, here is my question. What is fair to expect from mining industries in other countries? Who enforces the environmental clean up? And should we expect companies to pick up after themselves?

1 Comments:

At 6:09 PM, Anonymous Anonymous said...

Unfortunately, when a company destroys the environment "outside" of the U.S. and has permission to do so from the local government, they have the property right. Even when the damage affects everyone (such as the ocean or the atmosphere) we can't do anything about it because of an enforcement problem.

When it comes to strip mining, we can't expect them to do anything their host country doesn't insist upon (and sometimes not even that). This could be a practical example of a "race to the bottom".

 

Post a Comment

<< Home