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Journal of Cleaner Production 19 (2011) 278e284

Contents lists available at ScienceDirect

Journal of Cleaner Production


journal homepage: www.elsevier.com/locate/jclepro

Establishing a sustainable mining operation: an overview


David Laurence
School of Mining Engineering, University of New South Wales, Sydney NSW 2052, Australia

a r t i c l e i n f o a b s t r a c t

Article history: In a review of the literature on sustainability in mining, it was found that there is limited guidance for
Received 5 March 2010 mine operators to put sustainability frameworks and theory into action on the ground. This paper argues
Received in revised form that operators can improve the sustainability of their mine sites by ensuring that leading practices are
26 August 2010
implemented in five areas. In addition to the widely-accepted dimensions of Environment, Economic and
Accepted 27 August 2010
Community, Safety and Resource Efficiency must be addressed. The need for highlighting these addi-
Available online 6 September 2010
tional elements is demonstrated in an analysis of over one thousand unplanned or prematurely closed
mines over the past 30 years.
Keywords:
Sustainable mining
Ó 2010 Elsevier Ltd. All rights reserved.
Premature mine closures
Community
Economy
Environment
Safety
Resource efficiency

1. Introduction commonly-held view that economic growth, and ecological or


environmental values were incompatible. This growth-can-be-
The aim of this paper is to provide mine operators with guidance good concept struck a long-lasting chord with governments and
on improving the sustainability of their sites. It begins with business, as evidenced by the definition’s wide use 23 years later.
a review of the literature on sustainable development in the mining In the mining industry, the words were probably first used in the
industry. It then presents the results of investigations into non- early 1990s at fora such as the Rio Summit in 1992. Authors such as
sustainable mines typified by their premature or unplanned closure Von Below (1993) emphasised the importance of on-going mineral
in the last 30 years. Using this data, it is argued that more emphasis exploration, technological innovation, and environmental rehabil-
needs be placed the safety and resource efficiency areas of activi- itation if the impacts of depleting resources and environmental
ties, which, along with the other dimensions of economy, envi- degradation caused by mining are to be addressed. Allan (1995)
ronment and community, will help mine management achieve argued that sustainable mining could exist if the rate of use of
sustainability in their operations. minerals does not exceed the capacity to find new sources,
acceptable substitutes or recycle. Sustainable mining also includes
an environmental component, and miners should use the land with
2. Sustainable development and the mine operator care. Learmont (1997) illustrated with case studies of long-life
mines that mining can be considered a sustainable activity. The
For over 20 years, the words ‘sustainable’ and ‘sustainability’ conventional approach whereby miners can achieve sustainable
have been in the lexicon of governments and policy makers development by embracing social, environment and economic
throughout the world. It is generally agreed that sustainable concerns, was presented by James (1999).
development was first defined in 1987 by the Bruntland Commis- Views on sustainable development in the mining context seem
sion as “a system of development that meets the basic needs of all to be polarized. For example, Eggert (2006) described sustainability
people without compromising the ability of future generations to in the context of environmental quality, economic growth, and
meet their own life-sustaining needs” (United Nations, 1987). This social justice. Horowitz (2006) argues that even though mining and
definition marked a significant departure from the previous sustainability seem to be an oxymoron, the terms are not neces-
sarily antithetical. Rajaram et al. (2005) also suggested that
E-mail address: d.laurence@unsw.edu.au. sustainable mining could be considered an oxymoron:

0959-6526/$ e see front matter Ó 2010 Elsevier Ltd. All rights reserved.
doi:10.1016/j.jclepro.2010.08.019
D. Laurence / Journal of Cleaner Production 19 (2011) 278e284 279

Mine Closures 1981-2005


30%

Percentages of Closures
25%

20%

15%

10%

5%

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Primary Reason for Closure

Fig. 1. Mine closures 1981e2005 e primary reason for closure (Laurence, 2006).

