ENVSEC: GRID Arendal
Risk Assessment Considerations in the Donetsk
Basin
Mine Closure and Spoil Dumps
For UNEP GRID Arendal
January 2009
In support of the Environment & Security (ENVSEC) Initiative work with the Ukrainian
Coal Mining Sector, 2008

ENVSEC
UNEP GRID Arendal
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© UNEP Grid Arendal
Risk, Mine Closure and Spoil Dumps in Ukraine
Executive Summary
The coal industry of Ukraine is a vital component of the national industrial infrastructure and
economy. Among other things, it underpins the metallurgical industry of the country with
coking coals, the thermal power generation sector with steaming coals, and it also supplies
both energy carrier and feedstock to the chemicals sector. Ukrainian coal reserves are
enormous, at some 25-30 billion metric tonnes, roughly half of which is anthracite and
bituminous coals, half lignite and sub-bituminous coals (IEA 2003; EIA 2007).
Despite this importance, the cost of mining activities to the country in environmental and
social terms has also been large. As a prime example, the mining areas surrounding Donetsk
constitute one of the most environmentally damaged regions of the Ukraine. The many
hundreds of coal mine sites have been key contributors to this degradation. In the past 15
years or so pursuant to economic restructuring, many mines have ceased activities or have
been targeted for closure. For most of these sites, closure is premature and is taking place
both before coal reserves are exhausted and before development of proper plans for safe,
environmentally responsible and socially robust closure.
As such, the Ukraine has been faced with an unprecedented occurrence of premature mine
closures that have the potential to cause significant adverse impacts on the environment and
community. The Ukraine is struggling to manage the process of mine closure in an
appropriate manner and society and the environment are suffering.
This document seeks to present a structured overview of risks that are associated with mine
operations and closure, and options for the conduct of work towards the reduction of such
risks. It has the intent to both support, and generate new ideas for, the ongoing coalmine
closure programme in the Donetsk region of Ukraine.
While there are numerous environmental and social effects related to the mining of coal in
Ukraine, this document addresses one key category – that of the ongoing environmental
effects of the many mine spoil dumps that litter the Ukrainian landscape. Because of their
makeup, positioning and condition, these dumps affect society and all the natural media (air,
water, subsurface) negatively. This work is a response from the ENVSEC Initiative to these
challenges. Thus, Risk Assessment Considerations in the Donetsk Basin: Mine Closure and Spoil Dumps
provides insights into how to improve processes to reduce environmental and social risks
associated with mine closure in the region with a particular focus on mine spoil dumps.
It has also been formulated in such a way that it can support work that must conducted in the
country to revise, improve and enforce regulatory frameworks for mining if the industry is to
yield the benefits that it could. In this light, the work carried out by the ENVSEC initiative
has had a point of departure that Ukrainian regulation will evolve so that it is more in line with
the forms of practice that are maintained in the world’s leading mining countries.
Moreover, generation of the text reflects recognition that a significant proportion of the spoil
dumps in the country (perhaps 2-5% of them)1 also have economic value that may be
leveraged. Where this is the case, opportunities exist to both remove the risks they entail, and
regain the land they occupy for alternative uses, at very low cost – or even at a profit.
However, the task of risk reduction and rehabilitation at dumps is undeniably complex and
presently beyond the capacity of the Ukrainian institutions. In addition to the evolution of
1
Personal communication: Evgeniy Altukhov, Uglemash, 5 August, 2008
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Philip Peck, UNEP GRID Arendal
mining policy, such work will require innovation and commitment from all stakeholders. All
of this is to be achieved in a difficult economic and institutional environment where the
Ukrainian coal sector remains in crisis.
In this light, industry production has fallen to less than half of historical highs and the country
is now a net coal importer. Moreover, the restructuring process has essentially been one-way.
Rather than a combination of unprofitable enterprise closure; revitalisation of mines with
profit potential, and opening of new modern mines operating in a transparent manner and
largely market economy, apparently ad hoc mine shutdown has dominated and progress has
been slow with revitalisation and market formation. The dominant proportion of mines
remains old with low productivity and many are dangerous and unprofitable. Moreover,
national plans to open new mines have gone slowly or have failed.
Contributing to the complexity of mine closure and the flow on effects of closure are
difficulties in general economic and market structures, and the nature of the privatization
process. Privatization of the coal industry in Ukraine has faced a variety of challenges,
including financial instability and common bankruptcy proceedings, a lack of transparency,
and even (alleged chronic corruption). All of these have also contributed to both a lack of
funds for addressing the social and environmental problems associated with mine closures,
and a lack of focus on achieving such goals. It is clear that technical excellence and
institutional dedication is required to improve the situation.
In recognition of these issues, the ENVSEC project has commissioned this document. It is to
be constitute the basis for ongoing work, and as such should be considered a foundation for
“living document” that can be revised and updated in parallel with data gathering on the
ground in Ukraine. This version of the document has been produced after two field missions
to the mining areas surrounding Donetsk and desk-top research. The first data-gathering
mission was in the Autumn of 2007, when a wide range of technical expert groups dealing
with mining and mining/environment issues were consulted. The second was conducted in
the Summer of 2008; here, a smaller group of informants were consulted and a site visits were
conducted to some 15 mine sites.
As such, this work has the following aim and objectives.
Aim: to map the relevant issues for mine closure in the region with a particular focus on
mine spoil dumps.
Moreover, it should also provide a basis for ongoing work by National partners that involves:
a) adaptation and application of relevant concepts of mining best practice to the
Ukrainian context;
b) adaptation and application of best practice mine closure planning processes to the
Ukrainian context;
c) examination of the completeness and reflection of “best practice” in Ukrainian
closure legislation;
d) examining the effectiveness of how the existing legislation has been implemented;
e) generating proposals for improvement of some policy measures (e.g. to the Ministry
of coal and eventually to the Ukrainian parliament).
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Risk, Mine Closure and Spoil Dumps in Ukraine
While the prime focus in this work is spoil dumps and pathways that can be taken to
ameliorate their negative environmental effects, this is not to imply that other issues are not of
great importance. To the contrary, it is simply that in line with the desires of the participating
Ukrainian Ministries, the focus of this work is upon spoil heaps and their effects. Other key
areas of environmental damage are addressed to a much lesser extent here but they are not
ignored. Such categories include land subsidence, coal bed methane, and the impacts of
pumped mine waters.
Moreover, it is recognised that structured mine closure risk consideration should be a part of
mine design and mine operational planning. As this is not the case in the Donetsk region, only
a portion of “best practice” is possible to apply. However, this work will fit into the broad
suite of work that needs to be performed in coming years and decades in the mining regions
of Ukraine – if indeed the unacceptable environmental, health and safety impacts caused by
operational and closed coal mines are to be dealt with effectively. As such, best practice
principles applied elsewhere in the world underpin the content of this report. This document
addresses a number of topics relevant to the challenges and opportunities outlined above – as
indicated in the statement of aim, the major task is to map the relevant issues for mine closure
with a particular focus on mine spoil dumps and then provide guidance upon where ongoing and
future work needs to focus.
In the opening part of this document, it is explained that while best environmental and social
practice in mine planning and closure and better management of closure related risks may not
be solutions for the broad set of difficulties of the coal sector in Ukraine, they are vital
components of such solutions. In this context, an introduction to the growth of public and
institutional expectations of mining organisations all around the world, and the role of
planning for mine closure in meeting such expectations is provided. The text then introduces
a number of important environmental and social problems in the Donetsk region. These
include a number problems associated with mine spoil heaps (the prime focus of this
document) then land subsidence, mine waters and coal bed methane. In closing Section 1, the
concepts of “integrated mine planning”, “best practice mine closure” and the utilisation of risk
management and prioritisation techniques focused on mine closure are introduced. These are
demanding concepts, and delineate approaches that are very different from how such tasks are
perceived and performed in Ukraine. As such, these concepts are to form an important
springboard for the rest of the report.
The second, and most substantive ‘risk-related’ part of the report, provides details of six
different categories of risk relevant to mining and mine closure. The items addressed include
environmental risks, health and safety risks, community and social risks, final land use risks,
legal and financial risks and technical risks. Due to factors such as the nature of the ENVSEC
initiative itself (where environment is a key parameter), and due to the high environmental
profile of spoil heaps in the Ukraine, the major focus is placed upon matters of environment.
For each of the six categories of risk, examples are provided of how risks can be classified.
Three generic categories are applied for this: broad closure risks, sub-issues and specific events
or options. For each sub-issue, examples are provided that apply to the coal mines in the
Donbas. This section provides a fundamental foundation for the identification of pressing
issues surrounding mine closure – and the manner in which they relate back to risk. The data,
observations and discussions collected/conducted during missions to the field by United
Nations Environment Programme (UNEP) GRID Arendal personnel, and the supporting
work of the partner organisations in Ukraine, have been utilised to populate the tables in this
part of the document with examples.
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Philip Peck, UNEP GRID Arendal
In the third section of the document, an important side-track is taken. This provides details of
international developments helping to drive the uptake of improved mining practices around
the world. Importantly, these topics link the issues of coal mining and mine closure in Ukraine
to the outside world of international finance (both for mining and for closure of mines) as
well as evolving EU regulatory frameworks for mining. The first topic taken up is financial
assurance for mine closure and reclamation, an important emerging requirement from governments
of leading mining countries. This is followed by discussions of the Seveso II Directive enacted by
the EU to help prevent and control major accidents involving dangerous substances and the
so-called “extractive industry waste directive” again put in place within the EU system. The focus
then shifts to project financing with discussion of the Equator Principles for socially responsible
project investment – the result of an initiative started by the International Finance
Corporation and the World Bank. Finally, this section introduces a second set of investment
principles developed by the ENVSEC partner, the Regional Environment Center for Central
and Eastern Europe that explicitly target jurisdictions such as Ukraine.
Following these external issues, the content returns firmly to mine spoil dumps, focusing in on
the environmental aspects and potential environmental impacts of mine dumps and
infrastructure, and activities co-located with dumps or relevant to their operation. Guidance
for ongoing field work is also provided in the form of an indicative listing of information
requirements and potential information collection modes for spoil dump risk assessment.
Examples are given for three forms of data collection: historical document/interview
methods, scanning field assessments, and detail field assessments. Having established the
broader content of such interactions with the environment and society, and how one might
collect data, the fifth section then introduces simple methods for the process of prioritising
risks. In the light of the large number of activities and the broad nature of some issues, such
methods are vital for focusing on those issues most critical for risk amelioration associated
with closure activities.
The final content orientated section of the report provides a suite of seven case studies that
are intended to place the terms best practice or “good practice” used in this document in a
clearer context. Despite the fact that the works outlined have taken place in a different set of
climates to that found in the Donbas, and with differing social and economic contexts, each
of them has a number of learning points that are valid for the coal mining areas of Ukraine.
The Australian Government generated these cases within the auspices of a programme
involving considerable collaboration with UNEP (principally during the 1990s). Two cases
address dump fire control, three address revegetation and management of micro-topography,
and two are focused upon the utilisation of computer aided analysis to guide cost and time
effective mine site and dump rehabilitation.
The final sections of the report turn from content and description of tools to findings of
investigative work. The final chapter delineates a number of key items for closure and
closure risk consideration.
The content here consists of general comments with some limited recommendations. They are
largely directed towards the Ukrainian mining stakeholders that could pursue and perform
such works in the future. In this light, the report generally avoids pointed recommendations
directed towards specific sites, specific pieces of legislation or specific actors.
Liability and ownership issues
A clear message delivered by this study is that a lack of adequate legislative structures for the
sale of mine lands, mine spoil dumps etc., is a significant barrier to progress in the
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Risk, Mine Closure and Spoil Dumps in Ukraine
rehabilitation of mine lands. It is also a barrier to the extraction of value from mine wastes.
This barrier relates to both the potential for extraction of value from the materials and the
potential value of the land itself for alternative uses once a dump is removed, or made safe.
Informants indicated that while the Ukraine does have a “law on environmental audit” that to
some extent addresses accountability for risks associated with changes in industrial land use,
the transfer or sale of mine lands is difficult. Pointedly, there is no legal framework for a
“trade in dumps”. From the viewpoints of land sellers, buyers and the public, delineation of
liability for risks is clearly important. Moreover, examples were given of dumps that apparently
have no specified legal owner, and of (generally old) dumps where land ownership has been
passed to local authorities that appear to have little capacity to manage associated risks or to
effectively valorize materials within the dumps. While this challenge has not been researched
in detail, it appears clear that improvement of legal frameworks for liability and site ownership
are vital to the process of reducing mine related risks in the region.
Extracting value from spoil dumps
Essentially all stakeholders in the Ukrainian mining sector indicate that extraction of value
from mine legacies (in this instance spoil heaps) is desirable. Four dominant approaches are
discussed:

recovery of coal for sale to power stations, or for value adding into coal briquettes for
private sale;

extraction of aggregates for the building industry, for road building, or for fill,

processing for the recovery of rare earth elements, germanium, aluminium rich
minerals, and iron ore;

dump removal or reshaping so that land is suitable for alternative uses and/or can be
sold.
Despite broad interest, limited progress appears to have been made. Indeed, only one formal
large scale coal recovery operation exists in the region. An abundance of simple, mobile
informal operations for coal recovery however, indicates that there is potential for more
dumps to be rehabilitated in this manner. Similarly, the recovery of aggregates – and in some
cases precious metals or minerals – does appear feasible.
Challenges to progress in the above areas are generally indicated to relate to lack of finance;
lack of examples to follow; inexperience with technologies and markets, and problems with
legislative structures such as ownership/liability listed above.
Site security and informal coal-related activities
Site security and informal mining activities carried out on mining leases are a problem in the
region when viewed from a risk perspective. Informal activities witnessed or mentioned
during the ENVSEC missions and aspects of risks associated with them include:
Unlicensed and informal mining activities – these small scale mines are apparently
run with a minimum, or primitive consideration of, health and safety standards. As
such, they pose a risk to the miners that engage in them. Moreover, worked out areas
are highly likely to constitute risks (gas leakage, subsidence, void hazard etc.) for future
(or present) land users or owners. It is also presumably very unclear how liability for
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Philip Peck, UNEP GRID Arendal
accidents or damage, or environmental problems associated with these operations,
would be managed. As formal records are not kept of operations, such difficulties can
be expected to compound as time passes.
Unlicensed and informal coal recovery operations – again, these operations are
apparently conducted with limited consideration of health and safety standards. In this
case however, inspection of operations during the ENVSEC mission of 2008, indicate
that these are unlikely to be particularly hazardous. Nuisance in the form of dust, noise
and heavy goods traffic is evident however. As with informal mining, liability concerns
also clearly exist, albeit of an apparently lesser degree.
While the comments above have highlighted weaknesses and threats, another important
consideration for these issues is the value that the activities yield. They provide employment
and economic benefit to those that engage in them. Indeed, anecdotal evidence indicates that
unlicensed mining operations pay considerably higher wages than are awarded by state
operations. Moreover, they contribute to National coal production thus reducing the net
production/import deficit. Dump reprocessing is also contributing to the removal of dumps
that take up land and have potential to burn – in itself a form of rehabilitation. In this light, it
is considered that examination of possibilities to bring such activities into the formal economy
is worthy of attention.
Revegetation and dump rehabilitation
The missions to the Donbas region have observed that the existing planning and goals for site
(environmental) rehabilitation and risk reduction are inadequate. Moreover, the methods
designs and methods utilised appear to differ markedly from those applied in leading mining
nations and also appear to yield markedly inferior results. In this regard it is considered that
new approaches have an important role to play in Ukraine if tangible progress is to be made.
It is deemed that initial topics to be addressed should include, but not be limited to: landform
management, dump reshaping, dump fire prevention techniques, fire management techniques,
management of acidic and saline wastes, topsoil management, soil amendment, water
management, revegetation techniques and final land use considerations.
Information on mining objects
Critical to achievement of improvement in all of the areas mentioned above, is access to upto-date knowledge describing mining objects. Such information is relevant to mine closure,
mine risk and mining operations. This study has indicated that effective application of
computerised geographical informations systems (GIS) will be invaluable in the management
of such information in the Ukrainian context. While very considerable data does exist, it is
widely spread and only very limited quantities are available in digital form. Moreover, this
study has revealed that there are many types of information that simply have not been
collected, or where even the capacity to collect them is limited.
The issue of collecting and centralising information will doubtless be a huge task, but this
research indicates that it must be started and given priority if progress is to be made effectively
on risk amelioration. Due to the large number of sites and objects that have significant
environmental aspects – a key task for data managers will be the prioritisation of risks. In this
light, the content of Chapters 4 and 5 in this report provide details of how such processes may
be started.
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Risk, Mine Closure and Spoil Dumps in Ukraine
Moreover, and very strongly linked to previous items mentioned in this summary, is the issue
of ownership and liability. Accurate and up-to-date information for such parameters is vital
for the support of all mine closure and risk reduction work, and as such it must be a key
component of any data management system.
Closing remarks and general recommendations
The report closes with a number of general recommendations for future works.
1.
Adaptation and application of relevant concepts of mining best practice
and best practice mine closure-planning processes to the Ukrainian context
In this area, it is considered that the work has clearly established a large gap between
practices applied in Ukraine and those applied in countries deemed to have “best
practice”. However, it is doubtful that practice can simply be transposed. Many of the
technical conditions and most of the socio-economic conditions in Ukraine do not
have direct parallels elsewhere. As such, this study concludes that there is a clear need
to conduct work to both adapt and apply best practices for the Ukraine.
Further, it seems logical that external parties with extensive experience of such
practices abroad should participate with Ukrainian actors in the pursuit of better
practice for mining and mine closure.
2.
Examination of the completeness and reflection of “best practice” in
Ukrainian closure legislation AND the effectiveness of how the existing
legislation has been implemented
This work has found strong indications that Ukrainian practice and legal frameworks
do not support good practice. It appears that work is required to analyse national
regulations in the light of sound practices elsewhere and delineate those items that are
addressed and those that are not. Legislation surrounding transfer of site ownership
and liability is one critical area for initial examination.
Moreover, the work conducted within this project has indicated that implementation
of existing rules and regulations are not taking place as prescribed. Examination of
enforcement in areas where health, safety or environmental risks are high, also appears
worthy of immediate attention.
3.
Generating proposals for improvement of the some policy measures
A number of areas where proposals for policy improvement appear relevant have been
identified within this study (e.g. clear delineation of ownership of sites, clarification of
transfer and/or sharing of liability, examination of financial assurance/bonding
schemes for new mining operations, examination of liability for hazardous “historical
sites”, etc.). However, it is considered premature to pursue such work at this juncture.
Work on the two items listed above will need to precede such action – or at least be
advanced to some degree before sufficient delineation of policy weaknesses is
achieved.
In closing this summary text, it is reiterated that many important risk concerns were found in
this work. However, it was also found that the structured approaches to risk documentation
and analysis can help prioritize work on reduction of such risks.
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Philip Peck, UNEP GRID Arendal
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Risk, Mine Closure and Spoil Dumps in Ukraine
Acknowledgments
The development of this document has been an undertaking of The Environment & Security
(ENVSEC) initiative.2 As such, the document was prepared under the direction of the
initiative partners. These include the United Nations Environment Programme (UNEP), the
United Nations Development Programme (UNDP), the Organization for Security and Cooperation in Europe (OSCE), the United Nations Economic Commission for Europe
(UNECE), the Regional Environment Centre for Central and Eastern Europe (REC) with the
North Atlantic Treaty Organization (NATO) as an associate partner.
This report was prepared on behalf of these organisations by Philip Peck (Extractive
Industries Specialist) with the close support of Elena Santer-Veligosh (Capacity Building
Programme Officer) of UNEP/Grid-Arendal.
Any errors and/or omissions of this document remain the fault of the author.
2
ENVSEC was established in 2003 by the United Nations Environment Programme (UNEP), the United Nations
Development Programme (UNDP), and the Organization for Security and Co-operation in Europe (OSCE). The North
Atlantic Treaty Organisation (NATO) became an associate member of the Initiative in 2004, through its Public Diplomacy
Division. From 2006 onwards the Initiative is strengthened with two new members: the United Nations Economic
Commission for Europe (UNECE); and the Regional Environment Center for Central and Eastern Europe (REC).
xi
Table of Contents
List of Figures
List of Tables
1
INTRODUCTION ............................................................................................................................ 5
1.1
1.2
HIGHER EXPECTATIONS FOR MINE CLOSURE AND REMEDIATION .................................................................. 7
SOME KEY ENVIRONMENTAL AND SOCIAL PROBLEMS IN THE DONBAS ......................................................... 8
1.2.1 Spoil heaps ............................................................................................................................................................ 8
1.2.2 Land subsidence ................................................................................................................................................... 10
1.2.3 Pumped mine waters ............................................................................................................................................ 10
1.2.4 Coal bed methane................................................................................................................................................. 11
1.3 UNDERSTANDING MINE CLOSURE RISKS TO FACILITATE CLOSURE ............................................................... 11
1.3.1 The terms “mine closure” and “integrated mine planning” .................................................................................... 11
1.3.2 Risk management to reduce impacts and aid prioritisation .................................................................................... 12
2
CLASSIFICATION OF RISKS......................................................................................................... 14
2.1
2.2
2.3
2.4
2.5
2.6
3
EMERGING TRENDS FOR BEST ENVIRONMENTAL PRACTICE MINING ....................... 29
3.1
3.2
3.3
3.4
3.5
3.6
4
4.2
ENVIRONMENTAL ASPECTS ASSOCIATED WITH COAL MINE SPOIL DUMPS AND ADJACENT MINE
ACTIVITIES/FACILITIES ............................................................................................................................................ 45
INFORMATION REQUIREMENTS FOR CREATING RISK PROFILES FOR SPOIL DUMPS ..................................... 46
PRIORITISING RISKS .................................................................................................................... 49
5.1
5.2
6
FINANCIAL ASSURANCE FOR MINE CLOSURE & RECLAMATION .................................................................... 29
SEVESO II ................................................................................................................................................................... 36
THE EU MINE WASTE DIRECTIVE.......................................................................................................................... 37
THE EQUATOR PRINCIPLES .................................................................................................................................... 40
GOVERNANCE PRINCIPLES FOR FOREIGN DIRECT INVESTMENT IN HAZARDOUS ACTIVITIES .............. 41
REAL OR PERCEIVED FINANCIAL BARRIERS......................................................................................................... 42
MINE SPOIL DUMPS: A KEY CLOSURE ISSUE IN THE DONBAS ......................................... 45
4.1
5
ENVIRONMENTAL RISKS ......................................................................................................................................... 14
HEALTH AND SAFETY RISKS .................................................................................................................................. 18
COMMUNITY AND SOCIAL RISKS ........................................................................................................................... 19
FINAL LAND USE RISKS ............................................................................................................................................ 21
LEGAL AND FINANCIAL RISKS ................................................................................................................................ 23
TECHNICAL RISKS..................................................................................................................................................... 27
WORKPLACE RISK AND CONTROL ......................................................................................................................... 49
A CLOSURE RISK EXAMPLE – URANIUM MINE .................................................................................................... 50
GOOD PRACTICE CASE STUDIES .............................................................................................. 53
6.1
CASE STUDY 1: RECOGNITION, PREVENTION AND MANAGEMENT OF SELF HEATING IN COAL
MINE SPOIL ................................................................................................................................................................. 54
6.1.1 Best Methods for Control ..................................................................................................................................... 55
6.1.2 Guiding management and fire control principles .................................................................................................... 55
6.2 CASE STUDY 2: TOP SOIL GRAFTING AVERTS SELF HEATING ....................................................................... 56
6.3 CASE STUDY 3: PROGRESSIVE REVEGETATION AND WATER BODY PROTECTION ....................................... 59
6.4 CASE STUDY 4: BASIN LISTING—AN ALTERNATIVE TO CONTOUR RIPPING ............................................. 60
6.5 CASE STUDY 5: INNOVATIVE REVEGETATION METHODS ................................................................................ 61
6.6 CASE STUDY 6: MINE SCHEDULING AND COMPUTER AIDED TECHNIQUES FOR MINE
REHABILITATION ...................................................................................................................................................... 65
6.7 CASE STUDY 7: COMPUTER ASSISTED DESIGN FOR MINE REHABILITATION ............................................... 66
7
CONCLUDING DISCUSSION AND RECOMMENDATIONS ................................................... 70
I
7.1
RECAPITULATION ..................................................................................................................................................... 70
7.1.1 Spoil heaps and coal mine closure in the Donbas ............................................ Error! Bookmark not defined.
7.1.2 A structured classification of closure risks ............................................................................................................. 71
7.1.3 Good practice case studies ..................................................................................................................................... 71
7.2 KEY ITEMS FOR CLOSURE AND CLOSURE RISK CONSIDERATION .................................................................... 72
7.2.1 Liability and ownership issues .............................................................................................................................. 72
7.2.2 Extracting value from spoil dumps ....................................................................................................................... 73
7.2.3 Site security and informal coal-related activities..................................................................................................... 73
7.2.4 Revegetation and dump rehabilitation ................................................................................................................... 74
7.2.5 Information on mining objects ............................................................................................................................... 75
7.3 CLOSING REMARKS AND GENERAL RECOMMENDATIONS ................................................................................ 75
GLOSSARY OF MINING TERMS .......................................................................................................... 77
APPENDIX A – ACID BASE ACCOUNTING REFERENCES............................................................. 83
APPENDIX B: DRAFT FIELD PROCEDURES FIELD SCANNING SURVEY OF DONBAS
COALMINE SPOIL DUMPS .......................................................................................................... 84
APPENDIX C: DRAFT REPORT FROM UKRAINIAN PARTNER ORGANISATION:
UGLEMASH .................................................................................................................................... 86
APPENDIX D: MINE DUMP INVENTORY ( DONUGLERESTRUKTURIZATSIA) ....................... 98
APPENDIX E – GOVERNANCE PRINCIPLES FOR FOREIGN DIRECT INVESTMENT IN
HAZARDOUS ACTIVITIES ......................................................................................................... 119
BIBLIOGRAPHY ................................................................................................................................... 126
II
List of Figures
Figure 4-1 Concept diagram: planned encapsulation of acid generating mine wastes in
spoil dumps/tailings dumps ....................................................................................................... 46
Figure 5-1
Calculation of risk using the risk matrix (after Thompson, 1999) ......................... 49
Figure 5-2
Mine Closure Risk Assessment Matrix (Laurence 2006) ........................................ 50
Figure 5-3 Example of an application of the Closure Risk Model in an Australian
mine (Laurence 2006) .................................................................................................................. 52
Figure 6-1
Final rehabilitation cover coalmine spoil dump ....................................................... 54
Figure 6-2
Reshaping dumps – coalmine spoil ............................................................................ 56
Figure 6-3
Spoil heaps prior to rehabilitation .............................................................................. 57
Figure 6-4
Dragline adjusting dump slopes and cover with topsoil ......................................... 58
Figure 6-5
Vegetation establishment on spoil dump .................................................................. 58
Figure 6-6
Mine pits reshaped to capture site run-off ................................................................ 60
Figure 6-7
View over rehabilitated mine land.............................................................................. 61
Figure 6-8
Site prior to rehabilitation ............................................................................................ 63
Figure 6-9
Site 3-4 years after rehabilitation works commenced .............................................. 63
Figure 6-10 Vegetation growth on former pit ............................................................................... 64
Figure 6-11 General layout of operation at Nabarlek ................................................................... 64
Figure 6-12 Nabarlek: as designed (after Riley 1994) ................................................................... 64
Figure 6-13 Nabarlek: as constructed showing final landform (after Riley 1994) .................... 64
Figure 6-14 CAD mine design operator ......................................................................................... 65
Figure 6-15 An example of computer aided design used to give a three dimensional
model of a proposed mine site................................................................................................... 68
List of Tables
Table 2-1
Classification of environmental risks – part A (after Laurence 2006) .................. 15
Table 2-2
Classification of environmental risks – part B (after Laurence 2006) ................... 16
Table 2-3
Classification of environmental risks – part C (after Laurence 2006)................... 17
Table 2-4
Classification of health and safety risks ..................................................................... 18
Table 2-5
Classification of community and social risks ............................................................ 20
Table 2-6
Classification of final land use risks ........................................................................... 22
Table 2-7
Classification of legal and financial risks (part A) .................................................... 24
Table 2-8
Classification of legal and financial risks (part B) .................................................... 26
Table 2-9
Classification of technical risks ................................................................................... 27
Table 3-1
Differing types of Financial Assurance ..................................................................... 31
Table 3-2
Advantages and disadvantages of Financial Assurance through bonding ............ 32
III
Table 3-3
Guidelines for framework policies. ............................................................................ 34
Table 4-1
Indicative listing of environmental issues: coal spoil dumps in the Donbas ....... 45
Table 4-2
Indicative listing of information requirements and potential collection
modes for spoil dump risk assessment ..................................................................................... 47
IV
1 Introduction
The coal industry of Ukraine is a vital component of the national economy and industrial
infrastructure. Among other things, it underpins the metallurgical industry of the country with
coking coals, the thermal power generation sector with steaming coals as well as supplying
both energy carrier and feedstock to the chemicals sector. Ukrainian coal reserves are
enormous, with some 25-30 billion metric tonnes, roughly half of which is anthracite and
bituminous coals and half lignite and sub-bituminous coals (IEA 2003; EIA 2007). Covering
some 12 500 km2, the nation’s coal seams typically occur at depths of 200-700 m (Ivanova
2004).
Despite this importance, the cost to the country in environmental and social terms has also
been large. As a prime example, the Western Donetsk Basin (also known as ‘the Donbas’) is
one of the most environmentally damaged regions of the Ukraine. Coal mining activities have
been one of the key contributors to this degradation.
During the 20th century, some 600 coal mines with over one thousand shafts were developed
in the coal regions of Ukraine. These have exploited some 600 km2 of coal seams during the
active period of mining. In the past 15 years or so (pursuant to economic restructuring) many
mines have ceased activities or are slated for closure. For most of these sites, a situation has
arisen that mirrors developments all around the mining world – while closure may be planned,
most commonly it is premature and occurs before coal (or ore) reserves are exhausted. While
the reasons why mines close are diverse and include economic, geological, geotechnical,
regulatory, community and other pressures (Laurence 2006) – the closure of so many mines in
a short period in the Donbas is predominantly linked to one major change. This being the
marked collapse of the broad centrally-planned economy. As such, the Ukraine has been faced
with an unprecedented occurrence of premature mine closures that (as with any mine closure)
have the potential to cause significant adverse impacts on the environment and community.
Ukraine is struggling to manage the process of mine closure in an appropriate manner.
As Ukraine is faced with both the legacies of at least a century of intensive coal mining and
unprecedented occurrence of premature mine closures and energy security of supply concerns,
action is required to ensure that future coal mining contributes more to the nation. Closure
related planning is part of such action. Moreover, principles guiding closure must be
embodied in some way by mining policy frameworks. Evolution of mine policy frameworks –
including the frameworks guiding mine closure planning and risk management – is vital for
maximising economic benefit, minimising environmental and social costs, attracting reputable
international project finance, and maintaining a “social licence to operate” for the sector.
While there are numerous environmental and social effects related to the mining of coal in
Ukraine, this document addresses one category that is of key interest in the context of mines
slated for closure or where mining activities have ceased. This encompasses the ongoing
environmental effects of the many mine spoil dumps that litter the Ukrainian landscape.
Because of their makeup, positioning and condition, these dumps affect society and all the
natural media (air, water, subsurface) negatively.
This stated, many of these also have economic value that may be leveraged. Particularly in
cases where dumps have economic value, opportunities exist to both remove the risks they
entail and regain the land they occupy for alternative uses. In a proportion of cases, it will be
feasible to generate profit from such dumps – either from the value of coal, aggregates, or
other minerals they obtain, or from the land itself. The task of risk reduction and rehabilitation
5
at all dumps however is undeniably complex. In addition to the evolution of mining policy
spoken of above it will require innovation and commitment from all stakeholders. All of this
must also be managed in a difficult economic and institutional environment where the
Ukrainian coal sector remains in crisis.
Industry production has fallen to less than half of historical highs and the country is now a net
coal importer. Moreover, the restructuring process has essentially been one-way. Rather than a
combination of unprofitable enterprise closure, revitalisation of mines with profit potential,
and opening of new modern mines operating in a transparent and largely market economy –
mine shutdown has dominated and progress has been slow with revitalisation and market
formation. The dominant proportion of mines remains old with low productivity. Many are
dangerous and unprofitable. Moreover, national plans to open new mines have gone slowly or
have failed.
Contributing to the complexity of mine closure and the flow on effects of closure are
difficulties in general economic and market structures, and the largely unsuccessful nature of
the privatization process. Privatization of the coal industry in Ukraine has faced a variety of
challenges. These have included financial instability, common bankruptcy proceedings, and a
chronic shortage (or reallocation) of funds for addressing the social and environmental
problems associated with mine closures. Operating profitably is a challenge for technical
reasons as well as for market reasons. There are very difficult geological conditions at many of
the underground coalmines. Challenges include thin, steeply sloping coal seams, very deep
mines, and high concentrations of methane gas. As a result, Ukraine’s coal mines rank among
the least productive operations in the world. In 2002, average coal mining productivity in
Ukraine was approximately 320 tons per miner per year – a figure less than half that of Poland
and a tenth that of the UK. Despite hundreds of millions of $ in government subsidies, many
mines are still not profitable. It is clear that technical excellence and institutional dedication is
truly required to lift productivity to profitable levels under such conditions.
In recognition of such issues, this ENVSEC project has commissioned this document. It is to
be a living document that is revised and updated in parallel with data gathering on the ground
in the Donbas. This version of the document has been produced after two field missions to
the Donbas and extensive desktop research. The first data-gathering mission was in the
Autumn of 2007 when a wide range of technical expert groups dealing with mining and
mining/environment issues were consulted. The second was conducted in the Summer of
2008; here, a smaller group of informants were consulted and a site visits were conducted to
some 15 mine sites.
As such, this work has the following aim and objectives.
Aim: to provide a mapping of the relevant issues for mine closure in the region with a
particular focus on mine spoil dumps.
Moreover, it should also provide a basis for ongoing work by National partners that involves:
a) adaptation and application of relevant concepts of mining best practice to the
Ukrainian context;
b) adaptation and application of best practice mine closure planning processes to the
Ukrainian context;
c) examination of the completeness and reflection of “best practice” in Ukrainian
closure legislation;
6
d) examining the effectiveness of how the existing legislation has been implemented;
e) generating proposals for improvement of some policy measures (e.g. to the Ministry
of coal and eventually to the Ukrainian parliament).
While the prime focus in this work is spoil dumps and pathways that can be taken to
ameliorate their negative environmental effects, that is not to imply that other issues are not of
great importance. To the contrary, it is simply that in line with the desires of the participating
Ukrainian Ministries, the focus of this work is upon spoil heaps and their effects. Other key
areas of environmental damage are addressed to a much lesser extent here. Such categories
include land subsidence, coal bed methane, and the impacts of pumped mine waters.
1.1 Higher expectations for mine closure and remediation
Increasing expectations for environmental protection, desires for reduced human health risks,
competition for land, and the increasing value of the natural environment as recreational space
are a significant driver for improvement of performance in the mining sector. Such pressures
have led to marked improvements in regulatory requirements and mining practice in a number
of countries. Indeed, in response to social and regulatory pressures, many mining companies
and authorities around the world have introduced management policies, practices and
technologies that markedly reduce the environmental harm caused by mining (Environment
Australia 2002; Gammon 2002; Miller 2005) . Awareness of the environmental implications of
its mining sector, and of opportunities for post-mining environmental and social restitution
are also on the increase in the Ukraine.
When viewed in combination with growing desires to preserve land areas as a repository for
valuable biological assets, for natural environmental services, and for aesthetic appeal, these
developments appear likely continue to drive continued improvement in mining practice in
Ukraine as is taking place abroad.
As a part of this positive trend, mine planning, mine closure practices and the conduct of
mine operations to facilitate environmentally and socially acceptable closure have also evolved
significantly in recent years. While in the past, communities often saw that the only choice
available was whether a deposit should be mined or not, it has been clearly shown that the
manner in which a mine is planned and operated can have major positive influences on the
magnitude and duration of impacts over the life of the development. Importantly, the same
holds for the period following its closure (Environmental Protection Agency 1995;
Environmental Protection Agency 1995). Where planning for the closure phase has been
largely absent, as in Ukraine, the problems inherited by the authorities (or by following
generations) can be enormous. This however, does not remove the need for works to reduce
the risks associated with environmental legacies.
In the context of this document, it is important to note that the mining sector is a very
important contributor to local and national economies (as in the Donbas). Furthermore, it
must be recognised that in the past, authorities did generally not require the “closing” of
mines in the manner described throughout this report. Pursuant to this, “blame” is not
intended to be directed towards those actors that have inherited such problems. Further, the
extractive industries will continue to underpin the economies of many countries – including
Ukraine – into the future. As such, ongoing and new developments to mine resources such as
the coal seams of the Donbas will be vital for the pursuit of sustainable development. Here
however, the accountability for avoiding the poor practice of the past does rest with the
incumbent authorities.
7
In recognition of this importance, this document intends to help facilitate the works already
commenced by mining authorities in Ukraine as they seek to develop better mining policy, and
increase national capacity and institutional development in order to achieve a (more)
sustainable mix of social, economic, and environmental outcomes from mining.
While the key focus of this document is upon the coal mining areas of the Donetsk Oblast,
much of the material and ideas presented here are generic.
1.2 Some key environmental and social problems in the Donbas
As indicated above, there are many environmental, health and social problems in the Donbas
that are contributed to by the closure (and/or operation) of coal mines. The following
sections introduce some selected items in order to provide context to this document.
1.2.1 Spoil heaps
At the current time, the Ministry of the Coal industry of Ukraine is in the process of closing
some 121 mining enterprises and liquidating their assets. They report that 341 spoil dumps are
located within this suite of mines. At least 105 of these dumps are burning. The ministry holds
that all dumps require some degree of activity to extinguish, reshape, and/or revegetate
(Yermakov 2008). Protection of the environment from contaminated leachates will also
require that a number of the dumps be capped with low permeability seals in order to prevent
the influx of air and water. Appendix D provides an inventory of those dumps under the
jurisdiction of the Ukaines mine restructureing programme (Donuglerestrukturizatsia) as of
the start of 2008. While not comprehensive, this material provides an overview of the status of
some 400 objects at more than 50 sites.
Key environmental and social challenges associated with dumps include:

