Resources Policy 83 (2023) 103704

Contents lists available at ScienceDirect

Resources Policy
journal homepage: www.elsevier.com/locate/resourpol

Developing models to assess the social impact of mining: An exploratory

study trough necessary conditions analysis (NCA)
Andrea Rey-Martí a, *, Alfredo Valencia-Toledo b, Nuria Chaparro-Banegas c, Alicia Mas-Tur a,
Norat Roig-Tierno c
a
Universitat de València, Av. dels Tarongers, s/n, 46022, València, Spain
b
Universidad Nacional San Antonio Abad del Cusco, Av. de la Cultura 733, 08000, Cusco, Peru
c
Universitat Politècnica de València, Camí de Vera, s/n, 46022, València, Spain

A R T I C L E I N F O A B S T R A C T

Keywords: The mining sector has been in the spotlight for many years because of its negative impact on society and the
Mining sector environment. The focus on sustainable development at the international and national levels has led to increased
Necessary condition analysis criticism of mining, creating issues on numerous occasions. However, the progress of many developing countries
Sustainable development
depends on the mining sector, which can provide economic benefits to local communities. This paper aims to
Environmental satisfaction
identify the benefits that the mining sector should provide to local communities to offset its negative effects on
the environment. The paper explores not only the negative environmental effects of mining but also its positive
side. Using necessary condition analysis (NCA), social action, physical infrastructures, basic services, health, and
education are studied from an economic development perspective to identify the necessary levels of these factors
in order to achieve the environmental satisfaction of local communities. The results indicate that education,
health, and basic services have a crucial impact on the local community’s environmental satisfaction. This
finding suggests that local communities perceive the effect of the mining sector as positive when it provides
education, health, and basic services to the surrounding area.

1. Introduction destroying biodiversity.

Given these negative effects and the increasing importance of sus­
For years, international organizations, nations, and society in general tainable development, the mining sector has introduced new approaches
have scrutinized the mining sector because of its negative effects on to tackle sustainability challenges. These new approaches relate to
local communities (Grutzner and Salim, 2003), waste management, and increasing investment in research and development (R&D), involving
human health (Asif and Chen, 2016), as well its considerable ecological stakeholders in mining activities, creating new relationships and part­
footprint (Young, 1992; Perez and Sanchez, 2009). Akabzaa and Dari­ nerships with other mining companies, and implementing voluntary
mani (2001) listed some of the economic, social, environmental, and agreements and environmental management standards to protect the
health impacts of the mining sector. Mining provides economic benefits environment (Sánchez, 1998; Perez and Sanchez, 2009). According to
to local communities in the form of infrastructures, foreign trade, gov­ Asif and Chen (2016), the mining sector can help achieve sustainable
ernment revenue, and direct and indirect employment. These benefits in development by implementing environmental management tools (e.g.,
turn help develop local communities. Nevertheless, it also has negative cleaner production technologies, life cycle assessment, and multicriteria
impacts. The concentration of mining activities in an area can lead to decision analysis) because these tools improve environmental
youth unemployment, school dropout, family disorganization, inade­ performance.
quate housing, drug abuse, and prostitution. Other negative social ef­ Although perceptions and expectations of local communities may
fects include mass migration and the continued growth of the change over time, the perception toward the mining sector is negative
population. The surroundings are also affected by the mining sector. For (Amos, 2018). Yang and Ho (2019) found that only 20% of people living
example, the environment, land, and vegetation quickly deteriorate, close to mining areas consider mining to be beneficial. The study’s

* Corresponding author.
E-mail address: [email protected] (A. Rey-Martí).

https://doi.org/10.1016/j.resourpol.2023.103704
Received 20 December 2022; Received in revised form 8 May 2023; Accepted 9 May 2023
Available online 19 May 2023
0301-4207/© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-
nc-nd/4.0/).
A. Rey-Martí et al. Resources Policy 83 (2023) 103704

