IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v14y2025i3p41-d1601696.html
   My bibliography  Save this article

Environmental and Closure Costs in Strategic Mine Planning, Models, Regulations, and Policies

Author

Listed:
  • David Oliveros-Sepúlveda

    (Escola Politècnica Superior d’Enginyeria de Manresa, Universitat Politècnica de Catalunya, 08242 Manresa, Spain)

  • Marc Bascompta-Massanés

    (Escola Politècnica Superior d’Enginyeria de Manresa, Universitat Politècnica de Catalunya, 08242 Manresa, Spain)

  • Giovanni Franco-Sepúlveda

    (Grupo de Investigación en Planeamiento Minero–GIPLAMIN, Facultad de Minas, Universidad Nacional de Colombia, Medellín 050034, Colombia)

Abstract

This study explores the evolution of mine planning, with particular emphasis on the integration of environmental and social factors in alignment with the sustainable development. Traditionally, mine planning emphasized technical and economic variables, often overlooking environmental and social impacts. However, the increasing need to align with the Sustainable Development Goals (SDGs) has prompted a shift toward broader definitions that incorporate these factors into resource planning. This paradigm change is crucial for managing risks related to project profitability, which now include environmental considerations. The article also examines how government policies and corporate strategies, including Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) frameworks have evolved to address these impacts. A review of the literature published over the last 25 years identifies four main thematic areas: (1) inclusion of environmental costs in mine planning, (2) quantitative models for calculating environmental and closure costs, (3) legal frameworks in mining, and (4) innovations in public policies. This study underscores the need for a comprehensive approach in mine planning that balances economic, social, and environmental considerations to ensure sustainability and mitigate risks associated with mine closure and environmental remediation.

