Tracking changes in the global impacts of metal concentrate acquisition for the metals industry in Finland

Resources, Conservation and Recycling 76 (2013) 12–20

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Tracking changes in the global impacts of metal concentrate acquisition for the metals industry in Finland Mari Tuusjärvi ∗ Geological Survey of Finland, P.O. Box 96, FI-02151, Finland

a r t i c l e

i n f o

Article history: Received 18 April 2012 Received in revised form 4 April 2013 Accepted 11 April 2013 Keywords: Material flows CO2eq Hidden flows Governance Mining Metals Natural resources Trade Finland

a b s t r a c t This article considers the environmental impacts and the governance framework of the domestic and international supply of iron, zinc, copper and nickel concentrates smelted and refined in Finland. The metals industry in the country is heavily dependent on imported concentrates, and the research is thus focused on defining the level of impacts related to mining and mineral processing abroad, and the change in the impacts between 2000 and 2010. The estimations of environmental impacts are based on waste minerals and CO2eq emissions, and the quality of governance in the set of indicators measuring different aspects of governance. The total amount of waste minerals and CO2eq emissions related to metal concentrates decreased over the ten-year period. At the same time, the quality of governance improved in all concentrate groups except nickel. Ore grade, mine type and transportation distance appear to be the most influential factors on environmental impacts. The results suggest that the country of origin can have a noticeable effect on the environmental impacts and the quality of governance of the mining and processing of metal concentrates. © 2013 Elsevier B.V. All rights reserved.

1. Introduction International trade has become a dominant mechanism for the supply of goods and commodities. Metallic mineral concentrates are one of the important classes of commodities traded overseas, and the metals industry is in many countries heavily dependent on imported raw materials. Finland is one of these countries, as 96% of iron and base metal concentrates smelted and refined in the country were imported in 2010. In this context, the environmental issues, quality of governance and the operational environment of mining in the origin countries of imported concentrates are interesting and important issues when considering the performance of the full production chain. The environmental effects of mining are widely recognized (see e.g. Aswathanaryana, 2003; Craig et al., 2010; Kessler, 1994), and without proper risk management, mining has a potential to cause substantial local environmental degradation. Most environmental impacts of metal mining are related to the removal and relocation of large quantities of metal bearing rocks. These include energy use and related GHG emissions, land-use issues, dust, and the potential to generate acid mine drainage (Akcil and Koldas, 2005). Water removal from the pit and its use in the beneficiation process can

∗ Tel.: +358 20 550 2414; fax: +358 20 550 12. E-mail address: mari.tuusjarvi@gtk.fi 0921-3449/$ – see front matter © 2013 Elsevier B.V. All rights reserved. http://dx.doi.org/10.1016/j.resconrec.2013.04.003

have a negative effect on the surrounding water-system, causing changes in the water level and deterioration in quality. The impacts in a specific mining site are dependent on the mining and processing methods, ore type, quality of impact prevention, and the ability of the local ecosystem to buffer the impacts. In this research, the amount of waste minerals generated at mine sites, and the CO2eq emitted during mining and mineral processing were selected to indicate the potential environmental effect of mining in those countries from which metal concentrates are imported to Finland. The CO2eq intensity of mining and mineral processing has previously been studied by Farrell (2009), who considered emissions from base metal mining, and by Norgate and Haque (2010), who focused on the mining and processing of iron ore, bauxite and copper concentrate in Australia. Natural Resources Canada (2005a,b) published estimates for energy consumption in Canadian open-pit and underground mines. Norgate and Jahanshahi (2006) examined the effect of falling ore grades and grinding sizes on life-cycle-based energy consumption and GHG emissions in the pyrometallurgical processing of copper and nickel. Later, the same authors examined the energy use and GHG emission intensity of the various alternative processing routes for metal extraction from low-grade metal ores (Norgate and Jahanshahi, 2010). The influence of lowering ore grades on the environmental effects of mining and mineral processing has also studied by Mudd (2007, 2010a,b) for gold and nickel mining, and by Glaister and Mudd (2010) for the mining of platinum-group metals (PGM). The environmental

