mine closure lessons learned

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MINE CLOSURE
CHALLENGES IN THE 21 ST
CENTURY
A SOUTH AFRICAN
PERSPECTIVE
Hennie Geldenhuys
23 October 2014
CONTENT
Background
Development of the South African Mine Closure Legislative
Framework
• Historical Legislation
• Current Legislation
Advisory &
Technical
st Studies
Mine Closure in the 21 Century
Mine Closure Toolbox
Engineering
Design
Services
Resourcing and Management of Mine Closure Planning and
Execution
Critical Success Factors for Mine Closure
Mine Closure Lessons Learned
Questions/Group Discussion
MINING THEN AND NOW
This is how it all started …
• Discovery of diamonds at
Kimberley in 1869
• Discovery of the Main
Reef in 1886
……………and much more
Advisory &
Technical
Studies
Engineering
Design
Services
…and where we are now
HISTORICAL LEGISLATION
The firsts ……
The Mines and Works Act 27 of 1956.
Amendment in 1977 dealing with restoration of
mining land
The Minerals Act 50 of 1991
Environmental Management Programme (EMP)
Social and Socio-economic aspects introduced by the
EMP Aide Memoire
Closure Certificate
Closure
Certificate
Financial Provision for Closure
………in our historical mine closure legislative framework
CURRENT LEGISLATION
The South African Mine Closure legislative framework is comprehensive……
Constitution of South Africa, 1996
The Mineral and Petroleum Resources Development Act, 2002
Advisory &
National Environmental Management
Act, 1989
Other Supporting Legislation
Technical
Studies

The Mine Health and Safety Act, Act Engineering
No 29 of 1996 (MHSA);

The National Water Act, Act No 36 of 1998
(NWA).
Services

National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004);

National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004);

National Environmental Management: Protected Areas Amendment Act, 2004;

National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008).
Design
…….there is no escape
MINE CLOSURE IN THE 21ST CENTURY
Closing a mine in a sustainable manner…….
The Elusive Closure Certificate
Closure
Certificate
End state requirements for all dimensions
associated with mine closure includes:

The elimination of harm to human health and safety;

Environmental restoration and sustainable land use;

Restoration concurrent with operations;

Labour and Industrial relations aspects;

Social and community aspects, and

Financial provision for closure
The enterprise risk dimension removes the focus
from the elusive closure certificate (Do what is best
for the company)
……..is a key challenge to the mining industry
21ST CENTURY MINE CLOSURE TOOLBOX
The ICMM mine closure toolkit provides a suite of tools…...
ICMM Mine Closure Planning Toolkit
Tool 1:
Tool 2:
Tool 3:
Tool 4:
Tool 5:
Tool 6:
Tool 7:
Tool 8:
Tool 9:
Tool 10:
Tool 11:
Tool 12:
Tool 13:
Stakeholder Engagement
Advisory &
Technical
Community Development
Studies
Company/Community Interactions
to Support Integrated Closure Planning
Risk/Opportunity Assessment and Management
Knowledge Platform Mapping
Engineering
Typical Headings for Contextual
Information in a Conceptual Closure Plan
Design
Services
Goal Setting
Brainstorming Support Table for Social Goal Setting
Brainstorming Support Table for Environmental Goal Setting
Cost Risk Assessment for Closure
Change Management Worksheet
The Domain Model
Biodiversity Management
…..…that can be brought
to bear in formulating well-considered decisions when planning for closure
21ST CENTURY MINE CLOSURE TOOLBOX
These toolboxes recognise the need for preliminary closure plans early in the
life cycle of a mine ……
Company proprietary mine closure toolboxes
Advisory &
Technical
Studies
• Strategic mine closure planning guides the development of a Post Closure
Vision
• Operational tools guide the
Engineering
Design
assessment
of
Services
mine closure readiness
• Further tools guide the closing of gaps to prepare the mine for eventual closure
in a sustainable manner.
……which is then refined by an iterative process during the operational phase
MINE CLOSURE PROCESS RESOURCING AND MANAGEMENT
The ICMM and proprietary toolkits deal with mine closure technology …...
Mine closure planning and execution is a complex process and in
many ways as complex as a project feasibility study process that
culminates in a construction operation (Dr John Groom)
Engineering
Design
Services
Deploy Project Management Principles and resources
skilled in project management for mine closure
planning and execution.
…..…but provides little guidance on process resourcing and management
MINE CLOSURE PROCESS MANAGEMENT
Do not under estimate …..
Initiation: The Closure Project Charter
Brief document at the outset of mine closure planning but it should be subject to
progressive elaboration as closure execution draws closer.
Scope Definition and Work
Advisory &
Technical
Studies Structure
Breakdown

