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The Hydro-economics of Mining

Author

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  • Ossa-Moreno, Juan
  • McIntyre, Neil
  • Ali, Saleem
  • Smart, James C.R.
  • Rivera, Diego
  • Lall, Upmanu
  • Keir, Greg

Abstract

Joint research between economists and hydrologists increasingly contributes to optimising the economic value gained from water, while safeguarding its social and environmental values. The application of hydro-economic analysis to mining regions, however, is limited. This paper examines why this is the case and how to confront it. The paper focuses on identifying and describing features of large-scale mines and mine regions that are challenging to analyse such as: magnitude of capital involved, time-scale and remoteness of projects, inherent environmental risks, and strong negative perceptions about mining's impacts on water. These characteristics may limit the applicability of established hydro-economic concepts and methods, thus risk-based metrics are discussed as complementary tools. We also contend that further research and development in water-related ecosystem services should be a priority, in order to better quantify trade-offs between the economic benefits of water use by mining and competing users, including environmental flows. Case studies of mining regions in Chile, Madagascar and Sweden are summarised to illustrate some of the issues raised. While data limitations are an obstacle, new and extended case studies are required to explore how the challenges may be addressed.

Suggested Citation

  • Ossa-Moreno, Juan & McIntyre, Neil & Ali, Saleem & Smart, James C.R. & Rivera, Diego & Lall, Upmanu & Keir, Greg, 2018. "The Hydro-economics of Mining," Ecological Economics, Elsevier, vol. 145(C), pages 368-379.
    • Handle: RePEc:eee:ecolec:v:145:y:2018:i:c:p:368-379
    DOI: 10.1016/j.ecolecon.2017.11.010
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    Cited by:

    1. Crispin Cunya, Marianella & Ponce Oliva, Roberto Daniel & Rendon Schneir, Eric & Arias Montevechio, Esteban Eduardo, 2023. "Modelamiento hidro-económico de los efectos del cambio climático y política en la agricultura andina," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 23(01), June.
    2. Islam, Asif & Hyland, Marie, 2019. "The drivers and impacts of water infrastructure reliability – a global analysis of manufacturing firms," Ecological Economics, Elsevier, vol. 163(C), pages 143-157.
    3. Araya, Natalia & Ramírez, Yendery & Cisternas, Luis A. & Kraslawski, Andrzej, 2021. "Use of real options to enhance water-energy nexus in mine tailings management," Applied Energy, Elsevier, vol. 303(C).
    4. Castro, Arianne Flexa de & Assis, Igor Rodrigues de & Caldeira, Cecílio Frois & Ramos, Silvio Junio & Coelho, Renan Rodrigues & Oliveira, Guilherme Corrêa de & Medeiros-Sarmento, Priscila Sanjuan & Ga, 2023. "Minimum thresholds of key ecological attributes facilitate the tracking of mineland restoration," Resources Policy, Elsevier, vol. 84(C).
    5. Ali, Danish & Ur Rehman, Atta, 2020. "Adoption of autonomous mining system in Pakistan – Policy, skillset, awareness and preparedness of stakeholders," Resources Policy, Elsevier, vol. 68(C).

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