By: Francisca Rivero and Camila Cabrera Lillo, Sustainable Minerals Institute International Centre of Excellence, Chile.

Abstract

The mining industry has gradually advanced in its understanding of mine closure. There is evidence of reflections and planned actions aimed at achieving an effective technical closure; however, gaps remain in the integration of social aspects. This paper aims to propose an integrated model for managing mine closure that facilitates the economic, social, cultural, and environmental transition of local inhabitants in a post-mining scenario. 

To this end, a benchmarking of closure experiences and a comparative analysis of national regulations in Peru and Chile were carried out, along with a review of international standards.

In addition, an instrument was developed to identify critical information for the design of a Comprehensive Closure Plan and a tool to assess the social impacts and opportunities associated with mine closure. 

The main outcome of the study was the design of an Integrated Closure Management Model that includes the following components: Knowledge-building base, Assessment of social impacts and opportunities, Design of a social closure plan, and Integrated management systems.

The study concludes that, within the framework of mine closure, social performance teams should lead the processes from a multidimensional perspective, identifying the social impacts involved and generating strategic work plans with the various stakeholders. Social management competencies should exist both as a specialized business function and within government agencies responsible for overseeing the process. 

Furthermore, the inclusion of social aspects of mine closure in national regulations represents an opportunity to enrich laws and regulations so that they can adequately respond to closure challenges from a social perspective.

Finally, achieving a Comprehensive Closure Plan that considers all these aspects requires intersectoral dialogue and agreements that promote territorial development and support a sustainable legacy based on community well-being.

Keywords: Social Management, Mine Closure, Planning. 

Introduction

In recent years, the industry has gradually advanced in fully understanding the scope of a social closure of a mining operation. Reflections and planned actions have emerged that complement the certainties of technical closure; however, there is still a way to go in effectively integrating the challenges posed by the social aspects of mine closure.

Conventional wisdom suggests that, in order to optimize the closure of a mining operation, social aspects should be included in the planning process. A more progressive approach is to invert this logic, ensuring that closure considerations are embedded in social performance from the very beginning of a mining project. This approach prevents social aspects from becoming an additional element to the normal planning processes for mine closure (Owen & Kemp, 2018).

The mine closure process, from a social perspective, involves addressing a series of transitions that go beyond changes and transformations resulting from the closure of a mining operation. It also refers to the transitions that local inhabitants are compelled to undergo as a result of the social, economic, environmental, and cultural impacts generated by closure.

To plan a mine closure, it is essential to have solid practical knowledge of the social impacts associated with this transition. These may be impacts generated over years of mining activities or impacts that emerge during the closure process itself. It is important to understand how these actions will affect future social, economic, and environmental systems.

Mining companies should take into account land ownership and use, resources, and infrastructure throughout the entire life cycle, as well as the concerns and aspirations of key stakeholders regarding post-mining transitions. This allows closure considerations to be integrated into land-use agreements, social investment programs, and other safeguard mechanisms.

Research projects conducted by SMI-ICE-Chile on social mine closure have made it possible to gather information and build a solid knowledge base for designing and proposing comprehensive closure plans for mining operations in Chile. At the same time, the applicability of these plans, their outcomes, and the barriers they face have led to deeper exploration of critical areas, such as the regulations governing closure processes and the imperative to incorporate integrated management into the process.

Objectives

This paper aims to propose an integrated model for managing mine closure that facilitates the economic, social, cultural, and environmental transition of local inhabitants in a post-mining scenario.

The specific objectives are:

ν Describe the objectives, scope, and opportunities presented in mining legislation regarding closure in Peru and Chile.

ν Describe the transitional processes that lead to mine closure: economic, social, cultural, and environmental transitions.

ν Propose and describe the basic components that should be included in an integrated closure management model, based on international standards and conceptual approaches to quality of life.

