The case of China presents a unique set of obstacles to protect the environment from mining activities. State companies retain strong ties to the government and continue to provide many of the services the state previously supplied. The local government dependent on these companies to provide revenue and employment frequently ignores environmental concerns.
While laws do exist in China to protect the environment, these laws are weakly applied because government officials move up the bureaucratic ladder when the economy grows and infrastructure is developed. Low-level environmental government officials, while often well-intentioned, are helpless to do anything when they find themselves up against the wealth and power of large state companies.
Zijin Mining provides a case in point. The company is China’s largest gold producer and second-largest copper producer. It is one of China’s gest state firms with projects in many regions of China as well as seven countries abroad. After failing to pay attention to a reprimand by the Ministry of Environmental Protection, the company received negative publicity in 2010 for two pollution scandals and was forced to pay millions of yuans in fines and compensation. Beijing has intervened when local residents have faced an environmental crisis, but looks the other way when it comes to pollution produced on a daily basis. Zijin does not have to reveal either the kind or amount of pollutants it produces. Since its Zijin Mountain mine provides 70 percent of local revenues and the majority of the county’s jobs, the company was able to weather controversy.
On the positive side, the company’s mining activities have led to the construction of a highway and a building boom. In addition, the company wants its critics to be aware of how Zinjin has supported efforts to improve the community, such as the creation of a national mining park and contributions to a local water project, to flood victims in Fujian province, and to small businesses.
Zijin remains closely tied to the government. Top level officials for the company previously served as officials for the local government. It provides health, education, and other services generally reserved for the state. These same ties, however, have enabled Zijin to pollute without fear.
With such a close relationship between the government and state corporations in China, the long-term impact of mining appears to be to scar the nation for present and future generations.
(Edited from Reuters)
