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Identifying critical factors that
influence community
acceptance of mining projects
Sisi Que
Dr. Kwame Awuah-offei
1
Introduction
The US consumes over 6.5 billion
tons/year of mineral & energy resources
----20 tons/person/year

Peru
• 245 social conflicts in June 2012
• >2,400 injured, >200 killed
(2006—2012)
2
Objectives
Characteristics of
mine

Accept or
Reject

Demographic
factors

3
Independent and
transparent information

Mine life

Management Environmental
and other
impact
Mine buffer

social

Infrastructure
improve
Population
change
Cultural impact

Traffic and crime
increase

Social
impact

Economical
impact

Environmental

Decision making
mechanism

Economical

Management

Characteristics of mine
Water pollution
Land pollution

Noise pollution
Air pollution

Job opportunities
Income increase

Cost of housing or
housing shortage
Labor shortage for
4
other business
Demographic
factors

Age

# of children

Gender

Job field

Income

Education

5
Online survey
Mining communities

6
Importance of the Factors
Median (95% confidence,
distribution free)

Mining factors
Labor shortage for other business
Population change
Infrastructure improve
Noise pollution
Cultural impact
Cost of housing or shortage
Independent and transparent information
Decision making mechanism
Traffic and crime increase
Income increase
Mine buffer
Mine life
Job opportunities
Water pollution
Air pollution
Land pollution

Land pollution and
subsidence

4
5
5
5
5
5
5
5
6
6
6
6
6
6
6
6

5
5
5
5
6
6
6
6
6
6
6
6
7
7
7
7

1

Not at all Important

2

Very Unimportant

3

Somewhat Unimportant

4

Neither Important nor
Unimportant

5

Somewhat Important

6

Very Important

7

Extremely Important

7
Correlative analysis of
mining communities
• Traffic and crime
increase
• Water pollution
• Air pollution
• Land pollution

• Population change
• Cultural impact
• Mine buffer

• Job opportunity
• Income increase

•
•
•
•
•
•

Cultural impact
Traffic and crime increase
Cost of housing or shortage
Land pollution
Decision making mechanism
Independent and transparent
information
• Mine buffer
8
• Mine life
Demographics of Respondents
Gender

Age

70%
60%

35%
Mining

30%

Control

50%
40%

15%

20%

10%

10%

Control

20%

30%

Mining

25%

5%
0%

0%
Male

18—25

Female

Education

26—34

35—54

55—64

>65

Annual income

40%

40%

Mining

Control

Mining

30%

30%

20%

20%

10%

10%

0%

Control

0%

9
Correlative analysis of
non-mining communities
• Job opportunity
• Labor shortage for
other businesses

• Job opportunity
• Noise pollution

• Cost of housing
or shortage
• Infrastructure
improvement
• Labor shortage for
other businesses
• Information
available

10
Mining and non-mining groups

1
2

Somewhat Unimportant

4

Neither Important nor
Unimportant

5

Somewhat Important

6

Very Important

7

N—Median of ranking from non-mining communities

Very Unimportant

3

M—Median of ranking from mining communities

Not at all Important

Extremely Important

11
Discrete Choice Model
Mixed logit
model (ML)

Daniel McFadden
2000 Nobel
Memorial Prize

Multinomial
probit model
(MNP)
Multinomial logit
model (MNL)
Random utility
maximization
(1959)

Pni

Prob U ni

U nj ,

i

j, i and j

J

(1)
12
13
Discrete Choice Experiment

14
Literature
Review

Mining
group

Control
group

Final
variables list

Proposed framework for
future research

Burden
study

Discrete
choice
experiments

Discrete
choice
model
15
16

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Sme 2014

Editor's Notes

  1. In order to create a model for dragline energy efficiency we need to study the factors that affect energy efficiency
  2. Keep it if have time
  3. Before any analysis doing any analysis on data the outliers had to identified and removed to avoid ant inaccuarte inference