Volume II Appendices
EIA Technical Review Guidelines:
Non-Metal and Metal Mining
Regional Document prepared under the CAFTA DR Environmental Cooperation
Program to Strengthen Environmental Impact Assessment (EIA) Review
Prepared by CAFTA DR and US Country EIA and Mining Experts with support from:
USAID
FROM THE AMERICAN PEOPLE
USAID ENVIRONMENT AND LABOR
EXCELLENCE FOR CAFTA-DR PROGRAM
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This document is the result of a regional collaboration under the environmental cooperation
agreements undertaken as part of the Central America and Dominican Republic Free Trade Agreements
with the United States. Regional experts participated in the preparation of this document, however,
the guidelines do not necessarily represent the policies, practices or requirements of their governments
or organizations.
Reproduction of this document in whole or in part and in any form for educational or non-profit
purposes may be made without special permission from the United States Environmental Protection
Agency (U.S. EPA), Agency for International Development (U.S. AID), and/or the Central American
Commission on Environment and Development (CCAD) provided acknowledgement of the source is
included.
EPA/315R11002B May 2011
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EIA Technical Review Guidelines:
Non-Metal and Metal Mining
Volume II
The EIA Technical Review Guidelines for Non-Metal and Metal Mining were developed as part of a
regional collaboration to better ensure proposed mining projects undergoing review by government
officials, non-governmental organizations and the general public successfully identify, avoid, prevent
and/or mitigate potential adverse impacts and enhance potential beneficial impacts throughout the life
of the projects. The guidelines are part of a broader program to strengthen environmental impact
assessment (EIA) review under environmental cooperation agreements associated with the "CAFTA-DR"
free trade agreement between the United States and five countries in Central America and the
Dominican Republic.
The guidelines and example terms of reference were prepared by regional experts from the CAFTA-DR
countries and the United States in both the government organizations responsible for the environment
and mining and leading academics designated by the respective Ministers supported by the U.S. Agency
for International Development (U.S. AID) contract for the Environment and Labor Excellence Program
and grant with the Central America Commission for Environment and Development (CCAD). The
guidelines draw upon existing materials from within and outside these countries and from international
organizations and do not represent the policies, practices or requirements of any one country or
organization.
The guidelines are available in English and Spanish on the international websites of the U.S.
Environmental Protection Agency (U.S. EPA), the International Network for Environmental Compliance
and Enforcement (INECE), and the Central American Commission on Environment and Development
(CCAD): www.epa.gov/oita/ www.inece.org/ www.sica.int/ccad/ Volume 1 contains the guidelines
with a glossary and references which track with internationally recognized elements of environmental
impact assessment; Volume 2 contains Appendices with detailed information on mining, requirements
and standards, predictive tools, and international codes; and Volume 1, part 2 contains example Terms
of Reference cross-linked to Volumes 1 and 2 for exploration and exploitation for non-metal and metal
mining projects respectively for use by the countries as they prepare their own EIA program
requirements.
USAID
FtOM THE AMERICAN PEOPLE
USAID ENVIRONMENT AND LABOR
EXCELLENCE FOR CAFTA-DR PROGRAM
CCAD
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining TABLE OF CONTENTS
TABLE OF CONTENTS
APPENDIX A. WHAT IS MINING?.
1 INTRODUCTION
2 EXTRACTION METHODS
2.1. Surface or Open-Pit
2.2. Underground
2.3. Solution Mining
3 BENEFICATION
3.1. Milling
3.2. Amalgamation
3.3. Flotation
3.4. Leaching
3.5. Other Processing
4 WASTE
4.1. Waste Geological Material
4.2. Mine Water
4.3. Concentration Wastes
4.4. Mineral Processing Wastes
1
1
2
3
4
4
4
4
5
5
6
6
6
7
7
APPENDIX B. OVERVIEW Of MINING INDUSTRY ACTIVITY IN CAFTA-DR COUNTRIES
1 REGIONAL OVERVIEW
2 CAFTA-DR COUNTRY OVERVIEWS _ 15
2.1. Costa Rica _ 15
2.2. Dominican Republic _ 17
2.3. El Salvador _ 20
2.4. Guatemala _ 22
2.5. Honduras _ 25
2.6. Nicaragua _ 28
APPENDIX C. REQUIREMENTS AND STANDARDS WITHIN CAFTA-DR COUNTRIES, OTHER
COUNTRIES AND INTERNATIONAL ORGANIZATIONS _ 31
1 INTRODUCTION TO ENVIRONMENTAL LAWS, STANDARDS AND REQUIREMENTS _ 31
2 AMBIENT STANDARDS FOR AIR AND WATER QUALITY _ 34
3 MINING SECTOR-SPECIFIC PERFORMANCE STANDARDS _ 40
3.1. WATER DISCHARGE /EFFLUENT LIMITS FOR THE MINING SECTOR _ 43
3.2 Supplemental U.S. Water Discharge/effluent limits for the Mining Sector _ 43
3.3. STORMWATER RUNOFF REQUIREMENTS FOR THE MINING SECTOR _ 47
3.4. Air Emission Limits for the Mining Sector _ 52
3.5. Mining Sector Solid Waste _ 54
4 INTERNATIONAL TREATIES AND AGREEMENTS _ 55
5 MINING SECTOR WEBSITE REFERENCES _ 57
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APPENDIX D. EROSION AND SEDIMENTATION 59
1 GOALS AND PURPOSE OF THE APPENDIX 59
2 TYPES OF EROSION AND SEDIMENT TRANSPORT 59
2.1. Interrill and Rill Erosion 60
2.2. Gully Erosion 60
2.3. Stream Channel Erosion 60
2.4. Mass Wasting, Landslides and Debris Flows 61
3 MINING-RELATED SOURCES OF EROSION AND SEDIMENTATION 61
4 METHODS TO MEASURE AND PREDICT EROSION AND SEDIMENTATION 62
4.1 Gross Erosion 62
4.2 Sediment Yield 64
4.3 Suspended Load and Sedimentation 65
4.4. Software and Watershed Models for Prediction of Sediment Yield 66
5 REPRESENTATIVENESS OF DATA 69
6 METHODS TO MITIGATE EROSION AND SEDIMENTATION 70
6.1. Best Management Practices (BMPs) Categories 71
6.2. Innovative Control Practices 76
7 SUMMARY 77
8 REFERENCES 77
8.1. Cited References 77
8.2. Additional References 78
APPENDIX D-2 RULES OF THUMB FOR EROSION AND SEDIMENT CONTROL 81
APPENDIX E. CARD GUIDE (ACID ROCK DRAINAGE) 95
1 INTRODUCTION 95
2 FORMATION OF ACID ROCK DRAINAGE 97
3 FRAMEWORK FOR ACID ROCK DRAINAGE MANAGEMENT 99
4 CHARACTERIZATION 100
5 PREDICTION 103
6 PREVENTION AND MITIGATION 106
7 ACID ROCK DRAINAGE TREATMENT 109
8 ACID ROCK DRAINAGE MONITORING 110
9 ACID ROCK DRAINAGE MANAGEMENT AND PERFORMANCE ASSESSMENT 113
10 ACID ROCK DRAINAGE COMMUNICATION AND CONSULTATION 114
11 SUMMARY 116
12 REFERENCES 116
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APPENDIX f. SAMPLING AND ANALYSIS PLAN 117
1 INTRODUCTION 117
1.1. Site Name or Sampling Area 117
1.2. Responsible Organization 117
1.3. Project Organization 117
1.4. Statement of the Specific Problem 118
2 BACKGROUND 118
2.1. Site or Sampling Area Description [Fill in the blanks.] 118
2.2. Operational History 118
2.3. Previous Investigations/Regulatory Involvement 119
2.4. Geological Information 119
2.5. Environmental and/or Human Impact 119
3 PROJECT DATA QUALITY OBJECTIVES 119
3.1. Project Task and Problem Definition 119
3.2. Data Quality Objectives (DQOs) 119
3.3. Data Quality Indicators (DQIs) 119
3.4. Data Review and Validation 121
3.5. Data Management 121
3.6. Assessment Oversight 121
4 SAMPLING RATIONALE 121
4.1. Soil Sampling 121
4.2. Sediment Sampling 121
4.3. Water Sampling 122
4.4. Biological Sampling 122
5 REQUEST FOR ANALYSES 122
5.1. Analyses Narrative 123
5.2. Analytical Laboratory 123
6 FIELD METHODS AND PROCEDURES 123
6.1. Field Equipment 123
6.2. Field Screening 123
6.3. Soil 124
6.4. Sediment Sampling 126
6.5. Water Sampling 127
6.6. Biological Sampling 130
6.7. Decontamination Procedures 131
7 SAMPLE CONTAINERS, PRESERVATION AND STORAGE 132
7.1. Soil Samples 132
7.2. Sediment Samples 133
7.3. Water Samples 133
7.4. Biological Samples 135
8 DISPOSAL OF RESIDUAL MATERIALS 135
9 SAMPLE DOCUMENTATION AND SHIPMENT 136
9.1. Field Notes 136
9.2. Labeling 138
9.3. Sample Chain-Of-Custody Forms and Custody Seals 138
9.4. Packaging and Shipment 138
10 QUALITY CONTROL 139
lO.l.Field Quality Control Samples 139
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10.2.Background Samples 144
10.3.Field Screening and Confirmation Samples 144
10.4.Laboratory Quality Control Samples 145
11 FIELD VARIANCES 146
12 FIELD HEALTH AND SAFETY PROCEDURES 147
APPENDIX G. INTERNATIONAL CYANIDE CODE 149
1 SCOPE 150
2 CODE IMPLEMENTATION 150
3 PRINCIPLES AND STANDARDS OF PRACTICE 151
4 CODE MANAGEMENT 153
5 ACKNOWLEDGEMENTS 157
APPENDIX H. WORLD BANK FINANCIAL SURETY 159
1 INTRODUCTION 159
2 FINANCIAL SURETY INSTRUMENTS 164
2.1. Letter of Credit 164
2.2. Surety (Insurance) Bond 164
2.3. Trust Fund 166
2.4. Cash, Bank Draft or Certified Check 166
2.5. Company Guarantee 166
2.6. Insurance Scheme 168
2.7. Unit Levy 168
2.8. Sinking Fund 169
2.9. Pledge of Assets 169
2.10. Fund Pool 169
2.ll.Transfer of Liability 169
3 CASE STUDIES 169
3.1. ONTARIO 169
3.2. NEVADA 172
3.3. QUEENSLAND 175
3.4. VICTORIA 177
3.5. BOTSWANA 180
3.6. GHANA 181
3.7. PAPUA NEW GUINEA 182
3.8. SOUTH AFRICA 185
3.9. SWEDEN 187
3.10.EUROPEAN UNION 188
4 DISCUSSION BASED ON CASE STUDIES 190
5 IMPLEMENTATION GUIDELINES 196
6 AFTERTHOUGHTS 205
7 REFERENCES 207
ANNEX H-l WEB SITES 210
ANNEX H-2 LETTER OF CREDIT TEMPLATE 212
ANNEX H-3 SURETY BOND TEMPLATE 213
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Appendices: Non-Metal and Metal Mining
APPENDIX A. WHAT IS MINING?
1 INTRODUCTION
There are several steps or phases in a successful mining operation:
Extraction is the first phase of hardrock mining which consists of the initial removal of ore either by
open pit or underground.
Beneficiation is the next step, and the initial attempt at liberating and concentrating the valuable
mineral from the extracted ore. Depending on the grade of the ore removed from the mine, ore may be
initially crushed, then either processed further by concentration through heap leaching or other
methods. Beneficiation employs one or more methods to separate material into two or more
constituents, at least one of which is the desired product. These methods are used to prepare ores for
further intensive processing and use the differences between the physical properties of the various
minerals in the ore to concentrate the target mineral.
Following beneficiation, the valuable minerals can be further concentrated through a variety of
pyrometalurgical or hydrometallurgical processes. Pyrometalurgical processes involve placing ore
concentrates in smelters where they are melted to create a final metal product. Most new metal
facilities are no longer using smelters and are relying on hydrometallurgical processes (the best known is
cyanide tank leach with electrowinning followed by melt furnaces).
Hydrometalurgical processes take an ore concentrate and combine it with a wide variety of chemicals to
form a metal rich solution, which is then solvent-extracted and electrowinned into a final metal. The
mineral may be extracted by dissolution in large tanks and then recovered by chemical processes.
Gold may be recovered from ore by heap leaching, performed by stacking the ore and applying cyanide
solutions directly through a sprinkler or drip type system. The solutions then percolate through the ore,
dissolving the metals. The metal-laden (pregnant) solution is collected at the base of the pile (heap) and
pumped to a processing plant where the metal is recovered from the liquid. Many new gold mines no
longer use heap leaching and are designed to concentrate the gold out of the ore by leaching the ore
within tanks. This design is more environmentally sound than heap leaching.
2 EXTRACTION METHODS
There are two basic ways in which minerals are mined (extracted) - surface or open pit mining and
underground mining. The choice of an extractive method depends on the local topography; depth and
type of mineral being mined; the shape, size and location of the ore body; and cost considerations.
Solution mining (in-situ leaching) is a specialized, less common process used on certain types of metal
and sulfide ore deposits.
2.1 SURFACE OR OPEN-PIT
A surface mine generally consists of a large open-pit dug into the earth or along the side of hill or
mountain with very high pit walls. This kind of mine is the least expensive kind, and is every miner's first
choice where an ore body is situated close to surface, is big enough, and has little overburden. Open-pit
mines look simple, but every pit needs to be tailor made. First and foremost, the pit walls have to be
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stable and stay up, so it is important to understand the rock-mechanics of the pit walls to determine a
safe slope for the pit. There is also a delicate balance between how much overburden and waste rock
can be mined in order to gain access to the valuable ore and how deep a pit can be.
An open-pit mine is constructed in a series of benches, decreasing in size from the surface to the bottom
of the mine. The size and location of the first bench of any open pit mine is critical. It is excavated well
into the rock surrounding an ore body. Since each successive bench is smaller than the one that was
removed above it, the depth to which the pit can be mined is determined by the size and location of the
first cut or bench.
Surface mining requires the removal and disposal of a layer of soil and rock containing no minerals,
commonly called the overburden. A second layer of rock, known as waste rock, containing low
concentrations of ore is also removed and, depending on the ore content, is either processed or
disposed. The ratio between the tonnage of waste to ore is known as the stripping ratio. The lower this
ratio the less waste rock that has to be removed and the lower the operating costs.
After the overburden and waste rock are removed to expose the ore body, ore is drilled, blasted, loaded
into trucks and hauled to the appropriate facility for disposal, beneficiation, or processing. Once the
high-quality deposit is exposed, excavation continues, with further disposal of surrounding low-grade
waste rock, until the valuable body of ore has been removed. After initial crushing and grinding, the
high-quality ore is then transported to the mill for further processing. Lower grade ore may be
transported to a heap leach pad where a solution is applied to release the mineral from the rock.
The main cost advantage of open pit mining versus underground is that the miners can use large and
more powerful shovels and trucks, because the equipment is not restricted by the size of the opening it
must work in. This allows faster production, and the lower cost also permits lower grades of ore to be
mined.
If an ore body is large, and extends from surface to great depth, it is common to start mining near the
surface from an open pit. This provides some early revenue while preparations are made for
underground mining of the deeper parts of the ore body. It is not uncommon for ore below the floor of
an open pit to be developed from underground by driving a ramp (adit) from the lower part of the pit.
2.2 UNDERGROUND
Underground mining methods are used when mineralized rock occurs deep beneath the earth's surface.
To reach the ore body, remove ore and waste, and provide ventilation, miners must excavate either a
vertical shaft, a horizontal adit, or an inclined passageway. Within the ore deposit, horizontal passages
call drifts and crosscuts are developed on several levels to access mining areas called stopes. Blasted
rock is hauled away by trains, loaders, or trucks that may bring it directly to the surface or transport it to
a shaft where it is hoisted to the surface and sent to a crushing facility.
There are three basic types of underground mining methods, the selection of which is dependent on the
shape of the ore body. These methods are:
Stoping -These underground operations involve sinking a vertical shaft or driving a horizontal adit, both
of which provide access to the ore body. This type of extraction technique is best adapted to steeply
dipping vein-type deposits.
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Room-and-pillar mining - In this process, ore is mined in two phases, the first phase involves driving
large horizontal drifts (called rooms) parallel to each other and smaller drifts perpendicular to the
rooms. Once the mine reaches the end of the ore body, the second phase of operations may begin to
recover the ore left behind in the pillars between the smaller, perpendicular drifts. These operations are
best for deposits that are horizontal.
Block caving - The block-caving method of mine development utilizes the natural forces of gravity to
cause the ore to break on its own accord without being drilled and blasted. A typical block-caving mine
is developed by first driving a series of parallel haulage drifts below the ore body. From the haulage
drifts, a series of holes are driven up into the ore body at a 45-degree angle. The holes are drilled in
sufficient quantity until the structure of the drilled portion of the ore body is weakened enough so that
gravity causes it to fall into the underlying drifts. The ore is collected from the drifts and removed using
loaders.
Generally, ore bodies are either vein type, massive or tabular in shape. This together with ore thickness
and regularity will influence the mining method selected.
Vein type ore bodies usually dip steeply, allowing ore to fall to a lower mining level where it
can be loaded. The ore bodies are usually narrow and often irregular, so care must be taken
to avoid mining barren wall rock. They are most successfully mined by small-scale
underground stoping.
Massive ore bodies are large and usually have an irregular shape. Underground bulk mining
methods, with large stopes, are best suited to this type of ore body.
Tabular ore bodies are flat or gently dipping and the ore, having nowhere to fall, must be
handled where it is blasted. Room and pillar mining is normally used to extract the ore.
Depending on the thickness and lateral extent of the ore, these types of deposits tend to be
moderate-to high tonnage producers.
The strength of the ore and the rocks surrounding an ore body also influence the method. Openings
may be supported or self-supported. Some supported openings are held up by backfill, waste rock or
aggregate placed in the openings shortly after they are mined out. In the past, miners often supported
walls and ceilings in underground mines ("workings") with "sets" made of timber or steel. This kind of
mining, however, is costly and is little used today. To support open workings in modern mines, it is
more usual to inset steel rock bolts, to use bolt to secure a network of steel straps or screens, or to
apply quick-setting concrete to the back and sides of openings.
If walls and pillars are of sufficient strength to carry both the weight of rock above them and the
horizontal stresses in the rock caused by tectonic forces, workings can be self-supporting, although the
miner may add strength and stability with rock bolts and screens. In massive ore bodies, it is common to
plan for the mining of pillars. This is done by backfilling the mined out stopes to provide the necessary
support when pillars are mined.
2.3 SOLUTION MINING
Solution mining or in situ leaching is an alternative to the underground and surface techniques
described above. Its use for the mining of metal oxide and sulfide ores has increased since 1975.
Solution mining involves drilling and pumping a dilute sulfuric acid or other reagent solution directly into
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the below ground ore body. The reagent dissolves the metals in the ore and the solution is collected by
various means such as wells or sumps. It is then pumped to the surface and recovered using
electrical/chemical techniques.
Solution mining has enabled facilities to beneficiate lower-grade sulfide and oxide ores. Solution mining
presents unique environmental challenges since it requires constant management of solutions deep
underground.
3 BENEFICIATION
Mined ore, with a few exceptions, must be beneficiated before further processing. Beneficiation,
commonly referred to as milling, is the processing of ores to regulate the size of a desired product,
remove unwanted constituents, and/or improve the quality, purity or assay grade of a desired product.
Processing methods range from simple crushing, washing, screening and drying, to highly complex
methods used to process copper, lead, zinc, silver, and gold ores.
3.1 MILLING
The first step in beneficiation is milling. Typically, this is accomplished by a series of size reduction
operations - commonly referred to as crushing and grinding. Crushing is the first step in the process. It
is performed on the mined ore and may be done in two or three stages. Primary crushing systems
consist of crushers, feeders, dust control systems, and conveyors used to transport ore to coarse ore
storage. Size separators (such as screens and griddles) control the size of the feed material between the
crushing and grinding stages. Griddles are typically used for very coarse material. Screens mechanically
separate ore sizes using a slotted or mesh surface that acts as a "go/no go" gauge. Vibrating and shaker
screens are commonly used as separators.
After the crushing, the ore is ground. Grinding is the last stage in milling. Most facilities use a
combination of rod and ball mills to grind ore. Depending on the particular process being used at the
mine, the crushed ore may be ground as a slurry or as a dry material. Ground material is also screened
to achieve the desired size and uniformity, usually between 20 and 200 mesh. After the final screening,
if the ore has been ground as a dry material, water is added to the form a slurry.
3.2 AMALGAMATION
Gold and some other precious metals will amalgamate when brought into contact with metallic mercury
- meaning that the liquid mercury will alloy with the surface gold to form a mercury-coated particle
which has surface properties similar to those of pure mercury. The amalgamated particles will coalesce
and cling together, similar to drops of pure mercury, and will collect into a single puddle. When mercury
has amalgamated as much gold as possible, a gray plastic mass will form. Heating this mass distills off
the mercury leaving behind metallic gold. This method exposes both the workers and the environment
to mercury and is viewed as not a state-of-the-art approach to mining gold. The only use of mercury
currently is limited to very small scale commercial or artisanal gold mining.
3.3 FLOTATION
Metals can also be concentrated through flotation, a method of mineral separation in which a number
of reagents selectively float or sink finely crushed minerals in an enclosed floatation cell. These
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separation techniques use physical and chemical properties of the target minerals along with process
chemicals to separate relatively pure minerals from remaining wastes. The wastes are then discarded
along with the liquids used in the process. The solid mine waste from flotation are discarded as mine
tailings in a pond or impoundment. Tailings often contain a wide range of metals not recovered in the
ore concentrate. The disposal of tailings may pose specific environmental challenges since tailings may
leach metals into the environment or due to the sulfide content of tailings, they may generate acid rock
drainage which accelerates the leaching of metals from the tailings.
3.4 LEACHING
Some ores are more amenable to be leached to recover low concentrations of metals. Many copper and
gold mines use forms of leaching. All leaching methods involve percolating a solution or reagent.
There are four main types of leaching: dump, heap, vat, and in situ (discussed above under Solution
Mining). In each type, the basic components of the process are deposits of low grade ore, a leaching
solution, and a holding/recovery area used to extract the desired metal from the solution. The leaching
process chosen depends on the concentration of metals in the ore and economics of the mining
operation. For instance, dump leaching is often used on copper ore with 0.05 percent of more copper
content, while heap leaching is used for higher grade ores with copper concentrations between 0.5 and
1.0 percent. Gold mining uses both heap leaching and vat leaching.
Dump leaching is a widely used leaching process in copper mining, and may cause the most
environmental damage. This process involves the dumping of ore into large piles (dumps) of crushed
and uncrushed low grade ore that cannot be profitably processed through other methods. These leach
dumps often reach heights of up to 60 meters and can contain several million metric tons of rock.
Precipitation and additional acidic leach solution is used to dissolve the desired minerals into solution.
The leaching solution is sprayed, injected, and/or washed over the dump pile, and solution is collected in
ditches that drain to ponds.
Heap leaching is a modified form of dump leaching often conducted on a smaller scale and with higher-
grade ore. The ore is usually crushed and placed on a specially prepared pad made of synthetic
material, asphalt, or compacted clay. Reagents are used as the leaching solution, typically composed of
strong acids or bases for base metals or cyanide for precious metals.
Vat leaching treats the highest grade ore of any leaching process and involves placing crushed ore into
an enclosed vat of reagents (rather than percolating the reagent solution through the ore).
In all leaching processes, the desired metals must be recovered from the leaching solution. The leaching
solution containing dissolved metals is pumped from a holding pond (or from holding tanks) to a
removal plant. Metals are recovered from the solution using chemical or electrical processes. Once the
metal has been removed from the leach solution, the solution is typically reconstituted and used again
in the leaching process.
3.5 OTHER PROCESSING
Metals exist in nature as either sulfide or oxide compounds. These compounds must be reduced to
extract metal. This reduction can be carried out through either electrolytic or chemical processes, or a
combination of both. Chemical reduction includes reductive smelting and autoclave hydrogen
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reduction. Electrolytic reduction (electrowinning) consists of simply passing a current through a
dissolved or molten metal oxide to produce the neutral metal. Before reduction, it is often necessary to
separate the metal compounds from the raw ore.
Separation can be done using froth flotation, gravity concentration, electrostatic separation, or
magnetic separation. Froth flotation uses various reagents to separate particles. Hydrophobic particles
are recovered in the froth and hydrophilic particles are discharged into the tailings. Different kinds of
ores use different kinds of reagents. Oxide ores can be separated using oxalic acid whereas sulfide ores
are recovered using xanthate or dithiophosphate type collectors. Because the specific gravity of most
metals is higher than the sounding rock, metals can also be separated using shaking tables, centrifugal
concentrators, or other methods which depend on gravity for separation. Electrostatic and magnetic
concentrators use the electric or magnetic properties of the particles to separate the metals.
Electrowinning is another process that can then be used to reduce metals. In this process, a current is
passed from an inert anode through a liquid leach solution containing the metal so that the metal is
extracted as it is deposited in an electroplating process onto the cathode. Chemical reduction can be
carried out in a variety of processes, including reductive smelting- the process of heating an ore with a
reducing agent (often coke or charcoal) and agents to separate the pure molten metal from the waste
products. Some other processes for chemical reduction include autoclave hydrogen reduction and
converting.
4 WASTE
In the extraction and beneficiation processes there are several waste products. These are described as
follows:
4.1 WASTE GEOLOGICAL MATERIAL
Mining operations generate two types of waste, overburden/waste rock and mine development rock.
Overburden/waste rock results from the development of surface mines, while mine development rock is
a byproduct of mineral extraction in underground mines. The quantity and composition of waste varies
greatly between sites, but these wastes will contain minerals associated with both the ore and host
rock. Overburden/waste rock is usually disposed of in unlined piles, while mine development rock may
be used on-site for road or other construction (if it is found not to leach metals). Mine development
rock may also be stored in unlined on-site piles or in underground openings (if it also is found not to
leach metals to the environment). Waste piles may be referred to as mine rock dumps or waste rock
dumps.
The location and design of the dumps need to be controlled and protected from erosion and
sedimentation. Runoff and leachate from waste rock dumps may contain heavy metals, and these piles
may generate acid drainage if sufficient amounts of sulfide minerals and moisture are present. The
generation of acid drainage is one of the most significant environmental challenges in modern mining.
4.2 MINE WATER
Mine water includes all water that collects in surface or underground mines from groundwater seepage
or inflow from surface water or precipitation. While a mine is operational, excess water must be
pumped out to keep the mine dry and allow access to the ore body. There are two ways for controlling
mine water: pumping from ground water wells to lower the water table or pumping directly from the
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mine workings. The recovered water may be used in beneficiation and dust control, pumped to tailings
or mine water ponds, or discharged to surface water (if it meets discharge standards).
The composition and quantity of mine water varies among mining sites due to local conditions and the
type of strata and ore. The chemical composition of mine water depends on the geochemistry of the
ore body and the surrounding area. Mine water may also be contaminated with small quantities of oil
and grease from mining equipment and nitrates from blasting operations. After a mine is abandoned,
pumping is usually stopped, allowing the pit or workings to fill with water if the mine is below the pre-
mining water table. Through aeration and contact with sulfide minerals, the accumulated water can
acidify and become contaminated with heavy metals, as well as dissolved and suspended solids. Even in
non-acidic waters, metals and metalloids such as antimony, arsenic, mercury, and others can be
released depending of the pH condition of the water. Over time, this may lead to uncontrolled releases
of mine water to surface waters and groundwater, as well as result in the formation of post-mining pit
lakes that pose risks to waterfowl and other biological resources.
4.3 CONCENTRATION WASTES
Beneficiation operations used to concentrate mineral ores generate various types of wastes. Flotation
systems discharge tailings consisting of liquids and solids. The solids include mostly rock material of
little value and small amounts of unrecovered accessory minerals. The liquid component consists of
water, dissolved solids, and reagents not consumed during flotation. The reagents may include cyanide,
which is used as a depressant in certain flotation operations. Flotation wastes are generally sent to lined
tailings ponds, in which solids settle out. The clarified liquid may be recycled to the mill or discharged,
provided it meets water quality standards. The characteristics of flotation tailings vary considerably,
depending on the ore, reagents, and processes used. Other types of beneficiation wastes include waste
slurries from milling and gravity concentration steps.
The proper design, operation and closure of tailings ponds present another environmental management
challenge. The water that accumulates in tailings ponds contains many pollutants and can be extremely
toxic to wildlife. Many mines are no longer using wet deposition of tailings and now dispose tailings
using a "dry" disposal where most of the water is removed from the tailings and the tails are then placed
on the ground, rolled and compressed and stacked. Such a disposal option effectively eliminates long
term water management issues related to traditional wet deposition.
4.4 MINERAL PROCESSING WASTES
Wastes from traditional smelting operations include various forms of slag, air pollution control dusts,
furnace brick and a range of smaller quantity hazardous waste liquids. Most slag contains higher
concentrations of metals but they are mostly bound in the slag. Some slags may be reused for
construction purposes. Smelter air pollution dusts are often very high in metals content and in some
circumstances can be placed back through the smelter with the ore concentrate. Metals emitted to the
air from smelters, if not properly controlled, can cause serious environmental damage to human health
and the environment through air, water, and soil pathways.
Wastes from hydrometallurgical operations include spent solvents from the solvent extraction portion
of the process. In some cases spent solvent is blended with clean solvent and reused in the process.
Some spent solvent is routinely removed and disposed of to maintain the quality of the solvent. The
electrowinning tanks also generate spent electrolyte which like solvent can be reused if mixed with new
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fresh electrolytes. Some electrolyte is also disposed. Electrowinning also generates tank slimes which in
the case of copper may contain precious metals. In that case slimes and sludges are collected and
shipped offsite for precious metals recovery. Other forms of electrowinning generate slimes or sludges
that must be disposed.
Many hydrometallurgical waste streams may be hazardous and must be handled and properly treated
and disposed of. Ancillary hazardous wastes may be generated at on-site laboratories and include
chemicals, liquid samples, and ceramics/crucibles which are disposed of off-site at commercial
hazardous waste facilities. Other hazardous wastes may include spent paints and solvents generated
from facility maintenance operations, spent batteries, asbestos, and polychlorinated biphenyls (PCBs)
from electrical transformers. Waste oil also may be generated, and might be hazardous. Non-
hazardous wastes are likely to include sanitary wastewater, power plant wastes and refuse.
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Appendices: Non-Metal and Metal Mining
APPENDIX B. MINING IN CAFTA-DR COUNTRIES
This paper presents a brief overview of mineral extraction in CAFTA-DR countries. It is divided into three
sections. The first sections present a general comparison in terms of mineral production in the
countries. The second section is a brief overview of mineral extraction in each of the 6 countries. The
final section contains a list of references used in this report.
1 REGIONAL OVERVIEW
The mineral extraction industries of CAFTA-DR produce a variety of metals and industrial minerals. In
the metals mining sector, antimony, gold, iron ore, lead, silver, nickel and zinc are being produced.
Industrial production includes clays, gypsum, limestone, marble, pozzolan, pumice, salt and common
sand and gravel (Anderson, 2008, Bermudez-Lugo, 2008). Table C-l presents a country-by-country
comparison of the minerals extracted in the CAFTA-DR region.
In the metals mining sector, there are relatively few large active mines (Table C-2). These mines are
either underground or surface/open pits mines. Most active mines are milling and extracting the metals
on-site with a marked increase in production of gold, and to a lesser extent silver, between 2002 and
2006 in the CAFTA-DR region (see Figure B-l).
Current investment in the region's metals mining sector is mainly focused on discovering and developing
gold deposits that lie mostly along the Central American Gold Belt (CAGB). The CAGB extends
southeastward from western Guatemala (the Marlin deposit) across Guatemala (the Cerro Blanco
deposit), through central El Salvador, southern Honduras, Nicaragua, and into western Costa Rica (the
Crucitas deposit) (Anderson, 2008). Exploration also dominates the metals mining sector activities in the
Dominican Republic. Figure B-2 presents a bar chart and table based on the Mines and Quarry Database
of current exploration activities by country for various metal commodities.
As for industrial minerals, crushed stone, limestone, and other aggregates dominate mineral production
in each of the CAFTA-DR countries. Mining of these minerals normally takes place in quarries (similar to
open-pit mines) and in some cases in dredging operations. At this time, little information is publically
available to indicate the exact nature of the quarrying operations or the number of operations per
country. Based on USGS Minerals Yearbook 2006, regional trends for the various industrial minerals are
variable as illustrated in Figures B-3 and B-4; however, general production rates for limestone and
sand/gravel operations have remained relatively steady, at least between 2002 and 2006. In contrast,
there has been a steady production increase for clays and gypsum and a decrease in salt production,
with lime remaining quite constant in the CAFTA-DR countries.
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Table B-1: Extractive Mineral Industries in CAFTA-DR Countries (Anderson, 2008 and Bermudez-Lugo,
2008)
Country
Costa Rica
Dominican
Republic
El Salvador
Guatemala
Honduras
Nicaragua
Industrial Minerals
Bauxite
Barite
Coal
Amber
Clay
Diatomite
Gypsum
Lignite
Lime
Limestone
Marble
Pectolite (larimar)
Phosphatic
Pumice (pozzolan)
Salt (Marine)
Silica Sand
Sand and Gravel
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Metals
Iron ore
Copper
Cadmium
Nickel
Gold
Lead
Nickel
Silver
Zinc
Molybdenum
Other Minerals
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Table B- 2: Number and Types of Metal Mines in CAFTA-DR Countries (Source: Mqdata.com)
Commodity
Antimony
Copper
Gold
Lead
Molybdenum
Nickel
Silver
Zinc
Costa Rica
1 S/U 1 U
1S/U
Dominican
Republic
IS
IS
Guatemala
IS
2 S/U
IS
Honduras
IS
3S
1U
1U
1U
Nicaragua
2 S/U IS
U = Underground S = Surface/Open pit S/U = Open pit and underground
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Figure B-1: CAFTA-DR Region Gold and Silver Production Trends (Anderson, 2008 and Bermudez-Lugo,
2008)
1 Annn
1 9nnn
mnnn
c annn
'B
3 cnnn
E
Q. Annn
onnn
^^ Silver
Gold
_x 1
/
- S
m "" 1
2002 2003 2004 2005 2006
2198 2040 2950 2999 2929
8888 7933 7998 8853 12531
Figure B- 2: CAFTA-DR Region Metal Exploration Projects (Anderson, 2008 and Bermudez-Lugo, 2008)
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Figure B- 3: CAFTA-DR Region - Limestone and Sand/Gravel Production Trends (Anderson, 2008 and
Bermudez-Lugo, 2008
tr 20000
o 18000
| 16000
| 14000
-° 12000
| 10000
.i 8000
c 6000
B 4000
-g 2000
1 o
Limestone and
Dolomite
^^ Sand and Gravel
~
^f
"^\ ^Z
^s
2002 2003 2004 2005 2006
8360 9121 8659 4942 9754
18684 17392 16473 16734 17361
Figure B- 4: CAFTA-DR Region - Industrial Mineral Production Trends (Anderson, 2008 and Bermudez-
Lugo, 2008
£ 900,000
o 800,000
£ 700,000
| 600,000
500,000
% 400,000
= 300,000
E 200,000
100,000
0
Clays
Gysum
Lime
Salt
2002
519,882
297779
126898
338540
2003
550,821
373449
115234
299674
2004
657,652
613287
113882
141400
2005
751,558
767899
112578
141400
2006
728,448
635832
112751
130000
The significance of each of these extracted minerals to the economies of each CAFTA country is a matter
of debate. As presented in Table B-3, the mineral extraction industries contribute from less than 1
percent to 3 percent of the gross national product (GNP) of these countries. However, most mineral
production is for industrial materials used for domestic purposes, and their contribution to GNP, may
not be fully reflected in these values. Similarly, income from small local operations may not be captured
in the national accounts.
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Table B- 3: CAFTA-DR Regional Mineral Production Information
Country
Costa Rica
Dominican
Republic
El Salvador
Guatemala
Honduras
Nicaragua
Industrial Minerals, Type of Mineral as Percentage of Total.
Bauxite
Diatomite
Gypsum
Limestone
Marble
Salt
Sand and
Gravel
Clay
Pumice
(pozzolan)
Phosphatic
Lime
0.41% (2006)
15% (2006)
0.03% (2006)
78% (2006)
7% (2006)
0.13% (2006)
0.17% (2006)
3% (2005)
2% (2005)
8% (2005)
1% (2005)
85% (2005)
1% (2005)
4% (2005)
94% (2006)
2% (2006)
0.24% (2006)
NA
<0.01% (2006)
5% (2006)
2.45% (2006)
52.26% (2006)
0.54% (2006)
0.54% (2006)
18.36% (2006)
2.44% (2006)
4.82% (2006)
0.18% (2006)
53.4% (2006)
44.5% (2006)
0.62% (2006)
0.48% (2006)
3.57% (2006)
0.34% (2006)
95.46% (2006)
0.03% (2006)
0.1% (2006)
0.3% (2006)
Metals, Description of Operations
Antimony
Gold
Silver
Copper Ore
Lead Ore
Nickel
Zinc
Iron Ore
GPA
percentage of
Total GPA
Gold production
is currently from
small operators
with uncertain
production
0.2% in 2006
GlobeS tar
Mining
Corporation ore
to smelters with
gold as by
product
GlobeStar
Mining
Corporation ore
to smelters with
silver as by
product
Ore to smelters
with recovery of
up to 90%
Leading export.
3rd leading
industry globally
GlobeStar
Mining
Corporation ore
to smelters with
recovery of up to
85%
2% in 1988
7.8% in 2008(?)
No major mines
are currently
operating -small
mines do exist
No major mines
are currently
operating -small
mines do exist)
1% in 1999
1% of world's
supply in 2006
Gold is extracted
from two
operating mines.
Refining method
unknown
3rd largest
producer in Latin
America
3% in 2006
Three operating
gold mines using
heap leach
One silver mine
0.76% (2006)
2% in 2006
Three major gold
mines in the
country
1% in 2006
* Percentages are based on reported data in the USGS Minerals Yearbook 2006 (Anderson, 2008).
Finally, in each of the CAFTA-DR countries, the affect of mineral extraction on the environment is very
much of a concern. Concerns include water consumption; water pollution from increase sedimentation,
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
toxic spills and failures of heap leach and tailings dams; air pollution from dust and other substances;
and deforestation. Table B-4 presents a brief overview of the principle concerns in each country.
Table B- 4: CAFTA-DR Region - Environmental Concerns Due to Mining
Environmental
Concerns
Water shortages
Contamination of
water
Health issues
Air pollution (dust,
hydrogen cyanide
and sulfur dioxide)
Contamination of
soil
Increased
deforestation
Damage to
ecosystems and
farmland
Effects of hurricanes
on impacts from
mining activities
Costa Rica
X
X
X
X
X
X
X
X
Dominican
Republic
X
X
X
X
X
X
X
X
El Salvador
X
X
X
X
X
Guatemala
X
X
X
X
X
X
X
X
Honduras
X
X
X
X
X
X
X
X
Nicaragua
X
X
X
X
X
X
X
X
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Figure B-5: Costa Rica Minerals Production (Anderson,
2008)
Diatomite
0.41%.
.Pumice
0.13%
2 CAFTA-DR COUNTRY OVERVIEWS
2.1 COSTARICA
According the USGS 2006 - Minerals Yearbook
(Anderson, 2008),mineral production made up
approximately 0.2% of Costa Rica's total Gross
Domestic Product in 2006. Figure C-5 illustrates
mineral production in Costa Rica. Sand, gravel, rock
and limestone quarrying dominate this sector.
