Content uploaded by Charles Roche
Author content
All content in this area was uploaded by Charles Roche on Jun 04, 2019
Content may be subject to copyright.
DEEP SEA MINERALS AND THE GREEN ECONOMY 59
Anticipating Social and
Community Impacts of
Deep Sea Mining
Charles Roche1 and Sara Bice2
1 Mineral Policy Institute
2 University of Melbourne
5.0
DEEP SEA MINERALS AND THE GREEN ECONOMY
60
Other chapters in this volume demonstrate that the mineral extraction potential of deep sea min-
ing could be enormous, that economic opportunities are driving Pacific Island states’ exploration
of deep sea mining, and that deep sea mining – if approached from a holistic environmental
perspective – might offer Pacific Island states economic means of achieving development goals.
But what of the social and community impacts of deep sea mining? How might communities be
affected or societies changed when the most socially disruptive aspects of mining shift offshore?
How can such impacts be predicted, measured, and monitored? And will communities be able to
register complaints successfully, exercise decision-making authority, or grant a social licence to
operate to an industry operating not in their backyards, but in their equally prized and culturally
important seas?
Discussion in this chapter is based on several key assumptions:
Ǯ that many of the common socio-cultural and socio-environmental concerns linked to terres-
trial mining will also be relevant to deep sea mining, although perhaps to differing degrees;
Ǯ that deep sea mining, like onshore operations, will be subject to regulation that requires
consideration, reporting, and redress of social impacts and formally lodged community com-
plaints; and
Ǯ that the risks and negative impacts Pacific Island communities perceive as being associated
with deep sea mining are just as important as the actual risks.
Finally, it is acknowledged that the term community is problematic, as it may appear to conflate
or ignore existing diversity, divergences, hierarchies, and power relations (Banks 2002). Keeping
this complexity in mind, the term is used here for ease of discussion.
Current knowledge suggests that deep sea mining will not directly impact local communities to
the same degree as terrestrial mining. The central question then becomes: how significant is the
impact from deep sea mining likely to be? The answer will lie, in part, with when and how issues
are assessed and changes identified. At this early stage, all parties must focus on how anticipat-
ed or identified impacts are to be addressed and create processes that involve local communities
in determining whether the balance between benefit and impact is satisfactory (Gibson 2000).
DEEP SEA MINERALS AND THE GREEN ECONOMY 61
The usual case for mining:
economic and development
imperatives
5.1
Mining is frequently associated with negative social and envi-
ronmental impacts on communities and environments. Never-
theless, strong cases are made for the continuation and expan-
sion of the mining industry, even in places where mining has
previously resulted in social or environmental catastrophes.
Besides the dependence of contemporary civilization on mined
products, perhaps the most common argument in support of ter-
restrial mining is its historical position as a lucrative industry. As
a new industry, the extent to which deep sea mining can deliver
similar (or any) economic benefits is yet to be determined.
In the case of onshore mining, economic benefits usually flow
to government in the form of taxes and royalties paid at a local
and national level. In certain situations in Pacific Island states,
such as on Lihir Island in Papua New Guinea, compensation
payments to the local community also comprise a significant
part of economic benefits (Bainton 2010). Such funds can have
extraordinary effects on local and national infrastructure, ame-
nities, and services, especially in developing nations. Economic
gains from mining have the potential to fund community devel-
opment, to boost education access and quality, and to improve
health and healthcare services. Compensation payments, when
invested well, can improve livelihoods, build small, local busi-
nesses, and generate greater community wealth. Other sub-
stantial economic benefits of mining may include, but are not
limited to, employment, local procurement, downstream pro-
cessing, investment in infrastructure, and local business oppor-
tunities (Esteves and Vanclay 2009).