Suggested Citation

  • David Oliveros-Sepúlveda & Marc Bascompta-Massanés & Giovanni Franco-Sepúlveda, 2025. "Environmental and Closure Costs in Strategic Mine Planning, Models, Regulations, and Policies," Resources, MDPI, vol. 14(3), pages 1-29, February.
    • Handle: RePEc:gam:jresou:v:14:y:2025:i:3:p:41-:d:1601696
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/14/3/41/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/14/3/41/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Espinoza, R. David & Rojo, Javier, 2017. "Towards sustainable mining (Part I): Valuing investment opportunities in the mining sector," Resources Policy, Elsevier, vol. 52(C), pages 7-18.
    2. Lin, Boqiang & Zhou, Yicheng, 2021. "Does fiscal decentralization improve energy and environmental performance? New perspective on vertical fiscal imbalance," Applied Energy, Elsevier, vol. 302(C).
    3. Mancini, Lucia & Sala, Serenella, 2018. "Social impact assessment in the mining sector: Review and comparison of indicators frameworks," Resources Policy, Elsevier, vol. 57(C), pages 98-111.
    4. Morales, Nelson & Mancilla, Diego & Miranda, Roberto & Vallejos, Javier, 2022. "A fast method to develop an optimal operational sublevel stope design," Resources Policy, Elsevier, vol. 77(C).
    5. Heydari, Mehrnoosh & Osanloo, Morteza, 2024. "Untangling the complex web of environmental, social, and economic impacts in deep and large-scale open-pit mining projects using a dynamic modeling framework," Resources Policy, Elsevier, vol. 90(C).
    6. Makhmudova, Gulzhan & Matsui, Kenichi, 2019. "“The remediation policy after mining works in the Kyrgyz Republic”," Resources Policy, Elsevier, vol. 61(C), pages 304-310.
    7. Zhang, Kun & Zhang, Zong-Yong & Liang, Qiao-Mei, 2017. "An empirical analysis of the green paradox in China: From the perspective of fiscal decentralization," Energy Policy, Elsevier, vol. 103(C), pages 203-211.
    8. Zhang, Shengfang & Li, Yilong & Xu, Chenyang & Xiong, Zhenxing, 2024. "Does fiscal decentralization reduce environmental degradation through mitigating resource mismatch and digital transformation? Evidence from China's resource-based cities," Resources Policy, Elsevier, vol. 95(C).
    9. Lamghari, Amina & Dimitrakopoulos, Roussos, 2016. "Network-flow based algorithms for scheduling production in multi-processor open-pit mines accounting for metal uncertainty," European Journal of Operational Research, Elsevier, vol. 250(1), pages 273-290.
    10. Lima, Ana T. & Mitchell, Kristen & O’Connell, David W. & Verhoeven, Jos & Van Cappellen, Philippe, 2016. "The legacy of surface mining: Remediation, restoration, reclamation and rehabilitation," Environmental Science & Policy, Elsevier, vol. 66(C), pages 227-233.
    11. Jélvez, Enrique & Morales, Nelson & Nancel-Penard, Pierre & Cornillier, Fabien, 2020. "A new hybrid heuristic algorithm for the Precedence Constrained Production Scheduling Problem: A mining application," Omega, Elsevier, vol. 94(C).
    12. Carlos Andrés Vergara Tamayo & Andrés Felipe González Quesada & Carlos Andrés González Coronado, 2013. "Evaluación de impacto ambiental y estudios previos a una valoracion contingete. Caso la Colosa, Cajamarca, Tolima, Colombia," Ensayos de Economía 12241, Universidad Nacional de Colombia Sede Medellín.
    13. Del Castillo, M. Fernanda & Dimitrakopoulos, Roussos, 2019. "Dynamically optimizing the strategic plan of mining complexes under supply uncertainty," Resources Policy, Elsevier, vol. 60(C), pages 83-93.
    14. Gudrun Franken & Philip Schütte, 2022. "Current trends in addressing environmental and social risks in mining and mineral supply chains by regulatory and voluntary approaches," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(3), pages 653-671, December.
    15. Sergey Zhironkin & Dawid Szurgacz, 2021. "Mining Technologies Innovative Development: Economic and Sustainable Outlook," Energies, MDPI, vol. 14(24), pages 1-9, December.
    16. Youmanli Ouoba, 2023. "Gold companies and local economic sustainability: the case of Kalsaka Mining SA in Burkina Faso," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 12(1), pages 79-95, January.
    17. Gilani, Seyyed-Omid & Sattarvand, Javad & Hajihassani, Mohsen & Abdullah, Shahrum Shah, 2020. "A stochastic particle swarm based model for long term production planning of open pit mines considering the geological uncertainty," Resources Policy, Elsevier, vol. 68(C).
    18. Irarrazaval, Felipe, 2022. "Social protest at mining territories: Examining contentious politics at mining districts in Chile," Resources Policy, Elsevier, vol. 78(C).
    19. Jiang, Wenbing & Hou, Xiangding & Du, Lei, 2024. "Has soil regulation policy reduced environmental violations by mining firms?," Resources Policy, Elsevier, vol. 96(C).