Diatomite, approximately 0.41% of domestic mineral
production, is estimated to account for
approximately 1% of world diatomite production
(U.S. Energy Information Administration, 2007;
Founie, 2008; Seaward and Coates, 2008; Banco
Central de Costa Rica, undated).
In May of 2002, a moratorium was placed on the
development on the opening of any new open pit
mines, and any commercial-scale cyanide processing
(Executive Decree N? 30477-MINAE). The
moratorium was repealed with issuance of Executive
Decree 34492-MINAE of 18 March 2008, which
promulgated the Environmental Safeguard for Mining in Costa Rica, a set of basic guidelines that must
be followed in both metallic and non-metallic mining to ensure sustainability and environmental
protection (Global Legal Information Network, 2008). Promulgation of the Decree was largely brought
about by the failure of a heap leach facility at the Bellavista Mine.
Table B-5 presents production estimates for various extracted mineral commodities, not including
manufactured commodities such as cement and petroleum products. Gold production sharply rose in
2006 with the opening of the Bellavista mine; however, the mine's temporary closure in 2007 has
resulted in decreased gold production. On May 11, 2010 Decree No. 35 982-published by MINAET
declared a national moratorium for an indefinite period for gold metal mining activity in the country as
the exploration, exploitation, and the beneficiation of the materials extracted used cyanide or mercury.
0,03%
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Table B-5: Costa Rica 2002 - 2006 Mineral Production (Anderson, 2008)
Extracted Mineral
Clays, unspecified
Diatomite
Gold (kilograms)
Lime
Pumice
Salt, marine
Crushed rock and rough stone
Limestone and calcareous materials
Sand and gravel
Sandstone
Production (metric tons except where noted)
2002
420,000
26,400
100
10,000
8,000
20,000
200,000
900,000
1,500,000
3,300,000
2003
419,000
26,450
110
10,000
8,000
20,000
200,000
920,000
1,550,000
3,250,000
2004
420,000
26,500
150
10,000
8,000
20,000
200,000
920,000
1,550,000
3,250,000
2005
420,000
26,000
424
10,000
8,000
20,000
200,000
920,000
1,550,000
3,250,000
2006
400,000
25,000
1,210
10,000
8,000
20,000
200,000
900,000
1,500,000
3,000,000
Figure B-6: Costa Rica Mineral
Extraction Trends
3,500,000
3,000,000
02,500,000
o
fe.ooo.ooo
§1,500,000
fl,000,000
500,000
0
Clays, unspecified
Limestone and
calcareous materials
Sand and gravel
2002 2003 2004 2005 2006
According to Hellman & Schofield Pty.
Limited (2008), other production of gold comes from small scale gold miners and some other relatively
small projects such as the Beta Vargas mine, which is located near La Pita de Chomes, Puntareanas. The
San Juan of Abangares-Guanacaste Mine which was put into production by Lyon Lake Limited in the
1990's and reportedly extracted 60,000 ounces of gold. In addition, small scale gold panning in rivers is
reported in various areas of Costa Rica (Hellman & Schofield Pty. Limited, 2008). The main area known
to have more continuous activity of this kind is the South Pacific Coast, near Panama. Underground gold
mining also occurs in the area of Abangares.
As for other mineral commodities, trends as illustrated in Figure B-6 indicate that production between
2002 and 2006 have remained rather constant. Production of these materials is for domestic use and
varies according to economic conditions.
2.1.1. Future Development
With the exception of gold, mineral production in Costa Rica will most likely continue at the same rate as
in the past depending on economic conditions. The 2002 moratorium on open pit mining and Executive
Decree 34492-MINAE have created uncertainty regarding future gold mining in Costa Rica. Once
environmental issues are resolved, Glencairn Gold Corporation hopes to have Bellavista mine back in
production. However, the Crucitas Project, located in northern Costa Rica and owned by Infinite Gold
Ltd., is currently the only major exploration project in the country. According to Infinite Gold Ltd.
(2008) the concession area is around 800 km2 and has 1,200,000 indicated oz Au @ 1.32 g/t. In the early
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2000's the EIA for this project was rejected; however, Infinite (2008) now claims to have amended the
EIA and received the hard rock mining environmental permit. They have a $US 600,000 environmental
bond and will pay for periodic independent environmental audits. It is uncertain whether there are any
new developments planned for other commodities.
2.1.2.Environmental Concerns
Concerns regarding water quality impacts, potential hazards of cyanide, deforestation, and socio-
economic impacts led to the moratorium on open-pit mining and commercial scale cyanide leaching.
According to Earthworks (2007), groups were critical of the Environmental Management Plan for the
Bellavista mine for failing to adequately address environmental and social concerns. The failure of the
heap leach pad at Bellavista has resulted in more scrutiny on the gold mining industry in Costa Rica.
As for other commodities such as limestone, sand and gravel, and quarried rock, the concerns focus on
deforestation, increased sedimentation due to erosion, and air pollution due to dust are among the
main concerns. At one silica sand quarry operated by SICORSA near Cartago in Central Costa Rica, steps
are being taken to put waste material into
Figure B-7: Dominican Republic - 2005 Non-
metallic Mineral Production (Bermudez-Lugo,
2008)
beneficial use by using the clay rich tailings for
brick clay. Such reuse of waste material could
have a beneficial impact on the environmental
and the economy (Mitchell et al, undated).
2.2 DOMINICAN REPUBLIC
Clay Gypsum
>J.54%_2.36%
The Dominican Republic produces bauxite,
cement, ferronickel, gypsum, limestone,
marble, nickel, salt, sand and gravel, and steel
(Figure B-7). Limestone, marble, and sand and
gravel are produced solely for domestic
consumption. Amber and pectolite (larimar)
are also produced in modest amounts by
artisanal miners (Bermudez-Lugo, 2008).
Mineral production has stagnated since the
mid-1980s. In 2000, mining accounted for 2%
of GDP. While GDP has grown by 7.8% since
2000, mining production has increased by 9.2% stimulated by higher output and a higher average price
of nickel, the country's most important mineral. Ferronickel is the country's leading export commodity
and third-leading industry (Nations Encyclopedia, undated).
As in some other countries in CAFTA-DR, aside from sand and gravel, limestone extraction makes up the
bulk of the minerals produced. In 2002, nickel production was 38,859 metric tons, ranking tenth in
production in the world. In 2006, nickel ore production was around 46,526 metric tons down from the
previous year's 53,124 metric tons. The only nickel producer was Falconbridge Dominicana, an 85%
Canadian-owned company. In addition, the country is one of the few sources of amber in the Western
Hemisphere. Salt Mountain, a 16 km block of almost solid salt west of Barahona, is the world's largest
known salt deposit. There are also large deposits of gypsum near Salt Mountain, making the Dominican
Republic one of three sources of gypsum in the Caribbean. Between 2002 and 2006, gypsum production
has increased from 163,026 metric tons to 459,496 metric tons. Table B-6 presents recent mineral
production rates in Dominican Republic.
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Production of gold and silver in Dominican Republic was suspended in 1999. In 1980, the Pueblo Viejo
gold mine was the largest in the Western Hemisphere. As production of gold and silver declined by the
mid-1980s, mining of the sulfide zone of the gold ore body commenced, requiring more extensive
processing facilities than had previously existed. Production of gold was 7,651 kg in 1987 and 3,659 kg
in 1996. Production of silver was 39,595 kg in 1988 and 17,017 kg in 1996. Corporacion Minera
Dominicana started production in August 2008 of the Greenfield Cerro de Maimon polymetallic deposit,
which is located in the municipality of Maimon in the Nouel Province about 70 km northwest of Santo
Domingo (Redwood, 2009).
Production of bauxite, traditionally the principal mining product of the Dominican Republic, ceased in
1992 and rapidly increased again between the years 2003 and 2005. The Aluminum Company of
America (Alcoa) mined bauxite between 1959 and 1983, when it turned its concession over to the state.
In 1991, production dropped 92% from the previous year due to a presidential decree suspending
mining operations at the largest bauxite mine. Since 2005, Sierra Bauxita Dominican SA has been mining
bauxite from the Las Mercedes bauxite mine but halted operations in 2008 due to export license issues
with the government (Redwood, 2009).
Table B-6 Dominican Republic Mineral Production - 2002-2006 (in metric tons unless noted)
(Bermudez-Lugo, 2008)
Extracted Mineral
Bauxite
Clay
Gypsum
Lime
Limestone
Marble (cubic meters)
Nickel Mine output, laterite
ore
Salt
Sand and gravel
Production (metric tons unless noted)
2002
-
314
163,026
113,000
1,115,000
6,333
38,859
207,278
15,977,000
2003
6,481
41,894
250,286
102,000
1,607,000
8,186
45,253
156,988
14,374,000
2004
79,498
84,730
459,496
100,000
1,214,000
10,384
46,000
50,000*
13,266,000
2005
534,555
85,000
370,143
100,000
1,200,000
6,060
53,124
50,000*
13,300,000
2006
NA
85,000
355,641
100,000
1,200,000
6,000
46,526
50,000*
13,300,000
*does not include rock salt
2.2.1. Future Development
There are approximately 75 exploration activities for copper, gold, lead, molybdenum, nickel, silver and
zinc taking place in the country (Mine and Quarry Data). Exploration projects are primarily being
undertaken by Energold Mining Ltd., Everton Resources Inc., and Globestar. Exploration for metals is
very active in the Dominican Republic. It is uncertain as to what development plans there are for other
mineral commodities.
2.2.2.Environmental Concerns
The general environmental risks due to mining operations are well known in the Dominican Republic,
especially due to the high potential of hurricanes, as described in Table B-7 below (United Nations
Environmental Program/Office of Coordination of Humanitarian Affairs, 2007).
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Table B-7: Potential Risks from Mining Properties due to Accidents aggravated by Flooding caused by
Hurricanes - Dominican Republic
Possible type of incident
Tailings dam failure
Failure of waste rock dump
Pipeline failure, e.g. tailings,
leach solution
Transport of chemicals
to/from site
Ground Subsidence
Spills of chemicals at site,
e.g. fuel tank rupture,
reagent loss, storage
damage
Fire
Atmospheric releases (dust,
hazardous substances, etc.)
Explosions (plant)
Typical cause of accidents possibly
aggravated by the floods
Poor water management,
overtopping, foundation failure,
drainage failure, piping, erosion,
earthquake
Instability often related to presence
of water (springs, poor dump
drainage)
Inadequate maintenance, failure of
equipment, physical damage to
pipeline
Inadequate transport procedures
and equipment, unsafe packaging,
high risk transportation routes
Slope failure, breakthrough to
surface
Poor maintenance, inadequate
containment
Poor design, unsafe practices in
relation to flammable materials
Inadequate design, failure to follow
procedures, inadequate
maintenance
Blasting and explosives accidents,
poor practices, unsafe storage and
handling
Potential effects
Loss of life, contamination of
water supplies, destruction of
aquatic habitat and loss of crops
and contamination of farmland,
threat to protected habitat and
biodiversity, and loss of livelihood
Loss of life, injuries, destruction of
property, damage to ecosystems
and farmland
Contamination of soil, water,
effects on water users. May not be
detected for some time.
Contamination of soil, water,
effects on water users, aquatic
ecosystem damage, threat to
human health
Loss of life, damage to property
Contamination of soil and water.
Air pollution could have health
effects
Effects of air pollution on health,
property damage
Community concern, possible
health effects
Community concern, loss of life,
destruction of property, risk to life
Source: UNEP/OCHA, 200
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
2.3 EL SALVADOR
El Salvador's economy is largely based on
agrarian production and exports with
mineral production accounting for about
1% of its estimated gross domestic
product (GDP) (Doan, 1999). Extractive
mineral production in El Salvador mainly
consists of limestone, pumice (pozzolan),
and salt (marine). Limestone accounts for
47% of mineral production at
approximately 1.2 million metric tons per
year (Table C2-4 and Figure B-8).
Currently, there are no large scale gold or
silver mines operating in El Salvador,
although small operations are known to
exist. The location, production, and status
of these mines are not known at this time.
Figure B-8: El Salvador- 2006 Non-metallic Mineral
Production (Anderson, 2008)
Gypsum
1%
Limestone
94%
2.3.1.Future Development
Mining of limestone and other commodities based on USGS data presented in Table 1 remained fairly
constant between 2002 and 2006. At this time, more recent data are not available, but it is most likely
that mining of these commodities will continue at current rates. In terms of gold and silver, there are 24
gold mining projects awaiting approval by the El Salvadorian government. Historically, mining has taken
place in El Salvador but civil strife between the Government and the Frente Farabundo Marti de
Liberacion Nacional (FMLN) discouraged exploration and mining operations throughout the 1980's. This
continued until 1992, when a peace agreement was made (Doan, 2000). In the mid- to late 1990's,
exploration and mining for these commodities began to return, especially in the northern half of the
country where there were several prospects, particularly in the Departments of La Union, Morazan and
San Miguel where epithermal quartz veins intersect older volcanic rocks (Doan, 2000). Numerous
companies are undertaking gold and silver exploration in El Salvador. Two mines have been the focus of
these activities: the historic El Dorado gold mine near San Isidro, located about 50 km east-northeast of
San Salvador and the old San Sebastian gold mine near Santa Rosa de Lima.
Table B-8: El Salvador Mineral Production 2002-2006 (Anderson, 2008)
Extracted Mineral
Production (metric tons unless otherwise noted)
2002
2003
2004
2005
2006
Fertilizer materials
Phosphatic
Other mixed materials
Gypsum
Limestone
Pozzolan (cubic meters)
Salt, marine
13,600
56,500
5,600
1,631,000
279,389
31,552
13,600
56,000
5,600
1,194,000
294,871
31,366
13,600
56,000
5,600
1,161,000
222,826
31,400
13,600
56,000
5,600
1,150,000
223,000
31,400
10,000
55,000
5,500
1,200,000
223,000
30,000
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The El Dorado project is currently being operated by Pacific Rim Mining Company. According to Pacific
Rim Mining (2008), gold was discovered in the district in the early 1500's, and small-scale production
took place until the late 1800's. The New York and El Salvador Mining Company (a subsidiary of Rosario
Mining) operated an underground mine on the El Dorado property from 1948 to 1953. During this time
period, the mine used a simple mill and cyanide recovery system on approximately 270,000 tonnes of
ore to yield about 72,500 troy ounces (2,250 kilograms) of gold at an average grade of 9.7 g/t from
workings centered on the Minita vein system. Between 1993 and 2002, new exploration in the project
area took place.
Currently, exploration activities are still on-going and the El Dorado project is awaiting a mining license
from the El Salvador government. This project has been the center of considerable controversy from
both an environmental/social/economic and legal standpoint. Local resistance has effectively shut the
operation down and has prevented the government from issuing the necessary mining permits. The
Pacific Rim under CAFTA has filed a Notice of Intent to file arbitration under CAFTA for $77 million of
indirect appropriation. The 90-day resolution period ended on March 9, just days before El Salvador's
presidential elections on March 15, 2009 (Dyer, 2009).
Historically, mining activity occurred near the old San Sebastian gold mine where mercury was used for
amalgamation recovery of gold from gangue. At San Sebastian, the Commerce/Sanseb joint venture
concentrated on developing an open pit mine over previous workings centered on the main gold zone.
In 1987 Commerce/Sanseb was granted the 304-acre San Sebastian Gold Mine (SSGM) exploitation
concession by the El Salvadoran Department of Hydrocarbons and Mines. This concession was renewed
on May 20, 2004. On March 3, 2003, Commerce received the New San Sebastian Exploration License,
and the company commenced exploring targeted areas in this 41-square km area (10,374 acres), which
includes three formerly-operated mines and encompasses the SSGM. In September, 2006, the El
Salvador Ministry of the Environment delivered to Commerce its revocation of the environmental
permits issued for the SSGM exploitation concession. In December, 2006, Commerce filed with the El
Salvadoran Court of Administrative Litigation of the Supreme Court of Justice two complaints relating to
this matter. These legal proceedings are pending (Commerce Group Corp., 2008).
2.3.2.Environmental Concerns
Although there have been no major environmental catastrophes in El Salvador, environmental concerns
have been the main justification for revocation or suspension of permits by the El Salvadoran
government recently. A new draft mining law is being debated to address these issues, and the 24 gold
and silver mining licenses have been suspended until the new law becomes effective. Environmental
concerns include:
Water shortages: El Salvador has chronic water shortages. It is estimated that 200,000 liters of
water per day will be needed for new gold and silver mining activities with El Dorado alone
requiring up to 30,000 liters/day for the mineral extraction process . This shortage is a point of
contention.
Increased deforestation: In 2005, the United Nations Development Program ranked El Salvador
as the most highly deforested country in the world. Open pit and/or underground mining could
add to this problem.
Water pollution: Most mining activities will occur in the Lempa River basin. Not only does the
Lempa River provide water to the northern region of El Salvador, but it also supplies an
estimated 30% of the drinking water to the capital city. Mining, if not properly done, could
contaminate these water supplies.
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Health issues: Mineral extraction has the potential to pollute air with dust, hydrogen cyanide,
and sulfur dioxide.
Review of the literature as well internet searches indicates that current mining operations for limestone
and other commodities are not as much of a environmental concern to residents as gold and silver
mining operations. However, many of the same environmental impacts can occur during these types of
operation as with large scale gold and silver mining. These include deforestation, water pollution from
sediment produced from erosion and air pollution from dust. It is anticipated that the new mining law
will also address these issues.
2.4 GUATEMALA
Figure B-9: Guatemala - 2006 Non-metallic Mineral
Production (Anderson 2008)
According the US State Department (2008),
mining has historically been a sensitive issue
in Guatemala and operations have been
subject to protests. Subsurface minerals and
petroleum are the property of the state.
Contracts for development are typically
granted through production-sharing
agreements. Complex and confusing laws
and regulations, inconsistent judicial
decisions, and bureaucratic impediments
continue to constitute practical barriers to
investment. The principal commercial
minerals that have been mined in Guatemala
are antimony, gold, iron ore, nickel, marble and lead. The production of antimony is estimated to be the
only mineral mined in Guatemala to be of global significance (USGS, 2008).
The mining industry accounted for about 3% of the country's GDP at current prices (Anderson, 2008).
Antimony production, which historically has been very important to Guatemala, fell from 4,010 tons in
2002 to 1,007 tons in 2005 (Anderson, 2008.). In 1997 Guatemala ranked third in Latin America for
production, behind Bolivia and Mexico (Nations Encyclopedia, undated). No antimony production
information is available for 2006, and it is not clear whether antimony production ceased or was
temporarily suspended in the country, or production data were simply not available (Anderson, 2008).
Gold was mined from the colonial period until the early 20th century and was a major export item. In
2006, gold production was about 5036 kg compared to 4,500 kg in 2001 (Anderson, 2008). Rough
marble from the Huehuetenago District has been exported to Mexico and other nearby countries. Large
nickel deposits in the Lake Izabal area have been developed. The Buena Vista nickel mine is currently
operating. Barite, bentonite, kaolin, other clays, feldspar, gypsum, iron ore, lime, pumice, salt,
limestone, sand and gravel, silica sand and other mineral commodities are also produced, primarily for
domestic use (Nations Encyclopedia, undated.)
Table B-9 presents a summary of mineral production between the years 2002 and 2006 (Anderson,
2008). This table does not include manufactured commodities such as cement, steel, or petroleum
products. The data indicate as shown in Figure B-9 that limestone (53.42%), sand and gravel (18.41%),
and basalt (17.3%), used for domestic construction, make up the majority of the non-metallic minerals
produced in Guatemala.
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Table B-9: Guatemala Extracted Mineral Production 2002-2006 (Anderson, 2008)
Commodity
Antimony
Basalt including andesite
Barite
Production (in metric tons unless noted)
2002
4,010
318,000
100
2003
3,000
936,000
100
2004
2,686
1,050,000
70
2005
1,007
1,000
181
2006
1,604,000
Clays:
Bentonite
Ferruginous, including shale
Fuller's earth (attapulgite)
Kaolin
Coal, lignite
Feldspar
Gold, mine output, Au content (kg)
Gypsum, crude
Hematite
Iron oxide, gross weight
Jadeite
Lead Run of mine,
Lime, hydrated
Magnesite
Pumice
Pyrolusite, manganese dioxide
Rhyolite
Salt
Silver, mine output, Ag content (kg)
12,415
84,000
10
372
11,843
81,000
947
35,226
92
39
547
3,758
377,000
1,000
50,000
6,438
65,000
9
1,497
9,320
67,000
1,000
2,276
48
19
386
8,022
274,000
1,000
60,000
81,688
54,000
9
50
4,473
106,000
2,689
2,823
27
47
400
8,000
226,000
5
1,375
60,000
135,451
90,000
4,107
3,808
741
350,000
5,227
11,268
27
23
400
5,636
82,000
2,707
60,000
7,074
20,034
202,000
19
4,395
17,176
5,036
227,000
7,341
419
28
400
1,084
447,000
236
50,000
49,719
Stone, sand, and gravel:
Dolomite
Flagstone, phyllite (cubic meters)
Gravel, unspecified (cubic
Limestone, crude
24,881
98
69,918
3,040,000
6,130
59
166,851
3,773,000
63,082
1,446
19,678
4,270,000
8,585
513
60,116
140,000
2,333
18
120,109
4,938,000
Marble:
Block (cubic meters)
Unspecified, including pieces
River sand and gravel
Sand, common
Sandstone (cubic meters)
Schist, slate
Silica sand
Stone dust (cubic meters)
Stone, round, unworked (cubic
Volcanic ash and sand (cubic
Talc and steatite
Zinc, run of mine,
3,185
99,293
743,000
55,000
200
496,000
37,552
7,433
10,088
313,000
568
7,461
29,181
296,000
129,000
450
497,000
30,462
12,537
48,894
199,000
1,585
33
74,862
90,000
226,000
180
543,000
988
1,852
10,000
220,000
2,863
10
44,598
367,000
82,000
474
5,799
49,000
1,631
11
49,673
502,000
447,000
582,000
57,692
44,307
69,114
417,000
526
Metals such as gold and silver are primarily produced by two mines: the El Sastre Mine, and the Marlin
Mine. The El Sastre property is located at UTM coordinates 790,500 E and 1,638,000 N, and has an area
of 271 ha. It lies south of the Motagua-Polochic Fault System that marks the northern boundary of the
Chortis Block (a division of the Caribbean Plate). The rocks within the property are mainly amphibolite
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schists that are considered to be of phiolitic origin. The rocks appear to have been affected by low-angle
thrusts that control the mineralization (Olson et al, 2007). The property is owned 50% by Castle Gold
Corporation and 50% by Aurogin Resources Ltd, both of Canada. The El Sastre Main zone is a high-
grade, near-surface oxide gold deposit. Construction of a heap leach gold operation at the site was
completed along with the mine's first gold pour in late 2006. Gold production was 13,819 ounces in
2007 and was expected to be 12, 000 ounces in 2008 (Castle Gold Corporation, 2008).
2.4.1.Future Development
Several off shore companies are currently conducting exploration on about 160 concessions provided by
the Guatemalan government. These companies are:
1. Castle Gold Corporation/Aurugin is primarily interested in gold and silver in concessions near
their existing El Sastre Mine;
2. Firestone Ventures is mainly prospecting for zinc, lead, and silver in the Huehuetenango area of
northwestern Guatemala;
3. Hudbay Minerals, now joined with Skye Resources registered under Companfa Guatemalteca de
Nfquel, S.A., is looking to reopen the Fenix Nickel Mine near El Estor, Izabal, aswell as explore
concessions known as Niquegua in an area covering 384.4 km2 in the municipalities of El Estor,
Panzos and Cahabon. 30% of the joint venture is owned by the government of Guatemala
(MAC, 2009);
4. BMP Billiton, formally Jaguar Nickel (registered as Minera Mayamerica, S.A), is primarily
exploring for nickel near Buena Vista, and also in El Estor, Izabal, Panzos and Cahbon in the
department of Alta Verapaz (MAC, 2009);
5. Radius Exploration Ltd (registered as Exploraciones Mineras de Guatemala, S.A and Exmingua,
S.A) is primarily exploring for gold.
6. Goldex Resources is exploring for gold in the El Plato District.
7. Goldcorp Inc. is exploring for gold near their existing Marlin mine on concessions granted for
their Cerro Blanco Projects and Holly/Banderas Property.
It is uncertain as to development plans for other extracted minerals.
2.4.2.Environmental Concerns
As in other Central American countries, there is much concern in Guatemala about the affects of mining
on the environment. Concerns include the potential for deforestation and habitat loss or degradation,
loss of agricultural land and the associated traditional livelihoods, release of cyanide and other
hazardous chemicals, erosion and sedimentation, water pollution, dust and air pollution, and other
factors. Earthquakes and hurricanes are common occurrences in Guatemala, and their impacts are of
serious concern. Major earthquakes and floods caused by hurricanes can result in failures of heap leach
pads, tailings dams, and pipelines; hazardous chemical accidents, and landslides.
Guatemalan Congressional Law Decree Number 48-97, signed into law on 11 June 1997, declared that
the "technical and rational exploitation of hydrocarbons, minerals and other non-renewable natural
resources is in the public interest, entrusting to the State to sponsor the necessary conditions for their
exploration and exploitation." The interpretation of this law and the Law for Protection and
Improvement of the Environment by the Government of Guatemala prohibits the emission and
discharge of polluting matter or agents that may affect the environment. These laws and interpretation
have been a matter of contention for environmental non-governmental organizations (NGOs) and
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indigenous peoples. Their concerns are both socio-economic and environmental in nature. Protests
against mining projects have lead to confrontations between protestors, mining companies and the
government. There are concerns that some mining leases on native lands are in direct violation of
United Nations Office of the High Commission on Human Rights "Convention 169 Concerning Indigenous
and Tribal Peoples in Independent Countries." Article 14 1.
Figure B-10: Honduras - 2006 Non-metallic Mineral
Production (Anderson, 2008)
Copper
0.01%
Clays
0.62%
Gypsum
Iron Oxide 0.18%
0.76%
2.5 HONDURAS
In 1999, Honduras produced mainly lead and zinc,
as well as ancillary copper, gold, and silver, and
minor amounts of cadmium associated with the
zinc. Industrial minerals include cement, gypsum,
limestone, marble, and salt. Honduras exported
about 40% of its metals to Europe and much of
the remainder to Japan, Mexico, the United
States, and Venezuela (Doan, 2000). In 2006, the
mineral industry accounted for about 2% of the
GDP in Honduras, not including any
manufacturing of mineral commodities, such as
cement or petroleum refinery products
(Anderson, 2008).
A new mining law was passed in 1999
encouraging foreign investment and moderating
the tax climate, however, Hurricane Mitch, delayed the implementation of this law until the year 2000.
In October of 2006, 13 articles of the General Mining Law of Honduras were found to be
unconstitutional by the Supreme Court. Reforms to the law which have been proposed were widely
considered to be too weak and the law was widely thought in need of rewriting (Mining Watch, 2007). It
is unclear at this time as to the progress of the Honduran Congress in passing a new mining law.
In general, foreign companies investing in mining in Honduras have faced numerous problems including
allegations of pollution and squatter invasion. According to the US State Department (2008), industry
sources assert that all seven versions of a new Mining Law under consideration by the Honduran
Congress would effectively tax mining firms out of existence. It is unknown whether any of these bills
will pass, when and with what modifications, and whether the law would address only precious metals
or all extractive industries. There is currently a moratorium against new mining concessions in
Honduras.
As presented in Table B-10, which presents production summaries for various extracted minerals
between 2002 and 2006, the major mineral resources of Honduras consist of aggregate materials,
cadmium, clay, copper, gold, gypsum, lead, limestone, and marble (Anderson, 2008). Figure B-ll shows
that limestone and aggregate had by far the highest percentage of non-metallic production during 2006.
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Table B-10: Honduras - 20002 - 2006 Mineral Production (Anderson, 2008)
Extracted Mineral
Aggregate mineral materials, for
construction (thousand metric tons)
Cadmium, Cd content of lead-zinc
concentrates
Clays, unspecified
Copper, run of mine, Cu content
Gold (kilograms)
Gypsum
Iron oxide, gross weight, for cement
additive
Lead, mine output, Pb content of
concentrate
Limestone (metric tons)
Marble, for construction (sq. meters)
Production (metric tons unless noted)
2002
29,000
-
-
300
4,984
20,000
17,000
8,128
1,358,000
-
2003
447,000
-
13,983
300
4,494
19,921
17,000
9,014
1,326,000
-
2004
962,000
-
14,225
300
3,683
5,725
17,363
8,877
780,000
-
2005
1,000,000
-
14,000
300
4,438
5,700
17,000
10,488
1,230,000
-
2006
1,000,000
-
14,000
300
4,100
5,500
17,000
11,775
1,200,000
-
In terms of metallic minerals, inadequate transportation in Honduras has hampered the development of
mineral resources. In the mid-1990s, the El Mochito Mine, in Santa Barbara, was the country's only
large operating base metal mine. By the end of 2001, the mine's proven and probable reserves stood at
3.4 million tons at an average grade of 6.8% zinc, 1.9% lead, and 78 grams per ton of silver; this was an
18% increase over 2000. Lead and zinc concentrates from the mine in 2000 contributed less than 2% to
the GDP, and grew 5% in 2001 after the completion of reconstruction from Hurricane Mitch (Nations
Encyclopedia, undated).
Currently, Canadian companies operate most large gold mines in Honduras. Canadian mines include
Yamana Gold which operates the open pit, heap leach San Andres gold mine in the department of
Copan; Breakwater Resource which operates a lead/copper/gold mine known as El Mochito in the
Northeast of the country; and Goldcorp which acquired the controversial San Martin mine from Glamis
Gold in 2006. The San Martin mine is an open pit, heap leach operation which has been in operation
since 2001. Goldcorp reports that more than 529,088 ounces of gold have been extracted at the San
Martin mine since that time (Mining watch, 2007).
2.5.1. Future Development
At this time, there is considerable uncertainty as to the future of mining in Honduras. There are
currently only three major hardrock exploration projects in the country. These projects are being run by
First Point Minerals of Canada and Rusoro Mining Limited also of Canada.
The First Point Minerals - Camporo Property was previously known as Cacamuya and is a series of
volcanic-hosted, low sulphidation, epithermal, gold-silver veins and disseminated gold mineralization
deposit. The Property is 4741 hectares in size and is located in southern Honduras. The Camporo
Property has gold values as high as 104.7 grams/tonne (g/t) gold and 743 g/t silver. First Point's Tule
Property is an intrusion hosted gold and porphyry copper-gold (Cu-Au). It is located 100 kilometers
northeast of Tegucigalpa in Central Honduras. The area of the property is 20,000 hectares(First Point
Minerals, undated.)
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The Rusoro - Minoro project which was acquired from Mena Resources Inc. has excellent potential for
near surface, oxidized, copper/gold deposits. Advanced exploration targets consist of a series of related
mineralized bodies ranging in size from five to thirty million tonnes with grades of 0.5 to 1.0% Cu and 0.8
to >2.5 g/t Au (Mena Resources, undated).
As for other commodities, trends indicate a status quo for most minerals with the exception of gypsum
and lead. As shown in Table 1, gypsum production has decreased markedly between 2002 and 2006
from 20,000 metric tons to around 5,000. It is uncertain why this trend has occurred. Lead has
increased in production over the same period of time from 8,128 metric tons to 11,775 metric tons. It is
also uncertain as to why there has been an increase in lead demand.
2.5.2.Environmental Concerns
As with other Central American countries, there are numerous concerns about the effects of hardrock
mining on the environment and on public health. According to Mining Watch, in July of 2007 major
demonstrations took place across Honduras when six major road blockades were erected to protest the
possible advancement of a watered down reforms to the General Mining Law. Demonstrators were
demanding that the new mining law ban open pit and metallic mining, revoke mining permits from
companies who are contaminating the natural environment and cancel concessions in national parks
and reserves. Concerns range from potential water shortages to the human health effects from the use
of cyanide, deforestation, water pollution and other factors. The Government of Honduras is currently
rewriting the mining law the status of which is unknown, as mentioned above. As for other
commodities, such as limestone and aggregate mining, concerns with the exception of cyanide are the
same. The mining of these minerals will also be affected by the new law once passed.
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Figure B-ll: Nicaragua - 2006 Mineral
Production (Anderson, 2008)
Salt Purnicile Clays
0.34% 0.10% 0.03%
Gypsum
0.48%
2.6 NICARAGUA
Not including manufacturing of mineral
commodities, such as cement or petroleum
refinery products, the mineral industry accounted
for about 1% of the GDP in Nicaragua. (Anderson,
2008). As with other countries in Central America,
cement and limestone production are the major
mineral commodities.
Nicaragua has had a long history of gold mining. In
the mid-20th century, Nicaragua's world rank in
gold production was 15th during the Sandinista era,
when the entire mining industry was nationalized.
Gold exports reached $39.9 million in 1980, fell to
$15 million in 1982, and were then suspended
through 1985. The Corporacion Nicaraguense de
Minas (INMINE), a subsidiary of the government
holding company, controlled most of the country's mineral exploration and production. In 2001, the
Congress passed a Mining Code despite opposition from small-scale miners and environmentalists, who
argued the law would unduly benefit multinational companies and lead to environmental damage. In
1997, a ban on new concessions was lifted (Encyclopedia of Nations, undated).
Table B-ll presents annual production of various extracted mineral commodities for the years 2002
through 2006 based on data from the USGS 2006 Minerals Yearbook (Anderson, 2008). As presented in
Figure B-ll, crushed stone makes up around 96% of the extracted mineral production in Nicaragua.
Limestone production has remained fairly constant over this time frame. Bentonite, lime, pumice, sand
and gravel, and crushed stone were also produced, and some gold and silver.
Table B-ll: Nicaragua Mineral Production - 2002 - 2006 (Anderson, 2008)
Extracted Mineral
Clays, unspecified
Gold, mine output, Au content
(kilograms)
Gypsum and anhydrite, crude
Lime
Production (metric tons unless noted)
2002
2,771
3,904
28,153
3,351
2003
3,000
3,439
30,642
2,848
2004
3,000
4,315
36,466
3,482
2005
3,000
3,674
36,456
2,178
2006
3,000
3,395
42,191
2,351
Limestone:
Calcium carbonate, including for
cement
Other
Pumice, stone (cubic meters)
Pumicite, fine, including pozzolan
Salt, marine
Sand, unspecified (thousand cubic
meters)
1,316
290,000
14,820
29,710
273,000
2,545
292,000
17,129
31,320
399,000
2,916
248,000
120
14,302
30,000
358,000
1,412
292,000
2,497
9,200
30,000
374,000
1,133
313,000
510
8,370
30,000
435,000
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APPENDIX B. MINING IN CAFTA-DR COUNTRIES
Extracted Mineral
Silver, mine output, Ag content
(kilograms)
Production (metric tons unless noted)
2002
2,198
2003
2,040
2004
2,950
2005
2,999
2006
2,929
Stone:
Crushed
Quarried, unspecified
Tuff, volcanic
Volcanic ash and sand (metric tons)
204,000
5,859,000
38
200
421,000
5,443,000
69
200
722,000
5,250,000
124
200
639,000
5,707,000
117
205
695,000
7,272,000
136
262
After a long period of low production, gold output almost tripled in the late 1990s, from 1,500 kg in
1996 to 4,450 in 1999 (Encyclopedia of Nations, undated). In 2002, output was 3,904 kg. Gold and silver
mines were located in the Leon, Chontales, and Zelaya departments. The principal gold and silver mines
in the country are Cerro Moion (La Libertad), which is operated by RNC Gold, and was acquired by
Yamana Gold from Canada, and the Limon Mine which is operated by Central Sun Mining Company
(Anderson, 2008).
The La Libertad mine is located approximately 110 kilometers due east of Managua, the capital city of
Nicaragua The La Libertad mine is an open pit heap leach gold mine. Resources as of December 31,
2004, at La Libertad are estimated to be 37,295,263 tonnes of ore at an average grade of 1.11 g/tonne
representing 1,327,391 contained ounces of gold. Operations at La Libertad recently were converted to
using a contract miner. Production is increasing with annual projected production at approximately
70,000 ounces of gold per year (RNC, 2005).
The Limon mine has been operating since 1941. Currently the mine is fully mechanized. A 1,000-tonne-
per-day mill, built in 1995, consistently recovers 82%-84% of gold in ore. Proven and probable reserves
stood at 1.2 million tonnes grading 5.3 g/t (199,300 contained oz) as of December 31, 2006. The Central
Sun Mining Company holds a 95% interest in the Limon Mine. The remaining 5% is held by Inversiones
Mineras S.A., a holding company representing unionized mine workers in Nicaragua (Central Sun Mining
Company, 2009).
2.6.1. Future Development
According to the Northern Miner and Mines and Quarry Database, there are several on-going gold and
silver mining exploration projects in Nicaragua. These include 10 gold and silver exploration projects
and the reopening of one mine. Companies involved include Central Sun Mining, Inc, Chesapeake Gold
Corp, First Point Mineral Corp, Fortress Mineral Corp, and Radius Gold Inc.. As these projects become
developed Nicaragua would become once again a major exporter of gold and silver. It is uncertain as to
development plans for other extracted commodities.
2.6.2.Environmental Concerns
As with all Central American countries, environmental concerns including the potential for water
pollution, deforestation, the hazards of cyanide in the environment, air pollution from dust, increased
water use, and other factors are of a concern. To address these concerns, according to the US State
Department (2008), the Environment and Natural Resources Law (1996/217) authorizes the Directorate
General for Environmental Compliance, Ministry of Natural Resources and the Environment (MARENA),
to evaluate investment plans and monitor ongoing operations to verify compliance with environmental
standards (as presented in www.marena.gob.ni). The Law on Crimes against the Environment and
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Appendices: Non-Metal and Metal Mining
Natural Resources (2005/559) includes additional environmental standards. Some investors complain
that MARENA takes political considerations into account in determining whether to issue an
environmental permit. Budgetary constraints limit MARENA's ability to enforce environmental
standards.
In addition to environmental regulation, mining investments are regulated under the Special Law on
Mining Prospecting and Exploitation (2001/387), which is now administered by the newly created
Ministry of Energy and Mining. The Ministry of Energy and Mining also retains the authority to grant oil
and gas exploration concessions. In 2007, the Supreme Court ruled that several oil exploration
concessions had been granted without proper consultation with the governments of the autonomous
regions on the Atlantic coast, although the concessions were situated outside recognized regional
waters. The central government used the ruling as leverage to re-negotiate more favorable terms.
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Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS: CAFTA-DR COUNTRIES,
OTHER COUNTRIES AND INTERNATIONAL ORGANIZATIONS
This Appendix summarizes a range of quantitative benchmarks for specific environmental requirements
of new mining projects beyond the requirement to develop an EIA and mitigate and avoid adverse
environmental impacts. It does not attempt to capture non-quantitative practice standards. The
benchmark standards contained within this Appendix include ambient quality and sector-specific
performance standards from CAFTA-DR countries, including the United States, and other foreign
governments and international organizations. CAFTA-DR country EIA reviewers and preparers might use
this information in the absence of such standards or to assess the validity and to evaluate the
significance of impacts within ElAs.
The Appendix includes:
Introduction to environmental laws, standards and requirements
Ambient Standards for Air and Water Quality
Mining Sector specific Performance Standards
o Water Discharge / Effluent Limits
o Storm water runoff
o Air Emission Limits
o Solid Waste
International treaties and agreements ratified/signed
Website References
Section A summarizes ambient freshwater, drinking water and air quality standards, Section B provides
an overview of mining-related effluent limits in several countries and the World Bank Group, Section C
includes the equivalent information for emissions, and Section D provides links to relevant web sites.
To the extent possible, footnotes provide necessary caveats but it is strongly recommended that if this
information is used, the reviewer or preparer confirm it is up to date and appropriate for the
circumstances.
