1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-12-IRON-ORE-mining-and-transport-150707.odp Peter Burgess (c) All rights reserved MDIA IRON ORE MINING AND TRANSPORT
2. 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS
3. 3. IRON ORE essential to a modern industrialized economy MULTI DIMENSION IMPACT ACCOUNTING
4. 4. ... and a big industry extracting about 3.2 billion tons of IRON ORE a year (2014) MULTI DIMENSION IMPACT ACCOUNTING
5. 5. MULTI DIMENSION IMPACT ACCOUNTING Production of Iron Ore by Country
6. 6. MULTI DIMENSION IMPACT ACCOUNTING Production of Iron Ore by Country
7. 7. MULTI DIMENSION IMPACT ACCOUNTING Production of Pig Iron by Country
8. 8. MULTI DIMENSION IMPACT ACCOUNTING Production of Steel by Country
9. 9. but MINING is an industry that needs to face up to many very big ISSUES that are critical in the modern world where PROFIT alone is an inadequate measure of performance. MULTI DIMENSION IMPACT ACCOUNTING
10. 10. ISSUES Mining has a big IMPACT on the PLACE where the mines are located, including: Displacement of PEOPLE Degradation of the LAND Pollution of the WATER Degradation of the INFRASTRUCTURE MULTI DIMENSION IMPACT ACCOUNTING
11. 11. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Gold Mining in Peru
12. 12. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Gold Mining in Papua, New Guinea
13. 13. ABANDONNED MINES Eventually a resource is depleted and the mine is abandoned it can no longer make profit for the owner. But the mine still continues to exist and in most cases will continue to be a source of pollution. The cost of remediation typically falls to society at large rather than the former owners which is unreasonable. MULTI DIMENSION IMPACT ACCOUNTING
14. 14. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Abandoned Mine Water Problems West Virginia USA
15. 15. TOXIC WATER The operation of a mine usually results in large amounts of toxic effluent. Water treatment is expensive and many mining companies avoid doing it especially smaller operators in remote areas. Accountability at every mining location is required and part of this will have to come from individual independent observers using social media and feeding a global database of business behavior. MULTI DIMENSION IMPACT ACCOUNTING
16. 16. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Copper Mine Water Problems Shanghand, China
17. 17. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Heavy metal water pollution Peru Mercury Pollution
18. 18. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Artisanal Mining for Gold in Africa
19. 19. AMAZING MACHINERY Very big and powerful machinery is used for modern mining. A huge amount of earth can be moved with this machinery. It is capital and energy intensive. MULTI DIMENSION IMPACT ACCOUNTING
20. 20. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Heavy Duty Trucks Used to Move Iron Ore
21. 21. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPHeavy equipment moving ore
22. 22. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Heavy Machinery to Move Iron Ore
23. 23. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPComplex and powerful mining equipment
24. 24. OVERLAND TRANSPORT Moving ore from mine to where it is to be used usually starts with overland transport Trucks Trains Conveyor belts MULTI DIMENSION IMPACT ACCOUNTING
25. 25. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Iron ore train in Australia
26. 26. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Iron ore train in Australia
27. 27. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Road train for iron ore in Australia
28. 28. OCEAN TRANSPORT Moving ore from one country to another is done by ships that are growing in size all the time taking advantage of economies of scale as the ships get bigger. MULTI DIMENSION IMPACT ACCOUNTING
29. 29. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Loading Iron Ore in Cape Lambert, Australia
30. 30. INTERIM OBSERVATIONS Iron ore is a very important product, critical to the modern economy and a high standard of living But the use of steel should take into consideration all life time impacts and this means giving weight to eventual recycling. In addition impact efficiency needs to be practiced at all steps in the supply chain. MULTI DIMENSION IMPACT ACCOUNTING
31. 31. Follow up: Request for Feedback Getting these ideas fleshed out into a clear, simple but comprehensive structure is a big job and remains a work-in- progress. Many organizations are making progress with this, but there is no broad universal framework yet that will enable all the pieces to come together and work efficiently. I would like to get feedback from anyone and everyone to help move this initiative forward. While I have some clear concepts about much of this architecture, there are many details that I do not know enough about and need help. So, please feel free to contact me (peterbnyc@gmail.com). Please put something relevant and catchy in the subject line. MULTI DIMENSION IMPACT ACCOUNTING
32. 32. Some links and contact information: Peter Burgess peterbnyc@gmail.com Peter Burgess LinkedIn profile https://www.linkedin.com/in/peterburgess1 Link to TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link to navigation for MDIA slidesets http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets MULTI DIMENSION IMPACT ACCOUNTING