MINE CLOSURE: A Toolbox for Governments This report—Mine Closure: A Toolbox for Governments—is a product of the World Bank Energy and Extractives Unit (IEEXI). The World Bank task team is comprised of Boubacar Bocoum, Lead Mining Specialist and Task Team Leader; Kirsten Lori Hund, Senior Mining Specialist; Narine Tadevosyan and Gary McMahon, Consultants; and Gloria Whitaker, Program Assistant (all from IEEXI). The work was supported by an extended team composed of Ruxandra Floroiu, Lead Environmental Specialist (SAEE2); Gayane Minasyan, Lead Environmental Specialist (GEN03); and Qing Wang, Senior Environmental Specialist (GEN03). The World Bank task team acknowledges the contributions of SRK, the author of this document, prepared by Jeff Parshley PG, CPG, CEM, Group Chairman and Corporate Consultant; Hilde Van Vlaenderen, PhD, Principal Consultant (Social and Environmental); Zhanar Faizuldayeva BSc, Consultant (Environmental); Adam Nott BA, JD, LLM, General Counsel; Ian McIntosh, Consultant (Mine Engineering), and Aaron Fultz MSc, Principal Advisor (Technical Communication). SRK's in‑country partners included Gergili LLC (from Georgia) and Ameria MAS (from Armenia). The World Bank task team would also like to thank Riccardo Pulliti, Global Director Energy and Extractives (IEEDR); Sebastian Molineus, Country Director(ECCSC); Christopher Sheldon, Practice Manager (IEEXI); Sylvie K. Bossoutrot, Country Manager (ECCAR); Abdulaziz Faghi, Program Leader (IECDR); Wolfhart Pohl, Lead Environmental Specialist (GENDR); Keith W. Mclean, Lead Governance Acknowledgements Specialist (GGODR); Morten Larsen, Senior Mining Specialist (IEEXI); Satoshi Ishihara, Senior Social Development Specialist (SEAS2); and the many other colleagues from the World Bank including those in the country offices of Armenia, Georgia, and Kyrgyz Republic for their support. The World Bank task team would like to also recognize the contribution of mining companies, governments, and civil society organizations in Armenia, Georgia, Kyrgyz Republic, and elsewhere for their participation in the country-specific studies and consultations. The World Bank would also like to thank the Extractives Global Programmatic Support trust fund for financing this work. The opinions expressed in this report have been based on the information collected by SRK Consulting (U.S.), Inc. (SRK) from government, public, and private sources during work performed on behalf of the World Bank Group (World Bank). The opinions provided herein are in response to a specific request from World Bank to do so and are subject to the contractual terms between SRK and World Bank. SRK has exercised all due care in reviewing the supplied information. While SRK has compared key supplied data with expected values, the accuracy of the results and conclusions from the review are entirely reliant on the accuracy and completeness of the supplied data. SRK does not accept responsibility for any errors or omissions in the supplied information and Disclaimer does not accept any consequential liability arising from commercial decisions or actions resulting from them. Opinions presented in this report apply to the site conditions and features as they existed at the time of SRK’s investigations, and those reasonably foreseeable. These opinions do not necessarily apply to conditions and features that may arise after the date of this report. APEC Asia-Pacific Economic Corporation ARD acid rock drainage BC British Columbia BLM Bureau of Land Management CA California EIA environmental impact assessment EPA Environmental Protection Agency GIIP good international industry practice ICMC International Conference on Mine Closure ICMM International Council on Mining and Metals IFC International Finance Corporation IGF Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development LOM life of mine ML metal leaching MMSD Mine Minerals and Sustainable Abbreviations Developement NAC Nevada Administrative Code NGO non-governmental organization NM New Mexico NSW New South Wales PEOA Protection of Environmental Operations Act PNG Papua New Guinea PPP public-private partnerships QLD Queensland SMARA Surface Mining and Reclamatio Act SMART specific, measurable, assignable, realistic, time-related SPE special purpose entities SPV special purpose vehicles SRCE Standardized Reclamation Cost Estimator Table of Contents 1 Introduction�������������������������������������������������������������������������������������������������������������������������� 1 7.1.5 Partnerships������������������������������������������������������������������������������������������������������������������������������������������������������� 37 7.1.6 Retrenchment �������������������������������������������������������������������������������������������������������������������������������������������������� 37 2 What Is Mine Closure?������������������������������������������������������������������������������������������������������� 3 7.1.7 Post-closure Monitoring ������������������������������������������������������������������������������������������������������������������������������� 37 3 Closure Governance Framework������������������������������������������������������������������������������������ 6 7.2 Legislation and Policy������������������������������������������������������������������������������������������������������������������������������� 37 3.1 What Is a Closure Governance Framework?�������������������������������������������������������������������������������������� 6 7.2.1 Stakeholder Engagement ����������������������������������������������������������������������������������������������������������������������������� 40 3.2 How to Develop a Closure Governance Framework���������������������������������������������������������������������� 9 7.2.2 Post-closure Vision – Socioeconomic Transitioning, Post-closure Land, and Infrastructure Use ������������������������������������������������������������������������������������������������������������������������������������������� 43 3.3 Time Required to Create a Framework��������������������������������������������������������������������������������������������� 14 7.2.3 Socioeconomic Transitioning and Repurposing Aligned with Social Investment 4 Closure Objectives and Goals��������������������������������������������������������������������������������������� 15 During the Life of Mine and Executed as a Partnership ������������������������������������������������������������������ 49 7.2.4 Pre-closure Socioeconomic Baseline and Impact Assessment ����������������������������������������������������� 50 4.1 Site-Specific Closure Goals�������������������������������������������������������������������������������������������������������������������� 15 7.2.5 Retrenchment ��������������������������������������������������������������������������������������������������������������������������������������������������� 52 4.2 Closure Success Criteria������������������������������������������������������������������������������������������������������������������������� 16 7.2.6 Post-closure Monitoring of Social Aspects of Closure �������������������������������������������������������������������� 53 5 Legal Elements������������������������������������������������������������������������������������������������������������������� 18 8 Technical Requirements of Closure���������������������������������������������������������������������������� 56 5.1 Obligation to Create a Closure Plan��������������������������������������������������������������������������������������������������� 20 8.1 Physical Stability���������������������������������������������������������������������������������������������������������������������������������������� 57 5.2 Stakeholder Engagement������������������������������������������������������������������������������������������������������������������������ 21 8.2 Chemical Stability�������������������������������������������������������������������������������������������������������������������������������������� 57 5.3 Cost Estimation������������������������������������������������������������������������������������������������������������������������������������������� 22 8.3 Contaminated Soils and Water Sources������������������������������������������������������������������������������������������� 58 5.4 Closure Plan Review��������������������������������������������������������������������������������������������������������������������������������� 23 8.4 Biodiversity�������������������������������������������������������������������������������������������������������������������������������������������������� 58 5.5 Financial Assurance���������������������������������������������������������������������������������������������������������������������������������� 23 8.5 Legislation and Policy������������������������������������������������������������������������������������������������������������������������������� 59 5.5.1 Types of Financial Instruments������������������������������������������������������������������������������������������������������������������� 24 8.5.1 Physical Stability����������������������������������������������������������������������������������������������������������������������������������������������� 59 5.5.2 Transitions to Financial Assurance Legislation������������������������������������������������������������������������������������� 26 8.5.2 Geochemical Stability������������������������������������������������������������������������������������������������������������������������������������� 64 5.5.3 Long-term Trusts���������������������������������������������������������������������������������������������������������������������������������������������� 28 8.5.3 Contaminated Soils and Water Resources��������������������������������������������������������������������������������������������� 65 5.5.4 Management and Release of Financial Assurances���������������������������������������������������������������������������� 29 8.5.4 Biodiversity��������������������������������������������������������������������������������������������������������������������������������������������������������� 66 6 Institutional Capacity ����������������������������������������������������������������������������������������������������� 32 9 Closure Risk Assessments��������������������������������������������������������������������������������������������� 69 6.1 Assessing of Existing Capacity�������������������������������������������������������������������������������������������������������������� 33 6.2 Training and Education���������������������������������������������������������������������������������������������������������������������������� 33 10 Template for Mine Closure Plan���������������������������������������������������������������������������������� 71 6.2.1 Online Training�������������������������������������������������������������������������������������������������������������������������������������������������� 33 11 Legacy Mine Sites������������������������������������������������������������������������������������������������������������� 72 6.2.2 Capacity Building and University Courses��������������������������������������������������������������������������������������������� 35 11.1 Policy on Legacy Mine Sites������������������������������������������������������������������������������������������������������������������� 72 6.2.3 Conferences������������������������������������������������������������������������������������������������������������������������������������������������������� 35 11.2 Funding Legacy Mine Cleanup�������������������������������������������������������������������������������������������������������������� 73 7 Socioeconomic Aspects of Closure����������������������������������������������������������������������������� 36 Appendix A: International Mining Standards, Guidelines, and Resources���������������� 75 7.1 Good Practice ��������������������������������������������������������������������������������������������������������������������������������������������� 36 7.1.1 Stakeholder Engagement ���������������������������������������������������������������������������������������������������������������������������� 36 Appendix B: Example Table of Contents for a Mine Closure Plan ������������������������������� 81 7.1.2 Post-closure Vision – Socioeconomic Transitioning, Post-closure Land Use, and Infrastructure Repurposing ������������������������������������������������������������������������������������������������������������������������� 37 Appendix C: Examples of Post-closure Socioeconomic Context and 7.1.3 Socioeconomic Transitioning and Repurposing Aligned with Social Investment Repurposing of Land and Infrastructure ����������������������������������������������������������������������������� 83 During the Life of Mine���������������������������������������������������������������������������������������������������������������������������������� 37 Appendix D: Table of Key Risks ���������������������������������������������������������������������������������������������� 86 7.1.4 Pre-closure Socioeconomic Baseline and Impact Assessment ����������������������������������������������������� 37 1 Introduction SRK Consulting (U.S.) Inc. has been commissioned by the World Bank Group to develop a toolbox for governments to use in the development of mine closure governance frameworks. The proposed tools and checklists are based on good practice for mine closure including technical, social, environmental, and cost estimating aspects. Guidance is also provided for financial assurance implementation, management, and release. Mining is a finite economic activity that provides temporary socioeconomic benefits to communities, shareholders, and owners. In low- and middle‑income countries, it can also constitute a significant portion of the economy (Figure 1). The benefit of economic activity lasts beyond the life of the mine depends on many policy choices including the use and allocation of resource revenues as well as whether post-closure socioeconomic impacts re considered when undertaking the project. In addition to the socioeconomic benefits, long-term social and environmental impacts exist, which if not properly managed, can become complex issues and liabilities in the form of abandoned and improperly decommissioned mines. The global history of abandoned sites and their consequences has resulted in the rise of governance frameworks intended to prevent abandonment and ensure that mine sites are closed in a safe and sustainable manner. The global development of these regulations has been uneven with some jurisdictions still having little or no regulation in the matter, while others possess a robust governance Introduction 1|1 Table of Contents framework. In other words, methods for addressing Figure 1  Mineral Rents and a Percent of GDP closure, financial assurance of those obligations, and remediation of legacy mines vary. The objective of this toolbox is to provide policy makers, governmental administrators, and lawmakers with the information needed to develop a broad governance framework that reduces the risks of an improperly managed mining industry and helps ensure successful mine closure. Every jurisdiction is unique and will require a solution that fits their legislative, cultural, economic and historical context. The toolbox is meant to provide examples of good international industry practice and basic legislative requirements that should be in place to facilitate closure. It also provides practical guidance and explanations for the key components of and process for developing a governance framework specific to mine closure. The tools found herein are based on GIIP including ICMM’s “Integrated Mine Closure: Good Practice Guide”1, APEC’s “Mine Closure Checklist for Governments”2, and other guidelines3,4,5, frameworks, and standards. The ICMM and APEC publications include excellent information (e.g. checklists), which can be used in conjunction with Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of this toolkit to guide the development of these production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. frameworks. Section 5 sets out the legal elements that should and implementing closure practices. Section 10 be included in legislation, as well as suggested be in place to facilitate closure, while sections 6 addresses some of the unique challenges that arise content to appear in policies and guidelines. Sections and 7 highlight the socioeconomic and technical from legacy mines that were not closed in accordance 8, 9, and 11 provide additional tools that are relevant requirements of closure respectively. In each section with good international industry practice. for governments and other stakeholders in assessing guidance has been provided on key items that should 1  ICMM. Integrated Mine Closure: Good Practice Guide, 2nd Edition. 2019. 2  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. 3  ICMM. Planning for Integrated Mine Closure: Toolkit. 2008. 4  MVLWB/AANDC. 2013. Guidelines for the Closure and Reclamation of Advanced Mineral Exploration and Mine Sites in the Northwest Territories. November 2013. 5  Jones AB. 1989. Mineral Titles Recording Policy. Ministry of Energy, Mines and Petroleum Resources. Victoria, British Columbia. Introduction 1|2 Table of Contents 2 2 What Is Mine Closure? Mine closure is a process that occurs when mining operations cease ore extraction activities with the intent of restoring, to the extent practical, land disturbed by mining to a beneficial and sustainable post-closure land use. Many of the developed nations have relatively advanced closure policies created with the assumption that large, well-funded regulatory bodies would provide oversight. This assumption may not apply in the developing world1 and international standards have tended to precede national ones in less developed nations. Although defined and regulated by governments in many mining jurisdictions, mine closure has also become a core business practice for most international mining companies.2 Although mine closure and mine closure planning has been required and regulated by some governments for nearly 50 years, most of the commonly accepted principles of mine closure have been developed and refined in the last 20 years, particularly as they relate to social and economic considerations (Figure 2).3 Governments preparing to implement a closure governance framework need to ensure that, in developing their framework, certain legal, stakeholder engagement, institutional capacity, technical, and financial aspects are carefully considered and incorporated in a manner appropriate for their country. 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. 2  Anglo American. 2013. Mine Closure Toolbox Version 2. 3  International Institute for Environment and Development (IIED) and World Business Council for Sustainable Development (WBCSD). 2002. Breaking New Ground: Mining, Minerals and Sustainable Development Project (MMSD) Final Report. What Is Mine Closure? 2|3 Table of Contents Figure 2  A Partial History of Mine Closure Laws and Guidelines See "Abbreviations" list for explanation of acronyms in this figure. What Is Mine Closure? 2|4 Table of Contents Useful Definitions Many major mining jurisdictions and international mining socioeconomic context to a post-mining one. TEMPORARY CLOSURE is when organizations have definitions of key mine closure Where practicable, the net socioeconomic impact on mine operations are suspended, but terminology. Broad definitions of commonly used the affected region should be beneficial. These efforts closure‑related terms are provided below based on the site is maintained with the intent should begin early and occur throughout the LOM definitions from ICMM1 and the State of Nevada that operations will resume when (after ICMM). (United States). These terms are sometimes used market conditionWs improve. interchangeably. Repurposing – activities that have the possibility to generate income from closure activities. This SUDDEN CLOSURE occurs when Closure – processes and actions planned for and a mining company halts operation may facilitate transfer of the site to a third party implemented when a mine ceases operation or a activities due to economic conditions for relinquishment or provide an offset for ongoing portion of a mine (or mine facility) is permanently such as a sudden drop in commodity removed from use for mining purposes, including post‑closure operating and maintenance costs rehabilitation or reclamation, remediation, (ICMM). price, or operational hardship or mine decommissioning, demolition and/ or dismantling.2 owner going into liquidation. Rehabilitation – return of land to a stable, Reclamation – actions performed during or after an productive, and self-sustaining condition after ABANDONED SITES are mine site exploration project or mining operation to shape, considering beneficial uses of the site and land. where there is no clear owner or stabilize, revegetate or otherwise treat the land in Reinstatement of degrees of ecosystems and function responsible party. Often created by order to return it to a safe, stable condition consistent where restoration is not the objective. the bankruptcy or dissolution of the with the establishment of a productive post-mining company that formally owned the use of the land and the safe abandonment of a facility Revegetation – the establishment of the mine. Historically, this has resulted in in a manner which ensures the public safety, as well as pre‑exploration or pre-mining vegetation or a the encouragement of techniques which minimize the comparable vegetative cover (NAC 519A.080). sites where no closure measures have adverse visual effects (NAC 519A.075).3 been undertaken, and a variety of Remediation – the action of remedying something, physical or environmental issues can Progressive (Contemporaneous) Closure i.e. reversing or stopping environmental damage. persist.2 (Reclamation) – implementation of closure Often used in context of contaminated soils or water. activities during the operating life of a mine Remediation may include activities carried out to providing opportunities to test and demonstrate the clean up or mitigate contaminated land or water. effectiveness of closure activities, validate success criteria, and build trust with communities and the Relinquishment – the process of transferring regulators. Progressive closure is also used to reduce ownership to another party following the successful the reclamation burden at final closure (ICMM). completion of mine closure and monitoring. Socioeconomic Transitioning – efforts to promote, Relinquishment may not always be possible, but it to the extent practical, a smooth transition from a should be a desirable endpoint of the life of asset. 1  ICMM. Integrated Mine Closure: Good Practice Guide, 2nd Edition. 2019. 2 MVLWB/AANDC. 2013. Guidelines for the Closure and Reclamation of Advanced Mineral Exploration and Mine Sites in the Northwest Territories. November 2013. 3  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. What Is Mine Closure? 2|5 Table of Contents 3 3 Closure Governance Framework 3.1 What Is a Closure Governance Framework? An effective closure governance framework typically consists of legislation (laws and regulations), and guidance (policies and guidelines) that define the requirements for developing and implementing closure as part of the regulated mine life cycle (Figure 3). The ability to ensure the legislation and guidance achieves the objectives is further dependent upon the institutional capacity and experience of the government and industry. Several international jurisdictions have developed good governance frameworks for mine closure, but all have been uniquely tailored for the needs of each jurisdiction. However, a few international1,2 and corporate standards and guidelines3 developed in the last few decades define basic principles and objectives of good closure planning practice that can be used as a basis for developing a governance framework for mine closure. Although the details of these standards and guidelines vary somewhat, all have a few common aspects. 1  ICMM. Integrated Mine Closure: Good Practice Guide, 2nd Edition. 2019. 2  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. 3  Anglo American. 2013. Mine Closure Toolbox Version 2. Closure Governance Framework 3|6 Table of Contents Figure 3  Effective Closure Governance Framework Consists of Legislation and Guidance This first piece of legislation that must be put into place, usually in the Greater form of an act, statue, or code. This legislation creates a high‑level obligation, for example, to submit closure plans as part of an Enforcement application for a mining permit. Regulatory legislation is introduced by a minister or agency with power delegated by statutory legislation. Regulations are commonly Statutory Legislation LEGISLATION enacted to create descriptive requirements, authorize the agency to collect fees and fines, and enforce the regulatory requirements. Some regulatory legislation is very general and commonly only Regulatory Legislation requires that an agency should protect the public interest in whatever ways are appropriate. For example, a regulation may authorize the creation of a mining agency for the purpose of responsible management of a country’s mineral resources in whatever manner Policies is appropriate and direct that agency to draft detailed legislation to GUIDANCE achieve that end. Often descriptive, some regulatory legislation may be prescriptive as well. Guidance Guidance documents produced by the government or third-party documents referenced by the government, as providing guidance on methods for achieving the legislative objectives. Statements or common practice that defines a regulatory agency’s interpretation of regulatory legislation or acceptable methods of Greater demonstrating compliance with said legislation. Detail Closure Governance Framework 3|7 Table of Contents Common Elements of Good Closure Planning Practice 1. Preparation of a closure plan at the beginning 5. Placement of a financial assurance based of a project. For mining companies this means on the closure cost estimate. To protect the developing a closure plan during the project government from financial risk in the event of a 1. Preparation of a closure plan at planning and development phase of a project. mining company bankruptcy, mining companies the beginning of a project For a government, this means requiring a closure should be required to post an approved financial 2. Definition of productive, plan or to approval of a mining permit. Closure instrument as a guarantee against the cost of sustainable post-closure land objectives (Section 4), legislative requirements closing the mine as determined by the closure cost estimate (Section 5.5). use(s) (Section 5) and technical requirements (Section 8) must be clearly established. 3. Definition of key technical 6. Regular updates of the closure plan and cost estimate. Both the closure plan and cost estimate assessments that must be 2. Definition of productive, sustainable included in closure plans should be subject to periodic review and update post‑closure land use(s). Because the definition and updated in the event of any significant 4. Preparation of a closure cost of post-closure land use is a critical component change in the operation (Sections 5.3 and 5.5.4). estimate based on the closure of closure planning, a good governance framework should include a requirement to and 7. Involvement of diverse stakeholders. plan recommended approaches for assessing and Development of a good closure governance 5. Placement of a financial selecting appropriate post-closure land uses. This framework should involve federal and local assurance based on the closure often includes the establishment of both physical regulators, industry representatives, and critical cost estimate and geochemical post-closure requirements stakeholders (Sections 5.2, 5.4, 7.1.1, and 7.2.1). (Section 8.2) and socioeconomic post-closure 6. Regular updates of the closure (Section 7.2.2). 8. Management of socioeconomic transitioning. plan and cost estimate To mitigate the negative social, cultural, and 3. Definition of key technical assessments that economic impacts of mine closure, early planning 7. Involvement of diverse must be included in closure plans. Typically, for the transition is required (Section 7). stakeholders closure plans should include actions to ensure chemical and physical stability, measures to 9. Collection of relevant data. Collection of data 8. Management of socioeconomic protect water resources, and procedures necessary to understand of the environmental, transitioning to minimize the need for long-term active social and economic risks associated with closure of a site are required. 9. Collection of relevant data management requirements (Section 8). 