Dust generation from unsealed or non-revegetated dump surfaces;

Emission of toxic fumes from burning dumps;

Effluents and leachates to surface waters and land including sediment, salts, acids and
heavy metal contamination;

Leachates to groundwaters including salts, acids and heavy metal contamination;

Physical hazard related to dump morphology or stability;

Land-take and negative visual impact.
Burning heaps - after the ejection of waste rock and rejected coal from the mine, large
volumes of coal and carbonaceous material are exposed to oxygen in air. Once exposed, (and
if left exposed) the materials oxidise and liberate heat. If the heat is not dissipated rapidly
enough, the temperature rises. This drives oxidation and the heat generation process at a faster
rate and if not controlled, spontaneous combustion can result. This situation has arisen many
times in the Donbas.
The consequences of spontaneous combustion in spoil heaps may be significant – and in the
populated areas of the Donbas the consequences are indeed reported to be serious. For
example, open fires and smouldering combustion can give rise to toxic fumes (and/or
emissions of concern) such as carbon monoxide (CO), carbon dioxide (CO2), nitrogen dioxide
(NO2) and sulphur dioxide (SO2), as well as the ‘tarry’ emission products (including poly8
aromatic hydrocarbons [PAHs]) associated with incomplete coal combustion. The Scientific
and Research Institute of Mining Engineering and Fire Safety (NIIGD) (UNEP Mission
Report 2007) indicates that coal dumps release some 500kt/yr of these emissions in the
Ukraine and some 120kt/yr in the Donetsk Oblast.
Further consequences arise from the danger of fire spreading to surrounding land, the
destabilisation of the landform with possible subsidence, landslides and the death of
vegetation in the vicinity of “hot” spoil. It should also be noted that burning dumps constitute
a potentially deadly hazard for animals or humans venturing onto their surfaces.
Burning dumps indicated by the Ministry of Coal include:3

Donetsk region – 52 closed/closing mines where 69 of 177 waste dumps are burning;

Lugansk region – 36 closed/closing mines where 34 of 244 waste dumps are burning;

L’vovsko- volynskiy region – 8 mines closed/closing mines where 2 of 7 dumps are
burning.
Generation of acid and heavy metal contaminated leachates - on the spoil dumps in the
Donbas (as in almost all mine dumps where rock with acid generating potential is present) the
oxidation of pyrite upon the extraction of sulfidic rock from coal mines and its dumping on
the surface is accompanied by a sharp drop in the pH of the surface layer. This in turn
facilitates the transformation of a number of metals present in waste rock (e.g. Fe, Al, Mn, Zn)
into mobile forms; and the synthesis of typical mineral products of sulphuric weathering, such
as gypsum, jarosite, schwertmannite, iron oxides, etc. (Kostenko and Opanasenko 2007).
On the surface of Dumps in the Donbas, this substrate is progressively leached of excessive
toxic components and is gradually becoming overgrown with vegetation (Kostenko and
Opanasenko 2007). Anecdotal evidence collected during UNEP missions to coal dumps
indicates that some 30 to 50 years is required for surface soils to be sufficiently leached that
they support the vegetation growth. Providing confirmation of this is that several unremediated dumps that were more than 50 to 75 years old inspected during UNEP missions
appeared to have vegetation or forest cover on 50% or more of their surfaces. Steeply sloping
faces (at the natural angle of repose of dump materials) and south-facing slopes often remain
bare.
Dust, erosion and visual impact – A lack of vegetation on dumps maintains a high
propensity for erosion by wind and water. Wind erosion generates dust that in turn constitutes
either a nuisance or a chronic hazard to the surrounding communities. The severity of impacts
is dependent upon the nature of the dust and the existence of receptors. Erosion by water also
generates sediment. Again, the degree of harm it can cause depends upon the make up of the
dumps that it arises from and where it flows to. Also important from a stakeholder
perspective, is that revegetated dumps are significantly less visually disturbing than bare spoil
heaps. As such, achievement of dump revegetation of dumps is perceived as an important
activity within any closure plan. As indicated above, many decades is required for this to occur
if no action is taken.
3
Note: these details may not correspond exactly with the content of the inventory included in Appendix D.
9
The Steppe zone of Ukraine where the Donbas is situated lies in a continental-temperate
climate area where moisture is the one of the main limiting factors and where grasses
dominate natural vegetation (Loza and Nazarenko 2006). As such, the dry hot summers of the
region represent a significant challenge for revegetation activities.
1.2.2 Land subsidence
Following mining in the Donbas, subsidence equivalent to about 90% of the depth of the
extracted layer is common. In the region there are two primarily damage pathways. Firstly
there is physical infrastructure damage (to buildings, roads, etc.). Secondly there is flooding –
if groundwater levels are permitted to rise to original levels after mine closure then up to 35%
of the surface area of many villages and towns may be submerged (Yermakov 2008).
According to Yermakov (2008) three Donetsk regions are under study due to the seriousness
of land subsidence impacts. These include:

circa 160 km2 in the Stahanov region where deformation of 72 buildings has occurred;

some 60 km2 in the Proletarsko-Bydenovskyi (Donetsk) area where 31 buildings are
affected;

the central area of Donbas where deformation of 120 buildings has occurred.
1.2.3 Pumped mine waters
Each year the mines in the Donbas pump some 700 million m3 mine water in order to
facilitate coal extraction. Technical experts indicate that 60-80% of mines are hydraulically
linked indicating that a closed mine that is close to a mine that is operational must still be
dewatered (Organisation dealing with the development of mine closure projects - State
Enterprise “Ukruglerestrukturizatsia” , 2007 UNEP mission). Due to the geochemistry of the
waters – and particularly due to high salt concentrations associated with saline coal deposits in
the region, or heavy metal contamination, this represents a particularly serious environmental
aspect of mining (Yermakov 2008). Not all mine waters are saline however, and a significant
number of mines pump water suitable for both irrigation and for human consumption. In
such instances, the direct release of such waters to the environment is also perceived as a loss
of an economic resource.
Saline coalfields are known in many countries of the world, such as Austria, Great Britain,
Germany, Poland, Czechia, Russia, the United States, Australia, and others. In the Ukraine,
and the Donbas in particular, such coals are common (Ivanova 2004). The demonstrated
reserves in the Ukraine amount to more than 25 Gt and are mainly concentrated within the
western part and, to a lesser degree, northern part of the Donets Basin. Key areas with saline
coal include the lignites of the Petrikovka coalfield and high-volatile B bituminous (hvBb)
coals of the Novomoskovsk coalfield, Starobel’sk coal-bearing area, and Millerovo coalbearing district. Coals of the Novomoskovsk field in the western Donbas contain nearly 1%
Na2O on a whole coal basis at 10% ash content. Coals of northern Donbas are less saline and
locally distributed. Most of the coals mined in the Donbas occur in the geological horizons
from 170–200m to 600–640 m) below the surface (Ivanova 2004).
Mining involves the extraction of groundwaters that would otherwise flood the mines. Mine
waters are loaded with heavy metal ions and salts, especially Na+ and sulphides. Ivanova
(2004) indicates that extracted waters are pumped into storage ponds, where the pumped
10
water should settle and be remediated. That author indicates that these processes are not up to
standard and much mine water seeps away to mix with, and contaminate groundwaters and
raise the levels of shallow aquifers. Anecdotal evidence collected by the authors of this report
indicates that mine water also discharges directly to surface waterways.
1.2.4 Coal bed methane
Significant concentrations of methane are associated with many of the coal seams mined in
the Donbas and the management of this flammable and explosive gas constitutes on the prime
safety issues for mining activities. After closure, the potential for methane to leak from coal
seams to the surface remains a major issue. Gas migration can occur via voids such as shafts
and also via fissures and cracks that reach from the seams up to the surface.
In the context of closure, CH4 leakage is an issue that must be monitored. In some instances,
the residual gas in closed mines may also constitute an economic resource for recovery.
1.3 Understanding mine closure risks to facilitate closure
In the context of both the Donbas environmental challenges outlined in the previous subsection and the Ministry of the Coal industry process of achieving closure for some 121
mining enterprises, the following section (Section 2) will outline a thorough categorisation
process that can support more acceptable forms of closure. Section 2 addresses a broad set of
risk assessment categories that are primarily intended to be used at the planning and
operational phases of a mine life cycle. Yet here, this document is largely examining a situation
where the challenges are inherited and as such cannot be circumvented. It is held however,
that consideration of all such categories, even at this stage, has great value. Prior to that
discussion of closure two last sub-sections are included in this introduction. First, clarification
is provided for two vital concepts applied in leading mining countries. Although the “words”
appear in the Ukrainian mining industry, it is held here that the practices embodied by them
do not. Second, the manner in which this discussion seeks to address risk management
(associated with closure) is introduced.
1.3.1 The terms “mine closure” and “integrated mine planning”
Within this document, the general ethos of so called ‘sustainable mining’ is captured by
integrated mine planning where a mine closure plan should be an integral part of a project life
cycle. Such closure plans should be designed to ensure that:
•
future public health and safety are not compromised ;
•
environmental and resources are not subject to physical and chemical deterioration;
•
the after-use of the site is beneficial and sustainable in the long term;
•
any adverse socio-economic impacts are minimized; and
•
all socio-economic benefits are maximized.
As has been mentioned, mine closure was not considered as an integral part of the project life
cycle for the mines in the Donbas addressed by this text and as a result significant legacies
remain. Proper mine closure is still desirable, however. Here we shall clarify what we mean by
this term.
11
According to Sassoon (2000), integrated mine planning requires proper mine closure and:
.... a mine closure plan should be an integral part of a project life cycle and be designed to ensure that:
•
Future public health and safety are not compromised;
•
Environmental resources are not subject to physical and chemical deterioration;
•
The after-use of the site is beneficial and sustainable in the long term;
•
Any adverse socio-economic impacts are minimised; and
•
All socio-economic benefits are maximised.
In a more environmentally focused manner, Australia key minerals industry representative
groups hold that:
Mine rehabilitation is an ongoing programme designed to restore the physical, chemical and biological quality or
potential of air, land and water regimes disturbed by mining to a state acceptable to the regulators and to postmining land users. The objective of mine closure is to prevent or minimise adverse long-term environmental
impacts, and to create a self-sustaining natural ecosystem or alternate land use based on an agreed set of
objectives (ANZMEC MCA, 2000, p. v)
For the purpose of this discussion it is held that the process of operating and closing mines
must integrate community expectations and concerns, governmental requirements,
and profitability of the mining project, while also minimising environmental impacts.
Moreover, it is held that operation and closure must be achieved so that future public
health and safety are not compromised; environmental resources are not subject to
(abnormal) physical and chemical deterioration in the long term; and that the after-use
of the site is beneficial and sustainable in the long term.
This stated, it is clearly recognised that one immediate difficulty for the Donbas is that most
mines have been operational for long periods or have ceased operation. As van Zyl et al
(2002a) underline, while mines in planning stage have maximum freedom to address
sustainable development goals during closure, and while those that are in the middle of their
operating life have significant opportunities to do so, operating mines that are close to the end
of their economic life have limited options available. Mines that have ceased operations have
the least degrees of freedom. Unfortunately, this is often the case that is to be dealt with in the
Donbas. Moreover, it can be added that due to a long history of mining in the area and the
substantial time since the cessation of mining activities, the ownership of many sites is unclear
or problematical. For instance, some sites of significant hazard have been handed over to local
municipalities or are technically ownerless. Dealing with risk reduction at such sites is even
more of a challenge.
1.3.2 Risk management to reduce impacts and aid prioritisation
In order to aid the process of risk assessment for the mines subject to closure in the Donbas,
some parts of established mine risk management techniques shall be modified to the local
context.
Laurence (2006) has performed extensive work to document risk management techniques to
help reduce the impacts of mine closure. Parts of a tool and closure risk model developed by
12
that author are applied here. Tools such as this can be applied to assess the major closure risks
at individual mine sites in a structured, systematic manner. Full application of risk assessment
tools can also facilitate comparisons between the closure issues at a single site as well as
between different mines.4 Comprehensive ex ante assessment of mining risks is NOT sought in
this work – nor is it feasible at this stage of this work or for mines already at closure status.
Rather, the next section will simply outline a number of risk categories that commonly require
consideration within a mining context and provide some guidance upon their relevance to the
mine closure challenges in the Donbas. It is intended that field work performed as part of this
ENVSEC project will commence the process of examining such categories.
When performing such assessments, Laurence (2006) (and like-minded risk assessors) also
provide guidance regarding the makeup of the teams performing assessments, and
recommendations for how the procedures should be undertaken. Laurence for example
indicates that:

a team-based approach is essential to ensure that all of the risks are incorporated;

the use of an external facilitator should be used in order to reduce subjective bias;

community engagement (e.g. employees, landholders, local and state governments, and
other stakeholders), both during operation and the inevitable mine closure phases is
important – with the consequences of a poor consultation strategy being potentially
severe in terms of community impacts. Other benefits include significant cost savings
and a competitive advantage for future exploration/mining activities.
Following the approach of Laurence and his model, the components of mine closure risk
introduced here are broadly divided into environmental risks, safety and health risks,
community and social risks, final land use risks, legal and financial risks and technical risks.
4
Laurence for example, seeks to generate a single qualitative and quantitative measure (the Closure Risk Factor or CRF) that
captures the various significant risk components of mine closure.
13
2 Classification of risks
In the following six sections, different categories of risks relevant to mining are presented. As
the original utilisation of such risk assessments is usually to assess possible risks that could
arise in the future when a mine closes (either according to mine plan or prematurely) then the
utilisation within this document is different. In the Donbas, the premature (or unexpected)
cessation of mining activities has already occurred. As such, many opportunities for preemption of problems are lost. However, the very process of systematically placing the risks
associated with the closure of mines has, in itself, significant value as a guide for required
actions and as a tool for communication to other stakeholders.
Moreover, and has been noted in the introductory chapter, prime focus for this mine closure
work is upon spoil dumps and environmentally related issues. As such, more weight has been
placed on categories associated with dumps.
Environmental risks, health and safety risks, community and social risks, final land use risks,
legal and financial risks and technical risks are addressed in the following sections. The most
relevant risk category for the ENVSEC study being undertaken is that of Environmental Risk.
2.1 Environmental Risks
Table 2-1, Table 2-2, and Table 2-3 overleaf indicate broad categories of environmental risk
grouped into sub-issues, specific events for mining and specific examples identified for coal
mines in the Donbas. As indicated in the introductory chapter, the mine spoil dumps are a key
focus for this study – the many potential pathways for negative environmental effects are
highlighted within the table.
14
Table 2-1
Classification of environmental risks – part A (after Laurence 2006)
Broad
closure
risk
Sub-issue
Specific
(options)
Water
Surface waters
Sedimentation
Effluent
Drainage
Acid Mine
Drainage
(AMD)/heavy
metals
Salinity
Contamination
(ARD, NMD
and processing
chemicals)
Drawdown
Ground
waters
Air
event
Downstream
usage
Agriculture
Drinking
Aquatic ecosystem
Gas
Greenhouse gas
emissions
Other emissions
(e.g. SO2)
Dust
Tailings
Stockpiles
Rehabilitated areas
Specific examples and issues for Donbas Coal mines
Sediment to surface waters from dump erosion and from disturbed land.
Runoff from dumps contaminated with heavy metals, sediment, acidity from
oxidation of pyrite in sulphidic rock and heavy metals, sulphates etc.
Potential for hydrocarbon contamination (including PAHs) contamination from
incomplete combustion of coal in dumps.
Leachates with acid from oxidation of pyrite in sulfidic rock and coal, heavy metals,
sulphates etc.
Leachates from hydrocarbons (including PAHs) contamination from incomplete
combustion of coal in dumps.
Residual coal washing/processing chemicals (albeit, their application in the Donbas
is reportedly rare)..
Aquifer drawdown (in areas where active pumping continues).
Low level area flooding (in areas where mine dewatering has ceased and
groundwaters have recovered).
Massive pumping operations in many cases due to hydraulic linkages between closed
and operational mines – 100s of m3/hr is common.
Shallow aquifers affected by saline or otherwise contaminated waters.
Some high quality mine waters are suitable for drinking water and/or agricultural
application.
Existing aquatic ecosystems affected by waters with elevated levels of salts and/or
metals.
New aquatic ecosystems created in subsidence/shallow aquifer areas where wetlands
form after groundwater recovery (Loza and Nazarenko 2006).
Active ventilation of methane CH4 from mines
Chronic leakage of CH4 from mines
Emissions from burning dumps including carbon monoxide (CO), carbon dioxide
(CO2), nitrogen dioxide (NO2), sulfur dioxide (SO2), volatilised heavy metals and
tarry compounds. Further details are available in Appendix C.
Dust generation from spoil dumps – including the formation of dump with trucks
loaded with coal waste.
Potential for increased dust emissions during dump reshaping, aggregate or coal
recovery, truck movements, rehabilitation works etc.
Urban and peri-urban location of spoil dumps implies heightened risk to
community.
15
Table 2-2
Classification of environmental risks – part B (after Laurence 2006)
Broad
closure
risk
Sub-issue
Specific event
(options)
Specific examples and issues for Donbas Coal mines
Land
systems
Aesthetic values
Close to population
centre or main roads
Remote
Infrastructure
Buildings, equipment,
camps
Roads
Stockpiles, dumps,
dams, sumps
Borrow pits
Contamination
Topsoil
availability/suitability
Erosion potential
Reshaping/earthworks
Significant visual impact of mine dumps in urban and peri-urban areas.
Essentially all mine dumps markedly visible in Steppe landscape.
Visual impact may not necessarily have negative connotations due to a) being
part of the “cultural landscape”; b) absence of other significant topographical
features.
Smoke and/or dust generation visible to surrounding populations.
Significant remaining mine infrastructure at many mines. Process of
infrastructure removal and liquidation ongoing in many cases.
Remaining pump house infrastructure at mines with ongoing water extraction.
Soils
16
Flora
reestablishment
Simple
Complex
Rare/significant
Fauna
reestablishment
Terrestrial
Avian
Aquatic
Voids
Open
Backfill (using waste
rock)
Subsidence
Exploration
Management/
Monitoring
Dump soils unsuitable for support of vegetation growth until some 30 years of
weathering and salt/acidic leaching has taken place {so called Technogenic soils
(weathered shales) may be suitable as growth substrate (Kostenko and
Opanasenko 2007)}. Steppe soils are suitable and physically available for dump
revegetation in many locations but legislative barriers to usage of such soils
exists.
Most dumps are created at angle of repose, as such very significant erosion
potential is inevitable. Evidence of significant water erosion on dump sideslopes.
Some proportion of dumps have been reshaped (apparently to a limited extent,
with removal of top and moderate decrease in slope).
Moisture and harsh winters have contributed to grasses dominating natural
vegetation on the steppe. Pine forests and small birch-aspen woods exist in
sheltered well watered spots. Flora reestablishment efforts have focused upon
hardy non-native species (some 30 types) with acacias dominating. Birch and
aspen are also evident. Abandoned spoil dumps are often self-grassed with some
self established trees after the passage of some 30-50 years. Details of
revegetation procedures and approaches are available in Appendix C.
Revegetation with tree species has apparently been successful on “rehabilitated”
dumps but is labour intensive with planting of individual seedlings (circa 40-80%
survival rate) reported. Discussions with expert organisations indicate that
mulching, soil amendments, hydroseeding etc. do not appear to have been
trialled extensively if at all – although they are listed as theoretical possibilities.
Hot dumps are reported to constitute a unique winter habitat for macrofauna
(e.g. hares). Limited vegetation cover on many dumps indicates limitations for
macro-fauna. Biodiversity or fauna counts are not mentioned by revegetation
specialists.
Aquatic fauna generally not relevant to spoil dumps or shafts – however,
potential for significant biodiversity gains in flooded subsidence areas is possible.
All general access to mines is relevant in the Donbas. Shafts require removal of
head frames and then capping. This is normally conducted but sites are not
secured.
Abundant availability of spoil for backfilling if required.
Subsidence leads to extensive infrastructural damage, flooding (where surface
levels fall below shallow groundwater levels, enhanced methane gas migration
via fissures.
Monitoring of explosive gases, groundwater quality, ground subsidence etc. is
required in medium to long term.
Table 2-3
Classification of environmental risks – part C (after Laurence 2006)
Broad
closure
risk
Sub-issue
Specific event
(options)
Specific examples and issues for Donbas Coal mines
Wastes
Dumps
Reshaping
Covers
AMD
Topography
Seismicity
Climate
Reshaping limited to “cone removal” where applied. Three types of dumps are built in the
region – cone shaped, ridge shaped and flat top dumps (see Appendix C). Signicant
reshaping likely required if long term erosion is to be controlled. Dump slopes of 25-30º even in residential areas are common in the region. Slopes of less than 20º are listed as
“gentle”.
Low permeability covers likely required if acid generation and AMD/ARD is to be reduced.
Dumps highly visible due to flat steppe landscape.
Seismicity has not been reported as a problematic issue for dumps.
Climatic conditions moderately conducive to AMD. Dry climate reduces options for
vegetation covers.
Destabilisation of spoil dumps with possible subsidence, landslides and the death of
vegetation in the vicinity of the “hot” spoil.
Covers not applied (reported for only one operational site where compacted and covered
layers for fire prevention are applied).
AMD, salinity and toxicity effects are not assessed, monitored or reported.
Stability assessments of dumps are uncommon or not conducted at all (1 university study of
dump stability reported that many dumps are physically unstable).5
One formal and legal coal washing/beneficiation plant operates in the Donbas – it has
processed two waste dumps with a total of 2 million m3 (for details of the
Snezhnyanskaya#1 plant, see Appendix C). A second operation (5 spoil heaps, total 12
million m3) is planned. A simple water/gravity separation process for coal is applied. Dense
media cyclones or other more advanced coal recovery technologies are not reported.
Informal and illegal coal recovery operations operating with simple dry vibrating tables
yielding a fuel of 5-10MJ/kg are common on spoil dumps.
Notably, in coal rich dumps, coal grades often vary from low values (less than 5%) at the
dump bottom (e.g. associated with mine development) to as high as 15% in upper portions
of dumps. Typical concentrations are related to be 10-15%.
Tailings
Reshaping
Covers
AMD
Toxicity
Stability
Landbased
Riverine
Submarine
Chemicals
including
cyanide
Fuels,
lubricants
Sanitation
Tyres,
machinery etc.
Garbage
Coal fines dumps and Ash dumps land based. Coal recovery tails are co-disposed with
aggregate waste in dump recovery operations. These typically have high clay content and
may be suitable as revegetation substrate.
Hazardous
materials
Other
Heritage
5
Indigenous
Nonindigenous
Historical contamination not known but highly likely at many sites in localised areas.
Chemicals and fuels use now minimal at closed or closing sites.
Dumps and their surrounds are commonly utilised by local populations for the disposal of
municipal solid waste.
No known indigenous community issues. Limited heritage issues with mines.
Personal communication: Prof. Yurij Gavrillenko, 5 August 2008
17
2.2 Health and Safety Risks
Table 2-4 indicates broad categories of health and safety risk grouped into sub-issues, specific
events for mining, and specific examples identified for coal mines in the Donbas. Health and
safety risks are relevant for several groups. These include, among others: mine workers, mine
closure contractors, neighbours and potential future land-users.
Table 2-4
Classification of health and safety risks
Broad
Closure Risk
Sub-issue
Openings
Shafts, raises,
winzes
Adits, drifts
Open pits
Wastes
Subsidence
Infrastructure
Security
Trenches,
costeans,
drill holes
Dewatering
Spoil dumps
Radiation
source
Disposal
18
Backfill
Fencing
Bunding
Reducing
batters
Toxic
emissions
Physical
stability
Coal
or
mineral
extraction
Crown pillar
collapse
Caving
Specific examples and issues for Donbas Coal mines
Essentially all large scale mines accessed by shafts. Typical seam depths at horizons
from 170–200m to 600–640m). A number of mines reported to be on “care and
maintenance” or “closure preparation” are reportedly involved in coal production. As
such, shafts and lifting equipment operating in such mines represent both an
operational and closure risk.
A large number of illegal small scale mines are now operational on mine lands. These
typically access shallow seams on mine leases and have unsupervised access.
Open pits generally not applicable in Donbas. Extensive backfill available if and when
required (from mine spoil dumps).
Effective fencing, safety barriers or supervision are generally absent from many sites –
particularly old or “closed” sites.
Degassing and dewatering networks with primary health and safety issues can be
related to explosive gas migration.
“As deposited” dumps may have significant stability issues – particularly where
combustion has weakened dump structure. Dump slopes of 25-30º - even in residential
areas are common in the region indicating a physical hazard. Most dumps are left at the
natural angle of repose.
Emissions from burning dumps are toxic. Intrusion upon the surface of a burning
dump is directly dangerous.
Subsidence equivalent to about 90% of the depth of the extracted layer is common.
Earth movement and cave-ins remain a prime issue in operational mines of the
Donbas. Longwall operations are conducted in the operational seams of the Donbas.
For closed or closing mines in the region there are two primary damage pathways that
remain: physical infrastructure damage and flooding – reported health and safety risks
are related to structural integrity of buildings etc. that are in turn affected by
subsidence. Details of the risk of flooding of residential or industrial areas pursuant to
cessation of mine dewatering are included in Appendix C.
Ownership and access for remaining mine buildings needs to be both determined
(ownership) and controlled (access). Access to buildings and remaining buildings,
equipment and mine lands remains an important issue both prior to and after cessation
of operations.
Buildings,
equipment
Increased
security
Emergency
response
preparedness
Specific
event
Theft
Unauthorised
access
Mine sites in transition economies and in developing countries are particularly
susceptible to unauthorised access, theft of equipment and materials, dismantling of
infrastructure and “salvage” of materials (e.g. copper cables, reinforcing iron, structural
metal, etc.).
Illegal mining operations on mining leases owned by the state – and utilising official
mine drawings and geological data as a basis for their planning are common. There are
clearly significant health and safety issues for such mining operations. Similarly,
unauthorised coal recovery operations from dumps exist. Security interventions for
these operations are apparently absent.
Emergency response issues post closure are indicated to be related to: a) potential for
dump fires, b) gas fire or explosion risk, c) building stability, d) residual infrastructure
safety. Modes or delineation of responsibility for such responses at non-operational
sites remain unclear. No evidence of formal emergency response plans for closed mines
was found.
Not raised as a relevant issue for waste dumps by informants. However, anecdotal
evidence indicates that the presence of uranium is possible in some dumps and this
should be established on a site by site basis..
2.3 Community and Social Risks
Table 2-5 indicates categories of risk associated with communities around mine sites and the
social structures that have relied upon them. Where mines have already closed in the Donbas,
most of the structures and impacts related to community and social risks have already taken
their final form – here such items are listed for completeness and in recognition of the
usefulness of basic documentation ex post. However, even for mines that have been “closed”,
due recognition of community and socially related risks related to the sites is required.
Where mines have not yet closed, or are in the process of closing, recognition of some of
these items may facilitate modification of closure plans in order to achieve improved site
closure and remediation, and reduced residual community and social risks.
While, many of the items listed in Table 2-5 lie outside the scope of this report, they are
included for completeness. Moreover, they provide the reader with important context
regarding the status of coal mining and mine closure with the overall economy and social
“condition” of the region.
19
Table 2-5
Classification of community and social risks
Broad closure risk
Sub-issue
Employees
Provision for
entitlements
Retraining, relocation
Workers
compensation claims
Improved
communication
Safety awareness increase in injuries as
closure approaches
Keeping team together
particularly key
personnel
Management
Contractors
Unions/employee
representatives
Landowners
Affected residents
New settlers
Local government
General community
impact
6
Specific event
Specific examples, issues and or potential relevance for Donbas Coal mines
Provision for entitlement provisions are the responsibility of the State for the Nationalised operations.
Details of private mine arrangements, payments, payouts and pensions were not ascertained during the
UNEP missions.
Retraining and relocation programmes were not reported by any Mission informants.
Requirements for new forms of safety awareness and training associated with new mine closure activities
were not reported by any Mission informants.
Identification of key personnel and special teams suited for specific closure projects (e.g. infrastructure
dismantling, shaft capping, spoil dump remodelling, revegetation, etc.) were not reported by any Mission
informants.
General safety performance as reported in official statistics is now rising from a peak of deaths and
injuries per coal tonnage unit during the 1990s. Accident rates are not as low as they were during the
peak time for the industry during the late 1970s.
Management of mining in privatised mines is reportedly very poor – with incentives (or instruction) to
maximise production at the direct cost to mine safety (e.g. reducing roof support intervals well below
minimum standards was one anecdote provided).
Can be used to reduce
the need for, and
impacts of retrenching
employees.
Potential for cost blow
outs
Contractor arrangements were not reported
Significant numbers of residual mine employees are retained on mines “slated for closure”. Evidence was
found of such mines still producing coal but not necessarily preparing for “closure”. Details of whether
coal was being officially traded from such sites were not ascertained.
Details of this issue were not obtained during UNEP missions.
Indigenous
Non-indigenous
Local
As below.
Regional
National
International
Fly-in, fly-out or mining
town
One company town
Isolation
Mining tradition in area
High local
unemployment
Single industry town
Residential property
value impact
Impact on family values
Diversification or decline
Return to subsistence
Health issues - alcohol,
drugs
Not all mine lands are owned by the State.
Many historical sites where mining has ceased – or where spoil dumps are very old have been ceded to
third parties such as municipal councils (committees). Accountability for risks, ownership in the case of
reprocessing and so forth remain extremely unclear.
Ukrainian legislative frameworks for transferring site ownership and accountabilities are absent or poorly
developed.
Some 5000 residents are reported to live in so called ‘sanitary zones’ (no go zones) around mines and
mine dumps. Numerous dwellings located within 10’s of metres from dumps were witnessed during the
UNEP/ENVSEC mission of 2008.
A range of issues in this category are relevant to the Donbas region 6 and require exploration on a site by
site basis. Most mine waste dumps are in urban or peri-urban areas – some literally in “backyards”.
Local communities are thus affected such dumps – especially in the cases where they emit pollutants to
air and water. Informants to the UNEP mission reported discomfort from such emissions as undesirable
but essentially a “fact of life”.
General issues are included in the category below (regional, national)
Specific risk issues relevant to the general decline of coal mining and mine closure in particular (thus
regional and national) include:

