An overview of environmental valuation methods for the mining industry

During recent decades, public concern about the protection, preservation and restoration of the environment has increased. Towards this direction, legislative action on environmental issues that affect the mining industry has been taken worldwide. Within this new framework, two issues are of critical importance to the sector – namely, project appraisal by means of social cost–benefit analysis (SCBA), and natural resource damage assessments. In a vast majority of cases, both issues require analysis to be carried out in a way that the loss of natural resources and the effects of environmental degradation on human health and well-being are assessed in monetary terms. This paper focuses on the application of environmental valuation methods in mining. Principal legislative requirements are briefly described, some critical points of the most important valuation methods are outlined, and demonstrative examples are presented.