variables of analysis were employment opportunities, land expropria­ 2.1. Local community environmental satisfaction
tion, environmental degradation, and resettlement and land subsidence.
Many studies have examined the influence of the mining sector on The mining sector is a key driver of the Latin American economy.
health (Vélez-Torres et al., 2018), the environment (Salem et al., 2018), Therefore, it is crucial for the development of Latin American commu­
and the economy (Yang and Ho, 2019; Karasmanaki et al., 2020). nities. However, it also has an impact on the environment. The mining
However, the mining sector also contributes to the local community in sector has one of the largest environmental impacts of any industry.
terms of social action, physical and digital infrastructures, and basic Hence, mining companies must ensure that their actions respect the
services. local environment and must identify and resolve any conflicts (ECLAC,
This paper aims to determine which factors are necessary for the 2013) to ensure that they act sustainably.
local community to feel satisfied and perceive benefits from the mining According to ECLAC (2013), on average, mining produces five times
sector, despite its negative impact on the environment. The research more emissions per dollar produced than other economic sectors. The
question this study focus on is: What the mining sector must provide to the impact of mining on the environment must be addressed because mining
local community to offset its negative effects on the environment? This paper itself by definition entails a modification and reduction of the Earth’s
shows that it is possible to achieve high levels of environmental satis­ natural resources. In addition to this major impact, despite efforts to
faction when the mining sector offers other services to the local improve the socioenvironmental commitment of mining companies and
community. policies for sustainable mining (Cisneros, 2016), there is no robust
Necessary condition analysis (NCA) is used to study the single regulation on mining (Viana Ríos, 2018).
necessary causes that must occur to deliver a certain outcome. In Environmental impacts include soil degradation, water, land, and air
contrast, traditional methods examine the average effect of multiple pollution, water scarcity, habitat destruction, deforestation, and dete­
predictors (Hauff et al., 2021). The conditions included in the present rioration of the ecosystem in general when protected areas are not
NCA are social action, physical infrastructures (transport), economic respected (Hilson, 2002; Twerefou, 2009; Zárate et al., 2020). These
development, basic services, health, and education. Data on mining in environmental impacts lead to health problems for miners because the
Peru were collected through a face-to-face survey conducted in 2022. chemicals used in mining, poor ventilation, contaminated water, and
Basic services, health, and education have a meaningful effect on the soil degradation cause landslides, fires, and diseases (Hilson, 2002).
environmental satisfaction of the local community. This finding suggests Thus, controlling environmental impacts would also improve other as­
that when the mining sector provides services related to these condi­ pects such as health and basic services.
tions, the local community perceives that this sector has a positive The environment is a central part of sustainable development.
impact on society. Similarly, certain levels of social action, health, and Environmental actions are central to Sustainable Development Goals
education are needed to achieve full environmental satisfaction. These (SDGs) 6 (Clean Water and Sanitation), 7 (Affordable and Clean Energy),
findings highlight the importance of positive social, health, and educa­ 12 (Responsible Consumption and Production), 13 (Climate Action), 14
tion spillovers from mining to society. (Life Below Water), and 15 (Life on Land). Many actions can be taken to
This paper has four further sections. Section 2 provides a review of achieve these SDGs, as indicated by Sonesson et al. (2016), who rec­
the literature on the links between mining and microeconomic and so­ ommended actions by mining companies to achieve these SDGs and
cial impacts on the local community. The data and method are explained ensure best practices within the sector. These proposed actions include
in Section 3. Section 4 presents the results of the NCA. Finally, the reducing the water footprint through water recycling, the use of suitable
conclusions, limitations, and future lines of research are presented in sources of water, studies of at-risk species during exploration, conser­
Section 5. vation programs, and many more.
In some Latin American countries, such as Bolivia, Chile, Ecuador,
2. Literature review Mexico, Peru, and Venezuela, environmental policies have improved.
However, it is not enough, and there are compliance problems (Hilson,
This section outlines the expected social and microeconomic effects 2002; Zárate et al., 2020). Hilson (2002) proposed public authority
of mining activities. The opening of new mining operations or the measures such as miner training and the use of expert teams to avoid
expansion of existing ones can produce a series of interconnected local environmental problems. Likewise, some mining entrepreneurs have
effects across cultural, socioeconomic, and political spheres. A concep­ contributed to transforming mining and changing its image (Viana Ríos,
tual framework used to formulate empirical questions is presented. 2018) to achieve social sustainability in the local region. However, these
These questions are used as a basis for the analysis. The proposed contributions have not gone beyond CSR policies, failing to develop into
research model is presented in Fig. 1. actions in the region (Comisión Económica Para América Latina Y El
Caribe –CEPAL-, 2015). Accordingly, there is still much progress to be
made.
Everingham (2012) argued that, in relation to the impact of mining,
attention has mainly been on the reduction and mitigation of environ­
mental damage. Less is known about the management of social impacts
to ensure industry sustainability. Therefore, this study focuses on iden­
tifying the necessary conditions that the mining sector must provide to
local communities to offset its negative effects on the environment. The
study does so by examining satisfaction with actions to prevent the
pollution of rivers and fields, noise pollution, and the extinction of
wildlife in the mining community.

