Understanding and documenting closure costs is increasingly important for mine planners. Minimizing closure liabilities during the project design phase and through integration of closure with operations requires an accurate understanding of the financial implications of closure. Recent changes to standards for accounting of “asset retirement obligations” created an additional need for regular updates to mine closure plans and cost estimates as part of shareholder reporting.
Our specialists have a thorough understanding of the complexities in the closure cost estimating process and of the various closure and financial assurance requirements across the globe. In addition to regularly creating bespoke closure cost models, we supported the development of the Standardized Reclamation Cost Estimator (SRCE) model. The SRCE was developed to provide a robust, defensible calculator for mine closure financial assurance in the State of Nevada, USA, and has been used internationally for financial assurance, life-of-mine, and asset retirement obligation cost estimates.
As your mine life comes to an end, the level of detail and accuracy that you need in your cost estimate increases, especially when long-term maintenance and/or management is needed. We focus on balancing capital costs against long-term operating costs, helping you determine whether to spend more money up front in order to minimize post-closure costs.
Services
- Internal closure cost estimates
- Financial assurance cost estimates
- Asset retirement obligation cost estimates
- Cost-benefit analysis of operational integration
- Comparison of capital vs. long-term operating costs