“It is true that no single mine can last forever but this is really industry is to prolong (eg Webster), lengthen or extend. The pocket
not relevant. This is because sustainability encompasses many Oxford dictionary defines ‘sustain’ as “cause to continue or be
more values than the continuing availability of the resource prolonged for an extended period or without interruption”. This is
being developed. Indeed it is the very fact that mineral devel- an entirely achievable goal in the mining context. Even though it is
opment will end some day that makes the integration of those not possible for a mineral resource to last forever, it is possible for
other sustainability considerations into the mining process the mining operation and the benefits it provides to be prolonged. A
highly appropriate” (p. 2). useful analogy is the sustain pedal on a piano which, when
depressed, allows the strings to resonate long after the keys have
The authors also offer a definition of sustainability in the context
been pressed, but the resonation does not last indefinitely.
of mining, indicating that
A key question, therefore, is as follows: what does sustainability
“mining is sustainable when it is conducted in a manner that or sustainable development mean to mine managers and other
balances economic, environmental and social considerations, senior personnel who are engaged by their board to run
often referred to as the ‘triple bottom-line”, and that “sustain- a successful business? In this context, Rajaram et al. (2005) noted
able mining practices are those that promote this balance” (p. 3). that some businesses find the concept of sustainability to be too
vague to be able to understand the impact on their business. In an
And the discussion on sustainability continues to be relevant.
effort to clarify the situation, Hilson and Murck (2000) provide
There is current debate, for example, on the sustainability of surface
useful guidelines for mining companies seeking to operate more
coal mining in the Appalachian region of the USA. Despite many
sustainably. They listed six recommendations that if followed,
critics, at least one recent paper asserts that this is “one of the best
“would help any mine improve the sustainability of its industrial
examples of sustainable development not only in the United States,
practices” (p. 231): 1) improved planning, 2) improved environ-
but in the world” (Gardner and Sainato, 2007 p.48). This is based on
mental management, 3) cleaner technology implementation, 4)
the premise that the mining practices “create jobs, living space and
increased stakeholder involvement, 5) formation of partnerships,
recreation for this and future generations”. Many reject such claims,
and 6) improved training. The analysis adds significantly to the
including Hansen (2009) who described the practice thus:
knowledge base in transforming the many words on sustainable
“Mountaintop removal, which provides a mere 7 percent of the development into practical action on sites. Hilson and Basu (2003,
nation’s coal, is done by clear-cutting forests, blowing the tops p. 320) discuss further the difficulties of applying sustainable
off of mountains, and then dumping the debris into streambeds development to a mining context. The reasons cited include the
d an undeniably catastrophic way of mining. This technique has existence of innumerable frameworks and indicator sets and
buried more than 800 miles of Appalachian streams in mining a multitude of interpretations of sustainable development. The
debris and by 2012 will have seriously damaged or destroyed an authors propose a framework of sustainable development based on
area larger than Delaware. Mountaintop removal also poisons the three pillars underpinned by good governance (p. 329).
water supplies and pollutes the air with coal and rock dust.” The International Council on Mining and Metals (ICMM)
represents the views of most of the largest global mining and metal
Despite the considerable literature on the topic, including Glavic companies and regional and national mining associations in
and Lukman (2007), who provided a useful summary of the addressing the core sustainable development issues facing the
numerous sustainability terms and definitions, there remains industry. It developed ten principles to guide its member compa-
considerable misunderstanding and hesitancy for companies to nies on implementing sustainable development in their operations.
embrace sustainability in their operations. The first point of The principles are based upon the issues identified in the Mining,
confusion is about the word sustainability itself. Although dictio- Minerals and Sustainable Development (MMSD) project, a two-
naries list a number of meanings for the verb “sustain”, the one of year consultation process with stakeholders which sought to
most use to practitioners and stakeholders involved in the mining identify the issues relating to sustainable development in the
280 D. Laurence / Journal of Cleaner Production 19 (2011) 278e284

Mine Closures 1981-2005


20%

Percentage of Closures
18%
16%
14%
12%
10%
8%
6%
4%
2%
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Primary Environmental Impacts


Fig. 2. Major environmental impacts of mine closures.

