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M I N I N G A N D D E V E L O P M E N T

Global Mining

Its Not Over

When Its Over:


WORLD BANK AND
MINE CLOSURE
INTERNATIONAL

FINANCE CORPORATION AROUND THE WORLD


.....

O U R M I S S I O N
To work with passion and
excellence with our clients
to promote a vibrant mining
sector in developing countries.
Our vision is a mining
sector that, by attracting
responsible private investment,
creates a foundation for
economic and social well-being.

THE WORLD BANK GROUPS


MINING DEPARTMENT

GLOBAL
MINING

The
Energy and
Mining
Sector Board

A joint service of the World Bank and the


International Finance Corporation

To find out more about the World Bank


Groups Mining Department, visit our web
sites at http://www.ifc.org/mining or
http://www.worldbank.org/mining

On the cover: A detail of Arizona sandstone.

This publication is printed on recycled paper


(100% post-consumer waste) with soy inks.
..

M I N I N G A N D D E V E L O P M E N T

Its Not Over

When Its Over:


MINE CLOSURE

AROUND THE WORLD

WO R L D BA N K A N D
I N T E R N AT I O N A L
FINANCE
C O R P O R AT I O N
2002

M I N I N G A N D D E V E L O P M E N T
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ii

ACKNOWLEDGMENTS Mining and Development is published by the World


Bank Groups Mining Department. Its Not Over When
Its Over: Mine Closure Around the World was written
by Christopher G. Sheldon, Mining Specialist, John E.
Strongman, Advisor, and Monika Weber-Fahr, Senior
Economist, in the Mining Department. Background
research was provided by Nisachol Mekharat and
Madani Tall.

Copyright 2002 This is the fourth in a series of short papers that the
International Finance Corporation World Bank Groups Mining Department is publishing to
2121 Pennsylvania Avenue, N.W. share some of the experience and knowledge gained
Washington, D.C. 20433 through daily work with developing country policymakers,
USA the mining industry, and mining communities and their
www.ifc.org/mining organizations. Over the coming years, as the sector
www.worldbank.org/mining expands, governments, businesses, and communities in
many developing countries will face more and more
complex issues and difficult trade-offs. We hope to see
the Mining and Development series inform a wide
range of interested parties on the opportunities, as well
as the risks, presented by the sector.

The views expressed are those of the authors and do


not necessarily represent those of the World Bank
Group. IFC and the World Bank do not guarantee
the accuracy of the data included in this publication
and accept no responsibility whatsoever for any
consequence of their use. Mention of a proprietary
name does not constitute endorsement of the product
and is given only for information.

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CONTENTS
v Foreword, by James Bond

1 Mine Closure: A Complex Issue That Needs Proactive


Management

3 A New Wave of Mine Closure: At Least 25 Major Cases over the


Next Decade

5 How Much Does It Cost And Who Picks Up The Bill?

7 Preparing for Mine Closure: Get in Early

9 Setting the Scene: Legal Frameworks, Fiscal Regimes, and


Planning Processes in Support of Good Mine Closuret

11 Defining Responsibilities: The Future of Mine Closure in


Developing Countries

2 Box 1. Taking a Long-Term View

4 Box 2. Elements of Social Mitigation

5 Table 1: Mine Closure Issues Around the World

7 Box 3. Elements of Good Mine Closure Planning

8 Box 4. Chile Preparing for Closures

10 Box 5. A Legal Framework for Mine Closure

12 Box 6. The Sullivan Mine: A Model of "Best Practice"


Mine Closure
13 Box 7: Roles and Responsibilities of Stakeholders

15 Box 8: The World Bank Groups Work on Mine Closure

16 Appendix A: Checklist for Governments to Handle Sudden


or Orderly Mine Closure

17 Appendix B: Mines Up For Closure in The Next Ten Years:


Some Examples

18 Appendix C: Who Does What When in Mine Closure

18 References and Further Reading

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FOREWORD

A wave of mine closures is looming. Over  Unless mining companies take


the next decade, at least 25 major mines constructive action early on, they will be
in developing countries are scheduled for remembered for a legacy of negative
closure. How well these closures are environmental and social impacts and this
handled has the potential to shape the reputation might increasingly threaten
global dialogue on the costs and benefits future mining operations elsewhere.
of mining and shift it either way.
 Unless local communities are involved
Mine closure is an increasingly complex proactively, they will not be able to
process, and given the concerns of all ensure that the benefits from mining will
stakeholders regarding environmental, be sustainable for future generations.
social, and economic impacts, best practice
has long gone beyond technical solutions.  Unless governments provide legal
Nowadays, a trilateral process of frameworks and early planning and
consultation and problem solving, involving support to communities, governments
mining companies, governments, and will be left to manage large environmental
communities, is required for a mine to be and social problems.
closed successfully. In fact, to be fully
effective, the process of planning for mine Over time, mine closure will come to be
closure should start at the mine design stage. seen not simply as the end of mining, but
rather as one step in a larger process of
Proper mine closure can be the bridge to environmental recovery for ecosystems and
transfer capital extracted from mining to of social renewal for communities. These
generations to come, thus achieving recovery processes will continue long after
benefits for todays mining communities a particular mine ceases.
and countries that will be sustainable in
the future. Mining companies, mining
communities, and governments now have James Bond
the knowledge to ensure that economic Mining Department, World Bank Group
development opportunities based on June 2002, Washington D.C.
mining are not missed and that negative
legacies are not left behind. But, to achieve
this, early, concrete and pro-active
involvement is required:

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Its Not Over MINE CLOSURE


When Its Over: AROUND THE WORLD

Over the last few years, mine closure has stopped and mines were simply boarded
become one of the most difficult issues up and abandoned. That was mine closure.
facing mining companies, mining communities, Even today, that practice is sometimes
and mining countries around the world. For still followed. However, most countries
mining companies, safety, environmental, and most companies now recognize
and social risks can occur and significant that mine closure is much more than
liabilities can arise if closure goes badly. For stopping production and decommissioning
mining communities, mine closure can cause the mine. They readily accept that mine
severe distress because of the threat of closure also requires returning the land
economic and social collapse possibly of an to a useful purpose. But beyond physical
entire region. For governments, abandoned reclamation, it is increasingly becoming
mines can bring large environmental liabilities clear that the socio-economic issues of
and clean-up costs unless they set the right mine closure and the impact on workers,
frameworks. In any case, for both mining their families, communities, and the local
communities and government, mine closure economy must also be addressed.
usually means a severe reduction in income at
best, and a huge cost in terms of social and ECONOMIC AND SOCIAL ASPECTS OF MINE
environmental mitigation at worst. CLOSURE. In many cases, the mine is
the local economys primary provider of
All three parties mining companies, income, employment, and services. In
communities, and governments tend to such a context, mine closure will have
be heavily involved in mine closure issues. significant impacts on the well-being of
Moreover, each is directly impacted by the community. Such impacts are
and concerned about the other parties exacerbated in developing countries,
respective engagement. Mine closure where alternative economic activity may
processes are a prime example of how be more limited, and local government
the new model of trilateral dialogue and and communities often lack the capacity
cooperation that has been emerging in the needed to help structure a development
mining industry can reduce costs and process that would provide suitable
enhance results for all parties involved. alternatives. In most cases, the community
and the mine have developed an
Mine Closure: A Complex Issue that interdependent relationship, whether in
Needs Proactive Management terms of employment, services, infrastructure,
environmental impact issues, or taxes
Mine closure is a complex issue. A century and royalties. The level of this integration
ago when mines ran out of ore, production depends on various factors, including