1 INTRODUCTION TO ENVIRONMENTAL LAWS. STANDARDS AND REQUIREMENTS
There are many approaches to managing environmental problems (see Figure C-l)
Some approaches are purely voluntary-that is, they encourage and assist change but do not require it.
Other approaches are regulatory-that is, they require change or specific performance expectations. At
the heart of regulatory approaches are environmental requirements-specific practices and procedures
required by law to directly or indirectly reduce or prevent pollution. Figure C-2 lists some examples of
the types of requirements and standards typically used for environmental management, including:
Ambient Standards
Performance Standards (Emissions and Effluents).
Technology Standards
Practice Standards
Information requirements
Product or Use Bans
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While wholly regulatory (command and control) approaches generally have the most extensive
requirements of all the management options, most of the other options including market-based
economic incentive, labeling and liability based approaches introduce some form of requirements.
Requirements may be general or facility/activity specific. General requirements are most frequently
implemented in the form of (1) laws, (2) regulations, or (3) general permits or licenses that apply to a
specific class of facilities. General requirements may apply directly to a group of facilities or they may
serve as a basis for developing facility-specific requirements. Facility-specific requirements are usually
implemented in the form of permits or licenses, or, in the case of environmental impact assessment,
may become legally binding commitments if they are a) within the environmental impact assessment
itself, b) within a separate environmental management plan or monitoring/mitigation plan, or c)
incorporated into a separate contract.
Appendix C benchmarks only quantitative limits and in a highly summarized format as a useful point of
reference. For additional background on enforceable requirements see the International Network for
Environmental Compliance and Enforcement Website: www.inece.org and specifically the resource
library, www.inece.org/library/principles.html. Others references for more details behind the limits
summarized in the Appendix are provided in the last section.
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Appendices: Non-Metal and Metal Mining
FIGURE C-l. APPROACHES TO ENVIRONMENTAL MANAGEMENT
VOLUNTARY APPROACHES
Voluntary approaches encourage or assist, but do not require, change. Voluntary approaches include public
education, technical assistance, and the promotion of environmental leadership by industry and nongovernment
organizations. Voluntary approaches may also include some management of natural resources (e.g., lakes, natural areas,
ground water) to maintain environmental quality.
REGULATORY (COMMAND-AND-CONTROL) APPROACHES
In command-and-control approaches, the government prescribes the desired changes through detailed
requirements and then promotes and enforces compliance with these requirements. Table 3-2 describes types of
requirements typically used in command-and-control approaches.
MARKET-BASED/ECONOMIC INCENTIVE APPROACHES
Market-based/economic incentive approaches use market forces to achieve desired behavior changes. These
approaches can be independent of or build upon and supplement command-and-control approaches. For example,
introducing market forces into a command-and-control approach can encourage greater pollution prevention and more
economic solutions to problems. Market-based/economic incentive approaches include:
Fee systems which tax emissions, effluents, and other environmental releases.
Tradablepermits which allow companies to trade permitted emission rights with other companies.
Offset approaches. These approaches allow a facility to propose various approaches to meeting an
environmental goal. For example, a facility may be allowed to emit greater quantities of a substance from one of its
operations if the facility offsets this increase by reducing emissions at another of its operations.
Auctions. In this approach, the government auctions limited rights to produce or release certain environmental
pollutants.
Environmental labeling/public disclosure. In this approach, manufacturers are required to label products so
that consumers can be aware of the environmental impacts of the products. Consumers can then choose which
products to purchase based on the products' environmental performance.
RISK-BASED APPROACHES
Risk-based approaches to environmental management are relatively new. These approaches establish priorities
for change based on the potential for reducing the risks posed to public health and/or the environment.
POLLUTION PREVENTION
The goal of pollution prevention approaches is to prevent pollution by reducing or eliminating generation of
pollution at the source. The changes needed to prevent pollution can be required, e.g., as part of a command-and-
control approach, or encouraged as voluntary actions.
LIABILITY
Some environmental management approaches are based on laws that make individuals or businesses liable for
the results of certain actions or for damages they cause to another individual or business or to their property. Liability
systems do not have explicit requirements. However, implicit requirements often develop as cases are brought to court
and patterns are established about what activities justify which consequences. To be effective, liability systems generally
need some enforcement by the government, nongovernment organizations, or individuals to gather evidence and
develop legal cases. Examples of liability-based environmental management systems include nuisance laws, laws
requiring compensation for victims of environmental damage, and laws requiring correction of environmental problems
caused by improper disposal of hazardous waste. Liability systems reduce or prevent pollution only to the extent that
individuals or facilities fear the consequences of potential legal action against them.
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FIGURE C-2. EXAMPLES OF ENVIRONMENTAL REQUIREMENTS
Ambient Standards
Ambient standards (also called media quality standards) are goals for the quality of the ambient environment (e.g.,
air, water). Ambient standards are usually written in units of concentration (e.g., the level of nitrogen dioxide in the air cannot
exceed 0.053 parts per million). In the U.S., ambient standards are used as environmental quality goals and to plan the level of
emissions from individual sources that can be accommodated while still meeting the area wide goal. Ambient standards may
also be as triggers, e.g., when the standard is exceeded, monitoring or enforcement efforts are increased. Enforcement of
ambient standards usually requires relating an ambient measurement to emissions or activities at a specific facility. This can be
difficult.
Performance Standards (Emissions and Effluents)
These standards are widely used for regulations, permits, and monitoring requirements. Performance standards limit
the amount or rate of particular chemicals or discharges that a facility can release into the environment in a given period of
time. Performance standards provide flexibility because they allow sources to choose which technologies they will use to meet
the standards. Often such standards are based on the output that can be achieved using the best available control technology.
Some requirements introduce additional flexibility by allowing a source with multiple emissions to vary its emissions from each
stack as long as the total sum of the emissions does not exceed the permitted total. Compliance with emission standards is
measured by sampling and monitoring. Depending on the kind of instruments required, compliance can be difficult and/or
expensive to monitor.
Technology Standards
These standards require the regulated community to use a particular type of technology (e.g., the "best available
technology") to control and/or monitor emissions. Technology standards are particularly appropriate when the equipment is
known to perform well under the range of conditions generally experienced by sources in the community. It is relatively easy
for inspectors to determine whether sources are in compliance with technology standards: the approved equipment must be
in place and operating properly. It may be difficult, however, to ensure that the equipment is operating properly over a long
period of time. Technology standards can inhibit technological innovation and pollution prevention.
Practice Standards
These standards require or prohibit certain work activities that have significant environmental impacts. For example,
a standard might prohibit carrying hazardous liquids in uncovered buckets. Like technology standards, it is easy for program
officials to inspect for compliance and take action against noncomplying sources, but difficult to ensure ongoing compliance.
Information Requirements
These requirements are different from the standards described above in that they require a source of potential
pollution (e.g., a pesticide manufacturer or facilities involved in generating, transporting, storing, treating, and disposing of
hazardous waste) to develop and submit information to the government. Sources generating pollution may be required to
monitor, report on, and maintain records of the level of pollution generated and whether or not it exceeds performance
standards. Information requirements are often used when the potential pollution source is a product such as a new chemical
or pesticide, rather than a waste. For example, a manufacturer may be required to test and report on a product's potential to
cause harm if released into the environment.
Product or Use Bans
A ban may prohibit a product outright (e.g., ban the manufacture, sale, and/or use of a product) or may prohibit
particular uses of a product.
2 AMBIENT STANDARDS FOR AIR AND WATER QUALITY
The following Tables summarize and compare across countries and institutions standards for:
Freshwater Quality Guidelines and Standards
Drinking Water Standards
Air Quality Standards
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APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-l Freshwater Quality Guidelines and Standards
Pollutant
Alachlor
Anthracene
Arsenic
Atrazine
Benzene
Benzo(a)pyrene
Brominated
diphenylether
Cadmium
C 10-13 Chloralkanes
Chlordane
Chlorfenvinphos
Chloride
Chromium (III)
Chromium (VI)
Chlorpyrifos
(Chlorpyrifos-ethyl)
Cyanide
DDT total
Para-para-DDT
1,2-Dichloroethane
Dichloromethane
Dieldrin
Di(2-ethylexyl)-
phthalate(DEPH)
Diuron
alpha-Endosulfan
United States
National Recommended Water Quality
Criteria1
Criteria Maximum
Concentration
(CMC) (ug/l)
340
2
2.4
860,000
570
16
22
0.24
0.22
Criteria
Continuous
Concentration
(CCC) (ug/l)
150
0.25
0.0043
230,000
74
11
5.2
0.056
0.056
European Union
Environmental Quality Standards (EQS)
Annual Average
Value
(Inland surface
Waters)
(Ug/l)
0.3
0.1
0.6
10
0.05
0.0005
< 0.08 (Class I)2
0.08 (Class 2)
0.09 (Class 3)
0.15 (Class 4)
0.25 (Class 5)
0.4
0.1
0.03
0.025
0.01
10
20
1=0.01 3
1.3
0.2
0.005
Maximum Allowable
Concentration
(Inland surface
Waters)
(Ug/l
0.7
0.4
2.0
50
0.1
N/A
< 0.45 (Class 1)
0.45 (Class 2)
0.09 (Class 3)
0.15 (Class 4)
0.25 (Class 5)
1.4
0.3
0.1
N/A
N/A
N/A
N/A
N/A
N/A
1.8
0.01
In the United States, the federal government issues recommended water quality criteria to provide for the protection and propagation of
fish, shellfish, and wildlife and for recreation in and on the water but it is up to the states in the first instance, to adopt binding water quality
criteria based on designated use categories. .
2 For cadmium and its compounds the EQS values vary depending on the hardness of the water as specified in five class categories (Class 1: < 40
mg CaCO3/l,Class 2: 40 to < 50 mg CaCO3/l, Class 3: 50 to < 100 mg CaCO3/l, Class 4: 100 to < 200 mg CaCO3/l and Class 5: > 200 mg CaCO3/l).
Suma for cyclodiene pesticides which include: Aldrin, Dieldrin, Endrin, Isodrin
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APPENDIX C. REQUIREMENTS AND STANDARDS
Pollutant
Fluoranthene
Heptachlor
Heptachlor Epoxide
Hexachloro-benzene
Hexachloro-butadiene
Hexachloro-cyclohexane
Isoproturon
Lead
Mercury
Naphthalene
Nickel
Nonylphenol (4-
Nonylphenol)
Octylphenol
Pentachloro-benzene
Pentachlorophenol
Polychlorinated
Biphenyls (PCBs)
Selenium
Simazine
Silver
Sulphate
Tetrachloroethylene
Trichloroethylene
Toxaphene
Tributyltin compounds
Trichloro-benzenes
Trichloro-methane
Trifluralin
Zinc
United States
0.52
0.52
65
1.4
470
19
3.2
0.73
120
0.0038
0.0038
2.5
0.77
52
15
0.014
5
0.0002
120
European Union
20
0.01
0.1
0.02
0.3
7.2
0.05
2.4
20
0.3
0.1
0.007
0.4
1.0
129.75 mg/l
10.0
10
0.0002
0.4
2.5
0.03
N/A
0.05
0.6
0.04
1.0
N/A
0.07
N/A
N/A
2.0
N/A
N/A
1.0
4.0
4,200 mg/l
N/A
N/A
0.0015
N/A
N/A
N/A
Sources: US: http://www.epa.gov/waterscience/criteria/wqctable/index.htmltfcmc
EU: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:348:0084:0097:EN:PDF
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APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-2 Drinking Water Quality Guidelines and Standards
Pollutant
Acrylamide
Ammonium
Aluminum
Antimony
Arsenic
Asbestos
Barium
Benzene
Benzo(a)pyrene
Beryllium
Boron
Bromate
Bromodichloro-
methane (BDCM)
Cadmium
Chlorate
Chloride
Clostridium
perfringens
Conductivity
Chlorite
Chromium (total)
Copper
United States
Maximum
Contaminant
Level Goal
0.006 mg/l
(6 Mg/D
0
7 million fibers
per liter
2 mg/l
(2000 Mg/l)
0.004 mg/l
(4 Mg/D
0
0.005 mg/l
(5 Mg/D
0.8 mg/l
(800 Mg/l)
0.1 mg/l
(100 ng/l)
1.3 mg/l
Maximum
Contaminant
Level
0.006 mg/l
0.01 mg/l
7 million fibers
per liter
2 mg/l
(2000 Mg/l)
0.004 mg/l
(4 Mg/D
0.010 mg/l
(10 Mg/l)
0.005 mg/l
(5 Mg/D
1.0 mg/l
(1000 Mg/l)
0.1 mg/l
(100 Mg/l)
1.3 mg/l
Canada
Maximum
Acceptable
Concentration
0.1/0.2 mg/l
(100 - 200 Mg/l)
0.006
(6 Mg/D
0.1 mg/l
(10 Mg/l)
lmg/1
(1000 Mg/l)
0.005 mg/l
(5 Mg/D
0.00001 mg/l
(0.01 Mg/l)
5 mg/l
(5000 Mg/l)
0.01 mg/l
(10 Mg/l)
0.016 mg/l
(16 Mg/D
0.005 mg/l
(5 Mg/D
lmg/1
(1000 Mg/l)
lmg/1
(1000 Mg/l)
0.05 mg/l
(50 Mg/D
European
Union
Parametric
Value
0.1 Mg/l
0.50 mg/l
200 Mg/l
5.0 Mg/l
10 Mg/l
1.0 Mg/l
0.010 Mg/l
1.0 mg/l
10 Mg/l
100 Mg/l
5.0 Mg/l
250 mg/l
0 number/100
ml
2 500 MS cm"1
at 20 °C
50 Mg/l
2.0 mg/l
World Health
Organization
Guideline
Value
10 Mg/l
0.06 mg/l
(60 Mg/l)
0.05 mg/l
(50 Mg/D
2.0 mg/l
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APPENDIX C. REQUIREMENTS AND STANDARDS
Pollutant
Cyanide (as free
cyanide)
Cyanobacterial
toxins
microcystin-LR
1,2-
dichloroethane
Epichlorohydrin
Fluoride
Iron
Lead
Manganese
Mercury
(inorganic)
Nickel
Nitrate (measured
as Nitrogen)
Nitrite (measured
as Nitrogen)
Nickel
Nitrate
Nitrite
Pesticides
Pesticides -Total
Polycyclic
aromatic
hydrocarbons
Selenium
Sulfate
Sodium
Tetrachloroethene
and
Trichloroethene
Thallium
United States
Maximum
Contaminant
Level Goal
0.2 mg/l
(200 Mg/l)
4 mg/l
0
0.002 mg/l
(2 Mg/D
10 mg/l
lmg/1
0.05 mg/l
(50 Mg/D
0.0005 mg/l
Maximum
Contaminant
Level
0.2 mg/l
(200 Mg/l)
4 mg/l
0.015 mg/l
(15 Mg/D
0.002 mg/l
(2 Mg/D
10 mg/l
lmg/1
0.05 mg/l
(50 Mg/l)
0.002 mg/l
Canada
Maximum
Acceptable
Concentration
0.2 mg/l
(200 Mg/l)
0.0015 mg/l
(1.5 Mg/D
1.5 mg/l
0.01 mg/l
(10 Mg/l)
0.001 mg/l
(1 Mg/D
45 mg/l
3.2 mg/l
0.01 mg/l
(10 Mg/l)
European
Union
Parametric
Value
50 Mg/l
3.0 Mg/l
0.10 Mg/l
1.5 mg/l
200 Mg/l
10 Mg/l
50 Mg/l
1.0 Mg/l
20 Mg/l
50 mg/l
0.50 mg/l
20 Mg/l
50 mg/l
0.50 mg/l
0.10 Mg/l
0.50 Mg/l
0.10 Mg/l
10 Mg/l
250 mg/l
200 mg/l
10 Mg/l
World Health
Organization
Guideline
Value
1.5 mg/l
0.07 mg/l
(70 Mg/D
50 mg/l
0.2 mg/l
0.07 mg/l
(70 Mg/D
0.01 mg/l
(10 Mg/l)
0.07 mg/l
(70 Mg/D
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Pollutant
Trihalomethanes
(total)
Vinyl Chloride
PH
United States
Maximum
Contaminant
Level Goal
(0.5 ug/l)
N/A
Maximum
Contaminant
Level
(2 Ug/l)
0.080 mg/l
(80 ug/l)
Canada
Maximum
Acceptable
Concentration
6.5-8.5
European
Union
Parametric
Value
100 ug/l
0.50 ug/l
6.5-9.5
World Health
Organization
Guideline
Value
Sources: US Drinking Water Standards: http://www.epa.gov/ogwdwOOO/contaminants/index.html
WHO Guidelines for Drinking-Water Quality p.186, http://www.who.int/water sanitation health/dwq/fulltext.pdf
EU Quality Standards of Water Intended for Human Consumption:
http://eur-lex.europa.eu/LexUriServ/LexUriserv.do?uri=CONSLEG:1998L0083:20030807:EN:PDF
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Volume II - EIA Technical Review Guidelines
Appendices:Non-Metal and Metal Mining
APPENDIXC. REQUIREMENTS AND STANDARDS
Table C-3
Ambient Air Quality Guidelines and Standards
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Sources for "Ambient Air Quality Standards and Guidelines":
European CommissionAir Quality Standards: http://ec.europa.eu/environment/air/quality/standards.htm
Canadian National Ambient Air Quality Objectives: http://www.hc-sc.gc.ca/ewh-semt/air/out-ext/reg-eng.php
WHO (quoted in International FinanceCorporation Environmental, Health, and Safety Genera I Guidelines):
http://www.ifc.org/ifcext/sustaina bility.nsf/AttachmentsByTitle/gui_EHSGuidelines2007_GeneralEHS/$FILE/Final+
-+General+EHS+Guidelines.pdf
US National Ambient Air Quality Standards: http://epa.gov/air/criteria.htm
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
3 MINING SECTOR SPECIFIC PERFORMANCE STANDARDS
3.1 Mining Sector Water Discharge/ Effluent Limits
Table C-4
the IFC/World
Mining Sector Water Discharge / Effluent Limits in CAFTA-DR Countries, Canada, and
Bank
Pollutant
Aluminum
Arsenic
Barium
Boron
Cadmium
Carbamates
(total)
Chemical
Oxygen
Demand (COD)
Chlorine
(residual)
Chromium
Color (purity)
Copper
Cyanide (total)
Cyanide (free)
Cyanide (free
in recipient
body, outside
mixing area)
Cyanide (weak
acid
dissociable)
Fluoride
Hydrocarbons
Iron
Costa Rica
Effluent
Limits for
Mining
Activities
5mg/l
O.lmg/l
5mg/l
3mg/l
O.lmg/l
O.lmg/l
lmg/1
1.5 mg/l
15%
0.5 mg/l
lmg/1
O.lmg/l
0.005
mg/l
0.5 mg/l
10 mg/l
10 mg/l
Dominican
Republic
Effluent
Limits for
Metal
Mining
O.lmg/l
O.lmg/l
150 mg/l
O.lmg/l
(hexavalent)
0.5 mg/l
1.0 mg/l
O.lmg/l
0.5 mg/l
3.5 mg/l
Nicaragua
Proposed
Effluent
Limits for
Mining and
Metal
Finishing
2 mg/l
0.1 mg/l
lmg/1
(total),
0.5 mg/l
(hexavalent)
0.5 mg/l
lmg/1
United
States
Effluent
Limitations
T3
C
(D
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-4
the IFC / World
Mining Sector Water Discharge/ Effluent Limits in CAFTA-DR Countries, Canada, and
Bank (continued)
Pollutant
Lead
Mercury
Nickel
Nitrogen (total)
Oil and Grease
Organophosphorus
Compounds (total)
Organochlorine
Compounds (total)
Radium 226
Selenium
Settleable Solids
Silver
Sulfites
Sulphides
Tin
Total Metals
Total Suspended
Solids (TSS)
Zinc
Temperature
pH
Costa Rica
Effluent
Limits for
Mining
Activities
0.5 mg/l
0.01 mg/l
lmg/1
50 mg/l
0.1 mg/l
0.05 mg/l
0.05 mg/l
lmg/1
lmg/1
25 mg/l
2 mg/l
5 mg/l
Dominican
Republic
Effluent
Limits for
Metal Mining
0.2 mg/l
0.01 mg/l
0.5 mg/l
10 mg/l
10.0 mg/l
50 mg/l
2.0 mg/l
6.0-9.0
Nicaragua
Proposed
Effluent
Limits for
Mining and
Metal
Finishing
0.5 mg/l
lmg/1
lml/1
50 mg/l
lmg/1
40 °C
6.0-9.0
United
States
Effluent
Limitations
u
'u
Q.
LO
£ «,
S.E
*J !=
(D £
ll
- a
F ra
= £
it «
-------
Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
3.2. Supplemental U.S. Water Discharge / Effluent Limits for the Mining Sector
Discharges of pollutants from any point source into the waters of the U.S. are prohibited except as in
compliance with the Clean Water Act. 33 U.S.C. § 1311. Usually this means that for discharges to be
lawful they must be authorized by permit (The Clean Water Act section 301). Discharge permits are
issued either by EPA or States with programs approved by EPA administering what is called the National
Pollutant Discharge Elimination System (NPDES), or in the case of dredged or fill material the U.S. Army
Corps of Engineers or a state authorized to administer a permit program for such discharges with EPA
objection rights. 33 U.S.C. §§ 1342, 1344. NPDES permits must contain conditions that, at a minimum,
meet water quality standards and technology-based effluent performance limits, which for many ore
mining categories, are found at 40 CFR part 440. EPA takes into account both technology and economics
into account when it promulgates nationwide effluent limitation guidelines, and the basis for the
standards is accessible via the EPA website (http://water.epa.gov/scitech/wastetech/guide/). The limits
listed for reference here are current as of 2009. Users should cross check the EPA website for any
updates.
Table C-5 Overview of US Water Regulations Impacting the Mining Industry
Facility or
Resource
Type
Metal Mines
and Mills
Mineral
Mines
Freshwater
Systems
Drinking
Water
Systems
Drinking
Water
Systems
Environmental
Concern
Effluent levels of
mine water
discharge
Effluent levels of
mine water
discharge
Contamination
of US freshwater
systems
Health impacts
of contamination
of US drinking
water
Aesthetic
characteristics
or cosmetic
effects of US
drinking water
Relevant
Statute
Clean Water
Act (CWA)
Clean Water
Act (CWA)
Clean Water
Act (CWA)
Safe Drinking
Water Act
(SDWA)
Safe Drinking
Water Act
(SDWA)
Relevant Rule or
Regulation
40 CFR 440 - Ore
Mining and Dressing
Point Source Category
(SubpartsA-M)
40 CFR 436 -Mineral
Mining and
Processing Point
Source Category
National
Recommended Water
Quality Criteria (EPA
website)
Drinking Water
Contaminants (EPA
website)
National Secondary
Drinking Water
Regulations (NSDWRs)
(EPA website)
Relevant Table
"US Effluent
Limitations for
Metal Mines and
Mills"
"US Effluent
Limitations for Sand
& Gravel Mining"
"US National
Recommended
Freshwater Quality
Standards"
"US Drinking Water
Contaminants
MCLGsand MCLs
(Inorganic
Chemicals)"
"US Federal
Secondary Drinking
Water Standards"
Website Reference
http://ecfr.gpoaccess.gov/cgi/t/te
xt/text-
idx?c=ecfr;sid=29906bec440a53789
ceba96d841cc756;rgn=div5;view=t
ext;node=40%3A29.0.1.1.16;idno=4
0;cc=ecfr
http://ecfr.gpoaccess.gOV/cgi/t/te
xt/text-
idx?c=ecfr;sid=29906bec440a53789
ceba96d841cc756;rgn=div5;view=t
ext;node=40%3A29.0.1.1.12;idno=4
0;cc=ecfr#40:29.0.1.1.12. 6.4.3
http://www.epa.gov/waterscienc
e/criteria/wqctable/index.html#c
me
http://www.epa.gOV/safewater/c
ontaminants/index.html#8
http://www.epa.gOV/safewater/c
ontaminants/index.html#8
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-6 Mine Discharges Subject to Permitting in the US
Runoff/drainage discharges subject to
40 CFR Part 440 effluent limitation
guidelines
Land application area
Crusher area
Spent ore piles, surge piles, ore
stockpiles, waste rock/overburden piles
Pumped and unpumped drainage and
mine water from pits/underground
mines
Seeps/French drains
On-site haul roads, if constructed of
waste rock or spent ore or if wastewater
subject to mine drainage limits is used
for dust control
Tailings dams/dikes when constructed
of waste rock/tailings
Unreclaimed disturbed areas
Subject to storm water permitting (not
subject to 40 CFR Part 440)
Topsoil piles
Haul roads not on active mining area
On-site haul roads not constructed of
waste rock or spent ore (unless
wastewater subject to mine drainage limits
is used for dust control)
Tailings dams, dikes when not constructed
of waste rock/tailings
Concentration/mill building/site (if
discharge is storm water only, with no
contact with piles)
Reclaimed areas released from
reclamation bonds prior to December 17,
1990
Partially, inadequately reclaimed areas or
areas not released from reclamation bond
Most ancillary areas (e.g. chemical and
explosive storage, power plant,
equipment/truck maintenance and wash
areas, etc.)
Source: Profile of the Metal Mining Industry: EPA Office of Compliance Sector Notebook, p. 87
http://www.epa.gov/compliance/resources/publications/assistance/sectors/notebooks/metminsn.pdf
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-7
US Effluent Limitations for Mining and Processing of Sand and Gravel
(Process Generated Waste Water and Mine Dewatering Discharges)
pH
Construction Use (14)
Process Generated
Waste Water
IDay
6.0-9.0
30 Day
Avg.
6.0-9.0
Mine Dewatering
Discharges
1 Day
6.0-9.0
30 Day
Avg.
6.0-9.0
Effluent Characteristic
pH
Total
Suspended
Solids
(TSS)
Total
Flouride
Industrial Use (15)
Process Generated
Waste Water
(HF Flotation)
IDay
6.0-9.0
0.046
kg/kkg
0.006
kg/kkg
30 Day
Avg.
6.0-9.0
0.023
kg/kkg
0.003
kg/kkg
Process Generated
Waste Water
(No HF Flotation)
1 Day
6.0-9.0
45 mg/l
30 Day
Avg.
6.0-9.0
25 mg/l
Mine Dewatering
Discharges
IDay
6.0-9.0
45 mg/l
30 Day
Avg.
6.0-9.0
25 mg/l
Source: US Code of Federal Regulations Title 40 Part 436 Subparts C-D (last amended July 12, 1995).
Subpart C - Construction Sand and Gravel:
http://frwebgate3.access.gpo.gov/cgi-
bin/TEXTgate.cgi?WAISdoclD=94272926199+37+l+0&WAISaction=retrieve
Subpart D - Industrial Sand:
http://frwebgate3.access.gpo.gov/cgi-
bin/TEXTgate.cgi?WAISdoclD=94272926199+36+l+0&WAISaction=retrieve
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-8 US Effluent Limitations for Metal Mines and Mills (40 CFR Part 440)
to
£
ro
-t-<
3
~o
Q.
Total
Suspended
Solids (TSS)
Iron (Fe)
(Dissolved)
Copper (Cu)
Zinc (Zn)
Lead (Pb)
Mercury
(Hg)
Cadmium
(Cd)
Arsenic
(As)
Settleable
Solids
pH Range
Metal Being Mined or Processed
Iron (1)
1 Day
30 mg/l
2.0 mg/l
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Avg. (30
days)
20 mg/l
1.0 mg/l
n/a
n/a
n/a
n/a
n/a
n/a
n/a
6.0-9.0
Copper, Lead, Zinc,
Silver, Gold (non-
placer mines) (2)
1 Day
30 mg/l
n/a
.30 mg/l
1.0 mg/l (6)
1.5 mg/l (7)
.6 mg/l
.002 mg/l
.10 mg/l
n/a
n/a
Avg. (30
days)
20 mg/l
n/a
.15 mg/l
.5 mg/l (6)
.75 mg/l (7)
.3 mg/l
.001 mg/l
.05 mg/l
n/a
n/a
6.0-9.0
Molybdenum (3)
1 Day
30 mg/l
50 mg/l
(4)
n/a
.3 mg/l
1.0 mg/l
.6 mg/l (8)
n/a
.10 mg/l
(10)
1.0 mg/l
(11)
n/a
Avg. (30
days)
20 mg/l
30 mg/l
(4)
n/a
.15 mg/l
.5 mg/l
.3 mg/l (8)
n/a
.05 mg/l
(10)
.5 mg/l
(11)
n/a
6.0-9.0
Gold (placer
mines)
1 Day
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
0.2 ml/1
(13)
Avg. (30
days)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
0.2 ml/1
(13)
6.0-9.0
Nickel
1 Day
30 mg/l
50 mg/l
(5)
n/a
.30 mg/l
1.0 mg/l
.6 mg/l (9)
n/a
.10 mg/l
1.0 mg/l
(12)
n/a
Avg. (30
days)
20 mg/l
30 mg/l
(5)
n/a
.15 mg/l
.5 mg/l
.3 mg/l (9)
n/a
.05 mg/l
.5 mg/l
(12)
n/a
6.0-9.0
Source: US Code of Federal Regulations Title 40 Part 440 (last amended May 24,
1988).http://ecfr.gpoaccess.gov/cgi/t/text/text-
idx?c=ecfr&sid=ce9b752ale80c7deda2119al73134896&rgn=div6&view=text&node=40:29.0.1.1.16.10&
idno=40
NOTES to "US Effluent Limitations for Metal Mines and Mills (40 CFR Part 440)":
1 Applies to discharges from (a) mines operated to obtain iron ore, regardless of the type of ore or
its mode of occurrence; (b) mills beneficiating iron ores by physical (magnetic and nonmagnetic)
and/or chemical separation; and (c) mills beneficiating iron ores by magnetic and physical
separation in the Mesabi Range. §440.10.
2 Applies to (a) mines that produce copper, lead, zinc, gold, or silver bearing ores, or any
combination of these ores from open-pit or underground operations other than placer deposits;
(b) mills that use the froth-flotation process alone or in conjunction with other processes, for
the beneficiation of copper, lead, zinc, gold, or silver ores, or any combination of these ores; (c)
mines and mills that use dump, heap, in-situ leach, or vat-leach processes to extract copper
from ores or ore waste materials; and (d) mills that use the cyanidation process to extract gold
or silver. §440.100.
3 Applies to mines that produce molybdenum bearing ores from open-pit or underground
operations other than placer deposits and mills that use the froth-flotation process alone or in
conjunction with other processes, for the beneficiation of molybdenum ores. §440.100.
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Volume II - EIA Technical Review Guidelines APPENDIX C. REQUIREMENTS AND STANDARDS
Appendices: Non-Metal and Metal Mining
4 Applies to discharges from mines producing less than 5,000 metric tons or mills processing less
than 5,000 metric tons of molybdenum per year by processes other than ore leaching.
§440.102(f).
5 Applies to pollutants discharged in mine drainage from mines producing less than 5,000 metric
tons or discharged from mills processing less than 5,000 metric tons of nickel ores per year by
methods other than ore leaching. § 440.72(b).
6 Applies to pollutants discharged from mills which employ the froth flotation process alone or in
conjunction with other processes, for the beneficiation of copper ores, lead ores, zinc ores, gold
ores, or silver ores, or any combination of these ores. Includes both new and existing sources.
§440.102(b); §440.103(b).
7 Applies to pollutants discharged in mine drainage from mines operated to obtain copper bearing
ores, lead bearing ores, zinc bearing ores, gold bearing ores, or silver bearing ores, or any
combination of these ores through open-pit or underground operations other than placer
deposits. §440.102(a); §440.103(a).
8 Applies only to pollutants discharged in main drainage from mines (not mills) producing 5,000
metric tons or more of molybdenum bearing ores per year. §440.102(e).
9 Applies only to drainage from mines (not mills) producing 5,000 metric tons or more of nickel
ores every year. §440.72(a).
10 Does not apply to mines producing fewer than 5,000 metric tons of molybdenum bearing ore
per year. §440.102(f).
11 Applies to pollutants discharged in mine drainage from mines producing 5,000 metric tons or
more of molybdenum bearing ores per year, pollutants discharged from mills processing 5,000
metric tons or more of molybdenum per year by purely physical methods such as crushing,
washing, jigging, or heavy media separation, or by froth flotation methods. §440.102(e), (g)-(h).
12 Does not apply to mines producing fewer than 5,000 metric tons of nickel bearing ore per year.
§440.72(b).
13 Applies to pollutants in process wastewater discharges from open-cut mine plants and dredge
plant sites. §440.142-144.
NOTES to "US Effluent Limitations for Sand & Gravel Mining (Process Generated Waste Water and Mine
Dewatering Discharges)":
14 Applies to the mining and the processing of sand and gravel for construction or fill uses, except
that on-board processing of dredged sand and gravel which is subject to the provisions of 33 CFR
Part 230. §436.30
15 Applies to the mining and the processing of sand and gravel for uses other than construction
and fill. These uses include, but are not limited to glassmaking, molding, abrasives, filtration,
refractories, and refractory bonding. § 436.40
3.3. Storm water Runoff Performance Requirements for the Mining Sector
In the United States, the Environmental Protection Agency (USEPA) issued in 2008 an updated Multi-
Sector General Permit (MSGP) for storm water runoff associated with industrial sources. The MSGP
identifies specific actions facility operators must take to qualify for a permit, including the submission of
a Notice of Intent (NOI), the installation of storm water control measures aimed at minimizing pollutants
in storm water runoff, and the formulation of a storm water pollution prevention plan (SWPPP).
Although the MSGP only applies in states to which EPA has not delegated permitting authority (5 states
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
at the time of this writing), it provides a useful standard for determining allowable pollutant levels in
storm water runoff. For more information on where MSGP requirements apply, see Appendix C of the
2008 MSGP (available at http://www.epa.gov/npdes/pubs/msgp2008 appendixc.pdf).
The US MSGP includes several types of required analytical monitoring, one or more of which may apply
to a given facility. These monitoring types include: quarterly benchmark monitoring, annual effluent
limitations guidelines monitoring, State- or Tribal-specific monitoring, impaired waters monitoring, and
other monitoring as required by EPA. EPA has issued several documents to assists industry in complying
with the MSGP monitoring requirements, including the Industrial Storm water Monitoring and Sampling
Guide (available at http://www.epa.gov/npdes/pubs/msgp monitoring guide.pdf).
Under US requirements, benchmark monitoring must be conducted once every three months for the
first year of operation under a new permit. Benchmark concentrations are not strict effluent limitations,
and they are intended primarily to assist permittees in evaluating the effectiveness of their pollution
prevention measures. Consequently, failure to meet a benchmark standard does not result in a permit
violation. However, where the average monitoring value for four consecutive quarters exceeds the
benchmark, a permittee must undertake a review of the facility's control measures to determine if they
are adequate to meet the permit's effluent limits.
Within the mining sector, benchmark concentrations are organized by subsector, such as Subsector Gl,
which applies to active copper ore mining and dressing facilities, and Subsector G2, covering iron ores,
copper ores, lead and zinc ores, gold and silver ores, ferroalloy ores (except vanadium), and
miscellaneous metal ores (see tables below). Permittees should be aware that a single facility may be
subject to monitoring requirements under multiple subsectors.
Table C-9 US Benchmark Monitoring Concentrations for Subsector Gl:
Active Copper Ore Mining and Dressing Facilities
to
1_
(L)
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Volume II - EIA Technical Review Guidelines
Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-10 US Benchmark Monitoring Concentrations for Subsector G2
(Discharge from Waste Rock and Overburden Piles)
Subsector
Subsector G2:
Iron Ores;
Copper Ores;
Lead and Zinc
Ores; Gold
and Silver
Ores;
Ferroalloy
Ores, Except
Vanadium;
and
Miscellaneous
Metal Ores
Parameter
Total Suspended
Solids (TSS)
Turbidity
PH
Hardness
Total Antimony
Total Arsenic
Total Beryllium
Total Cadmium
Total Copper
Total Iron
Total Lead
Total Mercury
Total Nickel
Total Selenium
Total Silver
Total Zinc
Benchmark
Monitoring Cutoff
Concentration
100 mg/l
50NTU
6.0-9.0 s.u.
No Benchmark
Value
0.64 mg/l
0.15 mg/l
0.13 mg/l
Hardness
Dependent
Hardness
Dependent
1.0 mg/l
Hardness
Dependent
0.0014 mg/l
Hardness
Dependent
0.005 mg/l
Hardness
Dependent
Hardness
Dependent
Source: Multi-Sector General Permit for Storm water Discharges Associated with Industrial Activity
(MSGP): Authorization to Discharge Under the national Pollutant Discharge Elimination System, p. 67
(Effective May 27, 2009). http://www.epa.gov/npdes/pubs/msgp2008 finalpermit.pdf
As shown in the table above, benchmark values for certain parameters are dependent on the hardness
of receiving waters. Permittees must first measure the hardness of the receiving water and then refer to
the appropriate water hardness range to determine the applicable benchmark value.
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APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-ll US Hardness Dependent Benchmarks for Subsector G2
(Discharge from Waste Rock and Overburden Piles)
Water Hardness
Range
0-25 mg/l
25-50 mg/l
50-75 mg/l
75-100 mg/l
100-125 mg/l
125-150 mg/l
150-175 mg/l
175-200 mg/l
200-225 mg/l
225-250 mg/l
250+ mg/l
Cadmium
(mg/l)
0.0005
0.0008
0.0013
0.0018
0.0023
0.0029
0.0034
0.0039
0.0045
0.005
0.0053
Copper
(mg/l)
0.0038
0.0056
0.009
0.0123
0.0156
0.0189
0.0221
0.0253
0.0285
0.0316
0.0332
Lead
(mg/l)
0.014
0.023
0.045
0.069
0.095
0.122
0.151
0.182
0.213
0.246
0.262
Nickel
(mg/l)
0.15
0.2
0.32
0.42
0.52
0.61
0.71
0.8
0.89
0.98
1.02
Silver
(mg/l)
0.0007
0.0007
0.0017
0.003
0.0046
0.0065
0.0087
0.0112
0.0138
0.0168
0.0183
Zinc
(mg/l)
0.04
0.05
0.08
0.11
0.13
0.16
0.18
0.2
0.23
0.25
0.26
Source: Multi-Sector General Permit for Storm water Discharges Associated with Industrial Activity
(MSGP): Authorization to Discharge Under the national Pollutant Discharge Elimination System, p. 67
(Effective May 27, 2009). http://www.epa.gov/npdes/pubs/msgp2008 finalpermit.pdf
3.3.1 Storm water Runoff Effluent Limit Monitoring Requirements
In addition to quarterly benchmark monitoring, US permitting standards require permittees to engage in
annual monitoring for effluent limits based on sector-specific guidelines. Monitoring must be conducted
on waste streams resulting from the particular industrial activity in question prior to commingling with
other waste streams, even those covered under other areas of the permit. In addition to numerical
effluent limits, the MSGP also includes technology-based effluent limits. For the metal mining sector,
these technology-based limits include storm water diversions, capping, and treatment.
3.3.2 Additional Storm water Runoff Monitoring Requirements
For particular sectors or subsectors, the MSGP imposes additional monitoring requirements. For
example, MSGP Part 8.G.8.3 mandates monitoring of additional parameters based on the type of ore
being mined at a given site:
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APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-12 US Monitoring Requirements for Discharges
from Waste Rock and Overburden Piles
Type of Ore
Mined
Tungsten
Ore
Nickel Ore
Aluminum
Ore
Mercury Ore
Iron Ore
Platinum Ore
Titanium Ore
Vanadium
Ore
Molybdenum
Uranium,
Radium, and
Vanadium
Ore
Pollutants of Concern
Total
Suspended
Solids
(TSS)
X
X
X
X
X
X
X
X
X
PH
X
X
X
X
X
X
X
X
X
Metals, Total
Arsenic, Cadmium (H), Copper (H),
Lead (H), Zinc (H)
Arsenic, Cadmium (H), Copper (H),
Lead (H), Zinc (H)
Iron
Nickel (H)
Iron (Dissolved)
Cadmium, Copper (H), Mercury, Lead
(H),Zinc(H)
Iron, Nickel (H), Zinc (H)
Arsenic, Cadmium (H), Copper (H),
Lead (H), Zinc (H)
Arsenic, Cadmium (H), Copper (H),
Lead(H), Mercury, Zinc (H)
Chemical Oxygen Demand, Arsenic,
Radium (Dissolved and Total),
Uranium, Zinc (H)
NOTE:
"X" indicated for TSS and/or pH means that permitees are required to monitor for those
parameters.
