Extractive Industries & Local Communities

Extractive Industries & Local Communities

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    • 00:05

      [Extractive Industries & Local Communities]

    • 00:10

      MICHAEL L. DOUGHERTY, PHD: Hi.[Michael L. Dougherty, PhD Assistant Professor,Department of Sociology and Anthropology, Illinois StateUniversity]My name is Michael L. Dougherty.I'm a professor of sociology at Illinois State University,and I'm going to talk to you todaya little bit about extractive industriesand their relationships to local communities.[The New Extraction]Over the past couple of decades, we

    • 00:32

      MICHAEL L. DOUGHERTY, PHD [continued]: have entered a new era in the extractive industries,particularly within metal mining, that is characterizedby the movement of mining investment capital awayfrom traditional targets in economies like thatof the United States, Australia, and Canada,

    • 00:55

      MICHAEL L. DOUGHERTY, PHD [continued]: and toward emerging economies, new targets,places with relatively little experience with miningin the developing world.This trend is often referred to by scholarsas the new extraction.[The New Extraction]In Latin America and Africa, for example, investment in mining

    • 01:18

      MICHAEL L. DOUGHERTY, PHD [continued]: has tripled since the year 2000.[Mineral Activity Trends in Latin America (1990-2011)]In this graph, you can see mineral rents and oreand mineral exports-- in other words, mining productionin Latin America over what is essentially the past 20 years,and you can see that right around 2000,2002 production in mining began to increase dramatically

    • 01:42

      MICHAEL L. DOUGHERTY, PHD [continued]: in Latin America.This was a product of the increase in investment capitalthat took place over the 1990s, and youcan see with this graph sub-Saharan Africa looksrelatively similar around 2002, experiencinga substantial increase in mining production.[Ore and Metal Exports as % of Merchandise Exports Sub Saharan

    • 02:05

      MICHAEL L. DOUGHERTY, PHD [continued]: Africa, Developing Only (1996 2008)]So with these changes, with this increasein mineral production in the developing world,metal mining understandably has become increasinglycontentious with respect to economic and environmentalsustainability around the world.Many of these places have very little experience,

    • 02:25

      MICHAEL L. DOUGHERTY, PHD [continued]: as I said, with mining, and so they push backagainst these mining industries in creative and important ways.For example, with this photographthat I took while doing field work in Guatemala,you can see the graffiti at the bottom of the house there.It says [SPANISH] No to mining, yes to life.

    • 02:50

      MICHAEL L. DOUGHERTY, PHD [continued]: This photograph shows other anti-mining graffiti.This was taken in El Salvador, and youcan see it says [SPANISH].This is in the town of San Isidro Cabanas, in El Salvador.They are pronouncing themselves in resistance to mining,

    • 03:10

      MICHAEL L. DOUGHERTY, PHD [continued]: and you can see also the Canadian flag caricaturedthere.Most of the mining capital in Latin Americais Canadian capital.There are four main reasons that accountfor this phenomenon called the new extraction, fourmain reasons that account for this shift in mineralinvestment capital out of the wealthy countries

    • 03:33

      MICHAEL L. DOUGHERTY, PHD [continued]: of the global north and into the poorercountries of the global south.The first of these reasons can bethought of as technological advancements,technological innovations in mining productionthat essentially allow for lower gradedeposits, more diffuse deposits to beprofitably commercially mined.

    • 03:55

      MICHAEL L. DOUGHERTY, PHD [continued]: [Reasons for the New Extraction-- New technologiesthat allow for more diffuse deposits of mineralsto be profitably mined]This, in effect, expands of the surface areaof the Earth that's available to mining,and so it allows mining to then investin places that previously had not had much mining experience.A second main reason for the new extractionis the exhaustion, or at least the passing

    • 04:17

      MICHAEL L. DOUGHERTY, PHD [continued]: of peak production of many deposits in traditional miningeconomies.[Reasons for the New Extraction-- New technologiesthat allow for more diffuse deposits of mineralsto be profitably mined-- Exhaustionof deposits in traditional mining countries]The third reason has to do with neo-liberalizationand the opening of many developingeconomies to the world economy as of the 1990s,which created incentives and opportunities

    • 04:37

      MICHAEL L. DOUGHERTY, PHD [continued]: for foreign direct investment into these economies.[Reasons for the New Extraction-- New technologiesthat allow for more diffuse deposits of mineralsto be profitably mined-- Exhaustion of depositsin traditional mining countries-- Openingof developing economies to the world economy]And then the fourth and final reasonwhy we've seen this dramatic shift is the increaseddemand for metals-- for industrial metalsin particular-- as a product of the industrial growthin countries like Brazil, India, and Chinaover the past couple of decades.