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the age and location of the mine, the
companys approach to the community and
region, government policies, and the structure
BOX 1.
TAKING A
of the local and regional economy.
LONG-TERM VIEW

SUSTAINABILITY AFTER MINE CLOSURE. In It is important to place mining in a much longer


many mining communities and regions, a time frame than the period needed only to
major portion of government tax revenue operate the mine. Sustainability throughout the
comes from mining. If the mine closes, entire mine life cycle, from exploration to post-
will the government be able to replace closure, is the best preparation for successful
this income? What will be the impact on mine closure (also see Appendix A).
the governments ability to serve its
 If environmental management has been a
constituents? Mining communities that may
priority during the life of the mine, then
have received direct income from the mine
environmental management on closure will
will see a sharp decline in that income. It
be more manageable and less costly.
is important for governments and
 If community consultation has occurred and
communities to understand and plan for
relationships with stakeholders have been
the eventuality of mine closure (see Box 1).
developed before and during the life of
They need to develop both non-mining
the mine, then there is a solid base for
activities and other productive assets that
consultation in planning for issues
will last beyond the life of the mine and
surrounding closure.
generate income for future generations. At
 If financial resources have been set aside,
the same time, it is typically not possible to
then the closure plan can be implemented
replace the economic benefits of the mine
and communities can better provide for
completely; major adjustments will likely be
their future needs.
required.
 If partnerships have been developed and
implemented during operation, then the
ENVIRONMENTAL LEGACIES. Responsible
opportunities for handing over assets for
mine closure involves removing plant and
community use and for maintaining social
equipment and hazardous materials,
services successfully after closure will be
securing the pits and waste disposal
greater.
facilities, reclaiming the surface land, and
taking all necessary measures to avoid
possible future groundwater pollution. Many
countries have been burdened with a legacy Today, governments often require mining
of unplanned closures, unsafe workings, companies to post environmental bonds or
hazardous sites, and unreclaimed land. Many contribute to environmental reclamation
of these sites are in developed countries. funds to ensure that sufficient funds are
Developing countries attracting new available to close and rehabilitate a mine.
investment can learn lessons from these
situations to establish safeguards against SOCIAL ASSETS AND SERVICES. Mining
unplanned closure. In particular, steps need communities often have become dependent
to be taken to ensure that funding is on the infrastructure and facilities provided
available to rehabilitate the mine on closure. through the local mine. In Eastern Europe

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and the former Soviet Union and in many A New Wave of Mine Closure: At Least
countries in Africa, Asia, and Latin America, 25 Major Cases over the Next Decade
much of the housing and many of the
hospitals, schools, and preschools were A first wave of mine closures has already
owned by mines before they were privatized. begun to occur in the past decade, especially
The more remote an area, the more likely it in China and the coal and lignite industries
is that roads and transportation networks, in Eastern Europe and Germany. In
improved telecommunication, and water Germany, for example, over two-thirds of
and sanitation services are provided the lignite industry has been closed. The
through a mining operation. When the mine cost of over US$5 billion includes mine site
closes, the mining company can no longer rehabilitation, stabilization of large waste
maintain these services. Simply handing dumps, and dismantling and detoxification
over these services to government rarely of ancillary plant and equipment. In Poland,
works. Governments are not always set up about one-third of the hard coal mines have
to manage such services, and not all of the been closed. Over 100,000 workers have
services are financially viable in and of left the industry, at a cost of about US$1.5
themselves. billion in severance pay and US$500 million
in physical closure costs (see also Box 2 on
CAPACITY BUILDING. In recognition of this next page). In China, in the year 2000
problem, new approaches to solve alone, about 40,000 illegal small-scale coal
some of these concerns are being mines and over 250 state-owned coal
developed around the world, mostly mines were closed1. In South Africa, over
focused on building capacity within both 100,000 workers have been retrenched from
mining communities and local governments the mining sector in the past few years.
to maintain essential services. A notable Many have returned to their homes in
example is the Misima mine in Papua New neighboring countries without employment.
Guinea, which is scheduled for closure
in 2004. Placer Dome, which manages Over the next decade, a large number of
the mine, has worked with the local mine closures is expected, particularly in
government and communities for more developing countries. A number of factors are
than five years to develop capacity to contributing to this trend. First, following a
manage social services after closure. An surge in mining investments and privatization
alternative approach was adopted in in the 1960s, 1970s, and 1980s, many of
Zambia where, after the copper mines the large modern mines established during
were privatized, a large number of social this period are now beginning to move
services, including housing, needed to be toward the end of their economic life.
transferred from the mining company to Second, increased pressures on the
other management. Here, local contractors commodity markets will leave room only for
have been tapped to provide the services the most cost-effective producers. At the
needed in a financially viable manner. same time, fiscal pressures in poor countries
are reducing direct and indirect subsidies to
mining operations, whether privately run or

1 Mining Annual Review (2001).

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BOX 2.
ELEMENTS OF SOCIAL MITIGATION

Local communities, governments, mining companies, and other stakeholders have a variety of instruments
to choose from to mitigate the social costs of mine closure.