mining and minerals sector. The principles include references to managers with tools to better manage their eco-conscious portfo-
ethical business practices; upholding fundamental human rights lios. Many financial institutions have also adopted the Equator
and respecting cultures; implementing risk management strate- Principles, which ensure that projects “are developed in a manner
gies; continual improvement in health, safety and environmental that is socially responsible and reflect sound environmental
performance; and contributing to the social, economic and insti- management practices” (Mason, 2008, p. 91).It needs to be recog-
tutional development of the communities in which mines operate nised that the DJSWI and the Equator Principles are voluntary and
(ICMM). non-binding and many investors, particularly in developing coun-
The principles broaden the definition of the triple bottom-line tries, are not required to adhere to them.
concept and provide strategic goals for corporations. However, they
ignore one important dimension that distinguishes mining from all
other activities: a focus on the mineral resource itself. The challenge 3. Sustainable Mines e a critical perspective
is to manage the resource in a sustainable way.
Before they invest in mining projects, financial institutions Temporary mine closures in Australia and to a more limited extent,
require that companies produce evidence of a business program internationally, were examined during the period 1981e2009
that adequately addresses sustainability issues in their projects, (Laurence, 2006, 2009). The sample size consisted of approximately
and apply stringent rules on resource companies looking for 1000 unplanned or premature mine closures. The research was
funding. As Mason (2008) indicates, many banks belong to the Dow divided into two periods: 1) 1981 to 2005, where the bulk of the
Jones Sustainability World Indexes (DJSWI), which track the closures occurred; and 2) 2005 to 2009, which included those mines
performances of sustainable companies and provide money that closed due to the Global Financial Crisis. The relevance of this
data is that around 75% of the mines that closed during that 30-year

Mine Closures 1981-2005


45%
Percentage of Closures

40%
35%
30%
25%
20%
15%
10%
5%
0%
Indus tr y image
Employ ees

inv es tment
Ster ilis ed or e

c ommunity /town
( bus ines s es etc )

oppor tunities
employ ee

Indigenous
Indir ec t
Regional/loc al

Death/los s of
Los s of

Primary Social/Economic Impact


Fig. 3. Major Socio-Economic impacts of mine closures.
D. Laurence / Journal of Cleaner Production 19 (2011) 278e284 281

period were unplanned or premature. In other words, the operations


were not sustainable.
Fig. 1 illustrates that around 25% of mines that closed in the
period between 1981 and 2005 were planned closures, due to
resource exhaustion or depletion. In these cases, the opportunities
for achieving the desired stakeholder outcomes could be maxi-
mised. For example, employees were able to work for lengthy
periods at their mine with certainty; governments obtained
maximum royalty, taxation and other fiscal benefits; environ-
mental outcomes could be planned and goals achieved over
a particular period of time; local businesses which supply or
depend on the mine could operate with certainty; and alternative
land uses could be planned with certainty as there will be no point
Fig. 5. Premature Mine closures 2005e2009 by Commodity Type (Laurence, 2009).
in re-mining the resource at some point in the future.
The following graphs illustrate the impacts that the premature
mine closures had in terms of sustainability. The environmental minerals at the time. Many new mines commenced as either re-
impacts (Fig. 2) are significant, and include all the usual issues incarnations of older closed mines or deposits that had been
associated with legacy sites including acid rock drainage; tailings; evaluated a number of times in the past and found to be sub-
waste rock and voids. The socio-economic impacts (Fig. 3) were economic. They appear to have commenced on the basis of a non-
grouped and included severe impacts on employees, as well as sustainable mix of extraordinarily high prices and low grades,
indirect impacts on contractors and local businesses, local metallurgical complexities or other reasons. These mines were the
government, demise of indigenous opportunities and sometimes, first to fall over when the price dropped dramatically.
death of a town. Importantly, it was noted in the research that The reasons for the premature mine closures illustrated in Fig. 1
sterilised ore was an issue. The safety and health impacts identified can be aggregated into broad sustainability dimensions as shown in
included vertical openings (a fall hazard); steep faces on open pits; Table 1. Table 2 illustrates that although the Economic dimension is
hazardous substances and so on (Fig. 4). the most significant primary driver of premature mine closure, the
A follow up study of mines that closed from 2005 until mid- (Resource) Efficiency dimension is also highly significant. Although
2009 reflected the impact of the Global Financial Crisis (Laurence, less significant, the community, environment and safety were also
2009), as illustrated in Fig. 5. Most of these more recent closures the primary reason for closure in 22% of cases.
involved the commodities copper, nickel, gold and coal. In the case The above analysis focused on those mines that were not
of coal, closures were due to falling commodity price; reduction sustainable and demonstrated that mine closure was due to
in sales volumes due to declining markets and lower demand; causation factors that included one of more dimensions of
safety issues, including regulatory intervention; high costs; adverse sustainability. The next question that needs further research is:
geological and geotechnical issues; and lower-than-expected what are the characteristics of truly sustainable mining operations?
reserves. Nickel and copper were hit particularly hard by a plum- The author worked for a number of years for a major mining
meting commodity price. Gold was not really affected by the GFC, company operating in Broken Hill, Australia. It mined silver, lead
and the closures were due to other reasons including stability of and zinc. This particular ore body is still being exploited 110 years
pit; technical issues; project funding issues (for expansions or after its initial discovery. Clearly, a world class mineral resource
working capital); deteriorating global capital markets; rising costs; with high metal grades is a major reason for its longevity. The view
costs pressures; low grades; operational issues underperforming; here is that attention to the dimensions of sustainable mining
strategic operational review e plant design and operational issues; practices has also been a key. This includes a focus on:
reached pit limit; delay in plant commissioning, which caused
suspension; voluntary administration; exhausted resources; and 1. The economics of the mine. Although the mine was located in
failure to meet environmental requirements. If these were to be a relatively isolated part of Australia (1200 km west of Sydney),
grouped, it would be seen that economic reasons caused many staff were constantly reminded that mining is a globally
closures but resource efficiency issues and others were also competitive business. Furthermore, mines are price takers not
significant. price makers and management could only control the cost-side
Mine closures were negligible between the end of 2004 and of the business. Being in the lowest quartile of the cost curve
mid-2007 because of the rising demand for metals and energy should enable the company to sustain itself if and when the

