6 Domestic extraction
Exploiting potential reserves
172. Wolf Minerals Ltd, a mining company developing
a tungsten deposit in the UK, told us in a written submission
that:
There is [...] a perception that metal mineral resources
in the UK are fully known and that there is therefore very limited
opportunity to provide metal from within the UK. This perception
[...] is not correct. In most of the prospective areas within
the UK the mineral potential is unknown at economic depths and
there are indications of substantial targets.[259]
173. The Royal Society of Chemistry (RSC) agreed
that there was potential to increase domestic extraction of strategic
metals[260] and the
Mineral Reconnaissance Programme led by the British Geological
Survey (BGS) has identified unexploited deposits of various strategic
metals, such as the platinum group metals and gold, in the UK.[261]
174. The Mineralogical Society stated that "the
UK is considered to have significant reserves of some of the critical
metals, particularly in the historical mining area of SW England,
although areas such as the Highlands of Scotland and parts of
Wales also potentially contain exploitable deposits".[262]
Professor David Manning, Secretary for Professional Matters at
the Geological Society of London, explained:
We assume that because Cornwall has been around for
thousands of years as a mineral stockpile, we don't need to do
any more work there, yet there are treasures in Cornwall waiting
to be found. We need to make sure that this is consistently being
worked through and that continued work takes place on the geology
and aspects of the geological science.[263]
Professor Manning added that Northern Ireland was
recently surveyed for minerals using modern geophysical prospecting
methods, resulting in 90% of Northern Ireland being licensed for
mineral extraction.[264]
175. In addition to raw reserves in the ground,
there are also potential reserves in alternative resources that
were once waste. The Geological Society of London explained that
as well as primary ore extraction and the recycling of products,
it might be possible to extract metals from industrial waste streams
such as spent oil shales, fly ash and slags.[265]
It said that:
[Researchers] have shown that the retorting process
[a common extraction method] for generating oil from shale, for
example, leaves increased REE concentrations in the residual shale
[
] There are 100 million tonnes of oil shale spoil heaps
in West Lothian, representing a significant potential resource,
though not all is available for use under current planning regulations.[266]
176. The UK is well placed to exploit domestic
reservesincluding from unconventional sources such as industrial
waste streamsdue to the expert knowledge of its research
base. Dr Mike Pitts, from the Industry Technology Division of
the RSC, explained:
We have the capability in the UK within our chemistry,
science and engineering infrastructure to develop much better
ways to get materials out of mining ores and also so-called waste
streams where the concentration can often be higher than in the
ore that it came from.[267]
The Geological Society of London took the same view:
"the UK has the advantage of a world renowned mineral deposits
research community, including not only university scientists,
but also those in BGS, NERC isotope facilities, and the Mineralogy
Department of the Natural History Museum".[268]
However, concerns were expressed that:
this area is relatively neglected by NERC with regard
to research funding, and that if the next generation of mineral
deposits researchers is not nurtured, the community will lose
critical mass and not be self sustaining.[269]
177. While Rt Hon David Willetts MP, Minister
of State for Universities and Science, acknowledged that "we
are world leaders in understanding some of the geological processes
and the distribution of some of these materials", he suggested
that the UK was "quite active in researching this area"
and that if there were specific areas where more research was
required it was his expectation that industry would communicate
that to NERC.[270]
178. The evidence shows that
there are unexploited deposits of various strategic metals in
the UK but, in many areas, it is unclear whether extraction is
economically viable. The use of modern geophysical prospecting
methods could identify economically accessible reserves. The Government
should work with the British Geological Survey to ensure that
Government has a comprehensive and up-to-date understanding of
potentially valuable domestic mineral resources.
179. Research is underway into
the potential to extract metals from industrial waste streams.
We recommend that, if these techniques become economically viable,
the Government ensure that current planning regulations do not
unnecessarily restrict the use of significant potential reserves
such as the 100 million tonnes of oil shale spoil heaps in West
Lothian.
