What is `environmental risk'?
There are two possible perspectives: (a) The risk that mining activity will have an impact on the
environment. (b) The risk that due to a perceived impact on the environment,
the mining activity is at risk due to some legal consequence.
This paper is concerned with the second of these perspectives, and particularly with the way in which mining companies can
manage that risk. Environmental risk - possible legal consequences The risk is that the mining operation will be disrupted.
Disruption may be: (a) Physical. The mining activity can be stopped, altered, or
modified, or something additional can be required to be
done. (b) Financial. Penalties (up to $1M) on corporations and in
some states on both directors and managers. Land may also
be included on a contaminated land register (significant
impact on asset valuation).