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Institute of Applied Ecology, Chinese Academy of Sciences

Lecture on JACBOS UNIVERSITY. Circular Economy and Ecological Economy in Mine industry. Prof. Dr. Fengming Xi. Institute of Applied Ecology, Chinese Academy of Sciences. xifengming@iae.ac.cn. Content. Ecological Economics.

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Institute of Applied Ecology, Chinese Academy of Sciences

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  1. Lecture on JACBOS UNIVERSITY Circular Economy and Ecological Economy in Mine industry Prof. Dr. FengmingXi Institute of Applied Ecology, Chinese Academy of Sciences xifengming@iae.ac.cn

  2. Content

  3. Ecological Economics • refers to both a transdisciplinary and interdisciplinary field of academic research addressing the interdependence and coevolution of human economies and natural ecosystems, both intertemporally and spatially. • emphasizing the preservation of natural capital. • ecological economists emphasizing strong sustainability and rejecting the proposition that natural capital can be substituted by human-made capital.

  4. Ecological Economics • Ecological economics is more willing to entertain alternative conceptions of utility, efficiency, and cost-benefits such as positional analysis or multi-criteria analysis. • Ecological economics is typically viewed as economics for sustainable development, and may have goals similar to green politics. • value of natural capital and ecosystem services • Earth's carrying capacity: Ecological footprint

  5. Ecological Economics

  6. GLOBAL GEOCHEMICAL CYCLES CRITICAL FOR LIFE

  7. GLOBAL GEOCHEMICAL CYCLES CRITICAL FOR LIFE

  8. GLOBAL GEOCHEMICAL CYCLES CRITICAL FOR LIFE

  9. GLOBAL GEOCHEMICAL CYCLES CRITICAL FOR LIFE

  10. Topics of Ecological Economics • Methodology: physics laws and biological systems knowledge. • resources allocation: efficiency and equity • weak versus strong sustainability: natural vshuaman-made • energy economics: energy supply, accounting and balance • environmental services: ecosystem valuation and carbon credit • cost shifting: costs and benefits • Modeling: Ecological-economic modeling

  11. Circular Economy • is an industrial economy that promotes greater resource productivity aiming to reduce waste and avoid pollution by design or intention, and in which material flows are of two types: biological nutrients, designed to reenter the biosphere safely, and technical nutrients, which are designed to circulate at high quality in the production system without entering the biosphere as well as being restorative and regenerative by design.

  12. Circular Economy • encompasses more than the production and consumption of goods and services, including a shift from fossil fuels to the use of renewable energy, and the role of diversity as a characteristic of resilient and productive systems. • Moving away from the linear model • Biomimicry • Industrial ecology • Cradle to cradle

  13. Environmental Economics • a sub-field of economics that is concerned with environmental issues. • Environmental Economics undertakes theoretical or empirical studies of the economic effects of national or local environmental policies around the world. Particular issues include the costs and benefits of alternative environmental policies to deal with air pollution, water quality, toxic substances, solid waste, and global warming. • Externality • Common goods and public goods • Solutions: Environmental regulations, Quotas on pollution, Taxes and tariffs on pollution, Better defined property rights.

  14. Low-carbon economy • an economy based on low carbon power sources that therefore has a minimal output of greenhouse gas (GHG) emissions into the biosphere, but specifically refers to the greenhouse gas carbon dioxide. • Benefits of low-carbon economies • Energy policy • Carbon-neutral hydrocarbons (CCS)

  15. Circular economy in Mine industry Ecological economy in mine site restoration How to evaluate the cobenefits? How to make a good model and market?

  16. CONTENTS Research Background 1 Significant advantage 4 2 Traditional model Case analysis 5 3 Circular restoration model

  17. 2 Research Background

  18. 1 Research Background At present, China has more than 1,000 iron mining areas, the national tailings accumulation is more than 20 billion tons, and grows at the speed of 1 billion tons per year. Mine exploitation has brought serious problems such as resource, ecology, environment, safety and land appropriation.

  19. Wastedump • Industrial site • Mining area • Tailing pond

  20. 1 Research Background Ecological environment problems Other ecological problems Land resource destruction Environmental pollution Induced natural disasters Mountain cracking Biodiversityloss Humanmigration Soil pollution Debris flow Dam break Surface collapse Land damage Land occupation water pollution Air pollution Soilerosion

  21. 2 Traditional model

  22. 2.1 Traditional model Mine Industrial site Mining area • Tailing pond • Waste dump Flood control project Level land Dismantle facilities Level slope Dredge water Dam reinforcement Close wellhead Safe handling Level dry beach substrate improvement Repair engineering Soil cover Green mine

  23. 2.2 Disadvantage • Fund gap • Low resource efficiency • Technical defects • Potential safety problem • Serious land occupation

  24. 2.2.1 Funding gap Existing abandoned mines restoration needs hundreds of billion yuan and in the number of abandoned mines are still increase rapidly. Every year the government invested only a few billion yuan for mine restoration Government input Required capital Funding gap

  25. 2.2.2 Resource waste Tailings contain reusable ingredients such as iron, copper, lead, zinc, etc., They can be extracted again. The waste rock, and tailings after the second extraction can beprocessed into building materials, functional materials

  26. 2.2.3 Technical defects The leaching technique is widely used in the traditional mines ecological restoration. if it wasn’t processed well, will cause second pollution to the local soil and water It need a lot of soil, which will cause some secondary hazards

  27. 3.2.4 Potential safety problem After the closure ,the tailings dam reinforcement project has a certain timeliness, it is prone to safety accident.

