Uranium Mining In Saks from an Economic Perspective
Uranium had had no value until the 20 and 21st century. It has two properties that its discovery put to utility. Uranium is radioactive and fissionable in nature. Its fissionability aspect is utilized in energy production while radioactivity is used in production of nuclear weapons. It marginal utility is derived from these two aspects. Besides the iodine mined out of uranium is used in the salt making process. This iodine added in salt helps in the prevention of goiter. Radium is normally used in the radiotherapical process of burning cancerous cells. This three uses justifies the fact for the continued mining of uranium.
The government has such an elaborate framework that ensures all the concerns that arising from the mining of Uranium is dully and adequately addressed. The framework is such that before the mining process picks off, an environmental consultation and planning process in undertaken as an appraisal measure. So elaborate the appraisal is such that all the stakeholders are dully involved in the decision making process. The regulatory and appraisal framework is provided hereunder
Government framework on the mining of Uranium in Saskatchewan
The above schedule shows the governments commitment towards ensuring that as gains are reached and profits made the general human welfare in terms of health remains high.
The Key in any countrys economic policy is wealth creation and creation of employment to its citizens. Before mining is undertaken exploration, is done. This process of exploration costs the mining companies 52.7 millions. The reclamation process costs 6.9 millions. Capital expenditure is estimated to cost 344 millions. In total the preliminary process costs 403.6 millions. A large proportion of the said amount is paid to the locals in labor costs. The incomes of the residents of Saskatchewan are therefore increased economically raising the citizens marginal propensity to consume and the subsequent marginal propensity to save (invest).
The government of Saskatchewan is then paid royalties and taxes. This is done at three levels the provincial governments, local government and the federal government. Total taxes and royalties paid are 247.1 millions. The proportions are represented in the chart hereunder.
EMBED MSGraph.Chart.8 s
The chart shows how the government receives taxes and royalties at different levels. If this income is distributed equally to citizens then the per capita income of the residents of Saskatchewan is relatively high. Well these amounts are paid to government. The ultimate economic implication here is that the government then invests these monies in the development of the infrastructure roads, electricity and telecommunication. The welfare of the general citizenry is improved drastically. Besides the amounts being spend on charities is equally high, in a way this helps create employment in charitable institutions. Education forms major policies in most economies given that the uranium industries contribute to this important course I feel it is a worthwhile venture.
The scholarships offered try to address the issue of bringing about equality through supporting the marginalized subsequently the workers in this sector of the economy have their marginal propensity to consume and save increased. In earnest therefore the entire uranium mining process becomes very economical. The consumer increased ability to consume means the government is most likely going to earn even high revenue in form of value added tax. These are clear indicators that the mining industry not only benefits the citizens of Saskatchewan but also Canada and the entire world. Currently there are three major uranium mining centers within Saskchewean province Eagle Point, McArthur River and McClean Lake. Saskatchewan is the largest uranium producer in the world currently. Saskchewean accounts for the worlds 30 uranium supply annually. The mined uranium is normally sold to electrical company producing companies in Canada, Europe, Far East and the United States. The Saskatchewan uranium firms are expected compete with other firms effectively over the world.
Tietenberg, T Lewis, L. (2009). p 62
Evidently, the mining is benefiting the entire world and it is relatively environmental friendly
Natural resource economies
Global warming is threatening the world climate. The ozone has been highly depleted. This is mainly caused by increased emission of carbon dioxide into the atmosphere. These carbons are mainly from industries that use coal as their main if not soul source of energy. While uranium has a number of relative disadvantages, it is worthwhile noting that these disadvantages are combatable. The tailings for example, can be collected centrally and put to effect use. An effective mechanism should be invented to ensure the tailing do not have their way into the atmosphere and water. They are these tailings that when taken in through water or inhalation may bring cancer. In view of this such a policy would be much relieving to the economy.
While it is conceivable that the entire mining process has effects on the environment as has been mentioned above, the effects are to a large extend controllable through an extensive environmental policy. Wherein, mining industries should be obliged to ensure the tailing do not have their way into rivers and other water sources. Besides, the miners should be provided with protective devices such as can assist control inhaling of radon gas. And still, where it can not be controlled 100 then there should be a time limit for one to serve in the mines. Such policy will reduce the amounts of radon one may take in at the time of leaving the mines. Consequently, the companies should e compelled by government to initiate an elaborate insurance scheme for workers and a pension scheme. The governments policy of non involvement in the uranium industry should not imply a strict hands-off policy. If this has to be the case then strong regulatory measures need to be put in place. Such are the concerns of the Canadian leadership
By not acknowledging the full health consequences of uranium mining the government offloads the responsibility to compensate or provide justice to the Den First Nation. To date consultations with government are still underway with anticipated costs for remediation in the millions of dollars. An agreement about cause and affect has not yet been reached.
(Joan Russow HYPERLINK httpPEJ.org httpPEJ.org)
Ultimately, therefore there should be political and economic consensus, on the uranium mining policy. Rather, companies should not be driven by profits but by social welfare.
