Estimating the Costs Incurred On Ecosystem Services of Cultivated Areas Caused By the Mining of Bauxite Metal in Jajarm, North Khorasan Using the Benefit Transfer Approach

Abstract

Mineral extraction plays an essential role in economic and social development. On the other hand, mining and its dependent processes can have harmful consequences on natural ecosystems, including air pollution, water, soil, and the impact on biodiversity and land use. Therefore, by quantifying these consequences and estimating the costs of damages to ecosystem services, it is possible to reduce the destruction of ecosystems in the country by applying measures based on prevention and control of effects. Jajarm bauxite mining area, as the largest and most crucial bauxite mine in the country, is located in North Khorasan province. Bauxite mining has negative environmental consequences on neighboring ecosystems during the exploitation and extraction of valuable aluminum material. Since the maximum impact area of ​​this mine is cultivated areas downstream and around the extraction area of ​​this area is 6000 hectares, in this study, the cost of environmental damages to the mine has been estimated using the benefit-transfer approach on this biome. The cost of damages to ecosystem services due to bauxite mining in the cultivated Areas (for 1000 hectares of affected cultivated areas) is estimated at 2481375 million IRR (equivalent to USD 9925500) in the year (2021). This highlights the importance of mine reclamation as well as ecological rehabilitation after mining activities in the area.Using economic tools to prevent and control the effects of mining activities is essential.

Keywords

• cost estimation
• ecosystem services
• bauxite metal mining
• jajarm
• cultivated areas
• benefit-transfer method