Mining tradition in area – maintenance of key skills and capacity during transition periods,
heritage value of specific infrastructure, and mine sites normality of spoil heaps in peri-urban
environment, etc.

Informal organisaed and/or itinerant mining, coal recovery and dump processing activities.

High local unemployment – doubled 1995 to 1999 (then circa 11%), drop in production for the
region during transition has been greater than average for the county with circa 40-45%, a low
degree of change in industry branch structure (Rudenko, Gukalova et al. 2005). Coal production
fell to less than half of peak figures and employment in the industry fell correspondinly (UNEP
2007 Mission Report). Closure of some 40 mines with a loss of 67 000 jobs expected (Rudenko,
Gukalova et al. 2005).

The coal industry has been a very significant part of the economy in the sub-region, tracking of
trends in this regard and relative growth of alternatives, etc. is important (see diversification)

Residential property value impacts are likely affected – e.g. downwards by presence of waste, by
derelict sites and by industrial activities such as dump material recovery operations, upwards by
remediation and rehabilitation works, etc.

Impact on family values – collapse of the formal economy, significant effects on family structure
and function, wage earners commonly enter shadow economy that is some 50% of economy.

Organised crime – the highest growth in crime levels was seen in 1999, when, for example, 96
criminal gangs were uncovered in the region of Donetsk. The national homicide rate grew by 11
% in 1999, and by 2005 amounted to 112 per 1 ,000 inhabitants. Reportedly, 27 % were carried
out by gangs from Donetsk region (Rudenko, Gukalova et al. 2005).

Diversification or decline (see coal industry above) The Donetsk region is categorised as
“Overindustrialised” with very high proportion of coal mining, electricity generation and chemical
and metallurgical industry, withpredominant development of mid and low-technology branches
of machine-building and metal-processing etc. (Rudenko, Gukalova et al. 2005)

Growth and entrenchment of the “shadow economy”.

Health issues such as alcohol abuse, drugs – assumed to be prevalent among unemployed miners.
Rudenko anddd Gukalova (2005) report that: in 1998 the president signed a law on “special economic zones and special regimes of
investment activity in the Donetsk region”. According to that law, subjects of economic activity in towns and districts in the region receive
subsidies and preferences when implementing investment projects directed at social problems. The council on special economic zones and special
investment regimes is responsible for implementing the law and for selecting investment projects. It has already approved 85 projects (47 foreign
investments) with allocated funds totalling 667 million US$. Within the framework of this programme 2,700 new jobs have been created and
4,100 jobs saved. The strategy of forming special economic zones and regions for priority development has proved to be very productive for the
Donetsk region. However some improvements will be required in the future, such as better investigation and selection of projects in relation to
strategic tasks. The transformation of economic structures and other strategies also needs to be considered.
20
2.4 Final land use risks
Many of the mines in the Donbas are located in peri-urban or even urban areas. In such
circumstances it is likely that a wide use of possible final land uses may be slated for the site.
These may include:

Green areas, park or woodland,

Agricultural use,

Grazing,

Industrial or light industrial applications

Residential zones, or

a mixed use combination of the above.
During missions, significant interest in the redevelopment of land taken up by dumps was
indicated by many informants.
Moreover, while there has been a long period of industrial use for many of the mine sites –
and while many sites have adjacent industrial or residential areas, the possibility that high
importance biodiversity areas might constitute heritage sites exist cannot be excluded. In this
light, the literature indicates the establishment of rich wetlands in subsidence areas (Loza &
Nazarenko, 2006).
As the most visible (and dominating) features at closed (or closing) mines, the closure works
on spoil dumps and their “making safe” ( physically, geo-chemically, and visually) will be a
very important factor in options, risks and decisions regarding final land use. As such, a good
understanding of all mine dumps will be required for both risk assessment and closure activity
prioritisation. As indicated in the previous sub-section, it is reported by a number of
informants to the UNEP missions that very significant difficulties remain in the legislative
frameworks surrounding the transfer of ownership of mine sites from the State to individuals
or organisations. As such, issues of unclear liability are very likely to affect final land uses.
Table 2-6 seeks to categorise a number of the risk issues associated with final land use.
21
Table 2-6
Classification of final land use risks
Broad closure
risk
Sub-issue
High
value
($/ha
or
conservation
values)
Premium
agricultural land
Industrial
commercial/
residential
Medium value
Low value
22
Specific event
Residual or ongoing
contamination
Ongoing long term
physical or chemical
risks
Specific examples and issues for Donbas Coal mines
Affected mine or dump pollution (by air or dump application), or from
contaminated waters – however, it appears unlikely that many Donbas sites
will fall into such categories
e.g. Migration of contaminants from dumps (e.g. salts, heavy metals etc.)
Gas migration from voids or land subsidence. Details of the risk of
flooding of residential or industrial areas pursuant to cessation of mine
dewatering are included in Appendix C.
As above – however, it appears unlikely that many Donbas sites will fall
into such categories, rather they are considered as potential sites for public
reserves.
National
park/heritage
As above
Return to
pre-existing
ecosystem
Forest
Grazing
Previously
disturbed mine
site
Heavily degraded
arid land
Residual or ongoing
contamination
As for agricultural land above – it appears unlikely that a significant
proportion of Donbas mine sites could fall into this category. Moreover,
organised agriculture – even low intensity grazing activities appear
uncommon in the area.
Residual or ongoing
contamination
Many sites appear likely to fall in this category.
2.5 Legal and financial risks
The closure process for the mines in the Donbas region is costly. Indications are that while
many mines cost in the order of 20 to 30 million Hryvnia (UAH)7 to “close” according to
current Ukrainian requirements,8 for some, requirements can be in the order of 100 to 120
million UAH.9 Among those operations that are slated for closure and under care and
maintenance regimes, costs are indicated to run to the order of 1 million UAH per mine per
month.10 These costs generally do not appear to be allocated to remediation but to operation
of pumps, ventilation etc. plus social payments. Anecdotal evidence suggests that corruption
accounts for some (perhaps significant) portion of these monies as well.
However, the direct closure costs are not the only items that have cost implications. This
section documents a category combining direct financial risks and legal risks (with financial
implications) for mine closure. Table 2-7 overleaf provides a summary of a number of
potential risk areas related to the legal and financial aspects of mine closure.
7
In July 2008, 1 Euro = circa 7.4 Ukraine Hryvnia
8
Note that Ukrainian mine closure requirements may NOT satisfy best practice mine closure requirements. See “Mining for
Closure” published by UNEP in 2005 for general discussions of what represents best practice.
9
(Joint stock company «Dongiproshaht» of the Ukrainian Ministry of the Coal Industry, 2007 UNEP mission)
10
(Organisation dealing with the development of mine closure projects - State Enterprise “Ukruglerestrukturizatsia” , 2007
UNEP mission)
23
Table 2-7
Classification of legal and financial risks (part A)
Broad
closure risk
Sub-issue
Government
Regulatory
compliance
Creditors
Title
Retain
Sell
Relinquish
Security/bond
Large
Small
Documentation
Ownership information
Liability for legacies
Liability for future impacts
Liability documentation for new
mines or extended mine
operations.
Employees
Redundancy entitlements
Pensions
Contractors
Businesses
Financial obligations for
worksconducted/contracts etc
Liability for damages to
contractors or business during the
closure process or pursuant to
mine closure.
Taxes
Royalties
Government
24
Specific event
Specific examples and issues for Donbas Coal mines
While closure guidelines and requirements exist in Ukraine, it is
desirable that they be aligned with standards in the EU and with
global mining best practice.
Monitoring of compliance of closed mines with standards appears
to be non-existent. Monitoring of water, air, groundwater, dust,
etc. appears to be entirely absent.
Resources and processes for monitoring and sanctioning appear to
be essentially absent.
The title to many recently operational mine sites remains with the
Ukrainian State (albeit, in an unclear fashion).
Many old sites have however, been ceded to municipal ownership.
There appear to be no mechanisms for liability. These issues pose
legal risks for both current “owners” and/or potential investors in
such sites.
The details of title exchange regarding privatised sites, and the
liability provisions for new owners is not known at this stage –
there is both a chronic lack of information and clarity regarding
this issue. Several informants report that Ukrainian legislation has
not yet been developed to address the transfer of liability and/or
the ownership of resources.
The government was the operator and owner of mines in Ukraine.
Bonds or other forms of financial assurance were not required and
the Government remains responsible for the historical
contamination, which has just been left.
Accountability for historical contamination problems at mines that
have been privatised is reported to lie with Government but no
mechanisms for shared liability or transfer of liability were
reported. There is apparently no formal monitoring of status.
No forms of bonding of new mines or new extensions to mines
were reported during UNEP missions. No awareness of such
practice was been reported.
It appears that insufficient mine, mine impact, mine survey, full
ownership information etc. is available to the institutions tasked
with closing mines. In the absence of full documentation of mines
sites and their environmental aspects, then a number of potential
financial risks exist. These include inter alia: risk of costs being
significantly larger than expected for items that are known, risks of
new closure items being discovered, future damage costs for
unexpected events, and so forth.
As one example, while much of this document addresses gaps in
information regarding the environmental risks, considerable
documentation of mine spoil heaps, their environmental impacts,
their potential value, the feasibility of differing remediation and
rehabilitation options etc. does exist. However, the 2007 UNEP
mission established that such information is in the hands of many
different organisations and does not appear to be centrally
controlled or available. Moreover, there are significant restrictions
upon access to information in some instances.
Redundancy payouts and/or for miners in the region involves
significant amounts of money.
Clarification is required regarding whether this is covered from
mine closure budgets or from other State funds.
In the new situation of privatised operations, clarification is also
required regarding the conditions imposed on the new owners, if
any, and how payouts to miners are financed and managed in the
case of unexpected closure (e.g. in the case of bankruptcy or a
physical mine disaster), planned closure and so forth. Such
information was not sourced or provided during the UNEP
missions conducted to date.
Clarification is required regarding whether such items are covered
from within mine closure budgets or from other State funds.
Such information was not sourced or provided during the UNEP
missions conducted to date
It is assumed unlikely that there are outstanding taxes or royalties
to the state from the state owned enterprises. However, this
category may be a closure issue for privatised operations that are to
close. Such information was not sourced or provided during the
UNEP missions conducted to date
25
Table 2-8
Classification of legal and financial risks (part B)
Broad closure
risk
Sub-issue
Specific event
Specific examples and issues for Donbas Coal mines
Provisioning
for
rehabilitation
Provision
made
Infrastructure removal
or sale
Waste dump
remodelling, capping,
revegetation etc.
Installation of
pumping and water
treatment equipment
Ongoing operation
and maintenance of
items such as water
pumps.
Monitoring of
environmental quality
Etc.
Detail information regarding the exact items that are included in mine “closure”
in the Donbas were not obtained.
However, it is understood that provisions in the closure budgets are made for
removal of some underground infrastructure, removal of most or all above
ground infrastructure, removal of dump tops and minor remodelling of dump
shape, revegetation of dumps and installation of groundwater pumping
equipment in situations where the mine is hydraulically connected to adjacent
mining operations.
No evidence of site by site financial set-asides earmarked for ongoing
maintenance etc. was found.
No
provision
As above
A significant financial or legal risk identifiable at this stage is that in the future
new “closure” activities for which no provision exists arise as both regulatory and
external stakeholder requirements become more exacting. It is foreseeable that
such costs will fall upon the economic actor owning the site at that time unless
exclusion clauses for future liabilities of this type are explicitly addressed in the
ownership transfer documents.
No efforts to protect or monitor groundwater, surface water, ensure dump
stability etc.
Salvage
Potential for
adverse
publicity
and impact on
business
26
It is understood that most salvage that is economically feasible at the current
time is carried out (e.g. mobile and fixed equipment with residual or scrap value).
Future planning for mine closure needs to address such salvage costs explicitly.
Adverse publicity is strongly linked to comments regarding greater future
stakeholder expectations for environmental, health and safety quality in the
future.
2.6 Technical Risks
This section documents a number of technical risks associated with mine closure. Table 2-9
provides a summary of a number of potential risk areas related to the legal and financial
aspects of mine closure. Note that many of the technical risks associated with the operation of
a mine are not addressed here.
Table 2-9
Broad
risk
closure
Closure plan
Closure team
Resource/reserves
Classification of technical risks
Sub-issue
Plan exists and up to
date
Plan not up to date
Specific event
Specific examples and issues for Donbas Coal mines
Absence of plans
prior to mining
cessation
Although elements of closure planning are embodied in the specifications for mine
closure, specific formal plans for management of technical risks do not exist.
Generation of plans
for mines in closure
process or slated for
closure
Details remain to be obtained in such categories. Data made available to UNEP thus
far has not described in detail the process of developing closure plans, the standard
items contained within them or the manner in which closure progress is monitored, or
the manner in which mine closure plans are updated to account for changing technical
or stakeholder requirements.
Rehabilitation progress
against plan
Management
Community liaison
Environmental
Planning
Electrical/mechanical/
financial etc.
Exhausted
As above for mine
closure plans
Not exhausted
Accessible for
future extraction
Potential for
new reserves
Sterilised
Permanently
No details of the makeup of closure teams and task descriptions has been provided or
found by UNEP missions.
The information provided to UNEP in 2007 meetings indicates that coal seams for
some closed mines were exhausted or significantly depleted. However, specific details
of such mines involved have not been made available to UNEP.
It is known that the resources in a number of the mines that have been closed, or
mines slated for closure where not exhausted and for at least some of these, anecdotal
evidence of the closure of some mines with both significant remaining reserves and
significant further development has taken place.
Due to the ongoing mining activities in the region and the broad acceptance of mining
it is anticipated that few coal resources are sterilised permanently. Other technical
considerations such as subsidence and gas migration combined with the presence of
residential or active industrial areas above coal seams can serve to sterilise the resource.
As such the spread of surface land use is linked to new reserves and closure – as a
closure parameter (e.g. to force earlier than otherwise closure)
27
28
3 Emerging trends for best environmental practice
mining
This section introduces a number of international developments that are acting to drive the
uptake of improved mining practices around the world. In the context of this document, the
types of “best environmental mining practice” items addressed here are inextricably linked with the
issues of coal mining, coal mine legacies, and mine closure in Ukraine.
The first topic introduced is Financial Surety (or Financial Assurance). Importantly, financial
assurance for mine closure and reclamation is a topic also addressed in a number of the other
emerging trends introduced here. The second item is The Seveso II Directive enacted by the EU
to help prevent and control major accidents involving dangerous substances – and now also
addressing the mining sector. Among other things, it includes a range of requirements relating
to safety management systems, emergency planning and land-use planning. The third item is
the so-called “extractive industry waste directive” or “Mine Waste Directive”11 again put in
place within the EU system. As its name suggests, it addresses the management of waste from
extractive industries and has a primary intent to prevent pollution and accidents related to
mine waste. The fourth topic taken up concerns the Equator Principles. These are the result of
an initiative started by the International Finance Corporation (IFC) and the World Bank (WB).
These principles are intended to ensure that the projects financed by signatories are developed
in a manner that are socially responsible and reflect sound environmental management
practices.
Finally, this section introduces a second set of principles developed by the ENVSEC partner,
the Regional Environment Center for Central and Eastern Europe (REC). Again, these
principles have been formulated in order to promote the ideas and mechanisms that may be
required if hazardous activities such as mining are to be financed in ways that promote good
practice. These principles are explicitly targeted at jurisdictions such as Ukraine.
3.1 Financial Assurance for Mine Closure & Reclamation12
Financial surety instruments can be defined as:
guarantees issued by a bonding company, an insurance company, a bank, or another
financial institution (the issuer is called the ‘surety’) which agrees to hold itself liable for the
acts or failures of a third party (Miller 1998)
At present, the most common use of environmental surety instruments is when arrangements
are put in place to guarantee environmental performance after closure through the funding of
mine site reclamation or rehabilitation. As such, financial assurance (or surety) is also the
amount of money available to a government entity for closure of the mine when the mine
owner is not available to perform the work, (e.g. bankruptcy) during operations or any time
11
The extractive industry waste directive is officially labelled Directive 2006/21/EC of the European Parliament.
12
A significant part of this discussion is derived or based upon position papers produced by Dr. C. George Miller (1998;
2005) on behalf of the International Council on Mining and Metals (ICMM) and its predecessor, the International Council on
Metals and the Environment (ICME). Miller has an extensive and distinguished background working with mining and related
environmental policy issues. Among other roles he has served as Director of the Centre for Resource Studies at Queen’s
University, Canada, as Assistant Deputy Minister, Mineral Policy for the Government of Canada, as President of the Mining
Association of Canada and as a Director of the Industry Government Relations Group in Ottawa.
29
thereafter. The financial surety can be provided by a variety of financial instruments or cash
deposited in a bank. However, it is important to realise that the governmental policy and local
financial markets may determine the type of instrument available for a specific location (Miller
1998; Van Zyl 2000; van Zyl, Sassoon et al. 2002; Miller 2005). The specific tailoring to the
jurisdictional context in the region or country is a prerequisite for the successful function of
such instruments.
There are a large number of options available for financial assurance instruments. Each type
of instrument may be appropriate in a given situation or set of circumstances but this depends
upon a range of different criteria. Examples of factors that need to be taken into account
include the financial stability and strength of the mining company; the size of expected or
potential environmental liabilities associated with the operation; the time frame over which the
liability is to be maintained and so on. There also appears to be promise that insurance
packages offer potential for reducing the costs and risks associated with environmental
financial assurance.
Some forms of financial assurance that have been utilised, (or are available and suitable for
use) are listed with working definitions in the table below. Examination of this table should
immediately indicate that a number of these options are simply variations on a similar theme.
The definitions supplied here are relatively informal – again the context and legal frameworks
of the country of application are important in this regard – the definition and mode of
function for these may differ in different legal jurisdictions.
30
Table 3-1
Differing types of Financial Assurance
Financial Assurance form
Definition or description
Surety bonds
Surety bonds are three-party agreements in which the issuer of the
bond (the surety) joins with the second party (the principal) in
guaranteeing to a third party (the obligee) the fulfillment of an
obligation on the part of the principal. An obligee is the party
(person, corporation or government agency) to whom a bond is
given. The obligee is also the party protected by the bond against
loss.
Performance bonds guarantee performance of the terms of a
contract. This protects the owner from financial loss should the
contractor fail to perform the contract in accordance with its terms
and conditions.
A fund built up over a period of time to provide a given sum of
money at the end of that period.
Similar to sinking funds but an accounting allowance, and as such not
available to creditors as cash.
A contractual arrangement between a number of companies and the
government that undertakes to cover closure costs should one party
default on their accountabilities.
An undertaking by a bank to be answerable for payment of a sum of
money in the event of non performance by the party on whose behalf
the guarantee has been arranged.
Certificates of Deposit are securitised bank time deposits. The
creditworthiness of a bank is evaluated by impartial rating agencies
and this affects the conditions of the arrangement.
A Letter of Credit is a conditional promise issued by a bank requiring
the bank receiving it to pay a sum of money to a specified party upon
fulfillment of the stipulated terms and conditions (or in this case,
potentially upon the default of the mining company in site closure).
A legal arrangement whereby control over property is transferred to a
person or organization (the trustee) for the benefit of someone else
(the beneficiary).
Funds, property, or other things of value left in trust to a third party.
The Escrow may be released upon the fulfilment of certain
conditions or by agreement of the parties.
A security is a tradable, substitutable, negotiable instrument
representing financial value. In this case, the entity issuing the
security (issuer) would be the government.
An insurance scheme, or insurance tool; in this case set up
specifically for the mining industry in which the insurance sector
assumes accountability for the costs of closure.
Performance bonds
Sinking funds
Financial accruals
Security
pool
companies
involving
Bank guarantee
Certificates of deposits
Irrevocable13 letters of credit
Irrevocable trusts
Escrow accounts
Government securities
Captive insurance schemes
several
According to van Zyl (2000) a clearly established manner in which to achieve financial
assurance is via the accumulation of financial accruals by mining companies for closure. It is
common to base accruals on a unit production basis (such as $ per ounce of gold produced).
The total amount of the accrual is estimated from the environmental closure cost plus other
liabilities specific to a mine such as land holdings, personnel costs associated with the end of
operations, and so forth. Financial auditors can perform annual reviews to determine the
adequacy of these closure funds.
13
The term irrevocable indicates that the option cannot be changed or cancelled once it is set up without the consent of the
beneficiary.
31
A number of additional features also characterize financial assurance and closure cost accruals
(c.f. van Zyl et al (2002) and Miller (1998)). Conceptually, financial assurance is in place during
the total life of the mine and will only be released (in part or in total) after the regulatory
agencies have established that rehabilitation has been completed to their satisfaction.
However, the financial surety does not necessarily constitute a fixed amount throughout the
life of the mine. Rather, it may vary pursuant to the conduct of mining and rehabilitation (e.g.
as one pit is filled by transfer mining) as environmental issues develop at a mine, as regulatory
changes occur, as community expectations change and so forth.
Closure cost accrual should take place over the life of the mine on the basis of an agreed and
continually updated mine plan. As such, accruals are not necessarily a linear function but
rather will also vary over the mine life. In the US and some other countries, the financial
assurance fund is not available to a mining operation for closure work at the end of the mine
life, but rather may be released shortly after the work has been done. As such, the mining
company must be a going concern in order to perform, or contract some entity to perform,
the required closure activities.
As a variation, a number of mining companies have established “sinking funds” 14 to pay for
the closure of a mine. Money from a sinking fund will be available in cash to pay for closure in
contrast to an accrual that is an accounting allowance and as such is not liquid. However, it
must be noted that while sinking funds may be attractive because they are liquid, in the case of
a bankruptcy these become part of the assets of the company and will not be available to pay
for closure (as they may be taken by the creditors of the operation).
Among Financial Assurance instruments that are applied, bonding is the most widely used.
Bonding involves the payment into escrow15 of an amount determined by regulators to be
sufficient to ensure an acceptable level of remediation. In an extensive study of bonding and
insurance as prime alternatives Poulin and Jacques (2007) contrast the advantages and
disadvantages of the bonding instrument. Table 3-2 summarises their main observations.
Table 3-2
Advantages and disadvantages of Financial Assurance through bonding
ADVANTAGES
DISADVANTAGES
Protection
against
unfounded
reclamation needs.
Relies on individual performance
objectives, rather than broadly applied
standards.
Bond payments into escrow accounts
have great symbolic and hence political
value.
Posting a bond is a form of commitment
by mine company managers.
Adapted from Poulin and Jacques (2007).
Depends on monitoring, including the resources allocated and the
expertise available, both to governments negotiating bond size and
terms, and to bond issuers.
Bond size and thus minimum reclamation is a floor, not an optimum.
Bonds are not immune to political pressure.
Difficulties in measuring future reclamation costs and setting bond
amounts.
Insufficient bond amounts due to unforeseen changes.
Bonds create liquidity constraints.
14
To ensure there is money on hand to redeem a bond, a mining corporation may establish a separate custodial account,
called a sinking fund, to which it adds money on a regular basis.
15
Funds, property, or other things of value left in trust to a third party. The Escrow may be released upon the fulfillment of
certain conditions or by agreement of the parties.
32
The advantages of bonds are sometimes clear, as in the case of providing protection against
unfunded liabilities as in the event of bankruptcy. However, alternative forms of FA are also
available. One such pathway proposed by Poulin and Jacques (2007) is a form based on a
captive insurance company for the mining sector. This alternative appears to address some of
the shortcomings of bonding identified in Table 3-2 and also appears to deliver improved
incentive structures at the same time. However, both insurance schemes and other forms of
Financial Assurance also have a number of derived effects, both upon the internal financial
operational decisions of individual mines, and on the relationships between mines and their
stakeholders, most notably governments and local communities.
Additional notes on (previously) preferred manners in which to manage closure guarantees
and the clear direction of future expectations are included in Box 1 on the next page and in
Table 3-3 Overleaf .
Box 1 Accounting provisions
and “good practice” (Nazari 1999)
International practice in the absence of regulatory requirements
In the absence of other regulatory requirements, accounting provision is preferred by
the mining industry to address mine closure liabilities. This practice is an accounting
transaction which allows a company to make non-cash provisions for future mine
closure costs. However, this does not result in any actual cashflow for the purpose of
accumulating closure funds or payment of related expenses. Unless the company has
chosen to set aside actual funds for closure, when the project approaches the closure
date, closure liabilities are likely to exceed the project’s and the company’s tangible book
values, assuming the typical scenario of a ring-fenced special purpose mining company
which is operating one mining project. Any attempts to raise additional funds for
closure at this stage by selling the company’s assets would be unlikely to raise sufficient
funds to meet the closure requirements. A ‘one-project-company’ may declare
bankruptcy at this stage rather than attempting to raise and invest additional funds for
the terminal stage of the project with no prospect of a return on such an investment.
Declaring bankruptcy would ‘externalise’ the costs associated with mine closure and
result in the financial burden being passed on to the authorities. Government funding
may well be inadequate to mitigate potential long term environmental and safety
impacts.
‘Good mining industry practices’ in Australia, Canada, and the USA, for example, are
typically guided by industry stewardship, i.e. “self-policing” as a result of good corporate
governance, by following company policies and reflecting shareholder, employee, and
NGO pressure, relatively recent regulatory frameworks, and sophisticated financial and
insurance markets to integrate and address mine closure activities and their financing. In
these countries, accounting accruals alone are typically no longer considered adequate to
mitigate the risk of non-performance of mine closure activities. Instead, companies are
required to secure the funding by providing guarantees for mine closure funds prior to
commencing construction and operation, and prior to generating any cashflow from the
operation. The available guarantee options include bonding, corporate surety and
guarantees, letters of credit, deposits of cash or gold, insurance and other methods. Key
considerations during the selection process by both industry and regulators include the
costs associated with each option, the credit-worthiness, and the track-record of the
owner/operator.
Table 3-3 overleaf provides a summary of policy guidelines developed by Miller (2005) for the
ICMM in 2004. A number of proviso statements, justifications for the industry position, and
deeper explanations present in the original document from the ICMM have been removed.
33
Table 3-3
Guidelines for framework policies.
Owner pays
Legislation should provide that the owner or operator is responsible for execution and
completion of successful reclamation activities to an appropriate technical standard. Where
long-term care is involved, the operator is responsible to provide it until relieved of liability.
Standard of
reclamation
Reclamation should return the site to a safe and stable condition, free of safety hazards (such as
unsafe buildings, equipment, open holes, etc.); return the mine site to viable and, wherever
practicable, self-sustaining ecosystems that are compatible with a healthy environment and with
human activities. There should be measures to address and prevent ongoing pollution from the
site. There should not be a blanket requirement to return the site to its original condition or to
a condition permitting particular land uses.
Standard of
certainty
Closely related to the issue of standard of performance is the degree to which the government
seeks assurance against all possibility of loss or damage to the environment. If governments
insist on being indemnified against all possible events, excessive costs will be imposed and
investment incentive will be drastically reduced. Governments should have a general policy of
requiring Financial Surety that is prudent in light of all reasonably foreseeable risks, but they
should not insist on protection against extremely unlikely events.
Timing of financial
assurance
requirement
Any requirement for Financial Surety, or any change in the required standard of reclamation,
should be identified as early as possible in discussions between company and government.16
Transition
arrangements for
existing mines
If it is necessary for a government to alter the required standard of reclamation, or to require a
financial assurance instrument where none was required previously, the operator should be
given a reasonable time to comply with the requirements. In some cases, particularly where the
mine is only marginally profitable or is approaching the end of its life, a creative approach to
the design of the Financial Surety may be called for.
Taxation
All requirements for Financial Surety impose some costs on the operator. In particular, hard
forms of security (such as letter of credit, cash bonds or trust funds) impose two kinds of cost:
direct carrying cost and loss of use of the funds for productive investment (or corresponding
reduction in borrowing power). It is appropriate that the tax regime of the country recognizes
these costs and attempt to minimize their negative effects.
The exit ticket
It is reasonable to demand that Miners accept the costs and liability for environmental
protection of the site during operations and for reclaimed the site upon closure. Where
conditions such as acid mine drainage exist, it is reasonable that companies also accept the
necessity of funding long-term care and management. However, government legislation should
provide explicitly that at a certain moment the company can be relieved of future liabilities for
the site. In most cases, this relief would be given as soon as site reclamation has been
successfully completed. In the case of acid drainage, it would be given as soon as necessary
funding arrangements have been established for long-term care.17
Alternatives to
financial assurance
It is known that the insurance industry is now in a position to offer certain vehicles to
supplement or replace existing Financial Surety instruments. At the same time, international
standards for environmental quality management, such as the ISO 14000 series, are becoming
more widely practised and accepted. This raises the possibility that a practical certification or
accreditation system may ensue, giving governments additional confidence in accredited
companies.
Summarised from Miller (2005).
It is clear that financial assurance instruments can be effective in promoting or enforcing
environmental protection and while not yet “popular”, they are increasingly accepted by
industry as perhaps the most effective manner in which to ensure that protection of the
16
In Ontario for example, a review is normally performed every five years or at the call of the responsible minister in the
jurisdiction personal communication: Natural Resources Canada (2005, 2 August). Gilles Tremblay: email..
17
However, this remains a topic for debate for sites with ongoing pollution challenges such as acidic drainage and true “walkaway” conditions may not be achievable. One officer of a prominent jurisdiction at least is “not sure that we will ever see an exit
ticket with acidic drainage present on site” Ibid..
34
environment is achieved and public expectations are met in the mining sphere.18 To quote
Miller (2005, p13) on the topic of (that which he terms) Environmental Financial Assurance
(EFA):
Mining companies accept that the major function of EFA is to protect the government and
public in the event a mining company cannot meet its reclamation obligations. While
several large companies felt they were capable of fulfilling their environmental obligations
without the additional discipline of a financial assurance mechanism, they agreed that a
financial assurance instrument does provide more certainty for the protection of the
environment. ………… All companies accept that government needs to demonstrate to
the community that it has received sufficient financial protection from the holder of mineral
rights to ensure effective reclamation.
Miller also provides comprehensive reviews of financial assurance in various regulatory
regimes and the common instruments in use in two reports generated six years apart (Miller
1998; Miller 2005). This documents a marked change in mining industry attitudes to financial
surety that has taken place over the period 1998 to 2005. To extrapolate from these changes, it
appears certain that the application of financial surety mechanisms will become both more
prevalent and more accepted in coming years.19
Switching to a more governmental view, the following call from the Government of Ontario
also underlines a positive attitude towards strict financial surety approaches:
Other jurisdictions have expressed concern that the introduction of provisions similar to
those brought in by Ontario would cause premature closure of existing operations and
would also deter new investment from coming to the jurisdiction. Ontario is proud that the
2002 Fraser Institute survey of exploration investment decision-makers rated it as the best
jurisdiction in the world for such investment. Clearly our tough rehabilitation requirements
have not acted as a deterrent (Gammon 2002, p4).
In closing, it appears that financial assurance for mine closure and reclamation has progressed
rapidly in recent years and will become more and more accepted in coming years. However, in
the context of Ukraine, it is important to note that its success is dependent upon the
soundness of the governing bodies that put such mechanisms in place.
18 These
views evolved markedly in the period between different Miller studies. In his 2005 study, Miller indicates that while in
1998 (his first study) industry showed a marked preference for “soft” assurances such as: financial strength; self-funding of
the obligation while retaining control of the funds; a financial test which determines the grade of the company; a corporate
guarantee based on that grade; self-funding through financial reserves; parent company guarantees and pledge of assets, by
2004 the majority of industry respondents recognized that harder methods such as letters of credit, bank guarantees,
deposit of securities, and cash trust funds, may best serve the industry, as they are required to satisfy public expectations.
As to which instruments best serve the interests of the government, the 1998 report noted that they would be those that
best serve the mutual interests of the government and the company. In the current study, industry respondents suggested
that cash deposits, any liquid instrument, and bank guarantees would best serve governments’ needs.
19
Readers should be aware however, that these documents were written for the ICMM and are as such “industry orientated”
to some degree. This organisation was a relatively select but important (16 company members as of mid-2005 when that
financial assurance document was produced). ICMM membership now includes 18 of the largest mining and metals
companies and 30 association members as of 2008.
35
3.2 Seveso II20
The EU’s Seveso II Directive (Council Directive 96/82/EC) aims to prevent major accidents that
involve dangerous substances and to limit their consequences for society and the
environment. Seveso II applies to establishments where dangerous substances are present in
quantities above certain thresholds – many mining sites fall into this category. The Directive
requires certain industrial operators to implement a major-accident prevention policy and a
safety management system. This includes requirements for safety reports and emergency plans
involving a detailed risk assessment using accident scenarios. In the context of this document
produced for Ukraine both the content of the directive and the nature of its evolution are
important. It is held that Seveso’s evolution since the 1980s can be seen as a good example of
rising “requirements and expectations of performance” from industry in the European Union.
The Seveso directive21 was first put in place in 1982 to help prevent and control major
accidents involving dangerous substances. The directive was adopted in direct response to,
and received its name from the Seveso accident in 1976 at a chemical plant manufacturing
pesticides and herbicides.22
The aim of the Seveso II Directive is two-fold. Firstly, the Directive aims at the prevention of
major-accident hazards involving dangerous substances. Secondly, as accidents do continue to
occur, the Directive aims at the limitation of the consequences of such accidents not only for
man (safety and health aspects) but also for the environment (environmental aspect). Both
aims should be followed with a view to ensuring high levels of protection throughout the
Community in a consistent and effective manner.
In order to broaden the scope of the Directive, and in particular to include the storage of
dangerous substances, amendments were made to the Seveso Directive twice, in 1987 23 and in
1988.24 It was then replaced in December 1996, by the Seveso II Directive 25 in order to
achieve a further widening of its scope and better risk-and-accident management. Important
changes and new concepts introduced into the Seveso II Directive included the introduction
of new requirements relating to safety management systems, emergency planning and land-use
planning and a reinforcement of the provisions on inspections to be carried out by Member
States. From 3 February 1999, the obligations of the Directive were mandatory for industry as
well as the public authorities of the Member States responsible for the implementation and
enforcement of the Directive.
At that time, the focus of the Seveso II Directive was solely upon the presence of dangerous
substances in establishments. It covered both industrial “activities” and the storage of dangerous
chemicals. The levels of control upon establishments covered by the directive were based
upon quantity-related thresholds. There were important areas excluded from the scope of the
Seveso II Directive. These included nuclear safety, the transport of dangerous substances and
intermediate temporary storage outside establishments and the transport of dangerous substances by pipelines.
20
This discussion is summarised from http://europa.eu.int/comm/environment/seveso/.
Directive 82/501/EEC on the major-accident hazards of certain industrial activities (OJ No L 230 of 5 August 1982)
21Council
22
Although no immediate fatalities were reported, kilogramme quantities of dioxin(s), a substance lethal to man even in
microgramme doses were widely dispersed. More than 600 people had to be evacuated from their homes and as many as
2000 were treated for dioxin poisoning.
23 Directive
87/216/EEC of 19 March 1987 (OJ No L 85 of 28 March 1987)
24
by Directive 88/610/EEC of 24 November 1988 (OJ No L 336 of 7 December 1988)
25
Council Directive 96/82/EC on the control of major-accident hazards (OJ No L 10 of 14 January 1997)
36
Further and vital from a mining perspective was that Seveso II did not address important
activities and hazards posed by activities of the extractive industries concerned with
exploration for, and the exploitation of minerals in mines and quarries mining. In fact, for a
number of reasons it specifically excluded mine wastes. However, the accident at Baia Mare in
Romania in January 2000 changed stakeholder expectations in that regard. The severe
pollution of the Danube demonstrated clearly that certain storage and processing activities in
mining, especially tailings disposal facilities, including tailing ponds or dams, have potential to
produce very serious consequences.
As a result, the European Parliament passed an extension of the scope of that Directive to
cover risks arising from storage and processing activities in mining. In short, a significant
range of mining activities are now addressed by Seveso II and the obligations of the Directive
are now mandatory for industrial actors and for the public authorities of the Member States
responsible for the implementation and enforcement of the Directive. These conditions will
also be valid for accession countries and should be of great interest to those countries aspiring
to accession, or wishing to align industrial practices with European standards.
Among other requirements of the Directive, Seveso II demands that industry should:

