Mining Legacies – Understanding
Life-of-Mine Across Time and Space
M Pepper1, C P Roche2 and G M Mudd3
ABSTRACT
The Australian mining industries approach to life-of-mine planning has improved
considerably in recent decades. It now needs to be matched by, and embedded in, mining
governance systems that utilise a comprehensive whole-of-mine-life approach within a
MXULVGLFWLRQDOLQGXVWU\DQGUHJLRQDOUHJLPHUDWKHUWKDQMXVWIRFXVLQJRQVSHFLÀFLPSDFWVLQ
isolation. The need for a more comprehensive approach is supported by the many mining
legacies, from historic, recent and some operating mine sites around Australia. There are
sites that are leaving enduring environmental, community and public health impacts that
are yet to be accurately assessed. While a number of these sites in Australia are estimated to
be more than 50 000, this is probably an underestimation, with a lack of data and different
state-based approaches complicating attempts to quantify mining legacies as a national
issue. Qualitative assessments about the extent and nature of mining legacy impacts on
nature and communities across Australia are also required if we are to understand and
avoid ongoing and future mining legacies.
This paper commences with an exploration of mining legacies as an umbrella term for
previously mined, abandoned, orphan, derelict or neglected sites. This is followed by a
discussion of the current status of mining legacies as an Australia-wide issue, contrasting
the Australian response with overseas examples. Common themes from past workshops are
explored recognising that mining legacies are a growing public policy issue and identifying
key ingredients for a successful response. Supporting this, and based on national data which
re-enforces the need for action, is the changing scale and intensity of mining in Australia that,
while lowering costs for mine operators, increases the liability that may eventually fall to the
state if mine sites are not rehabilitated effectively. Though a national issue, mining is a state
and territory responsibility, so the current approach to mining legacies is then examined
state-by-state. Given the widespread application and recent changes to bonds and levies in
Western Australia (WA) and the Northern Territory (NT) the merits of both are examined
ZLWK UHIHUHQFH WR VSHFLÀF FDVH VWXGLHV 'HVSLWH WKH FXUUHQW GLYLVLRQ RI UHVSRQVLELOLW\ DQG
GLYHUVLW\RIDSSURDFKHVKRZHYHUPLQLQJOHJDFLHVUHPDLQDVLJQLÀFDQWDQGJURZLQJSUREOHP
with a recognised need and repeated call for cooperation and coordination at a national and
LQWHUQDWLRQDOOHYHO)XWXUHDFWLRQLVDGGUHVVHGLQWKHÀQDOVHFWLRQZLWKUHIHUHQFHWROLDELOLW\
responsibility, industry reputation, regulation and leadership.
MINING LEGACIES – DEFINING TERMS AND UNDERSTANDING THE PROBLEM
:LWKQRFRRUGLQDWHGRUVWDQGDUGLVHGSROLF\RQOHJDF\PLQHVQDWLRQDOO\RUHYHQVKDUHGGHÀQLWLRQV
for common terms, it is important to establish these clearly. Traditionally and confusingly, terms
for mining legacies have been used interchangeably, as well as to delineate different aspects. This
lack of clarity has been evident for some, with the 2003 Management and Remediation of Abandoned
1. MAusIMM, Mining Legacies Project Oicer, Mineral Policy Institute, PO Box 6043, Girrawheen WA 6064. Email:
[email protected]
2. Executive Director, Mineral Policy Institute, PO Box 6043, Girrawheen WA 6064. Email:
[email protected]
3. Senior Lecturer/Course Director – Environmental Engineering, Monash University, Clayton Vic 3800; Chair, Mineral Policy Institute, PO Box 6043, Girrawheen WA 6064.
Email:
[email protected]
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
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M PEPPER, C P ROCHE AND G M MUDD
MinesZRUNVKRSKHOGLQ%ULVEDQH %HOO LGHQWLI\LQJWKHQHHGWRGHÀQHDEDQGRQHGPLQHVDQG
an international workshop held in Chile (UNEP and Cochilco, 2001) identifying the lack of a clear
GHÀQLWLRQDQGWKHDEVHQFHRIFULWHULDDQGVWDQGDUGVRIUHKDELOLWDWLRQDVDFDXVHRILQDFWLRQDQGDQ\
real progress on abandoned mines.
This paper uses mining legacies as an umbrella term encompassing abandoned, orphan and derelict
mine sites, building on previous work by Worrall et al (2009) and Whitbread-Abrutat (2008). Both
SDSHUVDOVRGHÀQHPLQLQJOHJDFLHVDVDQXPEUHOODWHUPUHIHUULQJWRWKHQHJDWLYHOHJDFLHV LPSDFWV
of mining. Worrall et al GHÀQHGOHJDF\PLQHGODQGDV
… land which has been mined and is now being used for another purpose, or is orphaned, abandoned or
derelict and in need of remedial work … (p 1429).
Following feedback from a survey as part of the Post-Mining Alliance’s Eden Project in the United
.LQJGRP:KLWEUHDG$EUXWDW PRGLÀHGKLVGHÀQLWLRQRIDQHJDWLYHPLQLQJOHJDF\WR
... the impacts of a closed mine that continue to negatively affect the environment or associated
communities (p 3).
+HWKHQIXUWKHUGLYLGHGWKLVLQWR
• abandoned sites ‘where the owner is known, but for some reason, is unable or unwilling to take the
necessary remedial action’
• orphaned sites ‘where the legal owner cannot be traced’ (p 3).
,Q$XVWUDOLDWKHWHUP¶DEDQGRQHGPLQHV·GRPLQDWHVWKRXJKWKHRIWHQFLWHGGHÀQLWLRQRIDEDQGRQHG
mines from the Strategic Framework for Managing Abandoned Mines (MCMPR and MCA, 2010) is more
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… mines where mining leases or titles no-longer exist, and responsibility for rehabilitation cannot be
allocated to any individual, company or organisation responsible for the original mining activities (p 6).
$OWKRXJKFRQWDLQLQJVRPHRIWKHVDPHFRPSRQHQWVWKH0&0350&$GHÀQLWLRQRIDEDQGRQHG
mines is clearly different to Worrall et al (2009) or Whitbread-Abrutat’s (2008) and restricts the focus
to where titles or leases no-longer exist. While it can be important to distinguish between abandoned
and orphan mines in terms of responsibility, liability, solutions and management response; to focus
only on abandoned mines is to ignore the problem that exists in existing leases and titles. In contrast,
the Canadian ‘National Orphan/Abandoned Mines Initiative’ (NOAMI) addresses both areas.
Perhaps a change of emphasis is slowly occurring with the 2012 workshop (Unger, 2012a), despite
often referring to abandoned mines, being called the Managing Mining Legacies Forum. Similarly,
Unger, who has featured in much of the recent work on mining legacies in Australia, also refers
to mining legacies (Unger, 2012a, 2012b). In their discussion paper for The AusIMM, Unger and
9DQ.ULHNHQ XWLOLVHGDGHÀQLWLRQIRU¶QHJDWLYHPLQLQJOHJDFLHV·UHÁHFWLQJ:KLWEUHDG$EUXWDW
(2008). Interestingly, The AusIMM’s policy, released in June 2013 (The AusIMM, 2013), has used the
more restrictive term of ‘abandoned mines’ although their policy does cover abandoned and orphan
VLWHVWKDW
... require rehabilitation and/or management but the owner of the site is either unable to be located or is
unable or unwilling to undertake the required rehabilitation and/or management of the site (p 1).
