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