communicate in detail (a notification) all the dangerous substances present or used at a
facility, and the quantities of such substances);

have an Emergency Plan and demonstrate that it is effective;

have established a Safety Management System to review and check the effectiveness of
safety and work procedures;

conduct a Risk Assessment to cover potential problems associated with storage and
processing activities in mining;

develop a Major Accident Prevention Policy (MAPP).
For establishments that fall within the scope of Directive 96/82/EC, there are minimum
periods for compliance with requirements for notifications and the establishment of major
accident prevention policies, safety reports and emergency plans. Moreover, it is required that
training in all areas takes place throughout the entire organisation and that plans are regularly
reviewed and updated.
The content of Seveso II (DIRECTIVE 2003/105/EC OF THE EUROPEAN
PARLIAMENT AND OF THE COUNCIL of 16 December 2003 amending Council
Directive 96/82/EC on the control of major-accident hazards involving dangerous
substances) is available at the web site(s) of the European Parliament.26
3.3 The EU mine waste directive27
In recognition of the broad set of environmental problems associated with the mining and
minerals processing industries the European Community has developed an extractive industry
waste directive. This is known as the Directive 2006/21/EC of the European Parliament and
of the Council of 15 March 2006 on the management of waste from extractive industries and
26http://eur-
lex.europa.eu/Notice.do?val=287373:cs&lang=en&list=451838:cs,449793:cs,287373:cs,413912:cs,&pos=3&page=1&nbl=
4&pgs=10&hwords=DIRECTIVE%202003/105/EC~&checktexte=checkbox&visu=#texte
27
For a summary of this Directive, see http://europa.eu.int/comm/environment/waste/mining/.
37
has a primary intent to prevent pollution and accidents related to mine waste. The directive
specifically raises the issue of reducing the risks associated with mine wastes that are stored in
large heaps or retained by dams – particularly, the risks of serious impacts on environment
and human health and safety. Examples mentioned in the text include accidents in Aberfan
(Coal spoil dump, Wales, 1966)28, Stava (Chromite tailings, Italy, 1985), Aznalcóllar (lead-zinc
tailings, Spain, 1998), Baia Mare and Baia Borsa (gold and copper tails, Romania, 2000). Other
likely significant impacts relate to the physical footprints of waste disposal facilities and
resulting loss of land productivity, effects on ecosystems, dust and erosion.
As such, the European Union has clearly recognised and acted upon the fact that such impacts
can have lasting environmental and socio-economic consequences and may be extremely
difficult and costly to fix. The EU recognises that wastes from the extractive industries have to
be properly managed in order to ensure in particular the long-term stability of disposal
facilities and to prevent or minimise any water and soil pollution arising from acid or alkaline
drainage and leaching of heavy metals.
Moreover, and in the context of countries border to the EU, the Directive directly targets
countries such as those in Central and Eastern Europe as this text generated prior to the
adoption of the Directive indicates.
The [then] proposed Directive will help prevent serious accidents resulting from the
mismanagement of mining waste, like the disaster in Baia Mare in 2000, where the whole
of the Danube was polluted with cyanide ........ It will also minimise chronic pollution of
lakes and rivers by waste facilities that are badly operated and monitored. In short, the
proposed Directive will make management of waste from the extractive industries safer. We
are currently embarking on a historic enlargement of the EU and must ensure that the best
environmental standards are applied across Europe (European Commission 2003).
The Directive is intended to regulate the management of waste from the mining and quarrying
industries (European Commission 2003). It was held that due to the composition or volumes
involved, such waste can constitute a serious threat to the environment and human health if
not properly managed. The commission thus proposed to introduce EU-wide rules designed
to prevent water and soil pollution from long-term storage of waste in tailings ponds, waste
heaps, and so forth. The Directive is intended to ensure the stability of these waste storage
facilities to minimise possible consequences from accidents. Further, the Directive was
intended to work together with the revised Seveso II Directive on the control of major
industrial accidents, and a Best Available Techniques (BAT) document on tailings and waste
rock (Commission of the European Community: Directorate-General JRC 2004).
The final version of the Directive (Directive 2006/21/EC of the European Parliament and of
the Council) was established on 15 March 2006. It is generally know as the Directive on the
management of waste from extractive industries (or the “Mine Waste Directive”).29
This formulation of the mine waste directive and the generation of the BAT support
document were managed under the auspices of the European Integrated Pollution Prevention
and Control Bureau (http://eippcb.jrc.es/), part of the Institute for Prospective Technological
28
A coal waste dump similar to those in the Donbas.
29
The full text of the Directive is available at: http://eurlex.europa.eu/Notice.do?val=424935:cs&lang=en&list=424935:cs,470452:cs,&pos=1&page=1&nbl=2&pgs=10&hwords=Di
rective%202006/21/EC~&checktexte=checkbox&visu=#texte
38
Studies (IPTS) in Sevilla of the Joint Research Centre.30 The Best Available Techniques
reference document (BREF) describes the Best Available Techniques of waste management to
reduce everyday pollution and to prevent or mitigate accidents in the mining sector and is of
special relevance to this discussion.31 In its more than 500 pages, it addresses activities related
to tailings and waste-rock management for ores that have the potential for a significant
environmental impact. In particular, the work sought out activities that can be considered as
examples of “good practice”. The intent of the document is to raise awareness of such
practices and promote their use across all activities in this sector. It covers waste from all
sectors of the extractive industry and specifically focuses on operational issues connected with
waste management, prevention of soil and water pollution, and the stability of waste
management facilities with a particular focus on tailings ponds.
In the Directive, conditions to be attached to operating permits are detailed. These are
intended to ensure that sufficient environmental and safety measures are in place in order for
waste management facilities to receive authorization. There are requirements that waste be
classified before disposal and the method of management be chosen to suit to its particular
characteristics and ensure the long-term stability of the heaps and ponds used for permanent
storage of large amounts of waste. Another key provision is that operators of waste
management facilities should draw up closure plans as an integral component of the overall
operating plan. Proper monitoring will also be required during both the operational and the
after-care phases.
Further, the directive contains an obligation to provide for an appropriate level of financial
security to reinforce the “polluter-pays” principle. The precise wording follows [highlights
added]:
The operator of a waste facility servicing the extractive industries should be required to
lodge a financial guarantee or equivalent in accordance with procedures to be
decided by the Member States ensuring that all the obligations flowing from the permit will
be fulfilled, including those relating to the closure and after-closure of the
waste facility. The financial guarantee should be sufficient to cover the
cost of rehabilitation of the land affected by the waste facility, which
includes the waste facility itself ….. It is also necessary for such a guarantee to
be provided prior to the commencement of deposition operations in
the waste facility and to be periodically adjusted. In addition, …. it is
important to clarify that an operator of a waste facility servicing the extractive industries is
subject to appropriate liability in respect of environmental damage caused by its operations
or the imminent threat of such damage..
It is required that sufficient funds be available to leave waste sites in a satisfactory state after
closure. Provisions will be made to cover situations such as those where a company goes into
receivership, becomes insolvent or even engages in asset-stripping. As such, European
30
The IPPC-Directive (96/61/EC) has introduced a framework requiring EU member states to issue operating permits for
industrial installations performing activities as described in its Annex 1. These permits must contain conditions that are
based on Best Available Techniques (BAT), and aim at achieving a high level of protection of the environment as a whole.
Importantly in the context of this document, a key feature of the IPPC-Directive (cf. art. 16) is to stimulate an intensive
exchange of information on Best Available Techniques between the European Member States and the industries
considered. For Annex 1 activities, the European IPPC-Bureau organises this exchange of information and produces BAT
reference documents (BREFs) and Member States are required to take into account when determining permit conditions
for so called ‘Annex 1’-type installations. The Bureau carries out its work through Technical Working Groups (TWGs)
comprising nominated experts from EU Member States, EFTA Countries, industry, and environmental NGOs.
31
The report details of all BREFs are available for download at http://eippcb.jrc.es/pages/FActivities.htm
39
countries are now required to amend any existing requirements for mine reclamation and
associated financial assurance to agree with its terms.
As has been indicated, the measures in the proposal are to act as a complement to those
outlined in the Seveso II Directive 96/82/EEC on the control of major-accident hazards
involving dangerous substances. As such, they include the establishment of a major-accident
prevention policy and a safety management system. Demands regarding public information
are also included in accordance with the United Nations Convention of 25 June 1998 on
Access to Information, Public Participation in Decision-Making and Access to Justice in
Environmental Matters (Aarhus Convention) to which the EU is a signatory.
Importantly, all these measures will apply to those waste management facilities that present a
high accident risk but will not fall under the provisions of the revised Seveso II Directive.
3.4 The Equator principles32
Another potentially important development at the supra-national level is encompassed within
the Equator Principles, an initiative started by the International Finance Corporation and the
World Bank. This initiative aims at the very financing mechanisms of the industry. Project
financing plays an important role in financing development throughout the world. Further, the
financing of projects, particularly in emerging markets, is central to the rise of environmental
and social policy issues. In recognition of the fact that financiers have significant opportunities
to promote responsible environmental stewardship and socially responsible development
(International Finance Corporation 2003), the Equator Principles seek to ensure that the projects
financed by signatories are developed in a manner that are socially responsible and reflect
sound environmental management practices.
In late 2002, a small number of banks convened in London, together with the World Bank
Group’s International Finance Corporation (IFC), to discuss these issues. The Banks present
decided to jointly develop a banking industry framework for addressing environmental and
social risks in project financing. This led to the drafting of the first set of Equator Principles
that were then launched in Washington, DC in mid-2003. A subsequent updating process took
place in 2006 leading to a newly revised set of Equator Principles that were released in mid2006.33
As part of adopting the principles, financiers undertake to carefully review proposals and to
refuse loans directly to projects where the borrower will not, or are unable to, comply with the
required environmental and social policies and processes (International Finance Corporation
2003).
A large group of leading banks already support the initiative (some 61 institutions as of
September, 2008). Further, and relevant to earlier discussion of financial surety, the signatory
international banks undertake not to finance any project over US$ 10 million unless it meets
World Bank and International Finance Corporation environmental policies, standards and
32
See http://www.equator-principles.com/index.shtml .
33
The new, revised set of Equator Principles incorporate learning from implementation, and comments from a variety of
external stakeholders (including clients and NGOs) over the first 3 years since the initiative launch. The final draft of these
revised Principles also benefited from an external comment process with clients, NGOs and Official Agencies (e.g., Export
Credit Agencies). The revised Equator Principles have now incorporated, and are fully consistent with, IFC’s
environmental and social “Performance Standards” ensuring that there is one, consistent standard for private sector project
financing.
40
guidelines,34 which include a requirement for closure funding (Miller 2005 p.6 & p.17). Indeed,
the principles include a requirement for fully funding a mine’s closure plan by appropriate
instruments so that the cost of closure can be covered at any stage in the mine life, including
premature and unforeseen cessation of activities.
While the key focus of the principles was upon developing countries, the guidelines were
flagged to eventually also apply to mines in developed countries (International Finance
Corporation 2003; Miller 2005). Now under the conditions of the revised Equator Principles,
the Principles apply to all new project financings globally with total project capital costs of
US$10 million or more, and across all industry sectors. Among the principles there is a
detailed explanation of the requirements for projects located in non-OECD countries, and
those located in OECD countries not designated as High-Income, as defined by the World
Bank Development Indicators Database. The revised principles also outline the requirements
for projects located in High-Income OECD Countries (e.g., US, Canada, Western Europe,
Japan, etc). The Assessment process in all cases should address compliance with relevant host
country laws, regulations and permits that pertain to social and environmental matters.
As of the time of writing (early 2009), the Equator Principles are available at
http://www.equator-principles.com/principles.shtml.
3.5 Governance Principles for Foreign Direct Investment in
Hazardous Activities
While not of the scale and visibility of the Equator principles presented above, one of the
ENVSEC partners, the Regional Environment Center for Central and Eastern Europe has
also worked on a set of principles. Again, these seek to ensure that projects – particularly
projects in areas such as mining – financed in jurisdictions such as those in the Ukraine, are
developed in a manner that are socially responsible and reflect sound environmental
management practices.
The REC submitted Draft Governance Principles on Foreign Direct Investment in Hazardous Activities
on the occasion of the fifth Ministerial Conference “Environment for Europe” in Kiev,
Ukraine (21–23 May 2003).35 A revised and updated version of these principles was also made
available at the Cluj-Napoca conference where the ENVSEC Initiative’s Mining for Closure was
launched and was also specifically noted in the Declaration of the High-Level Panel of that
Sub-regional Conference.
The governance principles are intended to apply primarily to foreign direct investment (FDI)
in industrial, mining and other activities with particular focus upon those with significant
social and environmental impacts, especially in countries in transition, under-developed
regions and developing countries. These principles have been designed to complement
voluntary international codes of conduct, compacts and other instruments. Many of the
34
Since 1998, the World Bank has included in its “Pollution Prevention and Abatement Handbook” World Bank (1999).
Pollution prevention and abatement handbook 1998 : toward cleaner production. Washington D.C, The World Bank
Group in collaboration with the United Nations Environment Programme and the United Nations Industrial
Development Organization: 471. provisions to ensure that any project financed by the Bank or the related IFC
(International Finance Corporation) anywhere in the world includes appropriate standards of mine closure and
reclamation, including the nature and amount of financial assurance. These requirements are currently stated in general
terms. If a country does not have corresponding requirements, then the World Bank/IFC measures govern the project.
35
These activities are reported at http://www.rec.org/REC/Introduction/Kiev2003/. The draft document presented is
also available at http://www.unece.org/env/documents/2003/kievconference/inf.18.e.pdf
41
principles are relevant to the content of this work and the reader is encouraged to examine
them.36 The text for the Governance Principles is included as Appendix E.
3.6 Real or perceived financial barriers
In closing this chapter, it is felt necessary to add context to discussion of financially related
barriers to the adoption of best practice in mining practices as have been mentioned here. An
important message here is that responsible governance is central to good environmental and
social performance in mining. It has far-reaching implications for the financing of mining, and
to the distribution of economic rents from mining activities.
Within this, a number of discussion points are briefly addressed. The first area is related to the
source of mine activity financing. A second area is related to perceptions regarding the
potential yields of a development. This second area has three underlying parameters, firstly
perceptions of the yield (rents) available to a miner, secondly, perceptions regarding
distribution of the economic yield available to a host government and thirdly, economic
benefits to individuals in positions of power.
Regarding the first point, there is some room for concern that the absence of national
requirements for adequate mine closure provisions and/or integrated mine closure planning
may actually act against “more responsible” miners. Moreover, it should be noted that
international financial institutions typically require consideration of closure related issues –
even where nation states may not. Where such conditions exist, investors seeking finance
from such sources may be disadvantaged in their endeavours when compared to those
potential miners accessing alternative capital markets with more limited requirements relating
to closure funding (Nazari 1999). As such, (and particularly relevant for Ukraine) there is a
higher likelihood that miners seeking finance outside the realm inhabited by reputable
financial institutions are also those that have substandard operational practices. In such a
scenario, it appears that an absence of adequate frameworks for mine closure may actually
serve to “penalise” investors seeking financing or political risk insurance through respectable
international financial institutions. Turning this around however, raises the important
implication that sound regulation can serve to attract the types of investors that Ukraine needs
to build a basis for sustainable economic growth.
The second area introduced is focused at concerns that environmental requirements such as
those detailed within this document will reduce the economic yield of a mining operation to
the state and to the operator. Moreover, the concern may be said to be that best practices for
mining may be perceived as a barrier to investment. In particular, this is indicative of
perceptions regarding reduced profits for miners but it also recognises the possibility of
pollution haven scenarios being relevant.37 An implication here is that national environmental
requirements representative of best environmental practice in mining may result in potential (and
perhaps much needed) miners going elsewhere with their investment resources. While
empirical evidence of the validity of this scenario has not been found in the reviews
36
The updated and revised governance principles are also available at:
http://www.rec.org/REC/Programs/EnvironmentalLaw/PDF/Governance_Principles.pdf
37
Pollution havens have been described and debated by a wide range of authors such as Bommer (1999), Brunnermeier and
Levinson (2004) and Millemet &List (2004) to name but a few. The concept involves the preferential movement of an
industrial activity to nation states or regions where environmental regulations are less stringent, less well developed or
where enforcement is weak. There is significant debate whether the hypothesis regarding moves to lax regulation actually
holds.
42
conducted by the ENVSEC partners, there are clearly serious implications for countries eager
to attract private sector investment if this is the case.38
However, it is held that this issue should be considered in the light of at least three important
points. First, is that mineral resources are immovable. As such, the likelihood that a potential
developer can choose between two competing mineral resources based upon “laxity of
regulation” appears small. Second is that Government has at hand fiscal frameworks within
which they can create attractive packages for prospective mining activity. As Andrews (2002)
of the World Bank Group indicates, the taxation, royalty and/or investment subsidy offering
for mine developments made by a host government constitutes a key ingredient for such
decision making. Thirdly, and harking back to our earlier point, is that lax frameworks may
attract just the kind of industrial actors that can be detrimental to the interests of many
national stakeholders – that is, miners that do not pursue environmental and social
performance seriously.
One of the later concerns introduced, requires that the effect upon the rents available to
government must be considered. Perceptions may exist that requirements for best
environmental practice –and/or bonding will reduce the economic benefit that can be
obtained from a mineral resource. While this might be a feasible scenario in the short term, it
appears reasonable to refute this when consideration of the mine-life is taken into account.
While it is quite clear that there are additional costs involved in the conduct of best
environmental and social practice, it is the role of government to ensure an optimum yield
from mining to the country in the medium to long-term. The accrual of environmental and
social externalities (that must be paid for in a much more expensive form later) in order to
provide short-term internal gain has been conclusively shown to be a sub-optimal approach.
Further, the conduct of mining and rehabilitation according to best practice requirements has
been portrayed in many fora as the most erfficient, if not the optimal, economic outcome.
That is the investment to preventing external costs ex ante is significantly less than the costs
associated with making good environmental and/or social damage ex post.
The final point addressed here is related to corruption – in particular where individuals or
authorities in positions of power or responsibility, seek personal benefit from mining activities
or seek to oppose the implementation of the principles of good environmental practice. The
latter may be motivated for the reason that the monies available for diversion for personal
gain are reduced. In jurisdictions where good governance and the rule of law have not been
established, it is feasible that such actors may be able to act in this manner. Indeed, Stephen
Stec (personal communication: Regional Environmental Center for Central and Eastern
Europe 2005, 7 July) argues that in certain economies and especially transitional ones such as
Ukraine, the problem of underpaid and therefore corruptible officials is endemic and has an
influence on decision-making related to mining. According to Stec, the large sums of money
in mining, combined with authorities in a position to approve or influence mining projects
that are not always motivated by the public interest alone, is a serious problem.39
Such factors however, should be seen as socio-political aberrations and not an argument
against the reform of mining practices - this being the case both on the ground, and in
financial markets. The rule of law as evidenced in measures such as the control of corruption,
38
Indeed, significant evidence to the contrary was found – See in particular the citation from the Government of Ontario in
Section 3..
39
As such, unclear legal regimes are recognised to add uncertainty with respect to many aspects of “Mining for Closure”
including in particular financial assurance requirements. Special measures must be taken to ensure that financial assurance
on paper is financial assurance in reality – especially where institutions and legal frameworks are less secure.
43
respect for property rights, the elimination of bribery, and the transparent distribution of
revenues have been clearly linked to the economic success of mining nations (Andrews 2002).
44
4 Mine spoil dumps: a key closure issue in the Donbas
As an underpinning source of information for the next section of this report, a brief overview
of the environmental aspects and potential environmental impacts of mine spoil dumps is
presented in this section. This text also addresses mine infrastructure or activities co-located
with dumps, or relevant to their operation – however, this latter category is not
comprehensively addressed.
4.1 Environmental Aspects associated with coal mine spoil dumps
and adjacent mine activities/facilities
Table 4-1 below seeks to summarise environmental aspects, pollution sources, types of
pollution and potential impacts for coal mine spoil dumps. This listing is generated with the
situation of the Donbas spoil dumps in mind.
Table 4-1
Media
Air
Indicative listing of environmental issues: coal spoil dumps in the Donbas
Environmental aspect & sources
Types and/or Pathways
Potential Impacts
Dust emissions
Soil and rock derived particulates,
salts.
Contribution to respiratory disease
Contamination of land
Public nuisance
Fumes such as CO, NO2, SO2,
‘tarry’ emission products
including PAHs associated with
incomplete coal combustion
Est. 120kt/yr in the Donetsk
Oblast.
Contribution to respiratory disease in adjacent
populations
Acidification and eutrophication of waterways
Contamination and acidification of land
Increased corrosion of public infrastructure
Public nuisance
Climate change contribution
Potential Impacts
Negative health and financial effects on
downstream users and potential downstream
users.
Sources:
Spoil dumps
Operational facilities or mobile
equipment
Disturbed land
Roadways
Smoke emissions:
Sources:
Surface waters
Environmental aspect & sources
Runoff and release of contaminated waters,
leachates, drainage and pumped groundwaters.
Sources:
Groundwaters
Surface runoff from dumps
Leachates from dumps
Surface run-off from disturbed lands
and facilities
Drainage from maintenance facilities
etc.
Release of pumped groundwaters
Environmental aspect & sources
Infiltration of contaminated waters
Sources:
Soils
Spoil dumps and mine voids
Mine boilers
Surface infiltration from dumps
Leachates from dumps
Infiltration from disturbed lands and
facilities Infiltration from maintenance
facilities etc. infiltration of pumped
groundwaters from geo-chemically
different aquifers released to surface.
Environmental aspect & sources
Transfer of materials and contaminations to soils
Sources:
dumped material,
airborne dust from dumps, roadways
and coal beneficiation plants etc.,
waterborne sediments, dissolved
contaminants in runoff, leachate or
pumped waters
Types and/or Pathways
Waterborne erosion/suspended
sediment
Chemical/petrochemical
contaminants
Acid Mine Drainage (AMD)
Neutral Mine Drainage (NMD)
Heavy metals
Salinity
Dissolved or entrained coal
derived tars
Types and/or Pathways
Chemical or petrochemical
contaminants
Acid Mine Drainage (AMD)
Neutral Mine Drainage (NMD)
Heavy metals
Salinity
Dissolved PAHs., coal derived
tars etc.
Types and/or Pathways
Soil and rock derived particulates,
salts, and metallic elements or
compounds.
Organic compounds derived
from incomplete coal
combustion.
Ash
Negative effects on aquatic ecosystems
associated with effects such as: turbidity,
decreased dissolved oxygen (DO) associated
with increased biological and chemical oxygen
demand (BOD & COD), increased toxicity,
reduced pH, salinity.
Reduction in water utility (e.g. degradation from
potential human, agricultural or industrial water
resource).
Loss of waterway utility (e.g. recreation or
commercial fishing value etc.).
Increased costs for water treatment.
Potential Impacts
Negative effects on downstream users and
potential downstream users and on eventual
receiving ecosystems associated with increased
biological and chemical oxygen demand (BOD
& COD), increased toxicity, reduced pH,
salinity.
Reduction in water utility (e.g. degradation from
potential human, agricultural or industrial water
resource).
Increased costs for water treatment.
Potential Impacts
Pollution effects on soils
Suitability of surrounding soils for capping (low
permeability materials)
Suitability of surrounding soils for revegetation
45
4.2 Information requirements for creating risk profiles for spoil dumps
As has been indicated in the preceding sections, spoil dumps (waste heaps) in the Donbas are
a prime coal mining related environmental issue. Due the large number of dumps and their
relatively high degree of heterogeneity, any rational decision-making process requires
significantly more information regarding their makeup, position and disposition than currently
exists.
Table 4-2 provides an (initial) listing of key dump characteristics for spoil dumps at mines
slated for closure (or “closed”). Such information is deemed necessary to support risk
assessment, and of course eventual risk amelioration works. The table also includes details of
where or how it is anticipated that data could typically be collected.40
To support the content and information referred to in Table 4-2, a schematic is supplied as
Figure 4-1. This figure indicates potential spoil dump morphology (either as one unit, or as a
structure built of “pockets”) where materials with acid generating potential are isolated with
neutral waste.
Reveg etated a nd c ontoured c over ma te rial
(surfa ce c ap p ing and water sto rag e m ed ium )
Top non-sulp hidic wa ste laye r
Fre e
d ump ed
non -sulphid ic
wa ste
Sulp hid ic waste
Fre e
d ump ed
non -sulphid ic
wa ste
Basal la ye r
Orig ina l g ro und surfa c e
Figure 4-1
dumps
Concept diagram: planned encapsulation of acid generating mine wastes in spoil dumps/tailings
Source: Australian EPA (1995)
Well-established isolation techniques also exist for mine wastes rich in carbonaceous material
that have a high risk of combustion. Case Study 1 and Case Study 2 in Chapter 6 provide
details.
40
Note: A prime objective of the August 2008 UNEP mission was to move forward the process of centralising knowledge
regarding the true state of the spoil dumps in the region – and the scale of works/investment required to effectively
ameliorate the key risks that they pose to the environment and human health. A task required within this work, was the
determination and testing of a relatively simple dump screening and mapping exercise. A draft equipment and task
protocol is included as Appendix B: Draft field procedures field scanning survey of Donbas coalmine spoil dumps. During the mission
it was discovered that an assessment of some 10 dumps in the Makeevka area of the Donbas had been documented by a
project partner. Much of the required information was available in these reports and has been transposed in another
Russian language report generated by the Uglemash organisation in Donetsk. This material was not made available by
Uglemash to facilitate the production and completeness of this report.
46
Table 4-2
assessment
Indicative listing of information requirements and potential collection modes for spoil dump risk
Category
Item
Historical data collection
mode
Rough field data collection mode
Detail field collection mode
Footprint (circa m2)
Detail mine site maps and
operational drawings.
GPS readings at a number of points
around perimeter.
Detail survey (traditional theodolite
based).
Detail survey GPS equipment.
Satellite imagery
Aerial surveys (including utilisation of
stereographic pairs, generation of
digital terrain models (DTM) and
orthophotos, LIDAR survey, etc)
As above
As above
Dump physical
parameters
Estimation from examination of aerial
photographs or web-based
satellite/aerial photograph sites.
Shape (conical, pyramid, etc.)
Side slope/natural angle of repose
Detail mine site maps etc.
As above
Visual inspection/photography
Inclinometer measurement
Hand held GPS
Shadow measurement
Hand held GPS
Calculation from above
Height (m)
As above
Volume (circa m3)
Physical stability (evidence of
slumping, slides, etc.)
As above + mine records of total
production and % waste material,
volume of development drives in
rock etc.
Mine records and interview of
present/former employees.
Nature of reshaping works
Nature of encapsulation layers
As above
As above
Erosion status
n/a
Scalloping/terracing etc.
Topsoil/covering /water storage
medium
Vegetation types
n/a
Mine records and interview of
present/former employees.
Mine revegetation records
Proportion of vegetation cover
Propensity for dust generation
n/a
Mine dust monitoring records.
Burning/not burning
Mine records and interview of
present/former employees.
Mine records and interview of
present/former employees.
Visual inspection and interview of
present/former employees.
Hand held infrared camera during
winter season
Detail infrared camera investigation
Remote sensing
Mine records and research
institute studies
n/a
Geotechnical and thermal survey
n/a
Sulphur content of coals
Mine records and interview of
present/former employees.
Mine coal specifications
Salinity of coals
Mine coal specifications
n/a
Prevalence of acid generating
minerals (e.g. pyrite)
Acid generation potential of rocks
(according to test procedures such
ABA)41
Acidity profile with depth (e.g. 01500mm)
Prevalence of neutral (non
acid/non saline) waste rock
suitable for capping/encapsulation
Prevalence of non acid/non saline
rocks
suitable
for
crushed
aggregates production
Time passed since deposition of
surface materials/exposure of
surface layers.
Mine records and interview of
present/former employees.
Mine records or scientific
studies of mine wastes
n/a
Geotechnical investigation and dump
assay
Geotechnical investigation and dump
assay
Geotechnical investigation and dump
assay
Geotechnical investigation and dump
assay
Geotechnical investigation, dump
assay and detail laboratory studies
Mine records or scientific
institutes studying mine wastes
Mine records or scientific
institutes studying mine wastes
n/a
Scientific studies of mine wastes
n/a
Geotechnical investigation, dump
assay and detail laboratory studies
Mine records and interview of
present/former employees.
n/a
n/a
Recoverable
coal
(%
&
distribution)
Availability
of
building
aggregate/road base, etc. (% &
distribution)
Presence of economic minerals
Other materials with market values
(e.g. ceramic clays)
Scientific studies of mine wastes
n/a
As part of geotech above.
As above
n/a
As above.
As above
As above
n/a
n/a
As above.
As above.
As above
As above
Visual inspection and interview of
present/former employees.
Geotechnical investigation
As above.
Hand augering, backhoe excavation,
etc.
Visual inspection and interview of
present/former employees.
As above
As above
n/a
Geotechnical investigation
Visual inspection and interview of
present/former employees.
Visual inspection
Visual inspection and interview of
present/former employees.
Detail botanical survey
n/a
n/a
Geotechnical investigation
Detail botanical survey
Dust monitoring and speciation, wind
rose measurements etc.
Dump thermal
characteristics
Evidence of hotspots (e.g. lack of
vegetation, thermal footprints,
etc.)
Temperature gradient into dump
Chemical/composition
etc.
Coal content
n/a
n/a
n/a
Surface layer sampling programme
and laboratory tests
Geotechnical investigation, dump
assay and detail laboratory studies
Potential for economic
value
n/a = not applicable.
41
See Appendix A.
47
5 Prioritising risks
5.1 Workplace risk and control
An important tool utilised for quantifying risk in the mining industry is the so-called
Workplace Risk and Control or WRAC method. This technique requires a team of key
personnel that can work through the operations of a mine process, the use of a piece of
equipment, or a mining activity, in order to generate a number of possible hazards or events
associated with it. Using the WRAC approach then allows a quantification of the relative
likelihood (or probability) of an event occurring and the potential consequences of such an
event. Teams working with such techniques usually consist of mine site personnel familiar with
the process/equipment, as well as external participants, including a facilitator (Laurence 2006).
A prime reason for quantification of risk is to facilitate the process of prioritising risks. This in
turn provides decision-makers with information that can support their decisions to eliminate
control or tolerate the risks. Risks are typically calculated in a risk matrix such as that shown in
Figure 5-1.
Figure 5-1
Calculation of risk using the risk matrix (after Thompson, 1999)
Laurence (2006) shows how this approach can also be followed when dealing with the issues
surrounding mine closure. The risks identified within the various broad closure issues to be
compared and combined to enable an overall (relative) Closure Risk Factor (CRF) for a
particular mine site to be estimated. This can be achieved by quantifying the probability and
consequence of each potential event identified for each category at each site. It is held here,
that these approaches (or other equivalent applications) have great relevance for the future
work that is required for mine closure in the Donbas. As can be seen from the table produced
in the previous report section, such analysis can be performed at any mine operation level. At
one extreme it can be sought to prioritise between mines slated for closure, at another level
such an approach can be applied to a specific issue – with the prioritisation of activities on
mine spoil dumps being a prime example.
Unlike the typical WRAC matrix, in which the highest probability and consequences are
usually allocated the smallest numbers, in the model presented here, the higher the probability
49
or consequence, the higher the number. Here the following scoring system would be applied
for each potential event identified for the issue under analysis ((Laurence 2006)):