"H" indicates that hardness must also be measured when this pollutant is measured.
Source: Multi-Sector General Permit for Storm water Discharges Associated with Industrial Activity
(MSGP): Authorization to Discharge Under the national Pollutant Discharge Elimination System, p. 68
(Effective May 27, 2009). http://www.epa.gov/npdes/pubs/msgp2008 finalpermit.pdf
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APPENDIX C. REQUIREMENTS AND STANDARDS
3.4. AIR EMISSION LIMITS FOR THE MINING SECTOR
The lack of air emissions standards for sources relevant to this guideline limits this section to benchmark
standards from the U.S. EPA. The section addresses air emission limits for generators used to supply
electricity for mining equipment and operations and emissions limits for smelting operations that may
be co-located with a mine.
Table C-13 US Emission Limits for Compression Ignition Internal Combustion Generators
(Displacement <10 Liters Per Cylinder)23
Maximum
Engine Power
KW<8(HP<11)
8560
(HP>750)
(except
generator sets)
Generator Sets
560900
(HP>1200)
Model
Year(s)
2008+
2008+
2008-2012
2013+
2008-2012
2013+
2008-2011
2012-2013
2014+
2008-2011
2012-2013
2014+
2007-2010
2011-2013
2014+
2007-2010
2011-2014
2015+
2007-2010
2011-2014
2015+
2007-2010
2011-2014
2015+
NMHC+NOX
4.7(3.5)
4.7(3.5)
4.7(3.5)
4.0(3.0)
6.4 (4.8)
6.4 (4.8)
6.4 (4.8)
NMHC24
0.19
(0.14)26
0.19(0.14)
0.19
(0.14)26
0.19(0.14)
0.19
(0.14)26
0.19(0.14)
0.40 (0.30)
0.19(0.14)
0.40 (0.30)
0.19 (0.14)
0.40 (0.30)
0.19(0.14)
NOX24
0.40
(0.30)26
0.40 (0.30)
0.40
(0.30)26
0.40 (0.30)
0.40
(0.30)26
0.40 (0.30)
3.5 (2.6)
3.5 (2.6)
3.5 (2.6)
0.67 (0.50)
0.67 (0.50)
CO24
5.0(3.7)
5.0(3.7)
3.5(2.6)
3.5(2.6)
3.5(2.6)
3.5(2.6)
PM24
0.40 (0.30)
0.40 (0.30)
0.30 (0.22)
0.03 (0.02)
0.30
(0.22)25
0.03 (0.02)
0.02 (0.01)
0.02 (0.01)
0.20(0.15)
0.02 (0.01)
0.20(0.15)
0.10
(0.075)
0.04 (0.03)
0.20(0.15)
0.10
(0.075)
0.03 (0.02)
0.20(0.15)
0.10
(0.075)
0.03 (0.02)
Source: Federal Register Vol. 71 No. 132 (July 11, 2006).
http://www.epa.gov/ttn/atw/nsps/cinsps/frlliy06.pdf.
NOTES to "US Emissions Limits for Compression Ignition Internal Combustion Generators (Displacement
< 10 Liters Per Cylinder)":
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Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
16 All units are grams/kilowatt-hour (grams/horsepower-hour).
17 NMHC= Non-methane Hydrocarbons; NOX= Nitrous Oxides; CO = Carbon Monoxide; PM =
Particulate Matter
18 A manufacturer has the option of skipping the 0.30 g/KW-hr PM standard for all 37-56 KW (50-
75 HP) engines. The 0.03 g/KW-hr standard would then take effect 1 year earlier for all 37-56
KW (50-75 HP) engines, in 2012. The Tier 3 standard (0.40 g/KW-hr) would be in effect until
2012.
19 50 percent of the engines produced have to meet the NMHC + NOX, and 50 percent have to
meet the separate NOX and NMHC limits.
Table C-14 US Emissions Limits for Compression Ignition Internal Combustion Generators
(Displacement >10 Liters and <30 Liters Per Cylinder; Model Year 2007 and Later)27
Engine Size (Liters per Cylinder), Rated
Power
5.03,300 KW
20.0
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Appendices: Non-Metal and Metal Mining
APPENDIX C. REQUIREMENTS AND STANDARDS
Table C-15 US National Emissions Standards for Hazardous Air Pollutants (NESHAP)
for Metal Processing Facilities
Paniculate
Matter
Sulfur
Dioxide
Visible
Emissions
Paniculate
Matter
Sulfur
Dioxide
Visible
Emissions
Paniculate
Matter
Sulfur
Dioxide
Visible
Emissions
Paniculate
Matter
Sulfur
Dioxide
Visible
Emissions
Primary Lead Smelters
Blast furnace, dross
reverberatory furnace, or
sintering machine
50 mg/dscm
(0.022 gr/dscf)
20% opacity
Sintering machine, electric
smelting furnace, or
converter
0.065%
by volume
Facility using
su If uric acid plant
20%
opacity
Primary CopperSmelters
Any dryer
50 mg/dscm
(0.022 gr/dscf)
Roaster, smelting furnace,
or copper converter
0.065%
by volume
Dryer or facility
using su If uric acid
plant
20% opacity
Primary Zinc Smelters
Sintering machine
50 mg/dscm
(0.022 gr/dscf)
Roaster
0.065%
by volume
Metallic Mineral Processing Plants
Any stack emissions
0.05 g/dscm
(0.02 g/dscm)
7%opacity
(unless a wet scrubbing
emission control device is used)
Fugitive emissions
10% opacity
Sintering machine
or facility using a
su If uric acid plant
20% opacity
Secondary Lead Smelters
Blast (cupola) or
reverberatory
furnace
50 mg/dscm
(0.022 gr/dscf)
20% opacity
Pot furnace
10% opacity
Source: Code of Federal Regulations Title 40 Part 60 Subparts L (Secondary Lead Smelters, last amended
Oct. 6. 1975), LL (Metallic Mineral Processing Plants, last amended Oct. 17, 2000), P (Primary Copper
Smelters, last amended Oct. 17, 2000), Q (Primary Zinc Smelters, last amended Feb. 14, 1989), and R
(Primary Lead Smelters, last amended Jan. 15, 1976).
3.5 MINING SECTOR SOLID WASTE
Numerical performance limits are unavailable for processing wastes from mining activities, and
countries frequently rely upon relevant air or water standards to address them. Performance
expectations for waste management typically are addressed in terms of management practices. Often,
one must consider whether the wastes are solid, liquid or gas, the proposed means of storing, treating
and disposing of the wastes, and the risks of release into the air or water media. In the U.S., the Mining
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APPENDIX C. REQUIREMENTS AND STANDARDS
Waste Exclusion exempts 20 mineral processing wastes from regulation as hazardous wastes22 (although
they are still subject to regulation as nonhazardous wastes). These include:
10
11
12
13
14
15
16
17
18
19
20
Slag from primary copper processing
Slag from primary lead processing
Red and brown muds from bauxite refining
Phosphogypsum from phosphoric acid production
Slag from elemental phosphorous production
Gasifier ash from coal gasification
Process wastewater from coal gasification
Calcium sulfate wastewater treatment plant sludge from
primary copper processings
Slag tailings from primary copper processings
Flurogypsum from hydrofluoric acid production
Process wastewater from hydrofluoric acid production
Air pollution control dust/sludge from iron blast furnaces
Iron blast furnace slag
Treated residue from roasting/leaching of chrome ore
Process wastewater from primary magnesium processing
by the anhydrous process
Process wastewater from phosphoric acid production
Basic oxygen furnace and open hearth furnace air
pollution control dust/sludge from carbon steel
production
Basic oxygen furnace and open hearth furnace slag from
carbon steel production
Chloride process waste solids from titanium tetrachloride
production
Slag from primary zinc processing
Source: http://www.epa.gov/osw/nonhaz/industrial/special/mining
NOTES to "20 Mineral Processing Wastes Covered by the Mining Waste Exclusion (Exempt from
Regulation under RCRA Subtitle C)":
22 All mineral processing wastes not specifically named are still subject to RCRA Subtitle C if they
are characteristically hazardous.
4 INTERNATIONAL TREATIES AND AGREEMENTS
CAFTA DR countries have ratified and/or signed a number of international treaties and agreements
which provide commitments to adopting and implementing a range of environmental protection
regimes. Most do not confer specific quantitative benchmarks for performance and so are not
summarized in this Appendix. However, for convenience they are listed below as of the date of
publication.
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Volume II - EIA Technical Review Guidelines APPENDIX C. REQUIREMENTS AND STANDARDS
Appendices: Non-Metal and Metal Mining
5 MINING SECTOR WEBSITE REFERENCES
Canada: Environment Canada
The New Metal Mining Effluent Regulations
www. environment-Canada. ca/nopp/docs/regs/mmer/EN/index.cfm
World Bank Group / International Finance Corporation
Environmental, Health and Safety Guidelines for Mining
www.ifc.org/ifcext/sustainability.nsf/AttachmentsBvTitle/gui EHSGuidelines2007 Mining/$File/
Final+-+Mining.pdf
United States Environmental Protection Agency
Compliance Assistance for the Minerals/Mining/Processing Sector
www.epa.gov/compliance/assistance/sectors/mineralsmining.html
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[This page is intentionally blank.]
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Appendices: Non-Metal and Metal Mining
APPENDIX D. EROSION AND SEDIMENTATION
EPA and Hardrock Mining: A Source Book for Industry in the Northwest and Alaska January 2003
Appendix H: Erosion and Sedimentation
http://www.epa. gov/cgibin/epalink?logname=allsearch&referrer=mining 1111 All&target=http://yosemit
e.epa.gov/R10/WATER.NSF/840a5de5dOa8dl418825650f00715a27/e4bal5715e97ef2188256d2c00783
a8e/$FILE/Maintext.pdf
1 GOALS AND PURPOSE OF THE APPENDIX
Baseline knowledge of soil erosion and the subsequent transport and deposition of eroded sediment
into streams and other water bodies is essential to mine planning and operation. Accurate
measurement of natural erosion and erosion from disturbed areas is important to develop control
practices. Significant environmental impacts, such as the irretrievable loss of soil, or the degradation of
aquatic life from the sedimentation of streams, lakes, wetlands, or marine estuaries, can be minimized
or prevented by employing control practices. The measurement and prediction of the amounts of
erosion and sedimentation is inherently tied to the measurement and prediction of site hydrologic
variables such as precipitation, runoff, and stream flow. An outline and comparison of methods,
analytical procedures, and modeling for the characterization and measurement of site hydrology is
presented in Appendix A, Hydrology. The goal of this appendix is to outline the rationale and methods
to characterize and monitor soil erosion and sedimentation. This appendix also outlines and discusses
the design and effectiveness of control practices to minimize impacts to water quality and aquatic
resources. This appendix includes reference sections of both cited literature and other relevant
references. A reference by Barfield et al. (1981) provides an excellent compendium of both hydrologic
methods, as well as methods to measure erosion and to design erosion control structures at mines. The
reader is referred to this source for a detailed compendium of methods to measure erosion and design
control measures to mitigate erosion and sedimentation at mines.
2 TYPES OF EROSION AND SEDIMENT TRANSPORT
Erosion is a natural geologic process that is easily induced and accelerated by man's activities. Mining
activities can require the disturbance of large areas of ground and require large-scale earth moving
activities which expose large amounts of soil to erosive forces. Operations can be planned, however, to
minimize the amount of soil exposed and to reduce or prevent adverse effects on the streams or other
water bodies from sedimentation. Soil erosion can be defined as the detachment, transport, and
deposition of soil particles. Detachment is the dislodging of soil particles from aggregates or soil peds
from either rain drop impact or from the shearing forces of water or air flowing over the surface. Of
these, rain drop impact is the primary force causing detachment, while the flow of water or air over the
surface is the primary mechanism for transport. Rain drop splash can also be a cause of soil transport at
a micro-scale (Maclean, 1997). Transport by runoff across the surface, therefore, does not generally
occur until the rainfall rate exceeds the infiltration capacity of the soil. Once runoff occurs, the quantity
and size of soil particles transported is a function of the velocity of the flow (Barfield et al., 1981).
Transport capacity decreases with decreasing velocity causing deposition. As velocity decreases, the
largst particles and aggregates are deposited first with smaller particles being carried down slope.
Deposition, therefore, usually results in the size and density sorting of eroded soil particles, with
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Appendices: Non-Metal and Metal Mining
increasingly smaller sized particles being deposited down slope or down stream. The deposition of
detached soil in streams is often referred to as sedimentation.
2.1 INTERRILL AND RILL EROSION
Erosion occurs on disturbed or exposed areas by either interill or rill erosion. Interill erosion is
sometimes referred to as sheet erosion. The primary erosive force in interrill areas is rain drop impact,
where increasing detachment and erosion rates occur with increasing drop size and drop velocity. Rills
are small channels which form on the surface as a result of increasing amounts of runoff. By definition,
rills can generally be removed by ordinary tillage equipment or from light grading. Larger channels are
considered gullies (see Section 2.2). Detachment occurs in rills by the shear forces of flowing water in
the rill. The number of rills and the amount of rill erosion increases as the slope or the amount of
surface runoff increases. Interill erosion is the dominant process on shallower slopes. Surface
roughness and soil cohesive properties are the primary factors in controlling the degree of interill and rill
erosion that occurs from an exposed area. The amount of vegetation cover is the primary factor
affecting surface roughness. Vegetation decreases the velocity of runoff across the surface and protects
the soil from rain drop impact. Other measures can be employed to increase surface roughness and
minimize erosion. These measures are discussed in Section 6.0, Best Management Practices.
2.2 GULLY EROSION
Gullies can be either continuous or discontinuous channels that flow in response to runoff events. By
definition, gullies differ from rills in that they cannot be removed by ordinary tillage or grading practices.
Gullies may be a temporary feature by being erosively active, or in a state of "healing" where annual
deposition within the gully is greater than the detachment and transport of eroded materials. Healing is
usually caused by changes in land use that reduce the velocity of surface runoff, such as applying
reclamation measures to increase surface roughness and promote infiltration. The physical process of
erosion in gullies is essentially the same as that described for rills. Erosion in gullies occurs primarily
from the shear forces of flowing water. Foster (1985), however, indicated that the amount of erosion
from gullies is usually less than the amount that occurs from rills. This is because the amount of
erodible particles are quickly removed from the gully channel, where rills are established on an actively
eroding surface. Therefore, after initial formation, gullies usually serve as a principal transport
mechanism for entrained soils. Gullies can form quickly during extreme events on denuded land and
can rapidly expand both up and down slope (Maclean, 1997). In these cases, gullies temporarily serve as
large sources of eroded soil and sedimentation to water bodies. Uncontrolled runoff and gully
formation can be a large source of transported sediment at mine sites.
2.3 STREAM CHANNEL EROSION
tream channels differ from gullies in that they are permanent channels that transport surface waters.
Stream channels can be perennial, ephemeral or intermittent. In stable stream channels, erosion and
deposition is controlled by the transport capacity of a given stream flow, which is, in turn, governed by
the velocity of flow and by local variations in shear stress in the channel. Detachment and entrainment
of soil particles will occur along the stream bed and sides of a channel when the transport capacity is
greater than the sediment load being transported. Deposition occurs when the transport capacity is less
than the sediment load being transported. As described in Section 2.0 above, deposition occurs from
the largest to the smallest particles as velocity and transport capacity decrease. Potential impacts from
mine related activities on channel erosion processes are discussed in Section 3.0.
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2.4 MASS WASTING, LANDSLIDES AND DEBRIS FLOWS
Landslides and slope failures that create large areas of mass wasting can occur naturally or can be
induced as a result of man's activities. The potential for landslides to occur generally increases in steep
areas containing unstable soils or where the bedrock has unfavorable dip directions. Landslides and
slope failures occur naturally over time, usually during extreme precipitation events when saturation
reduces the shear strength of the soils or rock. Slope failures and landslides can also be induced by
construction activities that create cuts or slopes where soils or rock are left exposed at steep, unstable
angles.
Landslides can expose large areas of soil and debris that are subject to the erosion and sedimentation
processes discussed above. Landslides can block stream channels with soil and rock debris, causing
ponding and eventual flooding. The eventual failure of an unstable blockage can result in flood flows
that entrain large quantities of soil and rock debris. Scouring of the existing channel below the landslide
also results from the high flood flows. Additional debris loading can occur from mass wasting along the
side slopes, adding more sediment and debris loads to the flood flow.
Effects from avalanches can be similar to those of landslides. Avalanches can remove vegetation,
increasing the erosion potential of exposed soils and rock. Debris and snow from an avalanche can
temporarily block stream channels, creating floods, channel scour, and mass wasting along side slopes.
Landslides, slope failures, and avalanches can create large impacts to aquatic resources. Increased
erosion and resulting sedimentation within a watershed can impact spawning gravels, egg survival and
emergence of frye, as well as degrade benthic food sources. Flooding can create high velocity flows,
scour stream banks and destroy gravel substrates either by scour or by burial beneath sediment. Cover
created by large woody debris and stable banks also can be destroyed, which impacts rearing and
resting habitat for fishes.
3 MINING-RELATED SOURCES OF EROSION AND SEDIMENTATION
Increased potentials for erosion and sedimentation at mines are related to mine construction and
facility location. Tailings dams, waste rock and spent ore storage piles, leach facilities, or other earthen
structures are all potential sources of sedimentation to streams. Road construction, logging, and
clearing of areas for buildings, mills, and process facilities can expose soils and increase the amount of
surface runoff that reaches streams and other surface water bodies. These activities increase the
potential for rill and interill erosion and can increase peak stream flows, increasing the potential for
channel erosion. Unusually high peak flows can erode stream banks, widen primary flow channels,
erode bed materials, deepen and straighten stream channels, and alter channel grade (slope). In turn,
these changes in stream morphology can degrade aquatic habitats. Channelization can increase flow
velocities in a stream reach, potentially affecting fish passage to upstream reaches during moderate to
high stream flows. Poorly designed stream diversions can also create channelization effects and alter
flow velocities in a stream. Increased erosion upstream and the resulting sedimentation downstream
can impact spawning gravels, egg survival and emergence of frye, as well as degrade benthic food
sources. More detail on these potential impacts is given in Appendix A, Hydrology. Tailings dams and
large embankments can also fail, creating impacts similar to those discussed in Section 2.4 above for
landslides and debris flows.
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4 METHODS TO MEASURE AND PREDICT EROSION AND SEDIMENTATION
Most methods to measure, predict and control erosion and sedimentation have been developed by the
agriculture industry.These methods concentrate on predicting gross erosion and sediment yield from
disturbed areas or areas under tillage. This is advantageous for evaluating and predicting impacts that
result from mining because tillage agriculture and mining have several similarities (Barfield et al., 1981).
Both industries can disturb and expose large areas of ground and both must apply practices to limit or
eliminate soil-loss and sedimentation impact. It should be noted, however, that many mine sites are
often located on steeper slopes and in more diverse topography than agricultural lands. Methods
developed for the measurement of erosion and sedimentation from agricultural lands are generally not
adapted or tested for use on steep slopes. For this reason, appropriate conservatism should be applied
when choosing analytical methods and in evaluating predictive results.
Most methods to measure or predict erosion and sedimentation are designed to predict either: (1)
"gross erosion", (2) "sediment yield", (3) a "sediment delivery ratio", or (4) sediment loading in streams.
Gross erosion is defined as the total estimated amount of sediment that is produced from rill and interill
erosion in an area (Barfield et al., 1981). The sediment yield from an area or watershed is the gross
erosion, plus the additional erosion that is contributed from gullies and stream channels, minus the
amount of deposition. The amount of deposition that occurs between the watershed and a down-
gradient point of reference is quantified using a sediment delivery ratio. A sediment delivery ratio can
be quantitatively defined as the ratio of sediment yield to gross erosion: where D is the sediment
delivery ratio, Y is the sediment yield, and A is the gross erosion (Barfield et al., 1981).
Few methods have been developed to specifically predict gross erosion or sediment yield from
undisturbed landscapes and watersheds. Methods for field measurement, as well as methods to
analytically predict or model sediment yield are commonly employed on both disturbed and on
undisturbed areas. For this reason, field and analytical methods that can be used to measure gross
erosion or sediment yield on disturbed and undisturbed areas are outlined together in this appendix.
This section summarizes methods to measure or predict gross erosion, methods to measure or predict
sediment yield, including modeling, and methods to measure sediment loads and deposition in streams.
4.1 GROSS EROSION
4.1.1.Field Measurements
Few field methods are usually employed to measure the amount of gross erosion which actually occurs
from a small plot or watershed. A method commonly used, however, is to use erosion pins.Using this
method, small pins or stakes are put into the ground to a depth that will prevent disturbance. The
elevation of the top of the pin is surveyed and referenced to a permanent elevation. The difference
between the top of the pin and the ground elevation below the pin is periodically surveyed to determine
minute changes in elevation. The difference in measured elevation between sampling events reflects the
amount of rill and interill erosion that has occurred at that point. Gross erosion that occurs from a
sample plot can be estimated using measurements from several pins. Repeated measurements of water
and sediment collected in permanently installed hill slope troughs can also be used to detect soil
movement and storage over time.
Tracers have also been used to detect and measure actual soil movement on small plots. Kachanoski et
al. (1992) describe the use of Cesium-137 (137Cs) to detect soil movement and soil loss in a complex
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landscape and to monitor the down-slope movement of soils that occur from tillage. 137Cs occurs in
soils from atmospheric deposition (fall out) that occurred from aboveground nuclear testing conducted
in the 1950s and 1960s. 137Cs tightly binds to soils, is essentially insoluble and does not leach, and is
not subject to significant uptake by plants. Monitoring gains or losses of 137Cs at permanent points can
be used to detect movement of soil.Other inert tracers can be used similarly.
The above field methods are commonly employed for research purposes where actual land treatment
applications or practices are compared. They are often employed to aid model validation or to help
calibrate modeled soil losses from a specific area. While these methods can be used to detect soil
movement and estimate gross erosion on small plots, they may not be applicable at mine sites because
they are not suitable for large areas, and they do not predict sediment yield or sedimentation of streams
or other water bodies.
4.1.2.The Universal Soil Loss Equation.
The most commonly used procedure to predict gross erosion is the Universal Soil Loss Equation (USLE),
in its original form. The USLE was proposed by Wischmeier and Smith (1965) based on a relationship
known as the Musgrave equation (Musgrave, 1947). The USLE predicts gross erosion produced by rill
and interrill erosion from a field sized area. Several authors have proposed modifications to the USLE to
account for deposition so the model can also be used to predict sediment yield. These modifications will
be discussed in Section 4.2 with methods to measure and predict sediment yield. The USLE predicts
gross erosion by the following:
A = R * K* LS* C* P
Where:
A is computed soil loss per unit of area (tons/acre);
R is a rainfall factor which incorporates rainfall energy and runoff;
K is soil credibility;
LS is a dimensionless length slope factor to account for variations in length and degree of slope;
C is a cover factor to account for the effects of vegetation in reducing erosion; and
P is a conservation practice factor.
A detailed discussion of how to calculate, incorporate, and use each of these factors is provided by
Barfield et al. (1981) and Goldman et al. (1986). The USLE can be used to predict gross erosion from
anarea for average annual, average monthly, average storm, and annual return period, or for asingle
storm return period, depending on how R is calculated. Use of the USLE, without modification, at mine
sites has several disadvantages. The calculation does not account for erosion from gullies, or stream
channels, or take into account deposition. It was primarily designed to predict soil-loss from small fields
and should not be used to predict sediment levels in rivers at the drainage basin level. For most
applications at mine sites, the unmodified USLE described above would not provide useful estimates
because most impact analyses require knowledge of deposition and actual sediment yield from
watersheds or disturbed areas, and calculations of sediment transport in gullies and channels.
Consequently, this method is not recommended, except for calculations of potential soil-loss from a
small disturbed area to aid in the application of best management practices (BMPs) and the design of
other area-specific controls.
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4.2 SEDIMENT YIELD
Most methods and mathematical models to measure or predict erosion are designed to predict
sediment yield from an area or watershed. Many of the methods and models use the USLE, described in
Section 4.1.2, however, they incorporate techniques to evaluate and route erosion from gullies and
channels and estimate deposition, either on the land surface or in streams. The following discussion
provides a brief review of commonly used methods to measure sediment yield and presents a review of
mathematical models which have been used to predict sediment yield on an areal or watershed basis.
4.2.1. Modified and Revised Universal Soil Loss Equation
There have been several proposed modifications to the USLE that allow for more accurate predictions of
parameters and erosion. For purposes of baseline characterization and prediction of sedimentation at
mine sites, two modifications are applicable. The Modified Universal Soil Loss Equation (MUSLE) and the
Revised Universal Soil Loss Equation (RUSLE).ln the standard USLE model, the rainfall energy and runoff
factor (R) and the length-slope factor (LS) do not account for deposition or assume that it does not occur
until the end of the length of the ground segment being analyzed. Williams (1975) proposed that the R
factor be replaced with several other terms to allow the equation to better account for deposition. This
modification (MUSLE) can then be used to estimate the sediment yield from an area or from atersheds.
The MUSLE equation is calculated by:
Y = 95(Q * qpi)0.56 * K * LS * P
Where:Y is the single storm sediment yield;Q is the runoff volume, qpi is the peak discharge, andK, LS,
and P are the same terms as for the USLE except that they represent weighted averagesfor these
parameters, calculated from different areas of the watershed. The LS factor is alsocalculated differently
than in the USLE, depending on the slope being analyzed (Williams, 1975).
The RUSLE described by McCool et al. (1987) provides a further revision of the LS factor and modifies
the model to be more applicable on steep slopes, greater than 10 percent. The application of the MUSLE
and the RUSLE to large, heterogeneous watersheds, such as those that occur at mine sites, requires that
sediment yield calculations be analyzed for each subwatershed (see Williams (1975) and Barfield et al.
(1981) for detailed discussions). The analysis requires that large, heterogeneous watersheds be divided
into several subwatersheds with relatively homogeneous hydrologic characteristics and soil types.
Consequently, particle size distribution (i.e., texture analysis) must be measured for the soils occurring in
each subwatershed. The analysis also requires the calculation of a weighted runoff energy term (Q* qpi)
that is computed as a weighted average of the subwatersheds. From particle size distribution data, the
median (D50) particle diameter is used to calculate the sediment yield that would exit each
subwatershed. The weighed runoff energy term is used to route sediments to the mouth ofthe large
watershed or at some point of analysis.
4.3 SUSPENDED LOAD AND SEDIMENTATION
The evaluation of water quality and impacts to aquatic resources is a primary concern at mine sites.
Without mitigation and control measures, mining can disturb large areas of ground, causing accelerated
erosion and sedimentation and potentially causing adverse impacts to aquatic resources. The
measurement of sediment load in streams is a primary tool to evaluate the effectiveness of erosion
control measures and potential impacts to water quality and aquatic life. Typically, it is a required
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component for monitoring compliance with NPDES permits. As discussed in Section 2.3, the amount of
sediment load being carried at any given time in a stream depends on the transport capacity, which is
primarily related to the stream flow velocity. As transport capacity increases, the amount and particle
sizes of suspended sediment increases. Transport capacity decreases with decreasing flow velocity,
causing deposition and sorting of materials. The transport and deposition of sediments within a stream,
therefore, dependent on storm frequency and the velocity of peak flows. In many cases, high flow
events are periodically required to entrain and transport sediments that were deposited during low flow
periods when low peak velocities caused sediment deposition. These are known as channel
maintenance flows. Geomorphologically, a stable channel is one that over time, transport sediments
with no net increase in deposition and without channel erosion.
The Equal Transient Rate (ETR) and Equal Width Increment (EWI) methods are commonly used field
methods to sample suspended sediments during stream flow (USGS, 1960). Using these methods,
several water samples are taken along cross-sectional transects (i.e., perpendicular to flow direction).
Samples along the cross section are taken by lowering a sample bottle through the stream at a rate
dependent on the flow velocity. The total mass of suspended sediment and its particle size distribution
are measured for each sample. Automatic sediment samplers are also available that collect stream
samples at scheduled times that are determined by the user. These data are used to develop a sediment
rating curve or a sedigraph that defines the relationship between stream flow discharge (Qw) and the
mass of suspended sediment at a given sampling station. After a sediment rating curve has been
developed, stream flow measurements can be used to estimate sediment discharge at a given station.
Sediment rating curves and sedigraphs can be extremely useful for monitoring the effectiveness of
control practices applied to minimize erosion and sediment yield from mine sites. The development of
sediment rating curves, however, requires sampling across a large range of flows and at different
seasons of the year. These relationships can be continuously recalibrated and refined as the size of the
sampled data base increases.
Net increases in sediment deposition in streams and other water bodies are measured using substrate
core samples at various times of the year. Core samples, taken using a variety of substrate and coring
equipment, are analyzed for net changes in particle size distribution over time. It is important for water
quality analyses at mines, that sampling programs to monitor sedimentation in stream beds incorporate
comparisons with stream flow events. Regular sampling throughout the year is required to determine if
net deposition of sediments is occurring in a stream over time. Sediments are naturally deposited during
seasonal low flow periods and are naturally entrained and transported during high flow periods. These
processes make impact analysis by sedimentation extremely difficult to monitor.
In addition to the above analyses, characterization of pre-mining stream morphology from drainages
potentially affected by a mining operation are often necessary to determine potential impacts caused by
changes in flow regime and from sedimentation. These analyses may include photo documentation of
streams and riparian vegetation, determining geomorphological classifications of streams using the
Rosgen (1994) method, and measurements to define channel cross sections, width to depth ratios,
longitudinal profiles, sinuosity, and pool/riffle ratios. These data would support studies conducted to
characterize site hydrology and aquatic resources.
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4.4 SOFTWARE AND WATERSHED MODELS FOR PREDICTION OF SEDIMENT YIELD
Characterization of mine sites requires the accurate calculation of sediment yield on a large watershed
basis. To characterize baseline conditions at mine sites and to predict potential adverse impacts from
sedimentation requires adequate spatial and areal characterization of gross erosion and sediment yield.
Several analytical software programs are available to predict sediment yield and sediment transport in
large watersheds. Some of these can be incorporated into GIS applications to provide spatial evaluation
of erosion potential and sediment yield for one or more watersheds.
The MUSLE and RUSLE, applications described in Section 4.2.1 could be used to characterize baseline
conditions of sediment yield and to evaluate potential changes in expected sediment yield that would
result from development of mine facilities. Most software, watershed models, and GIS applications that
are commonly used to predict erosion and sediment yield apply either the USLE, MUSLE, or RUSLE
algorithms. A brief description of analytical software used for watershed analysis and for the evaluation
of sediment yield is provided in Section 4.4.2. Particular emphasis is given to those methods that are
commonly used in mine settings.
The following questions, modified from Maclean (1997), can be used to determine the type and level of
modeling effort needed and software required to evaluate erosion and sedimentation at mine sites:
What are the basic assumptions and method(s) applied in the model?
Is the output suitable to make the evaluations and analyses required and is the accuracy
sufficient for characterization, impact analysis, and detection monitoring?
What are the temporal and spatial scales of the required analysis?
What are the input data requirements of the software or model?
What data are needed for model calibration and verification?
Are the required data available and are they at the correct scale?
What input data are the most important (i.e., have the most sensitivity)?
Can surrogates be used for missing data without compromising an accurate analysis?
If the model uses empirical (i.e., statistical) relationships, under what conditions were those
formed?
Answering these questions will help the mining hydrologist to select appropriate techniques and models
and to design adequate sampling programs to obtain the required input data. As previously discussed,
to adequately evaluate and monitor impacts at mine sites typically require temporal and spatial analysis
of a large watershed. This necessitates the design of a sampling programs that will provide adequate
data on a watershed basis. Monitoring programs to evaluate erosion and sedimentation should be
coordinated with baseline hydrological and water quality characterization studies. The reader is
referred to Appendix A, Hydrology and Appendix B, Receiving Waters for related discussions.
4.4.1. Development of a Conceptual Site Model.
A conceptual site model can be used to expedite an evaluation of the questions and parameters
discussed in Section 4.3. A conceptual site model is a depiction, descriptive, or pictorial, of
subwatersheds, soil-types, slopes, stream channels and any erosional features. Such a model should be
developed in conjunction with studies to characterize baseline soil and vegetation types and surface
water bodies. The purpose of building or developing a conceptual model of a site is to show important
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interrelationships that need to be evaluated, studied, or modeled. Programs to analyze impacts and
monitor site conditions can then be developed. The conceptual model should be complex enough to
adequately depict system behavior and meet study objectives, but sufficiently simple to allow timely
and meaningful development of field sampling programs and predictive models.
4.4.2. Analytical Software and Models.
AGNPS - Agricultural Non-Point Source Pollution Model
AGNPS is a distributed river basin model which combines elements of several other models to predict
erosion, runoff, and sediment and chemical transport. The model incorporates the USLE to predict gross
erosion from defined grids within a the river basin. Runoff and overland flow is calculated using Natural
Resource Conservation Service (NRCS [Soil Conservation Service]) procedures (see Appendix A,
Hydrology). Transport and deposition relationships are used to determine sediment yields and route
sediment through the modeled basin. The program is designed for large basins and requires very
detailed site characterization data for input. The level of accuracy necessary for the prediction of
sediment yield and transport at mine sites would require detailed field sampling to provide input data.
The model has the inherent problems associated with the USLE, described in Section 4.1.2, and
problems associated with the SCS hydrologic methods to predict runoff (See Appendix A, Hydrology).
The assumptions of the USLE and the SCS methods should be completely understood when
using this model for predictive purposes. A review of this model is provided by Jakubauskas
(1992).
ANSWRS - Areal Non-Point Source Watershed Response Simulation Model
ANSWRS is a distributed river basin model that is similar to the AGNPS model. The model uses the USLE
to predict the upland component for gross erosion and a set of steady state equations to simulate
sediment transport through the basin. A review of this model is provided by Jakubauskas (1992). Both
the ANSWRS and AGNPS models are designed to evaluate erosion and plan control strategies on areas
with intense cultivation.
WEPP - Water Erosion Prediction Project Hydrology Model
WEPP is designed to use soil physical properties and meteorological and vegetation data to simulate
surface runoff, soil evaporation, plant transpiration, unsaturated flow, and surface and subsurface
drainage. The model uses the Green and Ampt infiltration equation to estimate the rate and volume of
storm excess precipitation. Excess precipitation is routed down slope to estimate the overland flow
hydrograph using the kinematic wave method. In WEPP, surface runoff is used to calculate rill erosion
and runoff sediment transport capacity. The infiltration equation is linked with the evapotranspiration,
drainage, and percolation components to maintain a continuous daily water balance for a watershed.
GSTARS - Generalized Stream Tube Model for Alluvial River Simulation
GSTARS is a generalized semi-two dimensional water and sediment routing model. The model is capable
of computing alluvial scour/deposition through subcritical, supercritical, and a combination of both flow
conditions involving hydraulic jumps. The program can be used as a fixed-bed or a moveable bed model
to route water and sediment through alluvial channels. A one-dimensional model can be created with
the selection of a single stream tube. By selection of multiple stream tubes, changes in cross section
geometries in the lateral direction can be simulated.
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HEC-6 - Scour and Deposition Model
HEC-6 is designed to evaluate long-term river and reservoir sedimentation behavior. The program
simulates the transportation of sediment in a stream and can determine both the volume and location
of sediment deposits. It can analyze in-stream dredging operations, shallow reservoirs, and scour and
deposition effects in streams and rivers, in addition to the fall and rise of movable bed material during
several flow cycles. The program is primarily designed to analyze sediment transport and
geomorphologic effects in rivers and streams. It is not intended for use in analyzing gross erosion or
sediment yield from watersheds.
Sedimot-ll - Hydrology and Sedimentology Model 1
Sedimot-ll is designed to generate and route hydrographs and sediment loads through multiple
subareas, reaches and reservoirs. It can also be used to evaluate the effectiveness of sediment
detention ponds and grass filters. The program can predict peak sediment concentration from a flow
event, trap efficiency of a sediment retention basin, sediment load discharge, peak effluent sediment
concentration, and peak effluent settleable concentration.
SEDCAD+2
SEDCAD+ provides computer-aided design (CAD) capabilities for the design and evaluation of storm
water, erosion, and sediment control management practices. The software combines hydrological and
sediment yield modeling with CAD capabilities to design and evaluate the performance of sediment
detention basins, channels, grass filters, porous rock check dams, culverts and plunge pools. In addition,
the program provides determinations of land volumes, areas, and cut/fill volumes. The program uses
the MUSLE and RUSLE algorithms to calculate sediment yield from watersheds. The software has used
as a part of the Office of Surface Mining's Technical Information Processing System (TIPS). TIPS is a
series of
integrated programs to provide automated software to support a full range of engineering, hydrological,
and scientific applications required for permitting.
PONDPACK1
PONDPACK is designed to provide CAD capabilities for the design and evaluation of storm water
detention ponds. The program provides analysis of detention storage requirements, computes a
volume rating table for pond configuration, routes hydrographs for different return frequencies, and
provides routing data for inflow and outflow hydrographs for comparing alternative pond designs.
4.4.3. Application of Remote Sensing and Geographical Information Systems
Recent research has evaluated the use of Geographical Information Systems (GIS) and data obtained
from satellites in predictions of large-scale erosion potential. Example studies are provided by Maclean
(1997) and DeRoo et al. (1989); other references are provided at the end of this appendix. In general,
GIS systems can be used to provide spatial data for soil-types, vegetation cover types, aspect, slope,
slope-lengths, and other variables that are required inputs for large-scale watershed models. These
data may bes incorporated or estimated using remotely sensed data obtained from SPOT or LANDSAT
imagery. Modeled data can also be presented and analyzed using a GIS system as demonstrated by the
studies referenced above, which incorporated spatial data into large-scale, river basin models that
evaluated erosion potential and prediction using the USLE. In general, these studies showed that a GIS
system could be used to manage, provide and evaluate large amounts of spatial data in conjunction with
erosion modeling. These studies, however, indicated that model accuracy and validation were deficient
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because specific site data were not available or had to be assumed. DeRoo et al. (1989) suggested that
model accuracy is extremely sensitive to the "lack of detailed" input data such as infiltration capacities,
antecedent soil moisture, and rainfall intensity information for specific sites. Maclean (1997) indicated
that confidence in the results generated using GIS was low. These studies indicate that large, spatially
integrated systems could be used at mine sites for baseline characterization and analysis of impacts.
However, mining hydrologists and other scientists must be aware that specific information regarding
soil-types, soil particle size analysis, vegetation types, slopes, slope-lengths, and sub-basin hydrology are
required to produce accurate erosion and sedimentation analyses. Caution should be used when
integrating spatial data bases with predictive modeling in cases where site-specific data are inadequate.