Alternatively, mining legacies could be understood in relation to completion criteria. That is,
VXFFHVVLVPHHWLQJVSHFLÀFFULWHULDZKHUHWKHIDLOXUHWRDFKLHYHHIIHFWLYHFORVXUHUHVXOWVLQDQHJDWLYH
mining legacy. Whitbread-Abrutat, Kendle and Coppin (2013) offer a conceptual effective closure
JRDODVPHHWLQJ
… the expectation that future public health and safety are not compromised, that the after-use of the
VLWHLVEHQHÀFLDODQGVXVWDLQDEOHWRWKHDIIHFWHGFRPPXQLWLHVLQWKHORQJWHUPDQGWKDWDGYHUVHVRFLR
HFRQRPLFLPSDFWVDUHPLQLPLVHGDQGVRFLRHFRQRPLFEHQHÀWVPD[LPLVHG(p 638).
:KLOHLWODFNVDQRYHUWIRFXVRQHQYLURQPHQWDOKHDOWKGHÀQLQJPLQLQJOHJDFLHVE\VXFFHVVSURYLGHV
a positive goal. Worrall et al (2009) provide a more detailed understanding of successful closure, or
its absence, with their principles-criteria-indicators framework. This could be used as the basis for
setting a clear direction for a successful response to mining legacies for Australian. To paraphrase
UNEP and Cochilco (2001), mining closure and mining legacies can be considered two sides of the
same coin.
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MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
'HÀQLQJ WKH LVVXH XVLQJ PLQLQJ OHJDFLHV HQFRPSDVVLQJ DOO VLWHV UHTXLULQJ PDQDJHPHQW RU
rehabilitation, allows a more complete and comprehensive discussion of the problem, providing for
appropriate solutions, rather than limiting the focus. This paper will follow Whitbread-Abrutat’s
GHÀQLWLRQDQGWKDWIRXQGLQ8QJHUDQG9DQ.ULHNDQ RIPLQLQJOHJDFLHVDQGLWVVXEVHWV
recommending them as appropriate for the Australian context. It also is informed by the need for
conceptual goals and stricter criteria in working towards a solution for mining legacies rather than
being stalled by the extent and complexity of the problem.
MINING LEGACIES, AN INTERNATIONAL AND AUSTRALIAN PROBLEM
Australia has more than 50 000 mining legacy sites, as shown in Figure 1; though more accurate and
SUREDEO\KLJKHUÀJXUHVKDVEHHQUHVWULFWHGE\XQFOHDUGHÀQLWLRQVGLIIHUHQWFODVVLÀFDWLRQV\VWHPV
and a lack of data (Unger et al, 2012). These sites can range from a shallow excavation, costean, adit
or shaft to a major mining legacy site such as Mt Morgan in Queensland (Qld; Unger et al, 2003),
Redbank in Northern Territory (NT; EcOz, 2009), Mt Lyell in Tasmania (Tas; Koehnken et al, 2003) or
numerous other less well documented sites (eg Mt Todd, NT; Woodsreef, New South Wales (NSW);
Mt Oxide, Qld; Mt Gunson, South Australia (SA); Teutonic Bore, Transvaal, Black Prince, Western
Australia (WA); etc). While not all are ‘legally’ abandoned, the sites examined by Laurence (2006),
provide various reasons for premature closure, which has and could lead to more mining legacy
sites in Australia.
Australia is not alone in realising it has a problem with mining legacies. Since 2000 international
attention on mining legacies has come from the World Bank, the International Finance Corporation,
the United Nations Environment Programme, the World Conservation Union and the International
Council on Mines and Metals. National leadership has also been shown most notably from NOAMI
(Tremblay and Hogan, 2012) in Canada and the Post-Mining Alliance in the United Kingdom (eg
Whitbread-Abrutat, 2008). These initiatives, reports and workshops are synthesized into a timeline
in Table 1.
FIG 1 – Australia legacy mines, July 2011 (Unger et al, 2012).
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
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M PEPPER, C P ROCHE AND G M MUDD
TABLE 1
An international selection of mining legacy events and publications since 2000.
Year
Author/organiser
Type
Description
Focus
2000
Mining Watch Canada
P
Mining’s toxic orphans
Canada
2001
UNEP and Cochilco
P
Abandoned mines – problems, issues and policy challenges for decision makers
International
2001
Canadian Governments
W
Workshop on orphaned/abandoned mines in Canada
Canada
2002
WB/IFC
W
It’s not over when its over: mine closure around the world
International
2002
NOAMI
I
NOAMI established
Canada
2003
ACMER
W/P
Management and remediation of abandoned mines
Australia
2005
MCMPR
I
Formation of the Abandoned Mines Working Group
Australia
2006
NOAMI
W
Orphaned and abandoned mines: a workshop to explore best practices
Canada
2008
IUCN-ICMM
W/P
Roundtable on restoration of legacy sites
International
2008
NOAMI
W
Workshop to explore perspectives on risk assessment of orphaned and abandoned mines
Canada
2010
MCMPR/MCA
P
Strategic framework for managing abandoned mines in Australia
Australia
2011
MCMPR
I
MCMPR replaced with SCER, AMWG no longer active
2011–
2012
AusIMM (Unger and
Van Krieken, 2011)
P
Abandoned mines discussion paper, survey and report
Australia
2012
AusIMM/SMI-CMLR/
Corinne Unger
W/P
Mining legacies forum and report
Australia
2012
AusIMM/SMI-CMLR/
Corinne Unger
P
Value proposition for a national abandoned/ legacy mine hub at CMLR, SMI, UQ
Australia
2013
AusIMM
P
AusIMM Abandoned mine policy statement and annexure
Australia
P – publication/report; I – initiative; W – workshop; UNEP – United Nations Environment Programme; WB – World Bank; IFC – International Finance Corporation;
NOAMI – National Orphan/Abandoned Mines Initiative; ACMER – Australian Centre for Mining Environmental Research; MCMPR – Ministerial Council on Mineral and Petroleum
Resources; IUCN – International Union for the Conservation of Nature; ICMM – International Council on Mines and Metals; MCA – Minerals Council of Australia;
SCER – Standing Committee on Energy & Resources; AMWG – Abandoned Mines Working Group; SMI – Sustainable Minerals Institute; CMLR – Centre for Mined Land
Rehabilitation; UQ – University of Queensland.
Common elements in many of the mining legacy focused reports, initiatives and workshops is the
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• mining legacies as a growing problem, in number, scale and complexity
• WKDWPLQLQJOHJDFLHVUHÁHFWSRRUO\RQWKHPLQLQJLQGXVWU\ZKLFKLVXQGHULQFUHDVLQJVFUXWLQ\DQG
community expectations for successful mine closure
• the need for better data and data management
• XQGHUVWDQGLQJWKHSUREOHPDJUHHLQJRQGHÀQLWLRQV
• ÀQDQFLDOOLDELOLW\WRVWDWHFRPPXQLW\GLIIHUHQWPRGHOVWRSD\IRUFOHDQXS
• consideration of legal liability
• the need for community involvement
• the need for a collaborative national and international plans and guiding bodies
• the slow rate of progress (see Table 1).
At a national level, research and advocacy for an effective response to mining legacies was lead
initially by the workshop on the Management and Remediation of Mines %HOO WKDW LGHQWLÀHG
a clear summary of issues. While more detailed than the outline of the international reports and
proceedings above, most of the issues are nonetheless covered in the nine points. One difference
was the focus on public safety in Australia, which seemed to be stronger than the environmental
IRFXVSHUKDSVLQÁXHQFHGE\FXUUHQWVWDWHDSSURDFKHVRUE\XQGHUHVWLPDWLQJRUPLVXQGHUVWDQGLQJ
the scope of the problem. There was also a strong emphasis on cooperation, leadership, seamless
integration, information sharing and coordination. With a clear and prescient warning the 2003
ZRUNVKRSLGHQWLÀHGWKDW¶KLJKOHYHODJUHHPHQW·OHDGHUVKLSDQGFRRUGLQDWLRQZDVUHTXLUHGLIDFWLRQ
on mining legacies was to be successful at a national scale (Bell, 2003).
