Abstract

The objective of this work was the development of a framework for assessing just compensation for environmental damage on a single mine site. Previously, the models applied in this work have only been used at the national or regional level. As a result, a sustainable extraction rate was calculated for a single mine site in Potosi, Bolivia for a mixed mine (zinc, lead, and silver). By using an interdisciplinary approach, a dollar value was assessed for environmental damages for a period of years. These were compared to the profitability of the mine with the result being an estimation of the quantity of mining rents that should be reinvested in social and infrastructure capital. This approach assumed that economic development does not exclude environmental protection and may aid in policy decisions at the local level benefiting the longevity of the economy.

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