5 REPRESENTATIVENESS OF DATA
The representativeness of data and statistical concepts related to sampling and the development of data
quality objectives are discussed in detail in Appendix A, Hydrology. In general, the principles associated
with sample adequacy, statistical techniques and the development of Quality Assurance programs for
erosion and sedimentation are similar to those associated with hydrological measurements. A detailed
discussion of these concepts is not repeated herein; the reader is referred to Appendix A for a discussion
of statistical techniques and important parameters to consider in developing adequate sampling
designs. Several concepts related to the measurement of erosion and sedimentation should be
considered when developing Data Quality Objectives and sampling programs. The following points
provide specific concepts which should be applied or noted in developing programs for
monitoringerosion and sedimentation at mine sites:
The processes of gross erosion, sediment yield, and sediment deposition in streams depends on
the frequency and probability of hydrologic events, both seasonally and on an event basis. The
amounts of sediment erosion, transport, and deposition vary seasonally and in response to
individual precipitation-runoff events of different frequencies. For this reason characterization
and monitoring programs at mine sites must be designed to evaluate erosion and sediment
yields with respect to the frequency of storm events, as well as account for both seasonal and
annual climatic variations. Similarly, characterization and monitoring programs to evaluate
suspended loads in streams must take into account stream discharge measurements. Impact
analysis can only be conducted if adequate relationships are developed between precipitation
and runoff, stream flow, and sediment load.
The effectiveness and accuracy with which mathematical models and empirical equations
predict gross erosion, sediment yield, and sediment deposition depends on the quality of site-
specific data collected to characterize soils, vegetation types, slopes, slope-lengths, and other
watershed or subwatershed parameters. Of specific importance is that the samples collected to
determine the particle size distributions (i.e., texture) of each soil type provide a statistically
adequate population. Adequate sampling to characterize vegetative cover and other surface
roughness factors controlling soil detachment and water flow velocities is also essential.
The use of spatial data and GIS analyses should be encouraged to evaluate and predict potential
impacts on a watershed basis. These analyses can be used to develop maps and provide spatial
analyses of areas susceptible to erosion. As discussed in Section 4.4.3, however, the accurate
prediction of erosion and sedimentation on a large-scale depends on having adequately
characterized site specific data.
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APPENDIX D. EROSION AND SEDIMENTATION
6 METHODS TO MITIGATE EROSION AND SEDIMENTATION
Best Management Practices (BMPs) are schedules of activities, prohibitions of practices, maintenance
procedures, and other management practices that effectively and economically control problems
without disturbing the quality of the environment. Erosion and sedimentation may be effectively
controlled by employing a system of BMPs that target each stage of the erosion process.
Fundamentally, the approach involves minimizing the potential sources of sediment from the outset. In
order to accomplish this, BMPs are designed to minimize the extent and duration of land disturbance
and to protect soil surfaces once they are exposed. BMPs are also designed to control the amount and
velocity of runoff and its ability to carry sediment by diverting incoming flows and impeding internally
generated flows. BMPs also include the use of sediment-capturing devices to retain sediment on the
project site. The types of BMPs discussed in this appendix include surface stabilization procedures,
runoff control procedures and conveyance measures, outlet protection procedures, sediment traps and
barriers, and stream protection procedures. Table H-l provides an outline, by categorical type, that are
used at minesites. Sections 6.1.1 through 6.1.5 provide brief descriptions of these BMPs. Many of the
BMPs are complementary and are used together as part of an erosion control program. An important
BMP used at mine sites to capture, manage and control sedimentation is the use of Sediment Detention
Basins. Section 6.1.6 describes detention basins and discusses important design parameters for these
basins at mine sites.
Table H-l. Mining BMPs for Control of Erosion and Sedimentation
Category
Surface Stabilization
Runoff Control and Conveyance
Measures
Outlet Protection
Stream Protection
Best Management Practice
Dust control
Mulching
Riprap
Sodding
Surface roughening
Temporary gravel construction access
Temporary and permanent seeding
Topsoiling
Grass-lined channel
Hardened channel
Paved flume (chute)
Runoff diversion
Temporary slope drain
Level spreader
Outlet stabilization structure
Sediment Traps and Barriers Brush barrier
Check dam
Grade stabilization structure
Sediment basin/rock dam
Sediment trap
Temporary block and gravel drop inlet protection
Temporary fabric drop inlet protection
Temporary sod drop inlet protection
Vegetated filter strip
Check dam
Grade stabilization structure
Streambank stabilization
Temporary stream crossing
Source: NCSU Water Quality Group (1998)
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6.1 BEST MANAGEMENT PRACTICES (BMPS) CATEGORIES
The following discussion of Best Management Practices is adapted from NCSU Water Quality Group
(1998).
6.1.1. Surface Stabilization Measures
Dust Controls the manipulation of construction areas through specific measures to prevent soil loss as
dust. Effective control measures include watering, mulching, spriging, or applying geotextile materials.
These measures are designed to minimize the contamination of runoff water from air born dust. These
practices are especially effective in regions with a dry climate or in drier seasons.
Mulching\s the protection of vegetative surfaces with a blanket of plant residue or synthetic material
applied to the soil surface to minimize raindrop impact energy, increase surface roughness and reduce
the velocity of runoff. These practices are designed to foster vegetative establishment, reduce
evaporation, insulate the soil, and suppress weed growth. As well as providing immediate protection
from environmental hazards, mulch is used as a matrix for spreading plant seeds.
Riprap\s a retention wall of graded stone underlain with a filter blanket of gravel, sand and gravel, or
synthetic material designed to protect and stabilize areas which are prone to erosion, seepage, or poor
soil structure. Riprap is used in areas where vegetation cannot be established to sufficiently reduce or
prevent erosion. This includes channel slopes and bottoms, storm water structure inlets and outlets,
slope drains, streambanks and shorelines.
Sodding\s the continuous covering of exposed areas with rolls of grass to provide permanent
stabilization. This procedure is especially useful in areas with a steep grade, where seeding is not
conducive. As with mulching, sodding fosters vegetation growth, minimizes raindrop impact energy,
increases surface roughness and reduces the velocity of runoff.
Temporary Gravel Construction Access\s a graveled area or pad on which vehicles can drop their mud
and sediment. By providing such an area, erosion from surface runoff, transport onto public roads, and
dust accumulation may be avoided. This BMP is designed to capture potentially exposed sediment
sources so they may be further managed and controlled.
Temporary and Permanent Seeding\r\vo\ves planting areas with rapid-growing annual grasses, small
grains, or legumes to provide stability to disturbed areas. Areas are temporarily seeded if the soils are
not to be brought to final grade for more than approximately one month. Permanent seeding is
established on areas which will be covered with vegetative growth for more than two years. This BMP
establishes a relatively quick growing vegetative cover.
Topsoiling\s the application of loose, rich, biologically active soil to areas with mildly graded slopes.
Often, facilities will stockpile topsoil for future site use. To ensure that runoff contamination does not
occur, sediment barriers and temporary seeding should be used.
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6.1.2. Runoff Control and Conveyance Measures.
A Grass-Lined Channels a dry conduit vegetated with grass. Grass channels are used to conduct storm
water runoff. In order for this system to function properly, the grass must be established and rooted
before flows are introduced. Lining of the channels is required if design flows are to exceed 2 cubic feet
per second (cfs). A grass channel increases shear stress within the channel, reduces flow velocities and
promotes the deposition of sediments in storm water. The channel itself is also protected from erosion
of the bed and sides.
Hardened Channelsare conduits or ditches lined with structural materials such as riprap or paving.
These channels are designed for the conveyance, transfer, and safe disposal of excess storm water.
These channels are often used in places with steeply graded slopes, prolonged flow, potential for traffic
damage, erodible soils, or design velocity exceeding 5 cfs.
Paved Flumesare concrete-lined conduits that are set into the ground. Flumes are used to convey water
down a relatively steep slope without causing erosion. This system should have an additional energy
dissipation feature to reduce erosion or scouring at the outlet. Flumes also should be designed with an
inlet bypass that routes extreme flows away from the flume.
Runoff Diversionsare temporary or permanent structures which channel, divert or capture runoff and
transport it to areas where it can be used or released without erosion or flood damage. The types of
structures used for this purpose include graded surfaces to redirect sheet flow, dikes or berms that force
surface runoff around a protected area, and storm water conveyances which intercept, collect, and
redirect runoff. Temporary diversion may be constructed by placing dikes of spoil materials or gravel on
the down-gradient end of an excavated channel or swale. Permanent diversions, which are built to
divide specific drainage areas when a larger runoff flows are expected, are sized to capture and carry a
specific magnitude of design storm.
Temporary Slope Drainsare temporary structures constructed of flexible tubing or conduit which convey
runoff from the top to the bottom of a cut or fill slope. In conjunction with diversions, these drains are
used to convey concentrated runoff away from a cut or fill slope until more permanent measures, such
as stabilization with vegetation, can be established.
6.1.3. Outlet Protection.
Level Spreadersare a type of outlet designed to convert concentrated runoff to sheet flow and disperse
it uniformly across a slope. The landscape of the receiving area must be uniformly sloped, the outlet lip
leveled, and the land unsusceptible to erosion. To avoid the formation of a gully, hardened structures,
stiff grass hedges, or erosion-resistant matting should be incorporated into the design. This type of
outlet is often used for runoff diversions.
Outlet Stabilization Structuresare outlets that reduce outlet flow velocity and dissipate flow energy.
These types of structures are used at the outlet of a channel or conduit where the discharge velocity
exceeds that of the receiving area. The most common designs are riprap-lined aprons, riprap stilling
basins, or plunge pools.
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6.1.4. Sediment Traps and Barriers
Brush Barriersare temporary sediment barriers that are constructed to form a berm across or at the toe
of a slope susceptible to interill and rill erosion. They may consist of limbs, weeds, vines, root mats,
rock, or other cleared materials.
Check Damsare temporary, emergency, or permanent structures constructed across drainageways other
than live streams where they are used to restrict flow velocity and reduce channel erosion. In their
permanent application, these dams gradually accumulate sediment until they are completely filled. At
that point, a level surface or delta is formed into a non-eroding gradient over which the water cascades
to a dam through a spillway into a hardened apron. Other alternatives for protecting channel bottoms
should be evaluated before selecting the check dam on a temporary basis. Dams may either be porous
or nonporous. Porous dams will decrease the head of flow over spillways by releasing part of the flow
through the actual structure.
Grade Stabilization Structuresare designed to reduce channel grade in natural or constructed channels
to prevent erosion of a channel caused by increased slope or high flow velocities. This type of structure
includes vertical-drop structures, concrete or riprap chutes, gabions, or pipe-drop structures. In areas
where there are large water flows, concrete chutes or vertical-drop weirs constructed of reinforced
concrete or sheet piling with concrete aprons are recommended. For areas with small flows,
prefabricated metal-drop spillways or pipe overfall structures should be used.
Sediment Detention Basins can be either permanent pool or self dewatering (i.e., complete flow
through) types. They are primarily designed to allow ponding of runoff or flows so eroded soils and
sediments can settle out and be captured before they can enter streams or other water bodies. The
design and use of these basins is perhaps the most important BMP applied to control erosion at mine
sites. Section 6.2 provides a detailed discussion of important design and management considerations
for Sediment Detention Basins.
Sediment Fence (Silt Fenced/Straw/ Bale Barriers are temporary measures used to control sediment loss
by reducing the velocity of sheet flows. They consist of filter fabric buried at the bottom, stretched, and
supported by posts, or straw bales staked into the ground. Overflow outlets and sufficient storage area
need to be provided to control temporary ponding. Sediment Traps are small, temporary ponding
basins formed by an embankment or excavation. These are less permanent structures than sediment
detention basins. Outlets of diversion channels, slope drains, or other runoff conveyances that
discharge sediment-laden water often use this system.Sediment traps should be designed to minimize
the potential forshort circuiting, include features such as embankment protection and non-erosive
emergencybypass areas, and provide for periodic maintenance.
Temporary Block and Gravel Inlet Protections are control barriers made of concrete block and gravel
around a storm drain inlet. These structures filter sediment from storm water entering the inlet before
soils have stabilized, while allowing the use of the inlet for storm water conveyance.
Temporary Excavated Drop Inlet Protections are temporary excavated areas around a storm drain inlet
or curb designed to trap sediment. By trapping sediment before its entry into the inlet, the permanent
inlet may be used before soils in the area are stabilized. This system requires frequent maintenance and
can be used in combination with other temporary measures.
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Temporary Fabric Drop Inlet Protections are fabric drapes placed around a drop inlet, on a temporary
basis, during construction activities to protect storm drains. This practice can be used in combination
with other temporary inlet protection devices.
Temporary Sod Drop Inlet Protection is a grass sod sediment filter area around a storm drain drop inlet.
This is used when soils in the area are stabilized, and is suitable for the lawns of large buildings.
Vegetated Filter Strips (VFS) are natural or planted low-gradient vegetated areas consisting of relatively
flat slopes which filter solids from overland sheet flow. Dense-culmed, herbaceous, erosion-resistant
plant species are appropriate for vegetating these strips. The effectiveness VFSs is increased, if
channelized flows are absent; however, the main factors influencing removal efficiency are vegetation
type and condition, soil infiltration rate, and flow depth and travel time. Level spreaders are often used
to promote even distribution of runoff across the VFS.
6.1.5. Stream Protection
Check dams, grade stabilization structures, and streambank stabilization techniques are also BMPs used
for stream protection. An additional stream protection BMP is a Temporary Stream Cross/ng.These
crossings may be in the form of a bridge, ford, or temporary structure installed across a stream or
watercourse for short-term use by construction vehicles or heavy equipment. Wherever possible,
bridges should be constructed in lieu of other types of stream crossings, because they cause the least
damage to streambeds, banks, and surrounding floodplains, provide the least obstruction to flow, and
have the lowest potential to increase erosion.
Culvert crossings are the most common and are the most destructive form of crossings. Culverts
generally cause significant impacts to a stream bed and increase the potential for channel scour. Low-
span bottomless arched conduits offer the simplicity of a culvert crossing and minimize impacts to the
stream bed. These crossings can be placed over the top of stream channels without disturbing the
streambed at the crossing. Fords are cuts in the banks with filter cloth held in place by stones. They are
used in steep areas prone to flash flooding, but should be used only where crossings are infrequent and
banks are low. Another technique which can be applied is to size a main culvert to handle normal
bankfull flows. Additional culverts are then placed along side of the main culvert at a higher elevational
base. The additional culverts route flood flows that exceed the capacity of the main culvert and would
normally move out across a floodplain. The advantage to this design is that overly sized culverts can
often cause channelization, increases in flow velocity and scouring of the channel down stream. A
multiculvert design reduces these effects by sizing the main culvert to handle normal stream flows. All
stream crossings should be located on a permanent basis to prevent overtopping and minimize erosion
potential.
6.1.6. Sediment Detention Basins
Sediment detention basins are commonly used to prevent or control sediment deposition in streams
and water bodies (Barfield et al., 1981). Detention basins are designed to capture runoff or conveyed
storm water and reduce water velocity to allow sediments to settle out. Storm flows eventually pass
through an outflow structure leaving the sediment (i.e., settleable solids) in the basin.
Detention basins must be designed to account for several storage volumes including:
1) a sediment storage volume (Vs);
2) a storage volume for detention storage (Vd);
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3) and a final flood storage volume (Vf).
The design storage for Vs depends on the loading and volume of sediment that would be expected for a
specific design period. The design period can be the life of the mine, or a shorter period in which
accumulated sediments are periodically dredged or removed from the detention basin. Estimates for Vs
are made using the methods or models to predict expected sediment yields entering the basin (see
Section 4.2). In general, the USLE or the MUSLE are used to calculate sediment loading to a detention
basin, either on an annual or a design storm basis. Vd is the storage volume that is required to detain
and hold the volume of runoff from a specified design storm long enough to allow the sediment to settle
out. A variety of methods are used to calculate storm runoff volume (Vf) (see Appendix A, Hydrology).
Vf is the final flood storage volume or free board which is added as contingency to prevent overtopping
and dam failure during extreme events that exceed the design capacity.
Sediment detention basins are designed to maximize trap efficiency in order to minimize the release of
suspended loads downstream at mine sites. Trap efficiency is defined as the ratio between the mass of
sediment flowing into a basin and the mass of sediment flowing out of a basin. Barfield et al. (1981)
outline several parameters that affect the performance and trap efficiency of a basin:
Particle size distribution of sediments
Detention storage time
Reservoir shape, amount of dead storage, and turbulence
Water chemistry
The use of flocculants
Because sediment detention basins are usually flow-through structures, trap efficienciesare optimized
by setting design criteria or goals that maximize the capture of all settleable solidsfor a given design
storm (i.e., storm frequency). At mine sites, it is common practice to designsediment detention basins
based on the 10-year, 24-hour precipitation event. This designstandard is based on the criteria for
exemption for discharge of excess storm water at mine sites.
The particle size distribution sediments flowing into a detention basin is the single most important factor
affecting trap efficiency (Barfield et al., 1981), because particle size is directly related to settling velocity.
Assuming steady-state flow through a reservoir, a decrease in particle or aggregate size requires an
increased flow length to allow a particle to settle out. For this reason, accurate characterization of
particle size distributions of potentially incoming sediments is critical to pond design and management.
The detention storage time is the volume-weighted average time that a volume of flow will be detained
in a reservoir. The detention time of a settling basin is a function of basin shape, basin length and the
design of the outlet structure. The design of the outflow structure determines the characteristics of the
outflow hydrograph and its relationships to the inflow hydrograph.
Basin shape strongly influences how effectively the storage volume of the basin is used for
sedimentation. The basin shape determines flow path length, flow velocity, areas of turbulence within
the basin, and if dead storage areas occur. Small localized zones of turbulence within the basin can
inhibit particle settling because of locally increased flow velocities. Dead storage areas are zones within
the basin that are bypassed and, therefore, ineffective in the settling process. EPA (1976) suggests that
dead storage volume can be minimized by maintaining a 2:1 ratio between reservoir length (i.e., the
length of the flow path) and reservoir width.
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Water chemistry also affects particle settling and trap efficiency. In general, the ionic strength of the
water is a primary factor affecting particle flocculation or dispersion. Flocculation of particles to larger,
heavier aggregates generally increases with increased ionic strength. The types of cations present,
however, also affect this process. Because they are divalent, calcium and magnesium cations tend to be
very effective in increasing flocculation. Effects of ionic strength on flocculation and dispersion can be
specifically related, therefore, to the relative concentrations of these cations in solution. The
Exchangeable Sodium Percentage (ESP) and the Sodium Absorption Ration (SAR) are useful parameters
that should be examined when evaluating the effects of water chemistry (Barfield et al., 1981).
Flocculant, which are compounds that enhance the aggregation of particles, often are used to aid the
performance of a detention basin and, in some cases, to ensure that water quality standards are met at
the basin outlet. Flocculants create larger particles that have greater settling velocities. They can be
particularly useful when a large proportion of entrained sediment are clay, fine silt, or colloidal
materials. Colloidal particles remain in suspension and will not settle out even under quiescent
conditions. Barfield et al. (1981) provides a detailed discussion on water chemistry, flocculation and the
design of programs in enhance settling using flocculants in sediment detention basins.
CAD and modeling software usually is employed to design sediment detention basins. In particular,
SEDCAD+, PONDPACK, and SEDIMOT II, described in Section 4.3.2, are specifically used to apply both
hydrologic and erosion measurements to the design of sediment detention basins. Using these types of
software, a hydrologist can iteratively design detention basins to optimize basin size and shape,
detention storage time, and the type of outflow structure required to meet design criteria. These
models provide analyses of both inflow and outflow hydrographs and inflow and outflow sedigraphs.
Analyses are performed to provide estimates of trap efficiency, mass of settleable solids captured, and
mass of suspended solids not retained by the basin. Basins designed using software packages depend
on accurate input data for hydrologic and soil variables. In particular, accurate information regarding
soil types and particle size distributions (texture) are necessary for accurate design.
6.5 INNOVATIVE CONTROL PRACTICES
Most erosion and sediment control BMPs have been standard practice for many years. As discussed in
Section 6.1, standard BMPs include surface stabilization measures, diversions and channels, and
sediment traps and barriers. Some innovative BMPs, however, include variations of these practices that
offer particularly effective controls. These practices include:
The design and construction of artificial wetlands to provide natural filtration and enable
sediment deposition. Artificial or constructed wetlands can effectively remove suspended
solids, particulates and metals attached to sediments through the physical processes of velocity
reduction, filtration by vegetation, and chemical precipitation as water flows through the
wetlands.
The use of geotextiles for soil stabilization and erosion control blankets and mattings.
Geotextiles can be made of natural or synthetic materials and are used to temporarily or
permanently stabilize soil. Synthetic geotextiles are fabricated from nonbiodegradable
materials and are generally classified as either Turf Reinforcement Mats (TRMs) or Erosion
Control and Revegetation Mats (ECRMs). TRMs are three dimensional polymer nettings or
monofilaments formed into a mat to protect seeds and increase germination. ECRMs are
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composed of continuous monofilaments bound by heat fusion or stitched between nettings.
They serve as a permanent mulch.
Biotechnical stabilization techniques that use layers of live brush to help stabilize slopes.
Biotechnical stabilization can control or prevent surface erosion and mass slope failures. This
technique involves the use of cut branches and stems of species such as willow, alder and
poplar. The live brush is embedded into the ground in a criss-cross pattern so that roots and
shoots will eventually develop. Biotechnical stabilization is most effective when shrubs are cut
and utilized during dormant periods.
7 SUMMARY
Mining activities have the potential to expose large areas of soil and rock to the processes of erosion.
Mine pits, roads, tailings dams, waste rock and ore piles, and other facilities are potential sources of
sediment that can be transported and deposited in streams and other water bodies. If properly planned
and managed, however, adverse impacts to water quality and aquatic resources can be minimized or
prevented. To prevent potential impacts, water and sediment management needs to be considered
from the beginning of any mining plan.
The development of an effective erosion control plan must start with accurate baseline characterization
of erosion and sediment potentials on a watershed basis. Accurate knowledge of existing conditions is
necessary to design and implement effective erosion control programs and to allow accurate monitoring
for impacts. Baseline characterization depends on sampling programs that adequately determine
existing soil types and their particle size distributions, existing vegetation types and cover values, slopes
and slope lengths, as well as the relationships between existing drainages and stream channels.
Programs to characterize baseline water quality must take into account variations in stream flow. This
includes variations that occur on a storm basis, as well as on a seasonal or annual basis. Developing
monitoring programs that accurately detect or evaluate impacts and control effectiveness depends on
having accurate knowledge of natural erosion and degradation rates and patterns.
The choice of methods to predict gross erosion and sediment yield from natural or disturbed areas may
be dependent on the type of input data required. It is very important that the mining hydrologist
understands all assumptions inherent in a model or method when conducting analyses to predict
sediment yields or design erosion controls. Accurate analyses by available software programs and
models requires accurate site-specific sampling for input data. Vegetation parameters, soil types, and
soil particle size distributions are, perhaps, the most important parameters that are input to predictive
models and CAD programs.
8 REFERENCES
8.1 CITED REFERENCES
Barfield, B.J., Warner, R.C., and Haan, C.T., 1981. Applied Hydrology and SedimentologyforDisturbed
Lands, Oklahoma Technical Press, Stillwater, OK, 603 pp.
DeRoo, A.P.J., Hazelhoff, L, and Burrough, P.A., 1989. Soil Erosion Modeling Using Answers and
Geographical Information Systems, Earth Surface Processes and Land/arms, vol. 14, pp. 517-532.
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Foster, G., 1985. Processes of Soil Erosion by Water. In: Follett, R. and Stewart, B., eds., So/7 Erosion and
Crop Productivity, American Society of Agronomy, Inc., pp. 137-162.
Goldman, S.J., Jackson, K. and Bursztynsky, T.A., 1986. Erosion & Sediment Control Handbook, McGraw-
Hill Book Company, New York, W87-08686.
Jakubauskas, M.E., J.L. Whistler and M.E. Dillworth, 1992. Classifying Remotely Sensed Data for Use in
an Agricultural Nonpoint-Source Pollution Model, Journal of Soil and Water Conservation, vol. 47, no. 2,
pp. 179-183.
Kachanoski, R.G., Miller, M.H., Protz, R.D., D.A. Lobb, and Gregorich, E.G.,1992. SWEEP Report #38:
Management of Farm Field Variability. I: Quantification of Soil Loss in Complex Topography. II: Soil
Erosion Processes on Shoulder Slope Landscape Positions,
http://res.agr.ca/lond/pmrc/sweep/rep38.htmltfEvaluationSummary.
Maclean, R., 1997. Modeling Soil Erosion and Sediment Loading in St. Lucia, Thesis, department of
Geography, Kingston University. Kingston Upon Thames, surrey, United Kingdom. DISS.BGIS/97/M/24.
McCool, O.K., L.c. brown, G.R. Foster, c.K. Mutchler, and LD. Meyer, 1987. Revised Slope Steepness
factor for the Universal Soil Loss Equation. ASAE Transaction 30(5).
Musgrave, G.W., 1947. Quantitative Evaluation of Factors in Water Erosion, A First Approximation,
Journal of Soil and Water Conservation, vol. 2, no. 3, pp. 133-138.
NCSU Water Quality Group, 1998. Watersheds: Mining and Acid Mine Drainage, North Carolina State
University, Department of Biological and Agricultural Engineering, Raleigh North Carolina.
Rosgen, D.L, 1994. A Classification of Natural Rivers., Catena, vol. 22, pp. 169-199.
U.S. Environmental Protection Agency, 1976. Effectiveness of Surface Mine Sedimentation Ponds, U.S.
Environmental Protection Agency Report EPA-600/2-87-117, Washington, D.C.
U.S. Geological Survey, 1960. Manual of Hydrology. USGS Water Supply Pater W1541. U.S.Geological
Survey, Reston, VA.
Williams, J.R., 1975. Sediment Yield Prediction with Universal Equation Using Runoff Energy
Factor, U.S. Department of Agriculture Report USDA-ADS S-40, Washington, D.C. Wischmeier, W.H. and
Smith, D.D., 1965. Rainfall Erosion Losses from Cropland East of the Rocky Mountains, U.S. Department
of Agriculture, Agriculture Handbook No. 282, Washington, D.C.
8.2 ADDITIONAL REFERENCES
Barfield, B.J., Moore, I.D., and Williams, R.G., 1979. Sediment Yield in Surface Mined Watersheds,
Proceedings: Symposium on Surface Mine Hydrology, Sedimentology and Reclamation, University of
Kentucky, Lexington, Kentucky, December 1979, pp. 83-92.
Barfield, B.J. and Moore, I.D., 1980. Modeling Erosion on Long Steep Slopes, Office of Water Resources
Technology, Project No. R4052.
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Brune, G.M., 1953. Trap Efficiency of Reservoirs, Transactions American Geophysical Union, vol. 34, no.
3, pp. 407-418.
Chen, C, 1975. Design of Sediment Retention Basins, Proceedings: National Symposium on Urban
Hydrology and Sediment Control, UK BU 109, College of Engineering, University of Kentucky, Lexington,
Kentucky.
Curtis, D.C. and McCuen, R.H., 1977. Design Efficiency of Storm Water Detention Basins, Proceedings:
American Society of Civil Engineers, vol. 103 (WR1), pp. 125-141.
Curtis, W.R., 1971. Strip Mining, Erosion, and Sedimentation, Transactions: American Society of
Agricultural Engineers, vol. 14, no. 3, pp. 434-436.
Fogel, M.M., Hekman, L.H., and Ducstein, L, 1977. A Stochastic Sediment Yield Model using the
Modified Universal Soil Loss Equation. In: Soil Erosion: Prediction and Control, Soil Conservation Society
of America, Ankeny, Iowa.
Graf, W.H., 1971. Hydraulics of Sediment Transport, McGraw-Hill, New York. Hill, R.D., 1976.
Sedimentation Ponds - A Critical Review, Proceedings: Sixth Symposium on Coal Mine Drainage
Research, Louisville, Kentucky.
Kao, T.Y., 1975. Hydraulic Design of Storm Water Detention Basins, Proceedings: National Symposium
on Urban Hydrology and Sediment Control, UK BU 109, College of Engineering, University of Kentucky,
Lexington, Kentucky.
Lantieri, D., Dallemand, J.F., Biscaia, R., Sohn, S., and Potter, R.O., 1996. Erosion Mapping Using High-
Resolution Satellite Data and Geographic Information System, Pilot Study in Brazil, RSCSeries No. 56,
FAO, Rome 1990, 150 pp.
McCool, O.K., Papendick, R.I., and Brooks, F.L., 1976. The Universal Soil Loss Equation as Adapted to the
Pacific Northwest, Proceedings: 3rd Federal Inter-Agency Sedimentation Conference, Water Resources
Council, Washington, D.C.
Miller, C.R., 1953. Determination of the Unit Weight of Sediment for Use in Sediment Volume
Computation, U.S. Bureau of Reclamation, Denver, Colorado.
Morgan, R., 1986. So/7 Erosion and Conservation, Longman Scientific and Technical. Neibling, W.H. and
Foster, G.R., 1977. Estimating Deposition and Sediment Yield from Overland Flow Processes,
Proceedings: 1977 International Symposium on Urban Hydrology, Hydraulics and Sediment Control, UK
BU 114, College of Engineering, University of Kentucky, Lexington, Kentucky.
Risse, L.M., Nearing, M.A., Nics, A.D., and Laflen, J.M., 1993. Error Assessment in the Universal Soil Loss
Equation, Soil Science Society of America Journal, vol. 57, pp. 825- 833.
U.S. Environmental Protection Agency, 1976. Erosion and Sediment Control-Surface Mining in the
Eastern U.S., Vol. I and II, U.S. Environmental Protection Agency Report EPA- 615/2-76-006, Washington,
D.C.
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Ward, A.D., Barfield, B.J. and Tapp, J.S., 1979a. Sizing Reservoirs for Sediment Control from Surface
Mined Lands, Proceedings: 1979 Symposium on Surface Mine Hydrology, Sedimentology and
Reclamation, College of Engineering, University of Kentucky, Lexington, Kentucky.
Ward, A.D., Haan, C.T., and Barfield, B.J., 1979b. Prediction of Sediment Basin Performance,
Transactions American Society of Agricultural Engineers, vol. 22, no. 1, pp.121-136.
Ward, A.D., Haan, C.T., and Barfield, B.J., 1980. The Design of Sediment Basins, Transactions American
Society of Agricultural Engineers, vol. 23, no. 2, pp. 351-356.
Williams, J.R., 1976. Sediment Yield Prediction with Universal Equation Using Runoff Energy Factor. In:
Present and Prospective Technology for Predicting Sediment Yields and Sources, U.S. Department of
Agriculture, Agricultural Research Service Publication ARS-S-40, Washington, D.C.
Williams, J.R., 1977. Sediment Delivery Ratios Determined with Sediment and Runoff Models, Erosion
and Solid Matter Transport in Inland Water Symposium Proceedings lAHS-No. 122, pp.168-179.
Williams, J.R., 1979. A Sediment Graph Model Based on an Instantaneous Sediment Graph, Water
Resources Research, vol. 14, no. 4, pp. 659-664.
Williams, J.R. and Brendt, A.D., 1972. Sediment Yield Computed with Universal Equation, Proceedings:
American Society of Civil Engineers, 98(HY12), pp. 2087-2098.
Wilson, B.N., Barfield, B.J., Warner, R.C., and Moore, I.D., 1981. SEDIMOT II: A Design Hydrology and
Sedimentology Model for Surface Mine Lands, Proceedings: 1981
Symposium on Surface Mine Hydrology, Sedimentology, and Reclamation, College of
Engineering, University of Kentucky, Lexington, Kentucky.
Wischmeier, W.H., 1959. A Rainfall Erosion Index for a Universal Soil Loss Equation, Soil Science Society
of American Proceedings, vol. 23, pp. 246-249.
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APPENDIX D. EROSION AND SEDIMENTATION
ATTACHMENT D-2
RULES OF THUMB FOR EROSION AND SEDIMENT CONTROL
(Excerpted from Kentucky Erosion Prevention and Sediment Control Field Guide)
TETRA TECH funded by
Kentucky Division of Water (KDOW), Nonpoint Source Section
and the Kentucky Division of Conservation (KDOC) through a grant from USEPA
http://www.epa.gov/region8/water/stormwater/pdf/Kentuckv%20Erosion%20prevention%20field%20g
uide.pdf
The following attachment presents illustrations and photographs of Best Management Practices for
Erosion and Sediment Control. This information was excerpted from the US EPA funded Kentucky
Erosion Prevention and Sediment Control Field Guide. This Guide is presented in entirety on the CD-
ROM accompanying this guideline. This attachment intends to give a practical approach towards the
management of runoff and control of erosion and sediment from a mining site.
BASIC RULES
Preserve existing Vegetation
Divert upland runoff around
exposed soil
Seed/mulch/ cover bare soil
immediately
Use sediment barriers to trap
soil in runoff
Protect slopes and channels
from gullying
Install sediment traps and settling basins
Preserve vegetation
Near all waterways
NEED FOR EROSION AND SEDIMENT
CONTROL MEASURES
Slope Angle
Very Steep (2:1 or more)
Steep (2:1-4:1)
Moderate (5:1-10:1)
Slight (10:1-20:1
Soil Type
Silty
Very high
Very High
High
Moderate
Clays
High
High
Moderate
Moderate
Sandy
High
Moderate
Moderate
Low
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APPENDIX D. EROSION AND SEDIMENTATION
PRIORIZATION OF EROSION AND SEDIMENT CONTROL MEASURES
PRACTICE
Limiting disturbed area through phasing
Protecting disturbed areas with mulch and revegetation
Installing diversions around disturbed areas
Sediment removal through detention of all site
drainage
Other structural controls to contain sediment laden
drainage
COST
$
$$
$$$
$$$$
$$$$$
EFFECTIVENESS
*****
****
***
**
*
PLAN AHEAD
Identify drainage areas and plan for drainage
ditches and channels, diversions, grassed channels,
sediment traps/basins, down slope sediment
barriers, and rock construction and install before
beginning excavation.
DIVERT RUNOFF AROUND EXCAVATION AND
DISTURBANCE
Berms and ditches diverting clean upland runoff
around constructionsites reduce erosion and
sedimentation problems. Seed berms andditches
after construction.
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APPENDIX D. EROSION AND SEDIMENTATION
Diversion ditches should be lined with grass at
a minimum, and blanketsif slopes exceed 10:1
VEGETATIVE BUFFERS
Vegetated buffers above or below your work site are
always a plus.
They trap sediment before it can wash into waterways,
and preventbank erosion.
bank trees and disturbed areas.
Good construction, seeding, and stabilization of
diversion berm. Notethat diversion ditch is lined with
grass on flatter part of slope, and withrock on steeper
part.
Vegetated waterways help move upland water
through or past your site
while keeping it clear of mud. Do not disturb
existing vegetation along
banks, and leave a buffer of tall grass and
shrubs between stream
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APPENDIX D. EROSION AND SEDIMENTATION
SOIL COVER VS EROSION PROTECTION
Soil covering
Mulch (hay or straw)
1.2 ton per 0.4 hectare
1 ton per 0.4 hectare
2 tons per 0.4 hectare
Grass (seed or sod)
40 percent cover
60 percent cover
90 percent cover
Bushes and shrubs
25 percent cover
75 percent cover
Trees
25 percent cover
75 percent cover
Erosion control blankets
Erosion reduction
75 percent
87 percent
98 percent
90 percent
96 percent
99 percent
60 percent
72 percent
58 percent
64 percent
95-99 percent
Prepare bare soil for planting by disking across slopes, scarifying, or tilling if soil has been sealed or
crusted over by rain. Seedbed must be dry with loose soil to a depth of 3 to 6 inches.
For slopes steeper than 4:1, walk bulldozer or other tracked vehicle up and down slopes beforeseeding
to create tread-track depressions for catching and holding seed. Mulch slopes after seeding if possible.
Cover seed with erosion control blankets or turf mats if slopes are 2:1 or greater. Apply more seed to
ditches and berms.
Erosion and sediment loss is virtually eliminated on seeded areas (left side). Rills and small gullies form
quickly on unseeded slopes (right).
BLANKET INSTALLATION (GEOFABRIC)
Install blankets and mats vertically on long
slopes. Unroll from top ofhill, staple as you
unroll it. Do not stretch blankets.
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APPENDIX D. EROSION AND SEDIMENTATION
Erosion control blankets are
thinner and usually degrade
quicker than
turf reinforcement mats.
Check manufacturer's
product informationfor
degradation rate (life span),
slope limitations, and
installation.
Remember to apply seed,
fertilizer, and lime before
covering withblankets or
mats!
Blankets installed along stream banks or other short slopes can be laid horizontally. Install blankets
verticallyon longer slopes. Ensure 15 cm minimum overlap.
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APPENDIX D. EROSION AND SEDIMENTATION
BLANKET INSTALLATION
SITE CONDITIONS
BLANKET INSTALLATION NOTES
Ditches and
channels
(from high flow
line to ditch
bottom)
Grade, disk, and prepare seedbed.
Seed, lime, and fertilize the area first
Install horizontally (across slope).
Start at ditch bottom.
Staple down blanket center line first.
Staple & bury top in 8" deep trench.
Top staples should be 12" apart.
Uphill layers overlap bottom layers.
Side overlap should be 6"-8".
Side & middle staples = 24" apart.
Staple below the flow level every 12".
Staple thru both blankets at overlaps
Long slopes,
including
areas above
ditch flow
levels
1 Grade, disk, and prepare seedbed.
Seed, lime, and fertilize first.
Install vertically (up & down hill).
Unroll from top of hill if possible.
Staple down center line of blanket first.
Staple & bury top in 8" deep trench.
Top staples should be 12" apart.
Side & middle staples = 24" apart.
Uphill layers overlap downhill layers.
Overlaps should be 6"-8".
Staple thru both blankets at overlap.
SEDIMENT BARRIERS (Silt fences and others)
Silt fences should be installed on the contour
below bare soil areas.
Use multiple fences on long slopes 20 to 26
meterst apart. Remove accumulatedsediment
before it reaches halfway up the fence.
Each 33-meter section of silt fence can filter
runoff from about 0.6 hectare (about 35
meters uphill). To install a silt fence correctly,
follow these steps:
Note the location & extent of the bare
soil area.
Mark silt fence location just below
bare soil area.
Make sure fence will catch all flows
from area.
Dig trench 15 centimeters deep across
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APPENDIX D. EROSION AND SEDIMENTATION
slope.
Unroll silt fence along trench.
Join fencing by rolling the end stakes together.
Make sure stakes are on downhill side offence.
Drive stakes in against downhill side of trench.
Drive stakes until 20 to 25 centimeters of fabric is in trench.
Push fabric into trench; spread along bottom.
Fill trench with soil and tamp down.
Stakes go on the downhill side. Dig trench first, installfence
in downhill side of trench, tuck fabric into trench, then
backfill on the uphill side (the side toward the bare soil
area).
Use J-hooks to trap and pond muddy runoff flowing along uphill side of
silt fence. Turn ends of silt fence toward the uphill side to prevent
bypassing. Use multiple J-hooks every 17 to 50 meters for heavier
flows.
Fiber rolls
can be used
to break up
runoff flows
on long
slopes.
Installon the
contour and
trench in
slightly.
Press rolls
firmly into
trench
andstake
down
securely. Consult manufacturer's instructions
for expected I ifespan of product, slope limits,
etc. As always, seed and mulch longslopes as
soon as possible.
ln;;al foei rel!
along itie eomowr.
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APPENDIX D. EROSION AND SEDIMENTATION
Very good installation of multiple silt fences on long slope. Turn ends of fencing uphill to prevent bypass.
Leave silt fences up until grass is well established on all areas of the slope. Re-seed bare areas as soon as
possible. Remove or spread accumulated sediment and remove silt fence after all grass is up.
SLOPE PROTECTION TO PREVENT GULLIES
If soil is:
Compacted and smooth
Tracks across slopes
Tracks up & down slopes
Rough and irregular
Rough & loose to 12" deep
Erosion will be:
30 percent more
20 percent more
10 percent less
10 percent less
20 percent less
Tread-track slopes up and down hill to
improve stability.