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impacts of different metal production chains have been investigated in general by Norgate et al. (2007), for Japan by Adachi and Mogi (2007), and for different nickel products by Eckelman (2010). Schüller et al. (2008) compared the environmental performance of the copper industry in Chile and Germany, including both mining and metals processing. The study was close to the objective of this research, as one goal is to consider the environmental effects of the acquisition of metal concentrates for the Finnish metal industry in different countries. This links the research to the global trade of commodities, the dimensions of which have earlier been ˜ studied, for example, by Dittrich and Bringezu (2010) and Munoz et al. (2009). The environmental aspects of trade have been considered by Princen (1999), Endresen et al. (2003), Van Veen-Groot and Nijkamp (1999) and Van Veen-Groot et al. (2001). In Finland, an estimate of the physical dimensions of the trade of minerals is included in the national environmental accounting reports at the aggregated level (Statistics Finland, 2011). The hidden flows related to imported and domestic metal concentrates have been reported earlier as a part of research on environmental impacts related to material flows of the Finnish economy (Mäenpää et al., 2000; Seppälä et al., 2009; Koskela et al., 2011). Härmä et al. (2005) focused on the material flows related to domestic mining. The planning and implementation of the prevention of environmental impacts at mine sites is related to the quality of governance. Kaufmann et al. (2010) defined governance as to “the traditions and institutions by which authority in a country is exercised.” In this research, the main goal related to governance is to consider its quality in those countries from which Finland is importing metal concentrates. For this I used the Worldwide Governance Indicators (WGI) developed and maintained by the World Bank. To deepen the examination, I also added the Environmental Performance Index (EPI) by Yale University and Columbia University (EPI, 2010), and the Corruption Perceptions Index (CPI) by Transparency International (2012). The Policy Potential Index (PPI), published annually in the Fraser Institute’s mining survey (McMahon and Cervantes, 2011), was selected to consider the operational environment of mining and exploration companies in particular, and their willingness to invest in the areas of interest (see also Waye et al., 2009). The goal of this research is to clarify the possible changes during a ten-year period in the environmental burden and the quality of governance of the mining and mineral processing of iron, zinc, copper and nickel concentrates smelted and refined in Finland. As the majority of these concentrates are imported, the focus is on the potential impacts abroad. I also consider the drivers behind these changes, and the performance and possible future developments in the metal mining industry in Finland. 2. Indicators for material flows and climatic impacts The flows of metal concentrates and related waste minerals, and the climatic impacts were characterized by a set of indicators described in this section. Metal concentrate flows include the concentrates imported to Finland as well as the concentrates mined and processed domestically, excluding the exported concentrates. Waste mineral flows include the uneconomic mineral fraction generated during the mining and processing of these concentrates. The amount of CO2eq emissions generated during the mining, processing and transportation of concentrates was used to describe the impact to the climate. 2.1. Metal concentrate flows This indicator describes the quantities of iron, zinc, copper and nickel concentrates imported to Finland in 2000 and 2010. It also

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includes domestically mined and processed concentrates that were smelted and refined in Finland. The indicator does not include concentrates exported from Finland in the considered years. The data for the imported concentrates originate from official trade statistics for Finland. The CN classes used for this study include 2601 (iron ores and concentrates), 2608 (zinc ores and concentrates), 2603 (copper ores and concentrates), and 2604 (nickel ores and concentrates). Data for domestic mining originate from the mining statistics maintained by the Ministry of Employment and the Economy in Finland. 2.2. Waste minerals This indicator describes the expected amount of waste minerals generated during mining and processing of a specific concentrate type in a particular country. Country-specific mining data were derived from the RMG mining database (RMG, 2011), which has very good coverage of the metal mining industry in the countries dissected in this research (close to 100%). The coverage is lower for nickel mined in Finland (78% coverage), and the nickel statistics were completed by information published by companies and official statistics on mining in Finland. First the waste mineral intensity for each mine in a country was estimated. After this the country specific intensity for waste minerals (and CO2eq emissions) was estimated as a weighted average over the dataset. Annual metal production (metal in question) was used as a weighting factor. Estimations of the waste rock generated in individual mines were based on knowledge of annual mine-specific ore mining information using assumed strip ratios of 3:1 for open-pit mining, 0.9:1 for combined open-pit and underground mining, and 0.1:1 for underground mining. These general strip ratios were derived from those open pit mines in the RMG database for which the actual strip ratio or the amount of generated waste rock was reported. The value for open-pit mining is a median (50th percentile) and for combined open-pit and underground mining the 10th percentile of these strip ratios. The individual strip ratio was used for those mines for which it was reported. The amount of tailings generated from an individual mine was calculated from the estimated production of concentrates from that mine. The amount of concentrates was estimated based on the reported amount of metals produced using the following concentrations: 28% Cu, 15% Ni, 55% Zn, and 65% Fe in concentrate (Hukki, 1964), and 40% Ni in concentrate for Talvivaara mine. The waste mineral intensity for mines was estimated to remain unchanged from 2000 to 2010. This approach was selected because the data coverage of the RMG database is weaker for 2000 than for 2010. It was also considered that the probability of radical changes in the mining industry of an individual country over a ten-year period is small. An exception was made for Finland, where known changes in mining have occurred, and the good coverage of data for both years could be ensured. 2.3. CO2eq mining and mineral processing This indicator describes the expected amount of CO2eq emitted during the mining and mineral processing. The results are based on the estimated amount of electricity and fuels and related CO2eq emissions in individual mines based on energy use data presented in Table 1 and the same mining data used for the estimation of waste minerals. The energy use data is based on general electricity and fuel use per mined tonne in open pit and underground mines presented by Norgate and Haque (2010). This data represents the copper and iron ore mining in Australia. Data for mines in Finland was derived from annual reports and environmental permit reports (Table 1), and includes also the CO2 chemically liberated during the