Mine Closures 1981- 2005


40%
Percentage of Closures

35%
30%
25%
20%
15%
10%
5%
0%
Vertical Voids Subsidence Landslips Hazardous Other
openings materials
Primary OHS Impact

Fig. 4. Major Health and Safety impacts of mine closures.


282 D. Laurence / Journal of Cleaner Production 19 (2011) 278e284

Table 1
Analysis of Premature Mine Closures by Reason for Closure.

Reason for Closure Percentage Sustainability


of total dimensiona
closures
1. High costs, low prices 23 Economic
2. Open cut resource depleted 8 Efficiency
(but remaining underground
resource)
3. Receivership/administration 7 Economic
4. Geology or geotechnical problems 4 Efficiency
5.The mine did not fit the (new) 4 Community (Economic)
company’s strategies
6. Low ore grades 3 Efficiency
7. Loss of markets 3 Economic
8. Regulatory or government 3 Community (Safety/
Fig. 6. Sustainable Mining Practices (after Laurence and Scoble, 2009).
intervention economic/environmental)
9. Floods/wet weather 3 Environment (Efficiency)
10. Production difficulties 2 Efficiency
11. Equipment/technical difficulties 2 Efficiency (Economic) 5. High environmental standards. The community surrounded
12. Lack of exploration 2 Efficiency (Economic) the mining operation and thus it was in its interests to protect
13. Safety 2 Safety the environment. It was one of the first in Australia to have its
14. Industrial relations 1 Efficiency
own nursery for tube stock for mine rehabilitation. It also
15. Poor grade estimation 1 Efficiency
16. Metallurgical 1 Efficiency provided free plants to employees. One of its employees
17. Other 6 All created (Albert Morris), in the 1930s, created a green belt
75% surrounding the mines, to repair the damage caused by timber
Planned closures 25% getting for mining and smelting and also to repair the effects of
a
Minor dimension in brackets. over-grazing by sheep.