Impact of domestic extraction
180. The Geological Society of London explained
that one of the benefits of domestic extraction was that "there
is considerable potential to reduce our vulnerability [...] to
some strategic metals. [For example] the UK has significant potential
reserves of [
] indium and tungsten in south west England".[271]
The Mineralogical Society agreed that "exploration and mining
of critical metals within the UK would provide the country with
some security of supply, as well as bringing economic benefits
to rural areas".[272]
Wolf Minerals Ltd added that:
Developing our own resources both enables the UK
to minimise the offshoring of environmental and health costs to
other nations, but also ensures that the UK can negotiate trade
agreements from a strong position. [...] The most ethical method
of ensuring supplies of strategic minerals to our economy is to
provide them from our own resources. Such action clearly removes
or reduces any threat of external controls on supply to the UK.[273]
181. We consider that UK mining for strategic
metals could help to relieve the risk associated with external
supply monopolies and reduce the "offshoring" of the
UK's environmental impact. We appreciate that any new mining in
the UK would have an environmental impact. Professor Manning,
Geological Society of London, did not envisage that this would
be an insurmountable problem:
One of the good things about mining in this country
is that we can be absolutely sure of the control of the environmental
parameters. If we are interested in making sure that we are responsible
consumers of mined materials, then the more we do that under our
own control the better.[274]
182. Louis Brimacombe, Head of the Environment
and Sustainability Research Team at Tata Steel, agreed that "we
probably manage environmental issues of our mining operations
[
] better than overseas [
] so the net impact globally
might be better".[275]
He added, however, that "the mining community now in general
is improving its environmental and social performance overseas
as well".[276]
Tony Hartwell, Knowledge Transfer Manager of the Environmental
Sustainability Knowledge Transfer Network (ESKTN), summed up the
issue of environmental impact in the UK:
There is a demand for these metals and they are going
to be produced somewhere in the world. The point is that, if we
are using the metals, we have a responsibility to see that they
are mined sustainably wherever they are made.[277]
183. We heard evidence that the impact of mining
operations in the UK has been improving. Dr Bernie Rickinson,
Chief Executive of the Institute of Materials, Minerals and Mining
(IOM3), stated that "over the last decade [
] sustainability,
environmental parameters and health and safety associated with
mining has changed in all respects".[278]
The Geological Society of London provided us with an example of
UK mining activity with high environmental standards. In this
example, Scotgold Resources Ltd are developing Cononish, a gold
mine in the Grampians region of Scotland, which is currently in
the planning process.[279]
In terms of satisfying planning and environmental
legislation, the initial application was turned down largely because
of concerns about 'visual' impact in the National Parks but since
refusal Scotgold Resources has been working to meet these concerns
by reducing the size of the tailings facility and by incorporating
some underground disposal. For environmental reasons, a gravity/flotation
process rather than the use of cyanide will be employed. Plant
has been designed at additional cost to minimise the footprintmodularised
and contained in a single building rather than a traditional design.
The location demands the highest environmental and planning standards
and it is perhaps significant that the Scottish Environmental
Protection Agency withdrew their objection. The company is currently
sufficiently encouraged to re-apply for planning permission.[280]
184. However, perception of the environmental
impact also matters, in particular with regard to convincing the
public.[281] Professor
Manning, Geological Society of London, elaborated:
The important point about mining is that much of
the problem arises from the automatic assumption that a mine is
definitely not a good neighbour. This is where the mining industry
has a role to play in demonstrating that a modern mine, run to
standards that we would expect in this country, can be a very
good neighbour. We see this in some of the open pit coalmining
[
] in Northumberland. The mines of one of the very good
companies that operates there can be scarcely visible, and so
the company can have problems in getting planning permission because
no one knows a mine is there. It has backfired to some extent
and they have to work very hard to demonstrate to the public for
example just how quiet they are. That is where there is a double
edge to this. The consultation process tends to throw up objections
that are based on historical perceptions rather than present day
perceptions, and there may be ways in which that can be eased.[282]
The ESKTN concurred:
the general public's perception of mining operations
[is] often based on views based on historical descriptions of
operations and incidents but the modern mining industry takes
its responsibilities seriously and aims to develop mineral[s]
using the most sustainable methods available.[283]
185. We consider that domestic
mining for strategic metals could alleviate the risk associated
with sourcing metals from external supply monopolies. While any
new mining in the UK is likely to have some environmental impact,
this is likely to be lower than it would be abroad and so reduce
the export of the UK's environmental impact. It is important that
the Government invests in the necessary research, to ensure that
future domestic mining has the least possible environmental impact.
However, perception of the environmental impact also matters,
and the public rightly needs to be certain of the effects of mining
in the UK. The mining industry has a role to play in demonstrating
that a modern mine, run to standards can be a good neighbour.
UK planning law
186. The Mineralogical Society told us that "issues
of cost, environmental considerations, and planning have restricted
mining in [the UK] in recent years".[284]
Professor Manning, Geological Society of London, added that "this
country is one of the most difficult in the world to get planning
permission to take a mine forward".[285]
Mr Hartwell, ESKTN, agreed that "the planning process takes
a long time".[286]
This was illustrated by the ESKTN's explanation of the initial
phases of exploiting a mineral reserve in the UK:
The whole process of identifying a mineral deposit
is itself an expensive process and risky process. Ideally mining
companies would like to identify large deposits of high grade
material. Exploration geologists conduct surveys to identify signs
of potential for deposits and then they must conduct detailed
exploration work to determine if the deposit might be economically
viable. This can include extensive drilling and mineral processing
test work. [287]
Prior to applying for planning permission, mining
companies must invest significantly just to identify mineral reserves.