2.2. Social action and economic development

The mining sector has contributed to development by providing

minerals and metals to the manufacturing sector and the regional
economy (Singh et al., 2016). Given the large number of sectors that
Fig. 1. Factors affecting the local community’s environmental satisfaction. depend on mining, the positive effects (e.g., employment creation)
Source: Authors. outweigh the negative ones (Narrei & Ataee-pour, 2021). Mining is

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crucial to the survival of other economic activities that contribute to adequate telecommunication infrastructures, isolated communities
economic, environmental, and social development by improving in­ cannot participate in the emerging information economy. The positive
frastructures, increasing employment and community development, and relationship between economic development and the existence of tele­
enabling the creation of spin-offs (Singh et al., 2016). However, mining communication infrastructures has been shown to improve the eco­
activities also generate negative environmental and social impacts, thus nomic performance of communities that use the Internet (Parker et al.,
hindering the attainment of the SDGs set by the United Nations (UN) as 1995; Strover, 2001; Albort-Morant and Rey-Martí, 2015; Townsend
part of the 2030 Agenda. et al., 2015). Public policy is concerned with addressing the spread of
Given the debate around the positive and negative impacts of the broadband availability and adoption in rural areas, which is slower than
mining sector, research on this topic is essential to improve the under­ in other parts of the world (Stenberg et al., 2009; Genachowski, 2011).
standing of the current situation of mining and those directly and indi­ This lag is referred to as the digital divide. This situation can worsen
rectly involved in mining. Policymakers, public administrations, and quality of life and sustainable development (Labrianidis and Kaloger­
mining companies risk establishing strategies that jeopardize social essis, 2006; Ziemba, 2018). Therefore, the digital divide has become a
sustainability. Social sustainability is the ability to engage business with key type of social exclusion, highlighting the importance of working
the long-term objective of preserving economic, environmental, and toward supporting community social sustainability. This issue is also
social well-being through business in the local community (Hassini captured in the SDGs (UN General Assembly, 2015). Remote rural
et al., 2012; Jung, 2017; Rey-Martí et al., 2021). Sustainable mining communities face challenges associated with their distance from large
would overcome the negative impacts of mining by ensuring that it cities. Introducing strategies, instruments, and policies that decrease the
follows sustainable development principles. digital divide by bringing broadband to every region and household,
Mancini and Sala (2018) grouped the social impacts of mining into regardless of their location or interests, can alleviate these challenges
six categories: (i) economy, income, and security; (ii) employment and (Townsend et al., 2015). This paper also explores whether the presence
education; (iii) land use and territorial aspects; (iv) demographics; (v) of mining companies has promoted connectivity and whether such
environment, health, and safety; and (vi) human rights. Based on these connectivity drives development.
categories of impacts, this paper examines social action in the mining
sector through the improvement of the local community, women’s 2.4. Basic and health services
empowerment, the support of mining companies in agriculture, live­
stock, and handicrafts, and the implementation of machinery in farming. The mining sector represents an engine of growth for the local
Mining is a key engine for economic development of the countries in economy. It encourages private investment in human and physical
which it is practiced (Gómez et al., 2021) and for the growth of the capital (Bury, 2005; Tamba et al., 2007) because government revenue
communities located around mining operations. Economic benefits ob­ inflows increase (e.g., through mining canons and royalties), which
tained through mining are accounted from the tax collection and the drives investment in the construction and maintenance of in­
employability entailed for local communities. Likewise, mining activity frastructures (Ticci, 2011). Specifically, measures have been introduced
is one of the economic sectors that contributes the most to technological through the construction of schools, clinics, and hospitals (Sirolli, 2008).
development and research in a country and promotes other sectors of the Some mining companies in Peru foster health, education, and technical
economy by purchasing goods and services to be able to operate such as training for adults. Mining donations and tax revenues are also used to
metal-mechanics, textiles, chemicals and personal protection equipment finance infrastructure and facilities for communication, transportation,
(Narrea, 2018; Walter et al., 2021). In addition, as will be seen health, and education. These initiatives can improve human capital
throughout the study, this sector also helps the development of digital quality and capacity (Ticci, 2011). Sirolli (2008) argued that there is
and physical infrastructures, education, and basic and health resources. another side to the coin, noting that these initiatives sometimes only last
for the duration of the mining project because there was no sense of
2.3. Physical and digital infrastructures belonging to the community, which was never consulted.
In contrast, the health risks associated with mining pose a substantial
Several studies (Xongo, 2013; Kuklina et al., 2021) have shown that challenge to the community. Mining companies have introduced mea­
physical infrastructures, transport accessibility, and community sures to prevent these risks and meet SDG 3 (Good Health and Well-
remoteness are crucial for assessing regional or national development. being) and SDG 6 (Clean Water and Sanitation), as reported by Sones­
Sonesson et al. (2016) argued that physical infrastructures and infor­ son et al. (2016). Mining companies have shown their commitment to
mation and communication technologies (ICT) contribute to sustainable sustainable development by ensuring good working conditions and
development. However, in many developing countries, these in­ implementing well-developed standards and management systems for
frastructures and technologies are out of the reach of most citizens. the day-to-day and long-term execution of their health and safety pol­
Expanding the access to physical infrastructures and ICT could improve icies. In relation to SDG 6, mining companies, as major consumers and
innovation and productivity, helping create opportunities in other eco­ polluters of water, can reduce their water footprint by taking wastewater
nomic sectors, which is crucial for sustainable industrialization and recycling measures, collecting water from suitable sources, ensuring that
diversification. This paper analyzes how mining firms improve and their operations do not pollute water supplies or displace local water
support road and transport networks in the local community. users, and sharing their water monitoring, data, and expertise with local
The physical infrastructures, services, and facilities of a region governments. The study also considers the support of the mining com­
ensure that the region itself, companies, and society can function pany in improving health services, infrastructure, and equipment in the
properly (Xongo, 2013). They do so by connecting towns and boosting community, as well as the quality of care provided by medical staff at the
economic and social activity, which favors socioeconomic development health center.
and improves citizens’ quality of life (Kuklina et al., 2021). Moreover,
transport infrastructures contribute to economic growth and quality of 2.5. Education
life in remote areas, hence the importance of encouraging the devel­
opment of these infrastructures (Berman, 2020). Therefore, the study of Mancini and Sala (2018) cited education as one of the biggest social
transport infrastructures is highly relevant for the sustainable develop­ impacts of mining. In mining areas, the literature focuses on the
ment of mining communities in isolated areas. so-called resources curse, which refers to the negative relationship be­
In addition to physical infrastructures, digital infrastructures boost tween the presence of natural resources and low public investment in
sustainable development because Internet connectivity is needed for education (Oyarzo and Paredes, 2021). This theory is based on the
education, health and banking services, and most jobs. Without notion that in areas that are rich in natural resources, such as mining

