Leon Gerber

Rio Tinto Research Fellow

CEPMLP, University of Dundee
Outline
1. Overview

2. What is mine closure

3. Traditional mining approaches

4. Why we do it differently

5. How we do it

6. What makes for good practice

7. Recent example

8. Further reading

9. Questions
 1. Overview
• Mines only have a limited lifespan.

• Upon end of life, operations must be

consolidated and closed.

• Includes all matters regarding structures, waste,

residue deposits, water management,
community relations etc.

• The physical activities that are needed to close

down a mine are relatively straightforward -
Greater challenge today involves leaving a
social and environmental legacy
 2. What is mine closure?

Two aspects:

• Actions and measures “to leave a mine site in a condition which is safe and
stable, limiting further environmental impact” after the end of the operations
(whatever the causes of that end: natural depletion, sudden interruption due to
economic reasons, etc.)

• Land reclamation: to restore or rehabilitate the land “…affected by mining for

further economic use…”
(see Hoskin, 2005)
 3. Traditional mining practice

• Traditionally only two principal phases recognised in the typical mine

project life cycle
• exploration
• construction & operation

• Focus on the immediate requirements of the stage that was active at

any particular time

• Mining: precedence over other land uses

• Abandoning the mine as soon as it ended its productive cycle
• Closing remote mining towns together with the mines – ghost towns
4. Why we do it differently
•Mining industry has embraced the concept of sustainable
development

•Growth of environmental awareness – peer review, NGO’s, society

•Governments have also tended to impose stricter requirements on

industry – not only environmental but also economic reasons (Equator
Principles)

•Spate of new mining developments in developing countries – learn

from past mistakes

•Closure ties in with CSR and community responsibility

 4. Why we do it differently (2)
Concept of ‘design-for-closure’

• Relatively recent development

• In 1983, the proposed Cinola Gold Mine located on the Queen Charlotte Islands off
the coast of northern British Columbia was one of the first mine projects to be
conceived using a ‘design-for-closure’ concept
http://www.carc.org/pdfs/NMPWorkingPaper1BowmanandBaker.pdf
http://www.anthonyhodge.ca/publications/Post_Mining_Regeneration.pdf

• Now, good practice requires that the planning time-horizon be extended to

encompass “design-, build-, and operate- for- closure.”
http://www.icmm.com/page/9566
 5. How we do it
Various concerns involved in the closure of mining, across the broad
spectrum of sustainable development elements.
• Visual and Aesthetics
• Environmental
• Financial
• Social
• Employment / labour

Above concerns addressed in mine closure plans:

• Conceptual closure plan: development of a target closure outcome and goals –
ideally developed and used during exploration, pre-feasibility, feasibility/design
and construction
• Detailed closure plan: milestones, detailed methodologies of achieving these,
monitoring and validation processes - used continuously during operations &
incorporated into decision making process
• Decommissioning and post closure plan: Effective transition to closure
 5. How we do it (1)
Key Principles of Mine Closure Design

• Prevention
• mine closure plans to be approved prior to operations
• inspection and strict control of measures towards closure throughout all of operative
cycle,
• stringent system of enforcement and sanctions,
• adequate terms of prescription,
• periodic review of the plan, etc.

• Mine closure costs internalisation

• Cradle-to-grave approach
• Environmental financial assurance measures (EFA) - sureties (fidelity bonds, surety
bonds, performance bonds and letters of credit); cash deposits
• Typically guarantees environmental performance after closure

• Reclamation & Rehabilitation

 Exploration
Conceptual closure
planning
Pre-feasibility

Feasibility

Construction

Increasing Operations
detail (Concurrent rehab)

Detailed closure
planning
Mine life cycle

Decommissioning

Stakeholder input
Reproduced from ICMM: Planning for Integrated Mine Closure Toolkit
Transition to closure

Closure

Post-closure

Relinquishment
5. How we do it (3)
Preparation for practical closure

Care & Reclamation / Closure / Post

maintenance Decommissioning
Rehabilitation Relinquishment Closure
5. How we do it (4)
• Design-for-closure
• At early stages of mine development – pre-feasibility, feasibility and during
assessment process (EIA and SIA):
• initial post-closure concepts should be developed and estimates of post-
closure costs made
• financial instruments must then be identified
• In construction and operation: these framework closure plans should
progressively be reviewed and refined to produce detailed practical
documents
• In operation: progressive closure is also implemented where feasible
• Decommissioning and active rehabilitation:
• Nature of the long-term legacy is finally established
• Post-closure phase: long-term management and monitoring of the property
(passive care)
• Final disposal of the site or ‘walk-away scenario’ or
• Passive care in perpetuity
6. What makes good practice
Main elements of good practice in mine closure

• Mine closure plan as a condition to start mining operations. Stress on pollution

prevention

• Inspection and control. Periodic review of the plan

• Financial guarantees – or alternative mechanisms. Essential to achieve

internalisation of closure costs

• Sanction regime. Efficient enforcement and liability measures

• Public participation at all stages of the development

• Provisions on mine closure of small-scale mines

• Provisions on abandoned mines. Distinction between mine closure and mine

abandonment. Main policy to ensure mine closing (not abandoning)

• Post-closure social and economic policies

7. Recent example(s)
Scotsgold Resources, October 2011

• Mining production of commercial gold and silver due to start in 2013

• Loch Lomond National Park – major tourist attraction
• Park authority’s board - opportunities for new jobs and economic
growth outweigh concerns about the environment
• Company should ensure long-term environmental impact will be
minimised
• Company intends restoration of landscape at end of 10-year licence

• Company undertaken to provide a financial guarantee/restoration

bond by means of Cash Collateral Account.
Country study - South Africa
• Constitutional supremacy.

