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Fostering the Positive Externalities of Mining - Policy Options
By
Roque Romero
Abstract
When assessing the viability of mining operations in a determined area, stakeholders pay considerable attention to the environmental and social costs attached to mineral production, called negative externalities. Not much attention is paid, however, to the positive externalities of mining and the extent to which they can contribute to the well-being of the local communities.
This disregard of the potential of mining to bring benefits to the local communities has resulted in the halt of many mining projects, a situation that does not favour the local population and society in general. To change this situation, local communities and other stakeholders need to perceive that the positive impacts of mining projects largely outweigh the negative ones. The author argues that this can be achieved if governments and mining companies focus on a better management of the external benefits of mining (positive externalities), this is, on maximising the benefits that mining can bring to local communities and society in general.
This paper will first describe the externalities of mining and how local communities provide more attention to the negative externalities of mining than to the positive ones, with the negative impacts that this has in the development of mining projects. Then, it will explain the potential of positive externalities to contribute to the development of local communities. Finally, this paper proposes some policy measures for managing positive externalities in a way that benefits the mining industry, the local population and society in general.
Roque Romero
Based on a Dissertation presented to the Centre for Energy, Petroleum, Mineral Law & Policy (CEPMLP) for the degree of LL.M in Mineral Law & Policy, March 2004
(added 29 August 2005)