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MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
Almost ten years later, the Australian Managing Mining Legacies Forum was organised by and held at
the Centre for Mined Land Rehabilitation (CMLR), part of the Sustainable Minerals Institute (SMI) at
WKH8QLYHUVLW\RI4XHHQVODQG 84 0DQ\WKHPHVVLPLODUWRWKRVHDERYHZHUHLGHQWLÀHGLQFOXGLQJ
• the need for a national hub (aka NOAMI)
• full liability accounting to understand the scale of the issue
• knowledge sharing
• funding issues/opportunities
• the need for same high standards as for active mines
• data and knowledge sharing, cooperation (Unger, 2012b).
The lack of progress in Australia at that time contrasts with the Canadian experience. There, the
catalyst for action was a civil society report in 2000 by Mining Watch Canada entitled Mining’s Toxic
Orphans: A Plan for Action on Federal Contaminated and Unsafe Mine Sites (MWC, 2000; Unger, 2012b).
The report documented 10 000 mining legacy sites and over C$1 B in liabilities. This lead ultimately
to NOAMI, a multistakeholder group and ‘hub’ formed to facilitate a planned and coordinated
response to mining legacies. While NOAMI has achieved progress at some of the worst sites,
including Giant Mine and Britannica, a lack of funds commensurate with the task means progress is
VORZ'HVSLWH12$0,RQO\KDYLQJUHVSRQVLELOLW\IRUVLWHVLWLVHVWLPDWHGWKDWLWZLOOWDNHDQRWKHU
83 years to address these at its current pace, though this will still require an additional C$1.2 B in
federal funds (Shields, 2014). Nevertheless, NOAMI is a good example, from a country with similar
division of state/federal responsibilities, of the leadership and coordination that has been called for
in Australia since 2003.
THE GROWING CHALLENGE OF MINING LEGACIES
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environment, socio-economic health and sustainability, culture and even aesthetics (Worall et al,
2009). Traditionally some jurisdictions may have focused more on human safety and had a narrower
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boarding up shafts and fencing open cuts. As our understanding of on-site impacts grows, so too
does our understanding of off-site, cumulative and perpetual impacts. The occurrence, extent and
LPSDFWVRIDQGDFLGDQGPHWDOOLIHURXVGUDLQDJH $0'DOVRNQRZQDVDFLGPLQHGUDLQDJH DWPDQ\
mining legacy sites is probably the best example of the importance of and need to address all of these
impacts. For example, Koehnken et al SUHGLFW0W/\HOODVKDYLQJDQ$0'GLVFKDUJHWKDWZLOO
ODVW¶IRUPDQ\KXQGUHGVRI\HDUV· S LIOHIWXQWUHDWHG([DPSOHVRI$0'LPSDFWVDQGRWKHUOHJDF\
mines are shown in Figure 2.
Intensity, spatial and temporal scale
7KHVFDOHLQWHQVLW\ULVNVDQGLPSDFWVRIPLQLQJKDYHFKDQJHGVLJQLÀFDQWO\VLQFHPLQLQJÀUVWVWDUWHG
at Australia’s various mining regions. While not universal to all commodities or situations, this has
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mining; increase in impurities; an increase in mine waste and extent of disturbed area; increasing
waste rock to ore ratios; and often an associated increase in resource and energy intensity (such as
GJ or m3 water or t CO2/t metal) (Mudd, 2010; Prior et al, 2012).
Western Australia provides relevant examples with gold, nickel, copper and zinc all showing
declining ore grades; a four-fold expansion in mined tonnages since the late 1980s; an increasing
arsenic risk associated with some Kambalda nickel ores; and increase in waste rock and disturbed
areas mainly associated with iron ore (Roche and Mudd, 2014). As industry trends, these represent a
major escalation in mining activity that could translate to an increase in impact and liability if future
mining legacies are not avoided.
While little work has been done on cumulative impacts of mining legacies, recent work on the
cumulative impact of mining is relevant. Therivel and Ross (2007) make a strong case for cumulative
effects assessment which should consider ‘scale issues, spatial extent, level of detail and temporal
issues’ (p 365). This approach to mining would result in different mine waste solutions, better
assessment and regulation leading to reduced mine legacy impacts and risks. Similarly, looking
at project expansions as trajectories of change, both temporally and spatially, could provide the
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M PEPPER, C P ROCHE AND G M MUDD
King River, efectively biologically dead due to more than a century
of acid and metalliferous drainage (AMD) and other mining
impacts from Mt Lyell, in Queenstown, Tasmania (February 2014)
Acidic drainage (pH ~3.5) line from the closed Tabletop
gold mine, Croydon goldield, Queensland (July 2011;
note solar panels for pumps and pipe/valve leak)
Visual evidence of acidic water in the Transvaal open cut, Southern Cross goldield, Western Australia (July 2013)
Lack of rehabilitation, Black Prince mine, Forrestania
region, Western Australia (July 2013)
Unrehabilitated asbestos tailings pile on exposed ridge,
Woodsreef mine, New South Wales (July 2012)
FIG 2 – Examples of acid and metalliferous drainage and other aspects of selected legacy mines (all photos: Mineral Policy Institute).
opportunity to correctly identify and then address potential mining legacies before they can develop
(Banks, 2013).
Mine closure and perpetual impacts
While there may be a perception that mining legacies are history, remnants of a less responsible
mining industry prior to the introduction of modern environmental assessment and regulation, the
WUXWKLVWKDWPLQHVFRQWLQXHWRFORVHDQGFDXVHSHUSHWXDOLPSDFWV 'ROG.HPSWRQ et al, 2010;
Unger and Van Krieken, 2011). Indeed, one reason for adopting the wider term, mining legacies,
is to include more recent mine sites. These could be closed or abandoned, on current and existing
leases or where the owner is known but unwilling to assist, such as BHP’s former Goldsworthy iron
ore mine in Western Australia. In a study of approximately 1000 sites that closed between 1981 and
2005, Laurence (2011) found that at around 75 per cent of the sites, closure was premature or was
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MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
• HQYLURQPHQWDO²$0'WDLOLQJVZDVWHURFNDQGYRLGV
• socio-economic – employee, contractor and business problems, demise of indigenous opportunities
and even death of a town
• health and safety – hazardous substances, steep open cut faces, vertical openings.
While the percentage of these sites that remained mining legacies is unknown, it would be
irresponsible to assume that unplanned closures were just historical events or temporary situations,
especially given the current constriction of the mining industry.
Laurence (2006) details a useful model for effective mine closure planning, which if implemented
would address many of the impacts above. It would, however, require remarkable discipline by
the industry and regulators, and more likely legislation and better resourcing, to ensure that up-todate closure plans exist for unplanned closures, as well as the quarantined funds to complete them.
Without substantial reform it seems unlikely, as Laurence notes, since reputations are rarely built by
successfully closing a mine. Whereas new mines are greeted with corporate fanfare, excitement and
political support, unplanned mine closures are orphans, marked by corporate demise or dysfunction,
the absence of political enthusiasm, the departure of employees and the loss of opportunity for local
business.
A pollution prevention and cleaner production is also required to reduce Australia’s future mine
legacies liability (eg Hilson, 2003). This requires improved planning, government leadership,
UHJXODWLRQ DQG ÀQDQFLDO LQFHQWLYHV WR HQVXUH DQ HYHQSOD\LQJ ÀHOG IRU FRPSDQLHV ZLOOLQJ WR
adequately prepare for unplanned closure and embrace cleaner production to achieve substantially
reduced mining legacy risks.