LABOR MARKET INTERVENTIONS. The most common labor market instruments include the provision of
redundancy payments, retraining schemes, and voluntary redundancy schemes. Mostly used by governments
in the case of the restructuring of state-owned mines, these instruments are increasingly of interest to private
mining companies. The companies may choose to take an active role in any of these arrangements as a
partner of governments in mine closure planning and preparation. In the case of urban communities,
support for new business development and microenterprise financing can be very important. For example:

 In Romania in 1998, the government offered a generous lump sum financial package to encourage
workers to leave the coal mining sector. Over 80,000 workers (about half the industry workforce) took
the package but no measures were taken to create new jobs. Consequently, most of the funds were
used for consumption. When they ran out less than a year later, the workers came back to the
government demanding jobs and social assistance. The government responded by developing a
social mitigation program to generate new economic activity in the mining regions, including the
conversion of disused mine buildings to Workspace Centers, technical assistance to help establish
small businesses, employment incentives for on-the-job training to create new jobs, and provision of
microcredit facilities. Implementation of the program has been supported by a Mine Closure and
Social Mitigation project, financed by the World Bank.
 In Upper Silesia in Poland, many mine workers received 24-month lump sum payments, accompanied
by counseling and small business support services. Surveys indicate that nearly one-third of these
Silesian workers have successfully established their own businesses.

SAFETY NETS FOR THE MOST VULNERABLE. In many cases, the sudden loss of income and access to social and
other services hits the most vulnerable the hardest: children, older people, or the sick, such as members of
mine workers households infected with HIV/AIDS. Depending on the specific country, different models of
arranging for safety net type interventions are possible. In most cases, communities and governments feel
responsible for caring for these groups. In some cases, companies have stepped up and supported communities
in providing such care where they felt a particular responsibility (for example, South Deep mine in South Africa).

SETTING ASIDE FUNDS TO FINANCE SOCIAL MITIGATION. As in the case of environmental issues at mine closure,
it is imperative to set funds aside early to finance social mitigation measures. Such funds can derive from the
central governments fiscal income from mining. They can also take the form of other types of contributions,
made directly by the company or set aside by local government during times of high economic activity.

FOOD SECURITY ISSUES. Communities may have become accustomed to purchasing much of their food from
outside sources, thanks to their mine-related wages. Especially for rural or remote communities, food security
planning, agricultural training, and other support will be needed to ensure that they can re-establish the ability
to grow all they need.

GENDER ISSUES. In designing interventions for social mitigation it is important to recognize the specific impacts
of mine closure on women in the workforce (e.g. women might not work directly as miners but be just as
affected by mine closure in administrative or other supporting functions) as well as specific gender dimensions
of redundancy arrangements (e.g. eligibility of entire households for retraining).

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government-owned. Many mining country How Much Does It Cost And Who
governments now focus on enhancing the Picks Up The Bill?
attractiveness of their countries for
international mining investors. The resulting CLOSURE COSTS CAN VARY. The costs of
competition often results in the closure of physical mine closure vary greatly, depending
inefficiently run mines (see Table1). on the age, location, and type of mine and
mineral extracted. The variation depends
At least 25 large mines in developing largely on the physical size of the mine and
countries are scheduled for closure within its infrastructure, the history of environmental
the next 10 years (see Appendix B). In management (often linked to the age of the
some cases, this will have a major impact mine), the volume of waste, and the
on the economy. In Papua New Guinea, for geological characteristics (acid rock
example, three of the countrys four large drainage issues, for instance). Closure
mines will either close or stop mining within costs for environmental issues range from
the next 10 years. These three mines less than US$1 million each for small mines
directly employ about 5,000 workers and in Romania to hundreds of millions of
generate 15 to 18 percent of the countrys dollars for large lignite mines and associated
GDP. In each case, the mine is the only facilities in Germany. More typically, closure
major economic activity in the region. In costs will range in the tens of millions of
China and India, reforms and restructuring dollars. Preliminary research indicates that
of the state-owned mining sector may also medium-size open pit and underground
result in a large number of mines to be mines operating in the past 10 to 15 years
closed and social needs to be addressed, cost US$5-15 million to close, while
potentially impacting several hundred closure of open pit mines operating for
thousand workers and their families. over 35 years, with large waste and tailings
facilities, can cost upwards of $50 million.
TABLE 1: MINE CLOSURE ISSUES AROUND The occurrence of acid rock drainage adds
THE WORLD
significant costs in terms of dam and
dump rehabilitation and water treatment.
Historical Large State Government Responsible
Legacy of Mining Well Prepared Mine Costs need to be estimated on a case by
Abandoned Industry Today for Mine Closure case basis and updated regularly to ensure
Mines Closures Closure
that sufficient funds are available for closure.
North America Many None Yes Mostly
& Australia THE POLLUTER PAYS, IN PRINCIPLE. Who
will pick up (which part of) the bill for mine
Europe Some Yes Yes Mostly
closure will depend on laws and regulations
laying out the roles and responsibilities for
Asia, Latin Some Few No Some
America, mine closure, as well as on a number of
Africa (now other factors, including individual agreements
starting)
that companies have reached with
Former Soviet Few Yes No Some
governments or communities, governments
Union policies toward mining communities and
E. Europe (improving)
regions, and the political pressures the
latter might be able to exert within any

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given country. In all cases, however, the operational phase, the cost at the time of
polluter pays principle is applied, also given final closure should be much lower.
that developing countries cannot afford to Planning and acting early on can save tens
pay the clean-up bill for private mining of millions of dollars in rehabilitation cost
companies responsibilities. upon closure.

The cost of physical mine closure tends Most mine closure plans have so far grossly
to be significantly lower if the mine operator underestimated actual closure costs.
is in charge of the closure and clean-up Updated cost estimates need to be based
process, rather than government or upon the latest available data, technology,
environmental funds. This is primarily due and current legal requirements and take
to the operators familiarity with the mine account of changes in the mining
site and the lower incremental cost of using community rather than merely updating
on-site equipment and staff. Government cost estimates based on old closure plans.
policy should therefore encourage Maintaining accuracy in cost estimates is
companies to provide for and conduct further complicated by unexpected
physical mine closure themselves. changes in the length of mine life. Such
changes occur mostly when commodity
However, the cost of cleaning up prices of the mineral being mined drop
abandoned mine sites in developed significantly, thereby shortening the expected
countries has often fallen to government economically useful life of the mine.
(e.g. the USA Superfund), as sufficient
funds for closure were not provided for by INSTRUMENTS FOR FINANCING MINE
the mine during its operations. In cases of CLOSURE. Given the structure of capital
such historical legacies, it is debatable investments necessary for most mining
whether the taxpayer, the consumer or operations typically resulting in negative
the mining industry should pay. New cash flows for the first years of an operation
technology may also allow old mine sites mining companies tend to be reluctant to
and waste to be reclaimed economically put aside large sums of money early in the
when mining firms re-invest in previously life of the mine. One approach regarding
abandoned mines (e.g. La Colorada in funding for closure is to set aside funds
Mexico and Nkana in Zambia). progressively over the life of the mine so
that sufficient funds are available at the end
EARLY COST ESTIMATES ARE CRITICAL. to cover closure costs.
Obviously, very good cost estimates are
needed to make sure that sufficient funds Various financial instruments have been
will be made available toward the end of developed that would assure governments
the mine life. Initial cost estimates should be and communities that companies will be
prepared early in the mines life (preferably able to live up to their obligations, even if a
before the mine opens) and should be particular operation must be closed earlier
updated systematically on a regular basis than expected. Such instruments include
(every 5 years for a 30-year mine life; every closure bonds, warranties, securities, and
2 years for a 10-year mine life). If the mine insurance. The key is to ensure that the
is progressively rehabilitated during the resources exist for the mechanism to be

