Historical Context of Sustainability: Iron Ore Mining in Russia - Coursework Example

 Historical Context of Sustainability: Iron Ore Mining in Russia Executive summary Relating to mineral resources, Russia has significant high-quality reserves of iron ore but with relatively small production levels. In particular, the central Russia’s Kursk Magnetic Anomaly (KMA) has the largest single iron ore reserve in the world. While much of the easily mined ore has been exhausted in the Soviet and post-Soviet times, the new investment could bring massive new mines with relatively low production costs. Currently, Russia consumes roughly 80% of the iron it produces making it a small player globally (Hubbard, Rice & Calvin, 2014 p. 30). Hubbard, Rice, and Calvin also said that Russia has a big potential to engage in new iron ore mines investment in the central Russia, the Urals and Siberia. However, they indicated that Russia could be a large producer in future. Iron being the most abundant mineral resource with the property of natural mining, Russia investing and marketing it around the globe may boost its economy. In the production of steel, iron ore forms the principal raw material. An alloy of iron and carbon (steel) may contain other alloying components to improve its quality. Since steel contains a high percentage of iron, its heaviness makes it most suitable for the construction industry such as buildings, railways, and infrastructure. Other uses of steel are in automotive manufacture and making machine parts like for the rolling mills among others. The future for the third world countries rests on iron products since construction industry requires them for housing and infrastructure pressured by the ever-growing population. Key words: mineral resources, reserves, investment, construction, third world, economy Overview of the topic There are several dangers associated with iron processing and handling, ranging from extraction to transportation. Whenever an extractor or processor handles the metal, he must acquire proper knowledge of the hazards and dangers involved. This section describes the dangers and risks associated with iron ore and metal both to the individuals and the environment from the processing perspective. It also covers the health risks involved and the remediation by the practicing company. From worstpolluted.org, smelting processes and extractive metallurgical are polluting activities. Some facilities carrying out metal and smelting processes emit plenty of air pollutants such as oxides of nitrogen, hydrogen fluoride, noxious and offensive smoke, fumes, gasses and other toxins. In addition, the facilities release a variety of heavy metals into the environment. Use of excess sulphuric acid in pickling and other processes during metalwork poses a danger to the environment. A survey estimates that steel (iron-carbon alloy) production alone accounts for 5 to 6% man-made carbon dioxide worldwide. Metallurgical workshops pollute the environment through particle release and gasses. Dust particles containing metal pollutes the soil and surface waterways. Effluents and tailings that are highly alkaline release acid to waterways from waste pits. The website, worstpolluted.org, further states that through inhalation and ingestion, humans expose themselves to smelter and metal processing plant contaminants. Pollutants inhalation results from gaseous emissions and dusty matter. The pollutant may also find its way into drinking water through waterways. Workers in smelters and metal processing plants have the highest risk of exposure to the toxic pollutants. Exposure to metallic airborne pollutants may lead to chronic and acute diseases. First exposure may lead to mere irritations of the nose, eyes and throat. The lung and heart problems or premature death may result in prolonged exposure. Heavy metals also have chronic risks on the body due to bioaccumulation as taken from worstpolluted.org. These heavy metals may cause birth defects, liver and kidney problems, gastrointestinal tract issues, joint pain, as well as respiratory, nervous and reproductive system damage. The plrara.com gives information about the corrective measures employed in many smelters and plants as follows. The modern design of processing plants and smelters has a capability of controlling the pollutant releases to very low levels. However, their operations are relatively expensive, and many plants do not meet the standards. The best step of remedying adopted widely is to improve operations’ quality by upgrading the plant for production and economic reasons. Idea Development and Justification Most metals and minerals are reasonably abundant in the earth’s crust. With increased extraction of iron in Russia, there are associated problems that need an address. The scarcity issues relate to the following three points: uneven distribution; declining quality of supply; and increasing unease over the environmental and social consequences of extraction (Hubbard, Rice & Calvin, 2014, p.116). In order to make mineral extraction viable, it must exist in a reasonably concentrated form. However, the deposits of high-quality iron ore are unevenly distributed across the earth’s crust, with concentrated production limited to only a few countries. In the order of volume, Australia produces the most iron worldwide, then followed by China and finally Russia comes third with most of its production utilized internally. In terms of quality, Russia provides the best implying minimum production cost. Since Russia has very rich under-utilized iron ore reserves, it has very promising global business in the processing of its ore. For example, 92% of rare earth metals