• Myriad of legislation and regulations affecting mine closure.

• Constitution of South Africa
• National Environmental Management Act coupled with sectoral legislation
• NEM: Integrated Waste Management Act
• NEM: Protected Areas Act
• Mineral and Petroleum Resource Development Act
• Mine Health and Safety Act
• National Water Act
• Minerals Act

• Standards for mine closure derives mainly from environmental prescriptions.

• Large number of South African mines have reached maturity and is looking
towards closure.
Constitution of the Republic of
South Africa 1996

Section 24(a): “...everyone has the right to an environment that which is not
harmful to his or her health and well-being”.
National Environmental Management
Act, 1998
• Section 2: “The costs of remedying pollution, environmental degradation and
consequent adverse health effects and of preventing, controlling or minimising
further pollution, environmental damage or adverse health effects must be paid
for by those responsible for harming the environment”.

• Section 28: Every person* who causes, has caused or may cause significant
pollution or degradation of the environment must take reasonable measures to
prevent such pollution or degradation from occurring, continuing or recurring, or,
in so far as such harm to the environment is authorised by law or cannot
reasonably be avoided or stopped, to minimise and rectify such pollution or
degradation of the environment.

* (includes an owner of land or premises, a person in control of land or

premises or a person who has a right to use the land)
National Environmental Management
Act, 1998
• Sections 32: “...Any person or group of persons may seek appropriate relief in
respect of any breach or threatened breach of any provision of this Act...”.

• Section 33: Private prosecution in the public interest; or in the interest of the
protection of the environment.

Environmental Impact Assessment

Regulations Listing Notice 1 of 2010
• Regulation 27(iv): “...activities, where the facility or the land on which it is
located is contaminated...”.
Mineral and Petroleum Development
Act, 2002
• Provides a holistic cradle-to-grave approach to prospecting and mining.
• Makes provision for economic, social and environmental costs to achieve sustainable
development of SA mineral resources.

• Section 38: Provides for the application of integrated environmental management and
the responsibility to remedy.
• Section 38(2): Makes provision to keep directors of companies or members of closed
corporations liable for any damage, degradation or pollution caused by the company or
closed corporation which they represent or represented.
• Section 41: Makes financial provision for the remediation of environmental damage.
• Section 42: Makes provision for the management of residue stockpiles and deposits.
• Section 43: Provides for the issuing of a closure certificate.
• Section 44: Provides for the retainment or removal of buildings and structures.
• Sections 45: Provides for the Minister to take urgent remedial action pertaining to
environmental degradation and pollution and to recover costs in this regard.
• Section 46: Provides for the Minister to rehabilitate abandoned and ownerless
mines/dumps and to register such sites in the title deeds of land and to transfer the
liability for maintaining the rehabilitation work being undertaken to the responsible
landowner.
Mineral and Petroleum Development
Act, 2002
The MPRDA, 2002 also provides for the implementation of a social and labour
plan. The purpose and objectives of such plans are to:

• Integrate and manage the social, economic and environmental impacts of mining
within all the phases of a mine, until closure
• Avoid job losses and mitigate social and economic impacts on individuals should
a mine close prematurely or at the closure of mines
• Avoid the establishment of settlements, which cannot be sustained after the
closure of mines.
When things go wrong.. Flooding
in KOSH
•Four separate mines in close proximity
in Klerksdorp, Orkney, Stilfontein and
Hartebeesfontein (KOSH area).

•Dispute arose over responsibility for

pumping of underground water after
mine closure.
Flooding in KOSH (continued)
• Prior to closure, dewatering of mines conducted by each mining company at their
own mine shafts.
• Pumping is necessary to prevent the flow of underground water from mines at
a higher location within the mining area to lower-lying mines.

• On whose shoulders should the pumping responsibility lie when one mine closes
down?

• All mining companies and stakeholders agreed on the establishment of a water

company.

• Currently water continues to be pumped to the surface at the upper shaft, before
being piped to the local water service provider – creating subsequent revenue
stream.
8. Further Reading
• International Council on Mining and Metals (ICMM) – Planning for integrated Mine Closure
Toolkit
http://www.icmm.com/page/9568/planning-for-integrated-mine-closure-toolkit

• Financial Assurance for Mine Closure and Reclamation

www.icmm.com/document/282

• International Institute for Environment and Development (IIED) – Sets out sustainability
standards, as applicable to mine closure
http://www.iied.org/

• International Accounting Standards Board (IASB) – Accounting and Disclosure Model for
Extractive Activities
http://www.ifrs.org/Current+Projects/IASB+Projects/Extractive+Activities/Summary.htm

• Scottish gold mine receives approval

http://www.ft.com/cms/s/0/7e722936-ff23-11e0-aa11-00144feabdc0.html#axzz1cLsU2lL5