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used when it is needed. Such instruments
can also be useful to provide funds for
dealing with unexpected problems that
BOX 3.
ELEMENTS OF GOOD
may arise during or after closure. While
MINE CLOSURE PLANNING
they may be considered separately, social
costs related to redundancy payments, Good mine closure planning should begin at the
trust funds, transfer of social assets, and feasibility stage and contain at least the following
contributions toward future maintenance six elements:
and operations of social assets also need
 Clarity about time lines and costs
to be estimated and funded.
 Specifics about the expected final landform
and surface rehabilitation, including removal
Careful consideration is also needed
of plant and equipment and stabilization
regarding post-mine closure costs. In the
and detoxification of dumps and
case of some Canadian mines, annual
impoundments
expenditures of US$10 million are needed
 Risk assessment to help set priorities for
in perpetuity to neutralize acid rock drainage
preparatory work
from the closed workings. Governments
 Cost-benefit analysis of different options as
need to require that sufficient monitoring
the plan is being prepared, reviewed, and
takes place after closure and that ongoing
updated
environmental issues are addressed.
 A management plan for how closure will be
implemented
Preparing for Mine Closure:
 Proposals for post-closure monitoring
Get in Early
arrangements (who monitors, for how long,
who pays, who enforces compliance with
An initial mine closure plan is best
environmental requirements).
developed at the time of mine licensing
(see Box 3). This can have several Mine closure plans should be integrated with
important benefits. An initial mine closure annual mining plans, especially regarding
plan can influence key technology and environmental protection.
waste disposal choices before mining
commences and thereby enable
rehabilitation to be built into operational
activities at a lower cost over the overall The mine is expected to close in 2011;
mine life. Also, considering closure early however, closure planning has already
can result in a plan that places decisions commenced. Under this situation, the
regarding the size and location of townships company has the opportunity to work with
and other social infrastructure in a time the government to make services such as
frame that goes beyond the life of the mine. health care sustainable.

For instance, the Ok Tedi mine in the COMMUNITY CONSULTATION. One of the
Western Province of Papua New Guinea is most important lessons learned by mining
the only major economic entity in the companies over the past decade or so
province and runs what are arguably the is that community consultation, in
best medical facilities in the region. combination with early mine closure

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planning, can have a profound effect on
the design of a mine and its supporting
infrastructure often leading to higher
BOX 4.
CHILE PREPARING
efficiencies and better management.
FOR CLOSURES

At the Misima mine in Papua New Guinea, Chile is certainly one of the countries most
for instance, a state-of-the-art hospital was successful in making its mining sector a
built for the community, only for the mining veritable engine for growth. Environmental laws,
company to discover later that what the regulations and institutions govern the mining
community wanted and needed was much sector, and thus mine closure, just as any other
more basic health care, including better sector. Some specific mine closure issues are
access to everyday medicines and to currently under review, but generally the
inoculations, as well as some modest system is considered adequate to ensure
improvements in water supply and environmentally appropriate mine closure.
sanitation. Had the company undertaken
better consultation with the community in
After about 100 years of mining, most mine
designing the mine and considered the
closure processes have affected smaller mines.
implications for mine closure, it would have
However, the country is now beginning to con-
looked at how it could work with local
sider the likely impact of the upcoming closure
government to provide more of the
of some of its larger mines. Will the positive eco-
everyday health services that the community
nomic impact of mining on the regional
really wanted, probably at a lower overall
economies be sustainable? Local and regional
capital investment and without having
mesas de dialogo were formed over the last
generated an asset that may prove
year or two to bring together the larger and
problematic to hand over, operate and
medium-sized mining companies, local and
maintain when the mine closes.
regional governments, and representatives from
communities, local industry and
Consultation provides the vehicle to bridge
commerce, academia, and training institutions.
the gap between corporate and community
The aim is to develop sustainable clusters of
expectations, as well as between company
economic development in and around the
knowledge and community experience. If
major mining regions that have the potential
done well, consultation offers important
to generate productive activities even without
possibilities to improve mine design and
the mining sector.
operation and to undertake joint monitoring.
(For example, for the Porgera mine in
Papua New Guinea, the Porgera that want to see economic benefits to the
Environmental Advisory Committee, or local community sustained after the mine
PEAK, provides independent external closes (see Box 4).
stakeholder oversight of environmental
performance.) Consultation can also lead ENVIRONMENTAL PROTECTION AND
to joint decision-making, especially regarding RECLAMATION. The traditional approach
social assets before and after mine closure. toward environmental protection and
The business case for consultation is reclamation has largely been for mining
particularly strong for mining companies companies to take care of any surface

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safety hazards and secure the pits, flooding Aberfan coal waste dump collapse in
open pits and, where needed, providing for Wales, which buried a nearby school.)
pumping or drainage of water from
underground workings nearby and sealing Some physical assets will be of ongoing
the entryways, shafts, and adits. This is no benefit to local communities, governments,
longer sufficient. Good practice today and businesses. Important social or pro-
requires removing unwanted plant and ductive assets and infrastructure should be
equipment, stabilizing and securing waste transferred, depending on their nature, to
dumps and impoundments, detoxifying government agencies, nongovernmental
hazardous materials, protecting ground organizations (NGOs), private sector
water, addressing any acid rock drainage entities, or the community.
issues (which in the worst cases can be a
severe problem), and reclaiming, rehabili- In Romania, old mine buildings have been
tating, and revegetating land in a manner sold to entrepreneurs for new business
compatible with local vegetation. ventures to generate new employment.
At the Kelian gold mine in Indonesia, a
Such environmental protection and working group of mining company managers,
clean-up apply not only to the mine site local community representatives, and
but also to all locations affected by the government officials has been formed to
operation, including any rivers, ports, and help arrange the transfer of useful mine
other transshipment points, some of which infrastructure to the local community and
may be a hundred miles or more from the government. If the right match is found
mine site. For example, in the case of the with a new owner who has the technical,
Ok Tedi mine in Papua New Guinea, the managerial, and financial capabilities
transshipment port is over 200 miles from needed to operate the asset, there is a
the mine, and the area impacted by the good chance that these services can be
disposal of mine waste and tailings operated and maintained viably after the
extends over 1,200 miles from the mine mine closes. At the same time, there may
site to the Torres Straits. not be feasible long-term solutions for all of
these assets. A 50-MW power plant in a
DISPOSAL OF ASSETS. Most mine production remote location well connected to the mine
assets have little value at closure. Those site but only partially connected to
that can be sold should be sold or surrounding villages and hamlets may
converted to another productive purpose. simply not be an economic asset to be
Otherwise, plant and equipment need to maintained or operated by the community
demolished or dismantled and removed. in the post-closure period.
Some assets such as tailings impound-
ments, open pit and underground mine Setting the Scene: Legal Frameworks,
workings, and dumps cannot be removed, Fiscal Regimes, and Planning Processes
and these should be stabilized and made in Support of Good Mine Closure
secure and safe. This is a serious task:
there are examples of loss of life or severe A clear legislative and fiscal framework that
environmental harm because an improper sets the parameters for mine closure is the
approach was used. (An example is the sine qua non for developing a mining

