Authors: Brock, D; Slight, M; McCombe, C

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DOI https://doi.org/10.36487/ACG_rep/1915_124_Brock

Cite As:
Brock, D, Slight, M & McCombe, C 2019, 'Financial concepts for mine closure: information document', in AB Fourie & M Tibbett (eds), Mine Closure 2019: Proceedings of the 13th International Conference on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 1587-1592, https://doi.org/10.36487/ACG_rep/1915_124_Brock

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Abstract:
The International Council on Mining and Metals (ICMM) is an international organisation that brings together 27 mining and metal companies and over 30 regional and commodities associations to strengthen environmental and social performance and enhance mining’s contribution to society. The ICMM Closure Working Group, made up of closure specialists from ICMM company members, developed an information document on the financial concepts for mine closure for use by ICMM members and the wider industry to communicate and enhance the understanding of key financial concepts as they relate to mine closure. Several types of cost estimates are used to characterise the financial aspects of closure. As understanding of these approaches vary, consistent communication and engagement within companies and with external stakeholders is challenging and limits the industry’s ability to benchmark performance. It is important for mining companies to make clear distinctions between the different types of cost estimates as they serve different purposes. While much of the underlying source information for each of these estimates should be based on the most recent version of the mine closure plan, the numerical values are typically different as each responds to different user needs and will be prepared under different sets of frameworks. Understanding the differences and points in common for these types of estimates is key to the efficient use of information and to providing useful estimates. The document defines and contextualises the key concepts related to closure costing, accounting and reporting requirements, and the purpose of each. The document is intended to provide general conceptual guidance across a wide range of factual circumstances.

Keywords: closure costing, financial provision

References:
International Council on Mining and Metals 2005, Financial Assurance for Mine Closure, London
International Council on Mining and Metals 2019, Integrated Mine Closure: Good Practice Guide, London




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