{"id":3281,"date":"2021-10-14T11:45:31","date_gmt":"2021-10-14T11:45:31","guid":{"rendered":"https:\/\/www.igfmining.org\/stage_new\/mine-closure-challenges-for-government-and-industry\/"},"modified":"2023-03-22T14:32:59","modified_gmt":"2023-03-22T14:32:59","slug":"mine-closure-challenges-government-industry","status":"publish","type":"post","link":"https:\/\/www.igfmining.org\/stage\/mine-closure-challenges-government-industry\/","title":{"rendered":"Mine Closure Challenges for Government and Industry"},"content":{"rendered":"<p>Minerals and metals\u00a0are critical to the products and technologies of\u00a0modern society. They are also vital for the\u00a0transition to a low-carbon economy.\u00a0For mining to be truly sustainable, the industry must provide these\u00a0natural resources\u00a0without compromising the integrity of the environment or\u00a0the well-being of\u00a0local communities in the future.\u00a0Well-planned and executed mine closure can help achieve this desired outcome.<\/p>\n<p>Mine closure is a complex, multidisciplinary undertaking, requiring several years of planning and a coordinated effort from government and industry stakeholders, ideally right from the start\u00a0of mine planning. It includes:<\/p>\n<ul>\n<li>Establishing a shared vision for\u00a0post-mining land use\u00a0(developed\u00a0in consultation with communities and government).<\/li>\n<li>Developing rigorous mine closure plans\u00a0with representative\u00a0closure\u00a0cost\u00a0estimates\u00a0that are updated regularly.<\/li>\n<li>Planning for the social transition of workers and\u00a0communities\u00a0following closure.<\/li>\n<li>Providing\u00a0adequate\u00a0financial assurance\u00a0for\u00a0government\u00a0so that\u00a0closure plans can be completed even if\u00a0the mining company goes bankrupt or otherwise abandons the site.<\/li>\n<li>Relinquishing\u00a0the site back to government or\u00a0a third party following closure where possible.<\/li>\n<\/ul>\n<p>There are only a few examples globally of mines that have received closure certificates (acknowledging the site has been rehabilitated by the company to a level agreed by the governing body) and where the site has been transferred to government or a third party. Both industry and government are building experience and expertise with mine closure, and many jurisdictions are still developing their understanding and policies to provide for the comprehensive closure of a mine operation.<\/p>\n<p>In 2018, the International Council on Mining and Metals (ICMM) <a href=\"https:\/\/www.ausimm.com\/bulletin\/bulletin-articles\/icmms-integrated-mine-closure-good-practice-guide--then-and-now\/\">surveyed its members<\/a> to assess the status and profile of mine closure across its membership. Although there are several new mines coming onstream on an ongoing basis, the survey found that over the next 25 years, more than 40% of the operations that responded to the survey are expected to close based on commodity prices and mine life estimates at that time, and almost 20% are expected to close in the next 10 years. With many mines expected to close around the world in the coming years, there is an opportunity for industry and government to work together to ensure a sustainable transition to post-closure land uses that leave behind a sound and stable environment and self-sustaining communities.<\/p>\n<p>In 2019\u20132020, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) also undertook a <a href=\"https:\/\/www.iisd.org\/system\/files\/2021-08\/status-mine-closure-readiness-en.pdf\">survey of its member governments<\/a> to assess their readiness for these expected mine closures. The results from this survey, combined with Mining Policy Framework (MPF) assessments undertaken by the IGF since 2014, show that, while governments are aware of the importance of mine closure, many do not have the policies, regulations, enforcement, or capacity to manage and regulate it. For example, only 45% of the countries that responded to the survey require adequate financial assurance for mining operations to rehabilitate, decommission, and close the operation in its current state. The regulator closure cost estimate is used to determine the required amount of financial assurance to be covered by a financial assurance mechanism (which might include insurance, guarantee, bond etc.). \u00a0Without financial assurance regulations, there is considerable risk that governments will have to bear the significant costs of closing abandoned mine sites. Another\u00a0challenge\u00a0that some jurisdictions face is the ability to manage assurance\u2014and to manage it at arm&#8217;s length from government.\u00a0Where assurance is held outside of the country, it can be difficult to ensure that governments are guaranteed access to funds when legitimately needed.<\/p>\n<p>Both government and industry\u00a0stakeholders are still grappling with the social challenges\u00a0of mine closure. Involving communities is essential to developing a common framework and vision for the post-mining landscape. Host communities that have grown dependent on mining operations are especially vulnerable,\u00a0experiencing\u00a0considerable socio-economic impacts at closure.\u00a0This\u00a0is often the case for mines\u00a0in remote areas or in developing countries where an operation\u00a0may be\u00a0the primary local economic driver.