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Table 1 Source data for energy use estimations for mining and mineral processing.

Energy use for mines in general Base metals – open pit Electricitya Light fuel oilsb Base metals – underground Electricity Light fuel oils Iron – open pit Electricity Light fuel oils Iron – undergroundc Electricity Light fuel oils

Median

Source

26.0 kWhe/t ore 3.4 kg/t ore

Norgate and Haque (2010) Norgate and Haque (2010)

46.4 kWhe/t ore 2.8 kg/t ore

Norgate and Haque (2010) Norgate and Haque (2010)

3.8 kWhe/t ore 3.4 kg/t ore

Norgate and Haque (2010) Norgate and Haque (2010)

46.4 kWhe/t ore 2.8 kg/t ore

Norgate and Haque (2010) Norgate and Haque (2010)

Energy use data for base metal mining in Finland Talvivaara Ni–Zn–Co mine (OP) 26.6 kWhe/t ore Electricity 6.5 kg/t ore Light fuel oils Hitura Ni mine (UG) 56.5 kWhe/t ore Electricity Light fuel oils 1.6 kg/t ore Pyhäsalmi Cu–Zn mine (UG) 60.9 kWhe/t ore Electricity 0.4 kg/t ore Light fuel oils a b c

Talvivaara annual report (2011) Talvivaara annual report (2011) Hitura environmental permit report (2010) Hitura environmental permit report (2010) Inmet 2011 corporation responsibility report Inmet 2011 corporation responsibility report

Combined electricity use of crushing, grinding and concentrating of copper ore. Original data for iron ore open-cut mining. Original data for underground copper mining.

mineral processing in Talvivaara mine. The data for South Africa is based on Nkomati mine, from which nickel concentrates were imported to Finland in 2010 (Norilsk Nickel, 2011). As mentioned also by Norgate and Haque (2010), the availability of data for metal mining in global, national and site level is still inconsistent. Pioneering work in this matter has been made by World Mine Cost Data Exchange Inc. and reported by Farrell (2009) who provides the site specific cost models for mines and at present also GHG emission models. As the obtained results based on the data provided by Norgate and Haque (2010) correspond relatively well the average CO2eq intensities for base metals reported by Farrell (2009) (see Section 5.4) the accuracy of the general data was judged sufficient for the objectives of this study. However, this results an uncertainty on results especially at a national level. The country specific CO2eq emission intensities of electricity were based on national energy mixes published by International Energy Agency (IEA, 2010) for 2000 and 2010, and the CO2eq intensity of light fuels (diesel) by using a GEMIS (2010) program for LCA, with GHG factors for 100 years defined by IPCC (2001). The country-specific average CO2eq intensities were then calculated from mine-specific estimated emission figures by weighting those mines that produce most of the metal of interest. Emission intensities for concentrates were derived from the emission intensities of metals by using the same metal percentages as in estimations for waste minerals.

ships, 15 g/tkm for 14,000 TEU container ships, and 6.8 g/tkm for train transportation (LIPASTO, 2010). 3. Allocation The allocation of CO2eq emissions and waste minerals between mined metals was based on the intensity of impacts per produced metal unit. In this approach, the total mass of all mined metals defines the mine-specific CO2eq and waste mineral intensity, and all mined metals have the same t/t intensity of impacts. The approach is equivalent to mass-based (MB) allocation (Tuusjärvi et al., 2012). This approach was selected for this study as it reflects the efficiency with which the mined material is utilized in mines (i.e. the total amount of utilized metals relative to the mined ore), and thus clarifies the comparison between countries. Results were also calculated by using economic allocation and normalized mass-based (NMB) allocation (Tuusjärvi et al., 2012) to examine how much the selection between allocation methods affects the results. 4. Indicators for governance quality The purpose of these indicators is to describe the quality of governance in the origin countries. The objective is to consider especially the quality of regulation and its implementation, and the interest of mining and exploration companies in investing in these countries.

