Estimating Site Closure Costs A Critical Tool For Reclamation Planning

Homestake Mining Company has developed an estimating model, based on other closed projects, to audit and prepare new estimating plans. The results of recent closure audits reveal that the original budgets were often insufficient to cover the present expected expenses. Some of the major areas where technical challenges and costs are increasing include heap leach pile detoxification and rinsing, tailings dam closure, water management and treatment, abatement of contaminated soils, and many others. Risk and sensitivity analysis of each category will develop a level of confidence in the estimate and allow management to focus on the pertinent issues. Periodic audits of closure plans and costs throughout the life of mine serves to focus management attention on the complete costs of production. This will result in improved overall planning and management, and reduce the number of missed opportunities for savings.