Inquiry into current and potential impacts of gold, silver, lead and zinc mining on human health, land, air and water quality in New South Wales

Submission to NSW Legislative Council re. Inquiry into current and potential impacts of gold, silver, lead and zinc mining on human health, land, air and water quality in New South Wales - submission #14

Assessments of mining proposals commonly overlook or underestimate an array of social costs. These costs are both financial and non-financial. Omission and/or underestimation of these costs, means they are not attributed to mining projects. This is a financial benefit to mining companies. The practice also makes mining proposals appear more profitable than they actually are.
Mining companies’ financial interest in their profits is supported by government interest in receiving royalties which are directly related to profit levels. That is, there is a financial coincidence of interest between a mining proponent and the government in favour of the mine going ahead. The regulatory framework governing these decisions does not ensure that the likely adverse social impacts of a proposed mine are adequately weighed against its estimated profitability. This can happen in a number of ways