2.4. CO2eq transportation 4.1. Worldwide Governance Indicators (WGI) This indicator provides the estimated CO2eq emissions related to the sea transport of metal concentrates. Concentrates were assumed to be first transported from the origin countries to Rotterdam, the Netherlands, by 14,000 TEU container ships, and from Rotterdam to Finland by 1000 TEU container ships, which are the largest container ships able to operate in the Baltic Sea. Concentrates from Ireland and Norway were assumed to be transported to Finland by 1000 TEU container ships. Imports of iron concentrates from Russia and Sweden are transported to Finland by train. The CO2eq emission factors used were 42 g/tkm for 1000 TEU container

The Worldwide Governance Indicators (WGI) is an indicator set that describes the quality of various aspects of governance. Indicators are maintained by the World Bank and are updated on an annual basis. The methodological background for these indicators is described by Kraufmann et al. (2010). WGI compiles and summarizes information from 30 existing data sources that report the views and experiences of different stakeholders. These include surveys of firms and households, as well as the assessments of business information providers, non-governmental organizations,

M. Tuusjärvi / Resources, Conservation and Recycling 76 (2013) 12–20

and a number of multilateral organizations and other public sector bodies. The indicators selected for this study are Voice and Accountability (VA), which describes the perceptions of the ability of a country’s citizens to participate in the selection of their government, as well as freedom of expression, freedom of association, and freedom of the media; Regulatory Quality (RQ), which describes the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development; and Rule of Law (RL), which describes the extent of confidence in the rules of society, in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. 4.2. Corruption Perceptions Index (CPI) The Corruption Perceptions Index describes the perception of corruption in the public sector of countries. The index is maintained by Transparency International and is updated annually. The CPI is an aggregate indicator that combines different sources of information on corruption. The sources used for the 2000 index are described by Lambsdorff (2000) and for 2010 by Transparency International (2010). The surveys and assessments used to compile the index include questions relating to bribery of public officials, kickbacks in public procurement, embezzlement of public funds, and questions that probe the strength and effectiveness of public sector anti-corruption efforts. 4.3. Environmental Performance Index (EPI) The Environmental Performance Index describes how close countries are to established environmental policy goals at the national government scale. The index is maintained by Yale University and Columbia University in collaboration with the World Economic Forum and the Joint Research Centre of the European Commission, and the methodological background is described by Emerson et al. (2010). The index is updated annually and is based on a wide range of data sets from international organizations, NGOs, government agencies and academia. The data include official statistics, modelled data, spatial data compiled by research or international organizations, and observations from monitoring stations. As this indicator is relatively new and no data are available for 2000, the indicator allows only a dissection of the environmental performance of different combinations of origin countries. 4.4. Policy Potential Index (PPI) The Policy Potential Index describes the interest of mining and exploration companies to invest in different countries. The willingness to invest reflects the potential to find new mineral resources from the area, but also the transparency and predictability of the local governance, and the political conditions for mining entrepreneurship. The index is published annually as part of a “Survey of Mining Companies” by the Fraser Institute (for the 2010/2011 survey see McMahon and Cervantes, 2011, which also provides information for the years 2006/2007). The survey is based on the perceptions of the 494 exploration, development, and other mining-related companies around the World. 5. Results 5.1. Metal concentrate flows The total amount of smelted and refined concentrates in Finland was 5136 kt in 2000 and 4415 kt in 2010 (Fig. 1a and Table 2).

