Mine Closure and

Sustainability

Wisnu Susetyo
PT Adaro Energy, Tbk

22 February 2011, Singapore

Outline

• Sustainable closure practices

• Effective closure plan
• Mine impact management
• Regulations (Indonesia)
• Conclusion
SUSTAINABLE CLOSURE PRACTICES
Sustainable Mining
• Implement ICMM’s 10 Sustainable Development
Principles
• Form Sustainable Development Advisory Council
• Incorporate sustainable development considerations in
closure plan and other decision making process
• Together with local government, community and other
private companies develop non-mining sector in the area
• Infrastructure and facility which can be used by local
community beyond mine closure
• Education and training to improve quality of local human
resources
ICMM 10 Principles
• Ethical business practices and good corporate governance
• Sustainable development considerations in decision making
process
• Uphold human rights and respect local culture, customs and
values
• Implement risk management strategies
• Continuous improvement in health and safety performance
ICMM 10 Principles
• Continuous improvement of environmental performance
• Biodiversity conservation and integrated approach on land use
planning
• Responsible product design, use, reuse, recycle and disposal
of mining products
• Local social, economic and institutional development
• Transparent engagement and communication with
stakeholders
EFFECTIVE CLOSURE PLAN
Mine Life Cycle
• Exploration (typically 2-5 years)
• Pre-feasibility and Feasibility (1-5 years)
• Construction (1-2 years)
• Operation (5-30 years)
• Decommissioning (1-2 years)
• Post-closure (>5 years)
• Relinquishment
Strategy for Effective Closure Plan
• Start closure planning during early stage of project
development
• Collate goals and views of stakeholders
• Implement action plans to achieve goals
• Minimize liability and maximize benefits
• Ensure mitigation of risk in one area does not increase risks in
another
Start Early in Life Cycle
• Closure plan evolves over time as more info becomes available
• Conceptual closure plan is initially developed and refined
during Exploration to Construction
• Detailed closure plan is further developed during Operation
• Decommissioning and post-closure plan is further developed
near end of operation
Engage with Stakeholders
• Identify internal and external stakeholders
• Engagement with stakeholders should be undertaken
throughout the mine life cycle
• Engagement during operational phase should be at
appropriate level and frequency
• Engagement may not result in full consensus on closure
outcomes
• Should be considered successful if leads to fully informed
decisions
Balance Views and Expectations
• Understand different views and expectations among
stakeholders
• Stakeholders formulate together balanced, realistic and
achievable closure outcomes
• Consensus during closure planning creates stakeholder
ownership of closure outcomes
• Stakeholder engagement helps ensure successful closure
Consider Risks
• Health and Safety Risk
• Environmental Risk
• Social Risk
• Reputational Risk
• Legal Risk
• Financial Risk

All risks must be considered during closure planning

Use Contextual Information
• Conceptual closure plan should include contextual info that
helps inform decisions
• Social and environmental impact assessments
• Social, economic, environmental baselines
• Direct engagement with stakeholders
• Settlement status, transportation network, biodiversity
Set Closure Outcomes
• Set out closure outcome during early stage in the mine life
cycle
• Examples : environmental compliance, sustainable land use,
community development and health care
• Should allow development which does not impair company’s
future ability to minimize liabilities
• Must have buy-in from local community and government
Implement Action Plans
• Backbone of detailed closure plan consists of Action Plans for
each goal
• Create action plans for open pits, roads, tailings dams, waste
rock dumps, water management, workshops, accommodation
and offices
• Action plans should consist of task description, time schedule,
person in charge, resources and costs
Estimate Costs
• Allow company to accrue funds for closure
• Allow government to decide how much closure funds must be
deposited by company
• At conceptual stage closure costs can be broad estimates only
such as $200K +30%/-10%
• More precise estimate as more information becomes available
throughout mine life cycle
Monitor and Evaluate
• Establish baseline conditions
• Quantify changes due to mining operation
• How progression towards closure goals can be measured
(milestones)
• How achievements of goals can be demonstrated (success
criteria)
IMPACT MANAGEMENT
 Overburden and Acid Water Management

• Long-term geotech and geochem stability

• Acid mine drainage prevention or mitigation
• Acid water collection and treatment
• NAF material cover or limestone cap
• Top soil reuse for reclamation
• Monitoring of geotech stability, water quality, biodiversity
Tailings Management
• Tailings ponds, dams, controlled deposition area
• Wet, dry or phreatic design to minimize oxidation
• Tailings facility should be able to handle most probable flood
• River diversion out of tailings deposition area at the end of mine life
• Reclamation of tailings piles or deposition area
• Monitoring of dam stability, surface- and ground water quality,
rainfall and biodiversity
• Tailings utilization as construction material
Social Impact Management
• Fair land compensation or traditional land right recognition
• Adequate community development programs to prepare for
post closure
• Local institution building and community empowerment
• Infrastructure for healthcare, education and other facilities for
local people
• Train local community vocational and entrepreneurial skills
• Priority for local people to obtain work and business
opportunities
REGULATIONS
Regulations (Indonesia)
• Law no 4/2009 – Mineral and Coal Mining
• Law No 32/2009 – Environmental Protection and
Management
• Government Regulation XX/2010 – Mine reclamation and
Closure
• Decree of Ministry of Energy and Mineral Resources No
18/2008 – Mine Reclamation and Closure
Regulations (Indonesia)
• Environmental Permit as the prerequisite to obtain and maintain validity of other
business permits

• High volume low hazard wastes such as tailings are classified as “Special Wastes”
under hazardous and toxic wastes regulations

• Environmental standards should consider actual conditions so that they do not

become too tight and unnecessarily difficult to meet

• Standard criteria for land damage due to mining activity should consider the
nature of extractive industry

• Environmental rehabilitation fund required in Law no 32/2009 should not overlap

with reclamation bond and closure fund in Law no 4/2009
CONCLUSION
Summary
• Develop conceptual Closure Plan early in project life cycle and
revise it to detail plan as project evolves
• Use CP as a guideline in deciding direction of mine development
and project approvals
• Good CP results in minimum decommissioning and post closure
works and obligations
• Together with Government and NGOs prepare for post closure
sustainability of local communities and environment
Thank you
wisnu.susetyo@ptadaro.com