Temporary downdrain using plastic pipe. Stake down
securely, andinstall where heavy flows need to be transported down highly erodibleslopes. Note silt
check dam in front of inlet.
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APPENDIX D. EROSION AND SEDIMENTATION
Temporary or permanent downdrain using
geotextile underliner andriprap. All slope
drains must have flow dissipaters at the outlet
toabsorb high energy discharges, and silt
checks at the inlet until grassis established.
breaking up steep slopes with terraces, ditches along
contours, straw bales and other methods.
Steep, long slopes need blankets or mats.
Install blankets and mats up and down long
slopes. For channels below slopes, install
horizontally. Don't forget to apply seed, lime,
and fertilizer (if used) before installing blanket.
Other methods that could be considered are
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APPENDIX D. EROSION AND SEDIMENTATION
PROTECTING DITCHS AND CULVERTS INLETS/OUTLETS
Very good application of mixed rock for culvert inlet ponding dam. Mixingrock promotes better ponding,
drainage, and settling of sediment.
1
' ,
-
1
Low-flow
energy
dissipaters
(above) are
shorter than
those for high-
flow outlets (below).
Excellent placement and construction of rock apron to dissipate flows from culvert outlet. Area needs
seeding and mulching.
STABILIZING DRAINAGE DITCHES
Stabilization approaches for drainage ditches
Ditch Slope
Steep >10%
Moderate 10%
Slight 5%
Mostly Flat <3%
Soil Type in Ditch
Sandy
Concreteor riprap
Riprap withfilter fabric
Riprap orturf mats
&seeding
Seeding &blankets
Silty
Concreteor riprap
Riprap orturf mats
&seeding
Seeding &turf mats
Seeding &mulching
Clays
Riprap
Riprap orturf mats&
seeding
Seeding &turf mats
Seeding &mulching
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APPENDIX D. EROSION AND SEDIMENTATION
Lay in ditch blankets similar to roof shingles;
start at the lowest part of the ditch, then work
your way up. Uphill pieces lap over downhill
sections. Staple through both layers around
edges. Trench, tuck, and tamp down ends at
the top of the slope. Do not stretch blankets
or mats.
Check Dams
Silt check dams of rock, stone-filled bags, or
commercial products must be installed before uphill
excavation or fill activities begin. See table below for
correct silt check spacing for various channel slopes.
Tied end of bag goes on downstream side.
Spacing of Check Dams in Ditches
Ditch Slope
30%
20%
15%
10%
5%
3%
2%
1%
0.5%
Check Dam Spacing
(meters)
3.2
5
7
17
33
50
Additional Information
Calculated for 1 meter high check dam
Center of the dam should be 150 centimeters
lower than the sides
Use 15 to 25 cm rock, stone bags, or
commercial products
Good installation of temporary rock silt
checks. Remember to tie sides of silt check to
upper banks. Middle section should be lower.
Clean out sediment as it accumulates.
Remove silt checks after site and channel are
stabilized with vegetation.
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Good placement and spacing of fiber-roll silt
checks. Coconut fiber rolls and other
commercial products can be used where ditch
slopes do not exceed three percent.
DITCH LINING
Ditch lined with rock.
Rock Sizing for ditch liners
Flow Velocity
2 m/sec
2.5 m/sec
3.3 m/sec
4 m/sec
Average rock diameter
12.5 cm
25.0 cm
35.0cm
50.0 cm
SEDIMENT TRAPS AND BASINS
In general, sediment traps are designed to treat runoff from about 1 to 5 acres. Sediment basins are
larger, and serve areas of about 5 to 10 acres. Basins draining areas larger than 10 acres require an
engineered design, and often function as permanent storm water treatment ponds after construction is
complete.
Sediment traps
Any depression, swale, or low-lying place that receives muddy flows from exposed soil areas can serve
as a sediment trap. Installing several small traps at strategic locations is often better than building one
large basin. The simplest approach is to dig a hole or build a dike (berm) of earth or stone where
concentrated flows are present. This will help to detain runoff so sediment can settle out. The outlet
can be a rocklined depression in the containment berm.
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APPENDIX D. EROSION AND SEDIMENTATION
Sediment basins
Sediment basins are somewhat larger than traps, but the construction approach is the same . Sediment
basins usually have more spillway protection due to their larger flows. Most have risers and outlet pipes
rather than rock spillways to handle the larger flows. Sediment basins are often designed to serve later
as storm water treatment ponds. If this is the case, agreements are required for long-term sediment
removal and general maintenance. Construction of a permanent, stable outlet is key to long-term
performance.
Sizing and design
considerations
A minimum storage volume of
130 cubic meters per 0.4
hectare of exposed soil drained
is required for basins and traps.
Traps and basins are designed
so that flow paths through the
trap or basin are as long as
possible, to promote greater
settling of soil particles.
Sediment basin length must be
twice the width or more if
possiblethe longer the flow
path through the basin, the
better.
trap and basin
- 2* widlii or more
seeded
stable outlet
Side slopes for the excavation
or earthen containment berms are 2:1 or flatter. Berms are made of well-compacted clayey soil, with a
height of 1.5 meters or less. Well mixed rock can also be used as a containment berm for traps. Place
soil fill for the berm or dam in 15 cm layers and compact. The entire trap or basin, including the ponding
area, berms, outlet, and discharge area, must be seeded and mulched immediately after construction.
An overflow outlet can be made by making a notch in the containment berm and lining it with rock.
Rock in the notch must be large enough to handle over-flows, and the downhill outlet should be
stabilized with rock or other flow dissipaters similar to a culvert outlet. Overflow should be at an
elevation so dam will not overtop. Allow at least 0.33 meter of freeboard. Outlets must be designed to
promote sheet flow of discharges onto vegetated areas if possible. If the discharge will enter a ditch or
channel, make sure it is stabilized with vegetation or lined.
PROTECTING STREAMS AND STREAM BANKS
Recommended Setbacks of Activities from Streams
Bank Slope
Very Steep (2:1 or more)
Steep (4:1 or more)
Moderate (6:1 or more)
Mostly flat (< 10:1)
Soil Type Along Banks
Sandy
33m
27m
20m
13m
Silty
27m
20m
13m
10m
Clays
20m
13m
10m
6.5m
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Vegetated buffers
Preserve existing vegetation near waterways wherever possible. This vegetation is the last chance
barrier to capture sediment runoff before it enters the lake, river, stream, or wetland. Where
vegetation has been removed or where it is absent, plant native species of trees, shrubs, and grasses.
Live hardwood stakes driven through live wattles
or rolls, trenched into slope, provide excellent
stream bank protection. Protect toe of slope
with rock or additional rolls or rocks.
STREAM CROSSINGS
Keep equipment away from and out of streams.
If a temporary crossing is needed, put it where
the least stream or bank damage will occur.
Look for:
Hard stream bottom areas
Low or gently sloping banks
Heavy, stable vegetation on both sides
Use one or more culverts, as needed, sized to carry the two-year 24-hour rain storm. Cover culverts
with at least 27 cm of soil and at least 15 cm
inches of mixed rock. A 8.5 meter long, 15
cm thick pad of rock should extend down the
haul road on each side of the crossing.
Good use of silt fence, straw, rock, and other
practices for temporary stream crossing. Any
work in stream channelssuch as installation
of culverts
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Appendices: Non-Metal and Metal Mining
APPENDIX E. GARD GUIDE(ACID ROCK DRAINAGE)
1 INTRODUCTION
The Global Acid Rock Drainage (GARD) Guide addresses the prediction, prevention, and management of
drainage produced from sulfide mineral oxidation, often termed "acid rock drainage" (ARD), "acid mine
drainage" or "acid and metalliferous drainage" (AMD), "mining influenced water" (MIW), "saline
drainage" (SD), and "neutral mine drainage" (NMD).
This Executive Summary follows the general structure of the full GARD Guide, a state-of-practice
summary of the best practices and technologies, developed under the auspices of the International
Network for Acid Prevention (INAP) to assist ARD stakeholders, such as mine operators, regulators,
communities, and consultants, with addressing issues related to sulfide mineral oxidation. Readers are
encouraged to make use of the GARD Guide and its references for further detail on the subjects covered
in this Executive Summary. The GARD Guide was prepared with the input and assistance of many
individuals and organizations, and their contributions are gratefully acknowledged.
Acid rock drainage is formed by the natural oxidation of sulfide minerals when exposed to air and water.
Activities that involve the excavation of rock with sulfide minerals, such as metal and coal mining,
accelerate the process. The drainage produced from the oxidation process may be neutral to acidic,
with or without dissolved heavy metals, but always contains sulfate. ARD results from a series of
reactions and stages that typically proceed from near neutral to more acidic pH conditions. When
sufficient base minerals are present to neutralize the ARD, neutral mine drainage or saline drainage may
result from the oxidation process. NMD is characterized by elevated metals in solution at circumneutral
pH, while SD contains high levels of sulfate at neutral pH without significant dissolved metal
concentrations. Figure 1 presents the various types of drainage in a schematic manner.
Stopping ARD formation, once initiated, may be challenging because it is a process that, if unimpeded,
will continue (and may accelerate) until one or more of the reactants (sulfide minerals, oxygen, water) is
exhausted or excluded from reaction. The ARD formation process can continue to produce impacted
drainage for decades or centuries after mining has ceased, such as illustrated by this portal dating from
the Roman era in Spain (Figure 2)
The cost of ARD remediation at orphaned mines in North America alone has been estimated in the tens
of billions of U.S. dollars. Individual mines can face post-closure liabilities of tens to hundreds of million
dollars for ARD remediation and treatment if the sulfide oxidation process is not properly managed
during the mine's life.
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Figure 1: Types of Drainage Produced by Sulphide Oxidation
Typical relation to drainage pH:
Saline Drainage
Neutral
Mine Drainage
Acid Rock Drainage
PH
f
Typ
14567
icai drainage characteristics:
Acid Rock Drainage
aei« pH
moderate to elevaed
metals
elevated sulphate
* treat for scsd neutraliz alien
and metal and sulphate
removal
Neutral Mine Drainage
near neutral to alkali na pH
low to moderate metals
May have eSevatedzinc,
cadmium, manganese,
antimony, arsenic or
selenium.
tow to moderate sulphate
feat for metal and
sometimes sulphate removal
8 9 10
Saline Drainage
neuttaitoaika'inepH
low metals M=y have
moderate iron
moderate sulphate.
magnesium an d calcium
treat f or sulpn ate and
sometimes metal removal
Figure 2: Roman Portal with Acid Rock Drainage - Spain
Proper mine characterization, drainage-quality prediction, and mine-waste management can prevent
ARD formation in most cases, and minimize ARD formation in all cases. Prevention of ARD must
commence at exploration and continue throughout the mine-life cycle. Ongoing ARD planning and
management is critical to the successful prevention of ARD.
Many mines will not produce ARD because of the inherent geochemical characteristics of their mining
wastes or very arid climatic conditions. In addition, mines that have implemented well founded
prediction efforts and, where required, prevention measures and monitoring programs, should also be
able to avoid significant ARD issues.
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APPPENDIX E. CARD GUIDE(ACID ROCK DRAINAGE)
A comprehensive approach to ARD management reduces the environmental risks and subsequent costs
for the mining industry and governments, reduces adverse environmental impacts, and promotes public
support for mining. The extent and particular elements of the ARD management approach that should
be implemented at a particular operation will vary based on many site-specific factors, not limited to the
project's potential to generate ARD.
2 FORMATION OF ACID ROCK DRAINAGE
The process of sulfide oxidation and formation of ARD, NMD, and SD is very complex and involves a
multitude of chemical and biological processes that can vary significantly depending on environmental,
geological and climate conditions (Nordstrom and Alpers, 1999). Sulfide minerals in ore deposits are
formed under reducing conditions in the absence of oxygen. When exposed to atmospheric oxygen or
oxygenated waters due to mining, mineral processing, excavation, or other earthmoving processes,
sulfide minerals can become unstable and oxidize. Figure 3 presents a simplified model describing the
oxidation of pyrite, which is the sulfide mineral responsible for the large majority of ARD (Stumm and
Morgan, 1981). The reactions shown are schematic and may not represent the exact mechanisms, but
the illustration is a useful visual aid for understanding sulfide oxidation.
Figure 3: Model for the Oxidation of Pyrite (Stumm and Morgan, 1981).
[la]
FeS2{s)
J1L
\/
slow
The chemical reaction representing pyrite oxidation (reaction [1]) requires three basic ingredients:
pyrite, oxygen, and water. This reaction can occur both abiotically or biotically (i.e., mediated through
microorganisms). In the latter case, bacteria such as Acidithiobacillusferrooxidans, which derive their
metabolic energy from oxidizing ferrous to ferric iron, can accelerate the oxidation reaction rate by
many orders of magnitude relative to abiotic rates (Nordstrom, 2003). In addition to direct oxidation,
pyrite can also be dissolved and then oxidized (reaction [la]).
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Under the majority of circumstances, atmospheric oxygen acts as the oxidant. However, aqueous ferric
iron can oxidize pyrite as well according to reaction [2]. This reaction is considerably faster (2 to 3
orders of magnitude) than the reaction with oxygen, and generates substantially more acidity per mole
of pyrite oxidized. However, this reaction is limited to conditions in which significant amounts of
dissolved ferric iron occur (i.e., acidic conditions: pH 4.5 and lower). Oxidation of ferrous iron by oxygen
(reaction [3]) is required to generate and replenish ferric iron, and acidic conditions are required for the
latter to remain in solution and participate in the ARD production process. As indicated by this reaction,
oxygen is needed to generate ferric iron from ferrous iron. Also, the bacteria that may catalyze this
reaction (primarily members oftheAcidithiobacillus genus) demand oxygen for aerobic cellular
respiration. Therefore, some nominal amount of oxygen is needed for this process to be effective even
when catalyzed by bacteria, although the oxygen requirement is considerably less than for abiotic
oxidation.
A process of environmental importance related to ARD generation pertains to the fate of ferrous iron
resulting from reaction [1]. Ferrous iron can be removed from solution under slightly acidic to alkaline
conditions through oxidation and subsequent hydrolysis and the formation of a relatively insoluble iron
(hydr)oxide (reaction [4]). When reactions [1] and [4] are combined, as is generally the case when
conditions are not acidic (i.e., pH > 4.5), oxidation of pyrite produces twice the amount of acidity relative
to reaction [1] as follows:
FeS2 + 15/4O2 + 7/2H2O = Fe(OH)3 + 2SO42" + 4H+, which is the overall reaction most commonly used to
describe pyrite oxidation.
Although pyrite is by far the dominant sulfide responsible for the generation of acidity, different ore
deposits contain different types of sulfide minerals. Not all of these sulfide minerals generate acidity
when being oxidized. As a general rule, iron sulfides (pyrite, marcasite, pyrrhotite), sulfides with molar
metal/sulfur ratios < 1, and sulfosalts (e.g., enargite) generate acid when they react with oxygen and
water. Sulfides with metal/sulfur ratios = 1 (e.g., sphalerite, galena, chalcopyrite) tend not to produce
acidity when oxygen is the oxidant. However, when aqueous ferric iron is the oxidant, all sulfides are
capable of generating acidity. Therefore, the acid generation potential of an ore deposit or mine waste
generally depends on the amount of iron sulfide present.
Neutralization reactions also play a key role in determining the compositional characteristics of drainage
originating from sulfide oxidation. As for sulfide minerals, the reactivity, and accordingly the
effectiveness with which neutralizing minerals are able to buffer any acid being generated, can vary
widely. Most carbonate minerals are capable of dissolving rapidly, making them effective acid
consumers. However, hydrolysis of dissolved Fe or Mn following dissolution of their respective
carbonates and subsequent precipitation of a secondary mineral may generate acidity. Although
generally more common than carbonate phases, aluminosilicate minerals tend to be less reactive, and
their buffering may only succeed in stabilizing the pH when rather acidic conditions have been achieved.
Calcium-magnesium silicates have been known to buffer mine effluents at neutral pH when sulfide
oxidation rates were very low (Jambor, 2003).
The combination of acid generation and acid neutralization reactions typically leads to a step-wise
development of ARD (Figure 4). Over time, pH decreases along a series of pH plateaus governed by the
buffering of a range of mineral assemblages. The lag time to acid generation is a very important
consideration in ARD prevention. It is far more effective (and generally far less costly in the long term)
to control ARD generation during its early stages. The lag time also has significant ramifications for
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interpretation of test results. Because the first stage of ARD generation may last for a very long time,
even for materials that will eventually be highly acid generating, it is critical to recognize the stage of
oxidation when predicting ARD potential. The early results of geochemical testing, therefore, may not
be representative of long-term environmental stability and associated discharge quality. However early
test results provide valuable data to assess future conditions such as consumption rates of available
neutralizing minerals.
A common corollary of sulfide oxidation is metal leaching (ML), leading to the frequent use of the
acronyms "ARD/ML" or "ML/ARD" to more accurately describe the nature of acidic mine discharges.
Major and trace metals in ARD, NMD, and SD originate from the oxidizing sulfides and dissolving acid-
consuming minerals. In the case of ARD, Fe and Al are usually the principal major dissolved metals,
while trace metals such as Cu, Pb, Zn, Cd, Mn, Co, and Ni can also achieve elevated concentrations. In
mine discharges with a more circumneutral character, trace metal concentrations tend to be lower due
to formation of secondary mineral phases and increased sorption. However, certain parameters remain
in solution as the pH increases, in particular the metalloids As, Se, and Sb as well as other trace metals
(e.g., Cd, Cr, Mn, Mo, and Zn).
Figure 4: Stages in the Formation of ARD (INAP, 2009)
IN STAGES I flrjp II
FeSj
; + M,O * Fe!'*2S
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environmental situation within which the mine is located, whilst the framework comprises the
applicable corporate, regulatory norms and standards and community specific requirements and
expectations. This framework applies over the complete life cycle of the mine and is illustrated
conceptually in Figure 5.
Figure 5: Conceptual ARD Management Framework (INAP, 2009)
Framework
Exploration
Assessment
Design
Construction
Operation
Closure
ID
Post-closure
Corporate Regulatory and Community Context
Environmental, Social and Economic Setting
ARD Risk
Mine Environmental Management
l
r- -
H-Hl
All mining companies, regardless of size, need to comply with the national legislation and regulations
pertaining to ARD of the countries within which they operate. It is considered good corporate practice
to adhere to global ARD guidance as well, and in many cases such adherence is a condition of funding.
Many mining companies have established clear corporate guidelines that represent the company's view
of the priorities to be addressed and their interpretation of generally accepted best practice related to
ARD. Caution is needed to ensure all specifics of the country regulations are met, as corporate ARD
guidelines cannot be a substitute for country regulations.
Mining companies operate within the constraints of a "social license" that, ideally, is based on a broad
consensus with all stakeholders. This consensus tends to cover a broad range of social, economic,
environmental and governance elements (sustainable development). ARD plays an important part in
the mine's social license due to the fact that ARD tends to be one of the more visible environmental
consequences of mining. The costs of closure and post-closure management of ARD are increasingly
recognized as a fundamental component of all proposed and operating mining operations. Some form
of financial assurance is now required in many jurisdictions.
4 CHARACTERIZATION
The generation, release, transport and attenuation of ARD are intricate processes governed by a
combination of physical, chemical and biological factors. Whether ARD becomes an environmental
concern depends largely on the characteristics of the sources, pathways and receptors involved.
Characterization of these aspects is therefore crucial to the prediction, prevention and management of
ARD. Environmental characterization programs are designed to collect sufficient data to answer the
following questions:
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1 Is ARD likely to occur? What type of drainage is expected (ARD/NMD/SD)?
2 What are the sources of ARD? How much ARD will be generated and when?
3 What are the significant pathways that transport contaminants to the receiving environment?
4 What are the anticipated environmental impacts of ARD release to the environment?
5 What can be done to prevent or mitigate/manage ARD?
The geologic and mineralogic characteristics of the ore body and host rock are the principal controls on
the type of drainage that will be generated as a result of mining. Subsequently, the site climatic and
hydrologic/hydrogeologic characteristics define how mine drainage and its constituents are transported
through the receiving environment to receptors. To evaluate these issues, expertise from multiple
disciplines is required, including: geology, mineralogy, hydrology, hydrogeology, geochemistry,
(micro)biology, meteorology, and engineering.
The geologic characteristics of mineral deposits exert important and predictable controls on the
environmental signature of mineralized areas (Plumlee, 1999). Therefore, a preliminary assessment of
the ARD potential should be made based on review of geologic data collected during exploration.
Baseline characterization of metal concentrations in various environmental media (i.e., water, soils,
vegetation and biota) may also provide an indication of ARD potential and serves to document
potentially naturally elevated metal concentrations. During mine development and operation, the initial
assessment of ARD potential is refined through detailed characterization data on the environmental
stability of the waste and ore materials. The magnitude and location of mine discharges to the
environment also are identified during mine development. Meteorologic, hydrological and
hydrogeological investigations are conducted to characterize the amount and direction of water
movement within the mine watershed(s) to evaluate transport pathways for constituents of interest.
Potential biological receptors within the watershed boundary are identified. As a consequence, over the
mine life, the focus of the ARD characterization program evolves from establishing baseline conditions,
to predicting drainage release and transport, to monitoring of the environmental conditions and
impacts.
Despite inherent differences at mine sites (e.g., based on commodity type, climate, mine phase,
regulatory framework), the general approach to site characterization is similar:
Define the quantity and quality of drainage potentially generated by different sources.
Identify surface and groundwater pathways that transport drainage from sources to receptor.
Identify receptors that may be affected by exposure to drainage Define the risk of this exposure.
Figures 6 and 7 present the chronology of an ARD characterization program and identify the data
collection activities typically executed during each mine phase. The bulk of the characterization effort
occurs prior to mining during the mine planning, assessment and design (sometimes collectively referred
to as the development phase). In addition, potential environmental impacts are identified and
appropriate prevention and mitigation measures, intended to minimize environmental impacts, are
incorporated. During the commissioning/construction and operation phases, a transition from site
characterization to monitoring occurs, which is continued throughout the decommissioning/closure and
post-closure phases. Ongoing monitoring helps refine the understanding of the site, which allows for
adjustment of remedial measures, in turn resulting in reduced closure costs and improved risk
management.
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Figure 6: Overview of ARD Characterization Program by Mine Phase (INAP, 2009)
K
1 Mine Phase - Increasing Knowledge of Site Characteristics ^
^ 1 Exploration
Mine Planning, Construction and Operation Decommissioning Post-Closure
Feasibility and Design Commissioning I
^^^^^1 (Development) 1
^
g
01
c
o
o.
fi
tj
Ti
o
S
s
n and Monitoring
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Figure 7: ARD Characterization Program for Individual Source Materials by Mine Phase (INAP, 2009)
g
v>
a
1/1
a
DC
T5
i
s.
1_
o
Waste
Rock
Tailings
Or*
Pit
Under-
ground
Workings
Mine Phase Increasing Knowledge of Source Material Characterization
Exploration Mine Planning, Construction and
(Pre-) Feasibility Commissioning
and Design
Drill core
descriptions and
assay data
(petrology aitd
mineralogy^
Slock model
(quantity of ore
and waste)
Review of any
historical data
Laboratory testing of
drill core samples -
sample selection
targets waste w
Laboratory testing of
pltot plant tailmgi"!
Ana lysis of pilot
testing supernatant.
Lstoralorvtesiingof
drill core samples l*>
LibontcrytetUngof
dril cote simples -
sample selection
targets p it w*Ps<»
Laboratory testing of
drill core samples -
sample selection
targets mine walls1*1
Ongoing laboratory testing of
drill core or development rode
samplesw
Field leach testing (barrels,
test pads)
Ongoing laboratory testing of
pifot plant tail ings'*>
Operation
Ongoing laboratory
testing"1
Ongoing lie Id leach
testing
Collection and smrysis
of runoff snd seeojge
samples from waste
rock facility
Ongoing laboratory
testing of tailings
discharge w
Collection and analysis
of supernatant and
seepage samples from
IS
Ongoing Ubor»tory
testing"1
Field sealele«Mesting
(e.g., will wishing)
Collection and in»tysii
mn-ilf. Mirrifr.l
Collecton and analysts
of watersamplesli.e.,
sumps, dewatering
welt]
Decommissioning Post-Closure
| Care and
Maintenance)
Collection and analysis
of r jr off and seepage
samples from waste
rock facility
Collection and ana vsis
of supernatant and
seepage samples from
TSf
If 0
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objectives of a prediction program can be variable. For instance, they can include definition of water
treatment requirements, selection of mitigation methods, assessment of water quality impact, or
determination of reclamation bond amounts.
Predictions of drainage quality are made in a qualitative and quantitative sense. Qualitative predictions
are focused on assessing whether acidic conditions might develop in mine wastes, with the
corresponding release of metals and acidity to mine drainage. Where qualitative predictions indicate a
high probability of ARD generation, attention turns to review of alternatives to prevent ARD and the
prediction program is refocused to assist in the design and evaluation of these alternatives.
Significant advances in the understanding of ARD have been made over the last several decades, with
parallel advances in mine water quality prediction and use of prevention techniques. However,
quantitative mine water quality prediction can be challenging due to the wide array of the reactions
involved and potentially very long time periods over which these reactions take place. Despite these
uncertainties, quantitative predictions that have been developed using realistic assumptions (while
recognizing associated limitations) have proven to be of significant value for identification of ARD
management options and assessment of potential environmental impacts.
Prediction of mine water quality generally is based on one of more of the following:
1. Test leachability of waste materials in the laboratory.
2. Test leachability of waste materials under field conditions
3. Geological, hydrological, chemical and mineralogical characterization of waste materials
4. Geochemical and other modeling
Analog operating or historic sites are also valuable in ARD prediction, especially those that have been
thoroughly characterized and monitored. The development of geo-environmental models is one of the
more prominent examples of the "analog" methodology. Geo-environmental models, which are
constructs that interpret the environmental characteristics of an ore deposit in a geologic context,
provide a very useful way to interpret and summarize the environmental signatures of mining and
mineral deposits in a systematic geologic context, and can be applied to anticipate potential
environmental problems at future mines, operating mines and orphan sites (Plumlee et al., 1999). A
generic overall approach for ARD prediction is illustrated in Figure 8.
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Figure 8: Generic Overview of ARD Prediction Approach (INAP, 2009)
C
0
V-"
_o
Q.
X
LU
e planning,
y studies, design
i 1 ,
5 IQ
ro
ef ui
o _°
If"
Constri
decommis
Typical Project Phase
Initial
Lxploration/Site
Reconnaissance
Minimum Objective of
ML/ ARD Program
Develop conceptual
geological model for
theste
Advanced
Exploration/Detail
ed Site
Investigation
Initial assessment of
Potential ML/ARD
Issues
/ \
Pre heasibility
(Initial Mine,
Waste, Water, and
Closure Planning)
Develop Mine and
Waste Management
Plans to address
ML/ARD Potential
l-casibility/
Perm King
(Detailed Initial
Mine, Waste,
Water, and Closure
Plann ng) and
tffects Assessment
Assess Pro
r-> With Prop
PI
Re-evaluate
Project
Lffects
1 1
Project
Implementation
(Construction,
Mining, Closure)
Re De
Mine ,
Was
Manage
Plan
t
L 1
cct Lffects
ased Mine -
Assess Mine Plan
and Modify
ML/ARD Program Stage
Pre Screening
Phase 1
(Initial
Geochemica!
Characterisation)
Phase 2
(Detailed
Geocnemical
Characterization)
*
ign
ind
e
ment
s
Dew
Hadlity
Ter
Data Needed
to Refine
Source Term
>
Hop
Source
ms
Refine
Source Term
Downstream
Water Quality
Modelling
Verification
Mon Wring
ML/ARD Program Activities
Compile and review historical
data
Develop logging manual
Diamond drilling and core
storage
Core togging
Core analysis for total elements.
Geological report
Geological Interpretation
Collect baseline data
Site visit by project geochcmist
Develop conceptual geochernical
model
Compare site with analogues
Design static testing
Static testing.
Site water sampling (existing
facilities, groundwater, surface
water).
Interpretation of ML/ARD
Potential
List mine facilities (incl.
infrastructure.
Identify data characterizations
needs by facility
Design characterization plan.
Lxecute testing (detailed static
and kinetic)
Interpret test data
Define waste management
criteria
Block modeling
Continue Phase 2 program.
Define geometry of facilities
Develop mine waste schedule
Interpret climatological data.
Select modelling methods
Lxecute modeling
Couple water and load balance
tvaluate uncertainty and risk
Interpret baseline water quality
Develop downstream
hydrologicaland hydrogeological
modeling
Select water quality modelling
method
Lxecute modeling
evaluate uncertainty and risk
Design verification monitoring
execute monitoring plan
evaluate results
-
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6 PREVENTION AND MITIGATION
The fundamental principle of ARD prevention is to apply a planning and design process to prevent,
inhibit, retard or stop the hydrological, chemical, physical, or microbiological processes that result in the
impacts to water resources. Prevention should occur at, or as close to, the point where the
deterioration in water quality originates (i.e. source reduction), or through implementation of measures
to prevent or retard the transport of the ARD to the water resource (i.e. recycling, treatment and/or
secure disposal). This principle is universally applicable, but methods of implementation are site
specific.
Prevention is a proactive strategy that obviates the need for the reactive approach to mitigation. For an
existing case of ARD that is adversely impacting the environment, mitigation will usually be the initial
course of action. Despite this initial action, subsequent preventive measures are often considered with
the objective of reducing future contaminant loadings, and thus reducing the ongoing need for
mitigation controls. Integration of the prevention and mitigation effort into the mine operation is a key
element for successful ARD management.
Prior to identification of evaluation of prevention and mitigation measures, the strategic objectives must
be identified. That process should consider assessment of the following:
Quantifiable risks to ecological systems, human health, and other receptors;
Site specific discharge water quality criteria;
Capital, operating and maintenance costs of mitigation or preventative measures;
Logistics of long-term operations and maintenance; and
Required longevity and anticipated failure modes
Typical objectives for ARD control are to satisfy environmental criteria using the most cost-effective
technique. Technology selection should consider predictions for discharge water chemistry, advantages
and disadvantages of treatment options, risk to receptors, and the regulatory context related to mine
discharges.
A risk-based planning and design approach forms the basis for prevention and mitigation. This approach
is applied throughout the mine life cycle, but primarily in the assessment and design phases. The risk-
based process aims to quantify the long-term impacts of alternatives and to use this knowledge to select
the option that has the most desirable combination of attributes (e.g., protectiveness, regulatory
acceptance, community approval, cost). Mitigation measures implemented as part of an effective
control strategy should require minimal active intervention and management.
Prevention is the key to avoid costly mitigation. The primary objective is to apply methods that
minimize sulfide reaction rates, metal leaching and the subsequent migration of weathering products
that result from sulfide oxidation. Such methods involve:
Minimizing oxygen supply
Minimizing water infiltration and leaching
Minimizing, removing or isolating sulfide minerals
Controlling pore water solution pH
Controlling bacteria and biogeochemical processes
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Factors influencing selection of the above methods include:
1. Geochemistry of source materials and the potential of source materials to produce ARD;
2. Type and physical characteristics of the source, including water flow and oxygen transport;Mine-
development stage (more options are available at early stages);
3. Phase of oxidation (more options are available at early stages when pH is still near neutral and
oxidation products have not significantly accumulated);
4. Time period for which the control measure is required to be effective;
5. Site conditions (i.e., location, topography and available mining voids, climate, geology,
hydrology and hydrogeology, availability of materials and vegetation); and
6. Water quality criteria for discharge; and Risk acceptance by company and other stakeholders.
More than one, or a combination of measures, may be required to achieve the desired objective. Figure
9 provides a generic overview of the most common ARD prevention and mitigation measures available
during the various stages of the mine-life cycle.
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Figure 9: Generic Overview of ARD Prevention and Mitigation Measures (INAP, 2009)
Exploration
characterization
Assessment
prediction
Design
planning for avoidance
Construction
surface water conU ol works
groundwater control
Operation
\ waste rock /
special
handling
segregation
encapsulation
layering
blending
\ tailings /
desulphunzation
compaction
amendment
dewatering
V\ underground /
\ workings /
re-mining
backfilling
passivation
selective mining and avoidance
hydrodynamie controls
appropriate s ting of facilities
co-disposal
in-pit disposal
permafrost and freezing
bade* ic des
alkaline materials
organics
Decommission
dry cover
seals
water cover
flooding
Post-Closure
monitoring, maintenance, inspection
where required long lerm collection and treatment
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7 ACID ROCK DRAINAGE TREATMENT
Sustainable mining requires the mitigation, management and control of mining impacts on the
environment. The impacts of mining on water resources can be long term and persist in the post-
closure situation. Mine drainage treatment may be a component of overall mine water management to
support a mining operation over its entire life. The objectives of mine drainage treatment are varied.
Recovery and re-use of mine water within the mining operations may be desirable or required for
processing of ores and minerals, conveyance of materials, operational use (dust suppression, mine
cooling, irrigation of rehabilitated land), etc. Mine drainage treatment, in this case, is aimed at
modifying the water quality so that it is fit for the intended use on or off the mine site.
Another objective of mine water treatment is the protection of human and ecological health in cases
where people or ecological receptors may come in contact with the impacted mine water through
indirect or direct use. Mine drainage may act as the transport medium for a range of pollutants, which
may impact on-site and off-site water resources. Water treatment would remove the pollutants
contained in mine drainage to prevent or mitigate environmental impacts.
In the large majority of jurisdictions, any discharge of mine drainage to a public stream or aquifer must
be approved by the relevant regulatory authorities, while regulatory requirements stipulate a certain
mine water discharge quality or associated discharge pollutant loads. Although discharge quality
standards may not be available for many developing mining countries, internationally acceptable
environmental quality standards generally still apply as stipulated by project financiers and company
corporate policies.The approach to selection of a mine drainage treatment method is premised on a
thorough understanding of the integrated mine water system and circuits and the specific objective(s) to
be achieved. The approach adopted for mine drainage treatment will be influenced by a number of
considerations.
Prior to selecting the treatment process, a clear statement and understanding of the objectives of
treatment should be prepared. Mine drainage treatment must always be evaluated and implemented
within the context of the integrated mine water system. Treatment will have an impact on the flow and
quality profile in the water system; hence, a treatment system is selected based on mine water flow,
water quality, cost and ultimate water use(s).
Characterization of the mine drainage in terms of flow and chemical characteristics should include due
consideration of temporal and seasonal changes. Flow data are especially important as this information
is required to properly size any treatment system. Of particular importance are extreme precipitation
and snow melt events that require adequate sizing of collection ponds and related piping and ditches.
The key chemical properties of mine drainage relate to acidity/alkalinity, sulfate content, salinity, metal
content, and the presence of specific compounds associated with specific mining operations, such as
cyanide, ammonia, nitrate, arsenic, selenium, molybdenum and radionuclides. There are also a number
of mine drainage constituents (for example, hardness, sulfate, silica) which may not be of regulatory or
environmental concern in all jurisdictions, but that could affect the selection of the preferred water
treatment technology. Handling and disposal of treatment plant waste and residues such as sludges and
brines and their chemical characteristics must also factor in any treatment decisions.
A mine-drainage treatment facility must have the flexibility to deal with increasing/decreasing water
flows, changing water qualities and regulatory requirements over the life of mine. This may dictate
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phased implementation and modular design and construction. Additionally, the post-closure phase may
place specific constraints on the continued operation and maintenance of a treatment facility.
Practical considerations related to mine-site features that will influence the construction, operation and
maintenance of a mine-drainage-treatment facility are as follows:
Mine layout and topography
Space
Climate
Sources of mine drainage feeding the treatment facility
Location of treated water users
A generic range of ARD treatment alternatives is presented in Figure 10.
Figure 10: Generic Overview of ARD Treatment Alternatives (INAP, 2009)
Neutralization
Lime/ Limestone
Process
Sodium based
alkali's (NaOH,
Na2CO3)
Ammonia
Biological Sulphate
Reduction
Wetlands,
anoxic drains
Other
Technologies
Drainage Treatment Technology
Categories
Metals Removal
Precipitation /
Hydroxide
Precipitation /
Carbonates
Precipitation '
Sulfides
Wetlands,
Oxidation ponds
Other
Technologies
Desalination
Biological Sulphate
Removal
Precipitation
processes such
as ettringite
Membrane-based
processes
Ion-exchange
processes
Wetlands, passive
treatment process
KM01-002
Specific target
pollutant treatment
Cyanide removal
- chemical oxidation
- biological oxidation
- complexation
Radio-active nuclides
- precipitation
- ion exchange
Arsenic removal
- oxidation / reduction
precipitation
- adsorption
Molybdenum removal:
- iron adsorption
Other technologies
8 ACID ROCK DRAINAGE MONITORING
Monitoring is the process of routinely, systematically and purposefully gathering information for use in
management-decision making. Mine-site monitoring aims to identify and characterize any
environmental changes from mining activities to assess conditions on the site and possible impacts to
receptors. Monitoring consists of both observation (e.g., recording information about the environment)
and investigation (e.g., studies such as toxicity tests where environmental conditions are controlled).
Monitoring is critical in decision making related to ARD management, for instance through assessing the
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effectiveness of mitigation measures and subsequent implementation of adjustments to mitigation
measures as required.
Development of an ARD monitoring program starts with review of the mine plan, the geographical
location and the geological setting. The mine plan provides information on the location and magnitude
of surface and subsurface disturbances, ore processing and milling procedures, waste disposal areas,
effluent discharge locations, groundwater withdrawals and surface water diversions. This information is
used to identify potential sources of ARD, potential pathways for release of ARD to the receiving
environment, and receptors that may be impacted by these releases and potential mitigation that may
be required. Because the spatial extent of a monitoring program must include all these components, a
watershed approach to ARD monitoring (including groundwater) is often required. Monitoring occurs at
all stages of project development, from pre-operational through post closure. However, over the life of
a mine, the objectives, components and intensity of the monitoring activities will change. The
development and components of a generic ARD monitoring program are presented in Figure 11.
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Figure 11: Development of an ARD Monitoring Program (INAP, 2009)
Conceptual Site Model (CSM)
ARD/ML Pathway Receptor
Source
Dynamic System Model (DSM)
Quantitative representation of CSM
Define Monitoring Objectives
Characterize Current Conditions
Assess ARD/ML Potential
Detect Onset of ARD/ML
Predict Onset of ARD/ML
Assess Effects/Impacts of ARD/ML
Assess Engineered ARD/ML Controls
Design Monitoring Program
Data Requirements to Meet Objectives
Sampling Locations and Media
Sampling Frequency
Sampling Methods (SOPs)
Parameters/Analytes to be Measured
Quality Assurance / Quality Control
Implement Monitoring Program
Data Collection
* Data Management
Data Analysis & Interpretation
Validate or Update CSM/DSM
Audit
(Internal / External)
Continuous Feedback
Meeting objectives?
New objectives?
Adequate data collection?
Appropriate locations?
Appropriate frequency?
* Appropriate methods?
Appropriate analytes?
Laboratory performance
Implementation of SOPs
Data security and integrity
Appropriate analyses?
Timely analyses?
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9 ACID ROCK DRAINAGE MANAGEMENT AND PERFORMANCE ASSESSMENT
The management of ARD and the assessment of its performance are usually described within the site
environmental management plan or in a site-specific ARD management plan. The ARD management
plan represents the integration of the concepts and technologies described earlier in this chapter. It
also references the engineering design processes and operational management systems employed by
mining companies.