Mining-company-funded corporate social responsibility pro-
grams are also increasingly common, with the major multina-
tional miners distributing hundreds of millions of dollars each
year. A range of voluntary initiatives specific to mining or its
primary products also shapes companies’ approaches to so-
cial responsibility. Such frameworks include the influential
Global Reporting Initiative’s Mining and metals sector supple-
ment (GRI 2010), the United Nations Global Compact, and the
International Council for Mining and Metals. Other initiatives
aim to encourage responsible mining practices through supply
chain pressure. EARTHWORKS’ “No dirty gold” campaign, for
example, targets jewellery companies, asking them to agree to
source gold that is mined in an ethical manner, aligned with the
initiative’s 10 Golden Rules (EARTHWORKS 2010).
However, and importantly, mining’s economic benefits are not
all benign. A growing number of studies suggests a negative
relationship between mining and economic indicators of de-
velopment (Davis and Tilton 2005). Some economics writers
now recognize that local communities often bear the brunt of
negative social impacts while the rents realised by the country
flow elsewhere (Davis and Tilton 2005). Especially in countries
where corruption is rife or in which strong financial governance
or business ethics are lacking, mining-derived wealth can be
a curse for local communities (Auty 1993). Monies intended to
support social initiatives, improved infrastructure, or health
campaigns can end up in the pockets of individual leaders, and
mining companies may be complicit in these exchanges, either
wittingly or unwittingly. Legislation, such as the recent Dodd-
Frank Act in the United States, and mechanisms, such as the
voluntary Extractive Industries Transparency Initiative (EITI), can
counteract financial corruption and help to ensure that mining
profits reach intended beneficiaries. Much work remains to be
done, however, before local communities in many developing
countries reap the benefits of extracted resources. Even where
strong regulation is in place, the economics of mining require
close examination and planning to ensure that mining benefits
host countries, regions, and communities, and to identify and
address the social costs of mining.
DEEP SEA MINERALS AND THE GREEN ECONOMY
62
Common social impacts of mining5.2
Predicting the impacts of mining on society is a complicated task
(Vanclay and Esteves 2011) that will differ from site to site and will
depend upon a range of factors, including project scale, point of
project life cycle, location, associated industries, economic ben-
efits and benefit distribution, cultural norms and expectations,
project alternatives and opportunity costs, related environmen-
tal impacts, regulation, and the perspectives or philosophies of
both the commissioning company and the assessor.
Understanding and addressing social impacts is further compli-
cated by the fact that mining and other resource developments
are often polarizing, both for those impacted and for those
assessing the impacts. There is an emerging, but still limited,
move away from traditional, tick-the-box assessment (Nish and
Bice 2012) towards more community-focused approaches, cre-
ating space for community voices and frequently involving long-
term, in-depth community engagement. This approach can offer
insights and opportunities unavailable through one-off engage-
ments by academics or impact assessment practitioners.
Communities learning about deep sea mining. Photo courtesy of Nautilus Minerals.
The social impacts commonly identified with terrestrial mining
operations can be organized into the 11 research-tested catego-
ries listed in Figure 5.1 (Bice 2011). Impacts can be both positive
(such as socio-economic development or provision of health-
care) or negative (such as loss of land access or conflict).
Current proposals for seabed mining in the Pacific Islands
region appear to involve little or no onshore presence, and
so the direct social impacts may well differ from those that
have been seen with terrestrial mining projects. However, as
deep sea mining exploration and development proceed, it
will be important for all parties involved to create an environ-
ment open to investigation and reporting. This environment
will enable continuous prediction and assessment of benefits
and negative impacts to ensure that related plans – includ-
ing impact assessment and mitigation, community relations
plans, and closure/rehabilitation plans – take into account
the considerable range of issues that may be associated with
mining projects.
