Mining consists of the extraction of mineral and metal resources from land or sea. The mineral and metal resources extracted are finite and non-renewable. However, through re-use and recycling, certain minerals and metal resources can be re-integrated into the production and consumption loop at the end of their life cycle. Mining is one of the oldest industrial sectors and its history has evolved with humanity history.

Mining is a global industry that underpins industrial development in many regions. It is a key sector not only because it is the source of essential raw materials, but also because it potentially leads to economic and social development, often in remote and poorly developed areas, due to its importance in national accounts, level of employment and influence of international markets, etc.

Mining activities can also cause severe environmental degradation because of its location (almost all conceivable places, often with insufficient infrastructure), size and timescale. Potential negative impacts of mining operations include:

• Energy and water consumption
  
• Air, water and land pollution
  
• Landscape alteration
  
• Soil erosion
  
• Destruction of river banks
  
• Health & safety nuisance

In the past, because most mining operations did not seek to minimize the potential negative effects to the environment and society, they often resulted in significant harm to the environment, in form of waste heaps, pollution, acid mine drainage and so on. Mining has left lasting legacy of abandoned mine sites all over the world, which often continue to have an on-going negative effect on the environment.

Today, this attitude is changing and there is an increasing interest from mining companies, governments, communities close to mining projects, NGOs and IGOs, to carry out operations in a more responsible manner.

UNEP DTIE is committed to work with all stakeholders in order to ensure sustainable mining performance via a full policy mix of regulatory measures, economic incentives and voluntary initiatives. UNEP's mining policy aims to:

• Ensure that new and ongoing mines are planned, operated and closed in a way that maximizes the long-term benefits to society while minimizing the negative effects on the environment
  
  
• Support national strategies on handling of abandoned mine sites, and to prevent that new sites are abandoned.
  

This report provides an overview of the UNEP, World Bank, and Mining Minerals & Sustainable Development (MMSD) initiative investigating the role of financial institutions in improving the environment and social performance of the mining sector