    20. Ştefănescu, Lucrina & Alexandrescu, Filip, 2020. "Environmental protection or subversion in mining? Planning challenges, perspectives and actors at the largest gold deposit in Europe," Land Use Policy, Elsevier, vol. 95(C).
    21. Bainton, Nicholas & Holcombe, Sarah, 2018. "A critical review of the social aspects of mine closure," Resources Policy, Elsevier, vol. 59(C), pages 468-478.
    22. Hilson, Gavin & Maconachie, Roy, 2020. "For the Environment: An Assessment of Recent Military Intervention in Informal Gold Mining Communities in Ghana," Land Use Policy, Elsevier, vol. 96(C).
    23. Osanloo, M. & Rashidinejad, F. & Rezai, B., 2008. "Incorporating environmental issues into optimum cut-off grades modeling at porphyry copper deposits," Resources Policy, Elsevier, vol. 33(4), pages 222-229, December.
    24. John R. Owen & Vlado Vivoda & Deanna Kemp, 2020. "Country-level governance frameworks for mining-induced resettlement," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 4907-4928, June.
    25. Mihaela Onofrei & Florin Oprea & Corneliu Iaţu & Lenuţa Cojocariu & Sorin Gabriel Anton, 2022. "Fiscal Decentralization, Good Governance and Regional Development—Empirical Evidence in the European Context," Sustainability, MDPI, vol. 14(12), pages 1-15, June.
    26. Okombi, Idrys Fransmel & Mampieme, Vaccili Belneche, 2024. "Cyclicality of public debt in developing countries: Does dependence on natural resources matter?," Resources Policy, Elsevier, vol. 96(C).
    27. Ma, Siqi & Wang, Canghong & Liu, Jiaze & Zhu, Liang & Jhonson, Andrew, 2024. "Towards green extraction: Assessing the social and economic progress and challenges of green mining in China for policy formulation," Resources Policy, Elsevier, vol. 96(C).
    28. Liping Chen & Jie Yang & Wei Liu, 2015. "Global mining governance evaluation methods," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 28(3), pages 123-127, November.
    29. Shao, Shuai & Razzaq, Asif, 2022. "Does composite fiscal decentralization reduce trade-adjusted resource consumption through institutional governance, human capital, and infrastructure development?," Resources Policy, Elsevier, vol. 79(C).
    30. Isacowitz, Jenna Jade & Schmeidl, Susanne & Tabelin, Carlito, 2022. "The operationalisation of Corporate Social Responsibility (CSR) in a mining context," Resources Policy, Elsevier, vol. 79(C).
    31. He, Qichun, 2015. "Fiscal decentralization and environmental pollution: Evidence from Chinese panel data," China Economic Review, Elsevier, vol. 36(C), pages 86-100.
    32. Orihuela, José Carlos & Mendieta, Arturo & Pérez, Carlos & Ramírez, Tania, 2021. "From paper institutions to bureaucratic autonomy: Institutional change as a resource curse remedy," World Development, Elsevier, vol. 143(C).
    33. Brannlund, Runar & Lundgren, Tommy, 2009. "Environmental Policy Without Costs? A Review of the Porter Hypothesis," International Review of Environmental and Resource Economics, now publishers, vol. 3(2), pages 75-117, September.
    34. Marmolejo Cervantes, Miguel Ángel & Garduño-Rivera, Rafael, 2022. "Mining-energy public policy of lithium in Mexico: Tension between nationalism and globalism," Resources Policy, Elsevier, vol. 77(C).
    35. Adrien Rimélé, M. & Dimitrakopoulos, Roussos & Gamache, Michel, 2018. "A stochastic optimization method with in-pit waste and tailings disposal for open pit life-of-mine production planning," Resources Policy, Elsevier, vol. 57(C), pages 112-121.
    36. Li, Yongbo & Barrueta Pinto, Mark Christhian & Kumar, D. Thresh, 2023. "Analyzing sustainability indicator for Chinese mining sector," Resources Policy, Elsevier, vol. 80(C).
    37. Gulley, Andrew L., 2017. "Valuing environmental impacts of mercury emissions from gold mining: Dollar per troy ounce estimates for twelve open-pit, small-scale, and artisanal mining sites," Resources Policy, Elsevier, vol. 52(C), pages 266-272.
    38. Lechner, Alex Mark & Kassulke, Owen & Unger, Corinne, 2016. "Spatial assessment of open cut coal mining progressive rehabilitation to support the monitoring of rehabilitation liabilities," Resources Policy, Elsevier, vol. 50(C), pages 234-243.
    39. Amoako, Kwame Oduro & Lord, Beverley R. & Dixon, Keith, 2021. "Narrative accounting for mining in Ghana: An old defence against a new threat?," Resources Policy, Elsevier, vol. 74(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xianpu Xu & Shan Li, 2022. "Neighbor-Companion or Neighbor-Beggar? Estimating the Spatial Spillover Effects of Fiscal Decentralization on China’s Carbon Emissions Based on Spatial Econometric Analysis," Sustainability, MDPI, vol. 14(16), pages 1-26, August.
