Presented at ANZSEE 2012 Conference 'Green Growth or De-growth?', 12-15 November, Bond University, Gold Coast.

1. A Social-Economic Framework
for Assessing Enduring Value
From Mining for Remote
Communities
Dr Boyd D Blackwell* & Prof. Brian Dollery**
*Post-doctorial Research Fellow, UNE Business School and CRC REP
** UNE Business School and Director, Centre for Local Government
boydb@une.edu.au
Presentation made to the 2012 ANZSEE
Conference, Green growth or de-growth? 12 – 15
November, 2012, Bond University, Gold Coast

2. Acknowledgements
• Traditional owners
• CRC REP and the Partners in this project
• Views are those of the authors
• Errors or omissions remain with the authors
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3. Outline
• Introduction
• Remoteness problems
• Methods for impact assessment
• Evaluation of methods
• Conceptual approach
• Conclusion
3

4. Introduction Jabiru
Community and
Ranger Mine
• This project one of six in the
Enduring Community Value
from Mining project
• Objective - to track and map
mining expenditure in and out of
remote communities
• Methodology - input output Tanami
analysis Newmont
Mine
• Two case study locations:
• Yuendumu and Tanami Gold
Mine, NT and
• Jabiru and Ranger Uranium Mine,
NT
Yuendumu
Community
Source: Manipulation of NT
Government 2012, p. 118

