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MDIA p3 12 IRON ORE MINING AND TRANSPORT 150707

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IRON ORE is a very important product for the modern economy. The processes involved in the mining and transportation and transportation of iron ore are impressive, but very capital and energy intensive. Responsible mining is critical for both society and the environment.

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MDIA p3 12 IRON ORE MINING AND TRANSPORT 150707

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-12-IRON-ORE-mining-and-transport-150707.odp Peter Burgess (c) All rights reserved MDIA IRON ORE MINING AND TRANSPORT
  2. 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS
  3. 3. IRON ORE … essential to a modern industrialized economy MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. ... and a big industry extracting about 3.2 billion tons of IRON ORE a year (2014) MULTI DIMENSION IMPACT ACCOUNTING
  5. 5. MULTI DIMENSION IMPACT ACCOUNTING Production of Iron Ore by Country
  6. 6. MULTI DIMENSION IMPACT ACCOUNTING Production of Iron Ore by Country
  7. 7. MULTI DIMENSION IMPACT ACCOUNTING Production of Pig Iron by Country
  8. 8. MULTI DIMENSION IMPACT ACCOUNTING Production of Steel by Country
  9. 9. … but MINING is an industry that needs to face up to many very big ISSUES that are critical in the modern world where PROFIT alone is an inadequate measure of performance. MULTI DIMENSION IMPACT ACCOUNTING
  10. 10. ISSUES … Mining has a big IMPACT on the PLACE where the mines are located, including: … Displacement of PEOPLE … Degradation of the LAND … Pollution of the WATER … Degradation of the INFRASTRUCTURE MULTI DIMENSION IMPACT ACCOUNTING
  11. 11. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Gold Mining in Peru
  12. 12. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Gold Mining in Papua, New Guinea
  13. 13. ABANDONNED MINES … Eventually a resource is depleted and the mine is abandoned … it can no longer make profit for the owner. But the mine still continues to exist and in most cases will continue to be a source of pollution. The cost of remediation typically falls to society at large rather than the former owners … which is unreasonable. MULTI DIMENSION IMPACT ACCOUNTING
  14. 14. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Abandoned Mine Water Problems West Virginia USA
  15. 15. TOXIC WATER … The operation of a mine usually results in large amounts of toxic effluent. Water treatment is expensive and many mining companies avoid doing it … especially smaller operators in remote areas. Accountability at every mining location is required … and part of this will have to come from individual independent observers using social media and feeding a global database of business behavior. MULTI DIMENSION IMPACT ACCOUNTING
  16. 16. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Copper Mine Water Problems Shanghand, China
  17. 17. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Heavy metal water pollution Peru … Mercury Pollution
  18. 18. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Artisanal Mining for Gold in Africa
  19. 19. AMAZING MACHINERY … Very big and powerful machinery is used for modern mining. A huge amount of earth can be moved with this machinery. It is capital and energy intensive. MULTI DIMENSION IMPACT ACCOUNTING
  20. 20. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Heavy Duty Trucks Used to Move Iron Ore
  21. 21. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPHeavy equipment moving ore
  22. 22. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Heavy Machinery to Move Iron Ore
  23. 23. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPComplex and powerful mining equipment
  24. 24. OVERLAND TRANSPORT … Moving ore from mine to where it is to be used usually starts with overland transport … … Trucks … Trains … Conveyor belts MULTI DIMENSION IMPACT ACCOUNTING
  25. 25. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Iron ore train in Australia
  26. 26. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Iron ore train in Australia
  27. 27. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Road train for iron ore in Australia
  28. 28. OCEAN TRANSPORT … Moving ore from one country to another is done by ships that are growing in size all the time … taking advantage of economies of scale as the ships get bigger. MULTI DIMENSION IMPACT ACCOUNTING
  29. 29. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Loading Iron Ore in Cape Lambert, Australia
  30. 30. INTERIM OBSERVATIONS … Iron ore is a very important product, critical to the modern economy and a high standard of living … But the use of steel should take into consideration all life time impacts … and this means giving weight to eventual recycling. In addition impact efficiency needs to be practiced at all steps in the supply chain. MULTI DIMENSION IMPACT ACCOUNTING
  31. 31. Follow up: Request for Feedback Getting these ideas fleshed out into a clear, simple but comprehensive structure is a big job and remains a work-in- progress. Many organizations are making progress with this, but there is no broad universal framework yet that will enable all the pieces to come together and work efficiently. I would like to get feedback from anyone and everyone to help move this initiative forward. While I have some clear concepts about much of this architecture, there are many details that I do not know enough about and need help. So, please feel free to contact me (peterbnyc@gmail.com). Please put something relevant and catchy in the subject line. MULTI DIMENSION IMPACT ACCOUNTING
  32. 32. Some links and contact information: Peter Burgess … peterbnyc@gmail.com Peter Burgess LinkedIn profile https://www.linkedin.com/in/peterburgess1 Link to TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link to navigation for MDIA slidesets http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets MULTI DIMENSION IMPACT ACCOUNTING

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