if an event has a probability of 10, then, the event would certainly occur unless timely
interventions are applied;

if an event is judged to have a probability of 1, it is unlikely to occur;

if the consequence of an event is 10, then the outcome could be catastrophic in the
form of a multiple fatality, a major environmental incident, major equipment damage, a
major loss to the business, or a ruined community standing;

If a consequence of 1 is awarded, there it is considered that there is an insignificant
chance of injury, or a health implication, environmental damage or ongoing liability to
the business.
In the Laurence model shown here, a Risk Matrix following Thompson (1999)42 is applied.
Figure 5-2
Mine Closure Risk Assessment Matrix (Laurence 2006)
5.2 A closure risk example – Uranium Mine
An example of the use of the model as applied to a Uranium mine by Laurence (2006) is
supplied in
Figure 5-3. Here both the applicability but the significant difference in context from the
Donbas can be seen. For each event, the analyst has assigned a risk for each event in the
manner that a team of key personnel would when analysing potential events (at say a mine
spoil dump that is considered for remediation). The marked difference here however, is that
the example shown is essentially ex ante – that is, closure risks are being assessed prior to
mining. The application of closure risk analysis in the Donbas is different – there, a large
number of sites require some form of closure activity, the analysis must be used to help decide
which of the many sites should be made safe first – and why.
Returning to the Uranium mine example, it can be seen that Laurence has shown that in a
similar manner to environmental and occupational health and safety risk management,
42
Thompson SD. Risk assessment for mines. In: Proceedings of the Queensland mining industry health and safety conference;
1999.
50
individual closure risks can also be classified or prioritised. In the case study provided, the
highest risks and their scores are commented – in addition, a hypothetical parallel that could be
relevant in the Donbas is provided in order to provide some concrete relevance to the
challenges addressed by this report:

environment – aesthetics due to the mine being surrounded by a world heritage
national park (100) [a hypothetical parallel in the Donbas might be a site that significantly degrades
the appearance of a large park and wetlands near an urban centre];

land use – need to rehabilitate to the standards of the surrounding environmentally
sensitive wetlands (100) [a hypothetical parallel in the Donbas could involve location immediately
adjacent to both a wetlands and a valuable source of drinking water for an urban population];

community – hostility to both operation and closure of mine by indigenous landowners
(100) [a hypothetical parallel in the Donbas could be a site where mine gas explosions have damaged
buildings including schools and killed a number of local residents – resulting in a situation where the
community acceptance of residual risks from that particular site has been greatly reduced];

financial – adequate provisioning for the cost of rehabilitating to these standards (90) [a
hypothetical parallel in the Donbas would be where much higher provisions would be required for this
particular site than for other “technically equivalent” sites due to the issues above].
The uranium mine example provided is held by the analyst (Laurence 2006) to fall in the
category of a very high to extreme risk because of the numerous environmental, community
and legal issues identified. A world heritage listed national park surrounds the mine, there is
considerable indigenous and general community opposition to operations, and the commodity
being mined is uranium. While the context of this hypothetical example is markedly different
in the Donbas, it is considered that this approach is directly applicable for commencing the
process of prioritising among the many different mine closure challenges AND for
determining those actions that may need to be conducted over and above the existing
requirements.
51
Figure 5-3
Example of an application of the Closure Risk Model in an Australian mine (Laurence 2006)
52
6 Good practice case studies
This section provides seven case studies in order to place the terms best practice or “good
practice” used in this document in a clearer context. Despite the fact that the works outlined
have taken place in a different set of climates to that found in the Donbas. Each of them has
a number of learning points that are valid in some way for the context of the coal mining
areas of Ukraine. These cases were generated by the Australian Government within the
auspices of a programme involving extensive collaboration with UNEP.
An excellent starting point with such material is the introductory booklet produced
collaboratively between UNEP and the Commonwealth of Australia in 2002: Overview of
Best Practice Environmental Management in Mining.43 This introduction is currently
available
at
the
UNEP
managed
web
site
http://www.naturalresources.org/minerals/cd/ea_overv.htm.
The purpose of the series of booklets, a training kit and checklists is to build the
environmental management capacity of industry and regulators. In their own words, the
publishers of these works describe the initiative as follows:
The Sustainable Minerals programme (previously known as the Best Practice
Environmental Management in Mining programme) is a world-renowned partnership
between the mining industry, stakeholder organisations and the Australian Government. It
aims to help all sectors of the minerals industry (minerals, coal, oil and gas) to protect the
environment and to reduce the impact of minerals production.
Since the programme began in 1994, Environment Australia has worked with industry
partners to produce 23 booklets on a range of topics, from community consultation to water
management and cleaner production. The booklets present concise, practical information
on how to achieve environmental management best practice in the minerals industry
anywhere in the world.
The seven (7) case studies in this chapter come from the booklet: Landform Design for
Rehabilitation, published by Environment Australia in 1998. The aforementioned series is
currently available via the UNEP managed web site:
http://www.natural-resources.org/minerals/cd/ea.htm
where one links forward to the
web page:
http://www.natural-resources.org/minerals/cd/ea.htm#Booklets
The chapter of the booklet from which these cases are taken is found at http://www.naturalresources.org/minerals/cd/docs/ea/booklets/landform/Case_Studies.pdf
43
Publication number 9 in the series: Best Practice Environmental Management in Mining series, Commonwealth of Australia and UNEP,
August 2002, ISBN 0 642 48797.
53
6.1 Case Study 1: Recognition, prevention and management of self
heating in coal mine spoil
Mine: Drayton Coal Mine, New South Wales, Shell Coal Pty Ltd
The Drayton Coal Mine operated by Shell Coal Pty Ltd is located southeast of Muswellbrook
in the Hunter Valley of New South Wales.
In open cut coal mining, large volumes of coal and carbonaceous material are exposed to
oxygen in air. Once exposed, the materials oxidise and liberate heat. If the heat is not
dissipated sufficiently rapidly, the temperature rises. This drives the oxidation and heat
generation process at a faster rate and if unchecked, spontaneous combustion may result.
The consequences of spontaneous combustion in spoil piles may be significant. For example,
open fires and smouldering combustion can give rise to emissions (including considerable
quantities of toxic fumes) such as carbon monoxide, carbon dioxide, nitrogen dioxide and
sulphur dioxide, as well as the ‘tarry’ emission products associated with incomplete coal
combustion. Further consequences arise from the danger of fire spreading to surrounding land,
the destabilisation of the landform with possible subsidence, landslides and the death of
vegetation in the vicinity of the “hot” spoil.
Final landform design provides the fundamental solution in preventing self heating in coal
mine spoil. Planning spoil dumps and the ongoing management of spoil prevents outbreaks of
spontaneous combustion.
Figure 6-1
Final rehabilitation cover coalmine spoil dump
PHOTO SHELL COAL Pty Ltd
Final rehabilitation showing effective grass cover to
stabilise slope and minimise erosion. A series of diversion banks assist runoff control.
Best Practice Principles
54

Define all fuel sources, ensuring the correct placement of carbonaceous materials.

Minimise the quantity of fuel (carbonaceous materials) going to spoil.

Reduce oxygen pathways in spoil piles.

Avoid dumping carbonaceous or hot materials over dump batters.

Prevention is better than cure
6.1.1 Best Methods for Control
Self-heating management practices for dragline and truck-shovel operations follow. Truck
dumping practices which can be effective in prevention of self-heating include:

controlled placement of carbonaceous overburden and partings within inert “pockets”;

limiting lift height to 15 m maximum;

covering all final surfaces with a 5 m layer of inert material;

compacting final surfaces, as well as intermediate surfaces wherever possible;

spreading out and track rolling carbonaceous material to prevent heat build-up and
oxygen ingress;

sealing hot spoil with a cover of clay is an effective technique to control heating,
however long term seal integrity then becomes an important issue;

measures that reduce the development of gully erosion such as drainage backs, drop
structures and prompt revegetation may be required.
For this to succeed, careful planning, execution and commitment to seal maintenance over
many years are keys to successfully reducing soil temperatures below acceptable levels (below
70°C).
Grouting with inert material such as flyash may be an alternate technique for fire control. The
object is to exclude air from the fire by filling the voids between the spoil particles. The
advantage of this over sealing is that it creates an insitu barrier to air transport rather than a
potentially unstable surface barrier. This has been trialled and although successful to date, the
final outcome was not yet conclusive at the time of case study generation.
6.1.2 Guiding management and fire control principles

Close oxygen pathways into spoil piles by surface capping or bulk void reduction.

Maintenance of surface seals.

If it is not possible or practical to seal an area, spreading out the material will prevent
heat build-up.

Promote cooling by encouraging rainwater ponding.

Early intervention is the key to preventing longer-term problems.
55
Figure 6-2
Reshaping dumps – coalmine spoil
PHOTO SHELL COAL Pty Ltd: Drayton Coal Mine, SE of Muswellbrook NSW. Reshaping
dump levels using dozers. Slopes are restricted to 10° but not exceeding 14°.
6.2 Case Study 2: Top Soil Grafting Averts Self Heating
Mine: Leigh Creek, South Australia, Operated by Optima Energy
The Leigh Creek Coalfield has been one of the largest open-cut operations in Australia.
Located 550 km north of Adelaide in the Northern Flinders Ranges, the site covers a total area
of 70 sq km.
Owned and operated by SA Generation Corporation, trading as Optima Energy, it has
produced 2.6 to 2.8 million tonnes per annum of sub-bituminous hard brown coal to fuel the
Northern Power Station (NPS), supplying 40% of the State’s electricity. In April 1998, the
South Australian Government announced its intention to sell the site.
Lobe B was the largest of five basins in the site, with up to 1500 m of predominantly fine
grained mudstones and siltstones. The coal reserve occurred in three isolated coal horizons
referred to stratigraphically as the lower, main and upper series. Initial estimates indicated a
resource of more 520 million tonnes. Leigh Creek coals are low rank (Lionite A to Sub
bituminous C).
Site operators sought to control self heating in spoil at Leigh Creek, by compacting the final
surface and the placing freshly stripped topsoil over the compacted material. Observations
indicate this has prevented self-heating. Topsoil was stripped from areas to be mined and
placed immediately over the compacted overburden material. This “top soil grafting” method
has also led to very early natural regeneration of suitable native plants.
Providing the surface runoff water is prevented from causing fresh erosion, a thin layer of—
only about 50 cm—has provided good results. Operators believe the key to successfully
preventing self heating has been the integrated planning of spoil placement, water management
and revegetation.
Unlike other areas of Australia, where 5 m layers of inert material might be available in dealing
with self heating problems, arid inland areas of Australia often do not have such quantities of
inert materials. In this instance, it has been shown that a well established vegetation of suitable
native plants can use up most of the moisture in the soil and can prevent self heating of the
sub-strata.
56
Figure 6-3
Spoil heaps prior to rehabilitation
PHOTO: OPTIMA ENERGY.
It is essential that every fire is reported early and that fires are controlled as soon as possible,
preferably that day. Good fire reporting procedures needed to be explained and understood by
all employees. Every case of self heating on site was recorded.
The use of infra red cameras can also provide early discovery of potential “hot spots” and can
help prioritise works designed to prevent self heating.
Well-planned, progressively implemented revegetation of overburden dumps during landform
design will prevent most spontaneous combustion of those dumps. In most cases, progressive
reshaping of slopes and revegetation also helps. A primary consideration is that this work is
more economic, as it prevents costly and highly disruptive “fire fighting”.
The principal advantages of the methods used were:

a major reduction in overburden removal costs due to significantly reduced haul cycle
times;

the ability to optimise the mining envelope based on average as opposed to
incremental stripping ratios;

a more consistent level of output over the site’s economic life, and

a more efficient and environmentally sensitive rehabilitation program.
The key to successful post-mining land use was sustainability. Several end land uses were
proposed for Lobe B, the main one being a native flora and fauna reserve. Key components of
this initiative were:
57
Figure 6-4
Dragline adjusting dump slopes and cover with topsoil
PHOTO: OPTIMA ENERGY.

Creating sustainable water bodies and wildlife habitats; controlling feral predators and
competitors, including grazing animals; introducing native and endangered flora and
flora;

minimising visual impact by blending the overburden dumps with the surrounding
landscape;

limiting surface dumps by maximising in-pit dumping; controlling off site impacts, such
as surface water run-off and dust and sustainability through an alternatively generated
revenue.

Using old dragline to adjust slope and cover with topsoil.
Figure 6-5
Vegetation establishment on spoil dump
PHOTO: OPTIMA ENERGY - Vegetation becomes established on reshaped slopes (topsoil
cover with dragline).
58
6.3 Case Study 3: Progressive revegetation and water body protection
Mine: Bow River, Western Australia operated by Normandy Mining Ltd
The Bow River diamond mine is located 90 km south of Kununurra in the Kimberley region
of Western Australia. The operation - mining of alluvial diamonds - commenced in 1988 and is
currently under care and maintenance. The mine is situated on the floodplain of Limestone
Creek, a tributary of the Bow River, which joins the Ord River and flows into Lake Argyle, the
largest man-made water body in Australia.
Mining of alluvial diamonds involved the extraction of diamond bearing gravels from ancient
creek beds that had become covered by new deposits.
Prior to mining, the land use for the area was pastoral cattle grazing and the aim of
rehabilitation was to return the land to the former land use. The mining method used involved
the removal of overburden, (the overlying soils and gravels) to extract the diamond bearing
gravels. As the mining was conducted in a series of pits, overburden was used to progressively
back-fill and shape the mined out pits. Topsoil that was removed in front of the advancing pit,
was then placed directly on the reshaped overburden, eliminating the need to stockpile and
store topsoil. Seeding of rehabilitated areas was undertaken using a combination of grasses,
shrubs and tree species.
The main environmental concern at Bow River was to ensure that the water quality in Lake
Argyle was not affected by the mining operations. Water management was therefore, an
important consideration to prevent sediment entering the Lake. To ensure that the mining
operation was not a source of sediment, rehabilitation of mined areas involved the shaping of
pits to enable all storm water to be collected internally in the pits. As a result of this strategy,
the final landform consists of a number of depressions that fill with water during the wet
season.
In addition to the rehabilitation of completed pits, mining was also undertaken through a
section of Beefwood Creek, an ephemeral creek. About 530m of the creek was disturbed to
enable mining. Following the completion of mining, the creek was rehabilitated to similar
dimensions and levels prior to mining. In areas where the original sides of the creek bank were
steep, rehabilitation involved reducing the angle of the slope and increasing the width of the
creek to reduce the flow velocities of the water. Armouring of the slopes with sorted gravels
was also undertaken to prevent erosion. The area was revegetated with trees similar to those
that originally occurred in the area, such as the Boab (Adansonia gregorii), Bauhinia
(Lysiphylum cunninghamii), and Wild Plum (Terminalia platyphylla).
The diamondiferous gravel was transported by haul truck to the treatment plant where the
diamonds were separated by scrubbing and screening.
The finer material was discharged to a tailings storage facility and the coarser materials
conveyed to the oversize stockpile. The tailings did not contain any reagents and vegetation
has naturally colonised the surface. The tailings storage facility was constructed from the
oversize material and built in a series of lifts. Placing topsoil and seeding with grass, shrub and
tree species has revegetated the berm of each of these lifts.
The oversize stockpile is approximately 30 m high, with the upper 15 m battered to an angle of
20° (32%). A 5 m wide berm has been constructed at the base of the battered upper slope and
the remaining (lower) 15 m remains at the angle of repose. The highly porous nature of this
material has made revegetation difficult. Soil was placed on the surface of the dump and the
59
area has revegetated with grasses and shrubs while the outer slopes have been left to vegetate
naturally.
Monitoring of revegetated areas has been undertaken over the last seven years to determine the
success of rehabilitation. Permanent monitoring points have been established and each year
data are collected on ground cover, plant height, and species richness. This information has
indicated that the rehabilitated areas compare favourably with areas that were not mined.
The creation of the undulating landform has also provided a habitat for many species of
wildlife, especially birds that frequent the water holes. During the period of operation of the
mine, from 1988 until 1996, approximately 1120 hectares were mined, with all areas now being
rehabilitated. The final landform has achieved its objective of preventing sediment entering
Lake Argyle, while also providing suitable grazing for cattle as well as habitat for wildlife. Low
intensity grazing of the rehabilitated areas has been undertaken, however it is not planned to
allow grazing on mined areas until vegetation is well established.
Figure 6-6
Mine pits reshaped to capture site run-off
PHOTO NORMANDY MINING LIMITED - Bow River, 90 km south of Kunanurra,
Western Australia.
6.4 Case Study 4: Basin Listing—An Alternative To Contour Ripping
Mine: Gregory Coal Mine, Central Queensland, BHP Australia Coal
In the Bowen Basin coalfields north-west of Rockhampton, Central Queensland, the regraded
mine spoil has traditionally been ripped on the contour to create a suitable microtopography
and seed bed for vegetation.
The usual practice is to deep rip the spoil (at least 0.3 m to 1.0 m or more) on the contour.
This creates a microtopography which limits erosion of the spoil and creates a rough seed bed
to help germination and vegetation growth. To ensure erosion is minimised, it is critical to
maintain the ripping strictly on the contour. Any deviation off the contour tends to initiate
erosion.
Where topsoil is returned to the regraded spoil, the deep contour ripping also ensures the
topsoil is “keyed” into the spoil. This means topsoil is less likely to erode or slip en masse off
the surface of the regraded spoil. Gregory Mine near Emerald has developed an innovative
system called “basin listing”. It creates a microtopography similar to an agricultural basin listing
used to break up hard setting clay soil surfaces.
60
This innovation uses reciprocating tynes rather than offset discs to create the scalloped surface.
A set of three hydraulically controlled tynes was constructed to lift and rip alternately. As one
tyne rips, the other two are lifted, then as the two rip the third lifts with the hydraulic system
controlling the alternation of rip and lift.
Figure 6-7
View over rehabilitated mine land
PHOTO BHP AUSTRALIA COAL: BHP Australia Coal, Gregory Mine, 60 km north east of
Emerald, Queensland. Rehabilitation of mine spoil in foreground with strip mining in
background.
The tynes in the final machine are flat-faced, rather than the traditional narrow-face. This
emphasises the scalloping action and creates a patterned microtopography.
Basin listing achieves the same outcomes as deep ripping, creating an erosion-limiting spoil or
soil surface and a seed bed. However, as the ripping is not continuous, it is not essential that
ripping is strictly on the contour. Further, as the basins tend to overlap across the slope, the
potential for causing erosion is limited should a basin overflow.
Basin listing achieves the same result in terms of keying topsoil into regraded spoil.
Consequently, mass erosion or slipping of topsoil is minimised.
The basins or scallops tend to retain water after rainfall much better than rip lines. Therefore,
the basin listed reclamation creates a microenvironment which aids seedling germination and
establishment better than traditional ripping.
Basin listing has proved very successful in finishing mined area rehabilitation. It minimises
erosion initiation compared to traditional ripping.
6.5 Case Study 5:
Innovative revegetation methods
Mine: Nabarlek Mine, Northern Territory Supervising Scientist Group, Environment Australia
The Nabarlek uranium mine operated from 1970 until 1989 by Queensland Mines Pty Ltd.
Rehabilitation was carried out in the dry season of 1995.
Several features of the Nabarlek story are unique and offer interesting approaches for possible
consideration in other mine rehabilitation programs.
61
The Nabarlek ore body was mined in a single 143-day campaign during the dry season of 1979.
Ore was stockpiled on a specially prepared site while the mill was constructed. The ore was
processed over the subsequent 10 year period.
Topsoil from the mine and mill construction was placed in a stockpile and allowed to stand
until required in the final rehabilitation. Tailings from the milling operation were returned
directly to the mined out pit. The waste rock was placed to the south of the site and planted
with an exotic grass species to provide erosion control.
During the mine planning process, the final decommissioning and rehabilitation program was
developed as a series of specific component plans including an ‘earthmoving and revegetation
document’. Throughout the life of the mine, these components were reviewed at intervals and
updated to take account of changes in mine development as well as incorporating the results of
site-specific research and new technology.
During preparation for final decommissioning, the site topsoil dump was investigated. It was
found that due to its 14 years in store, the material was of little value to the rehabilitation
process. The soil had lost much of its micro flora and faunal populations; it had been leached
of nutrients and had become a source of weed seeds. Few viable propagules of potentially
“useful” plants had survived. The topsoil was used in the rehabilitation work but not as a final
cover as this would have spread undesirable weeds across the site.
The waste rock dump had been untended during the life of the mine and had become well
vegetated with a wide range of native species of trees and shrubs. This material was selected
for the final cover for reshaped and rehabilitated landforms.
The rehabilitation objective, as agreed with the traditional owners and the supervising
authorities, was to establish a landscape that matched the surrounding areas as closely as
possible and would permit traditional hunting and gathering activities to be pursued.
The earthmoving plan placed all mine wastes in the mined out pit together with scrap metal
etc. This was then covered with a layer of waste rock up to 15 metres thick and the final
landform left as a mound over the pit to allow for subsidence and to still provide a water
shedding cover. The original cover design was of great importance as it was required to act as a
barrier to radon gas and to contain the tailings and radioactive waste for thousands of years.
A contractor carried out earthmoving for the final landform shaping during the dry season of
1995. Apart from demolishing earthworks, including substantial pond walls, the work also
required the land surface over most of the site to be returned to approximately its original
contours. The ponds were filled in and the waste rock was spread and incorporated the
degraded topsoil lower down the soil profile.
One concern while completing the rehabilitation earthworks was the amount of compaction
caused over the site as a result of the constant passage of trucks and other mobile plant. At the
end of earthmoving, a large bulldozer fitted with a winged deep ripping tyne was used to rip
the whole site to loosen the surface and provide improved conditions for seed germination.
During this operation some oversize rocks were brought to the surface.
These were collected into piles and spread randomly across the site to provide refuges for
small animals and reptiles that were anticipated would re-colonise the site.
62
The final domed cover over the pit was designed following research and shaped to provide
shorter runoff paths and so reduce runoff water velocities. A single, low, central ridge was
established to facilitate these shorter flow paths (Riley 1994; Riley 1995).
Seeding was carried out at the end of earthmoving, immediately before the onset of the
monsoonal rains of the 1995—96 wet season. Previous work on site had shown that this was
likely to be the most successful revegetation approach. Trials involving tubed tree stock were
shown to be generally less successful.
The rehabilitation of the site is progressing well and continued monitoring is in place to
establish when the site can be returned to the traditional owners.
PHOTOS: from ENVIRONMENT AUSTRALIA
Figure 6-8
Site prior to rehabilitation
Progress with rehabilitating Nabarlek mine site: Aerial view (top) of the mine site in February
1992 before work started and in February 1996 (centre) following decommissioning
earthworks, including the waste rock dump (mid picture) then the mine pit and beyond it the
evaporation ponds. Refer to diagram. Bottom photo shows ground view of vegetation growth
on former pit in July 1996.
Figure 6-9
Site 3-4 years after rehabilitation works commenced
63
Figure 6-10 Vegetation growth on former pit
Figure 6-11 General layout of operation at Nabarlek
Figure 6-12 Nabarlek: as designed (after Riley Figure 6-13 Nabarlek: as constructed showing final
landform (after Riley 1994)
1994)
64
6.6 Case Study 6: Mine scheduling and Computer aided techniques
for mine rehabilitation
Mine: Ravensworth Mine, New South Wales operated by Peabody Resources Pty Ltd
Large scale open cut coal mining began at Ravensworth in 1972. Located 20 km northwest of
Singleton in the Upper Hunter Valley, New South Wales, the coal produced is transferred via
conveyor to the adjacent Bayswater and Liddell power stations.
Ravensworth Mines produces 6 Mtpa of product coal, equal to almost 30% of the coal
required for power generation in NSW.
The mining method involves a combination of prestrip and dragline operations to remove
overburden which uncovers coal and partings for extraction.
Eight coal seams are mined which range in thickness from 0.3m to 8m, and up to 120m below
the natural surface.
The overburden removed by the draglines is deposited into the void of the previous cut. The
coal is removed progressively as the seams are exposed with 13m electric shovels, 15m front
end loaders and a fleet of 109 tonne capacity rear dump trucks.
At Ravensworth, Peabody Resources has recognised that mining is an interim land use and
mine rehabilitation is therefore an integral component of the mining process.
Computer aided design provides an opportunity for substantial savings, quicker site planning
and redesign.
Figure 6-14 CAD mine design operator
PHOTO: Peabody Resources
Rehabilitation of disturbed land is carefully planned and implemented. This process starts well
in advance of active mining, with pre-mining land capability and suitability assessment, and soil
and drainage density surveys. Also prior to mining, a geological model is produced using
computer software after an exploration drilling program is completed.
65
This model enables engineering staff to determine the coal resource in any one mining area.
Mine resources and strip layouts are determined based on the geological model and block data
is transferred into XPAC, a mine scheduling software package. Among other things, for each
mining block, XPAC calculates strip quantities to move to uncover predetermined coal
reserves.
Ravensworth is overflown and photographed annually to generate a digital terrain model
(DTM) and orthophotos. Orthophotos create maps using aerial photos. These are used to
compare actual rehabilitation profiles to those planned and allow for further overburden dump
planning to conform with final rehabilitation profiles. The DTM is used with a third software
package, CivilCad, to generate working plans.
CivilCAD computes the quantities of cut and fill required to meet final rehabilitation landform
design criteria. The preferred final landform design is then adjusted to suit available prestrip
and to optimise the amount of reshaping required by bulldozer.
The CivilCAD model is then transferred to AutoCAD, 1:2000 scale working plans. The plans
guide appropriate survey control and earthworks.
Supervisory staff use these plans when they oversee the strategic placement of prestrip material
and any required dozer reshaping operation.
All landform design parameters have to meet specified slope gradients and slope length and
drainage density criteria, and typically are consistent with adjacent natural landforms.
This landform design technique is a semi-automated system, purpose developed at
Ravensworth using commercially available software packages.
The system has enabled the company to reduce its rehabilitation costs by maintaining a
constant awareness of the required post mining landform.
Placement of pre-strip material has been optimised, which has reduced the need to re-handle
spoil materials and has also cut down on dozer time required for final reshaping.
6.7 Case study 7:
Rehabilitation
Computer Assisted Design for Mine
Mine: Kambalda, Western Australia, operated by WMC Resources Ltd
This case study outlines the assistance provided by computer aided design for waste rock and
overburden handling and rehabilitation at WMC’s gold and nickel operations at Kambalda, 50
km south of Kalgoorlie in the Eastern Goldfields.
Historically, waste rock dumps at Kambalda’s underground nickel mines were flat topped,
composed of fresh rock, rarely exceeded 10 ha in area and generally did not extend above the
surrounding tree tops. Topsoil recovery was not practiced. In contrast, the later waste rock and
overburden dumps from the gold operations covered six times the area, were substantially
higher and contained a greater percentage of oxidized material.
In total, waste rock dumps at Kambalda cover an area of more than 800 ha of which more
than 70% are in advanced stages of rehabilitation. The objectives for rehabilitation at
Kambalda require that post mining landforms are: safe, stable, non-polluting, suitable for the
66
proposed end land use, compatible in appearance with surrounding landforms, revegetated
with a mix of local species representative of similar habitats and are self sustaining.
Waste dumps in the Goldfields were typically left as flat-topped mesas with the side slopes
usually around the angle of repose (37 to 38°). Many mines still practice top dumping of waste
rock followed by slope reprofiling at the completion of mining. WMC investigated the use of
the SURPAC, or other mine survey packages, to aid waste dump design by treating the dump
as an inverted open pit. Improved computer aided planning capability supported realistic
opportunities to trial progressive rehabilitation of waste rock dumps.
Further investigations resulted in the following steps to produce the required waste dump
profiles for pre-mining waste dump planning:
Feasibility Phase—obtain aerial photography, digitize available contour information and map
the vegetation, drainage and terrain types/units within the proposed dump area onto the
topographic base and generate original surface cross-sections and contour overlays
Volume Measurement Phase—calculate the total waste volume from the mine planning data
ensuring to account for the swell factor. Undertake a site visit to select visual and
geotechnically sound crest and toe contour positions and drainage requirements.
Final Design Phase—generate dump contours with the available waste to “fill in” the
existing landform profile, noting the optimal locations for special features such as slope drains,
silt traps, haul roads and placement sites for rock wastes containing deleterious materials.
Produce 3D mine schematics to display pre and planned post mining landforms for mine
personnel use.
67
Figure 6-15 An example of computer aided design used to give a three dimensional model of a proposed mine
site
Further advances of computer software have resulted in an in-house package called
SURDUMP. This program is used to assist with designing existing waste dumps that require
re-profiling. This package, a two directional block stacking routine, reshapes existing dumps to
nominated slope gradients and toe positions. Several commercially available mine design
packages now offer similar modelling tools.
The final step in the process is for a surveyor to peg the modelled dump contour positions in
advance of the waste rock dumping. Properly coordinated topsoil panel stripping can take
place in front of the waste dumping and be progressively placed on completed sections of the
dump. In addition to avoiding double handling of topsoil, stored seed and topsoil viability is
little affected, resulting in reduced seeding costs and enhanced rehabilitation success.
This approach was applied to the modelling of the 132 North nickel deposit. In addition to the
traditional mine planning activities (i.e. pit optimization, volume calculations) pre-mine
modelling of biophysical inputs including catchment, infiltration and erosion potential
assessment, soil quality and availability and visual amenity. The dumping strategy employed
was to:
68