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The total amount of metal concentrates decreased, but the share of domestic concentrates increased over the studied ten-year period (from 1.9% in 2000 to 2.7% in 2010). Iron concentrates dominate the material flows of metallic concentrates in Finnish foreign trade, and accounted for 76% of all metallic mineral concentrates used in Finland in 2000 and 68% in 2010. Iron ore is not mined in Finland, and the primary (not recycled) raw material supply of iron is based entirely on imported concentrates. The total amounts of zinc and nickel concentrates increased, and copper concentrates decreased from 2000 to 2010. Also the domestic mining and processing in all concentrate groups (except iron) increased during the period. 5.2. Waste minerals Although iron concentrates dominate the material flows of valuable concentrates, the mineral waste flows related to iron concentrates comprised only 14% of the total amount of mineral wastes in 2000 (Fig. 1b and Table 2) of which most were formed in Russia. In 2010, the share was even less: 4% of which majority was formed in Sweden. The largest amount of mineral wastes was associated with copper concentrates in studied years, comprising 59% and 66% of total mineral wastes in 2000 and 2010, respectively. In 2000 these wastes were mainly associated with concentrates produced in Chile, Argentina and Indonesia, and in 2010 in Peru and Chile. Waste minerals related to zinc concentrates were in 2000 mainly formed in Spain, USA and Sweden, and in 2010 in Sweden, USA and Peru. For nickel concentrates, waste minerals were mainly formed in 2000 in Australia and in 2010 in Finland. The decrease in total waste minerals was mainly associated with the decreased imports of iron concentrates from Russia. In Finland, the amount of waste minerals increased notably from 2000 to 2010. The increase was associated with the increased mining and processing of nickel and zinc concentrates. 5.3. CO2eq emissions The total CO2eq emissions related to mining and mineral processing and transportation decreased slightly during the studied ten-year period (Fig. 1c and Table 2). The most important decrease occurred for iron concentrates. The most important factor for this was the decreased imports from Russia, which increased the relative importance of Sweden as an origin country. Although the iron concentrate imports from Mauritania were relatively small in 2000, the long shipment distance caused almost half of the CO2eq emissions related to the transportation of iron concentrates in this year. For copper concentrates there was a minor decrease driven by the reduced amount of copper concentrates used. In 2000 the main impacts occurred in Indonesia, Chile and Argentina, while in 2010 the impacts occurred in Peru, Chile and Portugal. The transportation related CO2eq also decreased although the actual distances did not change notable. CO2eq emissions related to copper concentrates accounted 38% of the total emissions in 2000 and 50% in 2010. For zinc concentrates, the amount of CO2eq emissions increased alongside the imports. In 2000 the main impacts occurred in Ireland, Spain and USA while in 2010 the countries were Ireland, Sweden and Peru. The emissions related to transportation increased alongside the increased total volume of imports, especially from Peru.

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Fig. 1. (a) The amount of metal concentrates smelted and refined in Finland, and the associated (b) waste minerals and (c) CO2eq generated during the mining and processing (m&m), and transportation (tr) of these concentrates.

For nickel concentrates, the CO2eq emissions from mining, mineral processing and transportation decreased. There were major changes in the origin countries for this commodity, which had effect also on the emissions. The biggest impact in 2000 occurred in Australia and in 2010 in Finland,

which is a derivative of the increased domestic mining of nickel. Notable amount of nickel concentrates were also imported from South Africa in 2010 but the CO2eq emissions related to these nickel concentrates were estimated to be minor.

Table 2 The localization and amount of waste minerals and CO2eq emissions related to metal concentrates smelted and refined in Finland. Imports/use in Finland [kt]

Waste minerals [kt]

2000

2010

2000

153 1040 2711 3904

0 40 2982 3022

690 7632 2370 10,692

Zinc concentrate Canada Finland Ireland Peru Spain Sweden USA Other countries Sum

33 31 115 5 89 65 84 57 480

38 73 202 48 0 163 65 44 633

Copper concentrate Argentina Brazil Canada Chile Finland Indonesia Morocco Peru Portugal Turkey Other countries Sum

56 0 0 116 42 132 0 0 83 23 58 511

Nickel concentrate Australia Botswana Finland Norway South-Africa Sum

Iron concentrate Mauritania Russia Sweden Sum

In total

CO2eq m&ma [kt] 2000

2010

2000

– 294 2606 2900

5 63 72 140

– 2 80 82

24 2 6 32

– – 6 6

414 490 607 149 4648 1015 2244 1299 10,866

483 1148 1066 1403 – 2533 1729 1135 9496

4 10 27 2 31 9 23 14 120

5 21 36 19 0 22 17 9 129

6 – 15 2 12 – 15 7 57

7 – 26 19 – – 12 5 68

0 17 21 81 51 0 33 145 144 17 1 509

12,189 – – 15,739 446 11,229 – – 492 76 5171 45,342

– 1640 2883 10,930 540 – 557 25,217 857 54 110 42,788

59 0 0 143 9 168 0 0 13 3 51 446

0 17 16 106 10 0 27 170 17 2 1 366

15 0 – 42 – 44 – – 10 3 15 128

– 4 4 29 – – 4 57 18 2 0 118

192 0 25 25 0 242

65 11 34 5 136 251

7458 – 1208 1071 – 9737

2504 1081 6229 220 9 10,042

88 0 21 9 0 117

17 11 73 2 3 106

69 – – 2 – 71

23 3 – 0 40 67

5136

4415

76,638

65,228

823

683

288

259

Numbers in italics = estimated. a Mining & mineral processing. b Transportation.

