DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Closure Planning Life of Mine and Life of Plan www.nt.gov.au/drdpifr.

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Presentation transcript:

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Closure Planning Life of Mine and Life of Plan

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Closure planning – why the confusion? There are 4 basic types that can be separated by the following two questions: 1.Is it for business planning or regulatory purposes? 2.What is the time frame being looked at, is it for present or the projected future?

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Regulatory reporting Short Term: Life of plan reporting Long Term: Life of mine reporting Business planning Short Term: Present closure obligation Long Term: Total projected obligation

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Dividing by purpose and time frame The key differences between business & regulatory planning are: –Who’s doing the work –What the intention is –What it includes

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Mining Management Plan requirements We ask for two types of plans – see our advisory note –Sec 6: Closure Planning is about Life of Mine –Sec 8: Security Calculation is about Life of Plan

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Life of Plan In this instance relates to the “life” of the current approved MMP (section 8) It is used to support the calculation of the security bond It describes what activities need to be undertaken by a third party to rehabilitate the site in the event of premature closure of the mine site within the period of the plan. Regulatory reporting Short Term: Life of plan reporting Long Term: Life of mine reporting

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Life of Plan Reporting Aspects to consider which are often misunderstood: –The operator will not be undertaking the works –Closure costs must not include any provision for remedying future disturbance in the Life of Mine plan –A rehabilitation plan for the short term is not a truncated Life of Mine plan

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Life of Mine Regulatory reporting Short Term: Life of plan reporting Long Term: Life of mine reporting In this instance relates to the planned life of the operation It describes what activities need to be undertaken by the operator to rehabilitate the site through the remaining mine life, closure and post closure monitoring to planned relinquishment.

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES Life of Mine Reporting Aspects to consider: –The operator will be undertaking the works –Closure planning must include any future disturbances –The Life of Plan report will eventually coincide with the Life of Mine report –NPV calculations

DEPARTMENT OF REGIONAL DEVELOPMENT, PRIMARY INDUSTRY, FISHERIES AND RESOURCES What is common to both plans Agreed end land use for the site Risk based approach The inclusion of a detailed schedule of works The use of the contingency