Analysis of Gold Ore Mining Pollution: An Australian Case Study

This case study examines the environmental and economic impacts of gold ore mining in Australia, focusing on Tasmania. The research explores how mining activities lead to pollution, including habitat destruction and waste accumulation, and discusses the health effects and economic costs associated with pollution. The analysis utilizes the Economic Efficiency Framework, considering PM10 pollution levels and health costs, and analyzes market inefficiencies caused by pollution. The study also incorporates ecological and thermodynamic perspectives to understand the broader implications of mining on the environment, including the effects on fauna, the role of pollution in economic cycles, and the need for balancing resource utilization. The paper highlights the need for stringent regulations and new technologies to mitigate pollution's adverse effects.

Running head: ENVIROMENTAL ECONOMICS 1
Gold Ore Mining in Australia
Name of the student:
Name of the University:
Authors Note:

1ENVIROMENTAL ECONOMICS
Introduction
The research paper looks at how Gold Ore Mining as a major economic activity in
Australia causes pollution to the surrounding environment. The research considers Tasmania
in Australia as the main case study and utilizes explanatory research. Ore mining is one of the
economic activities in Australia. The activity has negatively impacted on the environment
hence causing a lot of pollution. It involves the removal of vegetations and soil covers hence
causing the destruction of the natural ecosystem Chapman, 2012). There are about two types
of wastes from mining such as the waste rocks from the ore that has been uncovered and the
tailing of mines after the ores have been processed. There are different mining impacts that
are caused within the environment such as the destruction of physical habitats hence the bio
diversity resource is lost. Similarly, the accumulating pollution is also at a high rate of about
70% every day thus posing a huge threat to the eco system(flora and fauna) in the area of
australia (Bina, 2011).
Background
There are different types of economic activities in Australia that have caused an
increase in pollution. Although these activities are earning income for the nation, they have
totally degraded the environmental nature hence causing pollution. However, this paper looks
at the Gold ore mining in Australia as the major cause of pollution. The production activity
from the ore mining has totally raised the effects of pollution into the environment. Pollution
has both health effects on human life and ecology (Willard, 2011). Mining of Gold Ore does
not only produce pollution that affects the environment but also air and water. The
contamination of both water bodies and air leaves the surrounding environment into a big
threat of acquiring diseases. The solid wastes from the ore body have significantly increased

2ENVIROMENTAL ECONOMICS
environmental pollution (Abdul-Wahab and Marikar, 2011). According to the research,
environmental pollution has been a constant concern in most states of Australia. Therefore
air pollutants such as carbon monoxide have seriously impacted human health thus causing
death. The most affected are the children and the elderly peoples who are in a range of 75
years and above (Abdul-Wahab and Marikar, 2011). The epidemiological reports have
reported the relationship between human health and the many pollutants created. Many
scholars have reported the strong and positive correlation between carbon monoxide and
nitrogen dioxide. Hence scholars report that it becomes difficult to determine the real
pollutants that cause air pollution. There has been a persistent concern about the effects of the
hazardous wastes on the environment. It is due to the dependence on the regulatory levels of
control. There are different types of hazardous wastes such a bio-degradation of the
environment and recycling (Field, 2017). .
Table1.1 shows the effects of pollution.

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Analysis
The research analysis utilized the PM10 which is the pollutant index that helps in
quantifying the social, economic and health costs (Willard, 2011). The approach best suits the
analysis because of the soundness in the epidemiological studies that show these effects to be
continuous.
Table 1.2 shows the health cost of pollution in Australia
Underlying assumptions predicted yearly health costs 2000-2002
Cost as % percentage of GSP
Cost per capita
Cost based Pm10 indicator with threshold of
7.5
low
0.4%
$192
$1billion
High
3.4%
$1594
$8.4billion
Mid point
1.9%
$893
$4.7billion
The analysis shows the level averages of pollution which have accumulated form the year of
1999/2000 to 2001/2002. The analysis shows that the levels of emissions of pollution creating
health costs have been estimated to be around $1.0 billion and $8.40 billion annually .During
the analysis, costs of health are estimated which assumes there are no thresholds for PM10
(Greer, 2011). The world Health Organization has consistently reported that there are no clear
pollution levels in Australia. It indicates that, these levels differ depending on rate of
emission by different Gold mining companies.
The results of the analysis are shown in the table 1.3 below.

4ENVIROMENTAL ECONOMICS
The tables shows pollution levels in australia
Nature of
pollutant
region Minimum medium maximum units
PM10 Hunter 6.2 20.5 100.3 μg/m3
Illawara 4 19.1 73 μg/m3
Sydney 4 20.4 119.6 μg/m3
Co Hunter 0.07 0.43 3.20 ppm
Illawara
0.07 0.47 3.20 ppm
Sydney 0.16 0.83 3.97 ppm
NO2 Hunter 0.0017 0.0103 0.0227 ppm
Illawara 0.0013 0.0103 0.0267 ppm

5ENVIROMENTAL ECONOMICS
Sydney 0.0050 0.0170 0.0363 ppm
The economic efficiency framework shows that pollution has largely affected the
market equilibrium since it creates social costs (Illge and Schwarze, 2009). When producers
of the products incur much cost due to pollution, prices are likely to be high for consumers.
They do so to compensate the costs incurred during production. However, the consumers may
react by imposing restrictions on the company responsible for creating pollution. For
example, when the producer has rights to the environment, the company responsible form
pollution will only produce to that limit put by the producers. Scholars argue that any
pollution beyond the set limits will be paid and compensated by the company responsible for
pollution. While the other compensates Gold ore mining if the limit is not surpassed (Illge
and Schwarze,2009). This entire scenario creates efficiencies in the market since any of them
can violate the agreement and sometimes they not come into one agreement. It is believed
that the cycle of economic efficiency is always altered when such arguments come in. For
instance the Figure 2.1 explains the how pollution affects the economic efficiency.
From the figure above, shows that economic activities that produce pollution have an
ffect on both the resources and the economy. Pollution created out of these activities