The sum total of these initiatives was a mine with exceptional


longevity, staffed by a loyal, committed workforce living in a city
lead or zinc price dropped. Higher cost producers would have with amazing amenities considering its isolation, with a very stable
to close. population base. For a further review of the many more sustainable
2. Community support and engagement. The Zinc Mine as it was and well managed mining operations, see Learmont (1997).
known was the lifeblood (along with the North mine) of the
city. Examples of its strong corporate citizenship include
providing an amenities scheme whereby employees took out
loans from the company to purchase white goods, and other 4. Sustainable Mining practices e an alternative model
furnishings for a home. The company also provided low interest
home loans. It provided a kindergarten and employed teachers. The literature illustrates that mining can contribute to sustain-
It maintained two cricket ovals, a bowling green and a recrea- able development by focusing on successful economic, environ-
tional park for its workers and their families. It supported mental and community outcomes. However, in a mining context,
a local university. It supported the arts and the local repertory these pillars (the triple bottom-line) fail to adequately cover two
society. important areas. One is safety, which receives more attention in the
3. High standards of safety. The company was a global leader in mining sector than arguably any other industry. The media
safety innovations and being one of the first to employ safety coverage and political focus applied to any mine “accident” exceeds
officers. It was one of the first to insist on the wearing of virtually all other industries. It is common for regulators to force
personal protective equipment in the form of safety glasses and a mine to close on the basis of a poor mine safety record. Examples
hearing protection. Penalties for breaking the rules were severe include the Westray mine in Novia Scotia, the Lassing mine in
with a week’s suspension from work for a miner if he was guilty Austria, the Gretley and the Moura mines in Australia and the Sago
of a blasting infringement for example. Mine in West Virginia. Although acknowledged as extremely
4. A focus on mining the resource efficiently. The mine utilised six important by regulators and mining companies, its importance is
different underground mining methods some of which were not borne out in the literature on mining and sustainable
truly innovative, such as the Vertical Crater Retreat and development.
Undercut and Fill methods. The emphasis was on extracting as The second missing dimension is a focus on extraction practices
close to 100% of the ore body as possible, as the grades were of the mineral resource itself. In the literature, researchers have
exceptionally high and the ore valuable. tended to concentrate on the exhaustibility of the resource as
a depleting asset (Auty and Mikesell, 1998; Mikesell, 1994).
However, the researchers approach the subject from a macro level
Table 2
Sustainability Dimension and Premature Mine Closures. and usually from an economic perspective. It is suggested that there
is a need to focus on the micro level, at the individual mine site,
Sustainability Percentage of
Dimension Premature Mine
where the resource is managed sustainably or unsustainably. In this
Closures paper, this element or dimension is termed ‘resource efficiency’ or
Economic 44 simply ‘efficiency’. It separates mining from other industries and is
Efficiency 34 the basis or platform for any sustainable benefit to flow to the
Community 11 community. In most countries, the mineral resource is “owned” by
Environment 6 the State on behalf of the community; therefore, there is an
Safety 5
immediate link to the triple bottom-line.
D. Laurence / Journal of Cleaner Production 19 (2011) 278e284 283

