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Are mining companies mature for mine closure? An approach for evaluating preparedness

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  • Galo, David de Barros
  • dos Anjos, José Ângelo Sebastião Araújo
  • Sánchez, Luis Enrique

Abstract

Evaluating how well a mining company is prepared to close an operating mine can help in managing the risks of not achieving closure goals and intended future site conditions. Considering international best practices recommendations, we developed and tested a procedure to evaluate, during the operational phase, the preparedness of companies to close a mine. Based on the principles of physical stability, chemical stability, socioeconomic transition, and post-mining land use, a weighted checklist containing 69 best practice statements was tested in three operating metal mines in Northeastern Brazil. The best practice statements and their respective weights were submitted to a 12-member expert group. The practices are organized in four assessment areas: (i) mine closure documents, (ii) physical and chemical stability, (iii) costs and financial provisioning, and (iv) community engagement and social transition. In applying the tool, evidence is collected by document review, interviews and site inspections, and evaluated using professional judgement to determine a level of achievement for each group of practices. A preparedness index is then calculated and a preparedness level is obtained. All field-tested mines ranked high for cost and financial provisioning, possibly reflecting they are publicly-owned companies, but ranked in the medium range for the three other assessment areas, indicating a risk of negative legacy. Their preparedness for closure should be a matter of concern for investors, regulators and communities.

Suggested Citation

  • Galo, David de Barros & dos Anjos, José Ângelo Sebastião Araújo & Sánchez, Luis Enrique, 2022. "Are mining companies mature for mine closure? An approach for evaluating preparedness," Resources Policy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:jrpoli:v:78:y:2022:i:c:s0301420722003634
    DOI: 10.1016/j.resourpol.2022.102919
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    References listed on IDEAS

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