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areas, there are high economic benefits, which creates a false sense of Cotabambas and Grau, provinces of the Apurimac region, and Chum­
security and economic stability (Polterovich et al., 2010). This situation bivilcas province from the Cusco region. The research unit is made up of
discourages investment in public goods such as education because of a the members of the family household. However, people under 12 years
lack of visible short-term returns (Gylfason, 2001; Shao and Yang, 2014; of age and living on the property for less than one year were not
Oyarzo and Paredes, 2021). considered in the sample. Some communities were considered to be of
Moreover, mining requires a labor force with a low educational level. direct influence, while others indirect influence, differentiating the
This requirement also decreases the desire to study because mining of­ communities around the location of the mine and the road where the
fers a source of income for families (Oyarzo and Paredes, 2021). Primary mineral is transported to the seaport.
school enrollment rates in mineral-rich economies are below the world Mining positively affects economic development in Peru. Its eco­
average. This situation highlights the importance of monitoring primary nomic model is based on the massive export of raw materials (e.g., gold,
and secondary school enrollment rates in emerging mining regions copper, silver, zinc, lead, and tin). In 2020, Peru was the world’s second
(Sonesson et al., 2016). Typically, labor markets with a mining presence largest exporter of copper. It was also the second largest exporter of gold
consist mainly of a small proportion of highly skilled workers such as in Latin America and the 12th largest worldwide (INEI, 2020). Most of
engineers and a majority of medium-skilled workers in operating roles the demand for minerals mined in Peru comes from the United States,
(Gylfason, 2001). Thus, in mining areas, investment in education is China, Switzerland, Japan, Canada, and the European Union. Peru has
pushed down the agenda and interferes with the development prospects entered into several bilateral agreements (e.g., Free Trade Agreements
of local communities, thus limiting economic development. However, or FTAs) with the United States, Canada, China, Singapore, South Korea,
this situation can change. Investing in the standard of living of local and Mexico. These bilateral agreements provide Peru with better eco­
communities and investing in education, health, and environmental nomic opportunities for investment in these markets.
standards of local communities would help attract investment, thus Peru has a total area of 128 million hectares. Of this area,
sustaining communities after mine closures and achieving future 13,455,080 ha (10.51%) were allocated to mining in 2008 (MINEM,
sustainability. 2008), and 4,104,576 ha (3.21%) were allocated to mining between
Although mining companies are not required by law to develop January 2020 and October 2022 (MINEM, 2022). Fig. 2 shows the re­
projects for social inclusion, they can support the community in terms of gions with mining concessions. Most are located in the highlands
infrastructure, health, and education (Young et al., 2007; Miranda, (mountainous regions) and along the coast of Peru. Crucially, the con­
2015; Widana, 2021). Communities appreciate the work of mining ditions of small-scale mining and large and medium-sized mining com­
companies, basically because the government does not reach these panies differ considerably. Therefore, the characteristics of the local
remote areas. The mining companies are the ones that oversee this social region and environment are important. They should be considered when
response, but the onus cannot fall on them (Miranda, 2015). Miranda analyzing the situation of the mining sector in each area in order to
(2015) studied the case of Peru, where the state requires mining com­ design policies to boost the positive effect of mining on society and the
panies to pay taxes, royalties, and validity rights, voluntary contribu­ environment.
tions, and employment funds. Part of the proceeds are transferred to One of the mines that makes a substantial contribution to the Peru­
local and regional governments to finance public investment projects or vian economy is Las Bambas. Las Bambas is the fourth largest national
are used to create funds (such as the employment fund or the voluntary copper producer. It is a large-scale mining company and one of the best
contribution) to finance development projects and social support in ranked (top 5) according to Bambas report (Bambas, 2022). This com­
miners’ areas of influence. However, mining companies neither execute pany, together with its mine, accounts for around 1% of Peru’s GDP and
nor are responsible for these projects. Since 2003, the mining companies generates around 6400 direct and indirect jobs. Las Bambas is located at
have volunteered to carry out projects aimed at sustainable development more than 4000 m above sea level. It lies between the Peruvian prov­
in the regions where they operate. Between 2007 and 2011, 26.1 million inces of Cotabambas and Grau, in the Apurimac region (Bambas, 2022).
people benefited from local development, education, self-employment, Fig. 2 shows the location of the Las Bambas mine in red.
infrastructure, nutrition, health, and other projects, with investment However, Peru has the second most mining conflicts of any country,
totaling more than 460 million dollars. with 46 cases (MCM, 2022). Las Bambas mine has constant conflicts
Even though major efforts have been made to facilitate access to with local communities. These conflicts affect the running of the mine.
education around the world, there is still much to be done. In fact, Therefore, new proposals are required to diagnose, evaluate, and
quality education is one of the SDGs. Sonesson et al. (2016) discussed recommend solutions that contribute to the sustainable development of
how mining can contribute to this goal through technical, vocational, mining and change society’s perception of this sector.
and educational training programs for the current and future mining
workforce. This study considers the satisfaction of the local community
with the support of mining companies in literacy programs and infra­
structure investment in education within the community.