DEEP SEA MINERALS AND THE GREEN ECONOMY 63
5.2.1 Social changes commonly associated
with terrestrial mining
It is vital to acknowledge that with mining comes change. This
is especially the case where there has been little develop-
ment before, or where mining has the potential to dominate
economic, political, cultural, or social life. Figure 5.2 summa-
rizes the types of change commonly associated with onshore
mining projects (Franks 2011) and categorizes these changes
Economy, employment, and work practices
Those impacts that can be directly related to the mine, involving changed economic and employment circumstances that sub-
sequently affect other aspects of social life, such as direct employment, contracting, wages, and housing affordability. Includes
issues related to shift and fly-in/fly-out (FIFO) work.
Family and home life
Includes changes to family structures, traditional family practices, living arrangements, and impacts on local housing and accom-
modation (e.g., availability).
Community identity
Those impacts that cause changes in the ways in which community members understand their culture, practices, intrasocial rela-
tionships, and unique community characteristics.
Insiders and outsiders
Those effects that result from the introduction of new people (often via FIFO workforces) into communities that are relatively iso-
lated (geographically or culturally), and the changes that occur amongst community members as a result.
Land use, ownership, and access
Those impacts that occur across the mine life cycle, from exploration to rehabilitation, including community engagement and
other interactions that consider issues of ownership, and can result in land use agreements, or that dictate how land is accessed
and used. Water use agreements and access to bodies of water must be considered with deep sea mining.
Gender and human rights
Those impacts that may have distinct ramifications for women or for gender roles in the community.
Impacts that may influence the ability of individuals within the community to realize their human rights, as defined under the UN
Universal Declaration.
Indigenous populations
Considers a range of effects that have unique and material impacts on the livelihoods, status, rights, roles, and situations of
indigenous or tribal people.
Community health
Includes impacts related to diseases/illnesses that may affect both the local community and the mine’s operations. Includes im-
pacts of disease that might be introduced by mining operations (e.g., sexually transmitted infections) and healthcare initiatives
(e.g., mining-company-funded malaria eradication program).
Infrastructure, services, and social amenity
Considers pressures and changes related to increased population and traffic, including service provision, social amenity (e.g.,
parks, gardens, community space) and infrastructure.
Socio-environmental
Includes social impacts related to environmental concerns, such as noise, dust, chemical use, and water pollution.
Conflict and protest
Includes any violent interactions, protests, or armed conflicts that are directly or indirectly related to the mine’s presence or oper-
ations. Also includes non-violent protest linked to mining or mining-related issues.
according to the social impact categories defined in Figure 5.1.
Impacts and changes brought by deep sea mining may differ
from the historical experience with terrestrial mining and will
not be felt by all stakeholders or felt at the same time. Consid-
ering Figure 5.2, for example, it appears that the impacts listed
under Community Identity, Infrastructure, Services and Social
Amenity, Insiders and Outsiders, Community Health, and Fam-
ily and Home Life will be less applicable for deep sea mining
than for terrestrial mining.
Figure 5.1 Common categories of social impact associated with terrestrial mining (Bice 2011)
DEEP SEA MINERALS AND THE GREEN ECONOMY
64
Type of Change / Areas Affected Social Impact Category/Risks, Benefits
Political, Social, and Cultural Change
Insiders and outsiders
Population and demographics In-migration, out-migration, workers’ camps, social inclusion, growth or decline
of towns, conflict and tensions between social groups
Crime and social order Corruption, domestic violence, sexual violence, substance abuse and trafficking,
prostitution, change in social norms, pace of change for vulnerable communities
Community identity, family and home life