Too often, an ore body or coal seam is mined without any regard of Kennecott Utah copper’s operations. He argues that it is better to
for the long term, resulting in a reduced mine life. In addition, produce for as long as possible from existing mines, rather than
government regulators rarely scrutinise how companies mine opening new mines elsewhere. This is as long as the mine can be
a particular deposit, usually focusing only on the safety and envi- made productive, within sustainability constraints. Basu and van
ronmental aspects. The reasons may be political, given that the Zyl (2006) use the word ‘efficiency’ in their model of sustain-
community has more of an interest in these aspects, or simply the ability in mining, embodied in the concept of industrial ecology. In
lack of technical expertise in government. this case, ‘efficiency’ is used in reference to both production and
Mine managers will be on track in establishing a sustainable energy use, not the mineral resource.
mining operation if they then focus on the following five areas:
safety, environment, economy, efficiency and the community (see 4.4. Environment
Fig. 6). A brief description of each dimension follows.
Adopting leading environmental management practices on
4.1. Safety mine sites makes excellent business sense. Unless steps are taken in
the planning and operational stages to protect environmental
For both ethical and business reasons, a mining operation values, long-term liabilities such as acid mine drainage, may result.
should aim to prioritise safety. Thanks in part to the increasing awareness of environmental issues,
Characteristics of safe mines include a commitment to risk there is considerable literature relating to the environment and
management; appropriate attitudes and behaviours; reporting sustainable development. This dimension includes the concepts of
systems need to be in place; a focus on education and training; and ecosystem integrity and natural resource productivity (Akerman,
a focus on processes and equipment (Laurence, 2005). 1998). The new context, however, is the interaction between
mining, global warming and other significant emerging issues. The
4.2. Economy potential for environmental disasters such as those that occurred at
Baia Mare, Los Frailos, Omai, OK Tedi and many more are ever-
Unless a mine is profitable, it cannot be sustainable. The aim for present. however. These events are subjected to criticism long after
mine managers is to generate profit responsibly for as long as the event and a recent example is Whitmore’s (2006) analysis of
possible by keeping costs to a minimum while maximising revenue. the Summitville mine acid mine drainage catastrophe of 1992. The
This will also maximise the equitable benefits to all stakeholders, environmental aspects of sustainable development in mining have
including shareholders, employees, local communities and busi- been covered fully elsewhere in the literature (eg Hilson and Murck,
nesses, which depend on the mine, as well as the governments that 2000, p. 229; DRET) and do not require repeating in this paper.
benefit by means of taxes and royalties. Yearling (2003 quoted in
Rajaram et al., 2005) makes the point that if a mining company 4.5. Community
integrates sustainable development into its operations, its
economic performance will improve in the form of lower labor Finally, a mine needs a ‘social licence to operate’. This has been
costs; fewer labor disputes, and increased retention rates; lower described as “generating social capital when a share of the wealth
health care costs; lower production costs; lower regulatory burden; generated finds its way back into the community for the de-
lower closure costs; lower cost of borrowing; lower insurance velopment of socially useful infrastructure and institutions”
costs; and improved investor relations. (Rajaram et al., 2005 p. 3). Unless the community is engaged and
supportive of a mining operation, opposition and confrontation
4.3. Resource efficiency may ensue. Mining operations run by corporations have been dis-
rupted on many occasions in the recent past particularly from local
A mine also has to be efficient in the way the resource is artisanal and small-scale miners, who were mining in many cases
managed and extracted. Mining engineers, geologists and metal- before the commencement of the larger-scale operations (Fisher,
lurgists collaborate to optimise resource extraction. Examples of 2007). The author recently experienced this first hand at an oper-
non-sustainable mining practices abound and include “high ation in the Philippines where small-scale miners tunnelled
grading” the ore body, which entails mining only the highest grade underneath an open pit bench. When the bench was blasted a large
material for short term gain. This is a practice used by companies void appeared that luckily did not result in injury or worse for
and individuals within those companies with a short time frame. either the small-scale miners or company personnel. The issue of
This, in turn, is a symptom of the high turnover at many mine sites large-scale and small-scale mining interaction is beyond the scope
and the drive to “make one’s name” as quickly as possible without of this paper but there are some excellent examples of innovative
regard for the longer-term extraction of the deposit. Particularly in solutions to this most difficult problem of coexistence in Ghana (see
these times of high commodity prices, it makes sense to consider for example Hilson, 2002; Aubynn, 2009). Zimbabwe is another
mining lower grades which will extend the mine life and thus example, where the rights of both small- and large-scale miners
stakeholder benefits, without compromising the revenue stream. have been contested for many years, originally in gold mining but
Another example is underground mining only the lowest horizon of more recently diamonds, culminating in the Eastern Highlands
a thick coal seam (>6 m), rather than mining the full seam thick- diamond rush and expulsion of a British mining company (eg
ness. Mines in China have been criticised for their safety record but Spiegel, 2009; Laurence et al., 1998).
due to the implementation of novel techniques such as longwall top Dysfunctional community interaction will ultimately distract
coal caving, it is possible to extract the full height of even a 10 m management from its main focus of efficiently running the mine.
seam, thus optimising the extraction of this valuable resource. Enlightened mining companies, particularly those operating in the
Efficiency also encompasses the management dimension at a mine developing world, maintain their social licence to operate by
site, as poor management decisions can often lead to production undertaking various initiatives, including preferentially employing
difficulties or equipment breakdown or industrial relations or other local people; training and providing skills in businesses or enter-
factors that impact on optimum resource extraction. prises that will endure after the mine closes and so on. An example
The literature is very scant on the resource efficiency dimension is the Sepon gold-copper operation in Laos, employing approxi-
of sustainability. It is touched upon by Weber (2005) in an analysis mately 7000. Most of the employees are drawn from the 70 villages
284 D. Laurence / Journal of Cleaner Production 19 (2011) 278e284

surrounding the mine. The company has built extensive training http://www.ret.gov.au/resources/resources_programs/lpsdpmining/Pages/
default.aspx.
workshops to provide electrical, mechanical, welding, automotive
Eggert, R., 2006. Mining, sustainability and sustainable development. In:
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