10. Preparation of a final closure 4. Preparation of a closure cost estimate based 10. Preparation of a final closure plan/design near the end of the operational phase of the project. plan/design near the end of the on the closure plan. A closure cost estimate operational phase of the project based on the total anticipated cost to implement During the operational phase of the mine life the approved closure plan should be developed cycle, operations typically evolve significantly (Section 5.3). from the originally permitted design. In addition, progressive reclamation and closure activities Closure Governance Framework 3|8 Table of Contents Example of Flexible Legislative Language along with data collected during operations 3.2 How to Develop a Closure improve the information available for final closure planning as the project approaches Governance Framework “The Department may approve an alternate method for stabilizing ore closure. Normally, a final closure plan developed The process of developing a closure governance that has been leached if the holder of to a construction design level should be framework will vary based on existing government the permit can clearly demonstrate developed within two to five years of the planned structures, the importance of mining to a country, and that the condition in which the closure date. There must be clear legislative the environmental and social context of the country. materials will be left will not create a obligations for creating closure plans (Section Developing a framework can be lengthy, but proper potential for the waters of the State planning and collaboration with key stakeholders can 5.1) for creating and reviewing closure plans to be degraded." expedite the process and improve the likelihood that (Section 5.4), as well as the institutional capacity the framework will meet the primary objectives and Nevada Administrative Code. NAC to support the review and implementation of obtain acceptance from stakeholders. 445A.430.3. Nevada Administrative Code. those plans (Section 6). NAC 445A.430.3. A mine closure governance framework consists of In APEC’s “Mine Closure Checklist for legislation, policy, and guidance. These three tools Governments”1, the Asia Pacific Economic serve different purposes and have varying degrees of Cooperation Mining Task Force (2018) identified enforceability. a hierarchy of closure elements that define which that must apply to all sites should be included Typically, legislation contains the purpose, objectives, in legislation. Even when legislation includes aspects of mine closure should be encouraged with and requirements of the framework (the what) and prescriptive requirements, many governments also incentives and which should be required as part of guidance, i.e. policies and guidelines, provide an include language that allows a government agency a mine closure governance framework (Figure 4). indication of acceptable methods for complying with to deviate from prescribed requirements provided it Closure components in the lower half of the the legislation (the how). The legislative component meets the intent of the legislation. pyramid are those that are typically addressed in the defines the compulsory aspects, and care should be legislative elements of a mine closure framework taken in creating overly prescriptive legislation for Finally, placing most prescriptive requirements in a closure governance framework. Avoiding highly policy and guidance rather than legislation facilitates and those in the upper half are typical suggested prescriptive language in mine closure legislation changes in the governance framework because they expectations set out in policy and described in benefits the governance framework for two reasons: are typically easier to modify than legislation. guidance. Governments would then manage the every mine is different requiring every closure lower components through enforcement, while the plan to be site-specific; and the technology of mine This process of creating a country-specific closure upper components are often encouraged through closure is constantly changing. To allow regulatory governance framework typically involves a series incentives and developed through the closure agencies flexibility to address site-specific contexts of steps designed to build consensus on the stakeholder engagement process. and constantly changing closure technology on a overall purpose and objectives, develop critical case-by‑case basis, only prescriptive requirements components of the framework, and create a plan for 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Closure Governance Framework 3|9 Table of Contents Figure 4  The Hierarchy of Closure Needs1 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Closure Governance Framework 3 | 10 Table of Contents implementation. (See also "Process for Creating a Considering that the working group will be reviewing Country-Specific Closure Governance Framework".) frameworks from other jurisdictions and conducting gap analysis of current systems the members Step 1 – Initiation. The goal of this step is to define envisioned to be knowledgeable and experienced the overall purpose of the framework. Typically, in legal review. In cases where identifying such this is prepared by government officials, but could member within governmental bodies is not possible, also involve key stakeholders, such as the mining a third‑party legal assistance can be added to the task industry and environmental groups. Although the force. purpose of existing frameworks vary somewhat based on the jurisdiction, they are typicallyW Step 3 – Define objectives. During the initial working designed to encourage responsible development group meeting the first task would be to define the of country’s mineral resources. Key components of objectives of the new framework. These should include general objectives and specific objectives. mine closure (Figure 4) and mine closure objectives These objectives may be derived from frameworks (Section 4) should be kept in mind when designing the from other jurisdictions and/or international framework. guidelines (Appendix A). They should also consider Step 2 – Form working group. After identifying the related legal frameworks currently existing or in need for and purpose of a mine closure governance development in the country as well as baseline framework, the next step in the process is to develop requirements for closure legislation (Section 5). a working group comprising key stakeholders who can After defining objectives, the working group should work together to create a risk-based framework that compare current legal systems related to mine will be acceptable to all parties closure, if any, to determine what gaps exist relative to the defined objectives and selected international The members should represent key ministries of the guidelines and standards (Appendix A). mining industry, finance, environmental and land use planning bodies. For efficiency the groups should not One of the critical early steps would be to identify be larger than 10 people. Members of the working critical elements of the framework that are essential group should be selected based on the criteria of for success. Whether these are included in a law or willing to achieve the overall objective through regulation, a mine closure policy, or guidelines for the collaboration. The working group should have high framework will determine the level of detail that will level government support. be required in defining those elements. This working group can consult with a wider range of Step 4 – Draft framework. Once the objectives are stakeholders including NGOs, mining communities identified, the working group would prepare a draft and mining companies. framework. This would require participation by legal Closure Governance Framework 3 | 11 Table of Contents Process for Creating a Country-Specific Closure Governance Framework 1 2 3 4 5 6 Initiate Form Define Develop Finalize Develop Planning Working Group Objectives Draft Framework Framework Implementation Plan Define overall purpose Identify stakeholders Convene initial working Prepare draft statutory Prepare final statutory Develop implementation group meeting and regulatory laws laws and regulatory laws schedule including Select working group transition period based on specific criteria Define objectives Prepare draft policies Prepare final policies Enact statutory law Review frameworks from Outline guidelines Prepare technical other jurisdictions guidelines Create program to Conduct voluntary trial(s) develop government Conduct gap analysis of capacity, as needed current systems Public review Develop implementation Identify essential guidance framework components Introduce and enact regulatory law as required, and adapt as dictated by learned experiences and improvements in methodologies Closure Governance Framework 3 | 12 Table of Contents experts familiar with the legal context of the country Step 6 – Develop implementation plan. Before the financial impacts on the mining industry while as well as technical experts in mine closure and the framework becomes a legal requirement, reducing the risk to the government within a related disciplines including scientists, engineers, implementation of the framework should be carefully reasonable timeframe. economists, and social engagement specialists. Legal planned. This is particularly important in countries or technical expertise from outside of the country with little or no prior experience with mine closure or APEC provides The Implementation Checklist may be required to supplement local knowledge implementation of such a framework. The plan should that addresses group of questions that will ensure when frameworks are first being designed. carefully consider the schedule for implementation, transition from exiting legal framework to new recognizing the need to allow the government and closure governance framework is successful and This would include preparation of any required draft industry to develop additional capacity required and implemented. Following items are included in the laws or regulations, as well as a draft closure policy prepare for implementation of the framework. This checklist: and an outline of the required guidance documents. Depending on the legal context of the country, the is likely to include additional training in the form of workshops or seminars, meetings with individual ▪ Consultation with key stakeholders framework may be released in draft form for public comment. operators to discuss site specific requirements ▪ C  ommunicating draft framework ahead of time for closure and development of a schedule for with stakeholders Also, during this step of framework development, the working group should solicit one or more companies compliance with the framework. Experience has shown where this step has been omitted or poorly ▪  stablishing and communicating timelines to allow E executed, the time require for implementation all stakeholders to plan to voluntarily agree to conduct a trial of the framework on one or more of their sites. This would has taken longer and led to confusion and poorly ▪ C  onsidering running a pilot project to test out as provide a useful, real world test of the practicality developed closure plans. many aspects of the new closure policy as possible of the framework and the ease with which it could be implemented. Such a test would also provide Depending on the number of mines that will need to ▪ T  ransition period for financial assurance (Section information that could result in modifications of and comply with the framework, the number of closure 5.5.2) identify gaps in the draft framework. plans and cost estimates received by the government ▪ C  larify interactions with existing regulations and could be significant. To avoid overwhelming the Step 5 – Final framework. Once the draft framework development legal framework targets and goals available resources, some jurisdictions have has been reviewed by relevant parties, possibly scheduled the operations for compliance based ▪ E  valuation of administrative resources needed including the general public, the working group on factors such as life cycle phase of the project (Section 6.1) would finalize the components of the framework. Feedback generated during any trails would also be (Kazakhstan initially focused on new mines) or the risk or size of the operation (Western Australia ▪ P  rovide mechanisms for feedback and incorporated into the final framework. improvement to ensure errors and areas for prioritized higher risk project first). improvement will be identified The final framework would likely comprise a As discussed below in more detail, the combination of legislation (law/regulation), guidance More information is provided in APEC’s “Mine implementation of the financial assurance component (policy and guidelines) and institutional capacity. Closure Checklist for Governments”.1 of the framework should be scheduled to limit 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Closure Governance Framework 3 | 13 Table of Contents Step 7 – Monitoring, review, and revision. Every creation of policies and guidelines, and enhancing major mine closure governance framework that government capacity can require additional time. has been in existence for more than 20 years has undergone revisions for several reasons. Among Even after the framework is implemented, changes in these are evolving technologies, experience with the system should be anticipated. As additional data mine closure, changes in the social, cultural or regarding the impacts of climate change on closure economic context of the country, or implementation become available, additional modifications to existing governance frameworks should be expected. of new international standards, and changes in corporate culture. This indicates the need to With a deliberate approach, amendments to periodically review the framework and revise it as legislation can be done to ensure the key components needed. By limiting the detailed and prescriptive of a legal framework for mine closure exists. Laws can components to policies and guidelines rather than in be implemented in a relatively short period of time. the laws and regulations, revisions to the framework This is unlikely to be a successful venture however, are generally more easily implemented. A balance unless proper guidelines, policies, resources, between regulatory requirements and policy education regarding international standards, and guidance must be maintained to ensure enforceability governmental and corporate institutional capacity to of core requirements while allowing for flexibility in support the implementation of new laws are also in achieving those requirements. place. Without that support there will likely be poor governance of mine closure with uncertainty and variance in practice prevailing and objectives unlikely 3.3 Time Required to Create a to be achieved. A legal framework must be supported Framework by practical and flexible guidelines, institutional capacity, and reference to existing GIIP, a process that Because the legal systems vary considerably by will take several years. country, the time required to create an effective closure governance framework will be country Although the process of developing governmental specific. Based on recent examples of development capacity should begin during the development of the or modification of governance frameworks in several mine governance framework, it is likely to extend jurisdictions, the entire process can take three or beyond the time required to create the framework, more years, depending on the time required to probably for years. This is because the building create and pass the required legislation. Creation of capacity in jurisdictions without a history of mine Kazakhstan’s new subsoil use law that incorporated closure requires considerable training and education. mine closure requirements began in 2015 with the Furthermore, capacity development is a continuous announcement of the government’s intent to update process that must address new technologies as they the law and ended in 2018 when it became effective. are introduced and experience of the government Even if the legislative process requires less time, and the mining industry as mines are closed. Closure Governance Framework 3 | 14 Table of Contents 4 4 Closure Objectives and Goals Closure objectives help to define the purpose and overall intent of a closure governance framework and guide the development of legislation. They are typically included in the preamble to the legislation and/or included in the general provisions at the beginning of the legislation. Objectives are typically general statements and may describe the benefits of mining to the country and the importance of proper closure as part of the responsible development of a country’s mineral resources. They often contain statements of purpose with respect to the protection of human health and the environment, the concept shared benefits of all stakeholders, and the need to manage mineral extraction in a way that leaves a positive legacy after closure is complete. 4.1 Site-Specific Closure Goals In the closure planning process for a mining operation, site-specific goals are often added to augment the objectives defined in the framework and account for site context. These may be related to the entire site, specific facilities, or environmental aspects. Site-specific objectives guide the planning process and the closure actions selected by defining the goals desired from the closure planning process. These may also be determined by corporate closure standards or policies. To determine if the general and site-specific closure objectives are achieved at each site, closure criteria are developed for each objective. They are used to determine if selected closure activities have met Closure Objectives 4 | 15 Table of Contents the closure objectives for each project component. Normally such criteria are expanded upon during the Closure criteria can be site-specific or adopted from development of interim closure plans and finalized as regional/national standards and can be narrative closure planning approaches the end of operations in statements or numerical values. the final closure design. Examples of site-specific closure goals include the In the later stages of project development, certain following: closure criteria may be modified based, in part, on the results of site environmental monitoring programs or ▪ Transfer usable infrastructure to the communities/ site-specific reclamation research. A brief description government for alternative uses of, or references to, the ongoing or future reclamation ▪ Assist suppliers to develop other procurement research related to the development of success opportunities criteria should be provided along with the timeframe ▪ Reduce the time required for active post-closure by which the work will be completed. site management Examples of common closure objectives include the ▪ Ensure adequate year-round water supply to following: downstream users ▪ Post-closure pit lake water quality will meet ▪ Closure actions should ensure health and safety of human contact (recreation) standards the public ▪ Restore water quality to support fishery ▪ Realistic and beneficial post-closure land use ▪ Create self-sustaining vegetative community options should be identified ▪ Closure plans will consider input from stakeholders 4.2 Closure Success Criteria ▪ Closure plans must include measures to ensure Closure success criteria must be meaningful, the site will be physically and chemically stable measurable, achievable, and realisitc to ensure ▪ Measures should be taken to limit the successful closure of project components. The socioeconomic impacts of closure criteria might also have a temporal aspect to consider, e.g., a standard may have to be met for a pre-defined ▪ Adequate financial assurance must be provided number of years. (See also "The SMART Approach to based on an accurate estimate of the closure costs Setting Closure Criteria".) ▪ Require post-closure monitoring of environmental and socioeconomic parameters to ensure success Stakeholders should be involved in discussions in of closure the early stages of project development following licensing as part of the closure success criteria. ▪ Mine closure plans should be adaptive Closure Objectives 4 | 16 Table of Contents The SMART Approach to Setting Closure Criteria 1 S Specific Target a specific area for improvement M Measurable Quantify or at least suggest an indicator of progress A Assignable Specify who will do it R Realistic State what results can realistically be achieved, given available resources T Time-related Specify when the result(s) can be achieved 1  Drucker PF. 1954. The Practice of Management. Closure Objectives 4 | 17 Table of Contents 5 5 Legal Elements An effective closure regime requires the commitment and engagement of all stakeholders, technical expertise, and a clear set of closure objectives and requirements. Properly closing a mine is a benefit to all stakeholders, yet legal requirements are often required to ensure closure is undertaken and to set the expectations regarding the technical (Section 8), financial (Section 5.5), and procedural requirements in the context of the local mining economy. Although legal systems vary from country to country, legislation will consist of two levels of legislation: statutory and regulatory. Statutory legislation includes acts, statutes, or codes that set out a broad set of rights and obligations with respect to mining. The legislation will then delegate authority to a minister or agency to create regulatory law in the form of regulations, by-laws, or ordinances. These are enacted to provide further detail on the specifics of the statutory legislation. Although both create the legal obligations and rights of the state, the project proponent and the public are generally best crafted with the details in the regulation as those laws can be more readily implemented and adjusted. Regulatory legislation should be descriptive rather than prescriptive with respect to technical requirements for achieving the legislative objectives. Government policies and guidelines are non‑compulsory tools that clarify the intent of the legislation, describe the government’s expectations, and provide guidance on good practice for achieving Legal Elements 5 | 18 Table of Contents Example of Legal Elements of a Mine Closure obligations or demonstrating when they are met. Governance frameworks are not created in a void. These terms are often used interchangeably They are heavily influenced by the historical, social, Governance Framework and there is no widely accepted definition that economic, and environmental realities of the industry differentiates between the two pieces of guidance. and the local region. Where the process of closure STATUTORY LEGISLATION – GENERAL governance framework development has been most For the purposes of this toolbox, we differentiate For the reclamation of all land disturbed successful, it has invariably involved a diverse group the two as policies and guidelines. Policies include by the exploration project or mining of interested parties, including federal and local operation to a stability comparable to qualitative statements about intent of the legislation regulators, industry representatives, and special and the methods and processes that are acceptable that of adjacent areas. (Nevada Revised interest groups. A few examples of this are the state Statutes 519A.230.1.c) to demonstrate compliance with the legislation. of Nevada (United States), Peru, Chile, and Western Guidelines are documentation, either produced Australia. All are places where regulators and by the government or third parties that is used to REGULATORY LEGISLATION – industry representatives worked closely together to SPECIFIC provide methodologies for achieving the objectives. create governance frameworks that meet the needs These guidelines may be merely guidance and of the public, while allowing the industry to meet the As used in this section, “ensures public suggested standards, or they may specifically be safety” includes minimizing hazards expectations of their shareholders. referenced in the legislation as containing possible in areas to which the public may have methods for meeting the obligations contained Legislation can mandate a closure plan but does not legal access by, if applicable: …leaving therein. ensure the plan is effective. That requires a clear slopes in a structurally stable condition. policy on the in-country requirements for closure, (NAC 519A.315.3.d) The closure governance framework in Nevada technical expertise, stakeholder engagement, (United States), provides a good example of the and a plan adopted to local conditions. There is INFORMAL POLICY level of detail in different parts of the framework. an important distinction between legislation and The bureau will deem dump slopes as The Nevada Revised Statutes are statutory guidance (policy and guidelines) in governing a mine stable if they are reclaimed to a slope not legislation that require that a site be reclaimed to a closure regime. While it is important to establish steeper than 3H:1V; if steeper, standard stability comparable to adjacent areas. The Nevada clear legal requirements for closure plans and how engineering methods must be applied to Regulations then provide further legal obligations they interact with other aspects of the project, an demonstrate physical stability with greater detail on aspects of those closure plans. overly prescriptive legal regime curtails innovative With respect to slope stability, they must be in a solutions and could require closure actions that are INFORMAL GUIDANCE stable condition that minimizes hazards. An informal unnecessary, not appropriate, or even potentially Use standard methods for determining policy used by the state acknowledges slopes not detrimental for a site. Instead, a closure governance slope stability including standard steeper than 3H:1V are stable. If steeper slopes are framework should define in law only the elements modeling tools to predict the stability designed, then the operator must demonstrate that that are required and use policies and guidelines of the final slope under static and they will be stable. (See "Example of Legal Elements to describe how that can be done. This creates pseudostatic conditions of a Mine Closure Governance Framework" this opportunities for closure plans to be created based page.) on site-specific risks. Legal Elements 5 | 19 Table of Contents Closure Plan Creation All legislation for mine closure based on GIIP 5.1 Obligation to Create a Basic Legislative Requirements should address several elements. These legislative requirements include the following: Closure Plan ▪ Require closure plans ▪ A  n obligation to create a closure plan and a All countries with mining activity should require ▪  stablish a list of main features E description of the general contents required project proponents to create and maintain a closure required in a closure plan ▪  commitment to engage stakeholders in the A plan as part of the approval process. While the details of the obligation will vary by country, at a minimum, ▪ E  stablish when a plan must be process submitted and updated the legislation should require that a closure plan: ▪ Estimation of closure costs ▪ ▪ P  eriodic governmental review or when the mine ▪  e completed and submitted as part of any mining B  ost-closure review and report P to ensure the work has been plan is changed permit or license to extract completed ▪ P  lacement of financial assurances to fund the ▪  nvolve stakeholders in the development and I closure plan if the project proponent is unable or review of the closure plan Additional Policy and Guidelines unwilling to do so ▪  escribe the environmental and socioeconomic D ▪ Reference international Regulatory legislation can then be used to describe in context and risks of the operation relative to standards closure and post-closure greater detail the specific processes, general content guidelines, periods for review, and financial assurance ▪ Define and describe post-closure land uses ▪ P  rovide examples of content and methodologies for creating mechanisms and payment schedules. ▪ D  iscuss implications of temporary and early required portions of closure plan closure scenarios In addition, it is important to have clear ▪  stablish guidelines for level of E documentation that provides guidance regarding ▪  rovide sufficient detail to allow the preparation P detail required at various project technical and socioeconomic expectations of the of an accurate closure cost estimate content of the plan. This will be found in phases ▪ Include cost estimates based on the detailed plan ▪ ▪ C  larify government objectives g  overnment policies and/or guidance on the ▪ Be reviewed regularly (typically one to five years) behind planning for closure required content of the closure plan, ▪ c  omments on closure plans provided by trained ▪ Discuss the physical, environmental and socioeconomic impacts of closure and possible and knowledgeable government staff (or external mitigation thereof, if not addressed under another consultants while local capacity is trained), and governance program ▪ t  hird-party documentation in the form of industry knowledge, international association guidance, ▪ I  nclude a plan for monitoring and remediating and other best practice documents. post-closure impacts Legal Elements 5 | 20 Table of Contents Stakeholder Engagement The legislative requirements should recognize the 5.2 Stakeholder Engagement Basic Legislative Requirements differences between existing operations and new mines that are proposed after the framework is Legislation should include a requirement to engage ▪ Establish framework for review created. This could include differences in the timing with key stakeholders during the development of ▪ E  stablish content to be reviewed, a closure plan, during any changes, and before and and where in the regulatory process for submittal of closure plans, and possibly in the during closure implementation. The primary purpose reviews must occur actions that are proposed because the existing conditions at the mine may preclude some standard of closure stakeholder engagement is to develop ▪ Set out in required stakeholders methodologies being use. For example, if no topsoil a common shared vision of a post-mining future ▪ Establish timeframes for submission, for the area with all key stakeholders including review or growth media has been saved during operations, alternative revegetation may be acceptable, or the government, local communities, and the mine operator. ▪  reate a dispute process for C standards may need to be relaxed. Policy and stakeholders and proponents if Most countries have an EIA law requiring review review outcome is contested guidelines to provide examples of content and methodologies will supplement the legislation. This of any projects with a potential impact on health, ▪ E  stablish a term length for validity of provides guidance and pointers for people who are the environment, safety, and cultural and social successful review unfamiliar with the specifics, as well as confirming aspects of stakeholders. These laws typically include ▪  andate review of economic, M requirements for stakeholder engagement as environmental, health and social the expectations behind the policy. This approach is part of that process. Mining projects are normally issues preferred as it ensures flexibility in approaches rather than strict adherence to a methodology that may not subject to this process and often serves to satisfy ▪ S  et criteria of projects that are the requirement for stakeholder engagement for subject to review and any exempted be appropriate or efficient. International guidelines mine closure during initial project development and projects are provided in Appendix A. permitting. Review of mine closure plans should be a part of that review. During later phases of the mine Additional Policy and Guidelines The legislation must also include a description of life closure specific stakeholder engagement should the process for governmental review and approval, be performed on any modifications to the closure ▪  ethods for advertising and M including timeframes, the basis for rejection and plan. stakeholder outreach revision, and resubmittal of an improved plan. ▪  eference to best practices for R As noted in APEC’s “Mine Closure Checklist for In addition to developing a common shared vision engaging variety of stakeholders Governments” , “[t]he reason or reasons for the for the post-mining, stakeholder engagement should include a review and discussion of the impacts of ▪ G  uidelines on ensuring meaningful rejection must be clear and cannot be arbitrary or engagement of all stakeholders unfounded.” Furthermore, the legislation should allow closure of the mine, address the transition from a mining economy to a post-mining one, as well ▪ P  rovide institutional capacity for the proponent an opportunity to modify the plan to reaching stakeholders with notices actions proposed to close the mine and mitigate rectify the basis for rejection and resubmit the plan.1 and results of review socioeconomic impacts. 