The ESKTN continued:
Mineral exploration companies are unlikely to invest
in development work in locations where the mineral exploration
rights are unclear and /or there is a high probability that an
operating permit may not be grantedor will be only be received
after long delays.[288]
187. ESKTN explained that the uncertainty and
delays in gaining planning permission was preventing mining companies
even considering prospecting for reserves:
We spoke to a company that was looking at developing
mining assets and they said they wouldn't even look at deposits
in Europe because they know it is going to take them 10 or 15
years to go from discovering the deposit to getting into production.
They just can't afford to do that. They can't afford to invest
in developing the deposit, exploring for it and going on to do
that.[289]
188. However, not all mining companies are discouraged.
Wolf Minerals Ltd stated that "the UK has one of the most
rigorous and fair planning and regulatory regimes in the World.
This regime fits within a local democratic process and within
a stable and trusted national political framework".[290]
The democratic process is key to giving local citizens a platform
to voice their concerns about what happens in their region. We
consider, however, that the nature of mineral reserves is such
that they may only be located in one or two pre-defined areas
within the UK. Their location is often not flexible. Therefore
any substantial local opposition and resulting rejection of planning
applications may result in the mining company pursuing an overseas
location.
189. The Geological Society of London stated
that the "Government should [
] address the inconsistency
between national mineral supply objectives and local planning
policy and practice".[291]
The ESKTN suggested that it was "the lack of clear statement
from central government as to the importance of minerals which
leaves the planning process (and the courts, who might review
the legality of a planning decision in terms of national policies)
open to pressure of 'yes, but not here'".[292]
190. The Planning Act 2008 was introduced to
speed up the process for approving "nationally significant
infrastructure" projects. The Act provided for a new Infrastructure
Planning Commission (IPC) to decide applications for these major
infrastructure applications. The Localism Bill 2010/11 is set
to abolish the IPC and replace it with a Major Infrastructure
Planning Unit within the Planning Inspectorate. We understand
that mines are currently not considered to be nationally significant
infrastructure and therefore must go through the traditional local
government planning process.[293]
Professor Manning, Geological Society of London, stated:
There could be some ease in terms of the strategic
need for materials being recognised in the same way that the planning
law is being changed from the point of view of looking at major
installations over power generation and things like that. If mining
could come into that category, that would help.[294]
191. We consider that classifying mines as nationally
significant infrastructure under the Planning Act 2008 would speed
up the planning process and be of advantage to the UK's economic
development. It would encourage the exploration and the development
of strategic metals mines. Mr Hartwell, ESKTN, stated that "the
same is happening now in America where they are trying to shorten
their planning process from two years to one year for minerals
and metals".[295]
When we asked the Minister whether he thought classifying mines
as nationally significant infrastructure would have an impact
on mining projects in the UK, he replied:
That is not a proposal that has been put to me. I
can see the sensitivities of things such as that. It is an interesting
observation [
] I will pass it on to my colleagues who are
in the forefront of tricky decisions on planning.[296]
192. We are concerned by reports
that uncertainty and delay in the planning process is preventing
some mining companies from even considering prospecting for reserves
in the UK. The nature of mineral reserves is such that they are
where they are, that is, their location is a given. Therefore
any substantial local opposition and resulting rejection of planning
applications may result in mining companies pursuing an overseas
location. In order to make the most of the UK's valuable domestic
resources and to speed up the planning process, we recommend that
the Government classify mines, in particular those containing
strategic metal reserves, as nationally significant infrastructure.
259 Ev w15, para 1.6 Back
260
Ev 58, para 13 Back
261
Department of Trade and Industry and British Geological Survey,
Exploration for metalliferous and other minerals in Great Britain:
a guide (second edition), 2000 Back
262
Ev w21, para 7 Back
263
Q 18 Back
264
As above Back
265
Ev 53, para 16 Back
266
Evs 53-54, para 16 Back
267
Q 23 Back
268
Ev 52, para 11 Back
269
Ev 53, para 12 [Geological Society of London] Back
270
Q 175 Back
271
Ev 52, para 11 Back
272
Ev w21, para 7 Back
273
Ev w15, w18, paras 1.7 and A2.2 Back
274
Q 23 Back
275
Q 38 Back
276
As above Back
277
Q 38 Back
278
Q 23 Back
279
Ev 55, para 5 Back
280
As above Back
281
Q 14 [Professor Manning]; Q 23 [Dr Rickinson] Back
282
Q 19 Back
283
Ev 51 Back
284
Ev w21, para 7 Back
285
Q 14 Back
286
Q 41 Back
287
Ev 50 Back
288
As above Back
289
Q 41 Back
290
Ev w18, para A2.2 Back
291
Ev 53, para 13 Back
292
Ev 51 Back
293
Planning Act 2008, section 14 Back
294
Q 19 Back
295
Q 41 Back
296
Q 178 Back
|