Development and Data Collection

The methodology for this study was based on the following stages:

1. Benchmarking of international and national mine closure experiences.

2. Comparative analysis of national regulations in Peru and Chile regarding aspects of mine closure.

3. Review of international and corporate standards related to mine closure.

4. Analysis of gaps, barriers, and opportunities for comprehensive mine closure.

5. Development of an instrument to identify critical information for the design of a Comprehensive Closure Plan.

6. Design of a tool to assess the social impacts and opportunities of mine closure.

Presentation and Discussion of Results

The knowledge base on the physical aspects of mine closure is significantly more extensive and developed than that on social issues. Unlike environmental closure processes, standards, guidelines, knowledge, and tools for managing social aspects are at an early stage of development, while implementation is inconsistent. Companies tend not to have a robust policy framework (including internal standards or guidelines) to address the social aspects of closure, and few governments have policies or laws strong enough to address these gaps (Bainton & Holcombe, 2018).

A review of Peruvian and Chilean legislation reveals a strong emphasis on the technical closure of mining operations. In both cases, the legislation is robust, but with a clear weakness in incorporating the social aspects of mine closure.

In the case of Peru, Law No. 28090, which regulates mine closure, states that the aim is to involve local authorities and the population living in the project's area of influence as much as possible, since, ultimately, they will be the ones who benefit or suffer from the outcome of the mine's total closure. In this regard, the following participation mechanisms are established:

ν Publication of notices in the Official Gazette El Peruano and in the newspaper with the widest circulation in the capital of the corresponding region, or in a national newspaper distributed in that region, reporting the submission of the closure plan, the locations where it can be accessed for review, and the platforms where observations may be submitted.

ν Radio broadcasts.

ν Submission of the closure plan to regional, local, and district authorities, as well as to the presidency of the community in the area where the activities contained in the mine closure plan will be implemented.

ν In general, anyone may request a copy of the closure plan file from the Ministry of Energy and Mines.

In Chile, Law No. 20551, which regulates the Closure of Mining Operations and Facilities, states in Article 13 (k) that one of the requirements for submitting the closure plan to the competent authorities is a community outreach program on the implementation of the plan.

The regulations of this law specify that the purpose of the community outreach program is to inform the public about the closure measures, implementation dates, and deadlines for the execution of actions. The basic contents that this outreach plan must include are:

ν Outreach plan objectives.

ν Target audience.

ν Implementation strategy.

ν Schedule of activities.

ν Means of dissemination, such as talks, publications, or similar.

As can be seen, in both cases the legislation does not address the social dimension of closure from a transitional perspective, nor does it go beyond the level of information or dissemination. It appears that the regulation emphasizes that the inhabitants of the territory affected by the closure process are duly informed, but without involving them in consultative and/or deliberative processes on the economic and social transition they will face, the management of cumulative impacts, and even less so the vision of social investment in post-mining scenarios.

The evidence shows that the laws regulating and guiding social performance during mine closure are scarce and limited. Mining companies rely heavily on their own standards and social performance functions to identify and mitigate the social risks associated with the closure of their operations.

It must be considered that the knowledge base, capacities, and resources available during the operational life of a mine are not adequate for the closure and post-closure phases. Closure poses unique challenges in terms of social impacts and risks, and requires specialized knowledge, skills, and resources to successfully carry out a process as profound as mine closure.

In Chile, few mining companies have actually closed operations; however, every currently active operation, as well as projects under development, must have an approved closure plan. Few companies have developed their own standards to explicitly address the social challenges that arise during closure: social transition, new land uses, and social impacts related to environmental impacts. Because current regulations do not address the social impact of closure on communities, they limit the ability of companies to deploy mechanisms to mitigate the new risks associated with mine closure.

Currently, many aspects of territorial development related to mining, used as evidence of the industry's ability to share long-term benefits and contribute to “sustainable development” processes, are in fact highly contingent on the continuous operation of the mine. Efforts to fully understand the implications and expectations for the future of impacted communities have been limited.

It is imperative to work in advance to resolve essential issues for community well-being in post-mining scenarios. This involves devoting efforts to designing strategies that avoid or limit the economic dependence of communities, working to develop the skills needed to strengthen communities' capacities for a successful post-mining transition, and collaboratively planning actions aimed at revaluing the territory from the perspective and interests of the affected communities.

The identification of social impacts at closure cannot be an afterthought. Companies must demonstrate, in concrete terms, the delivery of positive benefits and sustainability for local communities after their withdrawal from the territory. In closure contexts, any failure to deliver on promises will be more evident and will be scrutinized twice as much by local communities that were among the direct beneficiaries of mining-generated development.