\u00a0To give a sense of how common this dependence is, of those operations surveyed by ICMM in 2018,\u00a043%\u00a0of the ones expected to\u00a0close in the next 25\u00a0years have\u00a0a high to very high relative contribution to the local\u00a0and\u00a0regional economy. This suggests mine closure could have a major impact on local mine communities if not planned and regulated properly.<\/p>\n<p>The IGF survey highlighted that\u00a0only 23% of governments\u00a0reported\u00a0a high level of community involvement in developing and implementing mine closure plans and the post-mining transition, while\u00a037% reported no involvement of communities.<\/p>\n<h2>Regulatory Uncertainty<\/h2>\n<p>Further challenges common to both industry and government\u00a0include the inadequate or uncertain policy and regulatory\u00a0landscape, obscuring the responsibilities and expectations of both industry and regulators. For example, the pathway or process to relinquish a closed mine site is often uncertain,\u00a0even in some of the\u00a0world\u2019s\u00a0leading\u00a0mining\u00a0jurisdictions. There is no such thing as a zero-risk closure, but risk can be managed, minimized, and transferred. Without that, the transfer\u00a0of a closed mine back to the original or alternative landowner can remain in limbo for years.<\/p>\n<p>The IGF survey results also showed that 75% of jurisdictions do not have adequate records of the number of mines that have closed and surrendered their leases. This information is important in assisting both industry and government in understanding the lessons learned so that these can be adopted for future mine closures.<\/p>\n<h2>Closure Experience<\/h2>\n<p>The lack of experience in closing mines\u2014and, for some governments, the lack of human resources to manage mine closure\u2014is also hindering progress. While governments need to ensure they dedicate sufficient resources to manage mining, there are opportunities to learn from the expertise and experience that exists within industry, consulting companies, development agencies, and non-governmental organizations. International best practices and recent detailed guidance documents produced by the <a href=\"https:\/\/www.icmm.com\/en-gb\/guidance\/environmental-stewardship\/integrated-mine-closure-2019\">ICMM<\/a>, <a href=\"https:\/\/www.iisd.org\/system\/files\/2021-09\/financial-assurance-governance-for-post-mining-transition.pdf\">IGF<\/a>, <a href=\"http:\/\/www.dmp.wa.gov.au\/Documents\/Environment\/REC-EC-112D.pdf\">governments<\/a> and organizations such as <a href=\"https:\/\/www.apec.org\/publications\/2018\/03\/mine-closure---checklist-for-governments\">Asia-Pacific Economic Cooperation<\/a> and the <a href=\"https:\/\/openknowledge.worldbank.org\/handle\/10986\/35504\">World Bank<\/a> can help both industry and government to benchmark their current approaches and advance their state of practice. The availability of these resources\u00a0gives\u00a0mining companies a clear responsibility\u00a0to implement best practices,\u00a0regardless of the context\u00a0within which they are operating.<\/p>\n<h2>Maximizing Potential<\/h2>\n<p>A closed mine site has many opportunities for beneficial future land uses for people and the environment when planned together by industry, government, and communities.<\/p>\n<p>Although significant advances have been made in planning and executing mine closure, there is still a long way to go. Challenges remain related to governing policies and regulations, allocating adequate resources, and integrating social closure into the post-mining transition. The release of detailed guidance shows a positive trend focused on addressing these challenges, and examples of modern mine closures are increasing alongside the experience of governments and industry.<\/p>\n<p>The wave of pending mine closures means industry and governments need to keep mine closure front of mind and work together to learn from each other\u2019s experience, gaining lessons from previous closures to address the outstanding challenges.<\/p>\n<p>Both ICMM and IGF are supporting this process with the development of best practice guidance, trainings (and training materials), and facilitating discussions at the regional level to drive post-closure planning.<\/p>\n<hr \/>\n<p><em>The International Council on Mining and Metals (ICMM) today brings together 28 mining and metal companies and over 36 regional and commodities associations to strengthen environmental and social performance and enhance mining\u2019s contribution to society. Visit <\/em><a href=\"http:\/\/www.icmm.com\"><em>www.icmm.com<\/em><\/a><em>.<\/em><\/p>\n<p><em>The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development is a voluntary initiative supporting more than 75 nations committed to leveraging mining for sustainable development to ensure negative impacts are limited and financial benefits are shared. Visit <\/em><a href=\"http:\/\/www.igfmining.org\"><em>www.igfmining.org<\/em><\/a><em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"For mining to be truly sustainable, the industry must provide natural resources\u00a0without compromising the integrity of the environment or\u00a0the well-being of\u00a0local communities.\u00a0Well-planned and executed mine closure can help achieve this outcome.","protected":false},"author":1,"featured_media":2823,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"footnotes":""},"categories":[1],"tags":[36],"class_list":["post-3281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-mine-closure-and-post-mining-transition"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mine Closure Challenges for Government and Industry - 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