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10
sector whose benefits are sustainable
even long after mines must be closed (Box
5). Some countries and jurisdictions
BOX 5.
A LEGAL FRAMEWORK
(especially in North America and Australia)
FOR MINE CLOSURE
have established detailed mine closure
requirements and procedures. But most A legal and regulatory framework for mine
countries, in particular, developing countries, closure should:
currently have few or no applicable laws,
 Clarify issues relating to closure planning as
regulations, standards, or norms let
part of the approval process
alone institutions and government agencies  Specify mine closure procedures, environ-
with a mandate and the experience to mental requirements and standards, and
support mining companies and communities institutional responsibilities and authorities,
in the trilateral cooperation necessary for including:
successful mine closure.  the requirements and procedures to
ensure that effective and meaningful
LEGAL FRAMEWORKS. Without a good legal consultation takes place with local
framework for mine closure, mining communities as part of mine closure
companies do not know their obligations preparation and planning
and potential future liabilities, and mining  responsibilities for monitoring and
communities do not know their rights or ongoing management if environmental
responsibilities. The absence of a liabilities are incurred.
comprehensive legal framework for mine
closure can also lead to inefficiencies and The framework should also:
confusion among different ministries and  Require regular updates of the closure plan
government units at the central, regional, throughout the life of the mine
and local levels. Unless they know the lines  Allocate responsibilities for the provision of
of authority and responsibility, they will not adequate financial resources to cover closure
be able to ensure that mine closure takes costs.
place properly and that adequate monitoring
occurs after closure. In countries with a In setting statutory or regulatory requirements that
federal system, such as the United States, all mine closure plans need to meet, laws and
Canada, Australia, Brazil, and Argentina, or regulations need to be developed in consultation
in countries considering decentralization of with important stakeholders, including the local
authority, such as Indonesia, the regulatory communities, to ensure that concerns are met
regime needs to specify clearly the and insights and experiences are incorporated.
demarcation between the authority of the
central government agencies and that of
the provincial and local agencies. investments in the mining region and
mining community during the mine life.
FISCAL REGIMES. Mining fiscal regimes can Such allocations can be understood to be
be designed so as to make provisions of a compensatory nature recognizing
towards the mitigation of mine closure the costs of mining operations in terms of
impacts. On the one hand, governments social disruption and other local concerns.
may choose to set aside specific funds for At the same time the allocations can have

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11
the specific objective of building a basis for can help reduce the dependency of the
future economic development, with the region on the mine. It can also create a
end of the mines life in view. On the other trilateral context for planning and delivering
hand, governments may choose to infrastructure and social services (such as
encourage mining companies to undertake transport, power, health, and education) by
similar investments in the mining region. agencies other than the mine.
This would be done by allowing for tax
deductions for companies investments in With the proper framework and resources,
physical and social infrastructure services. local communities and governments will be
This course of action is particularly useful in the prime partners in any trilateral economic
developing countries, where the private development planning process. They are
sector often provides infrastructure and most aware of local needs, opportunities,
social services to the mining area (such as and aspirations. However, they need both
transport, power, health, and education) the financial and technical resources
that are provided by governments in (including capacity) to manage the transition
developed countries. as well as their future responsibilities. The
national government can play an important
Activities of this nature can further include role in this regard, particularly because it
the financing of training or the provision of typically receives the most tax payments
credit schemes that support the development from mining operations. It may consider
of non-mining business activities that could allocating some of the funds to local
help reduce dependency on the mine. communities and local governments
Furthermore, financial resources can be especially to help them build capacity to
used to help build capacity within local work toward sustainability after mine closure.
government and the local community for
the management of resources and assets. Defining Responsibilities: The Future of
Mine Closure in Developing Countries
ECONOMIC PLANNING PROCESSES. Economic
planning activities, driven by regional or By working together, mining companies,
local government agencies, can help governments, and communities can minimize
tremendously in mine closure preparation the risks of mine closure and maximize the
and planning (see Box 6 on next page). opportunities it presents (see Box 7 on page
Taking a larger regional perspective 13 and Appendix C).
beyond the mining activity itself allows
stakeholders to examine options and MINING COMPANIES: DRIVERS OF CHANGE.
opportunities whereby the mining operation, Mining companies have a crucial role to
and its investments in human capital and play in early planning and close trilateral
infrastructure, can help meet broader cooperation, both of which are key
development needs and create a spring- elements of successful mine closure. Mining
board for growth in preparation for the companies know best all the elements and
post-closure situation. To the extent that details of the operation and its potential
provincial and local government agencies post-closure impacts. For example, by
can successfully integrate a mining project properly designing the means to address
into the regional development plan, this the environmental aspects of the closure

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12

BOX 6.
THE SULLIVAN MINE: A MODEL OF
BEST PRACTICE MINE CLOSURE

The Sullivan mine in Northwest Canada presents a particularly interesting example of


successful post closure because of the long view taken by all parties involved. Owned by
Teck Cominco, the mine had been operating for over 90 years before it was closed in late
2001. During its life, it generated over $20 billion in revenue and was a major source of
employment and income for the local government. The potential for a negative impact on
the local community from mine closure was significant.