The ICMM, in its Integrated Mine Closure Guidance, uses the concept of a social transition to inform mine closure planning (Figure 1).

If we understand the concept of social transition proposed by the ICMM from a perspective of economic dependency, and complement it with a conceptualization that promotes the self-sustainability of communities impacted by closure, it becomes necessary to identify, for each case study, a set of enablers that facilitate the transition and significantly influence the communities.

In the cases studied in Chile, some of the key enablers have been: governance, cultural revitalization, access to energy, connectivity, land, and water resource management. A more detailed analysis will be worthwhile in other mining operations and/or sites where the particular characteristics of the territory, the relationship established between the company and the communities throughout the entire mining life cycle, and the presence or absence of the State, may configure different scenarios. In such cases, it will be necessary to deepen and fully identify the enablers that will allow social transition beyond the economic dimension alone.

Within this framework, the assessment of social impacts and opportunities is a key instrument in the process. Since identifying and addressing the social aspects of mine closure is a constant and uncertain exercise that requires future projections and an applied consideration of alternatives, a social impact and opportunity assessment can help identify potential challenges and opportunities for a prosperous post-mining future.

A social impact assessment includes the processes of analyzing, monitoring, and managing the social consequences, both positive and negative, intended and unintended, of planned interventions (policies, programs, plans, and projects), as well as any process of social change brought about by those interventions.

Its main purpose is to achieve a more sustainable and equitable biophysical and human environment. The methodological process proposed for carrying out a social impact and opportunity assessment consists basically of two stages, as shown in Figure 2.

The Social Framework represents a simple conceptual model to highlight the social issues that contribute to people’s well-being and that are affected by large projects. At the core of the Framework is people’s well-being. Individuals are used as the primary unit of analysis, recognizing the fact that considerable inequality exists within households and communities, and that it is important to understand how some people are more vulnerable to project-induced impacts than others (Smyth, Vanclay, 2017).

This approach recognizes that individuals are an integral part of families and communities, and that there is a codependency between these different social layers. “Well-being” is understood as an all-encompassing notion that includes the fulfillment of basic needs (e.g., food, access to water, etc.), enjoying good mental and physical health, having the capacity to pursue one’s goals and thrive, feeling connected to the local community, and having an overall sense of satisfaction with life.

Considering the dimensions proposed by the Social Framework in the assessment of social impacts and opportunities is essential to make visible how impacts are manifested differently for each of the inhabitants of the territory involved in the closure process.

Complementarily, the instruments and tools proposed by the ICMM in its Community Development Toolkit are proposed for inclusion in this evaluation phase, as they ultimately enable greater engagement and inclusion of people in decisions that affect their lives (ICMM, 2012).

The various instruments and conceptual approaches that form the basis of this proposed discussion provide some guidance for proposing the key components of an Integrated Closure Management Model, which is reflected in Figure 3.

Component 1 - Knowledge-building Base

Gathering information on the territory, the communities within the area of interest, and other actors or stakeholders is a priority and a fundamental step in order to establish the foundations of what, with whom, how, and by when social transition processes will be implemented. Having a good selection of enablers will contribute to making the information-gathering process a quality exercise that helps build a solid knowledge base.

Component 2 - Assessment of Social Impacts and Opportunities

As previously described, this assessment will enable the teams responsible for closure planning to understand the expectations, perceptions, and concerns of those who will be affected. Triggering this process early will help design more relevant plans that respond coherently to the possible gaps identified. This kind of assessment makes it possible to identify the impacts generated throughout the mining life cycle and provides those affected with the opportunity to move from a level of informative participation to a deeper level of deliberation and contribution to territorial development from a well-being perspective.

Component 3 - Design of the Social Closure Plan

This component of the model accounts for the moment of strategic planning between the company, the community, and the stakeholders. Information is available, analyzed, and shared; there is a clear identification of the enablers that will support the transition process in a post-mining scenario, and the social impacts have been assessed. Therefore, it becomes possible to design the corresponding compensation or mitigation measures or, if agreed upon, long-term territorial investment plans.