5. What do we do?
Who are we?
The CRC-REP is a collaborative
research platform that works with
communities, businesses and
people in remote regions of
Australia to systemically
investigate and provide practical
responses to the complex issues
that drive economic participation.
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6. Systems approach
to achieving
economic
participation
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7. Remote Australia
85% of area
BUT 4% of
population
(Chaney 2008)
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8. Locations of ATSI communities (DCITA, 2006)
Note
distribution
of ATSI
communities
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9. Mineral deposits and operating mines, Australia
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10. Mineral deposits and operating mines, Australia
Nth of Tropic of Capricorn 5% of Australian
population produces 50% of nation’s GDP (with
only 12 representatives in Canberra) (Young C
2012, pers. comms, CEO NTCoC, Darwin)
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11. Problems associated with remoteness (See Blackwell, Dollery and
Grant (In preparation) for references)
• Factors:
• Institutional
• Environmental or geographical factors:
• Health and wellbeing
• Cultural
• Economic
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12. Problems associated with remoteness (See Blackwell, Dollery and
Grant (In preparation) for references)
• Institutional factors:
• No local government representation in unincorporated Australia (see
Blackwell 2012)
• Distant decision making
• Limited management and provision of public services
• Highly complex political economy of governance
• State, non-state, formal and informal authority and governance
• A ‘failed state’ – the hole in Australia’s heartland (Walker, Porter and Marsh
2012, p. 27)
• Environmental or geographical factors:
• Tyranny of distance
• Isolation
• Harsh and extreme environments
• Mostly arid climate
• Limited or dispersed resources (in many cases)
• e.g. food and water
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13. Maps of unincorporated or sui generis areas in Australia
Source of Maps: Regional Development Australia 2012
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14. Problems associated with remoteness (See Blackwell, Dollery and
Grant (In preparation) for references)
• Health and wellbeing factors:
• High levels of disease and limited access to medical care
• Distance, communication and cultural inappropriateness
• Funding and coordination of health care
• Does not recognize responsible hospitals and primary care sector
• Education, housing and water
• Limited
• High cost
• ATSI participation in workforce and education low
• High proportion of disadvantaged people
• Chronic drug and alcohol abuse, in parts
• Higher rates of arrest and imprisonment, in parts
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15. Problems associated with remoteness (See Blackwell, Dollery and
Grant (forthcoming) for references)
• Cultural factors:
• Social variability
• Unpredictability in, lack of control over markets, labour and policy
• Social interaction
• Very restricted or very little access
• Human populations
• Sparse, mobile, patchy
• Research knowledge is limited
• Persistent traditional and local knowledge
• Incongruence of western and traditional laws (more details in Blackwell and
Dollery, 2012a presentation)
• Social dislocation (compounded over generations in a relatively short period of
time)
• Inability to keep young people and resulting boredom for those who remain
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16. Market and Cultural Incongruence
Hannah Bell (1998)
Aboriginal culture in NW WA Western Culture juxtaposed
• Deeply earth connected • Deeply disconnected
• Cultural traditions rhyme & reason • Distinction of roles blurred
• ‘Pattern thinking’ • Extensive freedoms
• Sharing – e.g., Humbug • ‘Pyramid thinking’
• Market and materialism
Clash of cultures and need for ‘two way thinking’
•Empathy
•Bush University, Caulfield Grammar exchange
What does this mean for assessing impacts??
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17. Assessment Approaches
• Given remote difficulties and hurdles
• How to assess state of play, socially, economically, environmentally?
• Range of assessment methods • Criteria for assessment:
• Strategic Environmental • Best purpose
Assessment • Holistic
• Cumulative Impacts Assessment • Systems based
• Integrated Assessment • Understandable
• Social, Economic, Environmental • Ease of practice
Impact Assessment • Cost
• Cost benefit analysis (CBA) • Democratic
• Cost effectiveness analysis (CEA) • Value inclusive
• Multi-Criteria Assessment (MCA) • Measureable
• Risk Assessment • Politically acceptable
• Citizen Juries • Data intensive
• Remote sensing and GIS • Strategic/global
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18. Evaluation (Blackwell, 2012)
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19. Evaluation continued.. (Blackwell, 2012, p. 41)
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20. Evaluation continued.. (Blackwell, 2012, p. 42)
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21. Assessment Approaches Summary
• Range of assessment methods with pros and cons:
• Strategic Environmental Assessment (early)
• Cumulative Impacts Assessment (synergistic, complex)
• Integrated Assessment (trans-multidisciplinary)
• Social, Economic, Environmental Impact Assessment
(disciplinary)
• Cost benefit analysis (project versus social, $ unit of measure)
• Cost effectiveness analysis (not max net benefits, but easier)
• Multi-Criteria Assessment (depends on criteria and weightings)
• Risk Assessment (institutionally hamstrung)
• Citizen Juries (democratic – expertise?)
• Remote sensing and GIS (can physical layers tell social story?)
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22. Conceptual approach to assessment: Systems based
approach incorporating ‘cradle to cradle’ lifecycle
Polity Mining Resources
Exploration
Benefits & Costs Benefits and Costs
Mining
Society
Economy
Export Manufacturing
Disposal, Re-use, -
Recycling,
Repair
Benefits and Cost
Environment/Ecosystems
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23. Systems thinking and market and non-market values of
mining Total Economic Value
Market value Non-market value
(captured by the market) (not captured by the market)
Direct use value
Net returns to mining
Use value Non-use value
operations
Expenditure by owners,
workers in economy Existence value
Passive use value
Recreational use of Value in knowing the
Indirect use value resource including land resources exist without
and water intended use
Income flows from original
Bequest value
expenditure through Option value
economy
Providing a healthy and safe
Increased rents and returns Future ability to use or
environment for future
on housing conserve resources
generations
Royalties and taxes collected
Vicarious value
by governments
Value of resources
conveyed through history,
culture, art, poetry, other
media
Benefits from development assessed through
market valuation
Benefits from conservation assessed through
non-market valuation
Source: Highly adapted from Turner (1993)
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24. Conclusion
• Impact assessment not simple and needs to account for:
• Informal market economy in community
• Significant ‘leakages’
• Incongruence between aboriginal culture and market based
philosophy
• Sui Generis of remote Australia
• Remote locations (like the NT) are unique culturally, socially,
economically, environmentally, institutionally and politically
• and this needs to be accounted for the approach
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