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Legal Elements 5 | 21 Table of Contents Cost Estimation 5.3 Cost Estimation use. The operator’s responsibility should be to leave the Basic Legislative Requirements site in a condition that it could be redeveloped by other One of the most significant risks to government parties for the selected post-mining land use. Require all closure cost to be based with respect to mine closure is having to assume the on estimates that are For financial assurance requirements to be liability for closure in the event an operator fails to or is incapable of closing the mine in a responsible an effective method of mitigating risks to the ▪ as accurate as possible, manner. The primary mitigation approach for this government, the cost estimate must be accurate and based on current costs, not future costs discounted ▪ are not discounted, and risk is to require that all operators post financial assurance for the estimated cost to implement an to the current year. The accuracy of the closure cost ▪ reviewed periodically. approved closure plan. For this reason, any mine estimate is directly related to the quality and detail of closure legislation should require that the operator the closure plan, and the methods used to calculate Additional Policy and Guidelines the costs. A closure cost estimate is only as good provide an estimate of the full costs of closure assuming that the government would be responsible as the information used in its development and the ▪ R  eview period should be between quality and detail of the information available can be one and five years (may be for implementing the closure plan. The legislation expected to improve as the mine approaches closure. legislated) must also require that the operator provide financial assurance in that amount in a form acceptable to the Acceptable calculation methods are normally ▪  o not legislate method for D government. developed with the mining industry and documented costing, provide guidance of in policy or guidelines. There are several methods acceptable methods, or what The closure cost estimate should include all costs associated with the closure activities and post- used in the industry, but the most accurate are must be shown to demonstrate an closure monitoring used to physically and chemically those based on first principles using good site data, acceptable method stabilize the mine site and prepare the site for the good engineer’s estimates, or estimates by qualified contractors. Methods based on average costs, ▪ Consider SRCE or similar tools selected post-closure land use(s). Costs for some final closure studies, such as final investigation sometimes called, standard unit costs, do not account and design or environmental and socioeconomic for site-specific conditions and can lead to inaccurate impact assessments, may also be included in the estimates. cost estimate. Cost associated with community The life of most mines is measured in years or development program and retrenchment and decades and most mines expand during operations. reskilling plans are normally included in the operating This causes the cost of closure to change over time. budget of the mine, and therefore are often excluded Generally, the cost will increase due to expansions of from the closure cost estimate. existing facilities or construction of new ones. Some Repurposing Costs — If portions of the site or project of these cost increases may be offset by progressive infrastructure will be repurposed, the closure cost closure of completed facilities. The cost of labor, estimate should include costs to prepare the site or equipment, and materials also change over time. To infrastructure for redevelopment or an alternative land account for these changes closure legislation should Legal Elements 5 | 22 Table of Contents Closure Plan Review require that cost estimates are periodically reviewed relevant to closure that has been collected during Basic Legislative Requirements and updated. the operating period along with any changes to the closure objectives, post-closure land use, and the ▪ Require regular review of closure If the closure framework allows operators to provide costs. These plans are often prepared as detailed plans financial assurance in phases as the mine develops, then the initial closure plan should provide estimates designs, suitable for construction. ▪ R  equire review of closure plans for both the total cost of closure and an estimate of when material change 5.5 Financial Assurance the cost of closure for the current phase. ▪  equire stakeholder engagement R Requiring detailed closure plans with accurate fair when closure plan is amended 5.4 Closure Plan Review market value cost estimates is a key piece of a well- ▪ R  equire updated costing and regulated mining industry. Unfortunately, a closure Conditions are constantly changing on operating plan is only an effective risk management tool for the financial assurance when closure mine sites, so too should the closure plan. The plan government when properly funded. There are many plans amended created during project development is typically situations though where a project may be abandoned based on the project configuration used for project before closure is complete or long-term monitoring Additional Policy and Guidelines financing and permitting. As the operation continues to collect additional information during operations, and management is required for which no funding ▪ Policy and guidelines will follow is available. In those cases, the abandoned mine guidelines for preparing and the mine plan and mine configuration may change. becomes a public liability. When this happens, the closure plan, including the costing plans cost estimate, needs to be reviewed and revised to To prevent this transfer of liability to the government ▪ R  egular review should be reflect those changes. Good mine closure legislation and to encourage progressive closure, financial considered in tandem with other should include a requirement to review and update assurance requires project proponent to provide mine planning or permitting (e.g. the closure plan when any material changes to the the security to cover the costs associated with every five years) operation occur. closure of the mine. In addition, many governance frameworks now requiring financial assurance Costs for services needed for closure of the mine for post-closure monitoring, maintenance, and also regularly change. The closure cost estimate management obligations. Financial assurances are should therefore be reviewed periodically, even if the not funds that are paid from the project proponent closure plan has not changed. Countries with good to the government to pay for the closure costs at a mine closure legislation require that the closure cost future date, rather they are a cash deposit or financial estimate be reviewed and updated every few years, instrument held by a third-party as a guarantee typically every three to five years. to ensure that the closure liabilities of the project proponent are met. Furthermore, financial assurances Most jurisdictions require the operator to prepare are not to be used to collect funds for other defaults a final closure plan as the mine approaches actual or for abandoned mines, which must be addressed closure. These final closure plans contain all the data separately (Section 11). Legal Elements 5 | 23 Table of Contents Financial Assurance The quantum of the financial assurance should 5.5.1 Types of Financial Instruments Basic Legislative Requirements reflect the cost that the government would incur to implement the approved closure plan for the A variety of financial assurance regimes have ▪ Require financial assurance for all closure been established since the 1970s. With industry obligations operation and to monitor the effectiveness of the closure actions including socioeconomic transition. downturns and bankruptcies by mining proponents ▪ C  larify amount of closure cost that must many of the legal regimes have been refined and best ultimately be secured (GIIP is 100%) Based on the experience of several jurisdictions, the quantum of the financial assurance be based on a practice now requires financial assurance for 100% of the financial closure obligations prior to closure, ▪ C  larify timing for first deposit (GIIP is to require this prior to contruction) site-specific calculation to implement the closure plan and often before the mining permit is issued. In addition, the forms of financial assurance continue ▪ Define review and update period for as approved. This is the approach used in the United financial assurance (GIIP is 3 to 5 years) to be restricted with forms of soft security such States, Canada, and Chile. SRCE is an example of one as corporate guarantees, assignment of rents or ▪ If the financial assurance is phased, such tool. It is a free, comprehensive cost estimating clarify how each phased deposit will tool that uses a combination of first principles, cost securitization in the underlying minerals no longer be calculated (GIIP is to estimate the being allowed as security in some jurisdictions. maximum liability that will exist before databases, and user input to create a detailed cost International best practice is to require financial the next update) estimate. However, because SRCE is fairly complex, SRK developed a simple cost estimating tool as part assurance in the form of hard security: bank guarantees, lines of credit, cash, or other methods ▪ L  ist types of financial assurance (GIIP of this project for jurisdictions beginning the process limits to hard security in the form of cash, that are not impacted by the liquidity and financial letters of credit, surety bonds, trusts and of developing a mine closure governance framework. viability of the proponent or the project. Despite bank guarantees) As the government and industry becomes familiar with closure cost estimating, we recommend the use this clear best practice, there remains considerable variation in practice, even amongst countries ▪  larify institutions that can provide or C hold financial assurance of more detailed and comprehensive tools, such as with GIIP. In addition to a legislative framework SRCE. for financial assurances, institutional capacity for Additional Policy and Guidelines managing the funds also needs to be developed All closure and short-term, post-closure costs (e.g. (Section 5). ▪ Transparent guidelines on how financial monitoring) should be calculated as current costs, assurances will be managed, adjusted and Cash Deposits — Cash deposits are allowed for under refunded should be provided to industry not as net present value because the purpose of the financial assurance for closure obligations is to all legislative systems, but few project proponents opt ▪ P  rovide a list of known entities or rating to utilize this mechanism due to the high cost. Where agencies that meet criteria for providing provide a financial guarantee to the government of financial assurances utilized, cash deposits are placed in escrow in a third- an unplanned closure or abandonment. Net present party bank (i.e. not a state-owned bank) and strict value assumes the project proceeds in accordance conditions for release are included. with a plan and schedule. If the government accepts financial assurance in the quantum of an net present Financial assurance is often split into two categories, value, there is a risk that sufficient funds would not be hard security and soft security. The recently enacted available in the event of an early default (Figure 5). Chilean legislation on financial assurance was Legal Elements 5 | 24 Table of Contents designed to allow for a mix of types of financial Figure 5  Stage of Mine Life: Financial Assurance for Long-term Costs Is Typically assurances, with soft security being allowed as a Provided in the Form of a Trust Fund temporary transition tool. Chile’s legislation is one of the only modern frameworks to allow soft security. Although not suggested as best practice, the legislation does provide an example of the types of security that can be used for financial assurances. Hard financial assurance instruments that are considered best practice include the following: ▪ Cash deposits ▪ Bank guarantees ▪ Surety bond ▪ Bank letter with risk rating of at least A ▪ Trust funds Although some frameworks allow for soft forms of financial assurance, often for a limited period, it is not generally considered good practice to accept these as financial assurances. These forms of financial assurances, most commonly corporate guarantees, are tied to the economic viability of the project and/ or the project owner. If the financial assurance is required, it is most likely because one or both the project and the proponent are no longer solvent, which results in a zero value of the corporate guarantee. Source: APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Surety Bonds — Similar to bank guarantees except that the surety can include other third-parties, most often an insurance company. Acceptance of such instruments may be acceptable for a portion of the required financial assurance during the early years of the mining life cycle (as Legal Elements 5 | 25 Table of Contents is done in the early stage of projects in Chile), or 5.5.2.2 Phasing of Financial Assurances during initial implementation of a governance Legislation can allow for financial assurance to be framework, but as the asset is depleted, the risk of provided in phases. This may be done based on the failure of the operation and/or operating company closure liabilities associated with periodic reviews increases significantly while the resale value of of a closure plan and cost estimates, or by requiring the asset decreases. Furthermore, management of the proponent to move from current levels of such instruments requires skilled resources in the financial assurance to a new legislated amount of government and diligent reviews of the operation securitization over several phases. Models vary, and company on a very frequent basis, as well as the but many jurisdictions require a portion of financial willingness and authority to require a company to assurance upon issuance of permits, with 100% of replace corporate guarantees on short notice. the closure costs being required well before closing. Three jurisdictions that utilize phased assurances are 5.5.2 Transitions to Financial Assurance the United States (Nevada and other states), Chile, Legislation and Quebec in Canada. Nevada (United States) and The introduction of a new legislative requirement other states require financial assurance for 100% for financial assurances, or a major adjustment to of the closure costs for the current financial phase, the amount of financial assurance required can be but do not require financial assurance for project disruptive to the industry and counterproductive to components that will not exist during that phase. the goal of ensuring funding is securitized before the project is abandoned. Two practices have emerged to In Nevada (United States), closure cost estimates are help transition established mining industries to new updated every three years by the project proponent financial assurance regimes. and typically include cost for only those facilities that will exist by the end of the next review period. During 5.5.2.1 Transition Period each review, any closure activities that have been completed and approved can be removed from the Adding a transition period reduces the economic financial assurance after approval by the government. impact of new financial assurance requirements on This is reflective of best practice for an established operating mines. This period also offers governments financial assurance system but does not provide time to ensure they have the capacity to process the immediate economic relief when new systems are put increased volume of work required to implement the into place. amendments. This is likely not required where there is sufficient institutional capacity and where mines Phasing of assurances (as shown in "Approaches are operating with reasonable financial guarantees. to Securing Closure Obligations with Financial A typical period between the introduction of new Assurances" on the next page) can also be achieved financial assurance legislation and its application is by requiring a set amount upon implementation of two to five years. the legislation, with a graduated increase towards Legal Elements 5 | 26 Table of Contents Approaches to Securing Closure Obligations with Financial Assurances Approaches to Financial Assurances Requirements Examples Projects that require financial assurance All mining projects British Columbia, Canada; Nevada, United States; Chile; Queensland, Australia; Sweden; Peru Percentage of financial assurance required prior to 20% Chile* construction 50% Quebec, Canada 100% Ontario, Canada; Nevada, United States** Discretionary Sweden; British Columbia, Canada Time between start of mine and full costs being 2 to 15 years Quebec allows for a two-year transition period secured Chile allows up to 15 years Types of financial assurance instruments allowed Cash, letters of credit, British Columbia, Canada; Nevada, United States; Chile; Queensland, Australia; bank guarantees Sweden; Peru Corporate guarantees and Chile allows for alternative financial assurances for a limited period as a transition other soft security to full security through the above instruments * Financial security must be placed within a number of years based on a prescribed formula and a NPV of the costs. The maximum time permitted is the lesser of 15 years from permitting and half of the life of mine. ** The amount of financial assurance posted is often based on the near-term (1–5 years) closure liabilities, with the total accumulating to 100% of all phases during the life of mine. Legal Elements 5 | 27 Table of Contents 100% assurance of the obligation over time. Quebec, relatively short period after the end of the economic Canada, requires 50% of the closure costs to be life of the mine. In contrast, post-closure obligations secured within 90 days of the issuance of a permit. can potentially exist for decades or centuries. To The remaining 50% of the estimated closure cost provide financial assurance for these obligations, must be paid in two equal payments. These payments many jurisdictions allow for the use of a trust to are made on the first and second anniversary of the cover the post-closure costs. This is not a financial issuance of the permit. In contrast, Chile has a slightly assurance that provides a mechanism for covering the longer period for phasing to 100% financial security. costs of closure in the event of default. Instead, trusts In the first year, 20% of the closure costs must be are used to create a source of capital that can be used secured, with a pro-rata of the remaining 80% being to pay for the post-closure costs as are incurred. This paid over a number of years equal to the lesser of type of instrument can also be used to create a trust two-thirds of the LOM or 15 years. This method is fund for communities. much more gradual and has a higher risk that closure costs will be passed to the public. Self-sustaining trust funds are an industry standard method to provide adequate annual funds for Every jurisdiction must find the right balance for post‑closure activities such as long-term water its circumstances. Even in countries with long- treatment or maintenance. The quantum of the established requirements to collect financial required fund depends on the annual funding assurance, review and modifications of existing required, the assumed interest rate, and the year programs are ongoing. Nevada and Washington in which the fund will are used to determine the in the United States legally allow for corporate principle required in the fund. The principle amount guarantees as financial security in their legislation, is normally calculated based on the cost of annual but administrative policy has removed this as a viable operating costs, sustaining capital costs, and form of security. In Sweden and British Columbia, monitoring costs. Initial capital costs would normally Canada, legislation requires financial assurance, but be included in the closure capital costs. For example, the amount of the security is set by an administrative if long-term water treatment will be required, the body on a case-by-case basis. Public reviews have initial capital to construct the water treatment been issued in both countries calling for reforms of facilities would be included as closure capital the legislation to bring them in line with the best cost, whereas annual costs for water treatment practices noted above. operations, periodic capital expenditures to upgrade or replace the treatment plant, and monitoring costs 5.5.3 Long-term Trusts would be included in the trust fund principle. Post-closure financial assurances differ from Maintaining long-term financial assurance financial assurances for closure costs. Closure can be instruments such as irrevocable letters of credit for implemented progressively throughout the project, an indefinite post-closure period is expensive and and final closure can often be achieved within a Legal Elements 5 | 28 Table of Contents may not even be possible. For these reasons, the use may be defined in existing laws, can be borrowed of self-sustaining trust funds is the standard practice from other jurisdictions, or use basic annuity to provide assurance that funds will be available to planning principles (see for example Training Guide fund long-term activities or address uncertain risks. for Reclamation Bond Estimation, USDA – Forest Services 2004 and Bureau of Land Management Self-sustaining trust funds are funded by the operator (United States) Guiding Princoples for Long-Term during operations to ensure that when the post- (Post-Mining) Trust Docuemnts. closure period begins there is sufficient revenue from the trust to fund all ongoing costs without 5.5.4 Management and Release of depleting the principle amount before the trust is Financial Assurances no longer needed. If perpetual care is required, then the trust fund must be perpetually self-sustaining As discussed above, the form of financial assurances (i.e. the principle must never be depleted). The that are allowed varies across jurisdictions. Most amount of annual investment needed to create the financial assurances are now provided through third fund depends on amount of principle required, the parties in the form of letters of credit, surety bonds assumed interest rate and the number of years before and bank guarantees. In those situations, the funds the fund will first be required. are held by a third party and managed in accordance with the terms of the specific financial instrument. Although there several models used by various government to estimate the quantum of a trust, Where financial assurances are in the form of cash most of them rely on a net present value estimate of payments, GIIP would suggest that the funds be all included costs over a sufficiently long period of deposited in an independent third-party bank, time that any additional years become immaterial. with similar terms governing the release of funds. A more appropriate approach to calculating a trust However, not all systems do separate cash payments fund quantum is to estimate the fund quantum as one in this manner. Indeed, some systems require would an annuity using conservative assumptions payment of the financial assurance to a government regarding interest and inflation. Interest rates used agency. In some cases, these funds will be intermixed are typically based on stable investments such as with other financial assurances or placed into government bonds, and interest rates based on general revenue. This is not consistent with GIIP recent economic data. as it threatens the ability to remediate the specific project in the event of default. By mixing funds, the To the extent financial assurance for long-term financial assurance has essentially become a levy obligations is required under a new financial for remediation. If financial assurances are to be assurance regime, the government should allow for provided through cash, it is extremely important to the use of trusts by proponents. The specific rules for ensure that cash financial assurances are maintained calculating the amount to be placed in a trust fund in separate accounts and ledgers and are not mixed Legal Elements 5 | 29 Table of Contents with other funds. This will ensure that those funds are and verifiable criteria that institutions are required available in the event of a default, or if refunds are to to meet if a project proponent would like to use their be made as closure cost estimates decrease. services for financial assurances. An example set of criteria would be to allow any financial institution Regardless of whether financial assurances or surety provider that meets a financial test and are made in the form of cash or other methods can provides services in country. The financial tests (surety bonds, letters of credit, or guarantees), the can be simple and use third parties for verification, financial institution holding the funds or offering for example allowing for companies or institutions the securitization should meet criteria set out meeting a minimum ranking with Dominion Bond in regulations. Some jurisdictions create a list of Rating Service Limited, Fitch Ratings, Moody’s approved financial institutions on the assumption Investors Service or Standard & Poor’s institutions. that those listed will provide appropriate financial That minimum should be a prime rating, such as a controls and stability over the long-term. This BBB (low), Baa3, BBB- or