Wiid, GJ 2006, 'The Role of Closure Planning in the Environmental and Financial Reporting Processes for Mining Operations', in AB Fourie & M Tibbett (eds), Mine Closure 2006: Proceedings of the First International Seminar on Mine Closure
, Australian Centre for Geomechanics, Perth, pp. 513-524, https://doi.org/10.36487/ACG_repo/605_44
The mining industry is under increasing pressure to demonstrate its sustainability and adherence to the
requirements and expectations of the broader society in which it operates. The importance of sound
environmental risk management is in turn becoming critical to the management of mining operations. At the
same time there is a growing requirement for the disclosure of environmental performance data in a form
suitable for incorporation into the investment community’s valuation models.
Against this background, the issue of mine closure is increasingly being viewed as one of the more
significant problems associated with the mining industry. This, together with the increasing pressure on
mining companies to report on their financial performance, presents an opportunity to fundamentally change
the perception of the environmental management and closure planning functions.
The paper seeks to summarise recurring themes in criticisms of the environmental reporting and closure
planning processes and to link these themes to basic concepts of risk management and accounting theory.
The discussion of risk management and accounting concepts is intended to illustrate in practical terms how
the closure planning process may be linked to the financial reporting process.
The paper concludes by outlining how linking the closure planning and financial reporting processes will
affect the closure planning process. It is argued that closure plans will increasingly be compiled to the same
standards prescribed for the bankable feasibility assessments of mining projects themselves. Should this take
place, it will allow closure planning and management to play an increasingly significant role in the
environmental and financial risk management of mining operations.
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Environment Agency (2004) Environmental Disclosures in the Annual Reports and Accounts of Companies in the
The Role of Closure Planning in the Environmental and Financial
Reporting Processes for Mining Operations
524 Mine Closure 2006, Perth, Australia