How the extraction process of minerals leads to environmental deterioration?
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Answer:
Extraction of a mineral resources may impose an environment cost on society. In situations like this, property rights are not usually well-defined and hence this cost is not internalized by the extractors.
The rational use of natural resources should guarantee that exploitation of one resource does not harm others. It is from this standpoint that the harmful effects of mining operations on environment should be considered. They include dumping, open pits, waste piles, sinkholes, water, soil and air pollution problems
Exploration, production and transport of non-fuel minerals may generate negative externalities. These include surface mining, accumulation of tailings, pollution of water, air and waste generation. The trends in developing countries during the past 50 years have been to require that the producers and consumers of minerals internalize these negative externalities. However, environmental protection in non-fuel minerals production is not well developed in the underdeveloped countries.
Extraction of a mineral resources may impose an environment cost on society. In situations like this, property rights are not usually well-defined and hence this cost is not internalized by the extractors. The aesthetic costs of strip mining, the occupational health hazards associated with coal mining and the acid leached into streams from mine operations are all examples of associated environmental costs.
The cost of extraction and sale (including user cost) is borne by the resource owner and taken account of (internalized) in the calculation of how much of the resource to extract. The environmental damage is an external cost and is not borne by the owner and as such it will not be part of the extraction decision. It is important to know how the market allocation, based on only the former cost would differ from the optimal allocation (depletion) which is based on both.
The inclusion of environmental costs results in higher resources prices, which tend to lower demand. All other things being equal, it would allow the resource to last longer. On the other hand, when environmental side-effects are ignored by the resource extracting firm, the price of the exhaustible resource would be too low, demand too high and the resource would be extracted too rapidly over time
Environmental Impacts of Mineral Resource Extraction
(a) Land Degradation:
In Underdeveloped Countries, land degradation is from strip-mining of coal, the disposal of deep-coal mine tailing and acid mine drainage. Regional effects include acid precipitation, primarily from coal and oil combustion with its impact on soil, vegetation and lakes. Fine particles of toxic trace metals which accumulate in soil and in animal and human food chains are often dispersed during mining and refining operations.
(b) Solid Waste:
The mineral production is always associated with the solid waste generated in the form of overburden dumps, tailings and slimes. Areas around smelting and mining complexes are usually soiled by metals. Solid waste generated by mining production result in soil erosion, loss of fertile land and also soil pollution.
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