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Babeş-Bolyai University Cluj-Napoca Romania Faculty of European Studies

Babeş-Bolyai University Cluj-Napoca Romania Faculty of European Studies. Sustainable Development Alternative Strategies From European practice to the Rosia Montana Case. PhD. Elena Porumb MA Anca Marinca ş MA Bianca Costin. Regional Policy Conference Cluj-Napoca 14-15 June 2012.

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Babeş-Bolyai University Cluj-Napoca Romania Faculty of European Studies

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  1. Babeş-Bolyai University Cluj-Napoca Romania Faculty of European Studies Sustainable Development Alternative StrategiesFrom European practice to the Rosia Montana Case PhD. Elena Porumb MA Anca Marincaş MA Bianca Costin Regional Policy Conference Cluj-Napoca 14-15 June 2012

  2. Why sustainable development? Recently, the debate concerning the environment has focused on the depletion and degradation of renewable resources the term sustainable development reflects growing concerns about the interaction between economic activity and environmental quality.

  3. Social Decisions Economical Decisions Environment Decisions

  4. Conceptual core E.U. model General objectives, Strategic framework for NDP, SOP Environment, Policy Principles EU environmental rules Development regions – Central region E.U. vs. U.S.A. model Health& the environment, Economic prosperity, Equity,Conseravtion of nat, Internat. Responsab. Economic prosperity, environmental quality, social equity simultaneously pursued U.S. in SD Goals Governmental priorities EU& USA Policy tools Policy recommendations E.U. & U.S.A. LEAPs & Financing Programmes Process of initiation, Definition and identification within LEAP E.U. & U.S.A. E.U. funds in Romania Operational Programmes between 2007 and 2013 for Romania

  5. GOAL 1 Health and the Environment GOAL 2 Economic prosperity – employment - productivity GOAL 3 EQUITY GOAL 4 CONSERVATION OF NATURE GOAL 5 INTERNATIONAL RESPONSIBILITY GOALS

  6. Case study presentation – Roşia Montană • Controversial mining project initiated by Roşia Montană Gold Corporation, that aims to exploit the gold deposits in Roşia Montană (the Apuseni Mountains in Romania). • Project’s goal: the surface exploitation of gold and silver using the cyanide technology (250,000 tons). • The waste resulted will be stored in a pond (700 ha) with a dam of 185 m high.

  7. Background - Mining with cyanide In the mining industry sodium cyanide is used worldwide as a reagent for isolation of precious metals. After the gold is extracted, the solution contaminated not only with cyanide, but with a large amount of heavy metals is stored in tailings ponds threat to human health and to the environment !!!

  8. What can we learn from the accidents and spills of cyanide worldwide? • 1997 – Nevada, USA - Gold Quarry mine – 1000 m³ of cyanide were spilled into two nearby bays • 1998 – Dakota, USA - Homestake mine – 7 tons of cyanide leaked from the tailing dam • 2000 – Baia Mare, Romania – Gold SA company – massive leak of cyanide – the biggest environmental disaster in Europe after Chernobyl • 2004 – New Zeeland – Lower Hutt company – leak 360 liters of cyanide solution

  9. Who benefits from the project? • RMGC – takes advantage of the fact that the area was declared disadvantaged; – exempted from income taxes and custom duties; – as the majority shareholder the company will get 80% of the profit. • Romanian State – is estimated to receive about $4.4 mill. annually, an insignificant amount compared to the company’s profit; – revenue affected by the company’s exemption of tax and customs; – the only state taxes are collected from the workers' wages.

  10. What costs does such a project imply? • Environmental - 4 mountains tops removed and 255 hectares of forest destroyed, threat of acidic water leaks, remediation costs of environmental damage are huge ($600 million). • Social - resettlement or relocation • of 900 families (2000 people of 4000), the potential income from traditional activities in the area will be lost + indirect social costs (traditions). • Cultural - loss of the unique natural and archaeological heritage (the Daco-Roman galleries, archaeological sites, cemeteries)

  11. What are the risks of using the cyanide technology? • 72% of the accidents were due to failures of the dam, 14% due to breaks in the pipelines and 14% were transportation accidents. • Modern gold mining techniques, based on cyanide, require a small number of employees (may not exceed 300 employees). • If the ponds become acidic, the acidic water will cause groundwater contamination.

  12. What can we learn from the best practices of Slovakia? • Since 2007 - a ​​legal provision according to which gold mining with cyanide can’t be done without the consent of the local population and local authorities. • The intention of the Canadian company Tournigan Gold to exploit gold in the vicinity of Kremnica hit local opposition, which in 2007 managed to persuade the parliament to change the law so that cyanide mining can’t be done without consent of the local authorities. • The residents and local authorities understood that the touristic potential of the area would bring long-term income without any ecological risk that exists in the case of exploiting the existing mineral resources in the area.

