Case Study
A view of the Phu Kham Copper-Gold Operation in Laos
PanAust – Landscape Restoration in Laos
Mining and landscape impacts
There are a number of potential environmental impacts associated
with exploration or mining activities, but one of the most visible is
the change in landscape in a project area. This can be particularly
visible during resource drilling and open-pit mining where land is
cleared for use and excavation. Landscape and land use changes
can also be associated with environmental impacts such as loss of
habitat, changed hydrology, and contamination of soils and water.
Actions can be taken during the life of a mining project to minimise
impacts to landscape and land use. The rehabilitation of disturbed
areas is an on-going feature of exploration and operations as well
as a key step at the end of operations and the decommissioning
of the project, ensuring the area developed is returned to a state
that meets pre-defined environmental requirements as well as
the expectations of community and government stakeholders.
Disturbed land can be thought of as broadly falling into the following
three categories:
n Permanently
disturbed land – where it is not feasible to
re-establish the landscape, natural features, and land use that
existed before the development.
n Changed land – where post-development land usage
established is different to that of the original.
n Temporarily disturbed land. Where the original land usage can
be re-established.
In reality, all three categories of land are likely to be present within
a mining area, with a variety of solutions post-closure based on
different needs and stakeholder requirements.
This case study looks at the mining company PanAust, where
landscape restoration and rehabilitation is built in to the environmental
management of exploration and open-pit mining operations in Laos.
PanAust company profile in Laos
Laos is a resource-rich country in Asia. Given the value of these
reserves, mining is one of the main industries driving the economic
growth of this developing nation.
PanAust is a leading copper and gold producer in Southeast Asia,
with their main operations located in Laos.
PanAust owns a 90 per cent interest in the Lao-registered company,
Phu Bia Mining; the Government of Laos owns the remaining 10 per
cent.
Phu Bia Mining has a Mineral Exploration and Production Agreement
(MEPA) with the Government of Laos that regulates exploration,
development, and mining within the 2,600 square-kilometre Phu Bia
Contract Area.
Phu Bia Mining’s assets in Laos include the Phu Kham Copper-Gold
Operation and the Ban Houayxai Gold-Silver Operation, both located
at Phu Bia Contract Area. There are also several other Phu Bia
Mining exploration and pre-development projects located within the
Contract Area, including the Boh Tong and Tharkek explorations.
More than 3.4% of Lao GDP was attributable to Phu Bia Mining
activity in 2014.
Landscape restoration planning, actions and management
Change in land use is one of the main areas of impact from
Phu Bia Mining’s operations. In response, Phu Bia Mining has
acknowledged that mining operations often entail a mix of impacts
and have a range of Company-wide visions, standards, policies
and procedures to ensure a mining development delivers well
defined and achievable positive benefits, combined with rigorous
application of adequate management measures for adverse impacts.
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Vision
Whether it be for an exploration site or a larger operation, Phu Bia Mining’s closure
vision is based on providing safe and sustainable land forms. The Company’s closure
vision is to ensure an orderly closure resulting in: a safe and stable site with acid and
metalliferous drainage managed; a self-sustaining natural ecosystem or alternative
land use/s agreed with stakeholders; improved livelihood skills for employees and host
communities (namely, the villages of Nam Gnone, Nam Mo and Naysaysavang) beyond
the life of the mine; and an approved relinquishment strategy.
Strategy
To address landscape and land use impacts, Phu Bia Mining employ a landscape
restoration strategy to reclaim and progressively rehabilitate land after mining and
ore processing. By 2014 the total land disturbed as a result of the Phu Kham mine,
the Ban Houayxai mine, and Phu Bia Mining’s exploration activities in Laos was
1,448 hectares. Of this area, over 76 hectares was rehabilitated by the end of 2014.
The majority of this rehabilitation took place during 2014 itself, with 51 hectares
of land rehabilitated during the year, equivalent to 71 football pitches. A detailed
breakdown on land disturbance and rehabilitation is provided in the table below
The Phu Bia Contract Area
Table: Phu Bia Mining’s land disturbance and rehabilitation (hectares)
2012
2013
2014
Land disturbed and not yet rehabilitated (opening balance)
1,318
1,378
1,378
Land disturbed in reporting year
70
25
35
Land rehabilitated in reporting year
10
25
51
Total land disturbed and not yet rehabilitated (closing balance)
1,378
1,378
1,362
* Includes Phu Kham, Ban Houayxai, and exploration
Management
PanAust focuses on reclaiming and progressively rehabilitating
disturbed land to a standard which aims to minimise environmental
impact and maximise use during and after mining and ore
processing. Both the Phu Kham and Ban Houayxai mines have
these management plans in place, with annual programmes to
rehabilitate land incorporated into each site’s operations. In most
cases achieving full land rehabilitation takes several years, and
PanAust recognises this process within their planning.
As well as planning for progressive land rehabilitation during
operations, planning for land reinstatement following the eventual
mine closure is also a key issue. PanAust considers closure
planning at all stages of the project life cycle, from design through
to mining operations and ultimate decommissioning of the site.
For this purpose, the Company has in place a Closure Standard,
Closure Cost Estimation and Provision Standard and the
Closure Stakeholder Engagement Plan which set out the closure
requirements for all sites.
The Closure Standard governs all aspects of Phu Bia Mining’s
approach to closure. Closure planning sits within the Sustainability
function of Phu Bia Mining, reporting to the General Manager
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External Affairs and Site Support. This is overseen by the Group
Risk function in the PanAust corporate office in Brisbane (Australia)
and Phu Bia Mining’s internal Environmental Management
Committee, with the support of independent international
experts that advise on the technical aspects of closure. PanAust
Sustainability Committee of Board members has overall oversight
of this process. This structure is shown in the following diagram.
