International Journal of Innovative Research in Engineering & Management (IJIREM) ISSN: 2350-0557, Volume-2, Issue-4, July 2015 35 Environmental Audit: A Need for Sustainable Development of Mining Industry Dr. R. P. Choudhary Department of Mining Engineering National Institute of Technology Karnataka Surathkal, Mangalore -575025 email: rpkhokhar@yahoo.co.in ABSTRACT The last decade of the 20 th century has been regarded as the decade of the environment. Environmental auditing is fast emerging as a key practice among industries in India. An environmental audit is one tool that can be used by an organization, in the context of its environmental management system, to help determine its environmental performance. The concept of environmental auditing is promoting the use of clean technologies in industrial production to minimize generation of waste. An attempt has been made to understand and classify the environmental audit in Indian mining industry, and the role of Supreme Audit Institution (SAI) in Indian mining industry. Keywords Environmental audit, Sustainable development, SAI, CSR, accountability. 1. INTRODUCTION The mining sector is likely to contribute to the development of the economy of any country through taxes from large-scale mining companies, and contribute to social–economic infrastructural development within the area where the mine is located. Legislation for mining may require an environmental impact assessment to be carried out before a mine is developed, and that a mine be developed and operated in an environmentally sound manner with the least impact on the environment. Environmental aspects of mining despite the economic importance of the mining industry, there are serious environmental effects associated with it. The effects start at the exploration stage, extend through the extraction and processing of minerals, and continue after the mine has closed. The type and extent of the effects can vary from one stage to another. But at the same time, sustainable development of mining industry is a concept that attempts to shape the interaction between environment and society, so that advances in wellbeing are not accompanied by deterioration of the ecological and social system which supports life into the future. Accounting for sustainability, Corporate Social Responsibility (CSR) is characterized by some of the scholars as a 'technology of modernity' (Gray, 2010); where auditors employ largely checklist methods to create CSR accounts that justify corporate actions. Aspects of accountability for CSR in mining by challenging the current 'Audit culture', offer a tool through which to shape and regulate corporate Social Performance (CSP) (Zadek et al, 2004; Kemp et al, 2012). Supreme Audit Institutions (SAIs) can undertake audits to check that the mining industry is complying with requirements of this kind. A SAI can therefore play a major role in auditing a government’s commitment to protecting the environment from the negative impacts of mining. In the present paper, an attempt has been made to understand the environmental threats to the surrounding region due to mining activities. Also the main focus of the article is the know about the concept of Environmental Audit in mining sector, its functioning, steps, characteristics and role of SAIs in India mining sector. 2. ENVIRONMENTAL ASPECTS OF MINING SECTOR Mining is the industry which always works against the natural ecology;its negative impacts start with exploration, extend through the extraction and processing of minerals, and can continue after the mine closes. The nature and extent of effects can vary throughout the stages of project implementation. Both large and small-scale mining operations have an impact on the environment. Mineral resource activities affect all environmental media – land, air, water, and associated flora and fauna – as well as the human environment – individual health and safety, local community lifestyles, cultural survival, social order and economic well-being. Although the majority of the impacts of mining are said to be “localized”, mining can cause national, trans-boundary and global environmental problems. Environmental hazards and impacts also threaten indigenous cultures and native community land use, and socio-economic and cultural practices in countries with resource-based economies. These disruptions include permanent loss of natural resources, preemption of alternative land uses (for agriculture, forestry, hunting or leisure), ecosystem degradation and loss, destruction of key flora and fauna, displacement of populations, settlement influxes, crime and diversion of individuals and communities from traditional practices to boom-bust employment and small-scale or artisanal mining dependence. 3. CORPORATE SOCIAL RESPONSIBILITY AND ITS ACCOUNTABILITY Over the past two decades the global mining industry has witnessed the necessity and emergence of community relations and development (CRD) functions, essentially under the rubric of sustainable development and corporate social responsibility (CSR). These functions provide companies with mechanisms through which to engage and manage their relationships with key stakeholder groups, share development benefits and protect business interests.Mining and mineral processing are activities for