3. Method and data

3.1. Data and contextualization of the mining sector in Peru

This study is based on a face-to-face regional-level survey conducted

in Peru in 2022. The items of the survey questionnaire appear in
Table A1 in Appendix I. The responses to these items provide insights
into the effects of mining on the local society. These items relate to six
areas: social action, physical infrastructures, economic development,
basic services, health, and education. Respondents indicated their level
of satisfaction in these six areas on a Likert scale ranging from 1 to 5. The
sample size was 244, based on 11,089 community members of the
Apurimac-Cusco mining corridor in Peru. Stratified random sampling
was employed. Individuals were divided into subgroups or communities Fig. 2. Concession of mining areas in Peru.
based on community characteristics. The communities belong to Source: INGEMMET (2022).

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3.2. Method community to offset its negative impact on the environment. In other
words, the study explored whether the mining sector can elicit high
To determine which conditions are necessary to explain the local levels of environmental satisfaction among citizens by offering the local
environmental community’s satisfaction with the mining sector despite community other services. To obtain the parameters for the six aspects
its negative environmental impact, necessary condition analysis (NCA) required for the NCA, the Likert scale values from the survey were
was used. A necessary condition constrains the occurrence of an averaged, according to the responses for each aspect. This value indi­
outcome. In other words, its absence also implies the absence of the cated respondents’ average rating regarding levels of social action,
outcome (Hauff et al., 2021). However, other factors may also be needed physical infrastructures, economic development, basic services, health,
for the outcome to occur. Hence, even if a condition is necessary, it may and education provided by the mining sector. The values were thus
not be sufficient to lead to the outcome (Dul, 2016b). NCA indicates the transformed for the NCA. Fig. 3 shows the ceiling lines for environ­
minimum degree of conditions needed to achieve a specific outcome mental satisfaction and other conditions, which are used to identify
level. In this case, the aim is to determine the degree of conditions (social necessary conditions. The ceiling lines represent the borders between
action, physical infrastructures, economic development, basic services, the areas with and without observations (Hauff et al., 2021). A condition
health, and education) that can explain different levels of community is present whenever the scatter plot has an empty space in the upper-left
satisfaction with the environmental performance of the mining sector. corner.
NCA relies on XY scatter plots to examine empty areas in the upper- The effect sizes following CE-FDH (e.g., Ding, 2022; Eggers et al.,
left corner. These empty areas reflect the existence of a necessary con­ 2022; Linder et al., 2022) are 0.013, 0, and 0 for social action, physical
dition. To analyze the necessity level of these conditions, a ceiling line infrastructures, and economic development, respectively (see Table 1).
between the empty area and the area with observations is drawn (Dul, These effect sizes are small or non-significant (below the 0.1 threshold).
2016b). The two approaches recommended to draw the ceiling line are Hence, social action, physical infrastructures such as transport, and
ceiling envelopment with free disposal hull (CE-FDH) for discrete con­ economic development are not necessary to offset the negative envi­
ditions (Dul, 2016a) and ceiling regression with free disposal hull ronmental impacts of mining. Therefore, even if mining companies
(CR-FDH) for continuous conditions (www.erim.nl). The OLS regression provided local communities with social action, transport, and economic
line is drawn through the upper left borders of the linear function of the development, citizens would remain unsatisfied and would continue to
CE-FDH. The two measures to determine the validity in NCA are accu­ have a negative perception of the mining sector. These findings are
racy and effect size. Accuracy expresses the percentage of cases above corroborated by Fig. 3, which has no empty space for the conditions of
the ceiling lines (Dul, 2016b). The effect size d is the ratio between the social action, physical infrastructures, and economic development. In
ceiling area and the total observation area (Linder et al., 2022). The contrast, the conditions of basic services, health, and education are
effect size of necessary conditions can be small (0 < d < 0.1), medium meaningful necessary conditions because they have an effect size that is
(0.1 = d < 0.3), large (0.3 = d < 0.5), or very large (d ≥ 0.5), depending greater than or equal to 0.1 (0.1, 0.319, and 0.297, respectively). Basic
on the value of d (Dul, 2016b). The effect size should exceed 0.1 to be services and education would have a medium effect on the community’s
considered practically and theoretically meaningful (Ding, 2022). perceived environmental impact of the mining sector because the effect
size is lower than 0.3. Health has a large effect for this same outcome.
4. Results Therefore, when the mining sector provides new basic services and
higher levels of health care and education to the local community, the
As explained earlier, NCA determines the necessary conditions for an local community feels that the mining sector’s negative impacts on the
outcome to occur. This study aimed to identify the levels of social action, environment are offset. The local government gains greater revenue
physical infrastructures, economic development, basic services, health, from mining (Akabzaa and Darimani, 2001) and can thus invest in other
and education that the mining sector must provide to the local areas such as health and education (Sirolli, 2008). Otherwise, the

