Adam S. Trembecki

University  of  Mining  and  Technology, Kraków
Higher School of Management, Legnica

Poland

 

 

           The Dilemma of Introducing Technical  Progress

into the Mining Sector

                                                                 

     The mining sector has definitely passed the phase of a handicraft production and with the mass production it has become a substantial part of the heavy industry. Its relations to the natural, social and  property environment, unfortunately, have become more sharpened. This is due to the protest of ecologists (with their attempt to protect nature and to oppose any disturbance in the original state of the nature) and of landowners (with their increasing more and more  unreasonable demands concerning their agreement to any activities on their land). Thus the unemployment increase has been generating and social relations have become more complicated.

 

 

The  principle of a compromise enabling mining activities

 

     The miners’ attitude  to the surrounding nature has been regulated by a compromise with ecologists. Another compromise concerns the  landowners, namely their argument to participate in the material profits from the exploitation of mineral resources. Unfortunately in political, social and economic situation as nowadays in Poland this compromise has lost its clear precision in the newly  changed and obligatory mining law which has put away the previous principles protecting miners against the landowners demanding too high and  constantly raising profits.

     In the present paper the first aspect of the compromise is discussed, i.e. the regulation of the relations between the mining sector and the natural environment.

 

 

The beginnings of the present development of the mining science

 

     The mining industry is ruled by industrial laws as well as by specific laws of mining production  attempting to realise such mining processes that should provide:

- effectiveness of the mining processes,

- evaluation of economic profits,

- safety of the realisation of the mining processes (controlled by the Offices of Mines) as well as

- reclamation of  post-exploitation areas in agreement with the  postulates of ecologists.

     All these attempts aim to improve the man’s existence both in mining activities and in their surroundings improving by this way the conditions of a geoethical behaviour.

     The above discussed transformations are connected with introducing technical and technological progress into the mining sector, essentially changing its image.

     Originally, mining was a handicraft whose activities and their effectiveness were kept as a secret passing over from father to son. Obviously, keeping the technological progress secret did not favour the development of mining. This secret which hampered the development of mining science was broken, quite unexpectedly, by medical doctors. Agricola as a professional medicine doctor applying minerals to heal people made a direct contribution to the origin of the mining science. He is generally recognised as the one who initiated a modern mining science and who rendered considerable services to its development. His activity made pharmacists investigate the properties of minerals when examining their influence on the human health. It is worth mentioning that the first department of mineralogy in Poland was founded at the Faculty of Pharmacy at the Jagiellonian University in Cracow. Thus the work in the field of earth sciences started  there and was continued first at the Faculty of Philosophy as a separate section of Philosophy of Nature and later on at the Faculty of Earth Sciences.

              It was a period of a close dependence of mining on geology, this dependence being continued as dominant and expressed by the united mining and geological jurisdictions. Only the present technical and technological progress of the mining sector - connected with massive exploitation - gives the mining science its present form saturated by mathematical  methods.

 

 

Threats connected with the introduction of technical progress

 

     The essence of the technical progress consists of both general industrial activities and specific mining activities. The technical progress affects the mining industry both in its production quantity and quality changing inevitably and essentially the present state of mining, especially organisation of its production. In general, by reducing the employment it is generating unemployment and - as a result of it - it is also getting greater profit from the mining activities.

     When capitalism is controlled exclusively by the rule of the maximum profit, then it loses its human aspect and becomes „wild“. The „wild“ capitalism does not care for the needs of people employed in the mining industry and depending exclusively on it. It produces social tension, especially when politicians lacking any knowledge of the mining processes make decisions about the mining activities. In such a state of things social tension is inevitably generated. There appear protests, strikes, crises, disturbances which in their most severe form lead to a revolution changing  not only the social relations but destroying the present development of economics and even the whole  political system of a state.

     It is easier to change the political system than human mentality. The Polish nation has experienced this phenomenon. If the principles of geoethics are neglected, the capitalism becomes „wild“ and this does not favour the stabilisation of either economic or, above all, social situation and establishment of stable economic structures. The capitalism with the human aspect is the basis of the proper activity of the manager in the mining sector. Among others it is manifested by the rational organisation of mining activities in the surrounding nature. It is an example of how geoethical principles are applied in the development of the mining sector.