Related, but perhaps harder to respond to, is the issue of perpetual environmental impacts, the
need to assess and respond to them, as well as funding, where necessary, their ongoing management.
7KH TXHVWLRQ LV DW ZKDW SRLQW GRHV D SHUSHWXDO PLQLQJ LPSDFW VXFK DV $0' EHFRPH D SXEOLF
OLDELOLW\DVDPLQLQJOHJDF\",QWKH8QLWHG6WDWHVWKHSRWHQWLDOLPSDFWDQGLPSRUWDQFHRI$0'DVD
perpetual impact has been known for many years. In 1997 the US Environmental Protection Agency
(US EPA, 1997 LGHQWLÀHG $0' DV ¶WKH PRVW VHULRXV HQYLURQPHQWDO WKUHDW RI FXUUHQW KDUG URFN
mining’ (p 3), noting that some mines ‘may require water treatment in perpetuity’ (p 4). A minimal
OLVWRI$XVWUDOLDQH[DPSOHVRI$0'PLQLQJOHJDF\VLWHVLQFOXGH0W/\HOO7RP·V*XOO\0W7RGG
Carrington, Rum Jungle, Mt Oxide, Mt Morgan, Kurri Kurri, Benambra, Sunny Corner, Teutonic
Bore, Redbank, Zeehan, Brukunga, Captain’s Flat, amongst numerous others.
7RGDWHDWKRURXJKLQYHQWRU\RIWKHUHKDELOLWDWLRQVWDWXVDQGRQJRLQJULVNVVXFKDV$0'HURVLRQ
subsidence, biodiversity and ecosystem integrity, or public health and safety, from all former
mines across Australia remains elusive. Furthermore, given the rapidly expanding scale of mining
activities, this makes it ever more urgent to understand future risks based on better understanding
of the scale of the mining legacy challenge we already face.
MINING: A STATE AND TERRITORY RESPONSIBILITY
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hub, as outlined earlier, mining legacies remain a state/territory responsibility with little national
coordination or leadership. Every state and territory seems to have different views about mining
legacies, different solutions, funding arrangements, prioritisation of the issues and even different
government agencies that deal with mining legacy issues. While some states and territories have
recently developed policies on legacy mines and different strategies to raise funds to begin the task
of rehabilitating sites; a national hub and strategy seems no closer than in 2003.
The following section describes the different policy or regulatory frameworks in the states and
WHUULWRULHVWKHQH[DPLQHVWKHVHZLWKUHIHUHQFHWRFDVHVWXGLHV6LJQLÀFDQWGLIIHUHQFHVEHWZHHQWKH
states/territories are apparent when it comes to the number of sites, policy/program responses, age
of initiatives and funding arrangements. All descriptions are based on informal telephone interviews
with relevant departments and material readily available to the public, with some jurisdictions
providing more detail and clarity than others. An overall summary is provided in Table 2 (it should
be noted that the number of sites varies depending on whether a mine site is considered as a whole or
tailings dams, shafts, open cuts, waste rock dumps, etc, are considered separately – again reinforcing
WKHQHHGIRUVWDQGDUGGHÀQLWLRQVDQGWHUPV
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M PEPPER, C P ROCHE AND G M MUDD
TABLE 2
Approximate number of mines or mining-related features and current approaches to mining legacies in states and territories.
Number of sites
(approximate)
Mining legacies
policy/program
Year
established
Bonds
Fund for legacy rehabilitation
NT
Unknown
Under development
2013
Yes, 100% of mine closure costs
Yes, Mining Remediation Fund –
1% levy on new mines – invested
WA
88 705 (Ormsby, Howard
and Eaton, 2003)a
Under development
2013
Bonds can be applied by the
Minister for special cases.
Government plan to move away
from bonds
Yes, Mining Rehabilitation Fund –
1% levy on new mines – invested
Tas
4036 (Gurung, 2001)
No
1995
Yes
Mining Lands Trust Fund – but there
is no clear income
NSW
573 (NAGO, 2012)b
Derelict Mines Program
1974
100% of mine closure costs
Ad hoc – through acquisition of
mining machinery that is put in a
fund and invested
Qld
15 000 (Unger et al, 2012)
Abandoned Mine Lands
Program
2001
Yes
No
SA
3000 (Unger et al, 2012)
No
2009
Yes
Not entirely. There is an Extractive
Areas Rehabilitation Fund (coal, oil,
sand, gravel) – no fund for minerals,
ie CU, Ag, Ur
Vic
19 000 (Unger et al, 2012)
No
NA
Yes, 100% of mine closure costs
No
a
– For Western Australia this is the number, as of 2002, of mining-related features (eg tailings dams, waste rock dumps, shafts, open cuts, infrastructure, etc). b – Based on the
extent of the mining industry across New South Wales (NSW) (eg gold, copper, tin, coal), this number is likely to be an extreme under-estimate (especially in comparing say all
other states/territories to NSW).
Tasmania
7DVPDQLDKDVQRRIÀFLDOSROLF\RQPLQLQJOHJDFLHV,WGRHVKRZHYHUKDYHDERQGV\VWHPDQGDWUXVW
fund, though it could not be considered an adequate funding arrangement for addressing Tasmania’s
mining legacy liabilities – in particular where there is no liable company and no ongoing commercial
interest. On average $160 000 a year is spent on rehabilitation works generated by the appropriation and
sale of machinery or buildings left on abandoned sites and forfeited security deposits. Rehabilitation
activities sites have simply included capping shafts, revegetation, soil and water sampling, baseline
surveys, improving drainage, works on tailings, weed control and seed collection.
Of the 681 metal-related abandoned mines in Tasmania, 215 pose a threat to the environment with
DFLGSURGXFLQJURFN²WKHURRWFDXVHRI$0' *XUXQJ 8QIRUWXQDWHO\WKHUHVHHPVWREHQR
FOHDUWLPHIUDPHDPELWLRQRUVRXUFHRIÀQDQFHWRDGGUHVVWKH$0'VLWHVGHVSLWHWKHVLJQLÀFDQW
HQYLURQPHQW ULVNV IURP $0' ,Q WKH 7DVPDQLDQ (QYLURQPHQWDO 3URWHFWLRQ $JHQF\ (3$
acknowledged that the clean-up of the 215 sites will not be funded through the Trust (TMC, 2013). This
has been accompanied by increased expectations that new mine proposals in Tasmania could shift the
responsibility of rehabilitating the abandoned mines within new mine leases on to new companies.
Victoria
Victoria has approximately 19 000 legacy sites (Unger et al EXWWKHUHLVQRRIÀFLDOSROLF\RQ
mining legacies or a funding mechanism for rehabilitation. Until early 2014, Victoria had a system of
100 per cent closure bonds but this has now been relaxed. The responsible agency, Earth and Energy
5HVRXUFHV ((5 RIWKH QRZIRUPHU 'HSDUWPHQWRI3ULPDU\,QGXVWU\KDVQRSROLF\SURJUDPRU
fund in place to rehabilitate legacy mine sites in Victoria.
Curiously, given the historic importance of the gold rush era, many legacy mines are now protected
under the Heritage Act 1995. There are a few small abandoned open cut mines, some abandoned
quarries spoil dumps and the odd dredge with heritage listing. Mining infrastructure, however, has
largely disappeared over time through scavenging and/or decay.