Fig. 3. Ceiling lines for environmental satisfaction and other conditions.

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Table 1
Effect size of conditions according to each ceiling line.
Social action Physical infrastructures Economic development Basic services Health Education

CE FDH 0.013 0.000 0.000 0.100 0.316 0.298

CR FDH 0.006 0.000 0.000 0.050 0.229 0.224
p-value 0.478 1.000 1.000 0.010* 0.000* 0.000*

Note: CE-FDH = ceiling envelopment with free disposal hull; CR-FDH = ceiling regression with free disposal hull; (p-value <.05).

government may be unable to provide these services to the local significance) between the variables considered in the research model.
community. All correlations are positive, indicating that the variables tend to move
The bottleneck tables make the interpretation of the NCA results in the same direction. Moreover, many of the correlations between the
easier when multiple necessary conditions may explain the same variables are strongly significant (most with a p-value of .001).
outcome (see Table 2). The bottleneck table represents the ceiling line of
one or more necessary conditions. It shows the necessary conditions 5. Conclusions
required to achieve a specific level of the outcome (Hauff et al., 2021).
The outcome levels are expressed in terms of the percentage of observed The mining sector has existed since the dawn of human society.
values. The values 0 and 100 are the minimum and maximum observed Through the extraction of valuable materials, the mining sector has
values, respectively. Conditions are expressed in terms of actual values contributed to the development of civilizations. Mining involves other
(Dul, 2016b). For a level of the outcome of 30%, there is no minimum activities that contribute to the economic, environmental, and social
value of any necessary condition for environmental satisfaction. How­ development of the local environment. However, mining also has
ever, for a level of 40% or 50% of the outcome, a minimum of education negative environmental and social impacts on local communities. These
level of 6.7 or 16.8 is required. For a levels of 60%, 70%, 80%, or 90% of impacts can potentially harm people’s quality of life and jeopardize the
environmental satisfaction, certain values of health and education are social sustainability of future generations. Furthermore, traditional
simultaneously needed. For 60% of the outcome, health and education mining does not comply with the UN SDGs set out in the 2030 Agenda.
must have values that are greater than 16.8 and 26.9, respectively. For Therefore, the mining industry faces major challenges in terms of sus­
70%, the values must be at least 36.2 and 37. For 80%, the values must tainability. Research is essential to understand current mining activity
be at least 55.5 and 47.1. For 90%, the values must be at least 74.0 and and the people it affects in order to establish strategies that do not harm
57.2. Finally, to achieve full environmental satisfaction (100%) by the the local region or the people who inhabit it. Only then can the mining
local community, the minimum required values for social action, health, sector move toward a sustainable future.
and education are 12.5, 94.3, and 67.4, respectively. However, the economies of many countries depend on the mining
First, as indicated by the effect size values, these results suggest that sector. In Latin America, this sector makes a major contribution to GDP
the condition with the largest effect on the community’s environmental (Viana Ríos, 2018). For example, this study focuses on Peru, where the
satisfaction is education. Hence, education is the necessary condition mining sector plays a crucial role in supporting the development of
with the greatest power to explain the outcome. Second, certain levels of remote areas. Mining can thus help in integrating these areas with the
the health condition are also necessary for the local community to have rest of the country. Given the role of mining, the Peruvian government
an environmental satisfaction of 50%. Finally, for full satisfaction that has introduced policies to achieve social inclusion and more equitable
offsets the negative environmental effects of mining, mining companies wealth distribution. To ensure that mining is responsible and sustain­
must provide specific levels of social action, health, and education. The able, environmental management and other instruments are required.
local community would perceive the mining sector as valuable to its These measures should target the achievement of sustainable develop­
economic and social future only if these levels are met. If mining com­ ment, building on in-depth analysis of the mining sector (Miranda,
panies do not contribute through social action, health, and education, 2015). Despite the positive effects of mining on the economy and
the local community would be concerned about the negative environ­ development, different groups that are affected by the mining sector
mental effects of the mining sector on the environment. Therefore, as an have joined together to raise visibility of environmental problems and
actor in the economic, social, and environmental decision-making pro­ defend the local community’s rights (Viana Ríos, 2018).
cesses, the local community would oppose mining activities and create This paper reveals the necessary factors for the local community to
barriers that hinder mining development in different regions. feel satisfied and perceive that mining is beneficial, despite its negative
After conducting the NCA and identifying the necessity level for each environmental effects. The results show that the conditions of basic
condition, the relationship between variables could explain the degree services, health, and education have a necessary and significant effect on
to which they jointly contribute to environmental satisfaction. Table 3 the environmental satisfaction of the local community. This finding
presents the Pearson’s correlation coefficient (and associated suggests that when the mining sector provides services in these areas,