The need for a formal ARD management plan is usually triggered by the results of an ARD
characterization and prediction program or the results of site monitoring. The development,
assessment and continuous improvement of an ARD management plan is a continuum throughout the
life of a mine. The development, implementation and assessment of the ARD management plan will
typically follow the sequence of steps illustrated in Figure 12. As shown in this figure, the development
of an ARD management plan starts with establishment of clear goals and objectives. These might
include the prevention of ARD or achieving compliance with specific water quality criteria. This includes
consideration of the biophysical setting, regulatory and legal registry, community and corporate
requirements and financial considerations. Characterization and prediction programs identify the
potential magnitude of the ARD issue and provide the basis for the selection and design of appropriate
ARD prevention and mitigation technologies. The design process includes an iterative series of steps in
which ARD control technologies are assessed and then combined into a robust system of management
and controls (i.e., the ARD management plan) for the specific site. The initial mine design may be used
to develop the ARD management plan needed for an environmental assessment (EA). The final design is
usually developed in parallel with project permitting.
The ARD management plan identifies the materials and mine wastes that require special management.
Risk assessment and management are included in the plan to refine strategies and implementation
steps. To be effective, the ARD management plan must be fully integrated with the mine plan.
Operational controls such as standard operating procedures (SOPs), key performance indicators (KPIs)
and quality assurance/quality control (QA/QC) programs are established to guide its implementation.
The ARD management plan identifies roles, responsibilities and accountabilities for mine operating staff.
Data management, analysis and reporting schemes are included to track progress of the plan.
In the next step, monitoring is conducted to compare field performance against the design goals and
objectives of the management plan. Assumptions made in the characterization and prediction programs
and design of the prevention/mitigation measures are tested and revised or validated. "Learnings" from
monitoring and assessment are evaluated and incorporated into the plan as part of continuous
improvement.
Accountability for implementing the management plan is checked to ensure that those responsible are
meeting the requirements stipulated in the plan. Internal and external reviews or audits should be
conducted to gauge performance of personnel, management systems, and technical components to
provide additional perspectives on the implementation of the ARD management plan. Review by site
and corporate management of the entire plan is necessary to ensure the plan continues to adhere to
site and corporate policies. Additional risk assessment and management may be conducted at this stage
to assess the effects of changing conditions or plan deviations. Finally, results are assessed against the
goals. If the objectives are met, performance assessment and monitoring continues throughout the
mine life with periodic re-checks against the goals. If the objectives are not met, then re-design and re-
evaluation of the management plan and performance assessment and monitoring systems for ARD
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prevention/mitigation are required. This additional effort might also require further characterization
and ARD prediction.
The process described in Figure 12 results in continuous improvement of the ARD management plan and
its implementation, and accommodates possible modifications in the mine plan. If the initial ARD
management plan is robust, it can be more readily adapted to mine plan changes.
Implementing the ARD management plan relies on a hierarchy of management tools. Corporate policies
help define corporate or site standards which lead to SOPs and KPIs that are specific to the site and
guide operators in implementing the ARD management plan. Where corporate policies or standards do
not exist, projects and operations should rely on industry best practice.
10 ACID ROCK DRAINAGE COMMUNICATION AND CONSULTATION
The level of knowledge of ARD generation and mitigation has increased dramatically over the last few
decades within the mining industry, academia and regulatory agencies. However, in order for this
knowledge to be meaningful to the wide range of stakeholders generally involved with a mining project,
it needs to be translated into a format that can be readily understood. This consultation should convey
the predictions of future drainage quality and the effectiveness of mitigation plans, their degree of
certainty and contingency measures to address that uncertainty. An open dialogue on what is known,
and what can be predicted with varying levels of confidence, helps build understanding and trust, and
ultimately results in a better ARD management plan.
Communicating and consulting with stakeholders about ARD issues is essential to the company's social
license to operate. Due to the generally highly visible nature of ARD, special measures and skilled
people are needed to communicate effectively, and the involvement of representatives from all relevant
technical disciplines in a mining company may be required.
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Figure 12: Flow Chart for ARD Performance Assessment and Management Review (INAP, 2009)
Problem Definition
physical sotting
regulatory and toga! registry
community requirements
corooraie requirements
financ;al cons derations
1
Goals and Objectives
v
Characterization and Prediction
,r
n for ARD Prevention/Mitigation
i '
ARD Management Plan
* materials definition
- risk assessment and manage mo nt
- management strategy
integration with mine plan
- operational controls (SOP'S. KPI's= QA/QC)
rotes, responsibilities and accountability
- data management, analysis and reporting
i p
Pertorrr
- roconcilic
* ossumpt
- learnings
- accounta
auditing i
- risk asso
No
iar.ce Assessment and Monitor ng
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on validation
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ind management review
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1
^^^""'^ "^*-*^ Yea
er^ Roil" '^iti'-fifri'' ^""^i
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11 SUMMARY
Acid rock drainage is one of the most serious environmental issues facing the mining industry. A
thorough evaluation of ARD potential should be conducted prior to mining and continued through the
life of mine. Consistent with sustainability principles, strategies for dealing with ARD should focus on
prevention or minimization rather than control or treatment. These strategies are formulated within an
ARD management plan, to be developed in the early phases of the project, together with monitoring
requirements to assess their performance. The integration of the ARD management plan with the mine
operation plan is critical to the success of ARD prevention. Leading practices for ARD management
continue to evolve, but tend to be site specific and require specialist expertise.
12 REFERENCES
International Network for Acid Prevention (INAP), 2009. The Global Acid Rock Drainage Guide.
http://www.address to be determined.
Jambor, J.L. 2003. Mine-Waste Mineralogy and Mineralogical Perspectives of Acid-Base Accounting. In:
Environmental Aspects of Mine Wastes (Eds.: Jambor, J.L, D.W. Blowes, and A.I.M. Ritchie). Short
Course Series Volume 31. Mineralogical Association of Canada.
Nordstrom, O.K. 2003. Effects of Microbiological and Geochemical Interactions in Mine Drainage. In:
Environmental Aspects of Mine Wastes (Eds. Jambor, J.L, D.W. Blowes, and A.I.M. Ritchie). Short
Course Series Volume 31. Mineralogical Association of Canada.
Nordstrom, O.K., and Alpers, C.N. 1999. Geochemistry of Acid Mine Waters. In: The Environmental
Geochemistry of Mineral Deposits, Part A: Processes, Techniques and Health Issues (Eds.: Plumlee, G.S.,
and M.J. Logsdon). Reviews in Economic Geology Vol 6A. Society of Economic Geologists, Inc.
Plumlee, G.S. 1999. The Environmental Geology of Mineral Deposits. In: The Environmental
Geochemistry of Mineral Deposits, Part A: Processes, Techniques and Health Issues (Eds.: Plumlee, G.S.,
and M.J. Logsdon). Reviews in Economic Geology Vol 6A. Society of Economic Geologists, Inc.
Plumlee, G.S., K.S., Smith, M.R., Montour, W.H. Ficklin, and Mosier. E.L 1999. Geologic Controls on the
Composition of Natural Waters and Mine Waters Draining Diverse Mineral-Deposit Types. In: The
Environmental Geochemistry of Mineral Deposits, Part B: Case Studies and Research Topics (Eds.:
Filipek, L.H. and G.S. Plumlee). Reviews in Economic Geology Vol 6B. Society of Economic Geologists,
Inc.
Stumm, W. and Morgan, J.J. 1981. Aquatic Chemistry. Second Edition. New York: John Wiley & Sons.
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APPENDIX F. SAMPLING AND ANALYSIS PLAN
GUIDANCE AND TEMPLATE
VERSION 2, PRIVATE ANALYTICAL SERVICES USED
R9QA/002.1
April, 2000
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGION 9
http://ndep.nv.gov/BCA/file/reid sap.pdf
This Sampling and Analysis Plan (SAP) guidance and template is based USEPA guidance as presented
http://ndep.nv.gov/BCA/file/reid_sap.pdf . It is intended assist organization in documenting the
procedural and analytical requirements for baseline and routine monitoring of surface water ground
water, soils, and biological samples. It has originally developed to characterize contaminated land but
has been modified here to address sampling, laboratory analysis, and quality control/quality assurance
for evaluation pre-mining, mining, and post mining hydrologic and biologic conditions. This guide is to
be used as a template. It provides item-by-item instructions for creating a SAP and includes example
language which can be used with or without modification.
1 INTRODUCTION
[This section should include a brief description of the project, including the history, problem to be
investigated, scope of sampling effort, and types of analyses that will be required. These topics will
be covered in depth later so do not include a detailed discussion here.]
1.1 SITE NAME OR SAMPLING AREA
[Provide the most commonly used name of the site or sampling area.]
Site or Sampling Area Location
[Provide a general description of the region, or district in which the site or sampling area is located.
Detailed sampling location information should be provided later in Section 2]
1.2 RESPONSIBLE ORGANIZATION
[Provide a description of the organization conducting the sampling.]
1.3 PROJECT ORGANIZATION
[Provide the name and phone number(s) of the person(s) and/or contractor working on the sampling
project as listed in the table. The table can be modified to include titles or positions appropriate to
the specific project. Delete personnel or titles not appropriate to the project]
Title/Responsibility Name Phone Number
Project Manager
Staff
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Quality Assurance Manager
Contractor (Company Name)
Contractor Staff
1.4 STATEMENT OF THE SPECIFIC PROBLEM
[In describing the problem, include historical, as well as recent, information and data that may be
relevant. List and briefly outline citizens' complaints, public agency inspections, and existing data.
Include sources of information if possible.]
2 BACKGROUND
This section provides an overview of the location of, previous investigations of, and the apparent
problem(s) associated with the site or sampling area. [Provide a brief description of the site or sampling
area, including chemicals used on the site, site history, past and present operations or activities that
may have contributed to the suspected contamination, etc.]
2.1 SITE OR SAMPLING AREA DESCRIPTION [FILL IN THE BLANKS.]
[Two maps of the area should be provided: the first (Figure 2.1), on a larger scale, should place the
area within its geographic region; the second (Figure 2.2), on a smaller scale, should mark the
sampling site or sampling areas within the local area. Additional maps may be provided, as necessary,
for clarity. Maps should include a North arrow, groundwater flow arrow (if appropriate), buildings or
former buildings, area to be mine, permit area, area to be disturbed, etc. If longitude or latitude
information is available, such as from a Global Positioning System (GPS), provide it. Sampling
locations can be shown in Figure 2.2.]. Example language is as follows:
The site or sampling area occupies [e.g., hectares or square meters] in a
[e.g., urban, commercial, industrial, residential, agricultural, or undeveloped] area. The site or sampling
area is bordered on the north by , on the west by , on the south by
, and on the east by . The specific location of the site or sampling
area is shown in Figure 2.2.
The second paragraph (or set of paragraphs) should describe historic and current on-site structures
and should be consistent with what is presented in Figure 2.2.
2.2 OPERATIONAL HISTORY
[As applicable, describe in as much detail possible (i.e., use several paragraphs) the past and present
activities at the site or sampling area. The discussion might include the following information:
A description of the owner(s) and/or operator(s) of the site or areas near the site, the
watershed of interest, the sampling area, etc. (present this information chronologically);
A description of past and current operations or activities that may have contributed to
suspected contamination of the sit;
A description of the processes involved in the operation(s) and the environmentally
detrimental substances, if any, used in the processes;
A description of any past and present waste management practices.
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If a waste site, were/are hazardous wastes generated by one or more of the processes
described earlier? If so, what were/are they, how and where were/are they stored on the site
or sampling area, and where were/are they ultimately disposed of? If an ecosystem, what
point and non-point sources which may have affected the river, stream, lake or watershed?]
2.3 PREVIOUS INVESTIGATIONS/REGULATORY INVOLVEMENT
[If applicable] [Summarize all previous sampling efforts at the site or sampling area. Include the
sampling date(s); name of the party (ies) that conducted the sampling; local, regional, or federal
government agency for which the sampling was conducted; a rationale for the sampling; the type of
media sampled (e.g., soil, sediment, water); laboratory methods that were used; and a discussion of
what is known about data quality and usability. The summaries should be presented in subsections
according to the media that were sampled (e.g., soil, water, etc.) and chronologically within each
medium. Attach reports or summary tables of results or include in appendices if necessary.]
2.4 GEOLOGICAL INFORMATION
[Groundwater sampling only][Provide a description of the hydrogeology of the area. Indicatethe
direction of groundwaterflow, if known.]
2.5 ENVIRONMENTAL AND/OR HUMAN IMPACT
[Discuss what is known about the possible and actual impacts of the possible environmental problem
on human health or the environment.]
3 PROJECT DATA QUALITY OBJECTIVES
Data Quality Objectives (DQOs) are qualitative and quantitative statements for establishing criteria for
data quality and for developing data collection designs.
3.1 PROJECT TASK AND PROBLEM DEFINITION
[Describe the purpose of the environmental investigation in qualitative terms and how the data will
be used. Generally, this discussion will be brief and generic. Include all measurements to be made on
an analyte specific basis in whatever medium (soil, sediment, water, etc.) is to be sampled. This
discussion should relate to how this sampling effort will support the specific decisions described in
Section 3.2.]
3.2 DATA QUALITY OBJECTIVES (DQOS)
Data quality objectives (DQOs) are quantitative and qualitative criteria that establish the level of
uncertainty associated with a set of data. This section should describe decisions to be made based on
the data and provide criteria on which these decisions will be made.
[Discuss Data Quality Objectives, action levels, and decisions to be made based on the data here.]
3.3 DATA QUALITY INDICATORS (DQIS)
Data quality indicators (accuracy, precision, completeness, representativeness, comparability, and
method detection limits) refer to quality control criteria established for various aspects of data
gathering, sampling, or analysis activity. In defining DQIs specifically for the project, the level of
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uncertainty associated with each measurement is defined. Definition of the different terms are provided
below:
Accuracy is the degree of agreement of a measurement with a known or true value. To
determine accuracy, a laboratory or field value is compared to a known or true concentration.
Accuracy is determined by such QC indicators as: matrix spikes, surrogate spikes, laboratory
control samples (blind spikes) and performance samples.
Precision is the degree of mutual agreement between or among independent measurements of a
similar property (usually reported as a standard deviation [SD] or relative percent difference
[RPD]). This indicator relates to the analysis of duplicate laboratory or field samples. An RPD of
<20%for water and <35%for soil, depending upon the chemical being analyzed, is generally
acceptable. Typically field precision is assessed by co-located samples, field duplicates, or field
splits and laboratory precision is assessed using laboratory duplicates, matrix spike duplicates, or
laboratory control sample duplicates).
Completeness is expressed as percent of valid usable data actually obtained compared to the
amount that was expected. Due to a variety of circumstances, sometimes either not all samples
scheduled to be collected can be collected or else the data from samples cannot be used (for
example, samples lost, bottles broken, instrument failures, laboratory mistakes, etc.). The
minimum percent of completed analyses defined in this section depends on how much
information is needed for decision making. Generally, completeness goals rise the fewer the
number of samples taken per event or the more critical the data are for decision making. Goals
in the 75-95% range are typical.
Representativeness is the expression of the degree to which data accurately and precisely
represent a characteristic of an environmental condition or a population. It relates bothto the
area of interest and to the method of taking the individual sample. The idea of
representativeness should be incorporated into discussions of sampling design.
Representativeness is best assured by a comprehensive statistical sampling design, but it is
recognized that is usually outside the scope of most one-time events. Most one time SAPs should
focus on issues related to judgmental sampling and why certain areas are included or not
included and the steps being taken to avoid either false positives or false negatives.
Comparability expresses the confidence with which one data set can be compared to another.
The use of methods from EPA or "Standard Methods" or from some other recognized sources
allows the data to be compared facilitating evaluation of trends or changes in a site, a river,
groundwater, etc. Comparability also refers to the reporting of data in comparable units so
direct comparisons are simplified (e.g., this avoids comparison ofmg/Lfor nitrate reported as
nitrogen to mg/L of nitrate reported as nitrate, or ppm vs. mg/L discussions).
Detection Limit(s) (usually expressed as method detection limits for all analytes or compounds of
interest for all analyses requested must be included in this section. These limits should be related
to any decisions that will be made as a result of the data collection effort. A critical element to
be addressed is how these limits relate to any regulatory or action levels that may apply.
DQI tables are available from the QA Office for most routinely ordered methods. These tables can be
attached to the SAP and referenced in this section. If an organization, its contractor, or its laboratory
wish to use different limits or acceptance criteria, the table should be modified accordingly. SOPs should
be included for methods not covered by the DQI tables or they can be submitted in lieu of the tables. Due
to resource constraints, generally only the DQI aspects of these SOPs will be evaluated.
[Provide or reference DQI tables here]
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3.4 DATA RE VIE WAND VALIDATION
This section should discuss data review, including what organizations or individuals will be responsible
for what aspects of data review and what the review will include.
[Discuss data review and data validation here including what organizations or individuals will be
responsible for what aspects of data review and what the review will include. This section should also
discuss how data that do not meet data quality objectives will be designated, flagged, or otherwise
handled. Possible corrective actions associated with the rejection of data, such as reanalysis,
resampling, no action but monitor the data more closely next quarter, etc., also need to be addressed]
3.5 DATA MANAGEMENT
[Provide a list of the steps that will be taken to ensure that data are transferred accurately from
collection to analysis to reporting. Discuss the measures that will be taken to review the data
collection processes, including field notes or field data sheets; to obtain and review complete
laboratory reports; and to review the data entry system, including its use in reports. A checklist is
acceptable.]
3.6 ASSESSMENT OVERSIGHT
[Describe the procedures which will be used to implement the QA Program. This would include
oversight by the Quality Assurance Manager or the person assigned QA responsibilities. Indicate how
often a QA review of the different aspects of the project, including audits of field and laboratory
procedures, use of performance samples, review of laboratory and field data, etc., will take place.
Describe what authority the QA Manager or designated QA person has to ensure that identified field
and analytical problems will be corrected and the mechanism by which this will be accomplished.]
4 SAMPLING RATIONALE
For each sampling event, the SAP must describe the sampling locations, the media to be sampled, and
the analytes of concern at each location. A rationale should then be provided justifying these choices.
The following sections are subdivided on a media specific basis among soil, sediment, water, and
biological media. Other media should be added as needed. This section is crucial to plan approval and
should be closely related to previously discussed DQOs.
4.1 SOIL SAMPLING
[Provide a general overview of the soil sampling event. Present a rationale for choosing each
sampling location at the site or sampling area and the depths at which the samples are to be taken, if
relevant. If decisions will be made in the field, provide details concerning the criteria that will be used
to make these decisions (i.e., the decision tree to be followed). List the analytes of concern at each
location and provide a rationale for why the specific chemical or group of chemicals (e.g., trace metals
etc) were chosen. Include sampling locations in Figure 2.2 or equivalent.]
4.2 SEDIMENT SAMPLING
[Provide a general overview of the sediment sampling event. Present a rationale for choosing each
sampling location at the site or sampling area and the depths or area of the river, stream or lake at
which the samples are to be taken, if relevant. If decisions will be made in the field, provide details
concerning the criteria that will be used to make these decisions (i.e., the decision tree to be
followed). List the analytes of concern at each location and provide a rationale for why the specific
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chemical or group of chemicals (e.g., trace metals) were chosen. Include sampling locations in Figure
2.2 or equivalent.]
4.3 WATER SAMPLING
[Provide a general overview of the water sampling event. For groundwater, describe the wells to be
sampled or how the samples will be collected (e.g., hydro punch), including the depths at which the
samples are to be taken. For surface water, describe the depth and nature of the samples to be
collected (fast or slow moving water, stream traverse, etc.). Present a rationale for choosing each
sampling location or sampling area. If decisions will be made in the field, provide details concerning
the criteria that will be used to make these decisions (i.e., the decision tree to be followed). List the
analytes of concern at each location and provide a rationale for why the specific chemical or group of
chemicals (e.g., trace metals) were chosen. For microbiological samples, discuss the types of bacterial
samples being collected. Include sampling locations in Figure 2.2 or equivalent.]
4.4 BIOLOGICAL SAMPLING
[For each of the two types of events identified, provide a general overview of the biological sampling
event. Present a rationale for choosing each sampling location at the site or sampling area, including
the parameters of interest at each location. If decisions will be made in the field, provide details
concerning the criteria that will be used to make these decisions (i.e., the decision tree to be
followed).
4.4.1.Biological Samples for Chemical Analysis
[For sampling where flora or fauna will be analyzed for the presence of a chemical (e.g. fish collected
for tissue analysis), explain why the specific chemical or group of chemicals (e.g., metals,
organochlorine pesticides, etc.) is included. List the types of samples to be collected (e.g., fish, by
species or size, etc.) and explain how these will be representative. Include sampling locations in
Figure 2.2 or equivalent]
4.4.2.Biological Sample for Species Identification and Habitat Assessment
[If the purpose of the sampling is to collect insects or other invertebrates or to make a habitat
assessment, a rationale for the sampling to take place should be provided. For example: what species
are of interest and why?]
5 REQUEST FOR ANALYSES
This section should discuss analytical support for the project depending on several factors including the
analyses requested, analytes of concern, turnaround times, available resources, available laboratories,
etc. If samples will be sent to more than one organization it should be clear which samples go to which
laboratory. Field analyses for pH, conductivity, turbidity, or other field tests should be discussed in the
sampling section. Field measurements in a mobile laboratory should be discussed here and
differentiated from samples to be sent to a fixed laboratory. Field screening tests (for example,
immunoassay tests) should be discussed in the sampling section, but the confirmation tests should be
discussed here and the totals included in the tables.
[Complete the following narrative subsection concerning the analyses for each matrix. In addition, fill
in Tables 5-1 through 5-5, as appropriate. Each table must be completed to list analytical parameters
for each type of sample. Include information on container types, sample volumes, preservatives,
special handling and analytical holding times for each parameter. Quality Control (QC) samples
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(blanks, duplicates, splits, and laboratory QC samples, see Section 10 for description) should be
indicated in the column titled "Special Designation." The extra volume needed for laboratory QC
samples (for water samples only) should be noted on the table. The tables provided do not have to be
used, but the critical information concerning the number of samples, matrix, analyses requested and
QC sample identification should be provided in some form. The selected analyses must be consistent
with earlier discussion concerning DQOs and analytes of concern. DQI information for the methods
should be discussed in Section 8 on quality control requirements.]
5.1 ANALYSES NARRATIVE
[Fill in the blanks. Provide information for each analysis requested. Delete the information below as
appropriate. Include any special requests, such as fast turn-around time (2 weeks or less), specific QC
requirements, or modified sample preparation techniques in this section.]
5.2 ANALYTICAL LABORATORY
[ A QA Plan from the laboratory or SOPs for the methods to be performed must accompanythe SAP.]
6 FIELD METHODS AND PROCEDURES
In the general introductory paragraph to this section, there should be a description of the methods and
procedures that will be used to accomplish the sampling goals, e.g., "...collect soil, sediment and water
samples." It should be noted that personnel involved in sampling must wear clean, disposable gloves of
the appropriate type. The sampling discussion should track the samples identified in Section 4.0 and
Table(s) 5-1, 5-2, 5-3, or 5-4. A general statement should be made that refers to the sections containing
information about sample tracking and shipping (Section 7). Provide a description of sampling
procedures. Example procedures are provided below, but the organization's own procedures can be used
instead. In that case, attach a copy of the applicable SOP.
6.1 FIELD EQUIPMENT
6.1.1.List of Equipment Needed
[List all the equipment that will be used in the field to collect samples, including decontamination
equipment, if required. Discuss the availability of back-up equipment and spare parts.]
6.1.2.Calibration of Field Equipment
[Describe the procedures by which field equipment is prepared for sampling, including calibration
standards used, frequency of calibration and maintenance routines. Indicate where the equipment
maintenance and calibration record(s) for the project will be kept.]
6.2 FIELD SCREENING
In some projects a combination of field screening using a less accurate or sensitive method may be used
in conjunction with confirmation samples analyzed in a fixed laboratory. This section should describe
these methods or reference attached SOPs. Analyses such as soil gas or immunoassay kits are two
examples.
[Describe any field screening methods to be used on the project here including how samples will be
collected, prepared, and analyzed in the field. Include in an appendix, as appropriate, SOPs covering
these methods. Confirmation of screening results should also be described. The role of the field
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screening in decision making for the site should also be discussed here if it has not been covered
previously.]
6.3 SOIL
6.3.1.Surface Soil Sampling
[Use this subsection to describe the collection of surface soil samples that are to be collected within
15-30 centimeters of the ground surface. Specify the method (e.g., hand trowels) that will be used to
collect the samples and use the language below or reference the appropriate sections of a Soil
Sampling SOP.]
[If exact soil sampling locations will be determined in the field, this should be stated. The criteria that
will be used to determine sampling locations, such as accessibility, visible signs of potential
contamination (e.g., stained soils, location of former fuel storage tank, etc.), and topographical
features which may indicate the location of hazardous substance disposal (e.g., depressions that may
indicate a historic excavation) should be provided.]
Exact soil sampling locations will be determined in the field based on accessibility, visible signs of
potential contamination (e.g., stained soils), and topographical features which may indicate location of
hazardous substance disposal (e.g., depressions that may indicate a historic excavation). Soil sample
locations will be recorded in the field logbook as sampling is completed. A sketch of the sample location
will be entered into the logbook and any physical reference points will be labeled. If possible, distances
to the reference points will be given.
[If surface soil samples are to be analyzed for organic (non volatile compounds and other analytes, use
this paragraph; otherwise delete.]
Surface soil samples will be collected as grab samples (independent, discrete samples) from a depth of 0
to centimeters below ground surface (bgs). Surface soil samples will be collected using a stainless
steel hand trowel. Samples to be analyzed for volatile organic compounds will be collected first (see
below). Samples to be analyzed for [List all analytical methods for soil samples except for
volatile organic compounds] will be placed in a sample-dedicated disposable pail and homogenized with
a trowel. Material in the pail will be transferred with a trowel from the pail to the appropriate sample
containers. Sample containers will be filled to the top, taking care to prevent soil from remaining in the
lid threads prior to being closed to prevent potential contaminant migration to or from the sample.
Sample containers will be closed as soon as they are filled, chilled to 4°C if appropriate, and processed
for shipment to the laboratory.
[If surface soil samples are to be analyzed for volatile organic compounds (VOCs), use this paragraph;
otherwise delete.]
Surface soil samples for VOC analyses will be collected as grab samples (independent, discrete samples)
from a depth of 0 to [centimeters or meters] below ground surface (bgs). Surface soil samples will
be collected using a 5 gram Encore sampling device, and will be collected in triplicate. Samples will be
sealed using the Encore sampler and a zip lock bag or else transferred directly from the sampler into a
VOA vial containing either 10 mLs of methanol or sodium bisulfate solution. Sample containers will be
closed as soon as they are filled, chilled immediately to 4°C before wrapping them in bubble wrap, and
processed them for shipment to the laboratory.
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[For surface soil samples which are not to be analyzed for volatile compounds, use this paragraph;
otherwise delete.]
Surface soil samples will be collected as grab samples (independent, discrete samples) from a depth of 0
to [centimeters or meters] below ground surface (bgs). Surface soil samples will be collected using a
stainless steel hand trowel. Samples will be placed in a sample-dedicated disposable pail and
homogenized with a trowel. Material in the pail will be transferred with a trowel from the pail to the
appropriate sample containers. Sample containers will be filled to the top, taking care to prevent soil
from remaining in the lid threads prior to being closed to prevent potential contaminant migration to or
from the sample. Sample containers will be closed as soon as they are filled, chilled if appropriate, and
processed for shipment to the laboratory.
6.3.2.Subsurface Soil Sampling
[Use this subsection for subsurface soil samples that are to be collected 30 cm or more below the
surface. Specify the method (e.g., hand augers) that will be used to access the appropriate depth and
then state the depth at which samples will be collected and the method to be used to collect and then
transfer samples to the appropriate containers or reference the appropriate sections of a Soil
Sampling SOP. If SOPs are referenced, they should be included in an Appendix.]
[If exact soil sampling locations will be determined in the field, this should be stated. The criteria that
will be used to determine sampling locations, such as accessibility, visible signs of potential
contamination (e.g., stained soils), and topographical features which may indicate the location of
hazardous substance disposal (e.g., depressions that may indicate a historic excavation) should be
provided. There should also be a discussion concerning possible problems, such as subsurface refusal]
[Include this paragraph first if exact sampling locations are to be determined in the field; otherwise
delete.]
Exact soil sampling locations will be determined in the field based on accessibility, visible signs of
potential contamination (e.g., stained soils), and topographical features which may indicate location of
hazardous substance disposal (e.g., depressions that may indicate a historic excavation). Soil sample
locations will be recorded in the field logbook as sampling is completed. A sketch of the sample location
will be entered into the logbook and any physical reference points will be labeled. If possible, distances
to the reference points will be given.
[If subsurface soil samples are to be analyzed for volatile compounds, use this paragraph; otherwise
delete.]
Samples to be analyzed for volatile organic compounds will be collected first. Subsurface samples will
be collected by boring to the desired sample depth using
[whatever method is appropriate or available]. Once the desired sample depth is
reached, soil samples for VOC analyses will be collected as independent, discrete samples. Surface soil
samples will be collected using a 5 gram Encore sampling device, and will be collected in triplicate.
Samples will be sealed using the Encore sampler and a zip lock bag or else transferred directly from the
sampler into a VOA vial containing either 10 mLs of methanol or sodium bisulfate solution. Sample
containers will be closed as soon as they are filled, chilled immediately to 4°C before wrapping them in
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bubble wrap, and processed for shipment to the laboratory. [If subsurface soil samples are being
collected for other than
volatile organic compounds, use these paragraphs; otherwise delete.]
Subsurface samples will be collected by boring to the desired sample depth using
[whatever method is appropriate or available]. Once the desired
sample depth is reached, the [hand- or power-operated device,
such as a shovel, hand auger, trier, hollow-stem auger or split-spoon sampler] will be inserted into the
hole and used to collect the sample. Samples will be transferred from the
[sampling device] to a sample-dedicated disposable pail and homogenized with a trowel.
Material in the pail will be transferred with a trowel from the pail to the appropriate sample containers.
Sample containers will be filled to the top taking care to prevent soil from remaining in the lid threads
prior to being sealed to prevent potential contaminant migration to or from the sample. After sample
containers are filled, they will be immediately sealed, chilled if appropriate, and processed for shipment
to the laboratory. [Include this as the final paragraph regardless of the analyses for subsurface soil
samples.] Excess set-aside soil from the above the sampled interval will
then be repacked into the hole.
6.4 SEDIMENT SAMPLING
[Use this subsection if sediment samples are to be collected. Specify the method (e.g., dredges) that
will be used to collect the samples and at what depth samples will be collected. Describe how
samples will be homogenized and the method to be used to transfer samples to the appropriate
containers. If a SOPwill be followed rather than the language provided, the SOP should be referenced
and included in the appendix]
[If exact sediment sampling locations will be determined in the field, this should be stated. Describe
where sediment samples will be collected, e.g., slow moving portions of streams, lake bottoms,
washes, etc.]
Exact sediment sampling locations will be determined in the field, based on
[Describe the criteria to be used to determine sampling
locations]. Care will be taken to obtain as representative a sample as possible. The sample will be taken
from areas likely to collect sediment deposits, such as slow moving portions of streams or from
thebottom of the lake at a minimum depth of .6 meters. Sediment samples will be collected from the
well bottom at a depth of inches using a pre-cleaned sampler.
[The final paragraph describes sample homogenization, especially important if the sample is to be
separated into solid and liquid phases, and container filling. Include this paragraph, or a modified form
of it, for all sediment sampling. It is assumed that sediment samples will not be analyzed for
volatilecompounds. If sediment is to be analyzed for volatile organic compounds, the samples to be
analyzed for volatile compounds should not be homogenized, but rather transferred directly from the
sampler into the sample container. If feasible, an Encore sampling device should be used.]
Material in the sampler will be transferred to a sample-dedicated disposable pail and homogenized with
a trowel. Material from the pail will be transferred with a trowel from the bucket to the appropriate
sample containers. Sample containers will be filled to the top taking care to prevent soil from remaining
in the lid groves prior to being sealed in order to prevent potential contamination migration to or from
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the sample containers. After sample containers are filled, they will be immediately sealed, chilled if
appropriate, and processed for shipment to the laboratory.
6.5 WATER SAMPLING
6.5.1.Surface Water Sampling
[Use this subsection if samples are to be collected in rivers, streams, lakes and reservoirs, or from
standing water in runoff collection ponds, gullies, drainage ditches, etc. Describe thesampling
procedure, including the type of sample (grab or composite - see definitions below), sample bottle
preparation, and project-specific directions for taking the sample. State whether samples will be
collected for chemical and/or microbiological analyses. Alternatively, reference theappropriate
sections of attached SOPs.]
Grab: Samples will be collected at one time from one location. The sample should be taken from
flowing, not stagnant water, and the sampler should be facing upstream in the middle of the
stream. Samples will be collected by hand or with a sample bottle holder. For samples taken at a single
depth, the bottle should be uncapped and the cap protected from contamination. The bottle should be
plunged into the water mouth down and filled 15 to 30 centimeters below the surface of the water. If it
is important to take samples at depths, special samplers (e.g., Niskin or Kemmerer Depth Samplers) may
be required. After filling the bottle(s), pour out some sample leaving a headspace of 2.5-5cm. For
microbiological samples, bottles and caps must be sterile. If sampling of chlorinated water is
anticipated, sodium thiosulfate at a concentration of 0.1 mL of a 10% solution for each 125 mL (4 oz) of
sample volume must be put into the bottle before it is sterilized. Time Composite: Samples are collected
over a period of time, usually 24 hours. If a composite sample is required, a flow- and time-proportional
automatic sampler should be positioned to take samples at the appropriate location in a manner such
that the sample can be held at 4oC for the duration of the sampling.
Spatial Composite: Samples are collected from different representative positions in the water body and
combined in equal amounts. A Churn Splitter or equivalent device will be used to ensure that the
sample is homogeneously mixed before the sample bottles are filled. Volatile organic compound
samples will be
collected as discrete samples and not composited. [If exact surface water sample locations will be
determined in the field, this should be stated. Describe the criteria that will be used to determine
where surface water samples will be collected.]
6.5.2.Groundwater Sampling
[This subsection contains procedures for water level measurements, well purging, and well sampling.
Relevant procedures should be described under this heading with any necessary site-specific
modifications. Alternatively, reference appropriate SOP(s).]
6.5.2.1. Water-Level Measurements
[The following language may be used as is or modified to meet project needs.]
All field meters will be calibrated according to manufacturer's guidelines and specifications before and
after every day of field use. Field meter probes will be decontaminated before and after use at each
well. If well heads are accessible, all wells will be sounded for depth to water from top of casing and
total well depth prior to purging. An electronic sounder, accurate to the nearest +/- cm , will be used to
measure depth to water in each well. When using an electronic sounder, the probe is lowered down the
casing to the top of the water column, the graduated markings on the probe wire or tape are used to
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measure the depth to water from the surveyed point on the rim of the well casing. Typically, the
measuring device emits a constant tone when the probe is submerged in standing water and most
electronic water level sounders have a visual indicator consisting of a small light bulb or diode that turns
on when the probe encounters water. Total well depth will be sounded from the surveyed top of casing
by lowering the weighted probe to the bottom of the well. The weighted probe will sink into silt, if
present, at the bottom of the well screen. Total well depths will be measured by lowering the weighted
probe to the bottom of the well and recording the depth to the nearest centimeter. Water-level
sounding equipment will be decontaminated before and after use in each well. Water levels will be
measured in wells which have the least amount of known contamination first. Wells with known or
suspected contamination will be measured last.
6.5.2.2. Purging
[Describe the method that will be used for well purging (e.g., dedicated well pump, bailer, hand
pump). Reference the appropriate sections in the Ground Water SOP and state in which Appendix the
SOP is located.]
[VERSION A]
All wells will be purged prior to sampling. If the well casing volume is known, a minimum of three casing
volumes of water will be purged using the dedicated well pump.
[VERSION B]
All wells will be purged prior to sampling. If the well casing volume is known, a minimum of three casing
volumes of water will be purged using a hand pump, submersible pump, or bailer, depending on the
diameter and configuration of the well. When a submersible pump is used for purging, clean flexible
Teflon tubes will be used for groundwater extraction. All tubes will be decontaminated before use in
each well. Pumps will be placed 0.66 to 1 meter from the bottom of the well to permit reasonable
drawdown while preventing cascading conditions.
[VERSION C]
All wells will be purged prior to sampling. If the well casing volume is known, a minimum of three casing
volumes of water will be purged using the dedicated well pump, if present, or a bailer, hand pump, or
submersible pump depending on the diameter and configuration of the well. When a submersible pump
is used for purging, clean flexible Teflon tubes will be used for groundwater extraction. All tubes will be
decontaminated before use in each well. Pumps will be placed 0.66 to 1 meter from the bottom of
thewell to permit reasonable draw down while preventing cascading conditions.
[ALL VERSIONS - to be included in all sample plans]
Water will be collected into a measured bucket to record the purge volume. Casing volumes will be
calculated based on total well depth, standing water level, and casing diameter.
It is most important to obtain a representative sample from the well. Stable water quality parameter
(temperature, pH and specific conductance) measurements indicate representativesampling is
obtainable. Water quality is considered stable if for three consecutive readings:
Temperature range is no more than +1/C;
pH varies by no more than 0.2 pH units;
Specific conductance readings are within 10% of the average.
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The water in which measurements were taken will not be used to fill sample bottles. If the well casing
volume is known, measurements will be taken before the start of purging, in the middle of purging, and
at the end of purging each casing volume. If the well casing volume is NOT known, measurements will
be taken every 2.5 minutes after flow starts. If water quality parameters are not stable after 5 casing
volumes or 30 minutes, purging will cease, which will be noted in the logbook, and ground water
samples will be taken. The depth to water, water quality measurements and purge volumes will be
entered in the logbook. If a well dewaters during purging and three casing volumes are not purged, that
well will be allowed to recharge up to 80% of the static water column and dewatered once more. After
water levels have recharged to 80% of the static water column, groundwater samples will be collected.
6.5.2.3. Well Sampling
[Describe the method that will be used to collect samples from wells. (This will probably be the same
method as was used to purge the wells.) Specify the sequence for sample collection (e.g., bottles for
volatile analysis will be filled first, followed by semivolatiles, etc.). State whether samples for metals
analysis will be filtered or unfiltered. Include the specific conditions, such as turbidity, that will
require samples to be filtered. Alternatively, reference the appropriate sections in the Ground Water
SOP and state in which Appendix the SOP is located.]
ALL VERSIONS - to be included in all sample plans]
At each sampling location, all bottles designated for a particular analysis (e.g., trace metals) will be filled
sequentially before bottles designated for the next analysis are filled. If a duplicate sample is to be
collected at this location, all bottles designated for a particular analysis for both sample designations will
be filled sequentially before bottles for another analysis are filled. Groundwater samples will be
transferred from the tap directly into the appropriate sample containers with preservative, if required,
chilled if appropriate, and processed for shipment to the laboratory. When transferring samples, care
will be taken not to touch the tap to the sample container. [If samples are to be collected for volatiles
analysis, the following paragraph should be added; otherwise delete.]
Samples for volatile organic compound analyses will be collected using a low flow sampling device. A
[specify type of pump] pump will be used at a flow rate of . Vials for volatile organic compound
analysis will be filled first to minimize the effect of aeration on the water sample. A test vial will befilled
with sample, preserved with hydrochloric acid (HCI) and tested with pH paper to determine the amount
of preservative needed to lower the pH to less than 2. The appropriate amount of HCI will then be
added to the sample vials prior to the addition of the sample. The vials will be filled directly from the
tap and capped. The vial will be inverted and checked for air bubbles to ensure zero headspace. If a
bubble appears, the vial will be discarded and a new sample will be collected. [If some samples for
metals (or other) analysis are to be filtered, depending upon sample turbidity, the following paragraph
should be added; otherwise delete.]