similar. method, however, requires regular review and updating and can lead to situations where Under either system of verifying financial institutions, inappropriate institutions are added to the list, there will be a need for the responsible ministry to or appropriate institutions are left off. The most review the offered financial assurance against those appropriate method for providing a list of approved guidelines. In addition, standard legal terms that institutions, it to have a government institution that outline the release conditions for financial assurances has the capacity to perform the review be responsible should be prepared. This ensures consistency for that list. In Ontario, Canada for example, banks in approach, that closure liabilities are met, and and guarantee companies are approved sources provides certainty to the industry that such funds of financial assurance if they meet the Bank Act will only be used to meet the closure liabilities in (Canada) or the Insurance Act (Canada). This removes the event the proponent fails to meet their legal the requirement for the provincial Ministry of Energy, obligations. Northern Development and Mines from having the required institutional capacity to review financial 5.5.4.1 Release of Financial Assurance Liabilities institutions. Even with this method, local institutional In addition to managing the types of financial capacity is required to review the financial assurances assurance mechanisms and approving the institutions offered by project proponents to ensure they are allowed to issue them, it is also important to from listed providers. continuously manage the quantum of financial assurance. As discussed, this is best done by ensuring Where there is no established national capacity proper estimates of closure costs are prepared, and or approved list of institutions, or to provide for a then periodically reviewing and amending the amount broader framework of potential sources of financial of financial assurances, as required. assurance, GIIP is to provide a list of independent Legal Elements 5 | 30 Table of Contents As closure costs increase, additional financial In most jurisdictions, the amount of the required assurance should be requested. Conversely, as financial assurance is reduced as closure obligations closure costs decrease, the financial assurance are met, but some financial assurances will remain liabilities should be reduced or released (in the case in place during the post‑closure monitoring of third party held funds) or returned (in the case of period. Partial releases of financial assurance for government held funds). completed closure work is an effective incentive for mining companies to implement closure activities Although the amount of the financial assurance progressively throughout the mine life cycle, thereby required may increase or decrease over time, the reducing the financial risk of the government. ultimate release of the funds occurs only under very specific circumstances. The third party or To determine if the closure plan, or a portion thereof, government should only release the financial has been properly implemented, the operator should assurances upon certain predefined conditions being submit an as-built report and the government should met—specifically, some or all the approved closure inspect the work to confirm compliance with the plan are implemented. closure plan requirements. Typically, release of the final portion of the financial assurance is contingent GIIP states that financial assurances should only be upon demonstration that the site is stable, and released to government authorities if the project proponent fails to meet the objectives of the closure the closure objectives have been met, or are on a plan and is unable to do so due to financial insolvency trajectory to do so. This usually requires a post- or dissolution. Similarly, financial assurances the closure monitoring period of five or more years. project proponent should not be released from Financial assurance instruments are intended as liability until (a) all the actions in the approved closure a guarantee against non-performance of a mining plan have been successfully completed; and (b) the company with respect to their closure obligations. obligations of the closure plan have been achieved. If a company fails to meet those obligations, the Some jurisdictions provide sample surety bond government should demand payment of the third- documents in their guidelines that are required for financial assurances (see for example, Reclamation party instrument or transfer the cash into an account Surety Bond Template, British Columbia, Canada and from which the closure work can be funded. The Bureau of Land Management Bond Forms, United government will then enter into a contract with a States. company qualified to implement the closure plan. Legal Elements 5 | 31 Table of Contents 6 6 Institutional Capacity Institutional capacity is crucial to oversee the creation and implementation of a closure governance framework. During introduction of a new framework, the government must have the qualified resources to develop the framework. As the framework is implemented, the government must be capable of regulating closure activities and managing closure of abandoned or improperly closed mine sites. To develop the framework, the government must have at least a basic understanding of mine closure practice or have access to resources that do. This knowledge can be obtained through education of government staff, associations with academic institutions, or collaboration with other governments. Once the framework is developed, the government must also have qualified resources to implement it. Proper review of closure plans is critical to ensure that the operations will meet the objectives of legislation and to mitigate risks resulting from inadequate or inappropriate closure measures, and insufficient provision of financial assurances. Experience with new closure regulations in countries such as Chile and Kazakhstan, and reference to APEC’s “Mine Closure Checklist for Governments”1 indicate that the following capacities need to be supported and enhanced to ensure effective implementation of a closure governance framework. 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Institutional Capacity 6 | 32 Table of Contents ▪ E  stablish a dedicated inter-departmental Where overlaps could exist, coordination with other ▪  re the resources in place to provide adequate A mine closure plan review team and consider government agencies is critical to avoid creating technical review? Will all plans be coming on the supplementing with third-party review of closure duplicative requirements under separate frameworks same date, or is there a mechanism to distribute plans while building capacity and unnecessary expenditures. Where gaps exist, them through the year? ▪  nsure the size of the team dedicated to review E consideration of methods to address those gaps could ▪ A  re the appropriate institutions in place to include training, hiring, or short-term contracts with administer financial assurance instruments? mine closure plans is sufficient to address the qualified third parties. projected workload 6.2 Training and Education ▪ P  rovide and achieve a reasonable timeline The APEC “Mine Closure Checklist for Governments”1 provides several tools to assess for review of mine closure balancing industry There are multiple sources for GIIP and guidelines current institutional capacity. These include the that can be accessed by various stakeholders. One expectations and thoroughness following questions: ▪ E  nsure the responsible staff have the technical of the obstacles to understand and learn from these background and relevant specialist training ▪  re there specialists with appropriate training in A documents is the knowledge of language. Online tools for translation are continuously improving and can required to review mine closure plans closure issues available to the governing body to used for translation, however, some jurisdictions will review closure plans? ▪  nsure the responsible agency has the capacity E benefit from professional translation of guidelines. to manage and administer approved types of ▪  s there a mechanism for the regulator to contract I third-party expertise and provide specialist This section provides an overview of training financial assurance instruments available online and at universities, and a technical review of the documents? ▪ E  nsure the banking and insurance systems have ▪  s required number of specialists to accommodate I conference related to mine closure. This list is not the capacity to introduce and use a variety of complete and should be used as starting point for review of expected mine closure plans available? training ideas. Many regional conference and training financial assurance instruments in a variety of Is there capacity to carry out geochemical studies centers provide region centered trainings as well. currencies or model ARD/ML? 6.2.1 Online Training 6.1 Assessing of Existing Capacity Additional assessment of the administrative The Edumine2 platform is Accredited Provider of resources needed to deal with the new law is also Continuing Education and Training that provides In many jurisdictions mine closure is regulated by necessary and should include the following questions: professional development training for people in the number of different departments (i.e. mining, land, mining industry. Edumine provides following course forestry, environmental protection, and water). To ▪  f closure plans are being required for the first I on mine closure: avoid overlapping or gaps in the regulatory oversight, time, how many will be coming in for review over an assessment of the existing regulatory frameworks what time period? ▪ Mine Closure: The Basics of Success should be conducted to assess current capacity and ▪ How many reviewers will be needed? ▪ R  eclamation and Revegetation for Mines in Arid gaps. Climates 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. 2 Edumine. https://www.Edumine.com/ Institutional Capacity 6 | 33 Table of Contents Case Study: Kazakhstan – Implementation of New Closure Plan Instructions In 2018, Kazakhstan introduced a new Subsoil and Subsoil The responsible authority has been changed several times Use Code and associated Instructions for the development from Mining Department with Ministry of Investment and of closure plans. The implementation of the new Code Development (now re-named to Ministry of Industry and included transition clauses. Under transition clause existing Infrastructure Development) to Committee of Geology “liquidation” (closure) designs remained legitimate until and finally with newly formed Ministry of Ecology, Geology mining plan/design is changed. The transition clause was and Natural Resources. Frequent changes of responsible introduced to provide time both for government and authority have led to untrained specialists reviewing industry to adapt and implement new regulations. closure plans and the associated risk of approving incomplete or inadequate mine closure plans. Implementation of new regulations included consultation with industry and limited training of the governmental staff. The situation in Kazakhstan demonstrates the importance Unfortunately, the initial plan to introduce a “liquidation of identification and training of responsible authorities and operator” within governmental structure to be responsible staff for review and approval of closure plans and financial for closure and financial assurance management did not assurance estimates. The transition period to allow both pass review in Parliament. This created gap in responsible government and industry to prepare and adapt to new authority for closure plan reviews and approval within regulations is important but must be used to train the Ministry of Investment and Development. authorized agency. Institutional Capacity 6 | 34 Table of Contents ▪  urface Reclamation Techniques 1: Topsoil, S At this time, there are very few university programs Hydrology and Topography that are specifically designed to teach mine closure, ▪  urface Reclamation Techniques 2: Wildlife and S and those that do exist are typically undergraduate Vegetation courses on specific topics such as mine waste design ▪ S  urface Reclamation Techniques 3: Drilling or general topics such as mining and sustainable development2,3 or post-graduate extension Program and Postmining Land Use programs.4 However, the Sustainable Minerals 6.2.2 Capacity Building and University Institute at The University of Queensland provides Courses postgraduate research projects in ecosystem assessment, restoration and resilience; industrial The IGF1 secretariat provides capacity-building ecology and circular economy; and mine closure and training and workshops to member countries upon sustainable landforms. request. Training up to date covers following topics, but can be tailored to the specific needs of member 6.2.3 Conferences governments and are prepared to provide training on all aspects of mining policy: The annual ICMC5 is the platform event for the global mining industry. It provides opportunities to network ▪ Mine Closure Workshop on Legal Frameworks and explore the latest mine closure methodologies ▪  owards Sustainable Mining Practices Among T and technique breakthroughs. This meeting provides ASEAN Countries a forum for attendees from a variety of disciplines to ▪ C  ommunity Development and Mining: UEMOA exchange ideas about their work and to learn about regional workshop new developments in the field of mine closure. 1  Intergovernmental Forum Workshops 2  University of Nevada, Reno - Mackay School of Engineering and Science. MINE 456 - Mining and Sustainable Development 3  University of British Columbia. MINE 486 (3) Mining and The Environment. 2020 4  Pontificia Universidad Católica de Valparaíso. Postítulo en Cierre de Faenas Mineras 5 Mine Closure 2020 – 13th Annual International Conference. Institutional Capacity 6 | 35 Table of Contents 7 7 Socioeconomic Aspects of Closure Until relatively recently mine closure focused entirely on physical, environmental, health and safety issues. The socioeconomic impacts of closure received little attention. During the past 10 years, the notion of social closure, which focuses on the socioeconomic impacts of closure, has gained significant importance. More recently the concept of “social closure” has been replaced by the notion of “socioeconomic transitioning,” as mining host communities are not closing but rather transitioning from a mining context to a post-mining one. 7.1 Good Practice Good practice guidelines on social aspects of closure are gradually proliferating. The most comprehensive and recent guidelines are contained in the ICMM guide on Integrated Mine Closure (2019)1. The core components are outlined below: 7.1.1 Stakeholder Engagement Stakeholder engagement is vital for successful closure. The mining company, government, local business, local NGOs, mine local labor force and the wider host communities, as a minimum, need to be included in stakeholder engagement. An effective stakeholder engagement strategy for closure planning should start early (environmental and social impact assessment stage) and focus on realistic, achievable socioeconomic transitioning 1  ICMM. Integrated Mine Closure: Good Practice Guide, 2nd Edition. 2019. Socioeconomic Aspects of Closure 7 | 36 Table of Contents The Role of Stakholders in Effective Closure Planning goals and objectives. Stakeholder engagement should socioeconomic impact assessment and risk analysis. be intensified pre, peri and post-closure to manage To conduct an effective impact assessment, up stress of local communities and to stay abreast of to date socioeconomic baseline data should be Effective mine closure planning and stakeholder needs and vision. gathered. Host communities often change during implementation considers the views, the LOM. These processes have a major effect on the concerns, aspirations, efforts, and 7.1.2 Post-closure Vision – Socioeconomic socioeconomic character of mining areas and regions. knowledge of internal and external Transitioning, Post-closure Land Use, and stakeholders to identify mutually Infrastructure Repurposing 7.1.5 Partnerships beneficial closure outcomes for the A vision of the post-closure socioeconomic Socioeconomic transitioning and post-closure company and its host communities. environment, including post-closure land and repurposing are best undertaken as a partnership ICMM. 2019. Integrated Mine Closure: Good infrastructure use and post-closure local economic between government, host communities, the mining Practice Guide, 2nd Edition. activities, should be developed in the mine feasibility company and potentially development NGOs. study phase as part of the environmental and social impact assessment to enable consideration of 7.1.6 Retrenchment post-closure land and infrastructure use in project A fair retrenchment package should be negotiated decisions and design. The vision needs to be regularly with the mine labor force well in advance of closure. reviewed throughout the LOM. Where possible post- closure visions should be aligned with governmental 7.1.7 Post-closure Monitoring or donor funded local, regional, and national development goals and plans. In parallel with post-closure environmental monitoring, there should be a process of periodic 7.1.3 Socioeconomic Transitioning and monitoring of socioeconomic conditions of Repurposing Aligned with Social Investment thehost communities, using the pre-closure impact assessment as the baseline. During the Life of Mine Mining companies should implement social investment programs during the LOM which 7.2 Legislation and Policy prepare mine host communities for post-closure sustainablelivelihoods and which are aligned with the To date, socioeconomic aspects of closure are post‑closure vision. not well regulated globally.1 As a result, mining operations look towards GIIP for guidance. The 7.1.4 Pre-closure Socioeconomic Baseline workflow on the next two pages outlines the and Impact Assessment recommended role of government in the application of GIIP in the social aspects of mine closure. The Socioeconomic transitioning and repurposing social aspects and the government's role are further strategies should be informed by a pre-closure outlined below. 1  Center for Social Responsibility in Mining. 2020. Social Aspects of Mine Closure: Governance and Regulation. University of Queensland. Socioeconomic Aspects of Closure 7 | 37 Table of Contents Phase ► Pre-operational ► Life of Mine Stakeholder Engagement Development and Refinement of Vision and Objectives Development and Refinement of Social Aspects of Closure Plan Socioeconomic Components Development of post-closure vision and objectives including post-closure land and Socioeconomic transitioning infrastructure use and economic activities. Repurposing of land and infrastructure Initial local impact assessment including impacts from closure Items to Legislate Review Items to Legislate Review Require stakeholder engagement in Initial SIA Require social investment programs Social investment plan designing and executing closure plan Closure stakeholder engagement plan (typically addressed in mine licensing Require assessment of closure legislation) Provide Input Repurposing plan impacts at ESIA stage Partnership in terms of social Identify post-closure land use Items for Policy development programs Provide Input Role of Government Provide guidelines to link social Building capacity to manage Post-closure vision (alignment with investment programs to post-closure Items for Policy national and regional development infrastructure and services transferred socioeconomic sustainability and post-closure Provide a framework for minimum plans) national and regional development thresholds and suggested processes Legal constraints with regards to plans for stakeholder engagement repurposing Provide clear guidelines on expected post-closure uses in accordance with government development and land use policies Socioeconomic Aspects of Closure 7 | 38 Table of Contents Phase ► Pre-closure ► Closure ► Post-closure Stakeholder Engagement Development and Refinement of Vision and Objectives Development and Refinement of Social Aspects of Closure Plan Socioeconomic Components Social impact and risk assessment Socioeconomic transitioning Social monitoring Preparation for socioeconomic transitioning and Repurposing of land and infrastructure retrenchment Final closure plan (socioeconomic aspects) Retrenchment Items to Legislate Pre-closure Review Items to Legislate uses in accordance with Items to Legislate Provide Input Require pre-closure Social impact Require stakeholder government development Require social investment Partnership in terms socioeconomic impact assessment engagement in designing and land use policies programs (typically of social development assessment for closure Final social closure plan and executing closure addressed in mine programs plans plan Review licensing legislation) Building capacity to Require consideration of Require assessment of Initial SIA manage infrastructure and retrenchment package closure impacts at ESIA Closure stakeholder Items for Policy services transferred post- Role of Government in law and possible stage engagement plan Provide guidelines to closure guidelines in policy Identify post-closure land Repurposing plan link social investment use programs to post- Items for Policy Provide input closure socioeconomic Provide guidelines for Items for Policy sustainability and national Post-closure vision and regional development the execution of the Provide a framework for (alignment with national socioeconomic impact plans minimum thresholds and and regional development assessment suggested processes for plans) Provide guidelines stakeholder engagement Review Legal constraints with on the content of a Provide clear guidelines regards to repurposing Social investment plan retrenchment plan on expected post-closure Socioeconomic Aspects of Closure 7 | 39 Table of Contents Setting Stakeholder Expectations 7.2.1 Stakeholder Engagement of impact or the level of influence the more intense the level of engagement. Stakeholder engagement is a core component of the It is critical to set realistic mine closure process, and stakeholder engagement 7.2.1.2 Stakeholder Engagement Issues expectations regarding the should be required as part of any closure law (Section implications of closure on a 5.2). The primary purpose of closure stakeholder engagement is to develop and execute a common variety of stakeholders. However, Stakeholders are individuals or groups who are shared vision of a post-mining future for the mined during project development, potentially impacted by mine closure and who have area with all key stakeholders. As a minimum the permitting, and operations, the an influence over or interest in the closure of a mine. government, local communities, and the mine focus of stakeholder engagement Many jurisdictions have laws requiring stakeholder operator and its employees should be included. tends to be on employment, value engagement as part of any project development To achieve this objective stakeholder engagement sharing, community development activities are undertaken with regards to the including mining projects. However, although programs, public health and safety, following aspects of closure: governments can require stakeholder engagement to and environmental protection. In occur, they do not typically control the narrative or ▪  ost-closure visioning (from EIA phase P these early phases of the mine life outcomes. through pre-closure) including socioeconomic cycle, closure is often viewed as an transitioning and repurposing, i.e., identification of abstract, future issue that may not 7.2.1.1 Stakeholder Analysis post-closure land and infrastructure use even impact the current generation Stakeholder engagement tools are outlined in the IFC handbook of 2007.1 Stakeholder analysis is the initial ▪ Closure impact assessment of decision makers. This can make true collaboration on post-closure step in good stakeholder engagement. Potential ▪ Negotiation of retrenchment packages visioning difficult, but effective stakeholders are outlined in the next page. ▪ Closure Plan (closure plan updates) review leadership and coordination from the Identified stakeholders should be analyzed in terms ▪ Post-closure social and environmental monitoring government can help to alleviate this of the nature and level of impact the mine closure issue. may have on them, the level of influence they may Tools for Stakeholder Engagement have over the mine closure or the level of interest A closure planning working group should be they may have in the mine closure. The level is rated established with representatives of the key as low, medium or high. This process also aims to stakeholders to enable ongoing collaboration identify vulnerable groups (those groups that may be on closure planning throughout the mine’s life. particularly vulnerable to negative impacts of closure It is the responsibility of the mining company to or who lack the means to manage the negative constitute and manage the working group. Important impacts). The intensity of engagement with each stakeholders in the working group are local stakeholder should be commensurate with their level of impact, influence or interest. The higher the level government and community representatives. 1  Stakeholder Engagement: A good Practice Handbook for Companies Doing Business in Emerging Markets Socioeconomic Aspects of Closure 7 | 40 Table of Contents Stakeholder Group Key Issues Mining Company Responsible for preparing and implementing closure plan Responsible for cost of closure Employees and Families Social impacts as a result of job loss and support Suppliers Loss of direct revenue from mine, current and future capacity for non-mine business Local Businesses Loss of direct and/or indirect revenue Local/Regional Residents Loss of access to social programs and infrastructure supported by mine Impacts to vulnerable groups and minorities Local Government Reduced tax revenue Reduced contributions to development programs Impact monitoring National Government Environmental and technical closure issues Responsible for approval of closure plan Loss of revenues from mine – tax payments, tariffs, etc. Impacts to trade balance if mine is significant NGOs Means to maximize the positive impact of mine contributions prior to closure Socioeconomic Aspects of Closure 7 | 41 Table of Contents Example Stakeholder Engagement Platform Stakeholder engagement should be executed through a diversity of platforms including Teck Alaska operates the Red Dog mine in north western seminars and workshops with working groups, community meetings, focus groups Alaska. Although ore reserves will last through 2031 or (including separate groups with women and with vulnerable groups) individual longer, the operation developed a comprehensive closure interviews, teleconferences, local government led committees, road shows, open and reclamation plan that addresses the concerns of local houses, mail, or information sessions. An example of a stakeholder engagement communities. A closure planning team consisting of Teck platform is provided in the box on the right. Minority and disadvantaged subgroups are and [Native corporation] NANA employees, along with considered separately in community engagement programs as they both play a critical role in the social dynamics of any community. More vulnerable and least resilient [their] consultants, implemented a structured methodology community members may include women, children, elderly, the disabled, religious or that allowed a variety of stakeholder groups to have a ethnic minorities, and other less privileged groups in the community. balanced voice in the development of the plan. Initially, the team prepared a set of reports describing the technically Records of stakeholder engagement events should be kept (including attendance lists viable closure options. The options were presented at a and minutes of meetings) and attached to closure update reports. series of regional public meetings. The team also produced an Inupiaq-language DVD and provided it to all of the Closure Stakeholder Engagement Plan: Table of Contents homes in the nearby communities. The closure planning A table of contents for a closure stakeholder engagement plan should include the team facilitated two multi-stakeholder workshops that following: systematically reviewed the options and offered a pathway for stakeholder groups to provide clear feedback. Workshop ▪ Objective of the closure plan participants, over 100 in total, included representatives ▪ Stakeholder identification and analysis (including vulnerable groups) of the nearby communities, elder hunters from the region, ▪ Topics covered by engagement Teck and NANA staff, State of Alaska regulators, NGO’s, and ▪ Engagement methods and materials technical specialists. Participants were grouped according ▪ Stakeholder engagement program throughout the LOM to their primary interest, and each group was asked a series of questions that reflected their own perspective. Answers ▪ Recording of engagements were gathered from each group and compiled to show ▪ Human resources group preferences. Individuals were also polled and their ▪ Budget preferences compiled. The group and individual results showed clear preferences that became the basis of the closure 7.2.1.3 Government Role in Stakeholder Engagement and reclamation plan.1 Law There should be a legal requirement to prepare a closure plan that is subject to stakeholder engagement. Stakeholder engagement needs to occur with each closure plan update. 