:KLOHWKHUHDUHVRPHLVVXHVZLWK$VLQWDLOLQJVDURXQGWKHJROGÀHOGV (3$93HDUFH'RZOLQJ
and Sim, 2012), EER’s priority is in community education and awareness programs on As in sands
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
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MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
DQGWDLOLQJVUDWKHUWKDQUHKDELOLWDWLRQ7KH((5KDVQRSRVLWLRQRQHLWKHULGHQWLI\LQJVKDIWVRUÀOOLQJ
them in. Although there have been instances where the EER have remediated abandoned sites, it
has been done in an ad hoc way based on the situation (such as media attention) rather than any
legislated responsibilities. While the EER has recently undergone some regulatory change, the focus
is expected to remain on compliance rather than implementing a policy of rehabilitation.
New South Wales
7KH16:'HSDUWPHQWRI7UDGHDQG,QYHVWPHQW5HVRXUFHVDQG(QHUJ\ QRZIRUPHU'7,5( EHJDQ
WKH'HUHOLFW0LQHV3URJUDPLQ '7,5,6 DOWKRXJKWKHUHLVQRJXLGLQJSROLF\RUVWDWXWRU\
UHVSRQVLELOLW\ WR UHKDELOLWDWH DEDQGRQHG PLQHV 'HVSLWH WKLV SURJUDP EHLQJ WKH ÀUVW SURJUDP LQ
Australia to address the issues of mining legacies there are still an estimated 573 sites in NSW
(NAGO, 2012). In 2011–2012 there were 27 sites with rehabilitation works done costing $2.1 M,
including the Belmont mineral sands, Ardlethan tin and Home Rule gold mines. It remains unclear
how much future rehabilitation, if any, work needs to be done on these and all other sites.
)XQGV IRU WKH 'HUHOLFW 0LQHV 3URJUDP KDYH EHHQ JHQHUDWHG WKURXJK WKH DFTXLVLWLRQ DQG VDOH RI
abandoned mine processing plants, from investing the money within the fund, money from security
deposits, and through appropriation of money from the Minerals and Petroleum Administrative
)XQGE\3DUOLDPHQWRUDSSURYHGE\WKH0LQLVWHU7KH16:$XGLWRU*HQHUDO·V2IÀFH 1$*2
argues that ‘derelict mines may represent the State’s largest category of contamination liability’
(p 16), raising serious concerns about the capacity to fund ongoing rehabilitation needs. This has led
to new calls for an audit into the total liability of NSW legacy sites and calls for a 2020 deadline to
rehabilitate.
Queensland
7KH'HSDUWPHQWRI1DWLRQDO5HVRXUFHVDQG0LQHV DQGSUHGHFHVVRUV HVWDEOLVKHGDQ$EDQGRQHG
Mine Lands Program (AMLP) in 2001 (NRM, 2013a). Although they claim that ‘Queensland spends
more on the management of abandoned mine sites than the rest of Australia combined’ (NRM,
2013a) – they have no policy or guidelines available on their website, no consistent accounting nor
UHSRUWLQJ RI UHKDELOLWDWLRQ ZRUNV DQG FRVWV 'HVSLWH WKLV ODFN RI WUDQVSDUHQF\ DQG DFFRXQWDELOLW\
they have managed to repair thousands of abandoned shafts where other states and territories have
QRW HJWKH*\PSLHJROGÀHOGKDVVHHQ!VKDIWVFDSSHGE\FRQFUHWHRURWKHUPHDQV150E
Recently there have been examples of sites where the AMLP have conducted work, but have not
HOLPLQDWHGWKHSROOXWLRQULVNVRI$VRUDFLGPLQHGUDLQDJH 0F&DUWK\ ,QVHYHUHÁRRGLQJ
in Queensland exposed the very serious environmental risks posed by legacy sites, with the overÁRZRI$0'ZDWHUVIURPWKH0W0RUJDQRSHQFXWLQHDUO\EHLQJDQRWKHUPDMRUH[DPSOH
Northern Territory
7KH 17 'HSDUWPHQW RI 0LQHV DQG (QHUJ\ 17 '0( LV DGGUHVVLQJ PLQLQJ OHJDFLHV WKURXJK WKH
establishment of a Mining Remediation Fund (MRF) introduced through parliament as part of the
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levy from all operating mines, the fund will be invested and interest raised from the investments
ZLOOEHXVHGIRUWKHUHKDELOLWDWLRQRIOHJDF\VLWHV7KH17'0(HVWLPDWHWKHOLDELOLW\RIDOO17OHJDF\
VLWHVWREHLQH[FHVVRI%DQGH[SHFWWRUDLVH0LQWKH05)·VÀUVW\HDU
The NT will still be required to have a 100 per cent bond for mine closure as well as the nonUHIXQGDEOHOHY\ 17'0( 7KHÀUVWPDMRUMREZLOOEHWRLGHQWLI\DQGDVVHVVWKH17·VOHJDF\
sites, meaning they are still a long way off initiating rehabilitation work. Whilst the MRF is a good
start to addressing the NT’s serious legacy sites, as part of the new arrangements under the MMA
WKH17'0(KDVUHPRYHGWKHUHTXLUHPHQWIRUDQQXDOHQYLURQPHQWUHSRUWLQJDWRSHUDWLQJPLQHV²
decreasing transparency at a time when more is needed.
South Australia
SA’s policy on mining rehabilitation differs from other jurisdictions. Firstly they categorise mining
LQWR WZR VHFWLRQV H[WUDFWLYHV DQG QRQH[WUDFWLYHV ([WUDFWLYHV DUH GHÀQHG LQ WKH Mining Act 1971
as sand, gravel, stone, shell, shale or clay, whereas non-extractives or minerals include metals (eg
Au-Ag-Cu-U-Zn). Secondly, the responsibility of rehabilitation of extractive or non-extractive
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
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M PEPPER, C P ROCHE AND G M MUDD
mines was a responsibility of the State Government from 1972 until 2004 when the responsibility of
rehabilitation of non-extractives shifted back to the mining companies. Non-extractives are required
to have a bond and there is an expectation these companies will do their own rehabilitation. Future
orphaned sites or legacy mines will rely on retrieving the bond – but where the bond falls short there
is no guarantee of government funding for rehabilitation.
The SA Government have taken on the responsibility of addressing the rehabilitation of just three
VLWHV5DGLXP+LOO8PLQH3RUW3LULH8SURFHVVLQJIDFLOLW\DQG%UXNXQJDLURQVXOÀGHPLQH '0,75(
2014) (although it should be noted these were all SA government projects in any case).
Extractives miners are required to pay a levy (50 per cent of the royalty they pay to the State or
10 c/t) which makes up the Extractive Areas Rehabilitation Fund (EARF). The EARF will be used
to rehabilitate sites if the company has not rehabilitated the site or if the site has been abandoned
(PIRSA, 2009). There is $17 M in the EARF for extractives only – sand, gravel, stone, shell, coal, oil.
This fund grows by $2 M every year. For non-extractives or minerals there is no such fund.
Western Australia
,QWKH'HSDUWPHQWRI,QGXVWU\DQG5HVRXUFHV QRZ'HSDUWPHQWRI0LQHVDQG3HWUROHXP'03
FRPSOHWHGDÀHOGLQYHQWRU\RIOHJDF\PLQHVLQ:$QRWLQJVRPHPLQLQJUHODWHGOHJDF\IHDWXUHV
such as tailings, waste rock dumps, open cuts, shafts or other infrastructure (Ormsby, Howard and
Eaton, 2003). Although the inventory has been updated in digital form to 2011 (GSWA, 2012), very
little action to address the challenges of the enormous number legacy mine features appears to have
been undertaken.