From an integrated management perspective, it is necessary to establish spaces for exchange and dialogue among the different actors involved in closure planning and to build a shared vision that addresses the key aspects of technical closure as well as the social aspects.

Component 4 - Integrated Management Systems

By making visible the integrated management systems for an Integrated Closure Management Model, we highlight the need to have in place a set of policies and procedures, records of commitments, complaints, and stakeholder databases. An accessible, transparent system that makes information available when required supports closure planning by enriching it with relevant and meaningful social information.

The proposed Model is adaptive and will be adjusted to the conditions, context, and relevance of the operations and territories where it may be applied. Similarly, we consider it a model whose application can be iterative; that is, depending on the closure planning process, this model could be applied at different stages or as suggested, be an integrated management model that accompanies the life cycle of a mining operation in its different phases.

Based on the study carried out, the suggestion just described would make it possible to have quality information at different points in time, better capture differentiated impacts and reveal the intergenerational trajectory that mining has had in the territory under study.

Ultimately, the Integrated Social Management Model for Mine Closure maintains key attributes such as flexibility, relevance, adaptability, and accessibility, thereby guiding closure planning processes in mining operations that fully address the challenge of identifying risks, managing them, and opening opportunities in post-mining scenarios.

Conclusions

1. The social challenges associated with mine closure are varied, and the risks are very high. What can be observed today is that companies tend to reduce the size of the social team during the closure phase of operations. However, the reality is that this stage would benefit from expanding the social team in order to carry out a risk mitigation plan and an effective and positive transition.

2. The social performance functions carried out during the operational life of a mine are limited in the context of a closure process. This includes both the capacities of the team and the social baseline that estimates impacts and informs the mitigation measures required for the social transition. In fact, the industry shows a limitation in effective capacities to address this challenge.

3. The social performance function should lead closure processes from a multidimensional perspective, identifying the social impacts that this process entails and generating strategic work plans with the different stakeholders in the process.

4. In fact, social management capabilities should exist as a specialized business function, generating and applying social data systems to improve operational performance. These competencies must be promoted among company leaders who recognize the value of social sciences in closure planning. Similarly, it will be essential to strengthen these competencies in the government agencies that oversee the closure process.

5. Based on this information, together with the study carried out and the review of background information, it is possible to identify areas for improvement and opportunities for the implementation of an Integrated Social Management Model for Mine Closure. This model can lay the foundations for generating institutional dynamics that guarantee high-quality social performance in matters of mine closure planning and management.

6. From a regulatory standpoint, the inclusion of social aspects in mine closure represents an opportunity to enrich and improve our laws and regulations so that they respond, appropriately and specifically, to the challenges of closure from a social perspective.

7. From the standpoint of the role of the State, the moment of closing a mine is when, beyond the regulations governing this process, the presence of the State becomes relevant. Firstly, to ensure compliance with the law, but also to collaboratively support the company in the social transition process that communities will undergo towards a post-mining scenario.

8. Given the social and political context of our countries, it is becoming increasingly urgent to address the requirements of key social actors in the territories in a timely and responsible manner. 

9. The State, together with industry and communities, must generate the necessary conversations and agreements to design scenarios for the future of mining transition that promote territorial development and commit to a sustainable legacy based on the well-being of communities.

10. In terms of the contribution of other actors, academia, through research-based evidence, can positively influence a fairer distribution of the risks and benefits associated with the mine closure process. We believe that the vision and lessons learned from academia and applied research, by examining industry processes and knowledge bases, would enable sustained progress and influence the public agenda to propose regulatory adjustments and enrich the planning processes for mine closure, from a social perspective.

11. Having an Integrated Social Management Model for Mine Closure is a first step toward organizing, systematizing, and establishing a sequential process logic that contributes to a complementary and integrated vision of technical closure. It offers the opportunity to generate debate and reflection to review the relevance of instruments, the timing at which these processes should be triggered, and the scope of application of the model, taking into account territorial, cultural, economic, and social variables.

References

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ICMM. 2012.Community Development Toolkit.

Owen, J. and Kemp, D. 2018. Mine closure and social performance: An industry discussion paper. Centre for Social Responsibility in Mining, Sustainable Minerals Institute, The University of Queensland: Brisbane.

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