1  Hockley DE and Coulter G A. 2010. Many Voices, One Plan: Eliciting and Integrating Stakeholder Feedback. In Fourie AB, Tibbett M, and Wiertz J (Eds.), Proceedings of the Fifth International Conference on Mine Closure. Australian Centre for Geomechanics, Viña del Mar. Pages 167-180. Socioeconomic Aspects of Closure 7 | 42 Table of Contents Closing a Mine Site Should Support Post-closure Policy by an operational mine (i.e. direct and indirect employment, economic development, health services Activities A framework for minimum thresholds and suggested processes for stakeholder engagement in line with and mining social investment programs). Mine the above outlined process (Section 7.2.1). closure necessitates a socioeconomic transitioning At a minimum mining, companies of the host communities (and often the region) should close the mining site in Review from an operational mine context to a post-mining such a manner that post-closure Review of closure stakeholder engagement plans context. This section provides a proposed policy activities agreed upon can easily be should occur during development of the initial for post-closure visioning, land and infrastructure executed. Post-closure activities conceptual closure plan. repurposing, examples and lessons learned and repurposing can become the from repurposing projects across the world and ▪ A  re all stakeholders identified (including women provides guidelines for government with regards to responsibility of government, mining and vulnerable groups)? involvement in this aspect of closure. companies, host communities, the ▪  s stakeholder engagement planned at all relevant I private sector, or a combination of stages? Closure should include the development of a shared these. A partnership between various ▪  re all relevant topics included for discussion with A vision of a post-closure context by all stakeholders during mine exploration and construction, stakeholders is the preferred option. stakeholders? ▪ I  s an appropriate strategy for engaging which should contribute to the mine design and construction plan. This requires the creation of a stakeholders identified (including women and vulnerable groups)? post-closure vision for a post-closure sustainable ▪ I  s appropriate documentation of stakeholder economy and social fabric and the accompanying repurposing of mine affected land and infrastructure. engagement planned? To develop a sound vision of a post-closure context ▪ Are financial and human resources allocated? the following are required: Review of subsequent closure plans and stakeholder ▪ K  nowledge of the mining zone of influence, engagement records should include an analysis that, socioeconomic and environmental context and among other questions, asks: Is the stakeholder stakeholder relationships. engagement being executed according to the plan? and Is stakeholder input being integrated in ▪  nderstanding of governmental and/or donor U subsequent closure plan updates? funded local, regional and national development goals and plans. This may facilitate financing of 7.2.2 Post-closure Vision – Socioeconomic socioeconomic transitioning. Transitioning, Post-closure Land, and ▪  ialog among stakeholders on the best D Infrastructure Use post‑closure economic context, including The core social aspect of mine closure is mitigation assessment of local stakeholder capacity and of the loss of socioeconomic benefits provided skillsets. Socioeconomic Aspects of Closure 7 | 43 Table of Contents Green Energy and Mines ▪  nderstanding of local land ownership (and past U ▪ consistent with national and regional context, Because mining sites are often remote land conflicts) to ensure closure does not cause or re-open land ownership conflicts. ▪ appropriate for the natural and socioeconomic and must generate their own power, conditions, and renewable energy alternatives are ▪  ssessment of infrastructure and services which A ▪ compliant with the legal framework. becoming a more popular power may serve host communities post-closure and generation option for operating mines.* local capacity to maintain the infrastructure Detailed studies on repurposing are not readily Many of these projects could continue and services. This will require an understanding available. The examples available in the public to operate to provide power to local of users in the affected area, reliance on domain, in particular for former Soviet Union communities and/or provide economic power for economic activities, decision of local countries, are generally lacking1,2. The majority of development opportunities following population to out migrate, and other ways in examples are based in developed countries and have closure of the mine. Renewable which the community relies on the services and energy generation has also become large financial implications. Some examples available infrastructure of the mine. an opportunity for post-closure use in the public domain are provided in Appendix C. of portions of some operating and The vision should be translated into clear legacy mine sites.* In the United Lessons Learned socioeconomic objectives and indicators to measure States, this has included development the achievement of objectives (Section 4). Regular The Centre for Social Responsibility in Mining has of solar energy facilities on closed updates and refinements of the objectives should developed a global database of repurposing cases.1 tailings impoundments (Questa Mine, be developed throughout the mine life. Detailed and Their results are presented in Figure 6. New Mexico; Mission Mine, Arizona), SMART objectives (Section 4) should be finalized in micro‑hydroelectric plants to power the final closure plan. Some observations from the database include: long-term water treatment facilities Pre-closure agreements should be defined in ▪ O  verall, there are very few examples of (Summitville Mine, Colorado). Similar post‑closure green energy repurposing terms of responsibilities for post-closure land and repurposing relative to the number of closed opportunities are being considered infrastructure use. mines. Government websites occasionally have at several other mine sites,† including information about closed and abandoned mines, at the Kidston Mine in Queensland, 7.2.2.1 Post-closure Socioeconomic Context and but rarely include detailed information. Australia.‡ Repurposing of Land And Infrastructure ▪  here is no clear, extant framework for assessing T A post-closure socioeconomic vision and repurposing what constitutes a robust regulatory regime for will depend on the specific context of each mine, governing social aspects of closure. which will determine what types of repurposing are ▪  he most prevalent land categories in terms of T * Umar, A. 2019. Going Green: Renewable Energy Projects at Mines Around the World. December. ▪ economically practical, repurposing (in order of most to least prevalent include: community and culture (especially † Columbia Center on Sustainable Investment. The Renewable Power of the Mine: Accelerating Renewable Energy Integration. ▪ technically achievable and appropriate, repurposing infrastructure into cultural heritage December 2018. ‡ Kidston Pumped Storage Project. 1  Holcombe S and Keenan J. 2020. Mining as a Temporary Land Use Scoping Project: Transitions and Repurposing. Centre for Social Responsibility in Mining. University of Queensland, Australia). 2  Pearman G. 2009. 101 Things to Do with a Hole in the Ground. The Post Mining Alliance. Socioeconomic Aspects of Closure 7 | 44 Table of Contents purpose), conservation and eco-system services, Figure 6  Mines Across the World Where Repurposing Has Taken Place non-intensive recreation (public or botanical gardens, paths for walking, hiking, running, cycling and horse riding and ecotourism), education and research, construction, intensive recreation, lake or pool, agriculture, light industrial, alternative power generation, and forestry. ▪  hen a mine is repurposed, there is often more W than one land use ▪  he main funders of repurposing in terms of T prevalence are (most to least prevalent) mining companies, the state, public-private partnership and private companies I  n addition to the preceding list, external factors positively influencing repurposing include: ▪  roximity to communities and towns which may p have residents who champion repurposing and economic transitions ▪ good connectivity to existing infrastructure (roads, railways, energy networks) ▪ an ecological value of the mine location (in regional context) and its potential to add to eco‑system services ▪ economic viability, i.e., a balanced local supply and demand ▪ concurrent or progressive reclamation is more likely to lead to positive post-mining land-use transition ▪ well established mines with long-term engagement with local communities have more likely successful repurposing initiatives Applying basic land use viability principles to define potentially viable land uses can ensure that selected land use for mine repurposing are viable and Socioeconomic Aspects of Closure 7 | 45 Table of Contents sustainable.1 Engagement with key stakeholders on tourism (watersports in pit lake, nature park, the issue of post-closure land use and repurposing industrial tourism linked to mining infrastructure, should begin as early as possible in the mine life cycle, mining infrastructure repurposed for tourism but typically requires at least some environmental accommodation and tourism information centers) and socioeconomic baseline data be collected before ▪ ature conservation – creation of biosphere N beginning. The process begins with identification of reserve, protected area, nature trails potential future land uses followed by an analysis ▪ Energy – mining land repurposed as solar panel or of the requirements and constraints of each wind farms potential land use (Figure 7). Based on this analysis, ▪ Forestry – mining land repurposed for woodlots non-viable land uses can be eliminated and a final list of potentially viable land uses prepared for ▪ Agriculture – mining land repurposed for crop land, bee keeping, grazing land, intensive consultation with stakeholders. Clear documentation agriculture (greenhouses), dairy farms, and mining and open discussions regarding the rationale for infrastructure being repurposed for agricultural selection of the preliminary list of land uses are processing facilities critical to a collaborative process with stakeholders. Stakeholders may propose other potentially viable ▪ Aquaculture – pit lakes used for fish farming land uses as well as additional information including ▪ Water reservoir and hydroelectric dams – Pit lakes repurposed as water reservoirs community requests, local and regional development plan goals, and other information related to the local ▪ Small and medium enterprises – mining land and socioeconomic context. However, the final land use, infrastructure repurposed for the development of or uses, should be based on primarily on viability and small and medium enterprises sustainability, but consider stakeholder desires to the ▪ Clean energy – use of abandoned mines for solar extent possible. farms and wind turbines Repurposing Examples Often different areas of the mining lease are repurposed in different ways. Based on available literature and an assessment in Armenia, Georgia and Kyrgyzstan, the following 7.2.2.2 Government's Role in Post-Closure potentially feasible post-closure land and Visioning and Repurposing Land Use infrastructure repurposing options were identified: Law ▪ E ducation and culture – dismantled mine camp Require closure plan to identify post-closure vision buildings repurposed for educational and cultural and land use(s). Countries or regions may consider facilities land use plans with post-closure land use captured in ▪ Tourism – repurposing of mining areas for development plan. 1  Stewart WI, et al. 2013. A Rigorous, Systematic and Integrated Methodology to Assess Viable Land Use Options for Mine Closure: A Case Study from Suriname. Mine Closure 2013 – Tibbett M, Fourie AB, and Digby C (Eds). September. Socioeconomic Aspects of Closure 7 | 46 Table of Contents Figure 7  Land Use Approach Identify potential future Define risks and Characterize mine site Eliminate non-viable land uses and create preliminary list of land uses minimum site conditions with respect to minimum potentially viable future land uses for future potential land conditions and risks Examples: Engage stakeholder to solicit input on potentially viable uses ▪ Residential Examples: future land uses ▪ Small commercial Examples: ▪ Water quality Viable: ▪ Green Energy ▪ Foundation ▪ Market study ▪ ▪ Resort conditions ▪ Transportation ▪ Residential – market demand, proximity to highway ▪ Recreation – park ▪ Access to major ▪ Energy ▪ Small commercial – local market demand, ▪ roadways ▪ Soil (geotechnical) Green Energy – access to transmission lines, national ▪ Recreation – lake Dispersed agriculture ▪ Presence of power ▪ Soil (geochemical) ▪ electric demand, significant level areas Recreation – proximity to national park transmission facilities ▪ Intensive agriculture ▪ Proximity to ▪ Slope stability ▪ Forestry population centers ▪ Regional development Non-viable: ▪ Natural ▪ Market demand plans ▪ Recreation – lake, poor water quality, unstable slopes ▪ Topsoil conditions ▪ Dispersed agriculture – limited or no topsoil, acid sulfate ▪ Water quality soils ▪ Slope stability ▪ Intensive agriculture – limited market demand, limited or no topsoil ▪ Topography ▪ Forestry agriculture – limited or no topsoil, acid sulfate soils ▪ Natural – limited or no topsoil, acid sulfate soils, pit wall safety concerns, higher value for other uses Determine future land use(s) Socioeconomic Aspects of Closure 7 | 47 Table of Contents The Importance of Partnership Policy ▪ Has the repurposing been (re)considered? Provide clear guidelines on expected post-closure ▪ H  ave potential changes in vision and repurposing Based on a partnership that uses in line with national and regional land use been motivated? commences during the LOM, linked plans. Post-closure vision including repurposing of Review of final version of the closure plan to the mine social investment land and infrastructure and post-closure economic program, socioeconomic transitioning development needs to be conducted in line with ▪ H  as a final repurposing been identified? Is the and post-closure repurposing is best government policy (Section 7.2.2). method for identifying repurposing alternatives undertaken as a partnership between transparent? government, host communities, the Support opportunities for public-private partnerships. ▪  s the final repurposing plan informed by a I mining company and potentially pre‑closure impact assessment? development NGOs. Review ▪ Were key stakeholders consulted? Review of repurposing of land and infrastructure in closure plan ▪ A  re responsibilities for repurposing and socioeconomic transitioning in place? ▪ I  s there a post-closure vision and SMART ▪ A  re funds available for the repurposing and objectives? initiation of the transitioning? What is the source ▪ A  re there clear indicators to measure the of funding? Will it be sustainable? achievement of objectives? Participation ▪ I  s the vision and repurposing based on ▪  overnment to develop a forum to encourage G sound understanding of the affected area repurposing of land and infrastructure through (socioeconomic, environmental)? alignment with national, regional, and local ▪ H  as repurposing of land and infrastructure been development plans (stakeholder engagement) included and motivated? ▪  otential government responsibility for post- P ▪ H  ave national and regional development plans closure repurposing and economic transitioning, been considered for repurposing? as a sole actor or in partnership with other ▪ D  oes the repurposing consider the physical, stakeholders environmental, financial, economic, and legal ▪  overnment to communicate legal constraints G constraints? for repurposing to mining company (land tenure ▪  as the vision been developed jointly with key H and land management plans, access to natural stakeholders? resources, environmental protection, watershed ▪ Review of subsequent closure plans protection, health and safety standards, etc.) Socioeconomic Aspects of Closure 7 | 48 Table of Contents Public-Private Partnerships (PPP) and Special Purpose Vehicles (SPV) 7.2.3 Socioeconomic Transitioning transfer. Facilities may include clinics, training or Special Purpose Entities (SPE) and Repurposing Aligned with Social centers and accommodation and services Investment During the Life of Mine and may include transport, water, electricity and road maintenance. Sufficient lead time will be "The private party to most PPP contracts is a specific Executed as a Partnership project company formed for that purpose—often called necessary to provide government and other a Special Purpose Vehicle (SPV). This project company A closure policy should be developed that recipients the time to identify and allocate raises finance through a combination of equity— requires alignment of mining social investment budgets and other resources needed for the provided by the project company’s shareholders—and projects with socioeconomic transitioning. This debt provided by banks, or through bonds or other section covers the proposed policy and provides running and maintenance of facilities and/or financial instruments. The finance structure is the guidelines for government involvement in this services. combination of equity and debt, and contractual aspect of social closure. relationships between the equity holders and lenders."1 A trust fund may be established by the mining Effective socioeconomic transitioning requires company (not compulsory) for ongoing social An example of an SPV being used to fund and manage thorough preparation, which should start early development or infrastructure maintenance. In a project is the partnership between two mining in the LOM as part of the original visioning. such case a management body with capacity to companies and a municipality in South Africa. "To If repurposing includes agriculture, tourism improve waste water infrastructure needs, the manage this fund should be developed prior to Municipality of Rustenburg created the Rustenburg development, small and medium enterprises, closure to ensure it can be sustained and meet its Water Services Trust (RWST) to finance and upgrade fisheries, or other activities, these will require objectives. infrastructure. The Trust secured revenues from sufficient capacity and skills to execute the post- municipal bulk water sales and an off-take agreement closure economic activities. Training and capacity 7.2.3.1 Government's Role in Transitioning with two local mines. This revenue security, and the building are generally required to prepare host and Repurposing ring-fencing of the RWST as a special purpose vehicle communities for closure. This will need to occur (SPV), enabled commercial finance to be accessed in Law the form of a bank loan. The establishment of a Trust, during the LOM. with revenues ring-fenced from the municipality and Mining companies are required to produce strong operating arrangements, provided comfort The post-closure vision should form the basis and fund a social investment plan as part of the to the lenders and helped to soften lending terms. of the mine’s social investment process and Revenues provided by the two mines for the purchase licensing obligations and taking into consideration sustainable livelihood training should begin early of effluent created a strong revenue stream for the the goals of the closure plan. on in the LOM and intensify towards the end of Trust, and helped secure a commercial loan from ASSA mine life when post‑closure land use and activities bank. The public sector [including the Department of Policy have been finalized. Partnerships between various Water Affairs and Rustenburg Municipality) played a stakeholders should start during the LOM. Socioeconomic transitioning should be addressed key role to help structure a transaction that addressed critical water resource needs for the municipal area."2 in the closure plan. Planning for the transfer of facilities and services should be implemented during the operational Social investment plans should be aligned with period to support a sustainable socioeconomic transitioning. 1  World Bank, et al. 2014. Public-Private Parnterships Reference Guide. Ver. 2.0. 2  World Bank. 2016. Municipal Finance in the Municipality of Rustenburg ( South Africa). Case Studies in Blended Finance for Water and Sanitation. August. Socioeconomic Aspects of Closure 7 | 49 Table of Contents Review NGOs) with resources and capacity to takeover. Review of the social investment plan. Alternatively, a trust fund may be set up by the mine to provide community support post-closure. ▪ Is there a social investment plan? 7.2.4 Pre-closure Socioeconomic Baseline ▪ Is the plan consistent with the post-closure vision? and Impact Assessment ▪  oes the plan outline clear objectives and criteria D for success? To develop effective social transitioning and ▪ Does the plan include local capacity building? repurposing strategies, a pre-closure socioeconomic impact assessment and risk analysis should be ▪ D  oes the plan consider transfer of infrastructure conducted, based on current socioeconomic baseline and services? data. In most mining jurisdictions, social impact ▪ Is the plan adequately funded? assessments are generally required at the EIA phase; ▪ Is the plan executed by capable agents? however, host economies often change because of a large number of mining employees, mining social ▪ Is the social investment plan regularly updated? investment activities and improved communication and infrastructure networks. These processes have Regular monitoring of the results of the social a major effect on the socioeconomic character of investment program. mining areas and regions. Participation Ideally, closure socioeconomic impacts should be Government may partner with the mining company in included in the premining EIA and the pre-closure capacity building programs during the LOM. socioeconomic baseline and impact assessment should be an update of the EIA. A pre-closure social Local government may need to build its capacity to baseline should include the following: manage transferred infrastructure and services. ▪ National context When a mine contributes to social services, facilities, ▪ Regional context or infrastructure during part of its life, agreements should be made with the government prior to closure ▪ Local context to ensure these can be sustained without the mine ▪ Governing system except where they are purposely discontinued. ▪ D  emographics (community cohesion in and out Where local government resources or capacity are migration) unlikely to sustain a project, service, or facility, it ▪  ivelihood strategies e.g. fishing, agriculture L may be advisable to seek alternative organizations (crops or grazing), tourism, business, industry, and that can provide this. These may include dedicated employment development organizations (i.e. donors and ▪ Land use and land tenure (land use demand) Socioeconomic Aspects of Closure 7 | 50 Table of Contents ▪ Ecosystem services (natural resources use ) Impacts should be rated in terms of severity and ▪ Public Infrastructure and services disaggregated in terms of different receptors (i.e. ▪ Housing gender, vulnerable groups, livelihood groups (local business, farmers, etc.). ▪ Health ▪ Education and training Identified post-closure land and infrastructure use, ▪  ocial, traditional, economic and political S socioeconomic transitioning plans and retrenchment developed as part of the initial closure plan and its networks, institutions and processes updates should be informed and where necessary ▪ H  uman rights issues and mechanisms to deal with adapted based on the results of the impact assessment. human rights issues ▪ Vulnerable groups The pre-closure socioeconomic impact assessment ▪ Security and crime should be conducted five years prior to closure, to inform the final closure plan.1 ▪ Gender ▪ Development needs 7.2.4.1 Government's Role in Pre-closure ▪ Trends and changes over the LOM Socioeconomic Baseline and Impact Assessment Law An impact and risk assessment should be conducted with core stakeholders, including local government The final version of the closure plan should and host communities and any active local NGO and incorporate the results of a pre-closure private sector stakeholders. The impact assessment socioeconomic impact assessment should, as a minimum, include impacts on the Policy following: A pre-closure socioeconomic impact assessment ▪ Demography (including migrations) should be conducted in line with policy outlined in ▪ Standard of living this section (Section 7.2.4). ▪ Health Review ▪ Livelihood activities, economy, and employment The pre-closure social impact assessment review ▪ Social cohesion should consider the following: ▪ Feeling of wellbeing ▪ H  as the social impact assessment been conducted ▪ Land use in line with the policy? ▪ Infrastructure and services ▪ I  s the baseline current and comprehensive, and does it focus on local conditions? 1  IAIA. 2015. Guidance for Assessing and Managing Social Aspects of Projects. A useful guide for conducting social impact assessments. Socioeconomic Aspects of Closure 7 | 51 Table of Contents Post-closure Social Monitoring ▪  s the impact assessment transparent and based I Retrenchment plans should include.1 on an accepted methodology? ▪ The timescale (reasonable notice is required) ▪ Has the baseline and impact assessment been ▪ W  ho will be consulted (should include direct A social monitoring should be conducted by a qualified agency? conducted by experts 1, 5, and 10 ▪ Have stakeholders been involved in the impact employees and those employed through labor brokers), workers representatives/trade unions? years post closure. assessment? ▪ Are the mitigation actions proposed consistent ▪ How alternative jobs will be sought The pre-closure social baseline with the socioeconomic transitioning plan and the ▪  ow severance pay will be calculated (informed H should provide the key indicators retrenchment plan? by government regulations) for the post-closure monitoring of ▪ Is the final closure plan informed by the social ▪ W  hat measures are in place to assist those losing the standard of living of the host impact assessment? population. Key indicators should their jobs to seek new work / retrain include health, education, income, Participation ▪  ow broader community impact issues are to be H access to facilities and services. Government should participate in an impact addressed The monitoring should involve a assessment workshop with other stakeholders. ▪ A  nticipated impacts on retrenched workers and household survey of a sample of host communities households and focus groups in the 7.2.5 Retrenchment ▪  rospects for retrenched workers (market P host community. The results of the Requirements for retrenchment may be addressed demand for their skills and alternative sources of monitoring survey should be shared under other than mining laws, such as labor laws. income/employment with the host communities. In some jurisdictions, where such requirements are absent, a good practice closure policy should include ▪ V  oluntary training programs, career counselling, assistance to set up micro-enterprises, financial the requirement for a fair retrenchment package as counselling, re-employment programs part of a socioeconomic transitioning plan. ▪  onitoring of the retrenchment process M These plans should be informed by: (documentation of how the retrenchment process ▪ A  nticipated impacts on retrenched workers and is executed) communities Retrenchment measures need to acknowledge ▪ Eligibility of retrenched workers for that there are different groups amongst those to unemployment or other benefits be retrenched, based on criteria such as age, life ▪ Prospects for retrenched workers (market stage, gender and family situation. Therefore, early demand for their skills and alternative sources of pension may be appropriate for one group, reskilling income/employment or assistance with reemployment for another group, ▪ The overall socioeconomic transitioning vision while assistance with alternative family livelihood 1  European Bank for Reconstruction and Development. 