Maintain upslope remnant vegetation stands where possible to enhance natural
recolonisation and seed dispersal.

drape the waste rock over a shallow valley and reconstruct drainage lines

strip vegetation and topsoil along the contour in panels and dump waste rock to
nominated final crest and toe positions progressively uplift topsoil/vegetation from
strips in front of the advancing dump and complete upslope rehabilitation to final
grade with fresh soil.

identify the larger drainage lines and leave these intact with a 20 meter greenbelt buffer
zone to the final dump toe.

Achieve drainage and downstream siltation control using a single long slope rock drain
that:
o was linked to contour rip lines;
o was constructed with a dozer such that it formed a series of small siltation
ponds before entering existing drainage.
Rehabilitation of the 132 North site was completed in September 1992. An assessment of the
rehabilitation success was undertaken in December 1997 as part of the CSIRO44 Minesite
Rehabilitation Research Program—Indicators of Ecosystem Rehabilitation Success. This program utilized
Land Form Analysis and a series of indicators to provide an overall assessment of ecosystem
rehabilitation success. While monitoring is ongoing, the results to date suggest the rehabilitated
site is approaching values similar to those observed in the control site.
The 132 North results show an integrated mine planning approach is capable of removing
much of the guesswork associated with dump planning, selective placement of materials,
reprofiling costs and area of disturbance calculations. Modelling techniques which pay close
attention to reconstructing natural features can help achieve improved rehabilitation.
A waste dump that eventually blends in with the surrounding landform is consistent with the
view that mining is only an interim use of the land, not an end use. By cutting out guesswork,
better end uses and efficiencies (during mining) are achievable.
44
Commonwealth Science and Idustrial Research Organisation
69
7 Concluding discussion and recommendations
This report provides a mapping of a number of issues relevant for mine closure in the coal
mining regions of Ukraine. It addresses mine spoil dumps in the Donbas as a particular
example – and as a pressing issue for that part of the country. Moreover, a structured approach
has been presented in which risks related to mining, and risks related to the closure of mines,
can be evaluated and prioritised.
This final chapter provides the chief findings from this study. They are derived from a
combination of the theoretical considerations presented in text, items of best practice
introduced from the international mining sphere, and from field observations from the
ENVSEC work in the Donbas. Most of the issues taken up in this closing section present
themselves as notable risk factors within the content of Chapter 2, Classification of risks where
many field observations are tabulated.
Moreover, the discussion here will provide some recommendations regarding ongoing work
required in the region. In this regard, it was indicated at the outset of this report that the study
would provide guidance for ongoing work that could be carried out by National partners in
areas such as:
a) adaptation and application of relevant concepts of mining best practice to the
Ukrainian context;
b) adaptation and application of best practice mine closure planning processes to the
Ukrainian context;
c) examination of the completeness and reflection of “best practice” in Ukrainian closure
legislation;
d) examining the effectiveness of how the existing legislation has been implemented;
e) generating proposals for improvement of the some policy measures (e.g. to the
Ministry of coal and eventually to the Ukrainian parliament).
7.1 Recapitulation
This report has established that the coal mining industry in Ukraine remains in a challenged
status – if not crisis. Moreover, many important environmental and social problems in the
Donetsk region are due to the effects of mining or the cessation of mining. This text has also
presented a number of examples of best environmental and social practice in mine planning
and closure and it is clear that there is a very large discrepancy between Ukrainian practice and
such examples. The report has also highlighted that better management of closure related risks
is clearly feasible. Examples have also been provided of the growth of public and institutional
expectations of mining organisations all around the world, and the role of planning for mine
closure in meeting such expectations.
The items presented here however, are only a part of the solution. No panacea is immediately
available that can solve the accumulated problems of over 100 years of large-scale mining
activity. Not least due to this reality, much of this study has been focused on only mine spoil
dumps. While these are but a portion of the challenge of mine closure in the area, they are very
visible and significant items. Prior to presenting those issues that the ENVSEC project has
found most pressing in the region, a short recap of the report’s content and its relevance is
provided.
70
7.1.1 A structured classification of closure risks
The central part of this report has focused upon six different categories of risk that are relevant
to mining and mine closure. The items addressed include environmental risks, health and
safety risks, community and social risks, final land use risks, legal and financial risks and
technical risks. Due to factors such as the nature of the ENVSEC initiative itself (where
environment is a key parameter), and due to the high environmental profile of spoil heaps in
the Ukraine, the major focus of field visits and data collection has also been upon matters of
environment. Examples have been provided for each of the six categories of risk as they apply
for the coal mines in the Donbas. Such analysis provides a foundation for the identification of
pressing issues surrounding mine closure – and the manner in which they relate back to risk.
It is held here that such tools have great relevance. An abundance of risk concerns has been
drawn from the research work that underpins this report. This indicates that a) there are many
matters of concern, and b) that the structured approach followed is effective in the manner in
which it can direct the search for information, and the prioritization of data and issues.
Examination was also made here of the environmental aspects and potential environmental
impacts of mine dumps and infrastructure. This also encompasses activities co-located with
dumps or relevant to their operation. As part of this work, the report presents an indicative
listing of information requirements and potential information collection modes for spoil dump
risk assessment (Chapter 4) and simple methods for the process of prioritising risks (Chapter
5). Pursuant to the observations during the ENVSEC missions to the Donbas, it is considered
that the categories recommended are indeed valid for application in the region. Moreover, it
was found that much important data, or many of the parameters listed within such categories
are difficult to obtain or missing.
Moreover, in the light of the large number of activities involved in assessing the risk profiles of
mines and the broad nature of some issues, it is considered that such risk prioritisation
methods are vital. Attention must be focused on those issues most critical for risk amelioration
associated with closure activities.
7.1.2 Good practice case studies
All around the mining world there are examples of good and bad mine closure. This report
showcases only a very small sample of these. However, the report’s suite of seven case studies
captures clearly many of the issues that need to be dealt with in improved ways. They also
point to the fact that there is a wealth of new practice and thinking out in the broader mining
world that can be drawn upon by mining organisations in the Donbas.
In the area of mine closure and spoil dumps these cases address a number of areas where
practice in the Donbas is markedly different. Among other things, these include:

Scheduled landform placement and revegetation during mining operations;

Dump structuring and spoil management to prevent dump fires;

The formation of safe post-operational landform structures, and

Cost-effective micro-topography creation and revegetation strategies.
One key item vital for Ukrainian practice not included in the cases provided is that of dump
beneficiation. While a case of coal recovery is documented in Appendix C, there remains scope
for extension of this material in a number of areas. These could include the areas of coal,
minerals and aggregate recovery – and examples of land recovery and sale.
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7.2 Key items for closure and closure risk consideration
The items listed in this section take the form of general comments with some limited
recommendations. This, as much of the work involved in this ENVSEC project has been
exploratory in nature. As such, the project has not involved detail site investigations; or
assessment of technologies, legislative texts, funding mechanisms, care-and-maintenance costs,
rehabilitation costs and so forth. Moreover, the work has generally been limited to coal spoil
dumps. Therefore, it is a challenge to maintain a holistic view of coal mining and mine closure
risks. It is recognized that many more issues than just spoil dumps affect such risks. It is logical
however, that Ukrainian mining stakeholders perform such work in the future and that such
works be considered and included within broader schemes of action. One example of such
broader schemes is the upcoming European Union “Coal Sector Policy Support Programme”.
This €10 million scheme is to commence soon in Ukraine.
As a result, this section generally avoids pointed recommendations directed towards specific
sites, specific pieces of legislation or specific actors. While items listed here may certainly
require further examination and verification, the majority of these issues were raised by
multiple sources. That is to say, highlighted and discussed by several mission informants from
different organizations (thus triangulated) during the conduct of data collection for this report.
7.2.1
Liability and ownership issues
A clear signal and theme taken from this study is that a lack of adequate legislative structures
for the sale of mine lands, mine spoil dumps etc. is a significant barrier to progress regarding
the rehabilitation of mine lands. It is also a barrier to the extraction of value from mine wastes.
This barrier relates to both the potential for extraction of value from the materials and the
potential value of the land itself for alternative uses once a dump is removed, or made safe.
Informants indicated that while the Ukraine does have a “law on environmental audit”45 that
to some extent addresses accountability for risks associated with changes in industrial land use,
the transfer or sale of mine lands is difficult. Pointedly, there is no legal framework for a “trade
in dumps”. From the viewpoints of land sellers, buyers and the public, clear delineation of
liability for risks is clearly important.
Moreover, examples were provided of dumps that apparently have no specified legal owner,
and of (generally old) dumps where land ownership has been passed to local authorities
pursuant to cessation of mining activities. As a notable example in this regard, the local
municipality reportedly owns a burning dump adjacent to the “Snezhnyanskaya #1” coal
recovery operation in Snezhnoye. At the time of the visit, it remained unclear as to whether the
rights to extract the coal from this dump could be obtained by the operation. It was indicated
that it was possible that coal recovery operations would cease and the plant be removed
without removal of this dump unless transfer could be negotiated.
As such, while this challenge has not been researched in detail, it appears that improvement of
legal frameworks for liability and site ownership are vital to the process of reducing mine
related risks in the region.
45
One informant in this regard being Victor Yermakov (former representative of the Ministry of Coal), interviewed 4 August
2008 in Kiev.
72
7.2.2
Extracting value from spoil dumps
It is universally held that opportunities to extract value from mine legacies (in this instance
spoil heaps) is generally a desirable and sensible strategy. Informants discuss four dominant
approaches or combined approaches in this regard:

recovery of coal for sale to power stations or for value adding into coal briquettes for
private sale;

extraction of aggregates for the building industry, for road building, or for fill;

processing for the recovery of rare earth elements, germanium, aluminium rich
minerals, and iron ore;

dump removal or reshaping so that land is suitable for alternative uses and/or can be
sold.
While the above items are held to be of great interest and promise by many informants, limited
progress appears to have been achieved on the ground in any of these areas. As has been
indicated, only one formal large scale coal recovery operation exists in the region. The
abundance of low tech informal operations for coal recovery however, indicates that there is
potential for more dumps to be rehabilitated in this manner. Similarly, the recovery of
aggregates does appear feasible. It is reported that the ring-road around Donetsk was built with
dump materials recovered from peri-urban areas (albeit, problems with road durability,
presumably due to poor aggregate quality, were also referred to).
Challenges to progress in the above areas are generally indicated to relate to lack of finance;
lack of examples to follow; inexperience with technologies and markets, and problems with
legislative structures as discussed in Section 7.2.1. To this can be added that no informants to
the ENVSEC work mentioned incentive schemes from the side of government put in place to
stimulate or support such activities.
Pursuit of such opportunities as pathways to risk amerlioration – perhaps in the form of
demonstration projects – appears to be desirable for the region. This may be an item that can
be included in demonstration works within the aforementioned European Union “Coal Sector
Policy Support Programme.
7.2.3 Site security and informal coal-related activities
Site security and informal mining activities carried out on mining leases are undoubtedly a
problem in the region – especially when viewed from a risk perspective. Presently, it appears
that mine leases are treated more like open access public resource by the public. However, it is
possible that there are opportunities that can be leveraged if informal activities could be
regulated in such a way that they can enter the formal economy and meet acceptable
environmental health and safety requirements. Informal activities witnessed or mentioned
during the ENVSEC missions include:
small scale mining – a large number of “illegal” mines are operated in the region.
However, the authorities apparently tolerate these as conduct of operations is open;46
46
Discussions with mining sector informants, and an interview with a former “informal mine foreman” indicate that such
operations usually produce 1 or more 100s of tonnes/week, are adit operations exploiting near surface seams, employ circa
5-15 men, utilise compressed air hand hammers, and are conducted in breathing equipment without forced ventilation
systems.
73
informal coal recovery operations – a significant number of coal recovery operations
applying simple mobile recovery plants on coal rich spoil dumps.
In the risk assessment and prioritisation context of this document a number of issues are
considered relevant.
Unlicensed and informal mining activities – these small scale mining operations are
apparently conducted with a minimum or primitive consideration of health and safety
standards. As such they pose a risk to the miners that engage in them. Moreover,
worked out areas are highly likely to constitute risks (gas leakage, subsidence, void
hazard etc.) for future (or present) land users or owners. It is also presumably very
unclear how liability for accidents or damage, or environmental problems associated
with these operations, would be managed. As formal records are not kept of
operations, these difficulties will compound as time passes.
Unlicensed and informal coal recovery operations – again, these operations are
apparently conducted with limited consideration of health and safety standards. In this
case however, inspection of operations during the ENVSEC mission of 2008, indicate
that these are unlikely to be particularly hazardous. Nuisance in the form of dust, noise
and heavy goods traffic is evident however. As with informal mining, liability concerns
also clearly exist albeit of an apparently lesser degree.
On the other side of this issue is the value that these activities yield. They provide employment
and economic benefit to those that engage in them. It is also logical that these benefits pass on
to the communities where earnings from the operations are spent. Indeed, anecdotal evidence
indicates that unlicensed mining operations pay considerably higher wages than are awarded by
state operations. Moreover, they contribute to National coal production thus reducing the net
production/import deficit. Dump reprocessing is also contributing to the removal of dumps
that take up land and have potential to burn – in itself a form of rehabilitation.
In this light, it appears that examination of possibilities to bring such activities into the formal
economy is worthy of attention. At the very least, such efforts would need to encompass
guidelines or regulation for site access and licensing, safety and environmental considerations,
taxation or royalties, and requirements for some forms of site restitution.
7.2.4 Revegetation and dump rehabilitation
The missions to the Donbas region have observed that the existing planning and goals for site
(environmental) rehabilitation and risk reduction are inadequate. Moreover, the methods
designs and methods utilised appear to differ markedly from those applied in leading mining
nations and also appear to yield markedly inferior results.
In this regard it is considered that new approaches have an important role to play in Ukraine.
A logical starting point for such work is to find areas where current practices can be
strengthened by tried and proven techniques from elsewhere.
It is deemed that initial topics to be addressed should include, but not be limited to: landform
management, dump reshaping, dump fire prevention techniques, fire management techniques,
management of acidic and saline wastes, topsoil management, soil amendment, water
management, revegetation techniques and final land use considerations.
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7.2.5 Information on mining objects
Critical to achievement of improvement in all of the areas mentioned above, is access to up-todate knowledge on mining objects. Such information is relevant to mine closure, mine risk and
mining operations. In this light, discussions regarding the application of Geographical
Information System (GIS) tools have been undertaken with project partners in the Donbas –
and are considered to be very important by the ENVSEC team. As such discussion is ongoing,
information is only addressed in general terms here.
Effective application of GIS will be invaluable in the management of such information. At
present very considerable data does exist – however, it is widely spread and only limited
quantities are available in digital form. Moreover, as this study has revealed, there are many
types of information that simply have not been collected or where even the capacity to collect
them is limited.
The issue of collecting and centralising information will doubtless be a huge task, but this
research indicates that it must be started and given priority if progress is to be made effectively
on risk amelioration. Not only are there hundreds of mines – each with their own records (as
well as centrally held versions), there are dozens of institutions that have supported the mining
industry over the past half century or even longer. Such institutions have conducted significant
amounts of work relevant to the topic taken up by this report. Some have studied dump
beneficiation, others fire management, others ground deformation, and others water recovery
and reuse – and so on. It was clearly observed in the missions however, that knowledge of
such work and access to results is quite limited.
Due to the large number of sites and objects that have significant environmental aspects – a
key task for data managers will be the prioritisation of risks. The content of Chapters 4 and 5
in this report seek to provide details of how such processes may be started.
Moreover, and very strongly linked to previous items mentioned in this summary, is the issue
of ownership and liability. Such information is vital for the support of all mine closure and risk
reduction work, and as such it must be a key component of any data management system.
7.3 Closing remarks and general recommendations
These closing comments address the points delineated at the start of Chapter 7. These
comments are general recommendations – it has not been sought to provide detail content
within these items.
1.
Adaptation and application of relevant concepts of mining best practice
and best practice mine closure-planning processes to the Ukrainian context
This report has clearly established a large gap between practices applied in Ukraine and
those applied in countries deemed to have “best practice”. However, it is doubtful that
practice can simply be transposed. Many of the technical conditions and most of the
socio-economic conditions in Ukraine do not have direct parallels elsewhere. This
study concludes that there is a clear need to conduct work to both adapt and apply best
practices for the Ukraine.
Further, it seems logical that external parties with extensive experience of such
practices abroad should participate with Ukrainian actors in the pursuit of better
practice for mining and mine closure.
75
2.
Examination of the completeness and reflection of “best practice” in
Ukrainian closure legislation AND the effectiveness of how the existing
legislation has been implemented
This work has found very strong indications that Ukrainian practice and legal
frameworks do not support best practice. It appears that work is required to analyse
national regulations in the light of practices elsewhere and delineate those items that
are addressed and those that are not – and where principal weaknesses lie. Legislation
surrounding transfer of site ownership and liability appears to be one critical area for
initial examination.
Moreover, the work conducted within this project has indicated that implementation of
existing rules and a regulation is not taking place as prescribed. Examination of
enforcement in areas where health, safety or environmental risks are high, also appears
worthy of immediate attention.
3.
Generating proposals for improvement of the some policy measures
A number of areas where proposals for policy improvement appear relevant have been
identified within this study (e.g. clear delineation of ownership of sites, clarification of
transfer and/or sharing of liability, examination of financial assurance/bonding
schemes for new mining operations, examination of liability for hazardous “historical
sites”, etc.). However, it is considered premature to pursue such work at this juncture.
Work on the two items listed above will need to precede such action – or at least be
advanced to some degree before sufficient delineation of policy weaknesses is
achieved.
In closing this report, it is reiterated that many important risk concerns were found in this
work. However, it was also found that the structured approaches to risk documentation and
analysis can help prioritize work on reduction of such risks.
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Glossary of mining terms
For the context of this report, the following definitions are provided for general mining and
minerals sector related terminology:
Acid Deposition
The falling of acids and acid-forming compounds from the atmosphere
to the Earth’s surface. Acid deposition is commonly known as acid rain, a term that refers only
to wet deposition of droplets of acids and acid-forming compounds. Acid deposition includes
the fallout of dry acid-forming compounds.
Acid Drainage
Also referred to as Acid Mine Drainage (AMD) or Acid Rock Drainage
(ARD). Acid drainage arises from the rapid oxidation of sulphide minerals and often occurs
when such minerals are exposed to the atmosphere by excavation from the earth’s crust.
Incident rainfall or surface water is acidified when acid-forming compounds dissolve. Effects
include acid drainage from waste rock stockpiles and tailings, development of acid conditions
in exposed surface materials, increased solubility and or release of metals, and increased salinity
or solute loads in waters.
Acidic Water Referring to water with a pH below 7 but generally referring to pH values of 4
and below. As such, any water solution where the concentration of hydrogen ions (H+) is
greater than the concentration of hydroxide ions (OH-).
Aquifer
Porous, water-saturated layers of sand, gravel, or bed rock that can yield an
economically significant amount of water.
Backfill
Material used to fill areas in underground mines made void by the extraction of
ore. This material generally comprises coarse sand, rock and cement.
Beneficiation The process of separation of an ore mineral from the waste mineral material.
Bioavailability
A measure of the availability (number of available pathways for
exposure) for toxic substances (such as certain metallic compounds) to contact and affect
humans, fauna or flora.
Biodiversity Variety of different species (species diversity), genetic variability among
individuals within each species (genetic diversity), and variety of ecosystems (ecological
diversity).
BOD Biological Oxygen Demand Amount of dissolved oxygen needed by aerobic
decomposers to break down the organic material in a given volume of water at a certain
temperature over a specified time period.
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Carbon Dioxide (CO2)
A colourless, odourless, tasteless gas, approximately 1.5
times the density of air. The basis for plant respiration. Liberated when vegetable matter rots,
burns and when oil and gas are burnt. Bound when plants grow.
Chlorofluorocarbons (CFCs)
Abbreviation for various chemical compounds
containing chlorine, fluorine and carbon. CFCs are produced in industrial processes, contribute
to ozone layer depletion and are green house gases in the lower levels of the atmosphere.
COD, Chemical Oxygen Demand
An indicator of the potential environmental impact of
effluents to water. The COD is a laboratory measure of the quantity of oxygen required to
oxidise the constituents of a liquid effluent. The lower the COD, the lower the potential for
reduction in the concentration of dissolved oxygen in the receiving water.
Concentrate - Concentrate is the product of ore treatment and contains metal at a higher
concentration than the source ore. In metallurgical processes for the production of nickel and
copper, concentrate is smelted to produce a metallic compound suitable for further refining.
Cuttings
Earth and rock removed during a drilling operation to make an exploration
hole. Cuttings are invariably contaminated with oil from drilling fluids (oil based and other
muds).
Discharge
This is used as a general term for all releases of contaminants into the
environment, be they gas, liquid, or solid, or a combination thereof. The term “emission is
used exclusively for releases in the atmosphere, “effluent” is restricted to releases into surface
waters and “waste” is used for remaining releases, such as disposal to landfill or treatment by
incineration. A contaminant is a compound which is present in the environment in
concentrations higher than the background level, but not necessarily causing a negative impact.
Environmental Audit A programme to evaluate compliance with regulations, systems,
programs and policies
Environmental Compliance When an organization is in strict compliance with an
environmental law(s), regulation, or other regulatory condition imposed on an operation via a
licence, approval, consent, environmental impact assessment or other regulatory process.
Fauna Animal life characteristic of a particular region or environment.
Flora Plant life characteristic of a specific geographic region or environment.
Greenhouse Effect Warming of the lower level of the atmosphere (troposphere) as a result
of heat radiating from the ground being absorbed by global warming gases.
78
Greenhouse Gases Or climate change gases, contributing to the global warming effect
(carbon dioxide, methane, CFCs, ozone, dinitrogen oxide).
Groundwater All water present below the ground surface. Groundwater fills the voids
between soil or rock particles. Groundwater is replenished by surface water infiltration.
Hazardous Material A material, which as a result of its physical, chemical or other
properties, poses a hazard to human health or the environment when it is improperly handled,
used treated, stored, disposed of, or otherwise managed.
Hazardous Waste
Any solid, liquid, or containerised gas that can catch fire easily, is
corrosive to skin tissue of metals, is unstable and can explode or release toxic fumes, or has
harmful concentrations of one or more toxic material that can leach out.
Incident
An unplanned event of chain of events which has, or could have caused injury
or illness and/or damage to the environment, third parties or company assets.
Matte Such as nickel matte, a metallic nickel sulphide, containing approximately 75% metal.
The material produced by smelting a metal concentrate.
Methane (CH4)
A global warming gas produced by anaerobic decay of organic material.
The main component in natural gas. Is often held within coal seams. Conventionally not
included in the category of gases called volatile organic compounds.
Mineral (Mineral resource) Concentration of naturally occurring solid, liquid, or gaseous
material, in or on Earth’s crust, in such form and amount that its extraction and conversion
into useful materials or items is currently or potentially profitable. Mineral resources are
classified as metallic, or non-metallic.
Neutral drainage A term generally referring to neutral Fe-rich water and subsequent
precipitates. Acidic drainage is a common result from the exposure of sulphur containing coal
and sulphide-bearing rocks. Acidic drainage is (generally) characterized by yellow, ferric
hydroxide precipitates that drop out downstream from discharge points. However, similar
precipitates also form naturally in places where Fe-bearing, anoxic (ground) waters discharge
into streams. In these circum-neutral settings, the precipitates have red and red-orange hues.
Nitrous Oxides (NOx ) - A general term for nitrogen oxide gases. These are generally
produced by combustion processes and can contribute to the formation of smog and
acidification effects.
Non-compliance
Environmental non-compliance means to be out of strict compliance
with an environmental law, regulation, or other regulatory condition imposed on an operation
via a licence, approval, consent, environmental impact assessment or other regulatory process.
79
Ore
Part of a metal yielding material that can be economically and legally extracted.
An ore typically contains two parts: the ore mineral, which contains the desired metal, and the
waste mineral material (gangue).
Overburden Soil and weathered rock which is excavated and removed to reach underlying
ore.
Ozone A reactive form of oxygen. Ozone plays an important role both at ground level and in
the upper atmosphere. In the upper atmosphere it acts as a filter for ultraviolet radiation but is
destroyed by halogenated hydrocarbons (halons and CFCs). At ground level it is produced by
reactions with VOCs and NOx and is a constituent of photochemical smog, it is an irritant,
can cause breathing difficulties, and can retard the growth of plants.
Ozone Layer Ozone formed in the upper atmosphere (stratosphere) under the effects of
solar radiation. This layer absorbs much of the harmful ultraviolet radiation and prevents it
from reaching the earth’s surface.
Particulates
Fine solid particles which remain individually dispersed in air.
Paste
Paste refers to dewatered tailings with little or no water bleed that are nonsegregating in nature.The advantages of paste backfill over hydraulic fill include reductions in
binder consumption, slimes handling, stope preparation and surface disposal together with
productivity improvements associated with an increased mining cycle.
Perfluorinated Carbon Compounds (PFCs)
Also known as perfluorocarbons. Global
warming gases contributed (principally) by aluminium smelting. The principal PFCs are CF4
and C2F6 , their global warming potential is 6300 and 12500 CO2 equivalents respectively.
While relatively small volumes are produced, a very significant environmental effect ensues.
PFCs are produced during anode effects (AEs), perturbations of current flow at the anode in
reduction cells.
Petrochemicals
Chemicals obtained by refining crude oil. Used as raw materials in the
manufcture of most industrial chemicals, fertilisers, pesticides, plastics, synthetic fibres, paints
medicine and many other products.
Recycling
Extraction and recovery of valuable materials from scrap or used products.
Rehabilitation
Treatment of disturbed areas ultimately leading to stable, vegetated land
forms consistent with the previous landforms or an acceptable alternative use.
Risk – and related terms.
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Risk
A description of the likelihood of the harm becoming actual.
Importantly, risk is (at least) two-dimensional and consideration of risks must
encompass items such as the consequences of an event or set of circumstances and
the likelihood of particular consequences being realised. Exposure pathways – that
is, the manner in which people, property, or the biophysical, social, or cultural
environment are exposed to a source of potential harm or a situation with a
potential for harm are important is important when considering the likelihood of
harm.
Harm
Any damage to people, property, or the biophysical, social, or cultural
environment.
Likelihood
A qualitative term covering both probability and frequency. The
use of this term can avoid problems caused by using frequency of defined events
and probability of specific outcomes interchangeably. Exposure pathways – that is,
the manner in which people, property, or the biophysical, social, or cultural
environment are exposed to a source of potential harm or a situation with a
potential for harm are important is important when considering the likelihood of
harm.
Hazard
A source of potential harm or a situation with a potential for
harm, thus a potential cause of harm.
Consequence(s) The intermediate or final outcome(s) of an event or situation.
Consequence is a term that contains elements of the social as well as biophysical
world thus system response factors such as stakeholder reactions (e.g. outrage) to
an event or situations are highly relevant here.
Spoil dump An accumulation of mine waste, often located adjacent to a mine shaft or adit,
where waste rock or poor quality ore is discarded after excavation.
Spontaneous combustion Particularly relevant to coal mining waste – where coal and
carbonaceous material are exposed to oxygen in air the materials oxidise and liberate heat. If
the heat is not dissipated rapidly enough, the temperature rises. This drives oxidation and the
heat generation process at a faster rate and if not controlled, spontaneous combustion can
result.
Sulphuric Acid (H2SO4)
Acid commonly used in industry for the refining of metals,
solvent extraction of uranium and in the manufacture of chemicals and fertiliser.
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Sulphur Dioxide (SO2)
air quality problems.
A gas that contributes to climate effects, acidification and other
Salinization The accumulation of salts in soil that can eventually make the soil unable to
support plant growth.
Salinity
Amount of various salts dissolved in a given volume of water.
Surplus Rock or Waste Rock
Rock that must be extracted to reach economic ore but
does not contain significant commercial mineralization.
Tailings
Residue from metallurgical processing, mainly comprising finely ground rock.
Tailings may contain process chemical residues.
Tailings Retention System Holding areas for process wastes (tailings), also referred to as
Tailings Storage Facilities, Tailings Dams, and Process Waste Storage Facilities.
Topsoil
The upper layer of soil which supports plant growth. Generally the layer
containing nutrients, organic matter and seeds.
Toxic Chemical
A chemical compound that is fatal to humans in low doses, or fatal to
over 50% of test animals at stated concentrations.
Toxicity
Measure of how harmful a substance is.
Units k = kilo (thousands - 103) as in kilogram (kg); G = giga (billions - 109) as in gigajoule
(GJ); M = mega (millions - 106) as in megajoule (MJ); T = tera (one million million or 1012) as
in terajoule (TJ); ppm = parts per million; ppb = parts per billion.
VOCs Volatile Organic Compounds. Organic compounds (i.e. compounds of carbon) which
evaporate at normal ambient temperatures. In addition to hydrocarbons (i.e. compounds of
carbon and hydrogen) VOCs include oxygenated compounds and compounds containing
sulphur and halogens. Methane (CH4) is treated separately by convention. VOCs contribute to
the formation of ground level ozone through reaction with NOx and sunlight. VOCs can
include toxics such as benzene and 1,3-butadiene.
Waste Rock see Surplus Rock
Water Table Upper surface of the zone of saturation, in which all available pores in the soil
ands rock in the sub-surface are filled with water. Also called the phreatic surface.
82
Appendix A – Acid Base Accounting references
Chris Mills
(http://technology.infomine.com/enviromine/ard/AcidBase%20Accounting/ABAdiscussion.htm)
indicates that: Acid-Base accounting (ABA) is a screening procedure whereby the acid-neutralizing
potential (assets) and acid-generating potential (liabilities) of rock samples are determined, and the difference,
net neutralizing potential (equity), is calculated. The net neutralizing potential, and/or the ratio of
neutralizing potential to acid-generation potential, is compared with a predetermined value, or set of values, to
divide samples into categories that either require, or do not require, further determinative acid potential
generation testwork. Just as different methods of accounting (e.g. cash or accrual basis) will present different
sets of books to an auditor, so different methods of conducting ABA testwork will generate different sets of
sample data for evaluation. Rules and guidelines have been developed by mine regulatory and permitting
agencies for ABA procedures that may be likened to the rules and guidelines of financial accounting. See:
Price, W.A. and Errington, J.C. (1995), ARD Guidelines for Mine Sites in British Columbia,
BC Ministry of Energy, Mines and Petroleum Resources, Victoria, 29p.; Steffen, Robertson
and Kirsten (B.C.) Inc. and B.C. Research and Development (1992), Guidelines for ARD
Prediction in the North, Department of Indian Affairs and Northern Development, Ottawa;
Miller, R.A. (1995), Mine Rock Characterization Guideline, Montana Department of
Environmental Quality, Helena, MT; Brady, K.B., Perry, E.F., Beam, R.L., Bisko, D.C.,
Gardner, M.D. and Tarantino, J.M. (1994), Evaluation of Acid-Base Accounting to Predict
the Quality of Drainage at Surface Coal Mines in Pennsylvania, USA, Proc. International
Land Reclamation and Mine Drainage Conference and 3rd International Conference on the
Abatement of Acidic Drainage, Pittsburgh, PA; USBM SP 06A-94, v1, p138-146.
83
Appendix B: Draft field procedures field scanning survey
of Donbas coalmine spoil dumps
This site appraisal support document is simply intended to provide a input for a “first pass” – “on
the ground” initial delineation of the general form, appearance and make-up of dumps. This
document is intended to follow and cross-reference with the content provided for “rough field data
collection mode” in Table 4-2
Indicative listing of information requirements and potential collection
modes for spoil dump risk assessment on page 47 of this report. The documentation of such
information can support planning for detail investigations when site owners decide that these are
required. Such decisions can only be made pursuant to an initial prioritisation of dumps (i.e.
potentially high risk dumps) for further assessment, and prioritisation of closure related activities in
general).
Note 1: As is indicated in Table 4-2, access to mine records or the possibility of obtaining
anecdotal information from (former) site personnel should be considered as an important
and prioritised form of data collection for a number of the issues listed in this brief protocol.
Note 2: for the scope of works and equipment list provided here, it has been assumed that
no soil or water samples will be taken for laboratory analysis. Similarly, no samples will be
taken for more detail assessment of factors such as Acid/Base accounting (as described in
Appendix A).
Inspection equipment checklist
Existing drawings or detail maps of mine site and spoil dump;
Available aerial photographs of site;
Hand-held GPS device (accuracy +/- 5 to 15metres);
Compass;
Weather resistant PDA or small laptops, notepads etc., for field note taking;
Water salinity/turbidity measurement device and/or dissolved oxygen, pH etc.
meter and/or,
litmus paper for pH testing [where possibilities exist for the sampling of surface
water or water from groundwater wells or mine pumping stations];
Digital camera;
Inclinometer or other simple tool for measuring slope angles;
Hand-auger or screw post-hole digger (optional);47
Geological hammer;
Depth probe for groundwater monitoring wells [where access to groundwater wells
or flooded shafts is possible],
Small water extraction pump for sampling from groundwater wells
(optional) Infra-red camera (for cold season heat profiling of dumps)
In a preliminary investigation, investigators should visit a site and perform tasks such as:
1. Photograph surroundings and dump from major compass points N, S, E, West.
2. Record location and altitude with GPS on (say) 4-6 “corners” of the dump at the bottom
and 4-6 corners at the top.
3. Measure typical slope angles at each bottom corner (most likely dumps will be formed at the
natural angle of repose for the materials dumped there).
47
in hard ground it may be necessary to source an industrial size battery driven hammer drill with a 1 meter long screw drill
84
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
Record positions of waterways, surrounding residences, roads, buildings, factories etc.
Record positions of shaft headgear, capped shafts etc.
Record evidence of power locations, underground pipes etc. that may be known.
Record 10 to 20 observations of material type, consistency and condition on the dumps (say
at each GPS location).
Measure turbidity, salinity and pH of waters lying on or around the dumps
If monitoring wells exist, take readings from sample of water at site and record water level.
Take GPS locations of any boreholes or monitoring wells at the site.
Gather any mine data on the quality of the waters being pumped from the site or from any
boreholes at the site.
Make observations of erosion evidence, signs of dump instability, evidence of dust on trees,
surrounding buildings etc. etc.
Question any nearby neighbours regarding blown dust problems or fires (smoke) from the
dump.
On any “smoking dumps” measure dump temperature at a depth of circa 1 metre in 5-10
positions adjacent to eventual “hot spots” (auger or drill to 1 metre).
Record observations of the type and quality of vegetation on the dump.
Record observations of dump surface modification for rainwater capture etc. (scalloping,
terracing, etc.).
Sketch the form of the dump or rank according to a range of standard dump morphologies.
Record details of major slope changes or dump remodelling.
Record evidence of whether dump has been stabilised (e.g. by removing the top).
Record general cross section of any deep trenches that have been dug in the dump.
Record evidence of contour ripping or other dump modification to create microtopography
for revegetation.
Perform standard estimate calculations regarding dump volume.
Obtain production figures from the mine operation to cross check likely dump volumes.
etc.
Note: the list above should be developed and modified according to the onsite realities in order to
yield a standard dump checklist that suits the context of the Donbas spoil dumps.
85
Appendix C: Draft Report from Ukrainian partner
organisation: UGLEMASH
DRAFT REPORT
2008
GENERATED BY UGLEMASH TECHNICAL STOCK, JULY
Spoil Dumps Risk Assessment at the Closing
Mines of the Donetsk Oblast
Development for GRID-Arendal Mission
Donetsk
2008
86
TABLE OF CONTENTS
1.
INTRODUCTION
2.
CURRENT SITUATION
3.
NATURE PROTECTION MEASURES (REHABILITATION)
2.1
MINING STAGE
2.2
BIOLOGICAL STAGE
3
USAGE OF ADJACENT STRATA OF THE SPOIL DUMPS
3.1
RECOVERY OF ALUMINUM, ALUMINUM CONTAINING COMPOUNDS
AND RARE EARTH ELEMENTS.
3.2
COAL RECOVERY
3.3
CONSTRUCTION MATERIAL OR RAW MATERIALS FOR CONSTRUCTION
MATERIAL PRODUCTION
4.
CONCLUSION
INTRODUCTION
At the moment, in Ukraine about 150 thousand hectares of fertile land are occupied by the spoil
dumps. Moreover, this figure increases every year. According to the technology used about 1500
m3 of adjacent stratum is dumped at the surface per every 1000 tons of coal mined. Apart from
land amortization, waste dumps drastically change the natural landscape and pollute air, water,
soil and water sources as the result of water and wind erosion, self-ignition processes..
There are several types of dumps according to the technology of waste rock dump formation:
conic (terricone), ridge shaped and flat-topped dumps. The dumps receive the waste rock from a
single mine, washhouse or a group of coal mine companies. The most adverse environmental
effect is caused by the conic and ridge shaped dumps, which can reach 110-120 meters in height.
According to the temperature gradient the dumps are divided into burning and non-burning. The
burning dump is the dump with at least one burning spot (regardless of its territory) with the
temperature of waste rock more than 80 degrees Centigrade of waste rock at the depth up to 2,5
and meters. The gases emitted by the burning spoil dumps significantly change the topsoil and
vegetation cover, flora and fauna, productivity of forests and agricultural lands of the adjacent
areas.
The experience proves, that 7-12 years after the operation has ceased, the burning spoil dumps
become non-burning. However, the factual state of each dump can be determined and stated on
the basis of necessary survey carried out by the specialized organizations.
Heavy metals concentration in the air around the spoil dumps is different for various coalmining
regions and depends on the concentration of such compounds in coal seams, physical and
chemical properties of waste rock stockpiled on the surface. Technology of mining works and
spoil dumps shaping combined with the natural and climatic conditions have a very strong impact
on the formation of rocky soil substrate of dumps, which according to their physical and chemical
properties can differ significantly from the adjacent stratum. Air quality criteria under the waste
dump plume is the correlation between the factual concentration of pollutants to the maximum
permissible concentration (MPC), determined by the statutory documents in force.
87
Spoil dump run-off causes migration of chemical compounds, therefore the residual composition
of trace substances in the upper layer of the dump is generally homogeneous and include the
following constituents: copper, zinc, nickel, cobalt, manganese and lead. Quantitative
concentration of the abovementioned substances may vary significantly depending on the mining
areas. High concentration of manganese and beryllium compounds in the upper layers of the
spoils dumps of Eastern Donbass should be specially mentioned. The run-off gets into the ground
waters, infiltrating through the soil, thus changing their chemical composition. At that,
concentration of chemical compounds increase against the background levels, specific for the
natural composition of ground waters. In such a way, the main negative factors of spoil dumps
impact on the environment are as follows:

distortion of the natural landscape;

air pollution by dust and fumes;

violation of the hydro geological regime of the adjacent territories;

chemical and radiological pollution of soils and waters;
CURRENT SITUATION
On the territory of the Donetsk Oblast there are 582 spoil dumps of oal mines and washing plats;
out of them 132 dumps are burning dumps. At the moment, 125 spoil dumps are in operation, 60
out of them are burning. Directorates of closing mines are in charge of 178 spoil dumps. At least
42 out of them are burning dumps, which haven’t been extinguished during 2006-2007. Most of
the burning spoil dumps are located in Donetsk (20), Yenakievo (20), Makeevka (21). The total
territory covered by the spoil dumps makes 5 000 hectares, which makes 0,2% of the total Obalst
territory. About 4% of all air emissions in the Oblast are produced by the coal spoil dumps.
For example, Makeevka has got 147 spoil dumps which belong to coal mines, washhouses and
other enterprises; out of this number - 39 spoil dumps are owned by the closing mines.
Burning spoil dumps are a source of emissions for CO2, NOx, sulfur dioxide gas and particles
(coal spoil dust), heavy metals.
The volume of coal spoil dumps emissions amounts to 70 000 tons of pollutants, including 38 000
tons of CO2, more than 14 thousand tons of particles (including the coal spoil dust), over 5 000
tons of Nox.
In the majority of cases, concentration of dust, sulphur dioxide and hydrogen sulphide under the
waste dump plume is 1,8- 2,5 times higher than the norm. According to the laboratory tests air
pollution levels registered under waste dump plumes in operation exceed the MPC norms: 1,5 –
2,3 for dust, 1,3 – 2,4 for sulfur dioxide, 1,2 – 1,5 times for CO2, hydrodgen sulfide – 1,3 to 2,4
times, NO2 – 1,3-2 times.
4 862 people reside in the sanitary protection zones of the coal spoil dumps.
Coal mine enterprises are significant sources of the environment pollution. The share of air
pollution produced by the coal mine industry makes 35-38% (540 – 580 thousand tons) of the
total emissions volume in the Donetsk Oblast.
Coal mine effluents make about 20% of the total volume of waste waters discharged into the
surface water objects in the Donetsk Oblast.
Coal mines drainage systems discharge highly mineralized waste waters into the hydrographic
system of the region (3,0 – 4,0 g/dm3, in some cases – 7-10 g/dm3, while the norm is 1,0 g/dm3),
88
which leads to further salinization of drinking water sources. At the moment, the mineralization
level at the Olkhovskoy water reservoir is 1,3 – 1,6 times higher than the norm.
In the central region of the Donetsk Oblast increased level of drinking water sources
mineralization can lead to the growth of sickness rate in renal lithiathis and cholelithiasis. It
should be mentioned that in general Volynzevskoye and Olkhovskoye water reservoirs are filled
up by mine waste waters.
The law of Ukraine “On Provision of Sanitary and Epidemiological Well Being of the
Population” and resolution of the Cabinet #31 “On Events Aimed at the Solution of
Environmental and Hydrogeological Problems, which Result from Mining Enterprises, Coal
Mines and Pits Closure” dated 12.01.1999 are being violated. According to the abovementioned
resolution the Ministry of Coal Industry, Ministry of Science and Technology at the support of
the Ministry of Ecology and Natural Resources, National Academy of Science of Ukraine should
have submitted to the Cabinet their suggestions on the development and integration of effective
technologies and technical means to ensure demineralization of mine waters.
However, no demineralization technologies, which can be applied to mines, have been presented
so far.
At the moment, there are only some developments of the “Dongiproshakht” on the group
installation to demineralize water at the Olkhovskoye water reservoir. However, the issues of
financing and implementation of this work have not been solved.
At the beginning of 2008 the state enterprise “Donuglerestrukturizatziya” (in spring 2008 reorganized into Donetsk, Torez and Gorlovka directorate of closed mines) has had 53 objects of
coal industry at different stages of the closure process (physical liquidation has been finished at
17 coal mines) on its balance.
Unfortunately, the main focus of the mine closure process is at the physical liquidation
(dismantling of surface infrastructure and buildings). At that, environmental protection events are
not carried out to the full extent, and the designed closure schedule is not observed.
Donetsk Oblast Sanitary and Epidemiological Station has forwarded numerous letters (in 2001,
2002, 2007) to the Ministry of Coal Industry on the acute necessity to demineralize runoff waters
of mines stated for closure. No feedback has been received.
“Ukruglerestrukturizatziya”, Ministry of Health Care of Ukraine, State Agency of Environmental
Protection in the Donetsk Oblast, Oblast Prosecutor Office, the Agency of Security Service of
Ukraine (SBU) in the Donetsk Oblast have been continually updated on the existing situation
regarding the discharge of highly mineralized waters into the hydrographic network of the
Oblast.
This issue is still unsolved, moreover the former Cabinet (letter KM/19-217, dated 04.02. 2002)
informed that it is not possible to allocate funds for mine waters demineralization due to the high
cost of required actions.
Ongoing and regular microbiological laboratory control of mine waters is not conducted as there
is no financial provision to carry out such works.
Besides, the engineering communication network and social infrastructure of coal mine villages,
is destroyed where the coal mine is being closed. Water supply, sewage networks and their
infrastructure, electric mains, social sphere objects wear out (Shakhtersk, Selidovo, Yenakievo,
Snezhnoye).
Another very important problem associated with coal mines closure is flooding of residential
areas in cases when mines were flooded as part of wet conservation. This happened to be possible
as the hydro geological prognosis mismatched the factual movement of ground waters in mine
89
openings. Several mining settlements have been flooded in Snezhnoye (“Removskaya” and
“Snezhnyanskaya” coal mines) and Donetsk (coal mine #9 “Kapitalnaya”).
Very often prevention and liquidation of flooding consequences is not provisioned for by the
mine closure plans. Solution of this problem is imposed on the local self-governance bodies,
which in their turn don’t have money in local budgets to finance the adequate measures.
Therefore, the problem remains unsolved and the living conditions in such villages worsen.
Another problem of mine closure is the problem of burning spoil dumps: extinguishing and
reshaping. About 70% of all 178 spoil dumps, which are owned by the closing mines don’t have
the required sanitary and protection zone. Project decisions related to spoil dumps are not
financed by the Ministry of Coal Industry regardless of the applications made by the directorates
of the closing mines. Implementation of the required measures is postponed sine die.
NATURE PROTECTION MEASURES (REHABILITATION)
Mining Stage
In terms of spoil dumps, which used to be in operation mine closure project envisages
extinguishment (if necessary) and reshaping (mining stage of work), re-vegetation and
rehabilitation (biological stage of work). Rehabilitation is carried out as a remediation event and
is seen as the main area of work to restore the economic value of disturbed lands and improve
environmental conditions.
Extinguishment of burning dumps should start with water sprinkling to cool down the waste rock
of the upper layer (at the depth of 0,1 – 0,2 meters) below 80 degrees. At that the water
consumption is not less than 50liters/m2 for the burning surface of the waste dump. The waste
dump is considered to be extinguished if at the depth of 2,5 meters the temperature of the waste
rock is below than 80 °С.
Extinguishment of burning conic and ridge shaped dumps is done in the course of reshaping into
flat topped dumps by bulldozers, excavators or hydro monitors. The foreseen extinguishment
technology of silting the upper layer with antipyrogens or injecting with silting pulp failed to be
used in practice. The main reason is absence of necessary equipment, special complexes and
specialists among the contracting companies, mine construction companies.
The technology for small burning spots (all types of spoil dumps) extinguishment foresees
placement of clay, loamy clay, inert dust, waste of the stone chipping production, sand and other
non-combustible materials.
Recently, a few other technologies have been suggested to reduce the negative impact of spoil
dumps. Having studied the burning processes of waste from coal deposits it has been suggested to
create a protection layer made out of calciferous materials. In order to prevent self-combustion it
is suggested to use hydroxides and Na, К, Ca carbonates, which are most effective to neutralize
new compounds emission which is initiated by oxidation leaching of pyrites. This stops heat
generating reactions, but also leads to environment protection due to neutralization of harmful
solid, dissolved and gaseous pollutants.
BIOLOGICAL STAGE
Prior to rehabilitation it is necessary to survey the spoil dump. The survey is conducted to
develop dump characteristics and define the need of biological restoration.
90
The survey is conducted by the Donetsk Botanical Garden of the Ukraine National Academy of
Science or a specialized company, which is licensed to conduct the corresponding types of survey
(ecological, administrative and sanitary-hygiene).
Based on the results of the survey characteristics of the dump and peculiarities of its interaction
with the adjacent media are developed. Characteristics of the dump include the following
indicators:

shape of the dump;

slope angles;

height and occupied territory at the basis;

upper waste layer texture;

actual/active soil acidity according to GOST(All-Union State Standard) 27753.2

salt concentration of aqueous extract according to GOST 27753.3 and 27753.4

economic value of lands covered by the waste dump;

share of spontaneous vegetation cover;
Based on the survey results the report according to DSTU (National standards of Ukraine) 3008
is produced and passed over to the customer (spoil dump owner) to be used under the
development of the rehabilitation project.
Biological rehabilitation should be conducted if the spoil dump has not got vegetation cover at
all, or its share is less than 80% of the whole territory of the dump.
Firstly, efficiency of re-vegetation of the spoil dumps depends on the correct selection of plant
species. Selection of species is determined by the final goal of re-vegetation and the sate of the
upper layer of the spoil dump (agrochemical and water chemical properties). As ecological
conditions of coal spoil dumps vary significantly, the enduring vegetation cover should be made
by various plant species.
Shrubs and trees are most effective at steep slopes as due to the well-developed root system they
provide stability of waste rock at the batters and prevent mechanical deformations. At the flat
tops, terraces and flat areas, where the effect of wind is at its most, the good results are provided
by permanent grasses. For acid rock, pH = 3-4, the suitable trees are: silver chain, tamarisk,
Chinese elm and field elm. For acid rock, pH = 4-5 – all trees mentioned above plus ash and
Tatarian maple, warty birch, wild apple tree, apricot tree, green ash, staff tree, acacia, oleaster.
For not very acid, neutral pH = 5-7 – all trees mentioned above and wild pear, common oak,
sweet cherry, green and ordinary ash, chestnut, walnut, white mulberry, elderberry, wafer ash,
desert thorn, hazel, lilac, bladder nut, dogrose, buckthorn, golden currant and spiraea. Spoil
dumps without potentially fertile soil (PFS) should be planted with acacia, elm or field elm,
maple and poplar tree. Mixing of tree species can be done in between the lines or within the line.
For spoil dumps with PFS you can enlarge the number of species by introducing those which are
more demanding to the growing conditions: wild pear tree, wild apple tree, apricot and green ash.
The suitable shrubs include: black thorn, acacia, dogrose, staff tree, Tartarian honeysuckle and
oleaster. Blackthorn, acacia, oleaster, grasses such as fairway crested grass, smooth brome and
honey clover can be used to re-vegetate the slopes in between the terraces.
Re-vegetation (fixing) of dumps slopes should be done by sowing permanent grasses. Sowing of
grasses at the slopes should be done by hand planting or with the hydro planting method. If it is
necessary to re-vegetate the dump quickly, fix the slopes peat and greensward cover should be
used.
If the dump comprises sulfide rock, then sowing of grass should happen only after the PFS or
potential soil (PS) placement. If PFS or PS are not available, then the waste rock of the dump
91
should be lime treated first. The grass mixture for hydro planting should consist of fabaceous (3040%) and cereal (60-70%). For hydro planting the sowing norm makes 70kg/hectar assuming
100% germinating capacity. If annual precipitation is less than 400 mm, than for rocky and sandy
dumps characterized by high level of water penetration capacity, the above norm should be
increased 1,5 – 2 times. Mineral fertilizers are introduced with consideration of agrochemical
properties of soil. Permanent grasses crop tending includes mowing at the florification stage and
mineral fertilization.
The specific area of biological rehabilitation depends on the intended use of rehabilitated land
and morphometric parameters of the technogenic landform after mining rehabilitation. On the
basis of the spoil dumps survey it is possible to identify the following areas of biological
rehabilitation:

sanitary and hygiene, which is conducted to improve sanitary and hygiene conditions of
the residential area;

agricultural, forest: is conducted to rehab the disturbed land up to the state suitable for
economic use;

recreation, i.e. conducted to create favourable recreation conditions for people;
Planting of trees at the dump spoils happens in 2 schemes of biological rehabilitation: complete
or in rows.
Complete scheme: formation of the complete re-vegetation cover consisting of trees and bushes
(slopes, flat tops) or grasses (flat tops). At that, the seedlings of shrubs and trees are planted in
horizontal lines, which are parallel to the basement of the dump. The distance between the lines is
2 meters, the distance between the seedlings in the line– 1 meter. Alternation of shrubs and trees
is possible in a line. The complete scheme is used for steep slope dumps (250 to 300 ) in
residential areas.
Figure 1 – formation of the vegetation cover in lines at the slopes of the dump.
Row scheme (figure 1): formation of the vegetation cover in the form of horizontal alternating
lines of trees/shrubs and grasses at the slopes of the dump. At that, the trees and shrubs row is
formed of 2 lines of seedlings arranged chess board fashion, (figure 2). The distance between the
rows – 2 meters, between the seedlings in the row – 1 meter. The width of the grass cover row – 8
to 10 meters.
92
Figure 2 – allocation of trees in the 2 line row. .
Where the slope angles makes 200 - 300, the grasses are sown in shallow horizontal furrows at a
distance 0,2 – 0,3m. At gentle slopes, angle less than 200 the grasses are sown densely and evenly
over the whole surface.
Figure 3 –location of the protection belt around the spoil dump.
The row scheme can be accepted for dumps located outside residential areas. The protection belt
should be established around the dump to prevent waste rock outwash by the runoff waters. The
protection belt consists of 2 lines of staff tree and one line of Bolle’s poplar. The distance
between the trees in the line doesn’t exceed 5 meters. Then follows the shrubs line.
USAGE OF ADJACENT STRATA OF THE SPOIL DUMPS
Apart from rehabilitation, the negative environmental impact of spoil dumps can be reduced
through recycling/reprocessing of dumps and recovery of the resource valuable components. The
wide range of various chemical compounds and elements inclusive of rare earth elements and
Germanium, as well as aluminum oxide for bauxite production, iron ore and coal make this
technical area of development quite promising, as raw material (i.e. waste rock) is easily
available, low cost and unlimited in volume.
Recovery of aluminum, aluminum containing compounds and rare earth
elements.
93
One of the constituent parts of the extracted waste rock is clay minerals with high concentration
of aluminum oxide, which varies within 20-27% for the mines of the Donetsk and Makeevka
region. This proves that waste rocks of the spoil dumps can be used to recover aluminum
compounds, in particular aluminum sulphate and aluminum oxide, as well as aluminium metal.
However, lack of universal technology for waste re-processing stops the solution of aluminum
raw material and ecology issues in the coal mining areas. The Bayer technology accepted for
reprocessing of bauxites turned out to be ineffective in this particular case – it doesn’t allow the
management of a huge quantity of admixtures of the coal mine production. The main difficulty
lies in the interaction of silicone dioxide and alkali used in the production process, thus leading to
increased use of chemical reagents and production costs accordingly.
Therefore, it is recommended to accept the agglomeration technique/acid method as the basic
one. It requires significant energy inputs, but covers the energy costs by insignificant
requirements applied to raw materials and possibility to obtain by-products (sodium carbonate,
cement, potassium and gallium).
The main principle of agglomeration technique is treatment of raw material by 2 types of acids
(sulphuric, sulfurous hydrochloric acid or nitric acid) and high temperature agglomeration of the
mixture. Algorithm of aluminum sulphate production can be conventionally divided into several
stages: raw material preparation, initial treatment, agglomeration, decontamination and
calcination.
Initial treatment of coal production and washing waste includes waste rock shredding: the
mixture is crushed and ground (on average the grinding particle size varies 200 to 250 microns),
some components of raw materials are dosed. After that the raw material reacts with concentrated
acid (85-90%); then the mixture is agglomerated (420 °С for 1,5 hours); then the cake is scrubbed
with hot water (80-90 °С) – at this stage aluminum sulphate sediment falls out. The next stage –
decontamination of the product. In order to do that some researches suggest using the aluminum
sulphate solubilization method in concentrated HCl with the simultaneous saturation with
gaseous hydrogen chloride. Another decontamination method is treating aluminum sulphate with
stearic acid followed by filtration.
Decontaminated aluminum sulphate is calcinated at the temperature 900-1000°С and the
aluminum oxide, which can be used in metallurgical processes is produced.
There are several significant disadvantages to the practical usage of this method. First of all,
complications and specific requirements imposed by the work with acids: expensive acid resisting
equipment is required to process the material successfully. Acids themselves are quite and
expensive and the volume of acids used in the production is quite high.
A combined acid based method of aluminosilicates treatment is a good alternative to traditional
agglomeration. According to this method the mixture is treated with acids before aluminum oxide
is produced and its decontamination is done according to the Bayer technology. This technology
is quite complex, however it reduces and simplifies the production process as no additional
decontamination of aluminuium salts from iron impurities is needed.
Apart from high concentration of Al2O3 coal mine waste contains germanium, gallium and other
rare earth elements, such as yttrium, zirconium and scandium, which can be commercially byrecovered
Germanium recovery can happen in a number of ways.
The first and easiest way is solubilization of the material followed by oak concentrate (tannin).
The second way, which enables recovery of other rare earth elements as well as germanium is
electrostatic separation.
Coal recovery
94
This area is one of the rare ones, which have reached the stage of practical
implementation. Even still the available examples of factual development spoils dumps for coal
products recovery very often are informal and are carried out at the semi-legal conditions. A
completely legal initiative in this sphere is the experience of the JSC “Anthracite” established to
implement advanced complex land rehabilitation and remediation methods.
Cleaning plant “Snezhnyanskaya #1”
The abovementioned company started implementation of its programme aimed at the
improvement of the environmental situation in the Donetsk Oblast in 2005 in Snezhnoye.
First time in Ukraine the modern technology of coal recovery from spoil dumps has been
introduced on the basis of cleaning plant “Snezhnyanskaya #1”. Application of this technology
ensures recovery of the coal concentrate as well as liquidation of coal spoil dumps as the source
of pollution.
Snezhnoye, spoil dump 14 at the time of the cleaning plant
Conducting works to rehab land at the place of spoil
95
construction
dump 14
Two spoil dumps (total volume around 2 mln m3) have been processed since the cleaning plant
was put into operation. The waste rock of those spoil dumps was used to fill up the mined quarry.
As the result the city has got the lands suitable for construction purposes as well as additional
territories where the spoil dumps used to be.
In the nearest future the company plans construction of the second cleaning plant
“Snezhnyanskaya 2” for rehabilitation of lands occupied by 5 spoil dumps with the total volume
of 12 mln m3. This will lead to rehabilitation of 45 hectares of useful land.
Construction material or raw materials for construction material production
Waste rock of spoil dumps in Eastern Donbass can be reprocessed into crushed aggregate. Such
experience is already available from the Russian spoil dump in Shakhty. The main product of the
spoil dump reprocessing is aggregate: macadam 10-40mm, initial screenings and crush
screenings.
The aggregate material produced of spoil dump waste rock is suitable for road construction. The
aggregate materials can be used for basic and additional layers and covers for road categories III,
IV, V. Usage of such crushed aggregates for the construction of higher road categories will be
possible when sufficient positive experience has been accumulated. Road construction is one of
the most capacious consumer for crushed aggregates, sand and macadam and sand mixtures.
Another possible usage of crushed aggregates made out of waste rock is production of cell
concrete (foamed concrete) and heat insulating products made out of it. Production of such
materials is being developed very intensely at the moment and the need of available mineral
materials for cell concrete will grow.
Crush screenings are the basis for the production of economic activated blended powder binders
and low water demand binders.
Crush screenings can be used instead of soil at the construction of mounds, dams, landform
works, etc.
Screenings after the second crush can be used as fine-grained aggregate to produce high density
bituminous concrete, wall elements, various tiles.
Materials produced out of waste rock can be used in coal mine construction, for example to
suppress the water flows (grouting activated binding mortars), building of monolithic concrete
lining, production of barring.
Development of other waste rock utilization possibilities would be determined by the market need
in the new production.
CONCLUSION
All materials presented in this report justify the conclusion that the issue of coal mine waste
dumps is very acute for the Donetsk Oblast. Necessary measures required to prevent negative
impact of spoil dumps on the environment are not coordinated efficiently. Few positive results in
this field are leveled by the lack of single systematic approach to the spoil dumps treatment issue
and absence of regular financial support.
96
The following measures should be carried as the priority taking into account the longstanding
accumulation of problems in this sphere:

The Cabinet to develop the Draft State Programme on urgent measures to prevent
deterioration of sanitary, epidemiological, environmental, social and economic state of
industrial and residential agglomerations of Donbass and Ukraine in general caused by
increased mineralization of mine waters.

