A Study on Environmental Costs in Coal Mining Production in Vietnam

Thi H O Nguyen ,Duc Anh Ha ,Van Cuong Pham ,Van Thuan Hoang

doi:10.7176/rjfa/11-18-09

Abstract

This study is conducted to identify and present environmental costs of mining production in the context of sustainable development (SD) and a lifecycle of coal mining firms. This aim is accompanied by two research questions as (i) What are the environmental costs of mining production in theory and practice in a lifecycle of coal mining firms?; and (ii) What are the key determinants of environmental costs of coal mining production in a lifecycle of coal mining firms? In order to achieve this aim, the process of coal mining production is described from the long-term perspective including projecting, building, operating and liquidation stage of a coal mine. On the basis of process analysis the identification of environmental costs is conducted in a model approach. Environmental costs of mining production are analyzed using international case studies and theoretical and practical assumptions regarding environmental costs management in mining production are formulated. The results show that the environmental costs of mining production are varied in the lifecycle of a coal mine and that they also depend on the geographical location of mining firms. Environmental costs of mining production have to be predicted in a long-term perspective including also post-liquidation costs together with taking into account the sources of their covering and models of financing. Keywords: Coal mining production, mine, lifecycle of a mine, environmental costs. DOI: 10.7176/RJFA/11-18-09 Publication date: September 30 th 2020

Highlights

Extractive industries have an extremely harmful influence on the environment resulting from two main reasons
Theoretical approach to environmental costs in the lifecycle of the coal mining firms The lifecycle of a mine - which is the integral part of the mining enterprise - includes three main stages: (i) starting up, (ii) exploitation and (iii) liquidation
In each stage the environment is exposed to the negative influence of mining production and this influence could be limited through appropriate management approach

Summary

Introduction

Extractive industries have an extremely harmful influence on the environment resulting from two main reasons. Mining operations interfere with all segments of ecosystems in the case of both kinds of exploitation (underground, open pit or deep-seabed) (Fugiel et al, 2017; Le et al, 2007). They deform the surface, violate the hydro-system and cause water, air and soil pollutions. Their activity generates huge quantities of waste that require appropriate storage and management. After exhausting the current deposits, they would move on to find another attractive localization and start exploitation as new partners in new economic, geographical and civilizational conditions This is not conducive to lasting economic relations and loyalty to the social and business partners (Brzostek & Michna, 2016; Gorczyńska, 2011)

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Results

Conclusion