Table 2
Bottleneck table for necessary conditions for environmental satisfaction.
Y (environmental satisfaction) Social action Physical infrastructures Economic development Basic services Health Education

0 NN NN NN NN NN NN
10 NN NN NN NN NN NN
20 NN NN NN NN NN NN
30 NN NN NN NN NN NN
40 NN NN NN NN NN 6.7
50 NN NN NN NN NN 16.8
60 NN NN NN NN 16.8 26.9
70 NN NN NN NN 36.2 37.0
80 NN NN NN NN 55.5 47.1
90 NN NN NN NN 74.9 57.2
100 12.5 NN NN NA 94.3 67.4

Note: Y = outcome, NN = not necessary.

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A. Rey-Martí et al. Resources Policy 83 (2023) 103704

Table 3
Pearson’s correlation coefficients between the research model variables.
Variable Economic develop. Social action Physical infras. Environ. satis. Basic services Health Educ.

Economic develop. PPC –

p-value –
Social action PPC 0.168** –
p-value 0.008 –
Physical infras. PPC 0.293*** 0.143* –
p-value <.001 0.026 –
Environ. Satisf. PPC 0.142* 0.114 − 0.011 –
p-value 0.027 0.076 0.860 –
Basic services PPC 0.234*** 0.203** 0.177** 0.085 –
p-value <.001 0.001 0.006 0.185 –
Health PPC 0.429*** 0.160* 0.303*** 0.161* 0.410*** –
p-value <.001 0.012 <.001 0.012 <.001 –
Educ. PPC 0.434*** 0.251*** 0.264 *** 0.366*** 0.431*** 0.387*** –
p-value <.001 <.001 <.001 <.001 <.001 <.001 –

Note: PPC = Pearson correlation coefficient or Pearson’s r. *p < .05, **p < .01, ***p < .001.