The Ministry of coal industry and other related ministries should take obligations to solve
the problems in the nearest future;

To carry out extinguishment and rehabilitation works for spoil dumps located in
residential areas and those without required sanitary and protection zones.

Priority provisioning for environmental events in the mine closure process.
97
Appendix D: MINE DUMP INVENTORY ( Donuglerestrukturizatsia)
Information regarding
Waste dumps of the mines under the jurisdiction of ”Donuglerestrukturizatsia”.
As of 1 January
’08.
№
Name of mine
п/п
Dumps
1
1.
2
ш.Батова
Details of waste dumps
Total
# at
site
burning
3
4
1
Породный отвал (плоский)
2
Макеевская-Центральная
Пор.отв.ш."Октябрьская"
№16 (плос.)
98
Non
burning
5
(m)
6
1
+
13
Height
65
13
+
40
Project data
Total
surface
area
(ha)
Volume
of rock
(‘000 m3)
Reshaping
works
7
8
9
16,80
5170
16,80
5170
50,74
9186
11,90
3474
Notes
works
Revegetation
and
recultivation
10
11
12
Extinguishing
+
+
ЧПП "Горняк-95"
S=3,145га
письмо МУП
№953/04/03-02
от 24.10.06г.
Пор.отвал
(конус)
ш.№34
№15
+
30
1,8
196
+
+
39
2,00
192
+
Пор.отвал №10 ш.№9 (конус)
+
24
1,8
313
+
Пор.отвал ш.№9
(конус)
+
14
1,2
75
+
Пор.отвал ш.Грузская (конус)
№3
+
40
8,75
1654
+
Пор.отвал
(плоский) №2
+
19
5
615
+
Пор.отвал ш. №31 №7 (плос)
+
10
1,65
165
+
Пор.отв.
ш."Капит."
(двухконус)
№14
+
40/36
9,6
1762
+
Пор.отвал ш. №32
(конус)
№8
+
9
0,34
22
+
Пор.отвал
(конус)
№5
+
37
3
292
+
+
14
1,1
100
+
Пор.отвал ш.№44
(конус)
Пор.отв.
№13
№12
ш.Грузская
ш.№28
ш.Грузская
99
(восточн.) №1
Пор.отвал ш.№9 №11 (конус)
3
ш.10 "бис" пром. пл.
+
1
Пор.отвал (двухконусный)
4
5
ш.№21
1
+
2
71,5/65,1
2
2,6
326
7,5
1826
7,5
1826
15,20
3450
+
+
+
+
Пор.отвал №1 (конус)
+
73
4,2
905
+
Пор.отвал №2 (плоский)
+
31
11
2545
+
22,80
4908
"Пролетарская Крутая"
Пор.отв.№2
(конус)
7
1
ш.Прол.Крутая
Пор.отв.ш.Колосниковская 2
№1(кон)
100
24
6
+
+
за черт. города
74
8,5
1830
+
+
+
ГП"Макеевуголь"
письмо МУП
№03/03-02/131
от 11.05.06
79
5,8
1752
+
+
+
за черт. города
Пор.отв.ш.Колосниковская 2
№2 пл.
+
20
2,6
578
Пор.отвал ш.№19 (ус.конус)
+
29
0,6
203
Пор.отвал ш.№20 (конус)
+
32
0,2
225
+
6
Пор.отв.ш.№20 шурф. №1 и
№2 кон.
+
18,5
0,4
47
Пор.отвал ш.№29 (конус)
+
47,3
4,7
273
13,40
3531
75
5,4
3089
"Харцызская"
3
Пор.отвал №1 (конус)
7
1
2
+
+
+
+
за черт. города
за черт. города
Пор.отвал №2 (плоский)
+
15
3,2
200
+
Пор.отвал №3 (плоский)
+
5
4,8
242
+
24,30
5106
"Советская"
6
Пор.отвал
(конус)
ш.№19-20
№1
Пор.отвал
(плоск.)
ш.№19-20
№2
6
+
60
10
2293
+
+
+
21
1,6
230
+
+
Пор.отвал ш.№3 №2 (плоск.)
+
30
4,5
911
+
Пор.отвал ш.№3 №1 (плоск.)
+
10
0,3
2
+
Пор.отвал
№1 (конус)
+
60
6,1
1302
+
+
18,5
1,8
368
+
ш.Капитальная
Пор.отв.ш.Капитальная
(плоск.)
№2
ГП"Макеевуголь"
письмо МУП
№03/03-02/131
от 11.05.06
101
8
"Красногвардейская"
2
28,70
8459
+
70,3
7,8
3950
+
+
+
Пор.отвал
(конус)
+
72,5
5,8
1247
+
+
+
+
38,9
4,8
1170
+
37,2
7,8
1372
+
22
2,5
720
30,27
7889
46
4,7
1666
36
4,4
1144
ш.№1-1
бис
Берестовск.-2
Пор.отвал ш.№12-13
(ус.конус)
№1
Пор.отвал ш.№12-13
(плоск.)
№7
им.Орджоникидзе
6
Пор.отвал ш.№1 (плоский)
2
Пор.отвал
(ус.конус)
.№2
Ганзовка
Пор.отвал ш.№6-14 (плоский)
4
+
Пор.отвал ш.№2 (плоский)
102
3
Пор.отвал ш.№7 (ус.конус)
Пор.отвал
(ус.конус)
9
5
+
+
88
+
42
7,4
8,05
2140
2190
озеленен
+
+
+
+
+
озеленен
+
+
+
ЧП "СГТ" письмо
МУП
№251/05/03-02
от 13.07.07
ЧП "СГТ" письмо
МУП
№1669/03/03-02
от 25.10.07
10
Пор.отв.ш.Чайкино-Южная
(ус.кон.)
+
35
1,32
500
Пор.отвал
(ус.кон.)
+
32
4,4
249
ш.Ново-Чайкино
Итого по Советскому УЛШ
44
7
37
209,71
49525
"Кондратьевка"
11
2
9
32,70
7967,9
+
Пор. отвал №8 (конус)
+
36,5
2,4
260
+
Пор. отвал №17а (конус)
+
39
1,3
91
+
Пор. отвал №20 (конус)
+
20
1,6
193
+
Пор. отвал №30 ( ус.конус)
+
74
5,9
2640
+
+
Пор. отвал №30а (ус.конус)
+
83,7
6,3
2700
+
+
Пор. отвал №31 (ус.конус)
+
1,4
1,2
1
+
Пор. отвал №32 (конус)
+
39
2,9
230
+
Пор. отвал №36 (конус)
+
20
1,5
40,3
+
Пор. отвал №49 (конус)
+
20
1,5
40
+
Пор. отвал №60 (конус)
+
32
1,6
81,6
+
103
Пор. отвал №70 (плоский)
11
12
13
104
+
им.Изотова
7
37
7
6,5
1691
36,50
15620
+
Пор. отвал №1 (лев.ус. конус)
+
77
8,1
3324
+
+
Пор.
отвал
ус.конус)
+
67
5
2071
+
+
Пор. отвал №3 (плоский)
+
81
16,1
9450
+
+
Пор. отвал №4 (запад.конус)
+
42,2
1,5
182
+
+
Пор.
отвал
(запад.плоский)
+
13,6
2,1
43
Пор. отвал №6 (конус)
+
59,4
2,3
336
+
+
Пор. отвал №7 (конус)
+
48,1
1,4
214
+
+
26,60
5943
№2
(прав.
№4
им.Артема
3
3
+
Пор. отвал №5 (плоский)
+
50
21,4
5435
+
+
Пор. отвал №1 (ус.конус)
+
51,6
2
332
+
+
Пор. отвал №18 (ус.конус)
+
45
3,2
176
+
+
43,90
15355
"Кочегарка"
2
2
Пор. отвал
промплощ.
Пор.
отвал
Горловск.моря
14
15
(ус.конус)
на
(плоск.)
у
"Новая"
2
80
14,6
5100
+
+
+
40
29,3
10255
+
+
14,72
3827,2
2
Пор.отвал на осн. площадке
(конус)
+
78
10,2
2947
+
+
+
Пор.отвал
(конус)
+
66
4,52
880,2
+
+
+
16,8
1847
16,8
1847
22
171,22
50560,1
6
27,70
6520
"Новая
Валюга"
"Александр-Запад"
1
1
Пор.отвал (плоский)
16
+
+
Итого по Горловскому УЛШ
26
"Красный профинтерн"
6
4
12
+
Пор. отвал №1
+
56
5,1
1400
+
+
Пор. отвал №2
+
25
2
349
+
+
Пор. отвал №3
+
9
1,6
271
+
+
Пор. отвал №4
+
50
6,3
1700
+
+
105
17
18
19
Пор. отвал №5
+
50
6,7
1800
+
+
Пор. отвал №6
+
30
6
1000
+
+
28,30
8200
"Юнком"
4
4
Пор. отвал №1
+
75
7,5
3900
+
Пор. отвал №2
+
44
4,9
2000
+
Пор. отвал №3
+
25
12,7
1800
+
Пор. отвал №4
+
50
3,2
500
+
8,20
1307
"Донецкая" ОУ
4
4
Пор. отвал №1
+
40
3,6
984
+
+
Пор. отвал №2
+
15
1,3
71
+
+
Пор. отвал №3
+
13
2
170
+
+
Пор. отвал №4
+
32
1,3
82
+
+
15,60
2513
20
5,1
1102
+
+
№3 "Александровская
4
2
Пор. отвал №1
106
2
+
Пор. отвал №2
+
40
2,9
682
+
+
Пор. отвал №3
+
39
1,2
183
+
+
Пор. отвал №5
20
21
№4 "Александровская"
+
2
2
546
3,20
327
+
20
1,3
217
Пор. отвал №2
+
8
1,9
110
27,40
3330
27,4
3330
4,30
1056
48
4,1
1046
5
0,2
10
20
114,7
23253
2
8,34
1935
6,00
1021
"Красный Октябрь"
1
1
+
"Крымская"
2
Пор. отвал №2
1
Итого
УЛШ
по
Енакиевскому
Ш/у "Торезское"
Пор.отвал (конус) ш. №43
Пор.отвал (конус) ш. №2
+
23
2
3
54
1
+
Пор. отвал №8
23
6,4
Пор. отвал №1
Пор. отвал
22
8
+
+
67
50
2,34
914
+
+
+
за черт. города
+
+
+
+
Выполнены
проектные
решения и
передан
107
Грабовскому с/с
24
25
"Фоминская"
3
9,10
2925
Пор.отвал (ус.конус) ш. №14
+
49
3,7
1369
+
Пор.отвал №1 (плос.) ш. №12
(вост.)
+
30
2
406
+
Пор.отвал №2 (ус.кон.) ш.
№12 (зап.)
+
48
3,4
1150
+
25,65
5125,2
"Московская"
7
4
3
Пор. отвал №1(плос.) Осн.
площ.
+
35
5,76
1006
+
Пор. отвал №2(плос.)
площ.
+
19
1,12
84
+
Осн.
Пор. отвал №3(конус) ш.№49
+
69
8,2
1841
+
+
+
Пор.отв.
Стожковская№2
№4(кон.)
+
54
2,79
502
+
+
+
Пор.отв.
Стожковская№1
№5(конус)
+
55
2,34
585
+
+
+
+
41
5,4
1102
+
+
+
Пор.отв.№6(плос.)
Стожковская№1
108
3
Пор. отвал (плос.) ш.82
26
27
28
+
"Кировская" ОУ
2
6
2
0,038
5,2
6,05
1223
+
+
+
Пор. отвал №1 (конус)
+
80
3,91
763
+
+
+
Пор. отвал №2 (конус)
+
54
2,14
460
+
+
+
7,95
1804
"Шахтерская"
4
4
Пор. отвал ( ус.конус) ш. №30
+
47
4,4
1173
+
Пор. отвал (конус) ш. №31
+
23
1
317
+
Пор. отвал (плос.) б. 3-й Яр
+
16,5
1,8
220
+
Пор.отвал
(плос.)
+
17
0,75
94
+
5,37
390,1
зап.вент.ствола
"Донецкая" ТА
5
Пор.
отвал
ш."Усовка-7"
(ус.кон.)
5
+
24
0,88
73,4
+
Пор. отвал (плос.) ш. №57
+
3
0,01
3
+
Пор. отвал ДК-2(конус)
+
26,4
2,04
93,5
+
Пор. отвал ДК-1(конус)
+
22,4
1,35
109
+
+
34,9
1,09
111,2
+
Пор.отвал
(кон.)
ш.
Выполнены
проектные
решения
109
"Зап.Усовка"
29
30
ЦОФ "Сердитянская"
3
3
+
50
6,6
728
+
Пор.отвал №2 (конус)
+
21
2,5
340
+
Пор.отвал №3 (плос.) 3-й Яр
+
37
11,25
2430
+
8,04
1778
96
1,5
180
+
80
5,24
1390
+
50
1,3
208
7,7
1832
43
4
1034
+
59
3,7
798
+
+
+
+
+
+
"Зуевская"
3
1
+
Пор.отвал №6 (ус. конус)
"Житомирская"
+
2
1
Пор.отвал №1 (ус. конус)
1
+
Пор.отвал №2 (конус)
+
Итого по Шахтерскому УЛШ
31
8
23
98,55
20510,3
"Горняк"
3
2
1
12,03
3350
5,4
2338
Пор. отвал №1(конус)
110
2
+
Пор.отвал №15 (конус)
32
3498
Пор.отвал №1 (конус)
Пор.отвал №12 (ус. конус)
31
20,35
+
86,2
+
+
+
+
+
Пор. отвал №2 (плоский )
+
Пор. отвал №43 (конус)
33
"Селидовская"
+
1
№2 "Новогродовская"
400
+
53,2
2,73
612
+
+
24,10
4100
24,1
4100
+
+
10,00
2302
38,2
2
+
+
Пор. отвал №1 (конус)
+
85
6,5
1842
+
+
Пор. отвал №2 (конус )
+
48
3,5
460
+
+
2
46,13
9752
7
41,79
6570
Итого
УЛШ
35
+
2
3,9
1
Пор. отвал (плоский)
34
27
по
Селидовскому
Ш/у "Правда"
6
7
4
Пор. отвал (ус.конус) ш.№2
+
40
6,84
1590
Пор. отвал (ус.конус) ш.№8
+
31,6
3,22
500
Пор.
отвал
ш.№12/18
+
36,3
10,65
1990
+
6
0,35
21
Пор.отв.(плос.)
накл.ств.ш.№12/18
(ус.конус)
111
Пор. отв. (конус)ш.№6 "Кап"
+
40
6,96
1180
Гидроотв.
"Кап"
+
35
11,55
880
+
24,5
2,22
409
11,82
2483
(плоск.)
ш.№6
Пор. отв. (ус.конус) ш.№14-8
36
№6 "Красная Звезда"
4
+
41,9
6,24
1474
Пор. отвал №2 (ус.конус)
+
35,0
1,7
207
Пор. отвал №3 (ус.конус)
+
32
0,6
96
67
3,28
706
22,00
15491
50
7
4096
в
"Панфиловская"
+
3
2
Пор. отвал №1 (ус.конус)
38
112
1
+
+
+
+
+
+
Пор. отвал №2 (ус.конус)
+
50
9,8
6130
в
в
+
Пор. отвал №3 (плоский)
+
45
5,2
5265
в
в
+
7,20
1885
7,2
1885
+
+
+
12,30
4119
"Кировская" ДУ
1
Пор. отвал №3 (конус)
39
3
Пор. отвал №1 (ус.конус)
Пор. отвал №4 (ус.конус)
37
1
№9 "Капитальная"
1
+
1
1
76
ООО "АмберДонбасс"
письмо МУП
№226/05/03-02
от 16.06.07
Пор. отвал (ус.конус)
40
+
"Мушкетовская"
1
1
Пор. отвал №1 (ус.конус)
41
Заперевальная №2
+
1
Пор. отвал №3 (плоский)
42
№12 "Наклонная"
+
2
1
"Петровская"
Пор.отв.ш.№21
(двухконус)
1
ш.№22
Пор.отвал ш.№11 бис (конус)
Пор.отвал ш.№29 (ус.конус)
+
+
4119
0,99
82
0,99
82
27,00
6465
6465
11,16
3216
39,6
1,56
204
93,8
9,6
3012
27,4
8535
96/98
7,8
2558
73,1
7,04
1908
40,5
12,56
4069
2
+
12,3
27,00
1
+
3
и
88
+
Пор. отвал №2 и №3 (конус)
25
1
Пор. отвал №1 (конус)
43
60,6
+
+
+
ЧП "Ларин"
письмо МУП
№2141/03/0302 от 13.12.07
+
+
+
ООО АмберДонбасс
письмо МУП
№245/05/03-02
от 03.07.07
+
+
+
за черт. города
+
+
+
+
113
Итого
УЛШ
44
по
Пролетарскому
"Лесная"
23
8
15
161,66
48846
2
1
1
10,40
1689
46,7
3,6
864
+
43,4
6,8
825
+
6,90
970
Пор. отв. (ус.конус) ш.№19
+
Пор. отв. (ус.конус) ш.№20
45
46
47
"Рассыпнянская"
2
2
+
+
Пор. отвал №2 (конус)
+
45
1,6
200
+
+
за черт. города
Пор. отвал №3 (ус.конус)
+
30
5,3
770
+
+
за черт. города
11,2
2100
"Ремовская"
2
2
Пор. отвал (ус.конус)№104
+
60
7,2
1100
Пор. отвал (ус.конус) №15
"бис"
+
61
4
1000
41,81
11821
"Миусская"
9
4
5
Пор. отв.(плос.) ш.№152
+
22,7
3,45
220
+
+
Пор. отв. (комбин.) ш.№27
+
80,5
10,54
5850
+
+
79
13,55
2320
Пор. отв. (конус) ш.№18
114
+
+
+
Пор. отв. (ус.конус) ш.№16
+
Осн.пор. отв. (конус) ш.№15
+
155
66
3,8
726
+
+
+
+
20
1,52
114
+
Пор. отв. (конус) ш.№154
+
30
0,48
73
+
42
6,00
2290
26
0,87
73
20,53
4134
30
6,1
984
+
Пор. отв. (конус) ш.№19
"Червона Зірка"
+
5
Пор. отв. (ус.конус) ш.№152
1
4
+
+
+
+
+
Пор.отв.(кон.)ш.Черв.Зірка
осн.пл.
+
60,1
4,60
1063
+
+
Пор. отв. (конус) ш.№7-бис
+
59
4,18
759
+
+
Пор.отвал
ш."Опорная"
+
50
1,6
481
+
71,3
4,05
847
+
+
11,6
3045
5,25
1758
Пор.отвал
пл.к22
49
1,6
Пор. отв. (ус.конус) ш.№15
Пор. отв. (ус. конус) ш.№21
48
19
(ус.конус)
накл.
ствола
"Объединенная"
Пор. отвал №1 (конус) ш. №9
3
3
+
63,9
+
115
50
Пор. отвал №2 (конус) ш.№10
+
70,2
4,6
1011
+
Пор.отвал №4 (кон.) ш.№9
верт.ств.
+
35,1
1,7
276
+
8,8
2953
56
7,72
2883
+
21
1,12
70
+
13,7
4025
13,7
4025
15,0
4000
15,0
4000
29,4
4130,0
"Снежнянская"
2
Пор. отвал №1 (ус.конус)
1
+
Пор. отвал №2 (конус)
51
"Восход"
+
1
Породный отвал (плоский)
52
ЦОФ "Снежнянская"
116
1
+
1
Породный отвал №1
53
1
100
1
+
"№3 - бис"
7
80
7
+
+
+
+
+
Пор. отвал №1 ств. №3 бис
(ус.кон.)
+
44
12,4
2500
+
Пор. отвал №2 ств. №3-3 бис
(плос.)
+
32
12,2
1340
+
Пор. отвал
(кон.)
+
47
3,1
125
+
№3
ш.№100
54
Пор. отвал №5 н/ств. пл.К41
(кон.)
+
10
0,2
5
+
Пор. отвал №6 бремсб. пл.К22
(кон.)
+
25
0,6
70
+
Пор. отвал №7 ш. №84 (кон.)
+
20
0,5
60
+
П.отв.№8 под пирамидой №3
бис кон
+
20
0,4
30
+
4,0
711,3
4,0
711,3
"Речная"
1
1
Породный отвал (плоский)
1
+
Итого по Торезскому УЛШ
35
13
22
173,33
39578,3
Итого
188
47
141
975,298
242024,7
в т.ч. передано
11
4
7
84,18
30782,00
Всего
состоит
на
маркшейдерском учете ГП
"Донуглереструктуризация"
177
43
134
891,118
211242,7
31
+
117
118
Appendix E – Governance Principles for Foreign Direct
Investment in Hazardous Activities
The following governance principles are intended to apply primarily to foreign direct investment (FDI) in
industrial, mining and other activities with particularly significant social and environmental impacts,
especially in countries in transition, under-developed regions and developing countries. These principles
have been designed to complement voluntary international codes of conduct, compacts and other
instruments.
Corporate Good Citizenship
Principle 1
Investors should apply international standards and best practises for corporate "good citizenship" to their
investment projects.
Responsibilities to and Relations with Recipient Countries
Principle 2
Investors should take all legal and regulatory steps required under the laws, regulations, and administrative
practices of the countries in which they invest (“recipient countries”) to protect the environment,
sustainably use natural resources, and avoid accidents that would result in environmental harm or harm to
human health.
Principle 3
Investors should take a pro-active stance towards regulatory agencies to guarantee the proper
environmental and social oversight of their activities, recognising that the transitional status of recipient
countries may create administrative and regulatory conditions that differ significantly from the conditions
prevalent in the home country, to which end:


Investors should gain a thorough knowledge of the legal and regulatory framework and
requirements for environmental and social protection in recipient countries.
Investors should, when appropriate, prompt relevant authorities in recipient countries to enforce
all legal and regulatory requirements.
Principle 4
An investor which invests in a country that does not provide an adequate legal framework for regulating
relevant activities, or properly resourced authorities with powers of approval, inspection and
enforcement, must provide continuous independent and external verification that its activities comply
with domestic legal and regulatory requirements and meet relevant international standards and norms.
119
Principle 5
Investors should support and promote the transfer of best available technology to the recipient country.
The transfer of obsolete technology to the recipient country should in general be avoided.
Principle 6
Investors should abstain from creating competition between countries or regions within a country to
attract a proposed investment on the basis of the level of environmental standards.
Principle 7
Investors should give due consideration to the role that their projects would play in the environmental
and social/sustainable development aims and objectives of the recipient country. To this end, investors
should provide national and local authorities with analyses of how proposed investments will help meet
the long-term goals set in national environmental action plans, national development or sustainable
development plans or policies, or other relevant plans or policies. Such analyses should take into account
internationally accepted criteria and principles, such as those expressed in relevant declarations such as
the Rio Declaration and the Johannesburg Declaration.
Principle 8
When Investors are involved in development of environmental and social policies of the recipient country
or regions, they should seek to raise standards to international levels.
Principle 9
Investors should abstain from influencing (through financial or other means) recipient country officials or
community leaders in development projects or enforcement settings where a conflict of interest may
arise. Investments with ownership structures involving shares owned by governmental bodies or
authorities that may be involved in regulation or oversight are of particular concern.
Principle 10
The operations of investors in hazardous activities should be marked by transparency, in particular in
their relations with localities. Investors should share the results of their environmental and social
performance evaluations with authorities, non-governmental organizations, and the public in recipient
countries.
Investor Environmental and Related Social Policies
Principle 11
Investors should strive to continually improve their environmental and social performance and regularly
review and update environmental policies, priorities, and procedures in the light of new information.
Investors should establish environmental and social performance objectives and strategies in order to
regularly monitor their environmental and social performance.
120
Principle 12
Investors should establish environmental management systems that meet or exceed the ISO 14000 series
of standards and/or EMAS.
Principle 13
Investors should take steps to require that all suppliers and subcontractors meet national standards of
environmental and relevant social performance, and should support and encourage suppliers and
subcontractors in their efforts to meet international standards and to achieve relevant certification(s).
Principle 14
Investors should assume cradle-to-grave responsibility for all hazardous substances produced in and
through their operations, even where such responsibility is not imposed on them as a matter of law.
Investors should, in addition, take the necessary measures to ensure proper handling, storage and disposal
of all hazardous substances obtained from others and used in their operations. Investors should employ
product life cycle assessment where appropriate.
Principle 15
Investors should apply the polluter pays principle in their own operations and promote its application in
the business community to which they belong.
Principle 16
Investors should adopt a precautionary approach to environmental challenges and environment related
decisions. In accordance with Principle 15 of the Rio Declaration, lack of full scientific certainty should
not be used as a reason for postponing or not implementing measures to protect the environment. The
precautionary principle can be applied by:


performing risk analyses for new products, processes, technologies, and actions that might have
an environmental impact;
demonstrating that new products, processes, technologies, and actions that might have an
environmental impact are safe for the environment rather than waiting for evidence that they
might be unsafe (applying a conservative burden of proof standard);


Principle 17
Investors engaged in hazardous activities should ensure the full life cycle operation of facilities, up to and
including closure and remediation to the original state.
Principle 18
Investors should recognize that all investments should aid in the process of transition to sustainability.
Proposed operations therefore should work within the sustainability limits of the ecosystems within
which they will be built, thus:
121


Investors should develop or adopt sustainability indicators that meet international standards.
Investors are encouraged to join the Global Reporting Initiative and regularly produce
independently assured sustainability reports.



operations take into account impacts on ecosystem structure, function, and composition.
The utilisation of natural resources by investors should fall within limits of sustainable use for
those resources.
Sustainability limits for natural resource use should be set using a precautionary approach.
Principle 19
Investors should establish environmental monitoring programs. These should include monitoring of the
effects of their operations on the surrounding ecosystem and environment, including fish and wildlife,
and surface and groundwater, where applicable.
Principle 20
Home offices should promote environmental awareness and responsibility in all company locations.
Such support may be rendered operational by making environmental specialists available from the home
office, providing home office oversight of environmental performance, and rewarding positive
environmental performance.
Principle 21
The incentive structure of each company and facility should be reviewed to ensure that environmentally
responsible behaviour is rewarded while environmentally irresponsible behaviour is punished, i.e.:



Employees should be supported and rewarded for taking environmental initiatives.
“whistleblower” cases.
“Whistleblowers” must be protected against retaliation.
Principle 22
Workers should be trained and educated in all relevant areas of environmental and related social
responsibility.
Information, Participation and Stakeholder Relations
Principle 23
Investors should designate specific senior company officers to be responsible for environmental and
related social matters including relevant communication with the public. Company environmental focal
points should hold regular open meetings with the public and stakeholders to discuss issues of concern to
any party, and be accessible to the public at reasonable times and places. Investors should build
partnerships with the public, take advantage of local knowledge, and ensure that the public has a voice in
environmental decision-making. Open meetings should be well advertised in local communities and
among stakeholders, and be held in a spirit of collaboration. Senior company officers are encouraged to
attend these meetings.
122
Principle 24
Investors shall promptly disclose to the potentially affected communities information in their possession
or that comes to their attention with regard to the environmental and relevant social impacts of their
operations. Claims of commercial confidentiality should not be used to avoid disclosing information that
could potentially be used by members of the public to take action to reduce the extent of environmental
and related social impacts of an investor’s operations.
Principle 25
Where potential impacts of an investor’s operations may be transboundary in scope, the investor should
involve the public, authorities, and other stakeholders of the potentially affected country to the same
extent as it would involve those of the country of location.
Principle 26
Investors should seek to achieve the broad support of affected communities (prior informed consent) and
should respect and protect the rights of those affected by projects, in particular the rights of indigenous
communities, minorities and the economically disadvantaged. Investors should grant opportunities and
develop capacities of the public to participate in monitoring and enforcement.
Accident Prevention and Management
Principle 27
Investors should take every reasonable and prudent step necessary to prevent industrial accidents,
including:




Operations should apply safety management systems that include detailed risk assessments;
strategies for reducing risks; emergency plans, and monitoring, auditing, and review of safety
systems.
Operations should employ the best available technology relevant to safety and accident
prevention.
Investors should dedicate substantial resources to training of personnel in accident prevention
and response.
The above-mentioned measures should include automated shutdown procedures for discreet
units and entire operations.

emergency response plans and in periodic evaluation and revision of response plans and
procedures.
Principle 28
Investors should be able to demonstrate sufficient financial assurance for the full and fair costs of
compensation and remediation in the event of an accident or other damage, applying the “worst case
scenario” approach, and should ensure the material and technical means for applying necessary
emergency measures.
123
Principle 29
Planning for event horizons (such as thousand-year floods) should take into account an additional buffer
due to the potential effects of climate change, employing a precautionary approach. The historical record
of weather events cannot be considered indicative of future extreme weather events.
Principle 30
Investors should develop the following policies and regulations that protect the health and safety of
workers:



124
Investors should identify scenarios that might endanger workers and take measures to eliminate,
reduce, and control them.
Investors should periodically evaluate the effectiveness of health and safety measures and revise
such measures accordingly.
Investors should develop and implement emergency response plans and procedures in the event
of workers sustaining injuries or being exposed to hazardous substances.
125
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