,QWKH'03HVWDEOLVKHGWKH0LQLQJ5HKDELOLWDWLRQ)XQG DOVR¶05)· WRUDLVHIXQGVIRUWKH
rehabilitation of legacy mine sites that already exist as well as future sites. The MRF will raise money
through a non-refundable mining levy on new mines, calculated on disturbance area, risk and level
RILPSDFW7KHIXQGZLOOEHXVHGDVDQLQYHVWPHQWIXQGZLWKWKHSURÀWVJHQHUDWHGIURPLQYHVWPHQWV
to be used to fund rehabilitation of existing legacy mines. The MRF began operating in July 2013 for
DRQH\HDUYROXQWDU\SHULRGDQGEHFRPHVFRPSXOVRU\IURP-XO\:LWKLQWKHÀUVWWZRPRQWKV
of the voluntary MRF scheme the Government paid back $84 M in bonds and recouped $2.2 M in
QRQUHIXQGDEOHOHYLHV:LWKLQVL[PRQWKVWKH'03KDVUHOLQTXLVKHG0LQERQGVDQGUHFRXSHG
$5.1 M into the MRF. The WA MRF has removed requirements for bonds, however, there will be
some retention of bonds of existing mines entering the MRF and the Minister will retain powers to
require bonds for new mines.
FINANCIAL MECHANISM TO PREVENT AND ADDRESS MINING LEGACIES
Mechanisms for addressing legacy mines have been diverse and with varying degrees of success.
NSW, Tasmania and Queensland have a longer history of proactively working on rehabilitation but
ZLWKSRRUIXQGLQJDUUDQJHPHQWVDQGZLWKRXWVLJQLÀFDQWSURJUHVV(IIRUWVKDYHEHHQKDPSHUHGE\
LQVXIÀFLHQWRUDEVHQFHRIERQGVWRFRYHUWKHFRVWVRIUHKDELOLWDWLRQZLWKWKHVDOHRILQIUDVWUXFWXUHDW
VLWHVQRWJHQHUDWLQJVXIÀFLHQWIXQGV7KH17DQG:$DUHGHYHORSLQJQHZPHFKDQLVPVDQGSODQV
to address this problem of inadequate funding arrangements. This section will discuss levies and
ERQGVLQFOXGLQJVSHFLÀFGLVDGYDQWDJHVVXSSRUWHGE\H[DPSOHVIURPDURXQG$XVWUDOLD
The mining levy
Both the NT and WA governments have developed a one per cent levy on new mines (and WA
retrospectively in exchange for bonds) to address current legacy sites. In WA the fund has been
GHVLJQHGWRIXQGDQ\IXWXUHOHJDF\PLQHVLWHVWKLVKDVEHHQSDUWRIWKHMXVWLÀFDWLRQIRUUHPRYLQJ
UHTXLUHPHQWV RI ERQGV 3URÀWV IURP LQYHVWPHQWV ZLOO EH XVHG IRU H[LVWLQJ OHJDFLHV EXW WKH IXQG
itself will be made available in the future for new legacy sites. In WA the fund contribution rate is
proposed to be one per cent of the rehabilitation liability estimate, whereas in the NT an annual levy
of one per cent on the total calculated rehabilitation cost will be applied.
Advantages of mining levies
• 3ODFHVWKHEXUGHQRIÀQDQFLQJUHKDELOLWDWLRQZRUNRQWKHPLQLQJLQGXVWU\
• Could potentially fund the rehabilitation of current legacy sites and provide a safety net for the
future.
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
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MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
Disadvantages of mining levies
• Where there is no bond or punitive measures made available to regulators (for example the
WA MRF), the levy provides no incentive for meeting mine closure objectives and a lack of
consequences for not meeting them.
• Levies implicitly endorse new mining to generate the funds. The need for or priority of raising
funds could exacerbate or deepen a perceived dependence on the mining industry.
• It is unclear how quickly the funds can be generated. There is no clear time frame on investments,
returns and the allocation of funds for works. Like other mechanisms for rehabilitating legacy
sites, it could simply fail to move into action.
The bonds system
Most states and territories have developed a bonds system for mines. Bonds systems can be
categorised as the ‘upfront or gradual set-aside or guaranteeing of expected clean-up cost’ (Peck
and Sinding, 2009). Bonds systems have commonly been criticised for falling short of meeting the
actual mine closure costs. The only way to ensure a bond does not fall short is to develop a system
that can accurately calculate the cost of mine closure and for this to be annually reviewed and
DGMXVWHGUHÁHFWLQJSHUIRUPDQFHPLOHVWRQHVRUQRQFRPSOLDQFHZLWKDQ\LQFUHPHQWDOPLQHFORVXUH
requirements and to legislate that all mines need a bond equivalent to 100 per cent of actual closure
costs, rather than an optimistic or best case scenario.
Between the States and Territories there are a diversity of bonds arrangements and exemptions,
with a growing trend towards increasing bonds to 100 per cent of estimated closure costs. With WA’s
MRF, however, they are planning to remove requirements for bonds while retaining Ministerial
powers to require bonds. In WA the bonds system currently in place is estimated to only cover 25–
30 per cent of the actual cost of rehabilitation (van Merwyk, 2013). The idea of maintaining a strict
ERQGV\VWHPWRUHSUHVHQWWKHWUXHFRVWRIUHKDELOLWDWLRQKDVEHHQGLVFRXQWHGE\WKH'03EHFDXVHRI
tying up money that the industry could be investing in new mines and because of industry backlash
:$'03
The bonds system does not cover the true cost of rehabilitating abandoned mine sites, and increasing
ERQGVWRFRYHUWKHIXOOUHKDELOLWDWLRQFRVWVZRXOGLPSRVHDVLJQLÀFDQWÀQDQFLDOLPSDFWRQWKH:HVWHUQ
$XVWUDOLDQPLQLQJLQGXVWU\%RQGVGLVFRXUDJHLQYHVWPHQWE\W\LQJXSVLJQLÀFDQWIXQGVWKDWFRXOGEH
used for developing a mining project.
Advantages of bonds
• A full mine closure cost in bonds could provide a good incentive to rehabilitate. Especially if
VXSSRUWHG E\ VWURQJ UHJXODWLRQ DQG HQIRUFHPHQW ZLWK FULPLQDO OLDELOLW\ DQG SXQLWLYH ÀQDQFLDO
instruments.
• A 100 per cent bond can ensure that the company responsible for mining is responsible for paying
IRUWKHUHKDELOLWDWLRQ$YRLGVFRVWLQJWKHWD[SD\HUPRQH\DQGLPSURYHVFRPPXQLW\FRQÀGHQFH
in mining.
Disadvantages of bonds
• 0DQ\ERQGVV\VWHPVKDYHEHHQLQVXIÀFLHQWLQPHHWLQJWKHDFWXDOFRVWRIFORVXUH VHHFDVHVWXGLHV
below).
• :KHUHERQGVDUHLQVXIÀFLHQW²LHWKHDFWXDOFRVWVRIFORVXUHDUHJUHDWHUWKDQWKHORVVRIERQGV²
WKHUHLVQRWDVXIÀFLHQWLQFHQWLYHWRUHKDELOLWDWH VHHFDVHVWXGLHV
• Ties up funds that could be invested.
Inadequate bonds and government inaction
Redbank, Redbank Copper Ltd (current owner), Northern Territory
The Redbank copper mine operated from 1994 until 1996 when the Cu price dropped making the
mine uneconomic (EcOz, 2009). The mine was placed under care and maintenance and remains a
prime example of Government not securing any bonds for unplanned rehabilitation and subsequent
*RYHUQPHQWLQDFWLRQ7KHVLWHLVDVRXUFHRILQWHQVH$0'ZKLFKOHDNVIUHHO\WKURXJKWKHZDWHUWDEOH
DQGYLDRYHUÁRZFKDQQHOVWR+DQUDKDQV&UHHN²ZKLFKLVELRORJLFDOO\GHDGGXHWRWKHVHYHULW\RI
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
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M PEPPER, C P ROCHE AND G M MUDD
WKH$0' VHHGDWDLQ(F2] 6RPHVLWHSKRWRJUDSKVRIWKH$0'DQGLWVLPSDFWVDUHVKRZQLQ
Figure 3.
