Publication Name

MINING FOR CLOSURE

34. Note the slightly different emphasis in these comments. The

former addresses

Mining for Closure

, thus includes closure activi-

ties and environmental work during the mine lifetime, while the

latter only refers to closure activiites.

the start of this section, such frameworks involve

miners being made responsible for the restoration

of the physical, chemical and biological quality or

potential of air, land and water regimes disturbed

by mining to a state acceptable to the regulators

and to post-mining land users. Further, social con-

siderations can and should be included in such.

Thus, the principal argument applied here, is that

while it does cost to be environmentally and social-

ly responsible, such investments to reduce (gener-

ally unpriced) environmental damage also reduce

private costs to such a degree that the investments

are worthwhile. In essence, good mining practice

reduces the private costs of miners

as well

as pro-

viding the public goods listed above. The gains

available to the industry are mainly focused upon

increasing efficiency and reducing (potentially)

costly risk.

How much then does it cost to

Mine for Closure

While such numbers will vary from operation to

operation – indeed from year to year in operations,

it is clear that the numbers, while significant, are

modest. In Australia, estimates indicate that:

Best practice methodologies make up about 5 per

cent of the capital and operating costs for new min-

ing projects. However, these costs can commonly be

offset against the many benefits that best practice

brings. The cost of cleaning up a major spill for ex-

ample can exceed the annual budget for good envi-

ronmental practice at a site by a factor of 10 to 100

or even more. Moreover, best practice energy and

water management can routinely yield significant

financial savings (Environment Australia, 2002b).

This however, is for new mining projects. Costs for

mature mines are logically somewhat higher but

may remain relatively modest. According to the

manager for corporate environmental affairs for a

major African mining concern, in the case of South

African operators of mature mines, total closure li-

abilities can amount to between 10 – 20% of the

total profits of the remaining life of the mines (Rei-

chardt, 2002).

Backyard clean-up: tailings removal after a tailings impoundment failure – Macedonia

Photograph by UNDP Macedonia