the local community perceives that this sector has a positive impact on ensuring long-term sustainability and well-being and avoid social
society. Similarly, certain minimum levels of social action, health, and dislocation and environmental degradation.
education are needed to achieve full environmental satisfaction. These This study is not without limitations. First, the analysis focused on
results highlight the importance of ensuring that mining has positive only one geographical area in Peru. Therefore, the study only considered
social, health, and educational effects on the local society. However, the characteristics of Peru. Mining areas in other countries or regions
these factors may not be sufficient (Dul, 2016a). were omitted. Their inclusion could potentially lead to different con­
These results do not pertain to social action, physical infrastructure clusions, depending on their national contexts and circumstances. Sec­
(e.g., transport), and economic development. Accordingly, these con­ ond, respondents consisted only of local residents. Other mining sector
ditions are not considered necessary to offset the negative environ­ stakeholders such as mining companies and the government were not
mental impacts of the mining sector. Even if mining provides local surveyed. Given these limitations, future research could apply the same
communities with social action, transport, and economic development, analysis approach in other countries. The importance of the necessary
these communities would still be dissatisfied and have a negative factors to achieve local community satisfaction despite the negative
perception of mining. Basic services and education would have a me­ environmental effects of mining could then be compared across coun­
dium effect on the community’s environmental perception of the mining tries. Other mining sector stakeholders could be invited to participate in
sector. When the mining sector provides new basic services and higher the survey to gain a broader overview of the local community’s
levels of health care and education to the local community, the com­ perception of and satisfaction with the mining sector.
munity considers that it offsets its negative impacts on the environment.
Globally and nationally, mining policy appears more and more in the Funding
local media and non-governmental organizations. Citizens, govern­
ments, banks, investors, and insurance companies increasingly distance The authors acknowledge financial support from FONDECYT (now
themselves from this sector, which at times seems careless and indif­ PROCIENCIA) through Proyecto de Investigación Básica Convenio
ferent to the present and future biophysical and socioeconomic well- 061–2021 FONDECYT.
being of local communities. Mining companies must now align their
interests with those of the communities where they operate. The long- Author statement
term sustainability and viability of both the mining industry and local
communities warrant close attention. To ensure the well-being and Andrea Rey-Martí: Conceptualization; Investigation; Project
health of these communities, reducing the environmental effects of administration, Supervision, Visualization, Roles/Writing - original
mining and improving environmental performance are not enough. draft; Writing - review & editing.
Therefore, gaining in-depth knowledge of sustainability in the context of Alfredo Valencia-Toledo: Conceptualization; Funding acquisition,
mining is crucial. Investigation; Project administration, Supervision.
Communications, education, decision-making cooperation, and Nuria Chaparro-Banegas: Formal analysis; Investigation; Method­
diversification are relevant for long-term community sustainability. A ology, Roles/Writing - original draft; Writing - review & editing.
sustainable mining community can achieve a net benefit from mining Alicia Mas-Tur: Investigation; Visualization, Roles/Writing - orig­
activities that lasts long after mine closures. In practice, such sustain­ inal draft; Writing - review & editing.
ability would mean that the community adheres to the three funda­ Norat Roig-Tierno: Conceptualization; Formal analysis; Investiga­
mental requirements for sustainable societies outlined by George Francis tion; Methodology; Project administration, Supervision, Visualization,
(2006): ecological sustainability, economic vitality, and social equity. As Roles/Writing - original draft; Writing - review & editing.
an ideal, sustainability fits well with the common desire to achieve
decent levels of health and well-being in a pleasant environment, with
strong community networks and a range of opportunities for work and Declaration of competing interest
fulfillment. Mining companies face the challenge of engaging in equi­
table collaboration and cooperation with the local community to The authors declare no conflict of interest.

Appendix A. Supplementary data

Supplementary data to this article can be found online at https://doi.org/10.1016/j.resourpol.2023.103704.

7
A. Rey-Martí et al. Resources Policy 83 (2023) 103704

Appendix I. Survey of the economic impact of the Apurimac-Cusco mining corridor (2022)
Table A1
Apurimac-Cusco mining corridor questionnaire items on the six areas of analysis

AREA OF INTEREST QUESTIONNAIRE ITEMS

Local community environmental Rate your satisfaction regarding actions against the contamination of rivers and/or lagoons in your community by mining companies
satisfaction Rate your satisfaction regarding actions against the contamination of pastures and crops with particles (Dust) by mining companies
Rate your satisfaction regarding actions against noise pollution by mining companies.
Rate your satisfaction regarding actions against the extinction of fauna and flora generated by mining companies in your community
Rate your satisfaction with the support of mining companies in caring for water for agricultural activities in your community
Social action Rate your satisfaction with the work of the committee and advisors that fight against mining companies in achieving goals to help your
community.
Rate your satisfaction with mining companies’ support of women’s social organizations in your community, such as mothers’ clubs.
Rate your satisfaction with mining companies’ support of neighborhood councils for the security of your community.
Rate your satisfaction with mining companies’ support of youth social organizations in your community, such as youth clubs.
Physical infrastructures Rate your satisfaction with mining companies’ support in providing transportation services to your community.
Economic development Rate your satisfaction with the job opportunities that mining companies offers your community.
Regarding your main economic activity, rate your satisfaction with the support provided by mining companies.
Rate your satisfaction with the economic incentives that mining companies provides your community.
Basic services Rate your satisfaction with the support of mining companies in improving or maintaining basic services (water, drains, and electricity).
Health Rate your satisfaction with the support of mining companies in improving health services in your community.
Rate your satisfaction with the support of mining companies in improving or maintaining medical infrastructure and equipment.
Education Rate your satisfaction with the support of mining companies for literacy programs in your community.
Rate your satisfaction with the support of mining companies in infrastructure for education in your community and/or district.
Rate your satisfaction with the support of mining companies for technical training in agriculture, livestock handicrafts, and/or other areas
in your community.
Rate your satisfaction with the support of mining companies in offering scholarships for higher education for young people in your
community.
Rate your satisfaction with the support of mining companies in the training of kindergarten, primary, and secondary school teachers.

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