    • 04:57

      MICHAEL L. DOUGHERTY, PHD [continued]: [Reasons for the New Extraction-- New technologiesthat allow for more diffuse deposits of mineralsto be profitably mined-- Exhaustion of depositsin traditional mining countries--Opening of developing economies to the world economy--Increased demand for metals as a product of industrial growthin Brazil, India, and China][Ecnomic Impacts of Mining]The new extraction brings with ita host of different kinds of impactson local economies, environments, and communities,and that's what I want to spend the restof this video discussing.

    • 05:18

      MICHAEL L. DOUGHERTY, PHD [continued]: To begin, the economic impacts of miningare often quite stark.The new extraction, new mining tendsto operate as what economists refer to as an enclave sector.[enclave sector]An enclave sector is an industry or a sectorof the economy that doesn't have many meaningful linkages--

    • 05:39

      MICHAEL L. DOUGHERTY, PHD [continued]: upstream and downstream linkages--with other industries.So mining does not tend to, for example, source inputsfrom local industry, and the capitalthat's invested in mining is usuallyimported from other countries.And mining doesn't produce thingsthat then serve as inputs into local industry either.

    • 06:01

      MICHAEL L. DOUGHERTY, PHD [continued]: So on both the downstream and upstream ends,mining does not interact very meaningfulor very substantially with the local economy.It operates as an enclave sector,which means that its contributionsto economic development are limited.Also, most of the jobs that mining producestend to be short term contract jobs.

    • 06:24

      MICHAEL L. DOUGHERTY, PHD [continued]: The higher level jobs require advanced degrees,and these are usually imported as well.The people that do these jobs are usuallybrought in from other countries.Large mining booms can also producewhat's known as Dutch disease, whichis another way in which mining can have

    • 06:45

      MICHAEL L. DOUGHERTY, PHD [continued]: deleterious economic effects.[Dutch disease]Dutch disease refers to a processin which sudden growth in the mining sector,such as the discovery of a new large depositor the passage of a new mining lawsiphons off labor and capital from moreproductive economic sectors like manufacturing,

    • 07:06

      MICHAEL L. DOUGHERTY, PHD [continued]: and then when the mineral boom ends and the mining industryshrinks, it leaves these other economic sectors weakened.Related to this, raw materials commoditiesare subject to wild price swings,and this means that economies thatare overly dependent on raw materials industries

    • 07:27

      MICHAEL L. DOUGHERTY, PHD [continued]: like mining tend to experience major up and downs thatcorrelate, that covary with the priceswings of global commodity prices.[Environmental Impacts of Mining]Moving on from economic impacts to environmental impacts,

    • 07:50

      MICHAEL L. DOUGHERTY, PHD [continued]: mining represents substantial environmental coststo local host communities.There are three chief ways in which miningcan damage the environment.[Chief Sources of Environmental DamageFrom Mining-- Removal of forest cover and overburden]The first of these is the removalof what's known as the overburden and the forestcover.

    • 08:10

      MICHAEL L. DOUGHERTY, PHD [continued]: The second of these is what's called acid rock drainageor acid mine drainage.[Chief Sources of Environmental DamageFrom Mining-- Removal of forest coverand overburden-- Acid rock drainage]And the third and final of these isthe process of storing and disposing of tailings.[Chief Sources of Environmental DamageFrom Mining-- Removal of forest cover and overburden-- Acidrock drainage-- Storage and disposal of tailings]Tailings are the byproducts of the mining process.The first of these effects to the natural environment--the removal of the overburden-- refers

    • 08:32

      MICHAEL L. DOUGHERTY, PHD [continued]: to the process of removing the many tons of surfacevegetation, dirt, and rock between the open airand the mineable deposits of ore.Removing what they call the overburdengenerates large quantities of dust.[desertification]It tends to contribute to desertification in many places.