    2. Zeng, Lanyan & Liu, Shi Qiang & Kozan, Erhan & Corry, Paul & Masoud, Mahmoud, 2021. "A comprehensive interdisciplinary review of mine supply chain management," Resources Policy, Elsevier, vol. 74(C).
    3. Maxwell Chukwudi Udeagha & Marthinus Christoffel Breitenbach, 2023. "Revisiting the nexus between fiscal decentralization and CO2 emissions in South Africa: fresh policy insights," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-46, December.
    4. Zhou, Shiyu & Luo, Weijie, 2024. "Pollution consequences of vertical fiscal imbalance: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 85-97.
    5. Wenke Wang & Xiaoqiong You & Kebei Liu & Yenchun Jim Wu & Daming You, 2020. "Implementation of a Multi-Agent Carbon Emission Reduction Strategy under the Chinese Dual Governance System: An Evolutionary Game Theoretical Approach," IJERPH, MDPI, vol. 17(22), pages 1-21, November.
    6. Sailian Xia & Daming You & Zhihua Tang & Bo Yang, 2021. "Analysis of the Spatial Effect of Fiscal Decentralization and Environmental Decentralization on Carbon Emissions under the Pressure of Officials’ Promotion," Energies, MDPI, vol. 14(7), pages 1-21, March.
    7. Kuo Zhou & Baicheng Zhou & Mengmeng Yu, 2020. "The impacts of fiscal decentralization on environmental innovation in China," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1690-1710, December.
    8. Liangliang Liu & Yonghao Guan, 2023. "How do fiscal decentralization and intergovernmental fiscal transfers affect energy consumption in China?," Energy & Environment, , vol. 34(5), pages 1228-1242, August.
    9. Wei Dong & Xiaomi Hou & Guowei Qin, 2023. "Research on the Carbon Emission Reduction Effect of Green Taxation under China’s Fiscal Decentralization," Sustainability, MDPI, vol. 15(5), pages 1-19, March.
    10. Shan, Shan & Ahmad, Munir & Tan, Zhixiong & Adebayo, Tomiwa Sunday & Man Li, Rita Yi & Kirikkaleli, Dervis, 2021. "The role of energy prices and non-linear fiscal decentralization in limiting carbon emissions: Tracking environmental sustainability," Energy, Elsevier, vol. 234(C).
    11. Maxwell Chukwudi Udeagha & Edwin Muchapondwa, 2023. "Achieving regional sustainability and carbon neutrality target in Brazil, Russia, India, China, and South Africa economies: Understanding the importance of fiscal decentralization, export diversificat," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2620-2635, August.
    12. Ayoub Zeraibi & Atif Jahanger & Muhammad Usman & Daniel Balsalobre-Lorente & Tomiwa Sunday Adebayo & Mustafa Kamal, 2024. "The role of fiscal decentralization and technological innovations in curbing sulfur dioxide emissions: formulating SDGs policies for China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 19659-19684, August.
    13. Bryan Salgado-Almeida & Daniel A. Falquez-Torres & Paola L. Romero-Crespo & Priscila E. Valverde-Armas & Fredy Guzmán-Martínez & Samantha Jiménez-Oyola, 2022. "Risk Assessment of Mining Environmental Liabilities for Their Categorization and Prioritization in Gold-Mining Areas of Ecuador," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    14. Wang, Shanyong & Ma, Ling, 2024. "Fiscal decentralisation and renewable energy development: Inhibition or promotion?," Energy, Elsevier, vol. 311(C).
    15. Del Castillo, M. Fernanda & Dimitrakopoulos, Roussos, 2019. "Dynamically optimizing the strategic plan of mining complexes under supply uncertainty," Resources Policy, Elsevier, vol. 60(C), pages 83-93.
    16. Muhammad Tufail & Lin Song & Weizheng Wang & Xiao Gu & Salahuddin Khan, 2024. "Race to Top or Race to Bottom Approach: Disaggregated Effect of Fiscal Decentralization and Its Implications for Consumption-Based Carbon Emissions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 15243-15277, September.
    17. Keliang Wang & Bin Zhao & Tianzheng Fan & Jinning Zhang, 2022. "Economic Growth Targets and Carbon Emissions: Evidence from China," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    18. Xiangfeng Ji & Muhammad Umar & Shahid Ali & Wajid Ali & Kai Tang & Zeeshan Khan, 2021. "Does fiscal decentralization and eco‐innovation promote sustainable environment? A case study of selected fiscally decentralized countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 79-88, January.
    19. Berberoglu, Yalcin & Mangla, Sachin Kumar & Kazancoglu, Yigit, 2024. "Towards sustainable mining in an emerging economy: Assessment of sustainability challenges," Resources Policy, Elsevier, vol. 97(C).
    20. Izabela Jonek-Kowalska & Marian Turek, 2017. "Dependence of Total Production Costs on Production and Infrastructure Parameters in the Polish Hard Coal Mining Industry," Energies, MDPI, vol. 10(10), pages 1-22, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jresou:v:14:y:2025:i:3:p:41-:d:1601696. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.