Economic Impact of Ascending Mine?Waters in Germany

Due to a political decision, German hard coal mining will come to an end in the year 2018. By then, there will have been more than 150 years of industrial grade mining activities. Located in the western part of Germany is one of the most densely populated areas of Europe. Multiple coal seams have embossed the earth?s surface up to 20 meters (21.87 yards), as mining has subsided. The aftercare of hard coal mining will consist of three tasks: groundwater management, polder management, and groundwater treatment. The Ewigkeitslasten (cost in perpetuity) at the current groundwater level has been determined in the past. The actual cash value is calculated to be about 12.4 billion euros (approximately 16.5 billion dollars). The cost of groundwater management is directly related to the groundwater level. Rising groundwater levels will reduce the cost of pumping water. Known effects of rising groundwater are uplift of the surface, emission of methane gas at the surface, higher risk of cave-ins, and contamination of drinking water horizons. Each of those processes produces cost in order to prevent negative consequences (e.g., uncontrolled methane emissions) or to handle reparations (e.g., damages caused by surface uplifts). In the long run, it is the goal to minimize the Ewigkeitslast. As a first step, all cost-generating processes are specified, and a cost type based characterization is performed. The objective of this case study is to identify key parameters to determine the quality of a cost-generating process (proportional cost, fixed amount cost). Afterwards, it is intended to specify the quantitative impacts of each parameter and to set up an optimization model to minimize the overall cost. The quantitatively specified parameters will form the base out of which the optimization model is created.