  28. 3.2.5 Land occupation Dumping site and tailings have not been vacated, Land value has not been fully exploited.

  29. How to design innovative PPP model to solve mine ecological restoration? 3 Resource restoration model How to apply PPP model based on circular Economy and ecological economy to gain best benefits using carbon trading market?

  30. 3.1 Solutions method • Mode: Circular Economy from waste recycling and land reuse • Mechanism: Innovative PPP model and corresponding policy • Capital: Reduce government investment and increase return • Technology: Resource utilization and Ecological restoration • Market: Government purchase ,User fees, and Franchise

  31. 3.1 Resource restoration model Tailing pond Tailing Extraction technology Metal material Filling material Resource utilization technology • Wastedump Waste rock Mineral fertilizer Government purchase Mine Building material Function material Industrial site Consumer Industrial land Ecological restoration technology Occupied land Commercial land Mining area Tourism land Agricultural site Forestry land

  32. 3.2 Operating mechanism Legal policy Capital Economic policy Industrial policy Mining circular economy Market technology Technology policy Consumption policy

  33. 3.3 Capital Government Social capital capital Insurance contract Project loan Bank Insurance company PPP company Circular restoration model

  34. 3.3 Capital PPP company Product income Policy income Land income Government subsidy Resource utilization products Valuable element Other funds deposit Land value added Differential subsidy Acquisition mode Funding sources Government Government purchase Consumer Government

  35. 3.4 Technology • Resource utilization technology • Useful component recovery technology • Reuse technology • Ecological restoration technology • Physico chemical restoration • Microbial restoration • Plantrestoration

  36. 3.5 Market • Government purchase • Consumer fees • Franchise • Other innovative market mechanism (carbon trading)

  37. 4 Significant advantage

  38. 4.1 Circular economy （1）Mine Level.The use of mine waste products can be applied to the ecological restoration of mines, to achieve closed-loop material flow. In the production process, the use of Non-Sintering technology to reduce energy consumption and reduce the generation of pollutants. （2）Industrial level. Upstream downstream industry interaction, to achieve coordinated development between industries. First, the project provides raw materials for downstream industries, useful components in the tailings can provide raw materials for the smelting industry. Secondly, the project solve the waste generated in the upstream industry, tailings and waste rock that can be consumed in the process of mining. （3）Social level. The project provides products for the community. Products through government procurement and consumer purchase, can be used in the protection of housing, sponge city construction. The restoration land can be used as a different form of land to meet the needs of regional socio-economic development. Second，the project can deal with urban garbage, the establishment of waste recycling system, the retirement of social products as raw materials for the production of enterprises to reuse. To realize the closed cycle of regional social material.

  39. 4.2 Ecological economy • Enhance the ecological service function of mining area • Changing the way of economic development • Achieve sustainable economic development

  40. 4.3 Low carbon economy • （1）Reduce greenhouse gas emissions • Use clean production technology • Reduce the use of natural resources, reduce greenhouse gas emissions • （2）Enhance the ability to mitigate climate change • Increasing vegetation cover carbon sink • Increasing artificial wetland carbon sink • （2）Put all the ecological and environmental benefits to CARBON • Convert the ecological and environmental benefits to carbon emission. • Certify the Carbon Equivalent Emission Reduction and take in carbon trading

  41. 5 Case analysis

  42. 5.1 Location Liaoyang Shuanghe mining area is located in the east longitude123°15‘7“-123° 15’30”, latitude41°10‘52“-41°19’32”,2km from Benxi Mingshan,10km from the Liaoyang Gongchangling District, 70km from Shenyang，30km from Benxi， 60km from Anshan. The total area is 178 square kilometers (including Shenwo reservoir area’52 square kilometers). Geographical location and traffic conditions are superior.

  43. 5.2 Basic situation There are 19 administrative villages in Shuanghe mining area, which is 187km2, with a total population of about 25 thousand. the main minerals are iron, silicon, limestone, coal, clay, etc.Total storage is 0.5 billion tons, of which iron reserves more than 0.2 billion tons. Because of mining exploitation, forest resources were destroyed, while surface water and groundwater are polluted.

  44. 5.3 Disadvantage

  45. 5.4 Construction content Liaoyang mining circular economy industrial park, covers an area of 88.89 hectares. Including mine ecological restoration research and development center, mine ecological restoration demonstration base, mine resource products manufacturing area, mine circular economy comprehensive service area, mine geological park. （2）Two road system constructions, with a total length of 73.36 km. Including Ring Road System of Shenwo reservoir construction and road construction system in Shuanghe mine. （3）Ecological restoration demonstration project 9, with a total area of 786.65 hectares. Including by the government and enterprises jointly Investment: Han Ling Zhen wetland ecological restoration projects, coastal river ecological restoration and ecological construction, Tiancheng waste dump ecological restoration projects.

  46. 5.5.1 Capital State owned company Social capital PPP company Financial institution Financing Ecological restoration project Subsidy Liaoyang Government

  47. 5.5.2 Key technology

  48. 5.5.2 Main products Permeable brick Insulation board Cement mortar polysilicon concrete block mineral fertilizer land resources

  49. 5.5.3 Market Sponge City Infrastructure construction Affordable housing construction Old city reconstruction

  50. 5.6 Construction goal 1、Circular economy demonstration park 2、Ecological restoration and remediation demonstration zone 3、Interregional ecological compensation demonstration zone 4、National ecotourism demonstration zone 5、innovative PPP model for mining area ecological restoration

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