The mining industry now stands at a critical turning point due to an anticipated rise in mine closures over the next few decades.
With an estimated 80,000 abandoned or former mine sites in Australia — and around 240 more expected to close between 2021 and 2040 — the impacts these closures will have on the environment present a significant concern.
As the resources sector pivots to prioritise environmental concerns, many mining companies are now increasingly pressured to do more than merely comply with regulatory requirements. Instead, their licence to operate (LTO) now involves fulfilling certain responsibilities to the local communities and ecosystems affected by the operations.
Depleting resources, alternating market conditions and the general cyclical nature of the global mining industry form part of the complex factors behind this trend of mine closures.
Approximately 25 per cent of these closures are reportedly due to the exhaustion of economically viable resources.
Shifts in the market can also often render previously profitable mines uneconomical to run — further contributing to these closures.
Other factors such as the collective global transition to clean energy, increasingly stringent environmental standards, and evolving mining technologies have also accelerated this shift.
As many countries continue to progress towards meeting net-zero goals, there has also been a drastic change in the resources being mined.
The energy transition, for example, has prompted companies to move towards the exploration of critical minerals for the development of electric vehicle (EV) batteries.
At the same time, increased responsibilities and regulations for environmental protection have made it more challenging and costly for mines to maintain operations.
This surge in mine closures can inspire drastically positive changes within the industry.
Specifically, it creates a growing demand for innovative solutions to meet all of the environmental, social, and economic challenges that occur when mines shut down.
Additionally, this leads to a growing opportunity for countries like Australia to develop and perfect strategies for mining companies all over the world.
As a new 2024 CSIRO report revealed, this could also promote the growth of a new industry worth billions annually.
Other related approaches include community engagement, waste reduction and recovery, mine rehabilitation, and land use transitions — highlighting the prospect of turning challenges into new ventures in this ever-changing sector.
The cyclical nature of mine sites, from exploration to closure, is known to have significant impacts on both the environment and surrounding communities.
Mining operations inevitably alter landscapes, disrupt ecosystems, and can usually lead to long-term environmental challenges such as acid mine drainage and soil contamination.
These environmental issues often persist even after the closure of the mine, hence companies must continue to manage these sites and provide remediation efforts to ensure that any implications are kept at a minimum.
Mine closures can also devastate local economies and communities that have become dependent on these excavation activities for employment and economic stability.
An abrupt end to mining operations can often lead to population decline, reduced social services and a big change in the local economic structure.
Due to these outcomes, there has been an increasing consensus that the current approach to mine closures needs to urgently be improved upon.
Similar to any other problem, prevention is often the best solution, necessitating an integrated and proactive closure planning process during the early stages of development, which considers all possible repercussions relating to the local environment, community and economy.
Mining companies can risk losing their LTO by neglecting proper environmental management practices, such as effective waste management, habitat conservation, water stewardship and air quality management.
Failure to protect the environment while carrying out operations, disputes with traditional landowners, as well as having a lack of transparency and insufficient engagement with local stakeholders can severely diminish public trust.
Despite the Australian mining industry’s current contributions to the economy and recent improvements in remediation techniques, public perception remains largely negative — effectively highlighting the need for these companies to uphold better communication of accomplishments and be more accountable for any failures.
Ultimately, the loss of a company’s LTO due to environmental failures results in project delays, increased costs, regulatory scrutiny, and possible early closure of operations.
As the mining industry is now pressured to realign priorities, the new challenges that come with the process of mine closures create an opportunity for growth within the sector.
The forthcoming decades will necessitate innovative solutions, collaborative efforts, as well as a commitment to maintain responsible practices.
Through concocting forward-thinking plans for mine closures, investing in site rehabilitation, and aiding affected communities, the industry can discover new opportunities for sustainable growth.
The future of mining involves much more than resource exploration and extraction — it also requires establishing a positive impact that remains long after a mine’s operational life has ceased.
Moving forward, the industry’s ability to adapt and respond to future challenges will be crucial in forging its role in a sustainable global economy.