Land restoration and Infrastructure rehabilitation deliverables;

Labour and IR deliverables;

Socio-economic deliverables;

Asset disposal deliverables;

Administrative and legal deliverables;

Process and management deliverables (EPCM)
Engineering
Design
Services
..…the process deliverables associated with mine closure
MINE CLOSURE PROCESS MANAGEMENT
The execution plan…...
The Closure (Project) Execution Plan

Research, Development, Engineering and Design;

Scope Management Plan;
Advisory &
Technical
Studies

Cost Management Plan;

Closure Timeline (schedule) Management Plan;

The all-important Communication Management Plan;

Quality Management during Closure;

Procurement, Contract Management and Contract Administration;

Human Resources Management;

Closure Project Risk Management;

Closure Project Wide Integration and Interface management.
…..needs to be in place ahead of mine closure execution
MINE CLOSURE PROCESS MANAGEMENT
Process flow diagrams are useful..…
Advisory &
Technical
Studies
Engineering
Design
Services
..…to describe project execution processes
MINE CLOSURE PROCESS MANAGEMENT
Advisory &
Technical
Studies
Engineering
Design
Services
MINE CLOSURE PROCESS MANAGEMENT
CRITICAL SUCCESS FACTORS FOR MINE CLOSURE
Critical success factors describe….…
 Mine closure within budget, within planned timeline and compliant to
required quality standards to support sustainability;
 Obtain a MRPDA section 43 closure certificate;
 Contingent company risks and liabilities minimised and fully funded;
 An after mine closure social plan for each affected employee;
Engineering
Design
Services
 A legacy of continued sustainable local economic activity after mine
closure;
 A comprehensive inventory of lessons learned during mine closure,
and
 Retention of a comprehensive closure document archive.
…… the criteria for measuring the success of the project outcome
MINE CLOSURE LESSONS LEARNED
Effective communication is the cornerstone….…
Plan for Closure and Perform Concurrent Rehabilitation/restoration
Plan for closure as early as possible in the life cycle of a mining project.
Design the mine and associated infrastructure with closure in mind.
Wear a closure hat while operating the mine and actively pursue restoration
and rehabilitation while the mine is still operating.
Advisory &
Technical
Studies
with requisite
The Closure Project Team
• Select key operating staff
knowledge and experience of the
operation to join the closure project team;
• EPCM consulting skills and capacity is key.
Engineering
Design
Services
Project Management Methodology
Follow a structured, appropriately resourced project management approach
and methodology with mine closure.
Enterprise Risk
Consider the longer term risk that mine closure poses to the business, or
enterprise, and discount this risk during planning and execution of mine
closure. This approach removes the centre of focus from obtaining a
Closure Certificate to doing what is best for company sustainability
……of successful mine closure
MINE CLOSURE LESSONS LEARNED
Beware of serious under estimation…
Sustainable closure of Tailings Storage Facilities
Do not under-estimate the significant technical and financial challenges
associated with the rehabilitation and closure of Tailings Storage Facilities
Advisory &
Technical
Studies
Engineering
Design
Services
…of tailings facility closure cost
MINE CLOSURE LESSONS LEARNED
The absolute importance of a well functioning future forum…
Future Forum
The Future Forum is described in the Department of Mineral
Resources (DMR) published Guideline for Submission of a
Social and Labour Plan.
What is Operational and what is Closure
Clear definitions to establish battery limits between
operational and closure activities areEngineering
essential
during mine
Design
Services
closure planning.
Asset Protection
Asset protection of outlying mining infrastructure after
decommissioning is becoming increasingly challenging
…cannot be over-emphasised
MINE CLOSURE LESSONS LEARNED
Is only clean water an asset?…
Water Management
Many mining companies are faced with significant, yet un-quantified long term
liabilities associated with water resources
Advisory & and water pollution. Long term post
Technical
mine closure water treatment appears
inevitable.
Studies
Water treatment is an end of pipe solution that can be minimised by innovative
Engineering
alternative engineering during planningDesign
and operation of a mine. Mining
companies are advised to identify andServices
actively manage water related risks
throughout the life cycle of a mine, to avoid onerous long term water treatment
after mine closure.
…and in future?
MINE CLOSURE LESSONS LEARNED
The value of redundant plant, infrastructure and steel structures …...
Disposal of Redundant Assets
Order of preference for sale of assets:

Complete installations/plants;

Plant circuits complete with associated
structures, power installations etc;

Individual pieces of equipment; Engineering

Structures and tanks;

Demolish, scrap and recycle.
For Sale
Design
Services
…..is often underestimated
THE END
QUESTIONS
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