However, the local government of Kimberley recognized the upcoming challenge over 20
years ago and has since worked proactively to diversify the local economy. For the past ten
years, the local government and the mine have worked in partnership to attract investment
and stimulate development. Kimberley is located in beautiful surroundings in the Rocky
Mountains. The area has long attracted tourism; however, it lacked any major tourism
investment. The mining company developed a ski hill and provided low-cost land for a golf
course to the local government. The government purchased the ski hill and developed the
golf course, and was able to package Kimberley as a year-round resort area and attract
major investment from a resort developer. The mining company is also involved in supporting
a residential housing development to attract new residents to Kimberley, particularly retirees.

With a mine of this age, there were significant environmental issues of concern to the
community. A Sullivan Public Liaison Committee was established to ensure that community
concerns were heard and that environmental issues were managed in consultation with the
local government, the community, and NGOs in a transparent process.

Tourism development may not be replicable in many cases of mine closure in developing
countries. However, the process by which the mine, the local government, and the
community have worked together in this case is readily applicable elsewhere. The three key
lessons were to start early, work together, and show that government needs to lead the
process, with company support.

process and the post-closure situation, communities. It is thus in the best position
mining companies greatly help the social to make a concerted effort to help build
sustainability of the community in the post- capacity for long-term and financially viable
closure period. This is especially the case local management of these services not
for rural and farming communities. just at the time of mine closure but during
the operational phase as well. It is equally
At the same time, the company will have important that mining companies ensure a
provided services to employees or to local satisfactory transfer of responsibilities for

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13

BOX 7.
ROLES AND RESPONSIBILITIES OF
STAKEHOLDERS

MINING COMPANIES LOCAL GOVERNMENT

 Begin planning for closure at the feasibility  Prepare for the post-closure period.
stage; regularly update closure planning,  Develop sustainable service delivery.
with full disclosure of all impacts and issues.  Support economic diversification.
 Work in partnership with local governments
and communities during mining, mine
closure planning and closure, building
CIVIL SOCIETY
capacity and social capital.
 Ensure availability of financial resources for  Support communities in reducing their
closure at time of closure. dependency on the mine.
 Implement closure in line with laws,  Engage in service delivery,
regulations and agreements with where appropriate, before and
government and local communities. after closure.
 Monitor mining and closure activity.

LOCAL COMMUNITIES

 Avoid dependency. DONORS AND INTERNATIONAL


 Participate in closure planning. FINANCIAL INSTITUTIONS
 Use income to prepare for the future.
 Support governments, as necessary, to:
 establish a modern legal framework
for mine closure.
CENTRAL GOVERNMENT  finance closure costs and social
support for workers leaving
 Provide an adequate legal and regulatory
state-owned mining operations.
framework for closure, as well as institutions
 facilitate regional
to monitor and enforce its provisions.
planning.
 Responsibly invest and distribute fiscal
 encourage economic
revenues from mining.
diversification.
 Promote sound local and regional planning.
 Disseminate good practices.

social and infrastructure services and a LOCAL COMMUNITIES: MAKING THE MOST OF
satisfactory transfer of responsibilities OPPORTUNITIES AND AVOIDING A CULTURE
for ensuring the stability of any remaining OF DEPENDENCY. Local communities are
decommissioned assets, such as tailings often best positioned to manage the future
impoundments. of their own economic development.

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14
However, they have often become overly CENTRAL GOVERNMENT: SETTING CLOSURE
dependent on the mine to provide their RULES. The central government has the role
needs. For example, in rural locations, as of providing a legal and regulatory frame-
workers give up agriculture or fishery to work for mining and mine closure, including
work for a mining operation, and as cash assurances that adequate funding is
incomes flow into a community, communities available for closure costs, proper licensing
often begin to import part of their food occurs, environmental monitoring takes
supply, consequently reducing their own place, and environmental management is
food security and self-sufficiency. enforced.
Dependency is increased where communities
have been kept in the dark about the CIVIL SOCIETY: MONITORING PERFORMANCE
mines activities and future and thus are AND STRENGTHENING CAPACITY. Many
not encouraged to plan ahead or better civil society organizations and NGOs see
manage their own affairs. The main role for their main role as monitoring the perform-
local communities is thus to work toward ance of mining operations. While this can
avoiding such a culture of dependency be useful if done in a constructive manner,
or, where this has already happened, to there is an equally important role for these
work proactively with mining companies organizations to play in helping local com-
and different levels of governments to munities strengthen their planning and
achieve independence and self-sufficiency. leadership capacities. NGOs can help com-
By thinking about closure from the start munities avoid reliance on handouts and
and proactively working with company and overdependence on mining for services and
government officials, communities can iden- economic activities. They can also play a
tify and take advantage of the opportunities very valuable role in helping to operate
mine closure can bring. social assets and infrastructure if it fits with
their capabilities and missions. In some
LOCAL GOVERNMENT: ENABLING African countries, church agencies are tak-
COMMUNITIES TO TAKE RESPONSIBILITY. ing over educational and health care facili-
Local governments have a key role to play ties after mines are closed. In Papua New
in enabling communities to take responsibility Guinea, NGOs are helping train local gov-
for their own future. Local governments are ernment officials. In Niger, they are under-
typically responsible for providing services to taking innovative rehabilitation
communities. Often, they are also involved programs, and in Indonesia they are
in monitoring and ensuring that mining takes managing community projects initiated by the
place in a responsible manner. Local mining companies. The private sector can
government can make efforts to proactively also take on the role of delivering services.
initiate local and regional economic planning
processes in which all groups, including the BILATERAL DONORS AND INTERNATIONAL
mining company and mining communities, FINANCIAL INSTITUTIONS. Bilateral donors
can actively participate. Most importantly, they and international financial institutions (IFIs)
can make sure that some of the fiscal transfers such as the World Bank can help facilitate
they receive as tax payments from the mining mine closure preparation and planning, in
operation are used to build social and particular with respect to the legal and
infrastructure assets viable in the long term. regulatory frameworks required and the

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15
capacity building and training activities physical mine closure, social mitigation,
needed on the local level (see Box 8). At regional planning, and economic recovery.
the same time, where no such planning Given that the issues and concerns over
has taken place in advance, donors and mine closure are still emerging, these
IFIs can assist governments in their efforts institutions also have a role to play in
toward social and environmental mitigation, sharing and disseminating good practices
especially for state-owned industries. IFIs and cross-country experience.
can also support initiatives regarding

BOX 8.
THE WORLD BANK GROUPS
WORK ON MINE CLOSURE

For more than 10 years, the World Bank Group has actively supported countries undertaking
mine closure and restructuring. The main focus of this work has been on restructuring the
state-owned coal sectors in Central and Eastern Europe and the former Soviet Union.
The assistance provided to governments has involved large loans and credits to finance
the mitigation of large-scale reductions in employment (in some cases, involving hundreds
of thousands of workers) and the remediation of negative environmental legacies so as to
facilitate the closure of uneconomic mines. In over 20 countries around the world, the Bank
Group has also worked with governments to include mine closure and sustainability in
their mining legal and regulatory framework. Through the International Finance Corporation,
the World Bank Group also invests directly in private mining operations and works with
the sponsors to improve sustainability and ensure early preparation for closure.

