An Overview of Environmental and Social Risks and Potential Financial Implications - Mining and the Environment: From Ore to Metal - page 569

Environmental Risks and Financial Implications
Investment in environmental controls - Major investment costs are necessary to provide environmental protection controls. Signifi cant increase in operation
costs could occur where outdated site facilities need to be replaced to satisfy a more stringent regulatory environment. Poor environmental performance in
the past may accelerate the demands for a more stringent regulatory environment.
Claim for accidental damage - Failure of pit walls, waste rock dumps, or tailings dam has the potential to cause loss of production time and loss of life with
associated fi nancial liabilities. Failure of tailings containment imposes a high environmental and fi nancial risk. Land subsidence caused by underground mining
may have severe fi nancial implication.
Risk related to global warming - Admittedly not everybody buys into the current dominant environment scheme of global warming. However, the potential
fi nancial consequences of a change of global climate on existing mining operations can be severe. A prolonged through can limit ore processing, and as such
revenue generation.
Mine closure fund - Provisions have to be made for rehabilitation of disturbed areas and eventually for site decommissioning and fi nal rehabilitation.
Groundwater rebound if it occurs may lead to resurgence of contaminated mine water at surface increasing mine closure costs substantially. Mine closure
constitutes a signifi cant and often long-term fi nancial commitment.