Culture and customs Change in traditional family roles, changing production and employment base,
effects of cash economy, reduced participation in civil society, community cohe-
sion, sense of place, community leadership, cultural heritage
Infrasucture, services, and social amenity
Social infrastructure and services Demands on and investment in housing, skills (shortages and staff retention),
childcare, health, education, and training
Community health
Community health and safety Disease, vehicle accidents, spills, alcohol and substance abuse, pollution, inter-
ruption to to traditional food supply, awareness and treatment programs
Economy, employment, and work practices
Labour practices Health and safety, working conditions, remuneration, right to assemble, repre-
sentation in unions, labour force participation for women
Employment and competition
Political Pacific Island state government focus and resources on deep sea mining, oppor-
tunity cost for other development options
Confllict, gender, and human rights
Human rights and security States overriding community self-determination, suppression of opposition and
demonstrations, targeting of activists, rights awareness programs
Gender and vulnerablegroups Disproportionate experience of impact and marginalization of vulnerable groups
(e.g., women,disabled, aged, ethnicminorities, indigenous, and young), equity in
participation and employment
Economic Change
Economy, employment, and work practices
Distribution of benefits Employment, flow of profits, royalties and taxes, training, local business spend-
ing, community development and social programs, compensation, managing
expectations, equitable distribution across state/regional/local/ethnic/family
groups, cash economy
Industry Change in industry composition, dominance by foreign entities in a high-tech in-
dustry
Family and home life
Inflation/deflation Housing (ownership and rents), food, access to social services
Infrastructure, services, and social amenity
Infrastructure Demands on and investment in ports, power, communications, and related infra-
structure
DEEP SEA MINERALS AND THE GREEN ECONOMY 65
Type of Change / Areas Affected Social Impact Category/Risks, Benefits
Socio-Environmental Change
Socio-environmental
Pollution and amenity Terrestrial, coastal (port and transport), surface (spills and transport), and deep-
water (associated with mining activity) pollution
Community identity
Resettlement Consent and consultation for resettlement, compensation, ties to land, adequacy
of resettlement housing and facilities, equity, post-settlement conditions, liveli-
hoods
Disturbance Disruption to economic and social activities (including by exploration), consulta-
tion for access, frequency and timing, compensation
Land use, ownership, and access
Resources (access/ competition) Marine resources, subsistence fishing, cultural practices, scarce infrastructure
The Process of Change
Community engagement Consultation, communication, participation, empowerment, access to decision-
makers, transparency, timing, inclusiveness (particularly for vulnerable and mar-
ginalized groups), respect for customs and authority structures, reporting
Consent Cultural use of terrestrial and marine areas (free, prior, and informed consent),
community consent
Participation Planning, development of programs, monitoring, selection of alternatives and
technologies, operational aspects
Remedy Grievance and dispute resolution, acknowledgment of issues, compensation,
mitigation
Agreements Equity, timely honouring of commitments, issues with delivery, duress, clarity of
obligations, capacity, and governance (including government capacity to respond
to and manage change)
Community development Participation, adequacy, appropriateness, capacity to facilitate, consistency, pri-
oritization
Figure 5.2 Common changes induced by mining activities that can lead to social impacts and risks, adapted from Franks (2011) and
Bice (2011).
DEEP SEA MINERALS AND THE GREEN ECONOMY
66
Ongoing changes and impacts
Pollution, demographics, social, infrastructu-
re, culture & customs, community health,
labour, competition, gender & vulnerable
groups, human rights & security, distribution
of benets, ination/deation,
resources/access, competition, disturbance,
community engagement, social licence,
participation, remedy, agreements,
community development
M
a
r
i
n
e
R
e
s
e
a
r
c
h
E
x
p
l
o
r
a
t
i
o
n
F
e
a
s
i
b
i