2010. EBRD Retrenchment Guidance. April. Socioeconomic Aspects of Closure 7 | 52 Table of Contents activities may benefit another group. It is equally ▪ Is the package informed by an impact assessment? important to link retrenchment assistance to local economic development. Support for with local ▪  oes the package include voluntary reskilling and D assistance with reemployment? economic development projects, which can provide alternative employment, should be considered as part ▪ Is there a time scale identified? of retrenchment. ▪  oes the package include assistance with D reemployment? Retrenchment packages should to be negotiated between the mine labor force (including trade unions) ▪  re local small suppliers and main subcontractor A and the operator well in advance of closure and in line employees included I the retrenchment program? with national regulations. ▪  as the retrenchment been discussed with H Small-scale, local suppliers to the mining company affected people? which majorly relies upon should be given the ▪ Is there a monitoring plan included? opportunity to join in the reskilling program and the mining company should be encouraged to assist these ▪ Is there an adequate budget for retrenchment? suppliers in developing other market opportunities. 7.2.6 Post-closure Monitoring of Social 7.2.5.1 Government's Role in Retrenchment Aspects of Closure Law A good practice closure policy should include a requirement for a post-closure social monitoring Closure plan should identify any retrenchment plan. This should be informed by: agreements. Policy ▪  losure objectives identified in the closure plan C and indicators for success A retrenchment package should be prepared in line with government policy (as described in this section) ▪ The pre-closure baseline and impact assessment and any applicable laws and described in the final The monitoring plan should be agreed by all version of the closure plan. stakeholders.1 Both the former workforce and communities transitioning to a post-closure economy Review (Retrenchement Package) should be included in the monitoring plan. ▪  s the severance payment spelled out (and how I was it calculated)?  ecommended indicators (not exhaustive and R ▪  oes the package align with all applicable D adapted to specific conditions) for monitoring include the following2. government regulations? 1  Evering JA. Mackenzie S, and Svobodova K. 2020. Participatory Processes, Mine Closure and Social Transitions. Centre for Social Responsibility in Mining, University of Queensland. 2  ICMM. Integrated Mine Closure: Good Practice Guide, 2nd Edition. 2019. Socioeconomic Aspects of Closure 7 | 53 Table of Contents ▪  ost-closure earnings by individual/household P 7.2.6.1 Government's Role in Post-closure compared to pre-operation, during operations Monitoring of Social Aspects of Closure ▪ P  roportion of households in affected communities Law generating alternative incomes Post-closure social monitoring should be required as a ▪ Proportion of businesses operating post-closure commitment in the closure plan. It may be included as ▪ Former employee and supplier rates part of a comprehensive post-closure monitoring plan. ▪ Proportion of new businesses Policy ▪  roportion of lost land restored to a productive P Post-closure social monitoring should be executed in line capacity with policy as outlined in this section. ▪ Changes in yield or productivity of crops Review ▪  roportion of social investment programs continuing P Review of the post-closure social monitoring plan. post-closure ▪ Social investment program performance ▪ I  s the post-closure monitoring plan informed by closure objectives? ▪ Local migration trend ▪ Are the indicators based on the pre-closure baseline? ▪ P  roductivity measures for hunting, fishing, and ▪ Are the indicators SMART? traditional food/medicine plant sources ▪ Are financial and human resources allocated to the monitoring? Methods for monitoring and evaluation can include stakeholder perception surveys, household surveys, ▪ Has the duration of the monitoring period been set out and motivated? community consultation meetings, and analysis of trends ▪ Has the monitoring plan been discussed with all in community grievances. stakeholders? Socioeconomic monitoring may be carried out by: ▪ Are both ex-employees and the wider host communities involved in the monitoring ▪ The mining company ▪ Are appropriate methods used for the monitoring? ▪  overnment, which can help to ensure a monitoring G ▪ Is the duration of monitoring period appropriate? program is consistent with development plans and Review of the regular monitoring: that monitoring results are considered in future planning decisions ▪ Is the monitoring executed in line with the plan? ▪ N  GOs (active in local area often have existing ▪ Are remedial measures taken where the monitoring reveals potential problems? relationships with local communities; understand local socioeconomic issues, needs and capacity; and Participation may have ongoing community development programs Government agencies may be involved in executing the to meet company’s social investment and social monitoring, or certain aspects of the monitoring (to be agreed through stakeholder engagement). Figure 8 transition objectives and programs) provides a summary of the responsibilities and costing in ▪ Community members post-closure socioeconomic activities. Socioeconomic Aspects of Closure 7 | 54 Table of Contents Figure 8  Responsibilities and Costing for Post-Closure Socioeconomic Mitigation Socioeconomic Aspects of Closure 7 | 55 Table of Contents 8 8 Technical Requirements of Closure Good practice guidelines on closure are continuously evolving. The most comprehensive and recent guidelines are contained in the ICMM1 and APEC.2 One of critical component of closure policy is the technical content of a closure plan. Based on the guidelines, the minimum technical aspects of closure that should be addressed in any closure governance framework are physical stability, chemical stability, post-mining land use, biodiversity, and contaminated media. Of these, the first two are included as critical requirements in all closure governance frameworks meeting GIIP, because these two aspects present the greatest risks to human health and the environment as well as posing the highest financial risks to a government. Because the site-specific context of each site is different and approaches in the different technical guides vary, it is best for closure legislation and policies to permit the use of multiple options and allow operators to propose other standards, if appropriate. Evaluating the range of options available and assessing the adequacy of the technical measures selected by the proponent, requires considerable professional knowledge and judgement.2 Institutional capacity assessment to review and accept mine closure plans is provided in Section 7.1. 1  ICMM. Integrated Mine Closure: Good Practice Guide, 2nd Edition. 2019. 2  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Technical Requirements of Closure 8 | 56 Table of Contents The Acid Rock Drainage Process - The Global Acid The overarching closure policy can be defined, but not landforms that remain on-site following mine closure, limited to: “Return the mine site and affected areas the physical and geotechnical stability of these Rock Drainage (GARD) to viable and, wherever practicable, self-sustaining landforms must be preserved. Guide ecosystems that are compatible with a healthy environment and with human activities.” According to Designs need to be sufficiently robust to withstand potentially detrimental processes that relate to The primary process responsible for ICMM this may include goals for biodiversity and for generation of ARD, NMD, or SD of concern is a self-sustaining ecosystem that will be viable in the physical stability such as weathering of sulphide minerals, in particular, long term without ongoing mining company support, and compatible with the proposed land use.1 ▪ e  rosion (e.g. wind, water, and waves) during pyrite. In some cases, the generation of ARD, NMD, or SD may also be due to oxidation of extreme climatic events elemental sulphur. Weathering, or oxidation, Much of the following information is sourced from ▪  rocesses that relate to geotechnical stability p of pyrite occurs naturally when exposed international guidelines. In this GIIP is elaborated to such as slope instability (i.e. related to high pore to atmospheric conditions, either through provide guidelines for design considerations, post- pressures or seismic loading) and settlement geologic processes or anthropogenic activities that involve removal of material (e.g., mining, closure monitoring and recommendations are made Because the design of many of these types of highway construction). for the role of government in terms of regulation and policy development, mining practice review and structures are based on stability during the Mining and other forms of earth moving, active participation in closure planning and execution. operational life of the mine, design criteria used such however, greatly accelerate the weathering as design storm or seismic events—while suitable for of reactive sulphides because they the operational period—may not be suitable as long- create conditions that tend to facilitate 8.1 Physical Stability term, post-closure designs. movement of air and water, expose large volumes of material, increase the surface There is considerable technical guidance available area of the reactive component, and on the design and operation of tailings dams, and 8.2 Chemical Stability create the opportunity for colonization by accepted industry guidelines should be used, such as microorganisms that catalyze the oxidation the documents produced by the Mining Association Mines typically have several potential sources processes in the presence of acidity. As a of Canadian MAC)1 or the International Committee of geochemical risks primarily associated with consequence, the potential environmental mine and processing wastes and voids (i.e. pits consequences of human activities can be on Large Dams.2 and underground workings). These risks may be significantly more noticeable than those resulting from natural processes Waste rock facilities should be designed and associated with naturally occurring geochemical constructed with closure in mind because it may be conditions such as ARD/ML, naturally occurring The sources of ARD include the mine and difficult or impossible to augment the stability of a geochemical conditions that have enhanced by process wastes and mine and process facilities waste rock facility after placement. To limit long- mining (e.g. increased exposure of potentially ARD/ that contain reactive sulphide and potentially term risks from structural failures and maintain the ML materials), or residual effects from processing neutralizing minerals involved in mitigation of effectiveness of the selected closure activities for mineralized ore. acidity. 1  Mining Association of Canada. A Guide to the Management of Tailings Facilities, Version 3.1. 2019. 2  International Commission on Large Dams. Technical Requirements of Closure 8 | 57 Table of Contents The ARD/ML potential of pit walls, tailings, 8.3 Contaminated Soils and Guidelines for Contaminated Land provides a overburden material, and other mine-related summary of management approaches for land materials such as paste backfill should be considered Water Sources contamination due to anthropogenic releases and evaluated in detail in closure plans. of hazardous materials, wastes, or oil, including Fuel, chemicals, tailings, ore-associated metals, naturally occurring substances.2 According to ICMM all mine waste materials should and other substances can contaminate soils be geochemically characterized to predict if ARD/ and groundwater through accident or failure of ML will be generated. The Global Acid Rock Drainage management systems. Contaminated groundwater 8.4 Biodiversity (GARD) Guide1 provides a comprehensive and refers to all water below the ground surface that these substances have contaminated. Biodiversity is one of the International Finance authoritative resource in making such predictions. Corporation Performance Standards – PS 6 The GARD Guide provides additional discussion of Process facility decommissioning and removal “Biodiversity Conservation and Sustainable common treatment technologies for mine water. of infrastructure activities also generate wastes Management of Living Natural Resources3.” In The geochemical assessment of ARD/ML potential including contaminated soils, hazardous materials, the PS6 it is states that protecting and conserving can be complex and involve some long-term tests and liquid wastes. Generally, these are removed from biodiversity, maintaining ecosystem services, and taking months or years to complete. Therefore, the site to a licensed disposal facility or in some cases sustainably managing living natural resources are understanding the potential of ARD/ML in the early treated or permanently stored on site. fundamental to sustainable development. Mining stages of mine planning and design (and continuing operations adversely impact habitats and have a Removal can be considered but options for licensed potential for temporary or permanent alteration of to enhance this understanding during the life of the (trusted and reliable) disposal facility not always terrestrial and aquatic habitats. mining operation) will ultimately improve the design available in remote sites. of the closure options. Although there are many guidelines and academic In situ methods for contaminated land treatment papers focusing for managing impacts on ecosystems, Residual water from mineral processing (e.g. tailings involve methods of immobilizing, stabilizing, washing, closure planning is primarily about identifying and supernatant solutions or heap leach drainage) may transforming or separating contaminants in the soil. implementing opportunities for rehabilitation and contain process solutions and elevated constituents The success of selected method and feasibility of in- conservation enhancement. In mine closure planning due to the processing methods. Management of situ treatment required further studies at each site. post-closure vision will determine consideration such solutions until the drainage and/or metal Furthermore, in line with success criteria for closure, towards replacement of habitat that is beneficial for concentrations decrease to acceptable levels must be regulators will also need assurances that the level of future ecological use. considered in a closure plan. clean-up taking place is defensibly measurable, so a post-closure monitoring plan will be provided and approved. IFC’s Environmental, Health, and Safety (EHS) 1  http://www.gardguide.com/index.php?title=Main_Page 2  International Finance Corporation. 2007. Environmental, Health, and Safety (EHS) Guidelines - General EHS Guidelines: Environmental- Contaminated Land. 3  International Finance Corporation. 2012. Performance Standard 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources, Technical Requirements of Closure 8 | 58 Table of Contents ICMM developed The Good Practice Guidance for ▪  esign landforms such as covered tailings and D Mining and Biodiversity1 for mining professionals waste rock, to maintain long-term stability. to improve biodiversity management throughout the mine cycle and to support relationships ▪ D  esign landforms to blend in with surrounding between mining and biodiversity professionals landscape features. by promoting enhanced mutual understanding. ▪ I  mplementation of construction controls such Chapter 4 of the Guidance provides overview for as surveys, material quality control, compaction Integrating Biodiversity into Closure Planning and control, and instrumentation monitoring. Implementation. Closure planning presents an opportunity for restoration of biodiversity affected ▪  evelopment of design criteria for dams, D during the exploration and operational phases, at spillways, and cover systems that consider post- least to some extent. It should consider the findings closure scenarios. of baseline and ongoing biodiversity surveys and monitoring. An important focus of closure 8.5.1.2 Post-closure Monitoring planning should be the long-term sustainability of The purpose of post-closure monitoring for physical conservation, mitigation and rehabilitation measures and geotechnical stability is to ensure that remaining and any related monitoring requirements. landforms remain safe for humans and wildlife and are compatible with future use. Monitoring activities 8.5 Legislation and Policy may include the following: Much of the following information is sourced from ▪  aintaining a consistent monitoring record from M international guidelines. In this GIIP, including the a constant point of observation from construction workflow on the next three pages, is elaborated through to post-closure. to provide guidelines for design considerations, ▪  nspecting landforms to ensure no ongoing I post‑closure monitoring and recommendations deformations exist that could lead to instability or are made for the role of government in terms of unsafe conditions or that could compromise the regulation and policy development, mining practice effectiveness of selected closure activities or the review and active participation in closure planning post-closure use of the site. and execution. ▪  mploying remote sensing techniques to assess E large-scale deformations of individual project 8.5.1 Physical Stability components being reclaimed (e.g. settlement of 8.5.1.1 Design Considerations tailings disposal area). Following design considerations for physical stability The minimum length of time required for pos‑closure should be included: monitoring of structures is typically included in 1  ICMM. 2006. Good Practice Guidance for Mining and Biodiversity. Technical Requirements of Closure 8 | 59 Table of Contents Phase ► Pre-operational Physical stability Geochemical Stability Contaminated Soils and Water Resources Biodiversity Technical Considerations Baseline studies Environmental Impact Assessment (EIA) Development of post-closure vision and objectives. Initial environmental impact assessment including impacts from closure Design mining components (open pit, tailing and waste rock management facilities for closure include closure considerations Law Policy Review Input Require EIA to address all phases of All mine sites require baseline studies Environmental Impact Assessment Post-closure vision the mine life cycle including closure and to document pre-mining condition of Environmental management plan Approve closure objectives and criteria post-closure, including baseline studies environmental and EIA characterizing physical and geochemical Mine design and/or mining plan Return the mine site and affected areas context, and existing biodiversity and to viable and, wherever practicable, Closure plan vegetation. self-sustaining ecosystems that are Role of Government Require closure plan prior to any compatible with a healthy environment construction and mining operations. and with human activities Require site-specific closure plan and Closure planning should be risk-based, establish measures to ensure physical taking into account results of materials and chemical stability after closure characterization, data on the local environmental and climatic conditions, and consideration of potential impacts through contaminant pathways (including but not limited to site activities or infrastructure) and environmental receptors. Technical Requirements of Closure 8 | 60 Table of Contents Phase ► Life of Mine ► Pre-Closure Physical Stability Geochemical Stability Contaminated Soils and Water Resources Biodiversity Technical Considerations Regular update of closure plan Impact and risk assessment of closure plan and closure actions Environmental monitoring Final closure design Geotechnical stability assessment Reclamation testing Progressive reclamation Law reclamation where technically possible Law Review Require update of closure plan (this could be included in the law) Develop final closure design (2 years Closure impact assessment Require a monitoring plan that includes prior to closure) Final closure design post-closure: Review Prepare closure impact assessment, if Regular environmental monitoring Environmental management plan and not fully addressed in pre-operational reports monitoring reports EIA Role of Government Regular ecological monitoring Ecological monitoring reports reports Geotechnical stability audit/inspection Policy Geotechnical stability assessment Reports on completed activities for Return the mine site and affected areas progressive reclamation to viable and, wherever practicable, self-sustaining ecosystems that are Policy Updates of closure plan compatible with a healthy environment Return the mine site and affected areas and with human activities to viable and, wherever practicable, Input self-sustaining ecosystems that are compatible with a healthy environment Update closure objectives and criteria and with human activities Monitoring of reclaimed sites Requirement to consider progressive Technical Requirements of Closure 8 | 61 Table of Contents Phase ► Closure ► Post-Closure Physical stability Geochemical Stability Contaminated Soils and Water Resources Biodiversity Technical Considerations Implementation of closure activities Monitoring and maintenance Monitoring Relinquishment Law Review Law Review Closure activities will be implemented Periodic check of implementation of Monitoring is carried out to validate Monitoring plan based on mine closure design and closure design model predictions and determine if Relinquishment schedule success criteria have been achieved Input The minimum length of time required for post-closure monitoring Input Policy Participation in monitoring Participation in monitoring Role of Government Return the mine site and affected Land is not returned until success areas to viable and, wherever criteria is reached Relinquishment – acceptance of practicable, self- sustaining land after closure success criteria is ecosystems that are compatible with a reached Policy healthy environment and with human activities Return the mine site and affected areas to viable and, wherever practicable, self- sustaining ecosystems that are compatible with a healthy environment and with human activities Post-closure monitoring is site-specific and based on risk assessment Technical Requirements of Closure 8 | 62 Table of Contents the legislative component of a framework, but Review governments should reserve the right to extend that Mine design/mining plan period based on project-specific considerations. ▪  esign the tailings facility for closure and include D  ased on the selected closure criteria monitoring B closure considerations in the selection of tailings includes following methods: visual inspection to management options. identify signs of instability and erosion; survey ▪ E  nsure that all common failure modes for physical to supplement visual inspections and evaluate stability are considered in evaluating the long- settlement or quantify other types of movement term design of the dam: overtopping, slope of the ground surface; use of geotechnical instability, seismic effects, tailings liquefaction, instrumentation used to quantify ground movement; wave erosion, runoff erosion, wind erosion. soil analysis to check evaluate if soil contamination is ▪  valuate consequences of future dam failure. E present; remote sensing to collect information. Where consequences are high, ensure best design and operation practices are in place: qualified 8.5.1.3 Government Role review boards and engineers of record; operation, maintenances and surveillance plans; emergency Law preparedness plans. Any project component that remains after closure ▪  n seismic regions, design should consider long I should be constructed or modified at closure to be return period earthquakes and effects of rock physically stable, ensuring it does not erode, subside, weathering. or move from its intended location under natural ▪ C  onsider closure needs and desired final landform extreme events or disruptive forces to which it may at the time of waste placement. be subjected. Closure and reclamation will not be Review of closure plan successful in the long-term (e.g., 1000 years) unless all physical structures are designed such that they do ▪  losure objectives should be defined for each C not pose a hazard to humans, wildlife, aquatic life, or facility. environmental health and safety. ▪  esign criteria are measurable and are generally D more stringent for closure condition than Policy operations due to the long time period. Return the mine site and affected areas to viable and, wherever practicable, self- sustaining ecosystems Relinquishment that are compatible with a healthy environment and ▪ E  valuate implemented closure actions against with human activities. closure goal and success criteria Technical Requirements of Closure 8 | 63 Table of Contents 8.5.2 Geochemical Stability ▪  nspect the physical and geotechnical stability of I the mine site to ensure that no erosion, slumping, 8.5.2.1 Design Considerations or subsidence will occur that would cause Following needs to be consider the following during exposure of deleterious materials to atmospheric development and operational stages of the project conditions (water, oxygen). to minimize post-closure efforts with respect to the control and treatment of ARD/ML: ▪ I  nspect any preventative and control measures (e.g. cover systems) to ensure they operate ▪  esign of physical control measures (if used) to D according to their design specifications mitigate a geochemical risk not just managing ▪ C  onfirm there is enough water supplied to impact (i.e. prevent chemical reaction from maintain an appropriate water depth in designed occurring versus collecting any runoff) water covers ▪ I  dentification of a comprehensive set of ▪ C  ompare predicted water quality and measured geochemical analyses that characterize the water quality mine- and process-waste materials and then ▪ E  valuate existing monitoring locations and determination of their potential for long-term frequency on a site-by-site basis and adjust where chemical risks necessary ▪ Static and kinetic ARD/ML prediction testing (e.g. acid-base accounting, laboratory tests with T  he last point above may involve creating new humidity cells and columns, and field tests with monitoring locations where possible contaminated bins and piles) along with field testing and monitor drainage is generated or removing existing site seepages from mine wastewater monitoring stations where drainage can be integrated into the water management system or released into ▪ E  valuation of the use of cover systems, diversion the environment) ditches, and berms to minimize exposure to surface water (infiltrations and runoff) and The minimum length of time required for post- atmospheric oxygen closure monitoring of structures is typically included in the legislative component of a framework, but 8.5.2.2 Post-closure Monitoring governments should reserve the right to extend that Post-closure monitoring with respect to geochemical period based on project-specific considerations. In stability should be required to ensure the potential some cases, the post-closure characteristics of the for geochemical impacts are minimized or mitigated. site may require permanent or very long periods of Monitoring should also confirm requirements for ongoing monitoring. This is often the case for closure long-term maintenance. Specific activities may configurations that include large water-retaining include the following: dams, or active treatment of ARD/ML.1 1  ICMM. 2019. Integrated Mine Closure: Good Practice Guide, 2nd Edition. Technical Requirements of Closure 8 | 64 Table of Contents 8.5.2.3 Government Role Review of closure plan Law ▪  eview and approve mine closure objectives and R Any project component (including associated wastes) success that remains after closure should be chemically stable; chemical constituents released from the Post-closure monitoring project components should not endanger human, wildlife, or environmental health and safety should ▪ Monitoring program not result in the inability to achieve the water quality ▪ Monitoring schedule objectives, and should not adversely affect soil or air Relinquishment quality in the long term Policy ▪  valuate implemented closure actions against E closure goal and success criteria Return the mine site and affected areas to viable and, wherever practicable, self- sustaining ecosystems 8.5.3 Contaminated Soils and Water that are compatible with a healthy environment and Resources with human activities 8.5.3.1 Design Considerations Review The following should be considered by project Mine design/mining plan proponents and checked for by governmental bodies in the mine design stage to minimize post-closure ▪ P  lan development for mine waste management reclamation efforts and impacts with respect to including impact mitigation, material contaminated soils and groundwater: characterization, material handling, waste disposal, site closure, site water management, ▪ Consider environmental practices/operating monitoring, and maintenance procedures that eliminate or reduce the use of ▪ O  ptimization of mining and mineral processing to harmful substances or require materials less detrimental to the environment. minimize the impacts on the environment ▪ Assessment of methods that can be used to ▪ ontain potentially environmentally harmful C products (such as fuel and other chemicals) in prevent ARD/ML at the site including (a) limiting properly designed (lined) facilities to limit the exposure to oxygen (e.g. water covers, dry covers, environmental impacts should an uncontrolled water saturation), (b) performing chemical or release occur. physical intervention (e.g. blending, covers, additives), (c) isolating acid generating materials, ▪ C onsider diverting surface water flow (using and (d) dry stacking filtered tailings or storing ditches, swales, or berms) around active storage paste tailings on the surface to minimize potential facilities and/or impacted zones to reduce future migration of contaminants from the area infiltration, groundwater contamination, and contaminant mobilization. Technical Requirements of Closure 8 | 65 Table of Contents ▪ C onstruct land farm or soil treatment pad/ Policy facilities in an appropriate location. Return the mine site and affected areas to viable and, ▪ I dentify optional treatment and remediation wherever practicable, self-sustaining ecosystems that technologies (destruction, immobilization, are compatible with a healthy environment and with separation). human activities ▪ onsider dusting, and its control, during the design C Review of any tailings storage facility. Mine design/mining plan/environmental management 8.5.3.2 Post-Closure Monitoring plan The purpose of post-closure monitoring of contaminated soil and groundwater remediation ▪ Environmental practices/operating procedures that eliminate or reduce the use of harmful areas is to ensure successful remediation such that substances or require materials less detrimental to the area is not a significant source of contamination the environment. and is compatible with future uses. Because removal of sources is often the best approach, post-closure Review of closure plan monitoring is not typically required for sources that have been removed as part of closure activities. ▪ Review and approve closure objectives and success Monitoring activities may include the following: Post-closure monitoring ▪ Collect enough confirmation samples to ensure ▪ Monitoring program the complete removal of impacted soils or the successful treatment of impacted groundwater ▪ Monitoring schedule ▪ U ndertake periodic monitoring where complete Relinquishment contaminant removal is not possible ▪ A nalyze trends in monitoring data often to assess ▪ Evaluate implemented closure actions against the effectiveness of selected closure activities closure goal and success criteria ▪ isually monitor the physical stability of V 8.5.4 Biodiversity contaminated soil excavation or containment sites. 