It is worthwhile noting that the Canadian industries put employee welfare as a major priority, besides they also ensure the emission are as per the optimum set level. On the backdrop of these I feel strongly the uranium mining industry in well manned and have cost effective policies in place. There are as many linkages between the environment and the economy as there are the uses of uranium and uranium products. Analyzing the costs incurred from the table below it is clear the environment issues are well taken care through mitigation policies
Table showing expenditure revenue against expenditure in Saskatchewan
Revenues 1985619956 000s current C of total revenues expenditures
Royalties 203672 49
Surface lease fees 1289 0
Property taxes 11609 3
Mineral properties 5420 1
CCT CCT surcharge1 79382 19
Taxes 101277 24
Total revenues 414210 100
Spending
Environment 8685 16
Energy and mines 5513 10
Labor 1245 2
Education 1771 3
Economic development 1612 3
Highways 20997 39
Other departments2 6926 13
Other expenditures 7574 14
Total spending 54324 100
Revenueexpenditure analysis 1985619956 Current C
Total revenues in constant (1995) C 444757
Total expenditures in constant (1995) C 58743
Net benefits in constant (1995) C 386014
Ratio of revenues to expenditures 7.57
1 CCT Corporate Capital Taxes.2 Other department includes Justice, Health, Finance, Indian and Mtis Affairs, Northern Affairs, Public Service Commission, SaskWater and Executive Council.
Source Saskatchewan Environment and Resource Management, Final Report, Information from the Government of Saskatchewan requested by the Federal Provincial Panel on Uranium Mining in Northern Saskatchewan for the Cigar Lake and McArthur River Projects, Regina
To begin with, the mining of uranium does create employment to the resident of North Sask. These employees are paid either wages or salaries. The income they get is used to purchase foodstuffs, clothes, machinery and other essentials. To each the government gets revenue, unless it is a Zero-rated good. In earnest, they do contribute to the government Gross Domestic Product. Besides the savings these residents make are used in investment prospects, these investments translate into job creation for those not in employments yet. Secondly, government is paid taxes and royalties by the mining companies, these monies are utilized in the development of roads, telecommunication, water, sewage, health facilities, educational institution and other vital infrastructure. The developed infrastructure will trigger foreign investments which translate to job creation. Yet still the very hard-earned income is expected to treat ailments brought about by the opportunity. For instance where cancer is contracted the cost is so high. High costs are associated with the initial treatment and are the burden born by the cancer patients who survive throughout the year. (26,042) is incurred in the first quarter, and then another nine months worth of maintenance care costs (0.75 11,325 8,494) during the remainder of the year are incurred. The total cost of treatment for the first year incurred by the patients who survive is therefore 26,042 8,493 34,535.
Patients who succumb to lung cancer during the first year of the disease have to contend with the initial treatment cost as well as a subsequent terminal care costs for the remaining 3 months of their lives (because those who die are assumed to die midyear). Total costs during the first year post-diagnosis in this case are therefore 26,042 (0.5 30,112) 41,098. (Baker et al., 1989, p14).
These costs are relatively high, however, a good and effective preventive measure should be put in place to avoid getting into these costs. Baker asserts that there is a high likelihood of preventing cancer and there is no need to wait to meet all these costs.
Additionally, given that the energy from uranium is relatively cheap, then this is the way to go. Coal energy produces a lot of emissions into the atmosphere thereby contributing to the depletion of the ozone layer. This is not only a threat to humankind but also other living organisms. If we adopt uranium energy the implication is that there are going to be reduced likelihood that there will be earthquakes, tsunamis, droughts, unpredictable rain patterns and unprecedented flooding. All these have caused far reaching and unfathomable calamities. Whence, the general adoption of uranium energy will be a relief. Nuclear weapon will be demonized by all, particular where they are used without following the internationally laid down procedures and treaties. Nevertheless which country does not want to protect itself Armament by any standards should only be for the sake of precaution and not for war as such. Provided the world order today remains then the nuclear armament will be remain a key factor in armed policies.
Unemployment is a major vice in developing economies. The fact that Saskatchewan has been able to put this important mineral to use is worthwhile. Through weathering, the tailings would still have its way into the water system, thereby bringing about likelihood of contraction of cancer. Given that the very cause of cancer is being put to effective use, it becomes cost effective. The opportunity cost here is definite. One will prefer being in employment, regardless of the risks. With this public opinion particularly by the lower class in society, it becomes the obligation of the government to protect its civilians.
In conclusion, just like other business ventures, mining of uranium has few negative effects. These effects range from causing of cancer, causing of redundancy in new born babies to nuclear weapon threat. However it has a conglomeration of uses that are quite cost effective and environmental friendly. First, the use of nuclear energy has an almost negligible side effect. Besides, this type of energy is relatively cheap compared to thermal and hydro energy sources. The uranium mining industries create employment to a large segment of Canadians (Aboriginal) and other residents. Through the aforementioned employment, the industry is a source of income for most residents. The income also is resultant from the sale of land, royalties from leases and rent from premises. Ultimately therefore the benefits of mining uranium outwit the costs hence the justification for the continued mining of uranium Saskatchewan.