Dependence of the human existence on the nature

 

     Man is a part of the nature. He cannot exist without utilising natural goods. He lives in favourable natural conditions which make his existence possible. Among all the living creatures the man has the greatest ability to adapt himself to extreme environmental conditions (especially the climate). He lives also in equatorial as well as in Arctic zones, in deserts, steppes and depression zones captured from

the sea. In each of these cases his subduing of natural goods is  essential for his existence.

 

 

Subduing of natural goods by the man

 

     Subduing of natural goods by the man takes place by:

- utilisation of renewable natural resources, i. e. exploration;

- utilisation of non-renewable natural resources, i. e. exploitation.

     It is important for mining exploitation not to rob the nature, i.e. it should change the nature in a  rational way but not ruin it by extensive robbing exploitation. Thus as a result of a correct reclamation the nature could return to its previous form what does not mean its original form to which any return is impossible (similarly as it is impossible to come back to the years of the youth - but the life has to continue further in its own rhythm). The care of the rational utilisation of mineral resources is the essence of a selective exploitation making it possible to improve economic results of this exploitation and to reduce the exploitation threat on the side of the releasing retending media in the rocks mass that threaten the work safety in mining activities.

 

Human activity in the nature

 

     The existence and, particularly, the development of the man depend on the nature in his environment. Therefore any degradation of the nature that can result from its robbing exploitation cannot be allowed. However we should not forget that the nature itself changes continually all the time being formed and shaped in an evolutionary way and adjusting itself to the existing conditions that undergo radical changes with the years . Being in the state of a constant evolution the nature cannot be accepted as being perfect. The nature can even destroy itself. Let us remember volcanic activities, tectonical movements causing gigantic earthquakes, steppisation leading to the formation of deserts, soils erosion, gigantic floods etc. The nature is governed by the laws of a jungle (the stronger creature survives by eating up one weaker after another).

     Hence human activity in the nature is not always harmful. In some cases it can be profitable, as e. g. anti-flood operations, prevention of soil erosion, irrigation of desert areas, above all reclamation of  post-exploitation territories increasing the soil valuation in areas where mining activities have been already stopped.

 

Dissimilarity between miners and naturalists in their attitude to the nature

 

      Naturalists attempt the nature protection whereas miners who attempt to utilise natural goods providing by this way the development of the man. Therefore their antagonistic different approach is quite understandable. Such an antagonism can paralyse any activity. Thus the necessity of the „golden mean way“ seems to be a rational solution, i. e. keeping the principle of moderation in the procedures .

     It would be exorbitant to protect by all means the present situation of the nature and to create a preservation shelter of the whole of it. Such preservation shelters are created of course on the local scale, i. e. the national reservation parks presenting the original state of the nature in which any human activity is limited. Such preservation shelters cannot comprise all the natural areas as it would limit human development.

     Sceptics are invited to get acquainted with the way how reclamation of post-exploitation areas has become profitable both for the nature itself and for the development of the man for whom continual and stable welfare are being ensured.

     The principle of moderation leads to the development of ecology. As it is observed in the Rhine brown coal basin the birds - so far considered to be extinct as a result of industrial activities - have appeared again in the reclaimed areas.

     The principle of moderation also leads to the further development of mining technology as well as to the development of selective exploitation optimally utilising natural resources.

 

     A  distinguished creator of ecology (called by him as sozology) Professor Walery Goetel followed the principle of  moderation. His credo was: "Only the man can repair what he himself has destroyed in the nature.“

     The reclamation activities based on this principle give evidence of the truth of this statement. They consist in a harmonious co-operation of ecologists and miners. As a result of it considerable financial means from the industry have been already engaged in reclamation and in its further development. As experience shows all legal constraints are not very effective against attempts trying to successfully use any legal gap to  avoid those constraints by correctly applying legal tricks.

     Threatening the people with an apocalyptic vision of extermination does not favour harmonious co-operation of industry and ecologists. It would not happen if the industry development would follow and properly realise new technologies. Instead of postulating by too eager ecologists any stopping of the already existing investments, i. e. instead of any negative activities leading to a general social resistance, the ecologists should stop to neglect possibilities of positive activities offering their own elaborated and checked ecological suggestions already in the preliminary and original phases of their realisation when all these suggestions can be taken into account without causing disturbances in the  investment process. On the other hand the delayed interference of ecologists taking place when these investments  have already been realised and which are blocking the  start of already finished investments are de facto waste of money invested in projects which generates negative attitudes to ecology applied in such a way. As it will be shown later, they oppose the fighting against the structural unemployment.