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RQJRLQJSROOXWLRQ,Q$XJXVW%XUGHNLQ3DFLÀF/WGWRRNRYHUDVRZQHUDQGRSHUDWRUDQGFKDQJHG
name to Redbank Mines Ltd (now just Redbank Copper Ltd; RC), and sought to develop the site into a
FRPPHUFLDOPLQH5&LVDMXQLRUH[SORUDWLRQFRPSDQ\DQGDUHQRWLQDÀQDQFLDOSRVLWLRQWRUHPHGLDWHWKH
site and appear to be struggling to secure the required capital to develop the mine given recent market
FRQGLWLRQV)XWXUHPLQLQJDWWKHVLWHKDVEHHQKHUDOGHGDVZD\WRUHPHGLDWHWKHVLWHEXWÀYH\HDUVDIWHU
releasing an EIS the company says they are still ‘exploring’. The NT Government is now committed to
using the MRF to assist in the clean-up of Redbank and the Mines Minister has commented that this
site is a priority. The extent of the impacts and the marginal economics of the project may prevent any
attempt to restart the mine with liability then transferring the NT Government.
Mt Lyell, Mt Lyell Mining and Railway Company, Tasmania
The Mt Lyell mine in Tasmania has been a classic example of inaction and extensive mine-derived
SROOXWLRQ,QDIWHUVHYHUDO\HDUVRIÀHOGZRUNDQGUHVHDUFKZKLFKLQFOXGHG7DVPDQLDQDJHQFLHV
DQGWKH&RPPRQZHDOWK·V2IÀFHRIWKH6XSHUYLVLQJ6FLHQWLVWWKHÀQDOUHSRUWRQUHPHGLDWLRQVFHQDULRV
IRUWKH0W/\HOOÀHOG Koehnken, 1997) outlined four options – and yet effectively nothing has ever
EHHQGRQHWRVXEVWDQWLDOO\UHGXFHWKHH[WHQVLYH$0'RUPLQHUHPRYHPLQHZDVWHVDORQJWKH4XHHQ
and King Rivers and along the shores of Macquarie Harbour. Numerous subsequent studies have
followed – but rather than move towards remediation, recently the Tasmanian Government has
LVVXHG D WHQGHU IRU WKH FRPPHUFLDO PLQLQJ RI WKH VRXUFH RI WKH $0' DW 0W /\HOO D PRYH WKDW LV
likely to result in more delays. The current estimated liability to clean up the site is $16 M, which
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photographs are shown in Figure 4.
A
B
C
D
FIG 3 – Severe acid and metalliferous drainage (AMD) problems at the former Redbank copper mine, Wollogorang
region, NT: AMD seeping out from waste rock (A); small high density polyethylene (HDPE)-lined pad for the trial
heap leach in 2006 (B); AMD lowing through the water table and into the Sandy Flat open cut (C); biologically
dead Hanrahan’s Creek, adjacent to Redbank (D) (all photos: Mineral Policy Institute; July 2011).
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MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
FIG 4 – Extensive environmental impacts from more than a century of Cu mining in the Mt Lyell ield, western Tasmania: bare hills surrounding
Queenstown, largely due to emissions from historic smelting (left); train over the Queen River, severely polluted by ongoing acid and
metalliferous drainage (AMD) and historic riverine disposal of mine waste (right) (all photos: Mineral Policy Institute; February 2014).
Failure of bonds to meet closure costs
Benambra, Denehurst Ltd, Victoria
The Benambra Cu-Zn mine in eastern Victoria was abandoned in the 1990s after four years of
operations, and there was only a very small bond (some $300 000). EER effectively became site
owner and had to rehabilitate the site. The EER sold off assets at the site and were granted further
IXQGVIURPWKH'HSDUWPHQWRI7UHDVXU\DQG)LQDQFH$OWRJHWKHU0ZDVXVHGWRUHKDELOLWDWHWKH
tailings, to remove acid-producing materials from spoils that had been left on the surface and put
them in the dump. After Benambra, the Victorian Government required 100 per cent rehabilitation
bonds upfront – although this requirement has recently been removed despite the obvious lesson.
The project is now named the Stockman project and is being investigated for new development.
Continued corporate responsibility
Goldsworthy, BHP Billiton Ltd, Western Australia
Waste rock containing black shale continues to be stored at ‘Billy Goat Hill’ and ‘Rosemary’ within
WKH ZDVWH URFN WKHUH LV D KLJK FRQWHQW RI S\ULWH ZKLFK KDV OHG WR $0' 7KH SRWHQWLDO IRU $0'
ZDVLGHQWLÀHGLQ %XUUHOO GXULQJDURXWLQHLQVSHFWLRQRIWKHVLWH$VWXG\LQ
QLQH \HDUV DIWHU WKH LQLWLDO GLVFRYHU\ RI $0' FRQÀUPHG WKDW WKHUH LV $0' SUHVHQW EXW ZDV QRW
LUUHSDUDEOHJLYHQLWKDGQRWVSUHDGWRRIDU 5RJD ,WLVHVWLPDWHGWKHFOHDQXSRIWKH$0'DW
this point will cost $100 M (Santhebennur, 2013), involving the burying of the acid producing rock
below the water table – although there is still no formal rehabilitation plan for acid producing rock
at the site.
BHP had been trying to sell the site and to be relinquished from any further environmental
obligations. The sale has been halted and the WA Government has not relinquished the site, with the
ongoing cost and rehabilitation at Mt Goldsworthy remaining the responsibility of BHP. It is possible
WKDWPDLQWDLQLQJRQJRLQJUHVSRQVLELOLW\IRUWKLVVLWHRFFXUUHGEHFDXVHRIWKHVL]HDQGSURÀOHRIWKH
company, the establishment of the WA Contaminated Sites Regulations 2006 and the committee that
decides whether or not to relinquish responsibility of rehabilitating contaminated lands.
Problem of levies without bonds
Meekatharra, GMK Exploration, Western Australia
Reed Resources Ltd entered into the voluntary period of the WA MRF in 2013 and had their bonds
released. Shortly after this transaction their subsidiary company GMK Exploration Pty Ltd, who own
and operate the Meekatharra Au mine, went into voluntary administration (Reed Resources Ltd,
2013). The project had become unviable because of lower than expected ore grades. Reed Resources
remains solvent and in their ASX statement following the decision, stated they would work with
the Administrators to retrieve value from the project. It is unclear what that means for the activity
on the site towards rehabilitation, or whether it could be sold to another company. This example,
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M PEPPER, C P ROCHE AND G M MUDD
WKRXJKVWLOOXQIROGLQJKLJKOLJKWVWKHPDMRUFRQFHUQZLWKWKH05)ZLWKQRERQGVLQSODFHDQGZLWK
no punitive measures for non-compliance of mine closure obligations in the Mining Act there is no
incentive for the company or its administrators to rehabilitate a mine site.
Rehabilitation through new mine developments/partnerships
Multiple sites, Tasmania
There are some examples of partnerships between government and mining companies for new
mines to take on responsibilities for rehabilitating legacy sites within new or proposed mine leases.