6ENVIROMENTAL ECONOMICS
sometimes cause the ineffectiveness in weather conditions (Willard, 2011). Since there would
be condensation and changes in the clouds hence forcing the new weather to
happen(Janicke,2012). According to research, natural resources like water bodies are also
affected which retard the economic performance of the nation (Jacqui, 2012). Social costs in
this case become much to be compensated which leaves the polluting company with no
choice. Once the economy declines as a result of poor performance and low production, it
then results into the inefficiency of the market. This is explained by the right hand of the
figure above. While on the other side, effects would then result such as high costs and low
production which would mean inefficiency of the economy (Jacqui, 2012).
According to the thermodynamic view, environmental pollution assumes that
pollution also contribute to the suffering of fauna as they suffocate due to polluted air The
thermodynamic view assumes that all kinds of pollution created is referred to as the
symptomatic nature of the earth such as water bodies, land scape and air. It believes that these
are then changed into the technology of individuals while using the degraded environment
(Spash, 2013). It also argues that from the ouset, environment is also polluted by the fire from
forests. Thus it is not only Gold ore mining that creates air pollution but also forest fire
pollutes (Willard, 2011). It makes the point clear that these types of pollution created are not
any different from the pollution created by the technological sources. Most operations about
process of planetaries like formation of the atmosphere and hydrosphere are well explained
by the thermodynamic views (Müller e t al., 2011).
Part of the pollution quantity is always emitted to the environment as engines of heat
are yielded by consuming the certain pollution quantities (. That is to say, suppose Q0 is the
quantity of pollution supplied, W* is the produced work and finally Q+ is the pollution
emitted then we obtain the following equation (Robert and Stavins, 2008).

7ENVIROMENTAL ECONOMICS
Q0 = Q+ + W*. Then the market efficiency becomes; W/Q0. Therefore, most scholars
indicated the importance of Q+ which important in the second law of thermodynamics. The
law states that pollution is not converted completely into work (Robert and Stavins, 2008)..
Figure 2.2 explains the equivalence of pollution dissipated and technological energy
inputs
Most scholars have argued out that ecology science is differentiated from the
philosophy of economic dominance However, ecology points out that there is a need for
balancing the utilization of resources. Ecological view stresses the use of both economic
policies with the energy concepts in pollution abatements to be key in controlling these
allocations. It finally argues that best economic policy makers should be used in the cyclic
systems to minimize the pollution threats (UNEP, 2012).
Figure 2.3 shows the flow of economic schemes.

8ENVIROMENTAL ECONOMICS
According to the Ecological view point, pollution creates changes which are not
desirable to the surrounding. It argues that it has harmful impacts and effects on to the human
life, vegetation, wild and domestic animals. Such incidences happen when the long term
social costs of the ecological benefits for human life are have been made from an ecological
gain during the short term. According to the Department of Environment and Conservation
(2016), human is largely dependent on the different types of products from waste, hence calls
for the pull up of pollution. According to the ecological view, there are different
classifications of pollutants such as the non consistent pollutants and the degradable
pollutants (Willard, 2011). However, the natural processes such as the discarded vegetable
have helped in breaking the non persistent pollutant. It is believed that these types of
pollutants are capable of remaining on surface for a long period of time. While on the other
hand, the natural process does not degrade the non degradable pollutant. Since it is more
difficult to be eradicated once it has fallen into the environment. So, with that, it is believed
that these pollutants such as the wastes of nuclear and toxic substances will continue
cumulating in the environment (Shmelev, 2012).
Discussion
Pollution mainly related to gold ore mining is one of the challenges facing the area of
Australia. A number of negatives environmental effects have been registered in various due
to the increased emission of toxic gases on to the atmosphere, land and water. This has not
only increased Government expenditures in addressing challenges caused by pollution but
has also limited the overall economic progress of Australia. Government of Australia spends
a lot of capital in addressing challenges and diseases caused by pollution like, bronchitis,
pneumonia, cancer among others. Various efforts have been undertaken by a number of
stakeholders to effectively eliminate pollution effects and causes in Australia . However,

9ENVIROMENTAL ECONOMICS
The polluting companies on the other hand have constantly polluted the environment which
has also made suffocation of living things like animals. From the analysis, it is predicted that
if no controls are put across pollution, it is likely that in 2033 pollution rate would be 80% .
This is due to the current level of industrialisation progress that is being registered in the
entire area of australia (Tausch, 2016). Therefore, there is need to streamline the available
legislations and mechanisms to effectively avoid pollution and its disastrous effects in the
area of Australia
. This is a big threat to the country as they would incur a lot in controlling the diseases
that would be created as a result of pollution. Therefore, it is good for the government to
come up now and put some restrictions on the polluting companies. The proposal would be
setting levels for which the polluting company should exceed. When such limits are put by
the government, it becomes hard for the polluting companies to disobey the policy as they
would be fined heavily in case they do so (UNEP, 2007). Stringent rules will help in
ensuring all companies that exceed the pollution limits are given harsh penalties which may
include among others withdrawing there licences, heavy fines and suspensions. Further
adoption of new technologies on waste management will aid in the reduction of the amount
of wastes realized on land,water and atmosphere. For instance some oil producing companies
have effectively reduced the effects of pollution through using modern technologies that
limits or reduces the levels of waste products released on the earth surface. Lastly
environmental awareness programs and increased corporate social responsibility awareness
will help in reducing cases of pollution being registered in Australia.
.

10ENVIROMENTAL ECONOMICS
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