Slide 1: A global view of integrated closure and legacy planning
18 September 2013 A global view of integrated closure and legacy planning Mine Closure 2013, Eden Project, Cornwall Dr. William Adams General manager, Legacy and Closure
Slide 2: A changing business climate
A changing business climate • The business climate is changing − Climate change driving public awareness − Economic development and population pressure − Shifts in regulation • Sustainable development – an overplayed card • But the concept of sustainable development is driving a more holistic and lo
Slide 3: Business case for closure planning
Business case for closure planning • Significant threat associated with poor closure planning, but significant opportunity arising from good integrated planning − Closure costs represent a significant financial liability (total provisions as at 31 December 2012 amounted to US$8,900 million) − Legal
Slide 4: Our approach – the Closure programme
Our approach – the Closure programme • Key components of the Rio Tinto Closure programme include: − Mandated Group Closure standard with supporting guidance notes; − The governance role of the Closure Steering Committee, supported by a Closure Working Group; − Assurance processes including a closure
Slide 5: Closure programme – Closure standard
Closure programme – Closure standard • Group Closure standard addresses all relevant aspects and impacts of closure in an integrated and multidisciplinary way • Provides a fully scoped and accurate cost of closure to the company that is documented and auditable • Requirements of the standard include
Slide 6: Closure programme – governance
Closure programme – governance • Multidisciplinary Closure Steering Committee established in 2005 to oversee the Closure Management programme • Accountable for ensuring that the Closure programme drives improved closure planning throughout the Group, including the development of financial provisions
Slide 7: Closure programme – assurance
Closure programme – assurance • Closure plan review programme − Identifies improvement opportunities − Provides assurance that closure cost estimates are based on a comprehensive scope of activities • Closure management plans are reviewed at least every seven years throughout the life of the operati
Slide 8: Improvement opportunities
Improvement opportunities • More than 80 per cent of closure review findings are related to four disciplines: Cost engineering, Multidisciplinary, Environment and Communities
Slide 9: Improvement opportunities
Improvement opportunities • Ongoing focus areas include: − Cost engineering − Completeness of scope as the basis for accurate cost estimates − Correct application of unit rates, quantities and contingency − Multidisciplinary − Broader analysis of closure options and post-closure land uses that take
Slide 10: Framework – closure strategy
Framework – closure strategy • Baseline studies of the biological, physical, socio-economic and cultural environments • Assessments of issues and risks across the range of closure outcomes • Determining a long-term vision that describes the site and its surrounds after operations have finished • Set
Slide 11: Framework – implementing closure plan
Framework – implementing closure plan Requirements • Implementing rigorous planning and project management processes • Developing solutions to mitigate potential liabilities • Undertaking technical and socio-economic work programmes to better understand risk and reduce uncertainty • Undertaking prog
Slide 12: Sustainable development and closure – life cycle planning
Sustainable development and closure – life cycle planning Life cycle stage Closure activities Project development • Closure plan at feasibility stage for funding approval (exploration, prefeasibility, • Identify closure risks and develop plan feasibility) • Design mine or operation to minimise impac
Slide 13: Project development
Project development • Simandou, Oyu Tolgoi, Bunder etc − Early consideration of closure aspects and impacts – vision for closure − Research knowledge base (social, environmental etc) − Stakeholder engagement Stakeholders are requiring an increasing level of detail in closure plans for new projects
Slide 14: Closure planning during active operations
Closure planning during active operations • Closure planning is integrated into operational activities on an ongoing basis, including progressive rehabilitation of disturbed vegetation and remediation of contaminated areas, rather than waiting until eventual closure to start this work Richards Bay,
Slide 15: Closure planning during active operations
Closure planning during active operations Richards Bay, SA
Slide 16: Integrated closure planning
Integrated closure planning Build waste dumps to final landforms Regular interaction between mine to avoid rework at closure planners and environment teams to integrate landform designs
Slide 17: Legacy management
Legacy management • The legacy remaining after closure, (environmental, social and economic) is a fundamental indicator of the sustainability of a mining or minerals operation • Team of specialists manages our legacy sites to ensure our Closure standard and sustainable development principles are app
Slide 18: Westland Ilmenite
Westland Ilmenite • Pilot scale dredge mining acquired in 2000 • 80 ha of freehold land – east coast of New Zealand’s South Island • Vision – rehabilitate land and transfer to Department of Conservation to preserve biodiversity and coastal vegetation • Rich biodiversity − Only nesting ground of the
Slide 19: Anglesey
Anglesey • Closure of the Anglesey Aluminium Metal Limited smelter in Wales was implemented in 2009 following constraints on access to power • Employee obligations were important considerations when assessing closure options • Management of waste during the life of the operation minimised on site co
Slide 20: Barneys Canyon – oxide dumps
Barneys Canyon – oxide dumps Oxide dumps in 2000 under construction Oxide dumps today – full vegetation cover, low metals in vegetation tissue, neutral pH and low total dissolved solids and metals in seepage
Slide 21: Barneys Canyon sulphide repository
Barneys Canyon sulphide repository Sulphide repository Repository following rehabilitation
Slide 22: Flambeau Mine
Flambeau Mine 180 acre site
Slide 23: Flambeau Mine
Flambeau Mine Backfilling the entire pit to ground level with lime treated waste rock
Slide 24: Flambeau Mine
Flambeau Mine Establishment of wildlife habitat with woodland grasslands and wetlands Ongoing focus on monitoring and maintenance
Slide 25: Ridgeway Mine
Ridgeway Mine Ridgeway completed operations in November 1999, State and national regulatory recognition for best focusing on reclamation of the tailings impoundment, practices in open pit mining and tailings reclamation two pit lakes and wetland systems provides valuable training opportunities for t
Slide 26: Auzat Aluminium Smelter
Auzat Aluminium Smelter Auzat closed in 2003 following substantial social unrest The site has been transformed into a professional sports due to the then owner, Pechiney, closing several other complex; a solution strongly supported by the Mayor sites in the region and the local community
Slide 27: Closure planning during modernisation
Closure planning during modernisation • Kitimat modernisation − Closure of old technology smelter and construction of new smelter at the same location − Maintain socio-economic input into the region − Improve environmental performance − Maximise use of hydro-power
Slide 28: Summary
Summary • Key elements for sustainable life of mine planning − A strong corporate culture that promotes sustainability and social responsibility − Closure seen as a core business function − Equitable integration of environmental, social and economic factors − Early closure planning − Stakeholder con
Slide 29: Summary
Summary • Environmental and social risk in constant state of change • Achieving sustainable outcomes in mining requires: − A strategic approach − Willingness to engage and work with all stakeholders − Flexibility in working collaboratively across multidisciplinary boundaries − Long term commitment b