Particularly in Tasmania this arrangement is promoted by Government and industry. There are
examples where this approach is working and examples where it has not been implemented. For
example, the Savage River Rehabilitation Program (EPAT, 2013) is a partnership between the
Tasmanian Government and Grange Resources; they now have a total project budget of $12 M to
rehabilitate the legacy issues of the operating Savage River magnetite mine – although given the
substantive size of the Savage River project footprint, there remains a considerable scope of issues to
DGGUHVV LQFOXGLQJ$0'LVVXHVDPRQJVWRWKHUV
New mine developments under the same jurisdiction are receiving approvals without such
partnerships or agreements to rehabilitate despite legacy mines on those tenements, such as Venture
Minerals Ltd proposal for a tin mine at Mt Lindsay and Shree Minerals Ltd proposal for an iron ore
mine at Nelson Bay.
It remains to be seen how successful these partnerships will be in cleaning up the pollution and
other risks from mining legacies, how often these partnerships will be formed, how they will be
enforced, monitored and regulated, and most importantly, how successful they are in reducing
mining legacy impacts.
Supporting inancial instruments through regulation and enforcement
:KLOHDWWUDFWLYHWRLQGXVWU\DQGSROLWLFDOOHDGHUVRYHUO\UHO\LQJRQÀQDQFLDOLQVWUXPHQWVLVXQOLNHO\WR
deliver the reform needed in a high-risk industry, which has a history of underperformance alongside
EHWWHUSHUIRUPDQFHIURPPRUHSURJUHVVLYHFRPSDQLHV,QDGGLWLRQWRÀQDQFLDOLQVWUXPHQWVSRVLWLYH
incentives should be investigated, that reward effective mine operations that limit environmental
impact. For example, companies with a good environmental and social record and high levels of
WUDQVSDUHQF\FRXOGEHUHZDUGHGZLWKLQFUHDVHGÁH[LELOLW\SUHIHUUHGDFFHVVWRVLWHVRUVWUHDPOLQHG
(but not weakened) assessment. Alternatively, companies and directors of sites that result in mining
legacies, especially those with perpetual impacts that require ongoing management, could be liable
to severe punitive sanctions, including custodial sentences. The combination of effective regulation
DQG HQIRUFHPHQW WKH FDUURW DQG WKH VWLFN DQG DSSURSULDWH ÀQDQFLDO LQVWUXPHQWV ZRXOG HQVXUH D
greater focus and priority on avoiding mine legacies throughout planning, construction, operations
and rehabilitation, thereby avoiding new mining legacies.
THE NEXT TEN YEARS
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mining legacies clearly requires a coordinated response. In Australia this could be achieved by either
federal government leadership or multilateral leadership from the states and territories, though
SUHIHUDEO\ERWK*LYHQWKHFXUUHQWIRFXVRQJRYHUQPHQWÀQDQFLDOUHVWUDLQWSHUKDSVIHGHUDOVWDWH
DQGWHUULWRU\JRYHUQPHQW·VZLOOUHFRJQLVHWKDWWROLPLWVLJQLÀFDQWDQGIXWXUHÀQDQFLDOOLDELOLWLHVIURP
legacy sites, cumulative and perpetual impacts will require an effective response now. Alternatively,
governments may be encouraged or forced to take action by more progressive mining companies
seeking to harmonise responsible life-of-mine planning and operations with effective and supporting
governance frameworks.
Leadership, and/or the incentive for government/industry response, could also come from the
FRPPXQLW\:KLOHGLIÀFXOWWRTXDQWLI\RUTXDOLI\LQFUHDVLQJFRPPXQLW\H[SHFWDWLRQVDQGJURZLQJ
UHVLVWDQFH WR PLQLQJ LV JHQHUDWLQJ FRQÁLFW WKDW WKHQ LPSRVHV VLJQLÀFDQW FRVWV RQ LQGXVWU\ ERWK
in direct costs and in lost opportunity (Franks et al, 2014). In the experience of the authors, well
recognised negative mining legacies (eg see case studies) are a key factor in the increasing concerns
about potential and actual mining impacts from existing and potential projects. While addressing
LIFE-OF-MINE 2014 CONFERENCE / BRISBANE, QLD, 16–18 JULY 2014
462
MINING LEGACIES – UNDERSTANDING LIFE-OF-MINE ACROSS TIME AND SPACE
historic mining legacies alone will not overcome poor mining governance or validate new mining
SURSRVDOVLWFRXOGKHOSLPSURYHFRPPXQLW\FRQÀGHQFHLQZKDWLVLQFUHDVLQJO\VHHQDVXQWUXVWZRUWK\
LQGXVWU\ VHH$UHQD0DJD]LQH'DYLVDQG)UDQNV)UDQNV et al, 2014).
While we await strong leadership towards national or joint state/territory action from all sectors,
WKHUH LV DOUHDG\ VWURQJ DJUHHPHQW RQ WKH ÀUVW VWHSV )LUVWO\ DQ $XVWUDOLDQ LQYHQWRU\ RI PLQLQJ
legacies, preferably through a national hub, is needed to identify the hazards, risks, future land uses
and prioritisation of the most dangerous sites. This needs to be combined with discussions leading
to committed plans to harmonise state responses to avoid future mining legacies and to secure the
funds to pay for the rehabilitation of the 50 000+ plus sites around Australia.
CONCLUSION
0LQLQJOHJDFLHVFDQKDYHDVLJQLÀFDQWKXPDQDQGHQYLURQPHQWDOLPSDFWDWDORFDOVWDWHQDWLRQDO
and even international level. Unfortunately an effective response to the problem has been held
back by a lack of understanding about the nature and extent of the issues and a lack of leadership
necessary to address it. Adopting the more comprehensive umbrella term and concept of mining
OHJDFLHVDFURVV$XVWUDOLDQMXULVGLFWLRQVZRXOGEHDJRRGÀUVWVWHSLQÀQGLQJFRPPRQJURXQGDQG
solutions to what is a national legacy.
Furthermore, the changing scale and intensity of mining in Australia in combination with
cumulative and perpetual impacts demands a rapid and effective response to mining legacies.
)DLOXUHWRGRVRZLOOUHVXOWLQRQJRLQJHQYLURQPHQWDODQGVRFLDOLPSDFWVDQGDJURZLQJÀQDQFLDO
OLDELOLW\IRUGDPDJHVDQGUHKDELOLWDWLRQZKHQWKHLVVXHLVÀQDOO\DGGUHVVHG
While different states and territories will need to customise policy responses to local conditions,
LW ZRXOG EH VLJQLÀFDQWO\ DGYDQWDJHRXV WR LQGXVWU\ JRYHUQPHQW DQG FRPPXQLW\ LI WKHUH ZHUH
D FRPELQHG UHVSRQVH 3UREOHPV ZLWK LQDGHTXDWH ÀQDQFLDO LQVWUXPHQWV DQG D ODFN RI HIIHFWLYH
regulation continue to restrict efforts to prevent future and rehabilitate existing mining legacies. Both
industry and government should accept some responsibility for existing sites and work together
with community to progressively rehabilitate existing sites.
Australian and international work on mining legacies has already established a need for action
and outlined the essential components needed to address the challenges of rehabilitating mining
legacy sites. These actions and systems should be pursued as soon as possible to mitigate ongoing
pollution, to address community and public health concerns and to repair the environment. To
paraphrase Laurence (2006), mining legacies should not be orphans; rather the responsibility for
them should be accepted today by industry, government and community instead on leaving the
challenge to future generations.
ACKNOWLEDGEMENTS
The Mineral Policy Institute’s Mining Legacies Project (www.mininglegacies.org), including this
paper and presentation, is encouraged and funded by Josette Wilder, Earth Welfare Foundation, and
other donors. Thanks to the anonymous reviewers for their thoughtful and constructive comments.
Finally, we sincerely acknowledge Claire Lockyer and the committee for their patience and support
in facilitating this paper to make it into the conference.
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