The World Bank Group also actively disseminates knowledge about best practice and
experiences around the world and provides assistance to improve mine closure planning.
A workshop on Mine Closure and Sustainable Development was organized in March 2000,
co-hosted by the Metal Mining Agency of Japan. In November 2001, the Bank Group
co-sponsored a Roundtable on Sustainability at the Sullivan Mine, British Comubia.
In June 2002, a workshop followed that focused on local issues of capacity building for
managing mineral wealth. Upcoming events include a conference, in Papua New Guinea,
on Mining and the Community, in September 2002 (pciu@mineral.gov.pg). In addition, the
Bank Group participates in a number of partnerships with the mining industry, such as
Business Partnership for Development (http://www.bpd-naturalresources.org/index.html).

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APPENDIX A
CHECKLIST FOR GOVERNMENTS TO HANDLE SUDDEN OR ORDERLY MINE CLOSURE

I. ASSESS RISKS OF SUDDEN MINE CLOSURE

Analyze:
 Existing mine closure plans  The capacity of local administration
 The structure of the local economy

II. CONSIDER KEY ISSUES FOR ORDERLY MINE CLOSURE

Timing and structure of closure Particular risks of dependency


 Are plans in place?  Are the impacts on the poor identified, and are
 Are regular reviews made? they being adequately addressed?
 Are post-closure monitoring mechanisms in place?  What share of the local and regional economy
 Can standards and arrangements for closure depends on mining?
be tailored to specific situations?  Have the opportunities to use the mine
infrastructure as an engine for growth for future
Social and economic aspects development been identified, and has agreement
 Are arrangements in place for the transfer of the been reached on implementation arrangements?
socio-economic infrastructure?  Are arrangements in place to maintain and operate
 Are adequate financial resources being committee this infrastructure so that it can be sustained after
by the mining company? closure?
 Are the necessary financial mechanisms in place
to make these resources available? Development planning to mitigate risks from
 Are future risks being taken into account, such as mine closure
fluctuations in metal prices, which may  Do the national, regional, and local authorities
unexpectedly accelerate closure? include the scenario of closure in their
development planning?
Environmental aspects  Are provisions being made to use the benefits of
 Are environmental roles and responsibilities mining to support development initiatives geared
defined? to closure?
 Are closure, rehabilitation, and clean-up properly
defined? Labor market interventions
 Are satisfactory arrangements and agreements in  What labor market interventions will be needed
place for alternative land uses after closure? upon closure, and have they been put in place?
 Are safety issues taken into account such as dam
stability in the post-closure context?
 Are satisfactory arrangements for post-closure
monitoring identified and in place? Source: World Bank (2001)

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MINES UP FOR CLOSURE IN THE NEXT TEN YEARS: SOME EXAMPLES
APPENDIX B
COUNTRY SITE LOCATION MINERAL SPONSOR LIFESPAN EMPLOYMENT SOURCE OF INFORMATION
Argentina Cerro Vanguardia Gold, Silver AngloGold (46.25%), Perez Compac (46.25%), 2010 469 http://www.anglogold.com/AboutAngloGold/FactSheets/Cerro.asp
Santa Cruz Province (7.5%)
Brazil Serra Grande Gold AngloGold (50%);TVX Gold Inc. (50%) 2008 640 http://www.anglogold.com/AboutAngloGold/FactSheets/SerraGrande.asp
Brazil Crixas Gold AngloGold (50%), TVX Newmont (50%) 2009 N/A http://www.tvxgold.com/properties/mines/crixas.htm
Chile Agua de la Falda Gold Barrick Gold Corp. 2002 N/A Barrick Annual Report 2001
Chile El Indio Gold, Copper Barrick Gold Corp. 2002 N/A Barrick Annual Report 2001
Chile La Coipa Gold, Silver Placer Dome (50%), TVX Normandy Americas Inc. (50%) 2008 440 http://www.placerdome.com/properties/index.asp
Chile Michilla Copper Antofagasta (74%), Chilean Investors (26%) 2007 463 http://www.antofagasta.co.uk/mining/michilla/m_key.html
M I N I N G

Chile Quebrada Blanca Copper Aur Resources (76.5%), Pudahuel and ENAMI (13.5%) 2012 N/A http://www.aurresources.com/SA_que.html
Mali Sadiola Gold AngloGold (38%), IAMGOLD (38%), GOM (18%), IFC (6%) 2008 820 http://www.anglogold.com/AboutAngloGold/FactSheets/Sadiola.asp
Mali Morila Gold AngloGold (40%), Randgold Resources (40%), GOM (20%) 2009 770 http://www.anglogold.com/AboutAngloGold/FactSheets/Morila.asp
Mali Yatela Gold AngloGold (40%), IAMGOLD (40%), GOM (20%) 2007 N/A http://www.anglogold.com/AboutAngloGold/FactSheets/Yatela.asp
Mexico Cerro San Pedro Gold Glamis Gold Ltd. (50%), Metallica Resources Inc. (50%) 2008 N/A http://www.glamis.com/properties/mexico/cerro_san_pedro.html
A N D

17
Namibia Namdeb Diamonds DeBeers 2010 N/A http://www.eyeworks.co.za/debeers/deb009bm.htm
Namibia Navachab Gold AngloGold 2005 350 http://www.anglogold.com/AboutAngloGold/FactSheets/Navachab.asp
PNG Misima Gold, Silver Placer Dome (80%), Orogen Minerals Ltd. (20%) 2004 668 http://www.placerdome.com/properties/index.asp
D E V E L O P M E N T