8.5.4.1 Design Considerations 8.5.3.3 Government Role Following design considerations for biodiversity Law should be included: Contaminated soils and water resources should be ▪  etermine baseline ecological conditions prior to D treated to reach closure criteria disturbance Technical Requirements of Closure 8 | 66 Table of Contents ▪ B  ased on the pre-mining biodiversity values,  ost-closure Monitoring 8.5.4.2 P closure planning will need to consider whether Post-closure ecological monitoring can be organized these can realistically be replaced, using into the monitoring of terrestrial and aquatic flora recognized good practice rehabilitation methods and fauna. with adaptive management ▪ C  onduct local soil assessments to determine Terrestrial Flora whether organic supplements should be used ▪ I  nspect revegetated areas periodically following (e.g., peat, biosolids) if enhanced revegetation initial planting until vegetation is successfully measures may be required. established and self-sustaining in accordance with ▪ I  nclude native plant collection and propagation closure criteria. methods, successional processes, and final plant ▪ C  onduct soil analyses for nutrients and pH until communities that provide biodiversity and the vegetation is successfully established and self- sustainability to reclaimed sites in the research sustaining in accordance with the agreed criteria. plan. ▪  onitor metals uptake in vegetation and conduct M ▪ C  onsider bioengineering (use of living organisms risk assessments, if needed, to determine if uptake or other biological systems for environmental poses unacceptable risk to human, wildlife, and management) approaches to stabilize soils, control environmental health. erosion, and enhance natural re-vegetation. ▪  onitor areas where growth of vegetation may be M ▪  trip, stockpile, and properly cover organic and S impacting the subsurface thermal regime. fine-grained soils from disturbed areas (such as open pits, waste rock piles, infrastructure, and ▪ M  onitor growth rates and succession of vegetation species. tailings facility footprints) ▪  ecord volumes of soil salvaged for later R ▪ M  onitor expansion of growth areas outside planted zones and determine if the impacts are consideration in closure and reclamation planning. beneficial or detrimental to performance of ▪ C  onsider revegetation of waste rock piles through selected closure activities. slope stabilization and enhancement with finer grained materials. ▪ M  onitor for propagation of non-native or undesirable species. ▪  echnical limitations due to significant changes T ▪ I  nspect vegetated areas that may be obscuring to soil characteristics, microclimate, topography, possible cracks and other problems on dams and and hydrology needs to be considered in the embankments. restoration of vegetation. Technical Requirements of Closure 8 | 67 Table of Contents ▪ I  nspect root systems of vegetation that are 8.5.4.3 Government Role colonizing the surface of cover systems to Law observe if they are contained within the growth medium (e.g., soil, rock fill) and are not penetrating Require biodiversity impact mitigation throughout underlying cover materials. LOM, closure and post-closure ▪ C  onsider appropriate maintenance (brushing) Policy options if vegetation encroachment (deep rooting Return the mine site and affected areas to viable and, species) results in disruption of cover materials. wherever practicable, self-sustaining ecosystems that ▪ I  dentify excessive vegetation stress or poorly are compatible with a healthy environment, post- established areas and implement contingency mining land use(s) and with human activities measures if required ▪ W  here necessary, re-plant and add amendments Review to ensure long-term revegetation success. Mine design/mining plan ▪ D  epending on the extent of the revegetation ▪  alvage, stockpile, and properly cover organic S effort, consider passive monitoring approaches and fine-grained soils from disturbed areas (such including aerial surveillance and remote sensing. as open pits, waste rock piles, infrastructure, and Terrestrial Fauna and Avifauna: tailings facility footprints) ▪  valuating the abundance and diversity of species E ▪  ecord volumes of soil stripping for later R in a given area. consideration in closure and reclamation planning ▪  onitor wildlife use of revegetated areas to M ▪ Review of closure plan determine if viable wildlife habitat has been ▪ Closure objectives should be defined. created. ▪  esign criteria are measurable and are in line with D accepted post-closure land use. Aquatic Flora: ▪ Flora species survey Relinquishment ▪ C  haracterization of the different types of species ▪  valuate implemented closure actions against E in a given area closure goal and success criteria Aquatic Fauna: ▪ Surveys of amphibian and reptile communities ▪ Survey of fishes Technical Requirements of Closure 8 | 68 Table of Contents 9 9 Closure Risk Assessments All international guidelines and mature closure governance frameworks promote risk-based closure plans and design. Therefore, governance frameworks should encourage operators to design closure plans to mitigate long-term impacts and risks. Most countries require development projects, including mining, to evaluate the environmental and social impacts of the project. For mining projects, this should include all phases of the mine life cycle.1 Risk assessment by the operator during closure planning typically begins at the start of the planning process but is often applied throughout the process as additional information is available and possible closure approaches are developed. Using standard risk assessment tools early in the planning process helps to identify and evaluate key risks and uncertainties associated with environmental and socioeconomic closure risks for a site. By identifying the risks and uncertainties early in the planning process, risk mitigation measures (e.g. operational design changes, technical studies, and development of alternative closure approaches) can be focused on the most important closure and post-closure risks. A closure risk assessment process can also redefine and reprioritize closure objectives, resulting changes to the closure plan. 1  International Finance Corporation. 2012. Performance Standards on Environmental and Social Sustainability - Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts Effective January 1, 2012. Closure Risk Assessments 9 | 69 Table of Contents Risk Tools Risk-based approach to mine closure planning region and the main suppliers should be identified. Further details on risk assessment reduces cost and uncertainty in the closure process This should include impacts on land use and local and management are provided in and includes the following benefits. livelihoods, infrastructure, health and safety, ICMM Tool 8. economic activities, and standard of living. ▪ I  dentifying a range of possible closure scenarios Risk/opportunity assessment commensurate with risk In addition to the impact assessment prepared as part and management provides a risk/ ▪ I  dentifying potential risks to successful closure of the planning process, a risk assessment should be opportunity assessment process early performed to evaluate alternatives to minimize the based on the risk management ▪ D  eveloping acceptable and realistic criteria to negative consequences of closure and maximizing the positive benefits of closure. standards, AS ISO* 31000:2018 Risk measure performance Management – Guidelines, developed ▪ Establishing orderly, timely, and cost-effective The following risks need to be considered: by the Council of Standards Australia and the Council of Standards New closure outcomes ▪ Economic ▪ Reducing uncertainty in closure costs ▪ Environmental Zealand. ▪  ontinually improving industry rehabilitation C ▪ Financial *International Organization for standards (e.g. cover design and management of Standardization contaminated drainage, erosion, and seepage). ▪ Health and safety Based on the pre-closure baseline, closure impacts ▪ Social on the environment, host communities, the broader Key risks in these areas is found in Appendix D. Closure Risk Assessments 9 | 70 Table of Contents 10 10 Template for Mine Closure Plan A closure plan is a dynamic document that needs to be regularly reviewed and progressively developed and refined over time to ensure that detail in the plan reflects current knowledge relevant to the development and rehabilitation status of the mine. An example closure plan template incorporating minimum requirements for closure is included as Appendix B. The template identifies each required section within the plan and details about what proponents should include in that section. The purpose of a template is to set realistic and consistent expectations for the content of closure plans to simplify the review process for stakeholders and to reduce ambiguities for proponents. The template’s design makes it compatible with each stage of development, so as the operation evolves from advanced mineral exploration through to mine development, the same order and type of information is required but in more detail. The template only serves as a guide; proponents should be encouraged to offer suggestions to better describe site-specific context or improve the plan overall. Template for Mine Closure Plan 10 | 71 Table of Contents 11 11 Legacy Mine Sites Legacy mine sites are historic mine sites that have been abandoned and the original operator no longer exists or has no legal responsibility under current laws. Many legacy sites were operated and abandoned before current environmental and mine closure laws existed, so they did not implement the appropriate operating and closure practices. These often leave impacts to the environment and in some cases have left communities to fend for themselves. Almost all mining countries have legacy sites that pose a risk to environment and/or public safety. These risks are often the responsibility of the government, but rarely are there enough funds to address the risks and impacts from these sites. A good governance framework should consider legacy sites and the burden they place on the government. 11.1 Policy on Legacy Mine Sites APEC provides the following are key elements of successful policy for abandoned sites1: ▪  stablishing a jurisdictional registry of abandoned E sites ▪  eveloping criteria to prioritize remediation of D the sites ▪  etermining the cost of abandoned site D remediation ▪ Financing the remediation of abandoned sites 1  APEC Mining Task Force. 2018. Mine Closure Checklist for Governments. February. Legacy Mine Sites 11 | 72 Table of Contents The IGF recommends governments to consider for post-closure management in cases where such Another effective approach is to provide legal accepting a leadership role for orphaned and a mine or its wastes have economic potential. relief for current operators or other organizations abandoned mines in their jurisdiction1 by: ▪  eeking recognition by multilateral agencies S from environmental legislation if they voluntarily implement measures to improve the condition of and ▪ W  orking in partnership with entities that and organizations that the historical and legal situation of such mines, particularly in developing reduce the impacts from these sites. These “good collectively constitute the mining industry to Samaritan” laws provide an opportunity to mining countries, requires their leadership in managerial, explore options for developing technological companies (and other organizations) to demonstrate advisory, hortatory and financial forms. solutions (including the reprocessing of mining good corporate citizenship without incurring wastes) or contributing expertise or other In developing the registry of abandoned sites: additional liability for these abandoned sites. resources to help resolve the legacy issue of orphaned or abandoned mines. ▪ E  nsure there is a common definition of what Abandoned mines and the legacy of mining is an ▪  orking in partnership with those countries W constitutes an abandoned mine site issue for countries around the world. No country whose economies benefitted from the flow of low- ▪ C  atalog current information and collect new has found a solution to remediating the impacts of cost industrial inputs that came at least in part information about each abandoned site using a historical mines, nor for funding that remediation. from mines that are now orphaned or abandoned common format There are, however, several mechanisms that can be that contribute to the resolution or management ▪  omplete inspections to collect information C considered. These include the establishment of funds for remediating legacy sites through a levy on new of abandoned mines. about the area affected including structures ▪ W  orking in partnership with entities that remaining, discharges, proximity to human and mining projects, or by funding the remediation of abandoned sites from funds retained from financial collectively constitute the mining industry to environmental receptors, and impacts observed assurances retained on new projects. In general, explore options for developing technological ▪ T  rain site inspectors in the identification of remediation is funded through general revenue. solutions (including the reprocessing of mining hazards both for updating the registry and to wastes) or contributing expertise or other ensure they are not exposed to unnecessary risks Funding through levies on existing producers has resources to help resolve the legacy issue of during site investigations had mixed results. The United States implemented orphaned or abandoned mines. ▪ E  valuate methods to generate funds to mitigate a levy on coal production in 1977 under the Surface ▪  orking in partnership with those countries W the impacts from abandoned sites Mining Control and Reclamation Act to help fund the whose economies benefitted from the flow of low- billions of dollars in coal mine remediation costs and cost industrial inputs that came at least in part some annual mineral title fees for metallic mines are from mines that are now orphaned or abandoned 11.2 Funding Legacy Mine Cleanup used to fund activities intended to secure abandoned that contribute to the resolution or management sites for public safety. Most funds for legacy mine One approach to fund closure of these sites that cleanup come from agreement or litigation with of abandoned mines. has been successfully implemented in several ▪  sing targeted fiscal arrangements to encourage U jurisdictions is to use fees paid by current and new original operators or successor companies under the Response, Compensation, and Liability Act (CERCLA the reactivation of those mines to create operators to create an abandoned mine land fund. or Superfund). Similarly, a portion of the license fee economic activity, fund remediation, and provide 1  IGF. 2013. The IGF Mining Policy Framework Mining and Sustainable Development. Legacy Mine Sites 11 | 73 Table of Contents Financial Assurance for Legacy Sites collected from aggregate producers is used to fund A review of a variety of options for funding legacy rehabilitation in Ontario, Canada. While the program abandoned mines was published in the McGill in the United States has been largely successful, International Journal of Sustainable Development Potential Legislative Requirements the levy in Ontario has been insufficient to ensure Law and Policy. The article outlines several ▪ Ensure financial assurance provided remediation of legacy aggregate sites. approaches to assessing levies designed to fund for operating mines are not mixed or the reclamation of abandoned mines, as well as the utilized for abandoned mine sites In Western Australia, the Mining Rehabilitation Fund Act 2012 was implemented to collect a levy impact on stakeholders. In general, the Canadian ▪ If fees are levied to fund abandoned from all holders of mining tenements to be used approach has been to fund reclamation of abandoned mines do not mix in general revenue for abandoned sites. Although this created a fund sites through direct government funding from general ▪ Consider fee based on mineral for abandoned sites, it has been criticized as the revenue. That funding is occasionally supplemented tenure, tonnage, revenue, profit system no longer requires financial assurances for each project, and instead relies on a pooled fund on with government/private partnerships, or small levies ▪ “Good Samaritan” laws to allow third or royalties on production. parties to remediate sites without the assumption that future defaults will be few and undertaking liability for existing far between. Past history has shown that when the In summary, most countries continue to struggle with pollution or other obligations industry does have events that lead to default, these an appropriate method for funding the reclamation relating to the site are rarely isolated to one or two operations. of abandoned mine sites. A key first step is to ensure financial assurances for new and existing projects Additional Policy and Guidelines In Queensland, Australia a new financial assurance to ensure no more legacy sites are created. Where regime has been recently established. Queensland solutions are put in place to address abandoned sites, ▪ Policy and guidelines will vary has proposed that if a site with financial assurances is depending on funding methods they should be done separately from the obligations abandoned, both the newly abandoned site and the associated financial assurances would be rolled into to properly close existing projects. Where levies ▪ Consider creating programs are put in place in lieu of financial assurance or to access funds to rehabilitate an existing program for abandoned mine reclamation. abandoned sites using funds In addition to streamlining the efficiency of managing where such contributions lead to a decrease in the the newly established program, Queensland has appropriate amount of financial assurances, there is a ▪ Consider partnering opportunities suggested that any excess financial assurances large risk of continued growth of abandoned mines. with third parties for post-closure retained could then be used to help fund the use of abandoned sites remediation of other sites. This is an optimistic view and this approach has not been tested. Legacy Mine Sites 11 | 74 Table of Contents Appendix A: International Mining Standards, Guidelines, and Resources Resource Description Asia-Pacific Economic Cooperation (APEC) A checklist for mine closure aimed at governments. The checklist is to provide policy makers in the APEC region with the essential elements of a successful mine closure governance framework based on leading international guidelines and Mine Closure: Checklist for Governments. 2018. standards, as well as experience. https://www.apec.org/-/media/APEC/Publications/2018/3/Mine-Closure-Checklist-for-Governments/218_MTF_Mine- Closure_Checklist-for-Governments.pdf Australian Government: Department of Industry, Science, Energy Sustainable development and closure, life of mine phases, closure planning, development of a closure plan, financial assurance, and Resources provisioning and environmental liability, decommissioning and closure, mine relinquishment. Leading Practice Handbook: Mine Closure. 2016. https://www.industry.gov.au/sites/default/files/2019-05/lpsdp-mine-closure-handbook-english.pdf Australian Government: Department of Mines and Petroleum: Regulatory and administrative context, planning for mine closure, structure and content of a mine closure plan, mine closure Environmental Protection Authority plan submission, mine closure plan checklist, example of a legal obligations register, examples of closure objectives, overview of specific mine closure issues, interim guidance on pit lake assessment through a risk-based approach, domain model, risk Guidelines for Preparing Mine Closure Plans. 2016. assessment and management, examples of completion criteria, sterilization report. http://www.epa.wa.gov.au/sites/default/files/Policies_and_Guidance/DMP-EPA-Guidelines-Mine-Closure-Plans-080515.pdf Extractive Industries Transparency Initiative (EITI) The EITI principles, becoming an EITI implementing country, requirements for EITI implementing countries (oversite by the multi-stakeholder group, legal and institutional framework (including allocation of contracts and licenses), exploration and The EITI Standard 2019: The Global Standard for the Good Governance production, revenue collection, revenue allocations, social and economic spending, outcomes and impact), EITI Board oversite of Oil, Gas and Mineral Resources. 2019. of EITI implementation, overview of validation, protocol: participation of civil society, expectations for EITI supporting companies, articles of association, EITI openness policy, EITI constituency guidelines, EITI association code of conduct. https://eiti.org/files/documents/eiti_standard_2019_en_a4_web.pdf Global Reporting Initiative (GRI), RG & MMSS Introductory section for the mining and metals sector, the purpose of a sustainability report, orientation to the GRI reporting framework, orientation to the GRI guidelines, applying the guidelines, guidance for defining report content, principles Sustainability Reporting Guidelines & Mining and Metals Sector for ensuring report quality, guidance for reporting boundary setting, strategy and analysis, organization profile, report Supplement. 2010. parameters, governance, commitments, and engagement, management approach and performance indicators, economic, environmental, social: labor practices and decent work, social: human rights, social: society, social: product responsibility, data gathering, report form and frequency, assurance. https://www.icmm.com/website/publications/pdfs/commitments/gri-mining-and-metals-supplement Appendix A 75 Table of Contents Global Tailings Review Overview of the standard, a systems approach, the role of the state, the role of other stakeholders, implementation, global tailings standard, knowledge base, affected communities, design, construction, operation and monitoring of the tailings facility, Global Tailings Standard: Draft for Public Consultation. 2019. management and governance, emergency response and long-term recovery, public disclosure and access to information, consequence classification, external loading criteria required by the Standard, outline of the organizational structure referred to in the Standard. https://globaltailingsreview.org/wp-content/uploads/2019/11/EN-Global-Tailings-Standard_CONSULTATION-DRAFT.pdf Initiative for Responsible Mining Assurance (IRMA) Introduction to the IRMA Standard (principles and objectives, scope of the IRMA Standard, chapter structure, language, basis for certification, continuing improvement, flagged items, associated documents and materials, collaboration with Related IRMA Standard for Responsible Mining IRMA-STD-001. 2018. Standards and Certification Systems), Business integrity requirements (legal compliance, community and stakeholder engagement, human rights due diligence, complaints and grievance mechanism and access to remedy, revenue and payments transparency), planning for positive legacies requirements (environmental and social impact assessment and management, free, prior and informed consent (FPIC), obtaining community support and delivering benefits, resettlement, emergency preparedness and response, planning and financing reclamation and closure), social responsibility requirements (fair labor and terms of work, occupational health and safety, community health and safety, mining and conflict-affected or high-risk areas, security arrangements, artisanal and small-scale mining, cultural heritage), environmental responsibility requirements (waste and materials management, water management, air quality, noise and vibration, greenhouse gas emissions, biodiversity, ecosystem services and protected areas, cyanide management, mercury management). https://responsiblemining.net/wp-content/uploads/2018/07/IRMA_STANDARD_v.1.0_FINAL_2018-1.pdf Intergovernmental Forum on Mining, Minerals, Metals and Mining and sustainable development, policy framework, legal and policy environment, financial benefit optimization, Sustainable Development (IGF) socioeconomic benefit optimization, environmental management, post-mining transition, artisanal and small scale mining (ASM); PART II: analysis, legal and policy environment, financial benefit maximization, socioeconomic benefit maximization, IGF Mining Policy Framework: Mining and Sustainable Development. environmental management, post-mining transition, artisanal and small-scale mining (ASM). 2013. https://www.igfmining.org/wp-content/uploads/2018/08/MPF-EN.pdf Intergovernmental Forum on Mining, Minerals, Metals and Guidance for governments for improving frameworks for environmental and social impact assessment and management. Sustainable Development (IGF) Introduction to environmental and social management across the mine life cycle, laying the foundation for good governance of environmental and social impacts: preparing for the permitting process, the prospecting and exploration phase, the mine Guidance for Governments: Improving Frameworks for Environmental planning phase, the construction and operation phases, final stages of mine closure and post-mining transition, checklist: laying and Social Impact Assessment and Management (First Draft). 2019. the foundation for good governance of environmental and social impacts, checklist: the prospecting and exploration phase, checklist: the mine planning phase, checklist: the construction and operation phases, checklist: final stages of mine closure and post-mining transition. https://www.iisd.org/sites/default/files/publications/igf-guidance-for-governments-esia-en.pdf Appendix A 76 Table of Contents Intergovernmental Forum on Mining, Minerals, Metals and Sustainability issues in the mining sector, market drivers for sustainability standards, history of voluntary initiatives in the Sustainable Development (IGF) mining sector, the role of public policy vis-à-vis voluntary sustainability initiatives, situating voluntary sustainability initiatives (VSIs) as instruments of the market, how public policy shapes VSI design and uptake, how VSIs support public policy goods, State of Sustainability Initiatives Review: Standards and the Extractive reflections for policy-makers, the CARE (coverage, assurance, responsiveness, engagement) analysis of mining initiatives, Economy. 2018. selection criteria for standards and initiatives included in the CARE analysis, using the SSI (state of sustainability initiatives) analysis and understanding scores, overall findings, coverage, assurance, responsiveness, engagement, potential impacts, VSIs of potential relevance to the mining sector, profiles of sustainability schemes for mineral resources, methodology: the CARE framework applied to the analysis of mining initiatives, potential environmental and social impacts of extractive industries development. https://www.iisd.org/sites/default/files/publications/igf-ssi-review-extractive-economy.pdf International Council on Mining & Metals (ICMM) Integration into life of mine planning, knowledge base, closure vision, principles and objectives, post-closure land use, engagement for closure plan development, identifying and assessing risks and opportunities, closure activities, success Integrated Mine Closure – Good Practice Guide. 