Transcript MMA Mine Closure Planning

DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Closure Planning
Life of Mine
and
Life of Plan
www.nt.gov.au/drdpifr
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Closure planning – why the confusion?
• There are 4 basic types that can be separated by the
following two questions:
1. Is it for business planning or regulatory
purposes?
2. What is the time frame being looked at, is it for
present or the projected future?
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Regulatory reporting
Short Term: Life of plan reporting
Long Term: Life of mine reporting
Business planning
Short Term: Present closure obligation
Long Term: Total projected obligation
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Dividing by purpose and time frame
• The key differences between business & regulatory
planning are:
– Who’s doing the work
– What the intention is
– What it includes
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Mining Management Plan requirements
• We ask for two types of plans – see our advisory
note
– Sec 6: Closure Planning is about Life of Mine
– Sec 8: Security Calculation is about Life of Plan
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Life of Plan
Regulatory reporting
Short Term: Life of plan reporting
Long Term: Life of mine reporting
• In this instance relates to the “life” of the current
approved MMP (section 8)
• It is used to support the calculation of the security bond
• It describes what activities need to be undertaken by a
third party to rehabilitate the site in the event of
premature closure of the mine site within the period of
the plan.
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Life of Plan Reporting
• Aspects to consider which are often misunderstood:
– The operator will not be undertaking the works
– Closure costs must not include any provision for
remedying future disturbance in the Life of Mine
plan
– A rehabilitation plan for the short term is not a
truncated Life of Mine plan
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Life of Mine
Regulatory reporting
Short Term: Life of plan reporting
Long Term: Life of mine reporting
• In this instance relates to the planned life of the
operation
• It describes what activities need to be undertaken by
the operator to rehabilitate the site through the
remaining mine life, closure and post closure monitoring
to planned relinquishment.
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
Life of Mine Reporting
• Aspects to consider:
– The operator will be undertaking the works
– Closure planning must include any future
disturbances
– The Life of Plan report will eventually coincide
with the Life of Mine report
– NPV calculations
DEPARTMENT OF REGIONAL DEVELOPMENT,
PRIMARY INDUSTRY, FISHERIES AND RESOURCES
What is common to both plans
•
•
•
•
Agreed end land use for the site
Risk based approach
The inclusion of a detailed schedule of works
The use of the contingency