  13. European Regional Policy Objectives and funding ESF Cohesion fund Convergence ERDF ERDF Regional competitiveness and employment ESF European Territorial Cooperation ERDF

  14. Origin of regional development disparities in Italy - unified in 1861 - poor civic culture - predominantly agrarian MEZZOGIORNO AREA - questionable success for the De Gasperi “fund" - the great emigration 50s - 70s

  15. Italy Regional Policy 2000-2006 € 27.4 billion - allocating resources 104.4% Italy Regional Policy 2007-2013 € 28.8 billion - 2009 allocation of resources 40% Results: Objectives: Infrastructure • 690 km of new railway + 350 km modernized • - new terminals in Bari, Catania, Cagliari airports • creating 473,000 new jobs • investments in innovation and research - 9.6 billion Infrastructure – major projects – 4.1 billion • A3 Salerno – Reggio Calabria • modernizing SS 106 • Roma – Pescara – railway modernization • completion of Siracusa – Gela highway Economy • 700 companies have received subsidies for industrial research projects • - 20,000 companies were supported - 563 projects for the valuing of cultural heritage • supporting SMEs - 2.7 billion • information technology-1.6 billion - the number of computers in schools has tripled

  16. The socio-economic performances of the regional policy in the Mezzogiorno area GDP 2006 (UE27 = 100) Center-North - 121,9 Italy - 103,8 Romania – 38,6 Mezzogiorno - 69,7 Lisbon Objective – 70% Employment 2008 UE 27 - 65,9 Nord - 66,9 Italia - 58,7 Mezzogiorno - 46,1 Romania - 59

  17. Recommended best practices from Mezzogiorno for Romania Environmental policy/Selective waste management Economic relations with neighbours Road infrastructure - intensified economic relations with the Balkans and North Africa • Sardegna at 27,8 % • National percentage 25% • 9 highways in use • Working at A3 - for a third band Mezzogiorno - To go beyond pilot projects • 2.5 highways in use • To meet highway construction plan - EU 5.3 billion • To intensify cooperation in the Black Sea Romania

  18. SUSTAINABLE DEVELOPMENT INITIATIVES SOCIAL Pillar Human & Cultural Well-being, Education, HRD, Social Justice, Health, Equity and Gender ECONOMIC Pillar Socio-Economic Factors (Governance, Policies, laws, instruments, security) ENVIRONMENT Pillar Systems, Resources, Issues, Sensitivities & Vulnerabilities

  19. What do we propose? • Tourism: • the establishment of traditional agro-touristic hostels (see Ecovillage network) • development and promotion of local events (FanFest festival) • marking of tourist trails • enhancement of the ethno-cultural heritage: customs, traditions, architecture, craft works (see Auroville case) • Agriculture: • sustainable agricultural practices, adapted to the climatic and soil conditions • diversified agricultural activities that are income generating • organic farming • Industry : • clean and sustainable industry • finding twin villages abroad to conduct foreign trade and tourism • creating a greenbelt (In essence, a green belt is an invisible line encircling a certain area, preventing development of the area and allowing wildlife to return.)

  20. What conclusions can be drawn? Weighing the potential benefits and risks involved in the mining project at Roşia Montană it can’t be classified as a work of "public interest in the economic benefit of the country", and private interest benefits do not justify the risks and lead to the conclusion that the initiative should be abandoned before it produces irreversible disastrous consequences!

  21. References • Warhurst, A. (1999), Mining and the Environment – Case Studies from the Americas, International Development Research Centre, Canada • Bănuț, A. (2010), Proiectul Roşia Montană, [http://www.cluj-napoca.elsa.ro/proiectul-rosia-montana], accesat decembrie 2011 • SERC, (2004), Banning cyanide use in mining, [http://www.serconline.org/mining/talking. • html], accesat decembrie 2011 • Suresh, B., Kumamoto, T. (2010), Abstract, [http://chemical.ihs.com/CEH/Public/Reports/ • 770.9000/], accesat decembrie 2011 • Boulin, D. (2004), Crandon Proposal: Cyanide Issues, Wisconsin Stewardship Network • Huff, A. (2004), Gold mining threatens communities, The Progressive. • NDG, [http://www.nodirtygold.org/], accesat decembrie 2011 • Faracianura.ro, [http://www.rosiamontana.ro/img_upload/a0bbb7e04b2fbd96fb1096ae1548 da 32/Ce_este_cianura.pdf], accesat decembrie 2011 • Haiduc, I., Răgălie, Ş. (2004), ,,Consideraţii economice privind riscurile şi oportunitatea investiţiei de la Roşia Montană”, Academica, nr. 26, mai, Bucureşti • Haiduc, I. (2004), Roşia Montană ȋntre riscuri şi beneficii, [http://munteanul369.wordpress. • com/2010/06/22/proiectul-rosia-montana-intre-riscuri-si-beneficii/], accesat decembrie 2011 • Bran, P. (2003), Raportul comisiei din Academia de Studii Economice, Bucuresti privitor la probleme economice, financiare, sociale, de mediu şi de durabilitate ale proiectului minier Rosia Montana, Bucureşti • Haiduc, I. (2003), Proiectul Roşia Montană ȋntre riscuri şi beneficii, [www.acad.ro/rosia_ • montana/doc_pv/pv_ihaiduc.doc], accesat decembrie 2011 • Dragu, A. (2011), Mineritul cu cianuri în Slovacia, doar cu acordul localnicilor, [http://www.romania-actualitati.ro/mineritul_cu_cianuri_in_slovacia_doar_cu_acordul_ • localnicilor-32891], accesat decembrie 2011 • Răgălie, Ş. (2003), ,,Prezent şi perspective de dezvoltare durabila a zonei Roşia Montană”, Academia Română, Centrul de Informare şi Documentare Economică, Colecţia Biblioteca Economică, vol. 11-12, Bucureşti

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