come from China; Brazil supplies 92% of niobium; South Africa provides 79% of platinum. This statement signifies that the importing countries are susceptible to price rises and supply restrictions. China has started restricting exports of its rare earth elements, causing the United States and the European Union (EU) to air their grievances to the World Trade Organization (WTO). Russia, Pakistan, India, and Ukraine have restricted the exports of commodities like scrap metal, iron ore, coke, and wood. Besides geographical distribution, concerns have been passed over the concentration of production in only a few numbers of multinational corporations (Manfredo, 2014 p. 100). As reserves of high-quality ores are under exploitation, production must shift to reserves of lower quality iron ore grades associated with greater depths and more remote locations. The effect of greater depths is the displacement of community that results into internally displaced persons. Investing in mining in remote areas may not be viable depending on the global prices of the processed iron since extra transportation cost of the ore needs to be met. In addition, mining becomes expensive, as the investors need to install a plant at every iron ore reserve. These activities will increase costs (GAHP 2015, p.1). Additionally, more energy is required to extract low-grade ore because more rock containing the metal must be excavated and processed to remove the same amount of metal. As a result, carbon emissions from energy sources especially coal, cost and other environmental impacts will be greater. This condition will worsen as the prices of coal and fossil fuels used in the mines increase in the future (Manfredo, 2014). While scarcity does not relate to minerals’ absolute shortage, cases exist where reserves appear quite small as compared to the current production rate. The Organization for Economic Corporation and Development (OECD) conducted the research on income inequality, macroeconomic stability as well as household income variability. It showed that the existing reserves of copper, nickel, lead, zinc, tin and silver would be exhausted within 20 to 40 years at current rate of production (Baofu, 2013 p. 78). Certainly, new discoveries are likely to be made as prices rise. However, continued steep increases in demand could cause shortages in supply. Albeit production at 5% per year, the famous reserve of iron and silver would be exhausted within 50 years (Baofu, 2013 p. 56). The continual extraction of the ore from the earth’s crust reduces its availability and hence the miners must use very deep pits in future for quality iron. Besides deep open metal mines, the energy required hence that the cost for mining is high due to the amount of soil excavated from the pit. Recycling the used iron becomes even costlier as more to recycling requirement the quality of the recycled iron is of inferior quality. Reflective Analysis and Concluding Remarks Businesses dealing with natural resources require heavy initial capital. The involvement of government in control of the available minerals plays a pivotal function in regulating the funds. Governments need to formulate laws that encourage identification, transportation, extraction and processing of the natural resources taking into consideration the hazards and dangers. During the same time, the law-makers must provide a favorable business environment and take care of the displaced communities (He 2014, p.1). Bulk goods such as the iron ores should not be hauled far away for processing. This transportation may cause the need for trucks that increase the capital requirement for the investment among other reasons. By use of the modern mining techniques, the cost may be reduced drastically by up to 50%, and very deep excavation avoided (Baofu, 2013 p. 78). In fact, the extra saving may be channeled into building up remote industries or expanding the existing plants. The primary objective of engaging in any form of a business is to make a profit. Setting up a business requires some form of intellectual property, which can be in the form of the elaborate education process or use of expertise. Mining is a precarious venture as it involves feasibility study that may require massive input in terms of capital, workforce, and equipment. This action does not mean that whenever the investor carries out a feasibility study the result favors the investor. Therefore, the government needs to examine the quantity and the distribution of the natural resources. If the government cannot take a step in extracting the mineral, then it must create a favorable environment for the investors. In conclusion, the government needs to do the viability study of the resource and ensure the affected community gains both financially and socially. Bibliography Baofu, P. (2013). Beyond Natural Resources to Post-Human Resources towards a New Theory of Diversity and Discontinuity. Newcastle upon Tyne, Cambridge Scholars Publishing. GAHP. (2015). Top 10 Worst Pollution Problems 2008. Retrieved April 22, 2015 from http://www.worstpolluted.org/projects_reports/display/61 He, Wang. (2014). Iron Ore Dust and Its Health Impacts. Retrieved April 22, 2015 from http://plrara.com.au/2014/06/iron-ore-dust-and-its-health-impacts/ Hubbard, G., Rice, J., & Galvin, P. (2014). Strategic management. Pearson Australia. Manfredo, M. J. (2014). Understanding society and natural resources: forging new strands of integration across the social sciences. Newcastle upon Tyne, Cambridge Scholars Publishing. Wilson, A., & Piepkorn, M. (2008). Green building products the GreenSpec guide to residential building materials. Brattleboro, VT, BuildingGreen. Read More