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New sources of revenue can offset

the costs and risks of closure

by Bill Reich and Roger Pearson

When a mine moves from operations to                to approach a mine site owner with the offer to
       closure, it shifts from the revenue to the   conduct reprocessing operations, with the mining
cost side in the company’s financial figures.       company receiving a fee that may be based on
This shift always takes a prominent role in the     a percentage of profits. So even if the mining
company’s management plans due to the distinct      company itself doesn’t want the task of setting
possibility of funding high-cost management and     up a reprocessing operation, it may still be able
remediation activities, along with securing and     to realize revenue from the site via a third-party
maintaining potentially long-term and expensive     operator arrangement.
financial assurance for these activities. This is
without having operating revenue as an offset           This works particularly well if there are
factor.                                             potential employees already in the community
                                                    who have skills that can be used by the
    However, what if there was a way to go on       reprocessing operation; if there are utilities such
earning revenue from the closed mine site –         as power and water on site; and if some of the
revenue that would help to offset the costs of      mine’s existing equipment can be adapted to the
treating mine water, various facility reclamation,  purpose. If the price of the target commodity is
closure and maintenance issues, financial           high enough, nearness to market does not need
assurance and other obligations?                    to be a factor.

    This article uses two perspectives to consider      Coordination with appropriate local,
some of the ways mining companies can gain          state and federal regulatory agencies to
revenue from closed mine properties. One            obtain required permits and approvals for a
focuses on the technical aspects of revenue         reprocessing operation would certainly be
from the mine site, and the other on compatible,    required. However, past experience indicates
post-closure redevelopment options. There are       that these agencies, along with local, regional
certainly other views on how to manage closed       and state economic development groups almost
mine sites. The two perspectives discussed here     always support opportunities to continue or
present basic approaches to illustrate how closed,  initiate operations that contribute to economic
or soon to be closed, sites can potentially be      and tax bases, including keeping workers
converted to alternative uses that continue to      employed.
generate positive revenue.
                                                    Converting to construction materials. One
Renewed focus on earning revenue from
closed properties                                   industry’s waste material can be raw materials

    The factors influencing the best ways           for another. Waste and development rock from
to generate revenue depend on the local
circumstances, as well as other factors such as     mining operations, along with neutralized leach
commodity prices. It is a toolbox approach, in
which only certain tools in the box are applicable  ore can potentially be used by the construction
for any particular job. Here are some examples
of revenue-generating tools for closed mine         and road-building industries. Depending on the
properties:
                                                    individual material properties, these materials
    Reprocessing of tailings and other waste.
In the past, the mining industry has looked at      can be processed into various construction
squeezing extra revenue out of closed or soon
to be closed mine sites by reprocessing tailings,   aggregate materials including concrete and
coal refuse, waste rock and heap leach piles, to
extract additional mineral values. A combination    bedding sand; road base; railroad ballast and
of improvements in extraction technology, a
willingness to extract mineral values that were     general fill material. Larger rock can be used for
not the target of initial production, and higher
commodity prices can be the trigger to reprocess    landscaping or rip-rap for erosion control.
these material and generate additional revenue.
                                                    The rehandling and processing of these
    It is not unheard of for third-party companies
                                                    materials is straightforward. Waste and

                                                    development rock would

                                                    be excavated from storage  Bill Reich is a Principal in the

                                                    dumps via existing mine    Phoenix, AZ., office of Civil &

                                                    equipment including front  Environmental Consultants, Inc.

                                                    loaders, excavators and    email breich@cecinc.com. Roger

                                                    smaller haul or dump trucks. Pearson, ASLA, LEED AP, a Senior
                                                    Spent leach ore would be   Principal in the Pittsburgh, PA.,

                                                    excavated from the leach   office of Civil & Environmental

                                                    pads in a similar manner.  Consultants, Inc.email rpearson@

                                                    There should be minimal    cecinc.com.

www.miningengineeringmagazine.com	                                             Mınıng engıneerıng    january 2017 1
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