PNG Porgera Gold Placer Dome (50%), Aurion Gold Ltd. (25%), Orogen Minerals 2012 2,000 http://www.placerdome.com/properties/index.asp
Ltd. (20%), the Enga Provincial gov't and landowners (5%)
PNG Ok Tedi Copper, Gold BHP Minerals Holdings Pty Ltd. (52%), the State (20%), 2011 2,300 Company announcement
Inmet Mining Corporation (18%), Mineral Resources Ok Tedi
No.2 Limited (10%)
South Africa Free State Gold AngloGold Limited (100%) 2002 2,400 Company announcement
South Africa Ergo* Gold AngloGold Limited (100%) 2004 1,270 http://www.anglogold.com/AboutAngloGold/FactSheets/Ergo.asp
South Africa Bambanani Gold AngloGold Limited (100%) 2005 6,130 http://www.anglogold.com/AboutAngloGold/FactSheets/Bambanani.asp
South Africa Savuka Gold AngloGold Limited (100%) soon 3,680 http://www.anglogold.com/AboutAngloGold/FactSheets/savuka.asp
South Africa Great Noligwa Gold AngloGold Limited (100%) 2009 9,650 http://www.anglogold.com/AboutAngloGold/FactSheets/GreatNoligwa.asp
South Africa Namaqualand Diamonds DeBeers 2010 2,181 http://www.eyeworks.co.za/debeers/deb009be.htm
South Africa Tau Lekoa Gold AngloGold Limited (100%) 2008 3,600 http://www.anglogold.com/AboutAngloGold/FactSheets/TauLekoa.asp
South Africa Tau Tona Gold AngloGold Limited (100%) 2011 5,260 http://www.anglogold.com/AboutAngloGold/FactSheets/TauTona.asp
South Africa Tshepong Gold AngloGold Limited (100%) 2012 3,870 http://www.anglogold.com/AboutAngloGold/FactSheets/Tshepang.asp
Tanzania Willliamson Diamonds DeBeers 2006 756 http://www.eyeworks.co.za/debeers/deb009bl.htm

*(previously East Rand Gold and Uranium Company Limited)


..

18

APPENDIX C
WHO DOES WHAT WHEN IN MINE CLOSURE
FINAL RESPONSIBILITY MONITOR SUPPORT/COOPERATE

ACTORS Framework Exploration Construction Operation Closure Post-Closure

GOVERNMENT
SET ROLES & MONITOR AND
MONITOR, ENFORCE, INFORM
RESPONSIB. INFORM

MINING INITIAL
SUPPORT
COMPANY CONSULT DESIGN SITE W/CLOSURE IN VIEW PARTNERSHIPS MONITORING
THEN SUPPORT

COMMUNITY SUPPORT
INTEGRATE CLOSURE PLANNING IN BUSINESS PROCESSES
FORM AND SUSTAIN PARTNERSHIPS WITH COMPANY AND OTHERS

LOCAL SUPPORT
BEGIN REGIONAL PLANNING PROCESSES WITH CLOSURE IN MIND EARLY ON
GOVERNMENT SET-UP AND SUSTAIN PARTNERSHIPS SUSTAINABLE ECONOMIC ACTIVITIES

NGOS/CIVIL SUPPORT
LINKS TO INTERNATIONAL NGOS
SOCIETY ORG. CAPACITY BUILDING FOR LOCAL COMMUNITIES MONITOR AND INFORM

INTERNATIONAL SUPPORT
DISSEMINATE BEST PRACTICE - DEVELOP AND PROPAGATE STANDARDS AND GUIDELINES
AGENCIES WORK WITH GOVERNMENT, COMPANIES AND COMMUNITIES

REFERENCES FURTHER READING

Mining Annual Review 2001, Mining Journal LTd.,  The Sullivan Round Table, held in Kimberley, British
London, UK. Colombia, Canada, from November 4-6, 2001,
examined sustainability throughout the mine life
Remy, Felix, and Gary MacMahon. 2002. Large cycle in mines in Canada, Latin America, and
Mines and Local Communities: Forging Papua New Guinea. For further information please
Partnerships, Building Sustainability. Mining and contact Teck Cominco in Vancouver, Canada.
Development (April 2002). World Bank Group,
Mining Department, Washington, D.C.  Mine Closure and Sustainable Development
Workshop (2000) Proceedings. Available for purchase
Weber-Fahr, Monika and Craig Andrews, Leo from Mining Journal Books Ltd., UK.
Maraboli, John E. Strongman. 2002. An Asset for e-mail: books@mining-journal.com
Competitiveness: Sound Environmental web: www.mining-journal.com.
Management in Mining Countries. In: Mining and
Development, May 2002, Washington, D.C.  World Bank Group Mining Department:
www.ifc.org./mining
World Bank. 2001. Poverty Reduction Strategy www.worldbank.org/mining
Sourcebook-Mining
www.worldbank.org/poverty/strategies/chapters/  World Bank Group Guidelines on the Environment
mining/mining.htm (IBRD/IDA, IFC, MIGA)
www.worldbank.org/environment/op_policies.htm

 The World Bank Groups Environmental Agenda


www.worldbank.org/environment

 Experiences with Partnerships between


Governments, Mining Firms, and Local
Communities: www.bpd-naturalresources.org/

M I N I N G A N D D E V E L O P M E N T
.....

T H E WO R L D BA N K G R O U P S M I N I N G D E PA R T M E N T

S E R V I C E S TO G OV E R N M E N T S Sovereign lending and advice for the


design and implementation of policy and
regulatory frameworks and interventions
that help:

Support private sector development and


attract national and foreign investment for
environmentally and socially sustainable
mining.
Equip government agencies to manage
fiscal revenues from mining.
Create economically, environmentally, and
socially sustainable mine closure programs.
Encourage local and regional economic
development in the context of mining.
Equip government agencies to restructure
and privatize mining operations.
Equip administrations to better
administer/monitor and enforce
environmental and social laws and
regulations.
Encourage coal extraction strategies that
minimize global warming effects.

S E R V I C E S TO T H E P R I VAT E S E C TO R Support and financing for environmentally


and socially sustainable private sector
investment in developing countries
mining sectors through:

Equity investment in and loans to mining


companies, including loans syndicated from
commercial banks under IFCs syndications
loan umbrella.
Various risk insurance instruments (IBRD,
MIGA).
Advice and investment in support of
privatization.
Partnerships to disseminate and apply
best practices (Business Partners for
Development: www.bpdweb.org)

IFC has 29 mining projects in its portfolio for a


total of $669 million (FY2001).

S E R V I C E S TO C I V I L S O C I E T Y Support the dialogue with mining


D E S I G N : S T U D I O G R A F I K , H E R N D O N , VA .

companies and government by:

Facilitating access to information on


projects, policies, and best practices.
Arranging conferences and other formal and
informal meetings.
Supporting partnerships with mining firms
and civil society organizations that integrate
civil society in mining activities.
Promoting general accessibility to
civil society regarding World Bank and
IFC-financed projects in mining and related
activities.
.....

Mining Department

World Bank and


International Finance Corporation

2121 Pennsylvania Avenue


Washington, DC 20433 USA

www.worldbank.org/mining
www.ifc.org/mining

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