External costs of open-cast lignite mining for the agri-food industry (as illustrated by the example of the Oczkowice mine)

The purpose of this study is to calculate the externalities for the agriculture and the agri-food industry of planned open-cast lignite mining on the Oczkowice reserve. The mine’s area of impact extends to 7 districts of south-west Wielkopolska. The study envisages 2 options for the depression crater’s impact (mine dewatering) on crop production and 2 scenarios of losses in livestock production. Losses due to unrealized production in the agricultural and agri-food sectors within a 100-year time horizon (50 years of mining and 50 years for hydrological recovery) are estimated to range from PLN 22.4 billion to PLN 174 billion. Externals costs, defined as lost profits, are estimated to range from PLN 5.1 billion to PLN 39.5 billion. Compared to the value of lignite from the Oczkowice reserve, the level of external costs and production losses in the agricultural and agri-food sectors make open-cast lignite mining at that location an economically unviable project.