A Practical Guidance on Financial Provision for Environmental Liabilities

3.4.2. MINING

Key factors to include in costing for mines and mining waste

Type of Operation

Costs

Mine

  • Monitoring , e.g. surface water, groundwater, air, gas, leachate, stability
  • Maintenance of monitoring equipment
  • Verification and reporting
  • Site security
  • Filling of void and removal of stockpiles
  • Reinstatement of culverted watercourse
  • Final capping
  • Landscaping
  • Surface water drainage
  • Water management
  • Plant decontamination

Mining waste

  • Monitoring, e.g. surface water, groundwater, air, gas, leachate, stability
  • Maintenance of monitoring equipment
  • Verification and reporting
  • Site security
  • Final capping
  • Landscaping
  • Surface water drainage
  • Plant decontamination

The online resources identified by the IMPEL project are summarised below.

Scotland: The Heads of Planning Scotland Position Statement on the Operation of Financial Mechanisms to Secure Decommissioning, Restoration and Aftercare of Development Sites (updated 2018). The statement considered the ‘measure and value’ option to be more effective for open cast coal sites and possibly landfill sites, and for the calculation of the quantum of bonds for mineral sites directs users to the  Restoration Guarantee Bonds for Opencast Coal Mines report, 2007.

Best Practice Guide on Restoration Liability Assessments for Surface Coal Mines, Welsh Government (2016)

https://gov.wales/sites/default/files/publications/2018-09/restoration-liability-assessments-surface-coal-mines.pdf

Queensland, Australia: Financial assurance security deposit for an environmental authority (2016)

There is guidance and spreadsheets for calculating the amount of financial provision for mining and for petroleum/gas.

Ireland: Guidance on assessing and costing environmental liabilities (2014)

The guidance covers foreseen and unforeseen liabilities for industrial and waste operations. It contains templates and examples and is accompanied by Guidance on assessing and costing environmental liabilities – Unit cost rates for verification and Guidance on assessing and costing environmental liabilities – frequently asked questions.   These can be found at the following link http://www.epa.ie/pubs/advice/licensee/fp/

EU: Guidelines on Financial Guarantees and Inspections for Mining Waste Facilities (2007)

EU: Guidelines for Mine Closure Activities and Calculation and Periodic Adjustment of Financial Guarantees, 2021

This EU-sponsored guidance on financial provision under the Extractive Waste Directive contains sections on how to calculate the amount of financial provision including information on principles, costs to be covered and review periods in various countries.

France: Order of 9 February 2004 on the determination of the amount of financial guarantees for the rehabilitation of quarries. https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=LEGITEXT000021711481

The order contains formulas for determining the amount of financial guarantee.

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