    • 08:53

      MICHAEL L. DOUGHERTY, PHD [continued]: It disrupts ecosystems in many places,and it also makes places much morevulnerable to erosion in additionto the more aesthetic factors.[erosion]The second major environmental problem with miningis what's known as acid rock drainage.[acid rock drainage (ARD)]Acid rock drainage occurs when rocks that are high in sulfides

    • 09:16

      MICHAEL L. DOUGHERTY, PHD [continued]: are extracted from deep within the Earthand exposed to the oxygen in the air, and once they oxygenate,this causes them to release sulfuric acid and heavy metals.These toxins can then leach into water systems,and they can leach into the soil, whichcan have an adverse effect on wildlife,

    • 09:38

      MICHAEL L. DOUGHERTY, PHD [continued]: on ecosystems, and also on soil fertilityand agricultural productivity.And so mine operators tend to tryto neutralize these effects by covering these rocks with clayto prevent acid rock drainage, but this doesn't alwayswork entirely.And so acid rock drainage can pose a problem

    • 09:60

      MICHAEL L. DOUGHERTY, PHD [continued]: in certain borough communities.The third and final environmental problemrelated to mining has to do with tailings.[tailings]Tailings are the toxic byproduct of the mining productionprocess.Many metallic ores are leached with toxic chemicalsto recover the target metal.

    • 10:20

      MICHAEL L. DOUGHERTY, PHD [continued]: For example, in the case of gold and silver production,cyanide is often used to leech the metal.The byproduct of this process, known as tailings,is mix often of waste ore and these toxic leaching chemicals,which is then stored in a liquid form in what's

    • 10:41

      MICHAEL L. DOUGHERTY, PHD [continued]: called a tailings impoundment, or a tailings pond,or a tailings dam.And these are highly engineered containment systems,and they're designed not to rupture and notto leak, and most of the time, of course,they don't, but they do fail.

    • 11:01

      MICHAEL L. DOUGHERTY, PHD [continued]: Tailings impoundments do fail.They have failed many times over the past century,and when they fail, they release massive amounts of toxinsinto the environment, into water systems, and into the soil.There have been hundreds of tailings dam failures

    • 11:22

      MICHAEL L. DOUGHERTY, PHD [continued]: around the world over the past 100 years,and worryingly tailings dam failuresappear to be increasing in frequency in recent decades.By one recent count, there have been 33 major tailings damfailures around the world since 1990.

    • 11:44

      MICHAEL L. DOUGHERTY, PHD [continued]: This photograph is a photograph that Itook of the tailings impoundment at the Marlin Minein Guatemala.So that's a relatively small mine,and this gives you some sense of the massive sizeof a tailings impoundment at evenwhat is a relatively small commercial mine.

    • 12:05

      MICHAEL L. DOUGHERTY, PHD [continued]: [Community Impacts of Mining]So we've discussed economic impacts of mining,and we've discussed environmental impactsof mining, and the third and final category of impactthat I want to focus on here are the communityimpacts of mining, or what we might also

    • 12:26

      MICHAEL L. DOUGHERTY, PHD [continued]: think of as the social impacts of mining.Mining, in addition to its negative economic andenvironmental impacts, can have negative effectson the social organization of local communities.[Negative Community Effects-- Massive infux of outsidersto small, remote communities contributes to crimeand transforms local culture]The massive influxes of outsidersto small, remote, rural places can contribute substantially

    • 12:47

      MICHAEL L. DOUGHERTY, PHD [continued]: to crime and what some sociologistsmight refer to as deviant behavior.And they can also really transform local culture.Oftentimes, these massive influxesof people to these areas cause property values to spike,and that can cause rifts in the social fabric.[Negative Community Effects-- Massive influx of outsidersto small, remote communities contributes to crime