 

 

Methods of fighting against the structural unemployment

     There are two methods of fighting the structural unemployment:

- strategic radical activities changing the structure of  employment;

- tactical activities changing unemployment in the existing structure of the system of employment in an evolution way.

Tactics of fighting against the structural  unemployment

 

     Tactics of  fighting the structural unemployment leads to partial (evolution) improvement of the existing system of employment. In the course of realising this tactics, the existing system of employment is adjusted to the constantly changing situation which undergoes continuous evolution, inducing partial change of the structure of employment with the local unemployment as its result. Then the tactics of fighting against this unemployment consists in  directing the redundant employees from one enterprise to another production enterprise or to public works. However it  requires a change in the qualifications of the redundant employees for new professions. The system of such a change in qualifications becomes most effective when it is realised facultatively, i.e. elastically adjusting itself to the wishes of individual employees.

     However we should notice that structural unemployment leads to an impoverishment of the society and that it also limits possibilities to employ redundant employees in public works. Hence the application of this tactics to fight against the unemployment without interference in the revitalisation of the zonal economic life becomes illusory.

 

 

Strategy of fighting against the structural unemployment

 

     Strategy of fighting against the structural unemployment is realised by revitalising the economic life with large investments, radically changing the employment structure. It is the most radical method. The difficulty of its application consists in finding strategic investors enabling a natural limitation of structural unemployment. There are two methods of how to find strategic investors:

- a passive method of finding a foreign investor,

- an active method of finding a home investor.

     However we should not make ourselves any illusion that the strategic investor will turn up as a result of altruistic activities. He appears when considerable economic profits are expected as a result of investments.

 

 

Foreign investors

 

     The basic argument for enlisting of foreign investors are the predicted profits of this investment that are due e. g. to low labour costs in a given country with structural unemployment. Since the zonal unemployment exists not only in Poland a strong competition plays a significant role in finding foreign investors. In Poland the competition power is weakened by:

- not sufficiently stable economic systems,

- an excessive beaurocracy,

- corrupted authorities.

     On the other hand the following items are the competitive advantages of  foreign investments located in Poland:

- high level of education of Polish engineers,

- great experience of engineers in the realisation of large investments,

- not utilised production potential of Polish production enterprises.

Home investors

     The following items favour the finding of investors:

- precisely controlled production process of the realised investment,

- investments projects documented in detail,

- experiences gained from the already realised investments of similar type,

- detailed prognosis of the products sale from the realised investments,

- finding suitably experienced subcontractors.

 

Basic assumptions for liquidation of the structural unemployment

    

     First of all it is necessary to remove a structural paradox occurring when the unemployment exists in the area of the structural unemployment where not yet utilised riches are still disposable. In order to utilise these riches suitable investments should be made. The riches guarantee that the investments will be  profitable under the condition that production will have a guaranteed sale after the investments realisation. These conditions guarantying investments profitability are not easy to be realised. Such a guaranty is indispensable for banks crediting this investment.

     Documented rich brown coal deposits can serve as an example of such not utilised riches. Utilising the riches can be realised by the miners who exploit these deposits. However it requires to document the respective mineral reserves, to verify possibilities of their profitable exploitation and to control the post-exploitation utilisation process that in the case of brown coal is carried out in an electric  power plant burning this coal. As a  result of this activity the home energy power of the country is ensured.

     Because the high costs of these investments their partial self-financing can minimise the investment credits. This self-financing is obtained when the  investments will start from the final product (in this case electric energy). The income from this will decrease  the investment credit of the whole undertaking. The from of crediting can be different (bank credits, shares helping to invest etc.). A respective complete financial system needs to be elaborated.

     The question who is going to be an investor can be answered simply: the one who will have the greatest profits from this investment. But also the production enterprise and local authorities connected with the considered area will share the profits thanks to the liquidation of the structural unemployment.

     Obviously in order to start the realisation of such an idea the projected investments should be prepared accordingly, i.e. the correctness and reality of the project should be evaluated, a team  initiating this investment should be created and a suitable conclusion for starting the investment should be elaborated. The initiating team should consist of representatives of investors, of the existing brown coal mines and of the electric power plant burning this coal.

     This example shows very clearly how complex is the whole investment process aiming to the liquidation of the zonal unemployment and satisfying basic requirements of a geoethical approach in the zone of the structural unemployment.