From provision to decision: using closure costs to drive better business outcomes

Authors: Vaughan, K; Crumpler, R Download Paper Open access courtesy of:

DOI https://doi.org/10.36487/ACG_repo/2615_36

Cite As:
Vaughan, K & Crumpler, R 2026, 'From provision to decision: using closure costs to drive better business outcomes', in AB Fourie, G Boggs, J Heyes & M Tibbett (eds), Mine Closure 2026: Proceedings of the 19th International Conference on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 1-8, https://doi.org/10.36487/ACG_repo/2615_36



Abstract:
losure cost estimates are commonly developed to support financial provisioning and external reporting. While this function remains essential, a compliance-focused approach can limit the usefulness of closure costs in informing broader business decisions across the life of an asset. As closure liabilities grow in scale and influence, there is an increasing need for closure cost information to actively support risk-based and valuealigned decision-making. This paper explores how closure cost estimates can be repositioned as a decision-support tool to improve risk evaluation, option analysis and strategic trade-offs, rather than being treated as a static liability. Drawing on practical experience, key themes discussed include the role of governance in shaping estimation methodology and maturity, management of optimism bias, and transparency of uncertainty as critical enablers for improving the credibility and practical value of closure cost estimates, while maintaining consistency across assets. Practical mechanisms to address these challenges are outlined, including a practical framework for embedding closure cost considerations into business planning, with a focus on fit-for-purpose governance, clarity of intent, and alignment between estimated maturity and business needs. By shifting the focus from closure costs as an accounting outcome to closure costs as a decision input, robust, transparent and value-aligned closure outcomes can be supported.

Keywords: mine closure costs, decision-making, governance, risk and uncertainty, closure cost estimating

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