Publication Name

MINING FOR CLOSURE

With these points in mind, it is held that a tailored

framework for the SEE/TRB region is required

to support such endeavours. As the material pre-

sented in this document has demonstrated thus

far, much of the content for such a framework is

to be found throughout the world and many re-

spected stakeholders are involved in progressing

these issues. The task of these closing sections is

to combine those parts that best serve the needs of

jurisdictions in SEE/TRB.

5.1

meeting challenges

for economies in

transition

As starting point for meeting the challenges out-

lined above, a report produced in 1999 by the

(then) Principal Environmental Specialist, Euro-

pean Bank for Reconstruction & Development

(EBRD) Mehrdad M. Nazari. The report titled

Fi-

nancial Provisions for Mine Closure

(Nazari, 1999)

addressed the securing of mine closure funding

during the operational and profitable phase of

mining projects. It had the explicit aim of seeking

pathways for reducing the expectation or reliance

on governments and donors to address this issue.

It also sought to outline needs for a technical as-

sistance programme to be provided to participating

countries to assist them in developing the relevant

policy and regulatory framework.

Despite significant progress, particularly in the area

of reviewing and commencing the process of revising

legislative frameworks (cf. Peck, 2004 for an outline

of such steps inmany of the regional jurisdictions); as

this document has detailed, many of the points made

by Nazari are as valid today as they were in 1999.

The mining sector is a very important contribu-

tor to local and national economies, including in

central and eastern Europe (CEE) and the former

Soviet Union (FSU). However, in parts of CEE

and the FSU, the mining sector has often been

characterised by inappropriate planning, opera-

tional and post-operational practices, including

a lack of an adequate regulatory framework and

inadequate implementation of mine rehabilita-

tion and closure activities. In some of the regions

associated with significant mining activities, this

has resulted and continues to result in significant

adverse environmental and health and safety im-

pacts and related liabilities. As a result, donors

and international organisations and agencies are

frequently requested to provide financial assistance

to alleviate the most heavily impacted areas.

A programme to develop a policy and regulatory

framework for financial provisioning related to

mine rehabilitation and closure should be initi-

ated. This programme would be able to assist par-

ticipating countries in developing the required pol-

icy and regulatory framework to further promote

and implement long term environmentally sound

and sustainable development in the mining sector.

The programme would also contribute to reducing

the uncertainties associated with post-operational

practices, and potentially related adverse environ-

mental impacts and costs. It would also facilitate

the introduction of a standardised approach to this

issue, establishing a ‘level playing field with fixed

goal posts’ for regulators, investors, mining com-

panies, and operators.

The implementation of

such a successful policy and regulatory framework

would reduce the expectation and need to rely on

governments and donors for financial assistance,

effectively ‘bailing out’ the most severely impacted

areas suffering from long term mining impacts.

While the World Bank Group and other funding

groups such as the Global Environment Facility

(GEF)

are deeply involved in projects in the re-

gion

such levels of loan support will be difficult, if

not impossible to replicate throughout the region.

The challenges must substantially be met from

within the Nation states. This challenge will call for

a range of innovative and flexible solutions. It is

likely that new ideas – not yet conceptualised, de-

veloped or tested elsewhere – will need to be pio-

neered in the region.

84. A point strongly supported by the citation from the Govern-

ment of Ontario in Section 2.3.1.

85. The Global Environment Facility (GEF), established in 1991,

helps developing countries fund projects and programs that pro-

tect the global environment. GEF grants support projects related

to biodiversity, climate change, international waters, land deg-

radation, the ozone layer, and persistent organic pollutants. See

http://www.gefweb.org/.

86. For instance Sora (2005) reports that loans to the tune of USD

15.25 million have been secured (5.64m from the WBG, 6.24m

from GEF) to deal with immediate needs to reduce the risk of

catastrophic mining accidents, aiming to protect the integrity of

the Danube and Black Sea basins Work on three “hotspots” (in-

cluding Rosia Poeini and Bai Borsa) are to be implemented over

5 years (October 2004 – December 2009). National Agency for

Mineral Resources is responsible for its implementation and will

work closely together with Ministry of Economy and Commerce,

Ministry of Environment and Water Management, mine opera-

tors, local authorities, designers, local communities.