2010

CO2eq trb [kt] 2010

M. Tuusjärvi / Resources, Conservation and Recycling 76 (2013) 12–20

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5.4. Material and emission intensity and the effect of allocation The waste mineral and CO2eq intensities per tonne of metal in concentrate and the effect of allocation methods are presented in Fig. 3. Also the CO2eq intensities estimated by Farrell (2009) are included as a reference. Farrell used mass-based allocation in his study. For zinc and copper the results correlate relatively well but for nickel there is a larger difference reflecting the differences in the source data and probably also the dominance of specific mines for nickel in this research. In the results there is no marked difference in the intensities for iron and zinc between years and allocation methods. However, for copper and especially for nickel differences are greater. For nickel the differences can be explained by the increased production from mines utilizing multiple metals. For copper in 2000, the differences can be explained by concentrate production in Indonesia, where copper is mined with gold and silver. Relative to economic allocation, NMB allocation emphasized gold and silver in this case more than copper. As the total amount of mined metals in copper mining remains low, the MB allocation produces relatively higher waste and emission intensities. In 2010, molybdenum and gold mined with copper in South America also reduced the intensities calculated after NMB relative to economic and MB allocation. For nickel, the differences in the results were due to differences in the allocation for Finnish and South African nickel mining which produce multiple metals alongside nickel. In these cases, the economic method allocates significantly greater impacts to nickel than the other methods. Based on mass-based allocation the waste mineral and CO2eq intensities for metal in concentrate decreased in all groups during the study period. The waste mineral and CO2eq intensity of iron concentrates halve in ten-years, which is clearly noticeable in totals (Fig. 1 and Table 2). Waste mineral intensities estimated in this research are generally higher than those reported by Mäenpää et al. (2000) and Seppälä et al. (2009). For iron concentrate, the intensities correlate well and for zinc relatively well. For copper and nickel concentrates the differences are relatively marked. Differences in these factors are most likely related to the different selection of mines for the analyses, and reflect the variable characteristics of individual mines. The differences also result higher total waste mineral flows for imported concentrates than in earlier studies. Fig. 2. Changes in the governance indicators from 2000 to 2010.

5.5. Changes in the quality of governance The selected set of indicators revealed clear differences between concentrate groups, and are summarized in Fig. 2 and Table 3. For iron, the good results in 2000 increased to very good in 2010. This was caused by the decreased imports from Russia and Mauritania, which increased the weighting of Sweden in the calculations. The most noticeable change occurred in PPI results, which reflects the high interest of mining and exploration companies to invest in Sweden. WGI results increased on average by 27% to a very high level, alongside the CPI, which also increased by 27%. Furthermore, the EPI increased by 11% over ten years. For zinc concentrates, the quality of governance was already very good in 2000, and in 2010 the results changed only slightly. The WGI results decreased in average by 2%, and the CPI and EPI values increased by 2% and 3% respectively. The most noticeable change occurred in the PPI, which increased by 18% during the period. This reflects the increase in the PPI values for Ireland and Sweden. For copper concentrates the WGI values increased on average by 9%. Changes in the other indicators were relatively at the same level, as the CPI increased by 10%, the EPI by 12% and the PPI by 14%. The main reasons for the increase were the increased imports from Portugal and cessation of importing from Indonesia. The general

increase in the PPI value for Finland, Chile and Peru also affected the results for this indicator. In contrast to other concentrate groups, the quality of governance of nickel concentrates noticeably decreased during the ten-year study period. This was related to the increased importance of South Africa as an origin country. From 2000 to 2010, the WGI results decreased on average by 20% from very high to average level. The CPI decreased by 26%, the EPI by 15%, and the PPI by 40%. Except for the PPI, the results still remained at a good level, despite the noticeable decrease, and the WGI and CPI results even exceeded the same results for copper concentrates in 2010. 6. Discussion The objective of this research was to track changes in the global environmental impacts and governance quality of the metallic concentrates smelted and refined in Finland. To achieve this goal I constructed an indicator set measuring the material flows, climatic impacts, law making and implementation, level of corruption, and mining and exploration companies’ willingness to invest. The results for material flows and CO2eq indicators were mainly based on numerical data collected from different databases and

