The extraction of raw materials has environmental impacts. Forestry and the extraction of coal, oil, natural gas, gold and other minerals can have serious impacts on the environment. Exploration and evaluation, development activities, production and mine closure result in high costs. The years of waiting between the start of exploration, commencement of production and mine closure create specific challenges in accounting for mining organisations.
Most of the damages caused by mining activities cannot be hidden because of the processes involved, it is best to prevent it rather than avoidance. It is important to implement Environmental Management Accounting (EMA), which will assist in presenting a decision-making system for corporations. The system measures and promotes environmental performance by identifying effective cost assessment structures.
This study assessed the awareness of environmental management accounting in the mining industry. An analytical methodology was used. A questionnaire was administered to a selected group of participants. It was based on the employee’s understanding of their organisation’s practices or point of view on environmental issues to build a case about the awareness of environmental management accounting.
Selected participants were mine management or mine production personnel, financial practitioners and environmental practitioners from different mining organisations in the Gauteng, Mpumalanga and North-West provinces of the Republic of South Africa. All participants in the study are employees in the mining industry.
Mine management is less aware of environmental management accounting compared to environmental and financial practitioners. Mine production personnel only perceive environmental issues as costs to the operations. This group rated compliance with regulation as the main driver for their organisation’s environmental management system. Gauteng province is more aware of environmental management accounting compared to Mpumalanga and North West provinces. Organisations with high annual turnover tend to disclose more financial environmental information than those with low annual turnover.
Organisations explain and classify environment-related costs differently according to the intended use of the cost information. There are standards and measures to collect and record environmental and accounting information stipulated in ISO14001 including environmental management systems (EMS) in different organisations. Systems and measures put in place ensure good environmental performance in the mining operations. The tracking and reduction in the amount of energy, water and materials used by organisations may result in environmental benefits. Employees should have environmental cost information associated with their operations in order to minimise environmental impacts of an organisation.
The findings of the study indicated low levels of awareness of environmental management accounting in the mining industry; however, there is a higher level of awareness of environmental impacts and costs, environmental management system and financial environmental information. The level of rating at which organisations generate and record physical and monetary information of environmental management accounting is higher. / MBAm, North-West University, Potchefstroom Campus, 2014
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/11020 |
| Date | January 2013 |
| Creators | Dikgwatlhe, Israel Monnapula |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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