    • 13:07

      MICHAEL L. DOUGHERTY, PHD [continued]: and transforms local culture-- Causesproperty values to spike-- Rifts in the community between thosewho benefit from mineral developmentand those left out of the gains]It can cause rifts in the community between individualsand families that benefit from mining, from mineraldevelopment, and families and individuals whoare left out of many of the gains from mining.To address many of these community impacts,international legal instruments over the past few decades

    • 13:29

      MICHAEL L. DOUGHERTY, PHD [continued]: have begun to institutionalize a series of rightsfor host communities that are facing large developmentprojects like the introduction of industrial scale mines.One of the most prominent of these rightsis the right to free prior and informed consent,and this refers to the right of particular communities,

    • 13:50

      MICHAEL L. DOUGHERTY, PHD [continued]: usually indigenous communities, to grant or withhold consentfor a mining project before the mining project can begin.This is a right that's enshrined in international law,but is not a right which is in any way bindingand which most communities seek to exercise,

    • 14:13

      MICHAEL L. DOUGHERTY, PHD [continued]: but often are able to fully legally exercise,and mining companies, along with industry boosterslike the International Council on Mining and Metals,have sought to address the community impacts of miningover the past few decades by increasingcorporate social responsibility programming

    • 14:33

      MICHAEL L. DOUGHERTY, PHD [continued]: and making more elaborate efforts to produce communitydevelopment in mining host communities.And this is done in order to compensate communitiesfor what are perceived as these adverse environmental, social,and economic impacts.[Conclusion]

    • 14:56

      MICHAEL L. DOUGHERTY, PHD [continued]: To summarize and to conclude what we've discussed here,this phenomenon called the new extraction essentiallymeans that there is more mining in the developing world todaythan ever before.[Summary-- There is more mining in the developing world todaythan ever before]And because mining represents both positive and negativeeconomic implications for host economies and communities,

    • 15:17

      MICHAEL L. DOUGHERTY, PHD [continued]: it produces quite a bit of community conflict.[Summary-- There is more mining in the developing world todaythan ever before-- Mining representsboth positive and negative economic implications for hosteconomies]Mining also represents substantial environmental risksto local communities and substantial social risks,as well.[Summary-- There is more mining in the developing world todaythan ever before-- Mining representsboth positive and negative economic implications for hosteconomies-- Mining also representssubstantial environmental and social risks]As a result, communities are respondingto the new extraction and organizingagainst mining in new and innovative ways--

    • 15:39

      MICHAEL L. DOUGHERTY, PHD [continued]: in some cases, with quite a bit of success,but overall with varying degrees of success.[Summary-- There is more mining in the developing world todaythan ever before-- Mining representsboth positive and negative economic implications for hosteconomies-- Mining also representssubstantial environmental and social risks--Communities are organizing against mining in new wayswith varying degrees of success]Before I conclude entirely, I wantto leave you with a few references for further reading.There's a book called Mining in Latin America CriticalApproaches to the New Extraction that a colleague of mine and I,

    • 16:00

      MICHAEL L. DOUGHERTY, PHD [continued]: myself, have edited that will be in print in the summer of 2016.Another book by some colleagues, Bebbington and Bury,which was published in 2013, is called Subterranean StrugglesNew Dynamics of Mining Oil and Gas in Latin America.A third book by Michael Klare published in 2012

    • 16:25

      MICHAEL L. DOUGHERTY, PHD [continued]: is called The Race for What's Left The GlobalScramble for the World's Last Resources,and finally an edited volume from 2007 by Humphreys, Sachs,and Stiglitz this is called Escaping the Resource Curse.

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Extractive Industries & Local Communities

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Dr. Michael Dougherty discusses the new extraction, which is a new phase in the mining industries that is focused on extraction in developing economies using investment from developed economies. He describes the economic, environmental, and community impacts of the new extraction.

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Extractive Industries & Local Communities

Dr. Michael Dougherty discusses the new extraction, which is a new phase in the mining industries that is focused on extraction in developing economies using investment from developed economies. He describes the economic, environmental, and community impacts of the new extraction.

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