l
i
t
y
R
e
s
e
a
r
c
h
&
F
u
n
d
i
n
g
C
o
n
s
t
r
u
c
t
i
o
n
O
p
e
r
a
t
i
o
n
R
e
h
a
b
i
l
i
t
a
t
i
o
n
C
l
o
s
u
r
e
L
o
n
g
-
t
e
r
m
M
o
n
i
t
o
r
i
n
g
P
h
a
s
e
t
w
o
P
h
a
s
e
t
h
r
e
e
P
h
a
s
e
o
n
e
Start of the
metal life cycle
RecyclingNew productsReduce consumption
Deep sea mining lifecycle - key stages and impacts
Source: Charles Roche
Figure 5.3 Deep sea mining life cycle
Ongoing changes and impacts
Pollution, demographics, social, infrastructu-
re, culture & customs, community health,
labour, competition, gender & vulnerable
groups, human rights & security, distribution
of benets, ination/deation,
resources/access, competition, disturbance,
community engagement, social licence,
participation, remedy, agreements,
community development
M
a
r
i
n
e
R
e
s
e
a
r
c
h
E
x
p
l
o
r
a
t
i
o
n
F
e
a
s
i
b
i
l
i
t
y
R
e
s
e
a
r
c
h
&
F
u
n
d
i
n
g
C
o
n
s
t
r
u
c
t
i
o
n
O
p
e
r
a
t
i
o
n
R
e
h
a
b
i
l
i
t
a
t
i
o
n
C
l
o
s
u
r
e
L
o
n
g
-
t
e
r
m
M
o
n
i
t
o
r
i
n
g
P
h
a
s
e
t
w
o
P
h
a
s
e
t
h
r
e
e
P
h
a
s
e
o
n
e
Start of the
metal life cycle
RecyclingNew productsReduce consumption
Deep sea mining lifecycle - key stages and impacts
Source: Charles Roche
The deep sea mining life cycle is potentially a long one, in
which the early phases – marine research, exploration, feasi-
bility studies, and fund raising – have already been in progress
for decades in certain areas. Figure 5.3, below, outlines three
key phases of the life cycle and shows that social impacts and
changes may apply to all phases in varying degrees and to dif-
ferent stakeholder groups, at household, local, regional, na-
tional, and international scales (Hajkowicz et al 2011).
Although deep sea mining is in the early phases of develop-
ment, it is important to be aware of issues related to scales
of impact. These issues are frequently controversial, as local
communities may disagree with national or regional govern-
ments about such concerns as customary usage, cultural
rights, ownership, and authority. The concerns become even
A life cycle approach to deep sea mining’s social impacts
more complex in a marine environment, where ownership may
be unclear or vary depending on exact seabed location, and
may also be subject to traditional, national, and international
norms, laws, and agreements. Here, the network of interest-
ed or potentially impacted stakeholder communities expands
to include other coastal communities, national governments,
neighbouring states, researchers, industry, and civil society.
With deep sea mining, even where there are no identified re-
source owners or communities suffering direct impact, the min-
erals are located in areas than many consider part of a global
commons. As such, these resources may be viewed as national
property in which every citizen has an interest, further compli-
cating processes of consultation, usage, and ownership. The
uncertainty of these boundaries will likely make it difficult to
define and agree upon who the impacted communities are.
DEEP SEA MINERALS AND THE GREEN ECONOMY 67
Mixed Community, Lau Ridge. Photo courtesy Chuck Fisher.
The depth, breadth, likelihood, and potential severity of the
social impacts of deep sea mining are as yet unknown, and
proposals to mitigate environmental impacts remain un-
tested. It is this very lack of experience and data related to
the impacts of deep sea mining that is perhaps the biggest
concern for communities. Moreover, a general lack of public
understanding about the deep seabed and its ecosystems
(Littleboy and Boughen 2007; Boughen et al 2010) means
that misinformation has appeared in public debate and fears
abound. Research suggests that the risks community mem-
bers perceive as being associated with a particular sector or
Valuing community perceptions of risk
operation may be as important in their impact on the commu-
nity as the actual risks supported by scientific data (Haines
2011). For the communities fearing such risks, the stresses
are real and inform their responses to industry and practice.
Communities’ perceptions of risks and impacts are greatly
informed by prior experiences and knowledge of terrestrial
mining operations. It is, therefore, helpful to review the his-
tory of terrestrial mining in Pacific Island states. This survey
(Section 5.3) provides a foundation for analysis of relevant
deep sea mining impacts later in the chapter.
DEEP SEA MINERALS AND THE GREEN ECONOMY
68