2019. criteria, progressive closure, social transition, closure costs, closure execution plan, monitoring, maintenance and management, relinquishment, temporary or sudden closure, closure governance. https://guidance.miningwithprinciples.com/integrated-mine-closure-good-practice-guide/ International Council on Mining & Metals (ICMM) Ethical business, decision making, human rights, risk management, health and safety, environmental performance, conservation of biodiversity, responsible production, social performance, stakeholder engagement, position statements, Mining Principles. 2020. assurance & validation.. https://www.icmm.com/mining-principles International Cyanide Management Institute Cyanide code implementation, principles and standards of practice (production, transportation handling and storage, operations, decommissioning, worker safety, emergency response, training, dialogue), cyanide code management, International Cyanide Management Code. 2018. administration, cyanide code signatories, cyanide code verification and certification (submission of audit results, finding of substantial compliance, finding of non-compliance, corrective action plan and completion report, pre-operational certification), certification maintenance, re-admission, re-designation and re-activation, auditor criteria and review process, dispute resolution. https://www.cyanidecode.org/about-cyanide-code/cyanide-code Appendix A 77 Table of Contents International Finance Corporation (IFC) Industry-specific impacts and management, environmental (water use and quality, wastes, hazardous materials, land use and biodiversity, air quality, noise and vibration, energy use, visual impact), occupational health and safety (general workplace Environmental, Health and Safety Guidelines for Mining. 2007. health and safety, hazardous substances, use of explosives, electrical safety and isolation, physical hazards, ionizing radiation, fitness for work, travel and remote site health, thermal stress, noise and vibration, specific hazards in underground mining), community health and safety, mine closure and post-closure, performance indicators and monitoring (environment, emissions and effluent guidelines, environmental monitoring), occupational health and safety performance (guidelines, accident and fatality rates, monitoring), general description of industry activity. https://www.ifc.org/wps/wcm/connect/595149ed-8bef-4241-8d7c-50e91d8e459d/Final%2B-%2BMining. pdf?MOD=AJPERES&CVID=jqezAit&id=1323153264157 International Finance Corporation (IFC) Stakeholder engagement, key concepts and principles of stakeholder engagement (stakeholder identification and analysis, stakeholder consultation, negotiation and partnerships, grievance management, stakeholder involvement in project Stakeholder Engagement: A Good Practice Handbook for Companies monitoring, reporting to stakeholders, management functions, integrating stakeholder engagement with the project cycle Doing Business in Emerging Markets. 2007 (project concept, feasibility studies and project planning, construction, operations, downsizing, decommissioning, and divestment), a road map to IFC’s performance standards and policy on disclosure of information, stakeholder engagement strategies for different project scenarios, stakeholder engagement plan, sample of stakeholder log, pro forma for advertising the disclosure of the draft environmental and social assessment report. https://www.ifc.org/wps/wcm/connect/a320adcf-805e-4924-a53f-2da3f078fcff/IFC_StakeholderEngagement. pdf?MOD=AJPERES&CVID=ltQXbp2 International Network for Acid Prevention (INAP) The GARD guide, the ARD process, corporate, regulatory and community framework, defining the problem, prediction, prevention and mitigation, drainage treatment, monitoring, management and performance assessment, ARD communication Global Acid Rock Drainage (GARD) Guide. 2014. and consultation, ARD management in the future. http://www.gardguide.com/index.php?title=Main_Page International Institute for Environment and Development (IIED) Sustainable development, challenges faced by the minerals sector (visibility of the minerals industry, the control, use, and management of land, minerals and economic development, local communities and mines, mining, minerals, and the Breaking New Ground: The Report of the Mining, Minerals and environment, an integrated approach to using minerals, access to information, artisanal and small-scale mining, sector Sustainable Development Project (MMSD). 2002. governance: roles, responsibilities, and instruments for change), an agenda for change, a vision of the minerals sector, supporting sustainable development in the minerals sector. https://pubs.iied.org/pdfs/9084IIED.pdf Appendix A 78 Table of Contents The Mining Association of Canada (MAC) Management of tailings facilities, tailings management framework (overarching principles, managing throughout the life cycle of a tailings facility), policy and commitment, planning (risk management, performance objectives, accountability Tailings Guide Version 3.1. 2019. and responsibility, management process), implementing the tailings management framework (operation, maintenance and surveillance manual, emergency preparedness, checklists), performance evaluation, management review for continual improvement, assurance, risk management framework and approach, best available technology and best available/applicable practice, assessment of alternatives, independent review, considerations for managing throughout the life cycle of a tailings facility, technical considerations. https://mining.ca/our-focus/tailings-management/tailings-guide/ The Mining Association of Canada (MAC) What is Towards Sustainable Mining?, how TSM works, TSM protocols and indicators, TSM performance rating system, layers of TSM verification, COI advisory panel, communities and people, environmental stewardship, energy efficiency, TSM in Towards Sustainable Mining: 2019 Highlights (TSM). 2019. Canada and beyond. https://mining.ca/wp-content/uploads/2019/12/TSM-Booklet-EN-Web.pdf MVLWB/AANDC Expectations for closure and reclamation planning, closure and reclamation concepts - an objectives based approach, closure and reclamation plans - required regulatory submissions, financial security requirements, communication and engagement, Guidelines for the Closure and Reclamation of Advanced Mineral template for preparing closure and reclamation plans, technical considerations for effective closure and reclamation, common Exploration and Mine Sites in the Northwest Territories. 2013. site-wide mine closure and reclamation considerations, individual project component closure and reclamation considerations. https://mvlwb.com/sites/default/files/documents/wg/WLWB_5363_Guidelines_Closure_Reclamation_WR.pdf National Orphaned/Abandoned Mines Initiative (NOAMI) Methodology, policy element notes (mine closure overview, risk in mine closure planning, risk assessment, acid rock drainage, financial assurance, cost estimation, perpetual care, long-term monitoring and maintenance, corporate failure/premature The Policy Framework in Canada for Mine Closure and Management of closure, emergency legislation, relinquishment, consultation, institutional care, summary of questionnaire results, results Long-Term Liabilities: A Guidance Document. 2010. of survey - Canadian respondents, results of survey - foreign respondents, policy framework (closure objectives, closure plans, financial assurance, post-closure care, relinquishment, institutional custodianship, consultation), recommendations, conclusions, example methodology for evaluating risk, example of present value determination, policy framework for mine closure and long-term liabilities questionnaire summary for Canada, policy framework for mine closure and long-term liabilities questionnaire summary for jurisdictions outside of Canada. http://www.abandoned-mines.org/pdfs/PolicyFrameworkCanforMinClosureandMgmtLiabilities.pdf United Nations Development Programme (UNDP) Establish the foundations for resource stewardship: policy, regulations, institutions and the rule of law; participatory planning for extractives from exploration to closure; exploration; feasibility and licensing; mine development and construction; Extracting Good Practices. 2018. production; closure; post-closure; backgrounder - access to information, participation, access to remedy; using the ecosystem services approach for assessing the mining, ecosystems and human rights nexus; selected international standards and international good practice guidance. http://www.undp.org/content/dam/undp/library/Sustainable%20Development/Environmental-Governance-Project/ Extracting_Good_Practices_Report.pdf Appendix A 79 Table of Contents United Nations Development Programme (UNDP) Mining and sustainable development, impacts of mining during the life of mine (mineral exploration phase, mine development phase, mining operations phase, mine closure phase), orienting legal frameworks towards sustainable development (the Managing Mining for Sustainable Development, a Sourcebook. 2018. domestic legal framework, mining contracts, international treaties, conventions and soft law, voluntary standards, customary rules), protecting the environment and people (trends and approaches in environmental regulation of mining, environmental and social impact assessment, environmental monitoring and auditing, community consultation, engagement and protection, managing mine closure), realizing and enhancing the benefits from mining (fiscal revenues, employment and economic growth, mining and local development, integrating mining into strategies and plans). https://www.undp.org/content/dam/undp/library/Sustainable%20Development/Extractives/UNDP-MMFSD-HighResolution. pdf World Bank Multi-Stakeholder Initiative General toolkit guidance - trends, challenges, issues and setting priorities, tool 1 - policy and regulatory framework, tool 2 - environmental and social best practice and management systems, tool 3 - financial assurance mechanisms, tool 4 - monitoring Towards Sustainable Decommissioning and Closure of Oil Fields and and enforcement, tool 5 - stakeholder engagement and continuous improvement. Mines: A Toolkit to Assist Government Agencies Version 3.0. 2010. http://documents.worldbank.org/curated/en/417371468149083097/pdf/827200WP0decom00Box379864B00PUBLIC0.pdf World Bank Group Essentials for economists, public finance professionals, and policy makers. Defining sector policy objectives, the economics of the extractive industries sector, institutional framework, investment and production cycles, extractive industries policy, The Extractive Industries Sector : Essentials for Economists, Public monitoring and enforcing contracts: legal obligations and institutional responsibilities, public infrastructure and investment, Finance Professionals, and Policy Makers. 2015. economic diversification and local content development, resource classification frameworks, types of economic rents, impact of income changes on commodity demand, effective resource contract enforcement: a checklist of guidelines. https://openknowledge.worldbank.org/bitstream/handle/10986/22541/The0extractive0s00and0policy0makers. pdf?sequence=1&isAllowed=y World Economic Forum Summary of findings, context - how we got here, role of innovations and disruption, recommendations, next steps. Voluntary Responsible Mining Initiatives: A Review. 2015. http://www3.weforum.org/docs/Voluntary_Responsible_Mining_Initiatives_2016.pdf World Gold Council The responsible gold mining declaration( governance, social, environment), related responsible mining and sourcing codes, the responsible gold mining principles (governance, social, environment), assurance requirements. Responsible Gold Mining Principles. 2019. https://www.gold.org/download/file/14254/Responsible-Gold-Mining-Principles-en.pdf Appendix A 80 Table of Contents Appendix B: Example Table of Contents for a Mine Closure Plan Executive Summary 3.8.1 Economic Baseline 4.8 Social Considerations Affecting Closure 3.8.2 Social Baseline 4.8.1 Impacted Stakeholders Introduction 4.8.2 Macroeconomic Impacts of Closure Design Basis 1.1 Project Location 4.8.3 Social Impacts of Mine Closure 1.2 Permitting and Approvals 4.1 Legal Requirements and Other Obligations 4.1.1 Legal Requirements 4.9 Closure Assumptions and Design Criteria Project Description 4.1.2 Other Obligations 2.1 Major Project Components 4.2 Closure Objectives Material Characterization and Materials 2.1.1 Mining Activities 4.3 Post-closure Land Use Balance 2.1.2 Mineral Processing 4.4 Environmental Considerations Affecting Closure 6.1 Soil 2.1.3 Infrastructure 4.4.1 Remote Location 6.2.1 Non-Soil Closure Material 2.1.4 Waste Rock Dumps 4.4.2 Growth Regime 6.3.2 Worker Health and Safety Hazards 2.1.5 Tailings Management 4.4.3 Availability of Growth Media 6.4.3 Public Health and Safety 2.1.6 Water Management 4.5 Pit Refilling 6.2 Site Relinquishment 2.1.7 Waste Management 4.6 Geochemistry Closure Action Plan 4.6.1 Waste Rock Geochemistry Project Environmental and Social Setting 7.1 Vegetation and Wildlife 4.6.2 Tailings Geochemistry 3.1 Meteorology and Air Quality 4.6.3 Predicted Central Pit Lake Geochemistry 7.2 Pits 3.2 Land Use 4.6.4 Surface Water Quality 7.3 Public Safety 3.3 Soils 4.6.5 Water Quality/Chemistry 7.4 Public Safety 3.4 Groundwater and Surface Water 4.6.6 Climate 7.5 Underground Mine 3.4.1 Groundwater 4.6.7 Climate Change 7.6 Waste Rock 3.4.2 Surface Water 4.7 Engineering Considerations Affecting Closure 7.7 Tailings Management Facility 4.7.1 Tailings Physical Characteristics 7.7.1 Risk assessment 3.5. Geological Setting 4.7.2 Design Storm Event for Closure 7.7.2 Closure Approach 3.6 Biodiversity 4.7.3 Final Tailings Surface Configuration 7.7.3 Cover Design 3.7 Climate Change 4.7.4 Diversion Ditches 7.7.4 Spillway System 3.8 Socioeconomic Setting Appendix B 81 Table of Contents 7.8 Process Facilities 11.4 Closure Cost Rates 7.9 Truck Shop 11.4.1 Labor 7.10 Other Buildings 11.4.2 Equipment 7.11 Infrastructure 11.4.3 Materials 7.11.1 Roads 11.4.4 Miscellaneous Unit Costs 7.11.2 Power Generation and Distribution 11.5 Productivities 7.11.3 Water Supply System 11.6 Key Cost Assumptions 7.11.4 Industrial and Hazardous Waste Facility 11.6.1 Material Balance 7.11.5 Effluent Treatment Plant 11.6.2 Waste Rock Dumps 7.11.6 Sedimentation Ponds 11.6.3 Tailings Management Facility and Ancillary Facilities 8.12 Yard Areas 11.6.4 Pits 8.13 Fencing 11.6.5 Buildings 8.14 Monitoring 11.6.6 Waste Disposal 8.15 Post-closure Management 11.6.7 Pipeline Removal 8.16 Temporary Closure 11.6.8 Monitoring 8.17 Unplanned Closure 11.6.9 Human Resources, Administration, and Closure Management Socioeconomic Transitioning Plan 11.6.10 Socioeconomic Transitioning 11.7 Closure Cost Estimate 8.1 Socioeconomic Mitigation Measures Risks and Opportunities Conclusions and Recommendations 9.1 Risks References 9.2 Opportunities Mine Closure Schedule Closure Costs 11.1 Methodology 11.2 Model Structure 11.3 Closure Cost Basis Appendix B 82 Table of Contents Appendix C: Examples of Post-closure Socioeconomic Context and Repurposing of Land and Infrastructure Detailed studies on repurposing are not readily of various local governments and research to West Kutai government and the KEM President available. The examples available in the public assess a botanical garden’s social, economic and Director, with representatives from the local domain, in particular for FSU countries are generally environmental impacts, was gained in 2014. communities, governments and NGOs, developed lacking.1,2 The majority of examples are based a Charter, a website and evaluation criteria to in developed countries and have large financial The project involved the Indonesian Department of ensure accountability and transparency. There implications. Some examples available in the public Forestry, the Indonesian Institute of Sciences, the were four technical working groups, consisting of domain are provided in this appendix. University of Sam Ratulangi, the North Sulawesi representatives from the mine, local community Sustainable Development Foundation and other leaders, NGOs, Universities, Local, Provincial local constituents through a collaborative process. Indonesia Input from local communities was sought through the and Central Government Departments, which reported to the Steering Committee. These working Newmont Minahasa Raya-operated (PTNMR) Mine community consultative committee, which consists of groups researched, developed and recommended Site community leaders. sustainable options to the Steering Committee. In use since 1996, the former PT Newmont Minahasa The MCSC met quarterly to examine options in As part of the closure PTNMR also introduced Raya-operated (PTNMR) mine was one of the first accordance with the criteria set out in the Charter sustainable social development programs to assist large-scale mines in Indonesia to close. PTNMR’s and endorsed sustainable solutions which had local communities with the post-closure transitioning, closure plan, which focused on reclamation of the support from Government, Community and the mine. including micro finance, vocational training, fisheries mining area, was submitted to the government in and agriculture programmes. March 2002 and approved in December, with mineral United Kingdom processes continuing until 2004. Closure activities Kelian Equatorial Mining (KEM) were eventually completed in 2006 and PTNMR’s Thoresby Colliery environmental monitoring lasted until 2010. The Kelian gold mine was closed in 2004. In October Thoresby Colliery, a coal mine in Notthinghamshire, 2000 the Kelian mine closure strategy was started opened in 1925 and closed in 2015. Demolition and The Indonesian government started reforestation in which sought full involvement of all stakeholders clearance of the pit heads and infrastructure was 2011 with 155,814 trees and fruit crops planted on through the Kelian Mine Closure Steering Committee completed by the mine in 2018, which included filling 200 ha of reclaimed land. The trees were selected (MCSC) in the development of sustainable solutions and capping of the two mine shafts. Earthworks and based on a multi-purpose tree species system and are which would enable communities to secure long- infrastructure to facilitate the sale of serviced land to part of larger reclamation works to create a botanical term benefits and minimize post-closure risks housebuilders started in 2018/2019. The associated garden that aims to attract tourists. The approval for from the mining operations. This committee, cost will be funded by a service charge associated the botanical garden, which required endorsement jointly chaired by the Head (Bupati) of the regional with the residential plots. 1  Holcombe S and Keenan J. 2020. Mining as a Temporary Land Use Scoping Project: Transitions and Repurposing. Centre for Social Responsibility in Mining. University of Queensland, Australia). 2  Pearman G. 2009. 101 Things to Do with a Hole in the Ground. The Post Mining Alliance. Appendix C 83 Table of Contents Harworth Group of Restoration and Development relevant government authorities and by developing privately-owned ski hill and golf course as well as bought the freehold and plans to deliver 800 new socioeconomic transitioning projects. Examples of De a 1.05 MW solar farm that is owned and operated homes and a retirement village over a 10-year period. Beer initiatives in Namibia and Botswana are outlined by Teck Resources. Teck continues to maintain Land will also be engineered to build a new primary below: responsibility for water treatment. By preparing for school and a new commercial space expected to closure and engaging stakeholders early in the mine create around 1,000 jobs. It is expected that the first Namibia life, Sullivan’s operators were ahead of their time. house construction will start in 2020. Two of the In Namibia, De Beers has worked with Oranjemund Additional information: original mining workshop buildings were retained Town Council to transfer municipal services from and will be restored in terms of a cultural heritage the company to the town council and have begun https://www.teck.com/news/stories/2016/closure- plan and will be used as a community center. The planning the transfer of property, currently owned example--preparing-for-life-after-the-sullivan-mine- restoration of the spoil heap commenced in 2016 and by Namdeb, into private ownership. After extensive included the transformation into heathland to create a 350-acre country park consistent with the local research, an agricultural pilot project has been Australia launched as a first step towards establishing a landscape. The Woodcutters Mine sustainable post-mining economy. Thoresby Vale could potentially be part of the The Woodcutters lead-zinc mine, operated by development of the world’s first 5G “Connected Botswana Normandy in Australia’s Northern Territory was Forest” which has five-million-pound funding from decommissioned in 1999. Newmont acquired the In Botswana, De Beers is planning for the eventual site in 2002 and took on responsibility for the the government, which was matched by the industry economic diversification of Orapa town in equaling a 10-million-pound project. decommissioning and rehabilitation. Under the partnership with local and national government Woodcutters Agreement, the closure work was Additional information: bodies. The plan will detail a long-term vision for undertaken in collaboration with the traditional the area adjacent to the Orapa mine, focusing on owners of the land (the Kungarak and the Warai https://www.nottinghampost.com/news/ its potential as a tourism hub and center for light people). This agreement’s goal was to hand over the nottingham-news/thoresby-colliery-set- industry. land to the traditional owners once all agreed closure transformed-800-666499 criteria and objectives were met. The agreement also Canada details local employment, training and stakeholder https://harworthgroup.com/projects/thoresby-vale/ The Sullivan Mine engagement commitments. Southern Africa The Sullivan mine, a zinc, lead and silver mine in Newmont has completed filling in the mine pit and Kimberley, British Columbia that operated for more covering the land with native grass and tree species, De Beers than a century, managed by the Consolidated Mining which was completed in 2005. De Beers state that they take steps to create a and Smelting Company of Canada (later Cominco, secure future for the communities affected by their now Teck Resources) began engaging the local A problem arose in 2011 when salt precipitates mine closure by transferring their responsibility community on mine closure as far back as the 1960s. formed within the footprints of the reclaimed for infrastructure and public services to the Today, the 1,100-hectare former mining area has a tailings dams. In order to avoid potential impacts to Appendix C 84 Table of Contents waterways, Newmont consulted extensively with the Kidston Mine USA traditional owners and other relevant stakeholders Portions of the closed Kidston Mine in Queensland on remediation options focused on post-mining land BHP are being utilized to generate power for the national use and agreed to a remediation plan that raised the power grid. Two closed pits that have filled with The BHP’s North American Closed Sites team has ground elevation of the tailings dams. This project groundwater will be used to generate hydro power, attempted to find alternative land use for legacy involved significant earthworks that required but unlike traditional hydroelectric power plants, mine sites that can be both an environmental benefit 480,000 cubic meters of material to backfill the water will be discharged in to one of the pits from and bring jobs and industry back to local mining tailings dams. As part of the plan, the material used the power generation plant from where it will be communities. The Rocky Mountain Institute (RMI) would come from a newly constructed “borrow pit,” pumped back to first pit during off-peak hours using has teamed up with BHP to consider turning sites into which would be reclaimed and turned into a wetland power from a solar generation facility also located independent solar or wind power plants and storage at completion. at the former mine site. The project is expected to facilities, presenting the opportunity for a second generate 270MW of solar power and 250MW of useful life through renewable energy development. The creation of a wetland was the preferred option chosen by the traditional owners. Aquatic ecologists pumped hydroelectricity storage. The project is a Recently, BHP has advanced some of these identified from James Cook University were consulted on a public-private partnership between the Australian opportunities, with a site in Arizona and New Mexico design that would make the borrow pit conducive government and Genex Power Limited. now in design and/or permitting phases. The site in to forming a wetland, and hydrologists helped Additional information: New Mexico has now signed both a lease and lease determine seasonal water levels so the borrow pit option with a solar and storage developer. would be deep enough to retain water year-round https://arena.gov.au/projects/kidston-pumped- and maintain aquatic life. storage-project/ Additional information: The company worked alongside groups such as the The Wilkie Creek Mine https://www.bhp.com/community/community- Indigenous Consulting Group, which aims to promote news/2018/01/renewable-energy-powering-our- The Wilkie Creek coal mine, managed by Peabody, closed-mine-sites/ social and economic development for Aboriginal closed in 2013. The company has rehabilitated 395 and Torres Strait Islander people in Australia, and ha of land since 2014, much of which has been given Rusca Bros Services, a local mining and recruitment over to cattle farming. Rehabilitation is still ongoing, company owned and operated by indigenous and the final landform planning process includes groups, for the soil transfer project. Newmont has paddocks and cattle watering systems to support the reported that Indigenous people made up 90% of the end land use of grazing workforce for this project. Additional information: Additional information: https://www.mining-technology.com/features/ https://www.decipher.com.au/blog/industry-news/ australian-mine-rehabilitation/ find-out-how-newmont-has-rehabilitated-the- woodcutters-mine/ https://www.decipher.com.au/blog/industry-news/ find-out-how-peabody-has-rehabilitated-the-wilkie- creek-mine/ Appendix C 85 Table of Contents Appendix D: Table of Key Risks Risks Economic Environmental Financial Health & Safety Social Failure to incorporate closure planning into project design and development • • • • • Failure to update closure plan on a regular basis • • • • • Failure to accurately estimate closure liability • • • • • Failure to make sufficient provision to implement closure plan • • • • • Closure objectives and goals are not defined • • • • • Closure goals are not site specific • • • • • Closure success criteria do not fit closure goal • • • • • Closure goals are not realistic • • • • • Release of contaminated water from site after closure – from pits, tailings, overburden material, • • • and other mine waste materials Downgradient groundwater and or surfcae water quality does not meet closure criteria • • • • • Contaminated soil, hazardous materials, and liquid wastes remaining on site • • • Erosion (e.g. wind, water, and waves) during extreme climatic events • • • Slope failures (pit walls, WRD, etc.) • • • Materials useful for closure (e.g. organic soil) were not salvaged and stockpiled • • • Closure measures fail to achieve closure objectives • • • • • Appendix D 86 Table of Contents Risks Economic Environmental Finacial Health & Safety Social Government lacks capacity for closure plan reviews • • • • Insufficient review period for government review • • • • Corrupt practice by governmental or third-party reviewers • • • • • Failure to engage or failure to engage appropriately with stakeholders regarding closure visioning • • • and socioeconomic transitioning Conflict between different stakeholders in terms of closure goals and process • • • • • Failure to manage unrealistic stakeholder expectations for socioeconomic transitioning • • • Lack of capacity for repurposing/socioeconomic transitioning in local communities/ private sector • • • and government Lack of capacity for post closure visioning in all stakeholders • • Lack of capacity in governments to manage repurposed mine assets after closure • • • Lack of capacity in government to manage funds to manage residual impacts after closure • • • • Land conflicts impeding post closure land repurposing • • • Lack of alignment between operational socioeconomic programs and post-closure economic sustainability • • Inadequacy of retrenchment packages • • • Lack of government capacity for post closure social monitoring • • Appendix D 87 Table of Contents