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Fig. 3. The waste mineral and CO2eq intensities for metals in concentrates, and the effect of the selected allocation method on them.

previous studies. The data include many generalizations in mining and mineral processing technology and the energy use and the selection between allocation methods which adds uncertainty to the results, especially for copper and nickel. For these reasons, the results should not be considered as absolute, but giving a general level of impacts expected for different countries, which allows them to be compared. The general nature is also valid for governance indicators, as they describe the performance of countries in relation to each other. The results suggest that Finland has a markedly higher environmental impact abroad generated by mining and mineral processing compared to the domestic impacts. The reason for this is a high dependency on imports of iron and base metal concentrates. The impacts decreased from 2000 to 2010 due to decreased amount of concentrates needed and due the changes in the distribution of countries from which concentrates are imported. The decreasing trend in the environmental impacts perceived for iron and copper concentrates from 2002 to 2005 by Seppälä et al. (2009) thus continued in 2010. In addition to reduced use, the decrease was driven by the increased contribution of the countries with underground mining, as concluded also by Seppälä et al. (2009), which reduced the amount of mined ore per produced concentrate tonne, and associated waste minerals and CO2eq emissions. The data used in this study did not gave an opportunity for closer look on the possible site specific correlations between the metal content in ores (i.e. ore grade) and energy use. However, the correlation between mined ore per produced metals (i.e. ore grades), CO2eq emissions and waste minerals can be noticed from the results especially for iron and zinc. The correlation between the ore grades and environmental impacts has also been observed earlier by many authors (e.g. Norgate and Jahanshahi, 2006, 2010; Mudd, 2007, 2010a,b; Glaister and Mudd, 2010). The decrease in the CO2eq intensity of the energy production system in many countries also had some effect on the total CO2eq emission level. The CO2eq related to transportation was relative high compared to the CO2eq emitted from mining and mineral processing. Changes in the distribution of origin countries additionally affected the quality of governance. The biggest changes (mainly positive but also negative) from 2000 to 2010 occurred in the PPI, which reflects the willingness of companies to invest in mineral

exploration. Changes in this indicator not only reflect changes in the distribution of origin countries, but also a more positive investment climate in 2010 relative to 2000. The results of the governance indicators suggest that countries differ greatly in their ability to plan and implement mining regulation, and poor performance in this is not favourable for mining and exploration companies, the general public or the environment. National governance defines the framework in which mining and mineral exploration is performed in each country, and its quality is one type of necessity to implement the sustainable use of these resources. 6.1. Drivers behind the changes observed in the concentrate groups For iron concentrates, the environmental and governance quality of the imported concentrates increased in 2010 to a very high level. In this year, most of the iron concentrates were imported from neighbouring country Sweden. This country has a very CO2eq emission-efficient energy production system based on water and nuclear power, underground mining of iron, and a high level of development of governance. This results in low waste mineral and CO2eq intensities and high scores in governance indicators. The emission intensity of the Russian energy production system also decreased during the study period, which also reduced the total CO2eq emissions associated with iron concentrates. For zinc concentrates, the total amount of concentrates increased and alongside this the CO2eq emissions. The amount of waste minerals decreased which was mainly driven by the increased importance of Ireland and Sweden as an origin countries. The decreases in the CO2eq intensity of the energy mix in many origin countries also affected the results. The importance of Ireland and Sweden as origin countries also had a positive effect on the investment willingness. The production and use of domestic concentrates increased which increased the domestic environmental effects also. For copper concentrates, the total amount of waste minerals and CO2eq emissions decreased slightly. This was driven by the increased imports from Peru and Portugal, which have particularly low intensities of CO2eq emissions and Portugal also in waste minerals with underground mining. The increased importance of Portugal

