MINE CLOSURE TOOLBOX - Anglo American

1 MINE CLOSUREV ersion 2, 2013 TOOLBOXTOOL 1 CONTINUEDiANGLO American MINE CLOSURE TOOLBOXFOREWORDA nglo American seeks to be the investment of choice, the partner of choice and employer of choice. This means being the preferred development partner to communities and governments, and employer of choice in our areas of operation. We firmly believe that, together we create sustainable value that makes a real plays a significant role in human and economic development and, without the mining sector, society would not enjoy a large number of the benefits that it does today. The mining industry s rich history also carries some important lessons and one of these lessons is the poor CLOSURE or abandonment of mines by the industry worldwide.

2 If Anglo American is to achieve its ambition we must ensure that we leave a positive and sustainable legacy for our host communities after our operations have closed. The Anglo American Mine CLOSURE TOOLBOX details what is needed to achieve that goal. Since its official launch in 2008 it is now used throughout Anglo American s managed operations and also at some of our non-managed operations in partnership with other mining companies. The updated Mine CLOSURE TOOLBOX aims to further improve the quality of our CLOSURE planning. It increases the emphasis on the importance of designing, planning and operating a mine with CLOSURE in mind. Aimed at the people in our operations, the tool provides practical support as to how to achieve this outcome.

3 It is also important that a preferred future for the mine is developed in close consultation with communities. The tool reinforces our desire for improved community relationships and engagement. Some of the more immediate benefits from our updated Mine CLOSURE TOOLBOX can be lower CLOSURE liabilities, lower rehabilitation costs and more effective social investment and engagement. The TOOLBOX s integrated approach includes all aspects of a mine s CLOSURE : from the dismantling of machinery, the potential environmental and social impacts after CLOSURE through to the overall costs of CLOSURE . The Mine CLOSURE TOOLBOX , which is available in English, Spanish and Portuguese, is designed to be used in conjunction with our award-winning Socio-Economic Assessment TOOLBOX (SEAT 3) to support an integrated approach to risk assessment and sustainable development planning.

4 It can also be used in project development and planning, to ensure that brownfield and greenfield sites are planned and designed with CLOSURE in mind. Together, we create sustainable value that makes a real CutifaniChief ExecutiveAugust 20131 Anglo American MINE CLOSURE TOOLBOXCONTENTSFOREWORD iACKNOWLEDGEMENTS 1 INTRODUCTION 2 KEY CHALLENGES TO MINE CLOSURE 2 AIM OF THE TOOLBOX 3 LAYOUT OF THE TOOLBOX 4 KEY POLICIES AND PRINCIPLES THAT UNDERPIN THE TOOLBOX 4 WHO SHOULD USE THE TOOLBOX 4 TOOL 1.

5 STRATEGIC PLANNING FOR MINE CLOSURE 6 Background 8 Approach 8 TOOL 2: RAPID ASSESSMENT OF THE STATUS OF A MINE S EXISTING CLOSURE PLAN 9 Background 10 Approach 10 Definitions of terms used 11 Evaluation spreadsheet 16 TOOL 3: CLOSING THE GAPS IN THE CLOSURE PLAN 22 Background 23 Approach 23 Gap Reduction spreadsheet 24 CONCLUSION 39 BIBLIOGRAPHY 39 FIGURESF igure 1: Approach to achieve mine CLOSURE that delivers a positive legacy 5 TABLESD efinitions of terms used 11 ACKNOWLEDGEMENTSThe original report Version 1, 2007 was developed by Peter Coombes and Rudolph Botha from the then Anglo Technical Division, with the valuable inputs and contributions from Duncan Cameron, Karin Ireton and Jonathan Samuel.

6 This second version of the Mine CLOSURE TOOLBOX has been developed by Rudolph Botha of Anglo American s Technical Solutions with the support and inputs of various Anglo American technical resources. In addition to those who played a role in the development of Version 1, 2007, the author acknowledges the support and assistance of the following individuals who made valuable contributions to the development of this updated TOOLBOX :Human Resources: Jeanne Louw & Chris BothaHealth: Claudina Nogueira & Frank FoxGovernment & Social Affairs: Jonathan SamuelMine CLOSURE : Mark Aken, Charl Klynsmith & Ralton MareeGeneral: Samantha Hoe-Richardson & Peter Gunther Finally, the author would like to thank the various individuals across the Group who provided comment, examples and factual data since the launch of Version 1, 2007 for incorporation into this revised TOOLBOX is designed as an internal guidance document to assist operations and projects in the development of their mine CLOSURE for Anglo American by Rudolph Botha, Anglo American s Technical SolutionsFor more information contact: Mr Rudolph BothaManager: Sustainable Development and Civil EngineeringAnglo American s Technical Solutions45 Main StreetJohannesburg, Telephone: +27 11 638 2254 Fax.

7 +27 11 367 3273orMr Peter GuntherGroup Manager: Environment45 Main StreetJohannesburg, +27 11 638 5332 Published by Anglo American plcDesigned and produced by CreativityPrinted by Ultra Digital2 Anglo American MINE CLOSURE TOOLBOXINTRODUCTIONM ining has played a fundamental role in human development and improvement in quality of life, without which today s society would undoubtedly be significantly worse off. However, these benefits have not come without a cost to the environment and society, and have raised, over the years, a number of important issues. One of these is the complex issue of abandoned or ownerless mines that were not closed at the end of legacy has prompted operating mines to pay greater attention to rehabilitation and CLOSURE planning.

8 Often the focus is largely on physical CLOSURE planning for decommissioning of the workings and plant, dismantling of unusable infrastructure and rehabilitation of disturbed areas. However, mines are labour-intensive catalysts for the provision of bulk services in rural areas, and often provide or subsidise social services and infrastructure. Mining typically also has a significant multiplier effect, which increases the magnitude of the contribution to economic development. The result is that direct social benefits accrue during the operational phase of a mine. Linked to this is a side-effect, namely that mines , like other industries, create dependency.

9 Dependency occurs at a number of levels, namely macro-economic reliance on foreign exchange and tax receipts, socio-economic dependence on infrastructure and services, and local and regional economic dependence on income and employment multipliers and fringe benefits. In contrast to other industries, mining projects have finite life spans, which cannot sustain this dependency. Typically these social aspects of mine CLOSURE have, due to their complexity, received less attention than the physical aspects of CLOSURE . Currently when mines close, not only are the direct socio-economic benefits lost, but also the associated mine-supported services and infrastructure.

10 This can leave government and affected communities with significant challenges once mining companies have CHALLENGES TO MINE CLOSURET here are a number of key challenges associated with mine CLOSURE that have been taken into consideration in the development and update of this TOOLBOX . The idea of considering mine CLOSURE during the pre-feasibility, feasibility and design phases of a new mine is difficult as the focus is on the positive aspects of a new development. As a result the important opportunity of allowing CLOSURE to influence design and operation and achieve potential cost savings can be lost. Management changes several times in the lifecycle of a mine.