Closure Costs (Pay Me Now And Pay Me Later)

As the first wave of precious metal heap leach closures and reclamation projects occur, a number of companies are being hit with costly surprises. While this paper refers specifically to U.S precious metal projects, it could be conceptually directed at copper leach operations and acid rock drainage (ARD) problems on an international basis. ARD is Mother Nature's version of heap leaching, only with different products and timing. Although many precious metal deposits tend to be small in comparison with some base metals systems (porphyry copper deposits), adjacent or nearby discoveries have extended the operating lives of numerous precious metal mines. Now, depleted reserves, several years of relatively depressed precious metals prices and some properties with technical difficulties have resulted in numerous mine closures. As a result, our industry is getting a diverse and comprehensive initial look at mine closure and final reclamation. The situation has been further complicated by the evolutionary trend in regulations and their enforcement and increasing public and political awareness of all environmental issues. Concurrent (proactive) vs. deferred (reactive) reclamation and a realistic early appraisal of ultimate reclamation and closure requirements, not just regulatory compliance, need to be a part of project design. The U.S. and Canada are the current fertile testing grounds and have set the design, regulation and closure standards for the next wave of operations in Latin America, the CIS (?), etc.