INVESTMENT POLICY IN MINING - ISSUES AND ANALYSIS

In this chapter a method for evaluation of social benefits or costs external to mining operations is outlined. Two alternative cases are considered. First, the problem of evaluating community infrastructure is discussed in the context of a mine to be developed in a relatively remote area where, prior to the mining project, there was very little or no habitation. Then, second, mine related infrastructure improvement in a previously existing community is evaluated. In this case, it is usual that some new labor must be attracted to the mining community, although a significant share of the labor force may be already in local residence before the mine is developed. A substantial number of people in the community will be able to use the community infrastructure provided by the mine even though they may not be employed by the mine.