Mine closure liability as an environmental, social, and governance concept: using a multi-dimensional approach to mine closure liability reduction

Authors: Gregory, G; Guerra, M; Pedlar, R; Kuzyk, T

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DOI https://doi.org/10.36487/ACG_repo/2415_80

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Gregory, G, Guerra, M, Pedlar, R & Kuzyk, T 2024, 'Mine closure liability as an environmental, social, and governance concept: using a multi-dimensional approach to mine closure liability reduction', in AB Fourie, M Tibbett & G Boggs (eds), Mine Closure 2024: Proceedings of the 17th International Conference on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 1125-1132, https://doi.org/10.36487/ACG_repo/2415_80

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Abstract:
Environmental, social, and governance (ESG) practices and expectations have become central to discussions surrounding project development and operations, both large and small. Miners are increasingly recognising the importance of addressing these aspects to safeguard their reputations, uphold corporate values, manage risks effectively, and nurture relationships with both internal and external stakeholders. Consequently, ESG considerations now play a significant role in mine closure and transition planning. While discussions about liability during mine closure have traditionally focused on financial tools and cost projections, this paper argues that understanding mine closure liability as a multi-dimensional concept is crucial for strategic planning and more accurate closure liability estimates. Drawing on our experience in integrated closure and reclamation planning, we illustrate that accurately accounting for and mitigating closure-related liabilities – a primary objective in all projects and regions – necessitates the explicit integration of ESG factors in cost estimation, as well as design and other technical aspects. We propose a conceptual framework for reducing liability, emphasising that proactive management of ESG issues is essential for achieving sustainable closure and transition planning.

Keywords: liability reduction, risk management, closure planning, ESG

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