Adopting the values of sustainable development implies an increase in the m
ining industry's environmental and social costs. For an industry already of
fering poor returns on capital this is potentially a problem. An examinatio
n of the historical record, however, reveals that past increases in environ
mental and social costs have been more than offset by developments in indus
try productivity. The emergence of information and communication technologi
es seems likely to extend this trend into the future. The particular challe
nges being faced by mining in the US appear to be less to do with rising en
vironmental costs than with competition from countries which have recently
opened up to foreign mining investment and to a strong dollar. It seems lik
ely that industry's adoption of more sustainable practices will require, an
d could even promote, improved returns to capital in mining. (C) 2001 Elsev
ier Science Ltd. All rights reserved.