Table 3 Weighted averages of governance indicators. Weighted average

Iron concentrate Zinc concentrate Copper concentrate Nickel concentrate

WGI:VA

WGI:RQ

WGI:RL

CPI

EPI

PPI

2000

2010

2000

2010

2000

2010

2000

2010

2000

2010

2006/2007

2010/2011

0.79 0.92 0.64 0.95

0.98 0.91 0.70 0.78

0.73 0.94 0.70 0.94

0.96 0.93 0.76 0.77

0.73 0.92 0.63 0.95

0.92 0.89 0.68 0.74

7.18 7.95 5.12 8.56

9.11 8.07 5.62 6.36

0.77 0.71 0.63 0.68

0.86 0.73 0.71 0.58

0.52 0.61 0.50 0.75

0.81 0.72 0.57 0.45

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as an origin country also had a positive effect on the average quality of governance for copper concentrates. Despite the improvement the impacts related to copper concentrates covered a majority of the combined impacts of all concentrate groups. For nickel, the amount of waste minerals increased but CO2eg emissions decreased during the study period. This was driven by increased domestic production and increased imports from South Africa relative to Australia. In 2010 most of the CO2eq emissions and waste minerals related to nickel concentrates occurred in Finland. The impact of South African nickel concentrates was mainly on governance indicators as the concentrates imported originate from the Nkomati mine (Norilsk Nickel, 2011), which utilizes nickel, chromium, PGM, copper and cobalt. As the combined ore grade in this mine is high (∼40%) and operations are situated underground, the tonne-per-tonne emission factors remain low. However, Nkomati is not a typical mine producing nickel in South Africa, and the weighted average factors for nickel concentrates produced in this country are significantly higher. The high values are a consequence of the emission-intensive energy mix combined with a very low average ore grade (nickel mined with PGM). This increases the amount of mined ore, and furthermore the amount of energy consumed. As the values used in this study (based on Nkomati) do not reflect the average situation in the country, a change in the producing mine can have a notable effect on the level of CO2eq emissions and waste minerals associated with nickel concentrates. Changes in the distribution of origin countries also affected the governance indicators of nickel, which noticeably decreased from 2000 to 2010. The largest change occurred in the PPI, which reflects the uncertainties and non-transparency related to mining and exploration permits, as well as legislation in South Africa (McMahon and Cervantes, 2011). However, the only governance indicator for which nickel concentrates had a noticeably lower value than other concentrates in 2010 was the PPI. Possible future changes in the environmental impacts will most likely relate to nickel concentrates, but also to some extent to copper concentrates. The waste mineral amounts and CO2eq emissions related to the latter currently cover the largest share of the total burdens, and changes in the circumstances in the producing countries, or changes in the distribution of these countries may affect the total waste minerals and CO2eq emissions. For nickel concentrates, the increasing proportion of domestic concentrates may change the total environmental impacts related to mining and processing of nickel concentrates in the future. This would reduce the impacts generated during shipment and possibly also the CO2eq emissions related to down-stream processing, and should be studied in more detail in further research. Despite the increase in domestic mining, Finland will most likely remain dependent on imported metal concentrates in the future. Better recognition and monitoring of the metal concentrate supply chains for the metals industry is thus beneficial to gain comprehensive understanding of the impacts on the environment, and of the governance framework in which mining and mineral processing is performed.

7. Conclusions The results suggest that the differences between countries in CO2eq and waste mineral intensities of metal mining can be large, and that the changes in the distribution of origin countries and the location of the environmental impacts are common. The impacts appear to be principally defined by the amount of mined ore relative to the mined metals (i.e. ore grade), combined with the mine type (open-pit or underground). However, the site-specific differences in the energy use and the CO2eq emissions could not be reliably dissected in this study. Also the CO2eq intensity of the

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energy production system of the producing country had a small effect on results. The sea transportation distance had a relatively high effect on total CO2eq emissions. From 2000 to 2010, the environmental effects related to the mining, processing and transportation of iron and copper concentrates smelted and refined in Finland decreased. The waste minerals related to zinc concentrates decreased and CO2eq emissions increased when for nickel concentrates the situation was vice versa. However, there is uncertainty related to the allocation for copper and nickel. The largest environmental impacts (total amount of waste minerals and CO2eq emissions) abroad were related to copper concentrates, which also have the weakest performance in relation to the quality of governance. The countries examined in this research differ greatly in the quality of governance. On average, the ability of governments to formulate and implement sound policies and regulations, their compliance in society, freedom of expression, and the willingness to invest in mining and mineral exploration increased, and corruption decreased over the ten-year study period for iron, zinc and copper concentrates. For nickel concentrates the quality of governance weakened, although it remained at a generally good level. Growing metal mining industry in Finland will most probably increase the share of domestic nickel concentrates in the future. This will lead to the increased domestic environmental impacts, but at the same time the trend of overall impacts related to nickel seems to be decreasing. Also the domestic production has a capability to improve the quality of governance and reduce the CO2eq emissions related to shipments. Also the relatively high nickel content in these concentrates may result as decreased down-stream impacts.

Acknowledgements I would like to thank my colleague PhD. Saku Vuori and an anonymous referee of their constructive comments to the manuscript. The work was financially supported by the Geological Survey of Finland and the Academy of Finland through the Graduate School of Geology.

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