Figure: Phu Bia Mining’s closure planning management
structure
PanAust has adopted the International Finance Corporation (IFC)
Performance Standards to adhere to in areas where the domestic
environmental regime is not fully developed. An extensive water
testing regime is in place and tests occur at Phu Bia Mining’s own
water laboratories as well as independent testing laboratories
managed by Australian Laboratory Services (ALS) in Hong Kong.
Phu Bia Mining is externally audited against the IFC Performance
Standards annually, including on its water monitoring and reporting.
The Government of Laos also maintains an Environmental
Monitoring Unit (EMU) based locally and undertakes its own water
monitoring to check on compliance.
PanAust has also established a joint Rehabilitation and Closure
Committee with the Government of Laos. The committee is a
structured engagement forum that aims to align the Company’s
longer term social and rehabilitation programs with community
requirements post mine closure.
Closure plans
Closure plans are in place for both the operational Phu Kham and
Ban Houayxai mines, and are reviewed and updated annually
across the business. Previous mine and exploration closure plans
also include the following:
Ceased operation: Heap Leach gold operation, Laos 2020
To support closure planning and stakeholder engagement, tools
such as conceptual closure flyovers (3D visualisations) were
developed. Actions taken included a move from active to passive
water treatment, in particular the use of activated carbon to
remove contaminates, with the goal of reaching passive discharge
water quality criteria.
PanAust commissioned an international water restoration
specialist during 2014 to design a wetland treatment option for
the next phase of closure, and to provide strategic advice to the
Environmental Committee for the closure plan. The objective was
to remove the need for water treatment and use the physical
properties of wetlands to naturally filter any remaining water
emanating from the heap leach pad. Such a decontamination
process usually takes several years, though monitoring surveys
of the downstream river system during the wet season of 2014
confirmed that water quality was within international and domestic
ambient limits.
Exploration rehabilitation program: Boh Tong and Tharkek, Laos
2015
In 2015, the decision was taken to close a number of exploration
site near Phonsavan, Xieng Khouang Province. A closure plan
was developed and reviewed by various internal and external
review bodies. Final land use agreements were also developed
with stakeholders and land use varied between providing pastoral
land for cattle grazing to planting pine trees indigenous to the
local area and restoring forest cover. Phu Bia Mining worked with
Xieng Khouang’s Closure and Rehabilitation Committee to agree
land use arrangements and facilitate handover based on agreed
milestones.
The open pit at the Ban Houayxai Gold-Silver Operation
Rehabilitation
Both the Phu Kham and Ban Houayxai mines have plant nurseries
to propagate native seedlings for use in rehabilitation. During 2014
a total of 67,708 seedlings were grown for use in land rehabilitation
work.
Phu Bia Mining Environmental Officer tending seedlings at the Phu Kham nursery
One of the challenges PanAust has faced with the revegetation of
disturbed areas is that young seedlings are easily washed away
by heavy rain. Synthetic mats were typically used to prevent such
damage and protect the seedlings, however PanAust took this
further to find a more sustainable approach in 2014.
Phu Bia Mining undertook a number of trials on rehabilitation areas
looking for the best rehabilitation outcomes. Bamboo is a widely
available source of strong fibres which are cheap and cost effective.
Bamboo matting which combines locally available product with
local weaving skills performed very well in terms of both cost and
effectiveness of supporting rehabilitated soils. The mats not only
protect soil from run-off but also decay in a manner that provides
support to the newly established vegetation. The outcome was the
development of bamboo and grass-thatched matting that is made
from local materials and manufactured by local communities.
The mats are as successful in protecting the seedlings and overall
environmental performance as other techniques and are many
times more cost effective. The production of these mats also
generates income for local communities, with 82 families from the
three villages of Ban Phonekeo, Ban Nalao and Ban Natee having
participated in the 2014 programme. Around 90% of those
involved were recorded to be local women.
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Resources
International Finance Corporation (IFC) Environmental, Health,
and Safety Guidelines, Mining (December 2007): http://www.ifc.
org/wps/wcm/connect/1f4dc28048855af4879cd76a6515bb18/
Final%2B-%2BMining.pdf?MOD=AJPERES&id=1323153264157
International Finance Corporation (IFC) Performance Standard
1: Assessment and Management of Environmental and Social
Risks and Impacts (2012): http://www.ifc.org/wps/wcm/conne
ct/3be1a68049a78dc8b7e4f7a8c6a8312a/PS1_English_2012.
pdf?MOD=AJPERES
Production of bamboo grass-thatched mats occurs in villages close to Phu Bia
Mining’s operations
Conclusion and learning
The PanAust case study demonstrates the application of
environmental best practice through the integration of closure
planning throughout their operations. Such practices safeguard
against environmental risk and liabilities, as well as providing
opportunities for further engagement with communities and
government, and providing livelihoods, as well as improving
relationships and building trust.
Information sources
2014 PanAust Business Review & Sustainability Report
2014 What Does Phu Bia Mining Contribute To Laos?
2015 Phu Bia Mining Frequently Asked Questions
2015 Phu Bia Mining Annual Review and Sustainability Report
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International Council on Mining and Metals – Planning for
Integrated Mine Closure: Toolkit: https://www.icmm.com/
document/310
Government of Western Australia, Department of Mines and
Petroleum Environmental Protection Agency – Guidelines for
Preparing Mine Closure Plans (May 2015): http://www.dmp.
wa.gov.au/Documents/Environment/ENV-MEB-121.pdf
Photos courtesy PanAust
Oxfam supported the production of this case study.
The information included is provided by the company of
interest and does not signify endorsement or assurance
by Oxfam.