After well purging and prior to collecting groundwater samples for metals analyses, the turbidity of the
groundwater extracted from each well will be measured using a portable turbidity meter. A small
quantity of groundwater will be collected from the well using the tap and a small amount of water will
be transferred to a disposable vial and a turbidity measurement will be taken. The results of the
turbidity measurement will be recorded in the field logbook. The water used to measure turbidity will
bediscarded after use. If the turbidity of the groundwater from a well is above 5 Nephelometric
Turbidity Units (NTUs), both a filtered and unfiltered sample will be collected. A [specify size]-micron
filter will be used to remove larger particles that have been entrained in the water sample. A sample-
dedicated Teflon tube will be attached to the tap closest to the well head. The filter will be attached to
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the outlet of the Teflon tube. A clean, unused filter will be used for each filtered sample collected.
Groundwater samples will be transferred from the filter directly into the appropriate sample containers
with a preservative and processed for shipment to the laboratory. When transferring samples, care will
be taken not to touch the filter to the sample container. After the filtered sample has been collected,
the Teflon tube and filter will be removed and an unfiltered sample will be collected. A sample number
appended with an "Fl" will represent a sample filtered with a 5-micron filter.
[If samples are to be filtered for metals (or other) analysis regardless of sample turbidity, the
following paragraph should be added; otherwise delete.]
Samples designated for metals analysis will be filtered. A 5-micron filter will be used to remove larger
particles that have been entrained in the water sample. A sample-dedicated Teflon tube will be
attached to the tap closest to the well head. The filter will be attached to the outlet of the Teflon tube.
Aclean, unused filter will be used for each filtered sample collected. Groundwater samples will be
transferred from the filter directly into the appropriate sample containers to which preservative has
been added and processed for shipment to the laboratory. When transferring samples, care will be
taken not to touch the filter to the sample container. After the filtered sample has been collected, the
Teflon tube and filter will be removed and an unfiltered sample will be collected. A sample number
appended with an "Fl" will represent a sample filtered with a 5-micron filter.
6.6 BIOLOGICAL SAMPLING
For the purpose of this guidance, biological sampling falls into two categories. Other types of biological
sampling events should be discussed with the QA Office to determine what type of planning document is
needed. The two types addressed in this guidance are biological samples being collected for chemical
analysis and biological samples for the purpose of assessing species diversity. If the latter type of
sampling is planned, a quality assurance project plan may be a more appropriate document. Samples
collected for microbiological analyses should be discussed under water sampling.
6.6.1.Biological Sampling for Chemical Analysis
[The two most common types of biological samples being collected for chemical analysis are fish and
foliage samples. The following paragraphs are suggested, but field circumstances may dictate
alternative collection procedures; if no biological samples will be collected, put "not applicable" by
these sections. If a SOP will be followed, include it in the appendix.]
6.6.1.1. Fish Samples
[Use if collecting fish, otherwise delete. Alternatively, reference appropriate SOPs.] Fish will be collected
using [name method; nets, electroshocking, lines, etc.]. Three fish of each
type or species [indicate type of fish, e. g., trout, catfish, etc.] will be
collected. Efforts will be made to collect fish of approximately the same size and maturity by checking
to make sure that lengths and weights do not differ by more than 20%. Once collected the
[indicate whether whole fish or filets] will be frozen, wrappedin
aluminum foil and plastic bags and sent to a laboratory.
[If samples are to be composited by the laboratory, also indicate that in this section.]
6.6.1.2. Foliage Samples
[Use if collecting foliage samples, otherwise delete. This section may require considerable
modification because of the potential diversity of projects involving plants sampling.]
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A representative foliage sample will be collected from the target area. It is recommended that a
statistical approach be used, if possible. The following plants will be collected: ,
, and . These plants are being collected because they are were most likely
affected by chemicals used in the area. Only foliage showing visible signs of stress or damage will be
collected. Stems and twigs will be discarded; leaves only will be collected. The same type of leaf
material [Describe material, mature leaves, young shoots, etc.] will be obtained from each plant type.
Provided contamination is uniform, material will be composited from several plants to yield a total of
about [specify quantity] pound(s) of material. Control samples will also be collected from a nearby
unaffected area [Describe area], if available. Latex gloves will be worn during the collection of all
samples. Samples will be stored in [describe container, plastic bags, bottles, etc.] and brought to the
laboratory as soon as possible to prevent sample deterioration.
6.6.2.Biological Sampling for Species Assessment
[Describe the collection of insects, other invertebrates, or other types of biological samples here.
Reference or attach appropriate protocols to support the sampling effort]
6.7 DECONTAMINATION PROCEDURES
[Specify the decontamination procedures that will be followed if non-dedicated sampling equipment
is used. Alternatively, reference the appropriate sections in the organization's Decontamination
Standard Operating Procedure.]
The decontamination procedures that will be followed are in accordance with approved procedures.
Decontamination of sampling equipment must be conducted consistently as to assure the quality of
samples collected. All equipment that comes into contact with potentially contaminated soil or water
will be decontaminated. Disposable equipment intended for one-time use will not be decontaminated,
but will be packaged for appropriate disposal. Decontamination will occur prior to and after each use of
a piece of equipment. All sampling devices used, including trowels and augers, will be steam-cleaned or
decontaminated according to the following decontamination procedures:
[Use the following decontamination procedures, if samples are collected for organic analyses only;
otherwise delete.]
Non-phosphate detergent and tap water wash, using a brush if necessary.
Tap-water rinse.
Deionized/distilled water rinse.
Pesticide-grade solvent (reagent grade hexane) rinse in a decontamination bucket.
Deionized/distilled water rinse (twice)
[Use the following decontamination procedures if samples are collected for inorganic (metals)
analyses only, otherwise delete.]
Non-phosphate detergent and tap water wash, using a brush if necessary.
Tap-water rinse.
0.1 N nitric acid rinse.
Deionized/distilled water rinse (twice).
[Use the following decontamination procedures if samples are collected for both organic and
inorganic analyses, otherwise delete.]
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Non-phosphate detergent and tap water wash, using a brush if necessary.
Tap-water rinse.
0.1 N nitric acid rinse.
Deionized/distilled water rinse.
Pesticide-grade solvent (reagent grade hexane) rinse in a decontamination bucket.
Deionized/distilled water rinse (twice).
Equipment will be decontaminated in a predesignated area on pallets or plastic sheeting, and clean
bulky equipment will be stored on plastic sheeting in uncontaminated areas. Cleaned small equipment
will be stored in plastic bags. Materials to be stored more than a few hours will also be covered.
[NOTE: A different decontamination procedure may be used; but if so, a rationale for using the
different approach should be provided.]
7 SAMPLE CONTAINERS. PRESERVATION AND STORAGE
[This section requires a reference to the types of bottles to be used, preparation and preservatives to
be added. The organization responsible for adding preservatives should be named. If the information
is provided in the request for analyses tables, reference them in the appropriate section below.]
The number of sample containers, volumes, and materials are listed in Section 5.0. The containers are
pre-cleaned and will not be rinsed prior to sample collection. Preservatives, if required, will be added by
[name of agency/organization doing the sampling] to the containers prior to shipment of the
samples to the laboratory.
7.1 SOIL SAMPLES
[If soil samples are to be collected, specify the analyses that will be performed. Use the language
below or reference the appropriate sections in the Preservation SOP and state in which Appendix the
SOP is located.]
[Include this subsection if collecting soil samples; otherwise delete.]
[If requested analyses include analyses other than volatile organic compounds or metals, include this
paragraph; otherwise delete.]
Soil samples for [Include all requested analysis(es), e.g., Pesticides, Semivolatile
Organic Compounds] will be homogenized and transferred from the sample-dedicated homogenization
pail into 8-ounce (oz), wide-mouth glass jars using a trowel. For each sample, one 8-oz wide-mouth
glass jar will be collected for each laboratory. Alternatively, sample will be retained in the brass sleeve
in which collected until sample preparation begins. The samples will be chilled to 4/C immediately upon
collection.
[If requested analyses include volatile organic compounds, include this paragraph; otherwise delete.]
VOLATILE ORGANIC COMPOUNDS. Soil samples to be analyzed for volatile organic compounds will be
stored in their sealed Encore samplers for no more than two days prior to analysis. Frozen Encore
sampler samples will be stored for no more than 4 days prior to analysis. If samples are preserved by
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ejecting into either methanol or sodium bisulfate solution the holding time is two weeks. Preserved
samples will be chilled to 4/C immediately upon collection.
[If requested analyses include metals, include this paragraph; otherwise delete.]
METALS. Surface soil samples to be analyzed for metals will be homogenized and transferred from the
sample-dedicated homogenization pail into 8-oz, wide-mouth glass jars. For each sample, one 8-oz glass
jar will be collected for each laboratory. Samples will not be chilled. Subsurface samples will be
retained in their original brass sleeves or other container unless transferred to bottles.
7.2 SEDIMENT SAMPLES
[If sediment samples are to be collected, specify the analyses that will be performed. Use the
language below or reference the appropriate sections in a Preservation SOP and state in which
Appendix the SOP is located.]
[If requested analyses include analyses other than volatile organic compounds or metals, include this
paragraph; otherwise delete.]
[Include all requested analysis(es), e.g., Pesticides, Semivolatile Organic Compounds].
Sediment samples will be homogenized and transferred from the sample-dedicated homogenization pail
into 8-oz wide-mouth glass jars. For each sample, one 8-oz glass jar will be collected for each
laboratory.
The samples will be chilled to 4/C immediately upon collection.
[If requested analyses include volatile organic compounds, include this paragraph; otherwise delete.]
VOLATILE ORGANIC COMPOUNDS. Sediment samples to be analyzed for volatile organic compounds
will be stored in their sealed Encore samplers for no more than two days prior to analysis. Frozen
Encore sampler samples will be stored for no more than 4 days prior to analysis. If samples are
preserved by ejecting into either methanol or sodium bisulfate solution the holding time is two weeks.
Preserved samples will be chilled to 4/C immediately upon collection.
[If requested analyses include metals, include this paragraph; otherwise delete.]
METALS. Sediment samples, with rocks and debris removed, which are to be analyzed for metals will be
homogenized and transferred from the sample-dedicated homogenization pail into 8-oz, wide-mouth
glass jars. For each sample, one 8-oz glass jar will be collected for each laboratory. Samples will not be
chilled.
7.3 WATER SAMPLES
[If water samples are to be collected, specify the analyses that will be performed. Use the language
below or else reference the appropriate sections in a Preservation SOP and state in which Appendix
the SOP is located.]
[Include this subsection if collecting water samples; otherwise delete.]
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Depending on the type of analysis (organic or inorganic) requested, and any other project-specific
analytical requirements, sample bottles should be plastic (inorganics) or glass (organics), pre-cleaned
(general decontamination procedures) or low-detection level pre-cleaned (extensive decontamination
procedures).
[Describe the type of bottles that will be used for the project, including the cleaning procedures that
will be followed to prepare the bottles for sampling.]
[If requested analyses do not require preservation, include this paragraph; otherwise delete. A
separate paragraph should be included for each bottle type.]
[Include all requested analysis(es), e.g., Anions, Pesticides, Semivolatile Organic
Compounds]. Low concentration water samples to be analyzed for [Specify
analysis(es), e.g., Semivolatile Organic Compounds] will be collected in [Specify bottle
type, e. g., l-liter(L) amber glass bottles]. No preservative is required for these samples. The samples
will be chilled to 4/C immediately upon collection. Two bottles of each water sample are required for
each laboratory.
[If requested analyses include volatile organic compounds, include this paragraph; otherwise delete.]
VOLATILE ORGANIC COMPOUNDS. Low concentration water samples to be analyzed for volatile organic
compounds will be collected in 40-mL glass vials. 1:1 hydrochloric acid (HCI) will be added to the vial
prior to sample collection. During purging, the pH will be measured using a pH meter to test at least one
vial at each sample location to ensure sufficient acid is present to result in a pH of less than 2. The
tested vial will be discarded. If the pH is greater than 2, additional HCI will be added to the sample vials.
Another vial will be pH tested to ensure the pH is less than 2. The tested vial will be discarded. The vials
will be filled so that there is no headspace. The samples will be chilled to 4/C immediately upon
collection. Three vials of each water sample are required for each laboratory.
[If requested analyses include metals, include this paragraph; otherwise delete.]
METALS. Water samples collected for metals analysis will be collected in 1L polyethylene bottles. The
samples will be preserved by adding nitric acid (HNO3) to the sample bottle. The bottle will be capped
and lightly shaken to mix in the acid. A small quantity of sample will be poured into the bottle cap
wherethe pH will be measured using pH paper. The pH must be <2. The sample in the cap will be
discarded, and the pH of the sample will be adjusted further if necessary. The samples will be chilled to
4/C immediately upon collection. One bottle of each water sample is required for each laboratory.
GENERAL CHEMISTRY (WATER QUALITY) PARAMETERS. Water samples collected for water quality
analysis [Specify what parameters are included. Examples include (but are not limited to) anions
(nitrate-N, nitrite-N, sulfate, phosphate), total phosphorus, ammonia-N, total dissolved solids, total
suspended solids, alkalinity (may include carbonate, and/or bicarbonate), hardness, cyanide, MBAS
(methylene blue active substances), etc.], will be collected in [Specify size of container] polyethylene
bottles. The [Specify analysis] samples will be preserved by adding [Describe preservative appropriate
to each sample type] to the sample bottle. The [Specify analysis] samples will not be preserved. If
preservative is added, the bottle will be capped and lightly shaken to mix in the preservative. Where the
preservative affects the pH, a small quantity of sample will be poured into the bottle cap where the pH
will be measured using pH paper. The pH must be within the appropriate range. The sample in the cap
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will be discarded, and the pH of the sample will be adjusted further if necessary. Samples will be chilled
to 4/C immediately upon collection. Samples from each location that require the same preservative will
be placed in the same bottle if being analyzed by the same laboratory.
7.4 BIOLOGICAL SAMPLES
[If biological samples are to be collected, specify the analyses that will be performed. Use the
language below or reference the appropriate sections in a Preservation SOP and state in which
Appendix the SOP is located.]
7.4.1.Fish Samples
Fish (whole or fillets) will be wrapped in aluminum foil, labeled, and placed in individual zip lock bags.
The samples will be frozen as quickly as possible and shipped using dry ice to maintain the frozen state.
7.4.2.Foliage Samples
[Describe the containers that will be used for the project. Usually foliage samples are collected in
clean zip lock bags, but bottles or other containers can be used. Paper bags are not recommended.]
For foliage samples, samples will be collected in a large zip Lock bag. A self adhesive label will be placed
on each bag and the top sealed with a custody seal
7.4.3.Biological Sampling for Species Assessment
[Describe the containers in which macroinvertebrates, insects and other biological samples will be
stored. If a fixation liquid will be used, it should be described as well. This section should also discuss
any special handling procedures which must be followed to minimize damage to the specimens.]
8 DISPOSAL OF RESIDUAL MATERIALS
[This section should describe the type(s) of investigation- derived wastes (IDW) that will be generated
during this sampling event. IDW may not be generated in all sampling events, in which case this
section would not apply. Use the language below or reference the appropriate sections in a Disposal
of Residual Materials SOP and state in which Appendix the SOP is located. Depending upon site-
specific conditions and applicable federal, state, and local regulations, other provisions for IDW
disposal may be required. If any analyses of IDW are required, these should be discussed. If IDW are
to be placed in drums, labeling for the drums should be discussed in this section.]
In the process of collecting environmental samples at the [site or sampling area name] during
the site investigation (SI) [or name of other investigation], the [name of your
organization/agency] sampling team will generate different types of potentially contaminated IDW
thatinclude the following:
Used personal protective equipment (PPE).
Disposable sampling equipment.
Decontamination fluids[lnclude this bullet when sampling soils; otherwise delete.]
Soil cuttings from soil borings [Include this bullet when sampling groundwater; otherwise
delete.]
Purged groundwater and excess groundwater collected for sample container filling.
[The following bullet is generally appropriate for site or sampling areas with low levels of
contamination or for routine monitoring. If higher levels of contamination exist at the site or
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sampling area, other disposal methods (such as the drumming of wastes) should be used to dispose of
used PPE and disposable sampling equipment.]
Used PPE and disposable equipment will be double bagged and placed in a municipal refuse
dumpster. These wastes are not considered hazardous and can be sent to a municipal landfill.
Any PPE and disposable equipment that is to be disposed of which can still be reused will be
rendered inoperable before disposal in the refuse dumpster. [Include this bullet if sampling for
both metals and organics; otherwise delete.]
Decontamination fluids that will be generated in the sampling event will consist of dilute nitric
acid, pesticide-grade solvent, deionized water, residual contaminants, and water with non-
phosphate detergent. The volume and concentration of the decontamination fluid will be
sufficiently low to allow disposal at the site or sampling area. The water (and water with
detergent) will be poured onto the ground or into a storm drain. Pesticide-grade solvents will
be allowed to evaporate from the decontamination bucket. The nitric acid will be diluted
and/or neutralized with sodium hydroxide and tested with pH paper before pouring onto the
ground or into a storm drain. [Include this bullet if sampling for metals but not organics;
otherwise delete.]
Decontamination fluids that will be generated in the sampling event will consist of nitric acid,
deionized water, residual contaminants, and water with non-phosphate detergent. The volume
and concentration of the decontamination fluid will be sufficiently low to allow disposal at the
site or sampling area. The water (and water with detergent) will be poured onto the ground or
into a storm drain. The nitric acid will be diluted and/or neutralized with sodium hydroxide and
tested with pH paper before pouring onto the ground or into a storm drain. [Include this bullet
if sampling for organics but not metals; otherwise delete.]
Decontamination fluids that will be generated in the sampling event will consist of pesticide-
grade solvent, deionized water, residual contaminants, and water with non-phosphate
detergent. The volume and concentration of the decontamination fluid will be sufficiently low
to allow disposal at the site or sampling area. The water (and water with detergent) will be
poured onto the ground or into a storm drain. Pesticide-grade solvents will be allowed to
evaporate from the decontamination bucket. [Include this bullet if sampling soils; otherwise
delete.]
Soil cuttings generated during the subsurface sampling will be disposed of in an appropriate
manner. [Include this bullet if sampling groundwater; otherwise delete.]
Purged groundwater will be [depending upon the degree of groundwater
contamination, site-specific conditions, and applicable federal, state, and local regulations,
disposal methods will vary. Disposal methods can also vary for purge water from different wells
sampled during the same sampling event].
9 SAMPLE DOCUMENTATION AND SHIPMENT
9.1 FIELD NOTES
This section should discuss record keeping in the field. This may be through a combination of logbooks,
preprinted forms, photographs, or other documentation. Information to be maintained is provided
below.
9.1.1.Field Logbooks
[Describe how field logbooks will be used and maintained.]
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Use field logbooks to document where, when, how, and from whom any vital project information was
obtained. Logbook entries should be complete and accurate enough to permit reconstruction of field
activities. Maintain a separate logbook for each sampling event or project. Logbooks should have
consecutively numbered pages. All entries should be legible, written in black ink, and signed by the
individual making the entries. Use factual, objective language.
At a minimum, the following information will be recorded during the collection of each sample:
[Edit this list as relevant]
Sample location and description;
Site or sampling area sketch showing sample location and measured distances;
Sampler's name(s);
Date and time of sample collection;
Designation of sample as composite or grab;
Type of sample (soil, sediment or water);
Type of sampling equipment used;
Field instrument readings and calibration;
Field observations and details related to analysis or integrity of samples (e.g., weather
conditions, noticeable odors, colors, etc.);
Preliminary sample descriptions (e.g., for soils: clay loam, very wet; for water: clear water with
strong ammonia-like odor);
Sample preservation;
Lot numbers of the sample containers, sample identification numbers and any explanatory
codes, and chain-of-custody form numbers;
Shipping arrangements (overnight air bill number);
Name(s) of recipient laboratory(ies).
In addition to the sampling information, the following specific information will also be recorded in the
field logbook for each day of sampling: [Edit this list as relevant.]
Team members and their responsibilities;
Time of arrival/entry on site and time of site departure;
Other personnel on site;
Summary of any meetings or discussions with contractor, or federal agency personnel;
Deviations from sampling plans, site safety plans, and QAPP procedures;
Changes in personnel and responsibilities with reasons for the changes;
Levels of safety protection;
Calibration readings for any equipment used and equipment model and serial number.
[A checklist of the field notes, following the suggestions above, using only those that are appropriate,
should be developed and included in project field notes.]
9.1.2.Photographs
[If photographs will be taken, the following language may be used as is or modified as appropriate.]
Photographs will be taken at the sampling locations and at other areas of interest on site or sampling
area. They will serve to verify information entered in the field logbook. For each photograph taken, the
following information will be written in the logbook or recorded in a separate field photography log:
Time, date, location, and weather conditions;
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Description of the subject photographed;
Name of person taking the photograph.
9.2 LABELING
[The following paragraph provides a generic explanation and description of the use of labels. It may
be incorporated as is, if appropriate, or modified to meet any project-specific conditions.]
All samples collected will be labeled in a clear and precise way for proper identification in the field and
for tracking in the laboratory. A copy of the sample label is included in Appendix . The samples will
have preassigned, identifiable, and unique numbers. At a minimum, the sample labels will contain the
following information: station location, date of collection, analytical parameter(s), and method of
preservation. Every sample, including samples collected from a single location but going to separate
laboratories, will be assigned a unique sample number.
9.3 SAMPLE CHAIN-OF-CUSTODY FORMS AND CUSTODY SEALS
[The following paragraphs provide a generic explanation and description of the use of chain-of-
custody forms and custody seals. They may be incorporated as is, if they are appropriate, or modified
to meet any project-specific conditions.]
Organic and inorganic chain-of-custody record/traffic report forms are used to document sample
collection and shipment to laboratories for analysis. All sample shipments for analyses will be
accompanied by a chain-of-custody record. A copy of the form is found in Appendix. Form(s) will be
completed and sent with the samples for each laboratory and each shipment (i.e., each day). If multiple
coolers are sent to a single laboratory on a single day, form(s) will be completed and sent with the
samples for each cooler.
The chain-of-custody form will identify the contents of each shipment and maintain the custodial
integrity of the samples. Generally, a sample is considered to be in someone's custody if it is either in
someone's physical possession, in someone's view, locked up, or kept in a secured area that is restricted
to authorized personnel. Until the samples are shipped, the custody of the samples will be the
responsibility of [name of agency/ organization conducting sampling]. The sampling team leader
or designee will sign the chain-of-custody form in the "relinquished by" box and note date, time, and air
bill number. The sample numbers for all reference samples, laboratory QC samples, and duplicates will
be documented on this form (see Section 10.0). A photocopy will be made for the 's [name of
agency/ organization conducting sampling] master files.
A self-adhesive custody seal will be placed across the lid of each sample. A copy of the seal is found in
Appendix _. For VOC samples, the seal will be wrapped around the cap. The shipping containers in
which samples are stored (usually a sturdy picnic cooler or ice chest) will be sealed with self-adhesive
custodyseals any time they are not in someone's possession or view before shipping. All custody seals
will be signed and dated.
9.4 PACKAGING AND SHIPMENT
[The following paragraphs provide a generic explanation and description of how to pack and ship
samples. They may be incorporated as is, if appropriate, or modified to meet any project-specific
conditions.]
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All sample containers will be placed in a strong-outside shipping container (a steel-belted cooler). The
following outlines the packaging procedures that will be followed for low concentration samples.
1. When ice is used, pack it in zip-locked, double plastic bags. Seal the drain plug of the cooler with
fiberglass tape to prevent melting ice from leaking out of the cooler.
2. The bottom of the cooler should be lined with bubble wrap to prevent breakage during
shipment.
3. Check screw caps for tightness and, if not full, mark the sample volume level of liquid samples
on the outside of the sample bottles with indelible ink.
4. Secure bottle/container tops with clear tape and custody seal all container tops.
5. Affix sample labels onto the containers with clear tape.
6. Wrap all glass sample containers in bubble wrap to prevent breakage.
7. Seal all sample containers in heavy duty plastic zip-lock bags. Write the sample numbers on the
outside of the plastic bags with indelible ink.
8. Place samples in a sturdy cooler(s) lined with a large plastic trash bag. Enclose the appropriate
COC(s) in a zip-lock plastic bag affixed to the underside of the cooler lid.
9. Fill empty space in the cooler with bubble wrap or Styrofoam peanuts to prevent movement and
breakage during shipment.
10. Ice used to cool samples will be double sealed in two zip lock plastic bags and placed on top and
around the samples to chill them to the correct temperature.
11. Each ice chest will be securely taped shut with fiberglass strapping tape, and custody seals will
be affixed to the front, right and back of each cooler.
Records will be maintained by the [organization]^ sample custodian of the following information:
Sampling contractor's name (if not the organization itself);
Name and location of the site or sampling area;
Case or Regional Analytical Program (RAP) number;
Total number(s) by estimated concentration and matrix of samples shipped to each laboratory;
Carrier, air bill number(s), method of shipment (priority next day);
Shipment date and when it should be received by lab;
Irregularities or anticipated problems associated with the samples;
Whether additional samples will be shipped or if this is the last shipment.
10 QUALITY CONTROL
This section should discuss the quality control samples that are being collected to support the sampling
activity. This includes field QC samples, confirmation samples, background samples,laboratory QC
samples, and split samples. Wherever possible, the locations at which the samples will be collected
should be identified and a rationale provided for the choice of location. Frequency of collection should be
discussed. All samples, except laboratory QC samples, should be sent to the laboratory blind, wherever
possible. Laboratory QC samples should be identified and additional sample (e.g., a double volume)
collected for that purpose.
10.1 FIELD QUALITY CONTROL SAMPLES
Field quality control samples are intended to help evaluate conditions resulting from field activities and
are intended to accomplish two primary goals, assessment of field contamination and assessment of
sampling variability. The former looks for substances introduced in the field due to environmental or
sampling equipment and is assessed using blanks of different types. The latter includes variability due to
sampling technique and instrument performance as well as variability possibly caused by the
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heterogeneity of the matrix being sampled and is assessed using replicate sample collection. The
following sections cover field QC.
10.1.1. Assessment of Field Contamination (Blanks)
Field contamination is usually assessed through the collection of different types of blanks. Equipment
blanks are obtained by passing distilled or deionized water, as appropriate, over or through the
decontaminated equipment used for sampling. They provide the best overall means of assessing
contamination arising from the equipment, ambient conditions, sample containers, transit, and the
laboratory. Field blanks are sample containers filled in the field. They help assess contamination from
ambient conditions, sample containers, transit, and the laboratory. Trip blanks are prepared by the
laboratory and shipped to and from the field. They help assess contamination from shipping and
thelaboratory and are for volatile organic compounds only. Equipment blanks should be collected, where
appropriate (e.g., where neither disposable or dedicated equipment is used). Field blanks are next in
priority, and trip blanks next. Only one type of blank must be collected per event, not all three.
10.1.1.1. Equipment Blanks
In general, equipment (rinsate) blanks should be collected whenreusable, non-disposable sampling
equipment (e.g., trowels, hand augers, and non-dedicated groundwater sampling pumps) are beingused
for the sampling event. Only one blank sample per matrix per day should be collected. If equipment
blanks are collected, field blanks and trip blanks are not required under normal circumstances.
Equipment blanks can be collected for soil, sediment, and ground water samples. A minimum of one
equipment blank is prepared each day for each matrix when equipment is decontaminated in the field.
These blanks are submitted "blind" to the laboratory, packaged like other samples and each with its own
unique identification number. Note that for samples which may contain VOCs, water for blanks should
be purged prior to use to ensure that it is organic free. HPLC water which is often used for equipment
and field blanks, can contain VOCs if it is not purged.
[If equipment blanks are to be collected describe how they are to be collected and the analyses that
will be performed. A maximum of one blank sample per matrix per day should be collected, but at a
rate to not exceed one blank per 10 samples. The 1:10 ratio overrides the one per day requirement.
If equipment rinsate blanks are collected, field blanks and trip blanks are not required under normal
circumstances. Use the language below or reference the appropriate sections in a Quality Control SOP
and state in which Appendix the SOP is located.]
[Include this subsection if equipment blanks are to be collected, otherwise, delete.]
[Include this paragraph if blanks will be analyzed for both metals and organic compounds; otherwise
delete.]
Equipment rinsate blanks will be collected to evaluate field sampling and decontamination procedures
by pouring High Performance Liquid Chromatography (HPLC) organic-free (fororganics) or deionized
water (for inorganics) over the decontaminated sampling equipment. One equipment rinsate blank will
be collected per matrix each day that sampling equipment is decontaminated in the field. Equipment
rinsate blanks will be obtained by passing water through or over the decontaminated sampling devices
used that day. The rinsate blanks that are collected will be analyzed for [Include names of
target analytes, e.g., metals, total petroleum hydrocarbons, volatile organic compounds, etc.].
[Include this paragraph if blanks will be analyzed only for organic compounds; otherwise delete.]
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Equipment rinsate blanks will be collected to evaluate field sampling and decontamination procedures
by pouring High Performance Liquid Chromatography (HPLC) organic-free water over the
decontaminated sampling equipment. One equipment rinsate blank will be collected per matrix each
day that sampling equipment is decontaminated in the field. Equipment rinsate blanks will be obtained
by passing water through or over the decontaminated sampling devices used that day. The rinsate
blanks that are collected will be analyzed for [Include names of target analytes, e.g., volatile
organic compounds, total petroleum hydrocarbons, etc.] [Include this paragraph if blanks will be
analyzed only for metals; otherwise delete.]
Equipment rinsate blanks will be collected to evaluate field sampling and decontamination procedures
by pouring deionized water over the decontaminated sampling equipment. One equipment rinsate
blank will be collected per matrix each day that sampling equipment is decontaminated in the field.
Equipment rinsate blanks will be obtained by passing deionized water through or over the
decontaminated sampling devices used that day. The insate blanks that are collected will be analyzed
for metals.
[Always include this paragraph.]The equipment rinsate blanks will be preserved, packaged, and sealed
in the manner described for the environmental samples. A separate sample number and station
number will be assigned to each sample, and it will be submitted blind to the laboratory.
10.1.1.2. Field Blanks
Field blanks are collected when sampling water or air and equipment decontamination is not necessary
or sample collectionequipment is not used (e.g., dedicated pumps). A minimum of onefield blank is
prepared each day sampling occurs in the field, but equipment is not decontaminated. These blanks are
submitted "blind" to the laboratory, packaged like other samples and eachwith its own unique
identification number. Note that for samples which may contain VOCs, water for blanks should be
purged prior to use to ensure that it is organic free. HPLC water which is often used for equipment and
field blanks, can contain VOCs if it is not purged.
[Include this subsection if field blanks will be collected; otherwise delete. Only one blank sample per
matrix per day should be collected. If field blanks are prepared, equipment rinsate blanks and trip
blanks are not required under normal circumstances.]
[Include this paragraph if blanks will be analyzed for both metals and organic compounds; otherwise
delete.]
Field blanks will be collected to evaluate whether contaminants have been introduced into the samples
during the sampling due to ambient conditions or from sample containers. Field blank samples will be
obtained by pouring High Performance Liquid Chromatography (HPLC) organic-free water (for organics)
and/or deionized water (for inorganics) into a sampling container at the sampling point. The field blanks
that are collected will be analyzed for [Include names of target analytes, e.g., metals, volatile
organic compounds, etc.].
[Include this paragraph if blanks will be analyzed only for organic compounds; otherwise delete.]
Field blanks will be collected to evaluate whether contaminants have been introduced into the samples
during the sampling due to ambient conditions or from sample containers. Field blank samples will be
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obtained by pouring High Performance Liquid Chromatography (HPLC) organic-free water into a
sampling container at the sampling point. The field blanks that are collected will be analyzed for
[Include names of target analytes, e.g., volatile organic compounds, total petroleum
hydrocarbons, etc.].
[Include this paragraph if blanks will be analyzed only for metals; otherwise delete.]
Field blanks will be collected to evaluate whether contaminants have been introduced into the samples
during the sampling due to contamination from sample containers. Field blank samples will be obtained
by pouring deionized water into a sampling container at the sampling point. The field blanks that are
collected will be analyzed for metals.
[Always include this paragraph.]
The field blanks will be preserved, packaged, and sealed in the manner described for the environmental
samples. A separate sample number and station number will be assigned to each sample, and it will be
submitted blind to the laboratory.
10.1.1.3. Trip Blanks
Trip blanks are required only if no other type of blank will be collected for volatile organic compound
analysis and when air and/or water samples are being collected. If trip blanks are required, one is
submitted to the laboratory for analysis with every shipment of samples for VOC analysis. These blanks
are submitted "blind" to the laboratory, packaged like other samples and each with its own unique
identification number. Note that for samples which may contain VOCs, water for blanks should be
purged prior to use to ensure that it is organic free. Laboratory water which is used for trip blanks, can
contain VOCs if it is not purged.
[Include this subsection if trip blanks will be collected; otherwise delete. Only one blank sample per
matrix per day should be collected. Trip blanks are only relevant to volatile organic compound (VOC)
sampling efforts.]
Trip blanks will be prepared to evaluate if the shipping and handling procedures are introducing
contaminants into the samples, and if cross contamination in the form of VOC migration has occurred
between the collected samples. A minimum of one trip blank will be submitted to the laboratory for
analysis with every shipment of samples for VOC analysis. Trip blanks are 40 mL vials that have been
filled with HPLC-grade water that has been purged so it is VOC free and shipped with the empty
sampling containers to the site or sampling area prior to sampling. The sealed trip blanks are not
opened in the field and are shipped to the laboratory in the same cooler with the samples collected for
volatile analyses. The trip blanks will be preserved, packaged, and sealed in the manner described for
the environmental samples. A separate sample number and station number will be assigned to each trip
sample and it will be submitted blind to the laboratory.
10.1.1.4. Temperature Blanks
[Include this paragraph with all plans.] For each cooler that is shipped or transported to an
analyticallaboratory a 40 ml VOA vial will be included that is marked "temperature blank." This blank
will be used by the sample custodian to check the temperature of samples upon receipt.
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10.1.2. Assessment of Field Variability (Field Duplicate or Co-located Samples)
Duplicate samples are collected simultaneously with a standard sample from the same source under
identical conditions into separate sample containers. Field duplicates will consist of a homogenized
sample divided in two or else a co-located sample. Each duplicate portion should be assigned its own
sample number so that it will be blind to the laboratory. A duplicate sample is treated independently of
its counterpart in order to assess laboratory performance through comparison of the results. Atleast
10% of samples collected per event should be field duplicates. At least one duplicate should be
collected for each sample matrix, but their collection can be stretched out over more than one day (e.g.,
if it takes more than one day to reach 10 samples). Every group of analytes for which a standard sample
is analyzed will also be tested for in one or more duplicate samples. Duplicate samples should be
collected from areas of known or suspected contamination. Since the objective is to assess variability
due to sampling technique and possible sample heterogeneity, source variability is a good reason to
collect co-located samples, not to avoid their collection.
Duplicate soils samples will be collected at sample locations [Identify soil sample locations from which
duplicate or collocated samples will be collected for duplicate analysis will be obtained].
Duplicate samples will be collected from these locations because [Add sentence(s) here explaining a
rationale for collecting duplicate samples from these locations; e.g., samples from these locations are
suspected to exhibit moderate concentrations of contaminants or previous sampling events have
detected moderate levels of contamination at the site or sampling area at these locations.]
[Include this paragraph if collecting soil samples and analyzing for compounds other than
volatiles;otherwise delete.]
Soil samples to be analyzed for [List all analytical methods for this sample event
except for volatiles.] will be homogenized with a trowel in a sample-dedicated disposable pail.
Homogenized material from the bucket will then be transferred to the appropriate wide-mouth glass
jars for both the regular and duplicate samples. All jars designated for a particular analysis (e.g.,
semivolatile organic compounds) will be filled sequentially before jars designated for anotheranalysis
are filled (e.g., metals).
[Include this paragraph if collecting soil samples and analyzing for volatiles; otherwise delete.]
Soil samples for volatile organic compound analyses will not be homogenized. Equivalent Encore
samples from a colocated location will be collected identically to the original samples, assigned unique
sample numbers and sent blind to the laboratory.
[Include these paragraphs if collecting sediment samples. If volatile organic compound analysis will
be performed on sediment samples, modify the above paragraph for soil sample volatile analyses by
changing "soil" to "sediment."]
Duplicate sediment samples will be collected at sample locations [Identify sediment
sample locations from which duplicate or colocated samples for duplicate analysis will be obtained].
Duplicate samples will be collected from these locations because [Add sentence(s)
here explaining a rationale for collecting duplicate samples from these locations; e.g., samples from
these locations are suspected to exhibit moderate concentrations ofcontaminants or previous sampling
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events have detected moderate levels of contamination at the site or sampling area at these locations.]
Sediment samples will be homogenized with a trowel in a sample-dedicated 1-gallon disposable pail.
Homogenized material from the bucket will then be transferred to the appropriate wide-mouth glass
jars for both the regular and duplicate samples. All jars designated for a particular analysis (e.g.,
semivolatile organic compounds) will be filled sequentially before jarsdesignated for another analysis
are filled (e.g., metals).
[Include this paragraph if collecting water samples.]
Duplicate water samples will be collected for water sample numbers [water sample
numbers which will be split for duplicate analysis]. Duplicate samples will be collected from these
locations because [Add sentence(s) here explaining a rationale for collecting
duplicate samples from these locations; e.g. samples from these locations are suspected to exhibit
moderate concentrations of contaminants or previous sampling events have detected moderate levels
of contamination at the site or sampling area at these locations.] When collecting duplicate water
samples, bottles with the two different sample identification numbers will alternate in the filling
sequence (e.g., a typical filling sequence might be, VOCs designation GW-2, VOCs designation GW-4
(duplicate of GW-2); metals, designation GW-2, metals, designation GW-4, (duplicate of GW-2) etc.).
Note that bottles for one type of analysis will be filled before bottles for the next analysis are filled.
Volatiles will always be filled first.
[Always include this paragraph.]
Duplicate samples will be preserved, packaged, and sealed in then same manner as other samples of the
same matrix. A separate sample number and station number will be assigned to each duplicate, and it
will be submitted blind to the laboratory.
10.2 BACKGROUND SAMPLES
Background samples are collected in situations where the possibility exists that there are native or
ambient levels of one or more target analytes present or where one aim of the sampling event is to
differentiate between on-site and off-site contributions to contamination. One or more locations are
chosen which should be free of contamination from the site or sampling location itself, but have similar
geology, hydrogeology, or other characteristics to the proposed sampling locations that mayhave been
impacted by site activities. For example, an area adjacent to but removed from the site, upstream from
the sampling points, or up gradient or cross gradient from the groundwater under the site. Not all
sampling events require background samples.
[Specify the sample locations that have been designated as background. Include a rationale for
collecting background samples from these locations and describe or reference the sampling and
analytical procedures which will be followed to collect these samples.]
10.3 FIELD SCREENING AND CONFIRMATION SAMPLES
For projects where field screening methods are used (typically defined as testing using field test kits,
immunoassay kits, or soil gas measurements or equivalent, but not usually defined as the use of a mobile
laboratory which generates data equivalent to a fixed laboratory), two aspects of the tests should be
described. First, the QC which will be run in conjunction with the field screening method itself, and,
second, any fixed laboratory confirmation tests which will be conducted. QC acceptance criteria for
these tests should be defined in these sections rather than in the DQO section.
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10.3.1. Field Screening Samples
[For projects where field screening methods are used describe the QC, samples which will be run in
the field to ensure that the screening method is working properly. This usually consists of a
combination of field duplicates and background (clean) samples). The discussion should specify
acceptance criteria and corrective action to be taken if results are not within defined limits. Discuss
confirmation tests below.]
10.3.2. Confirmation Samples
If the planned sampling event includes a combination offieldscreening and fixed laboratory
confirmation, this section should describe the frequency with which the confirmation samples willbe
collected and the criteria which will be used to select confirmation locations. These will both be
dependent on the use of the data in decision making. It is recommended that the selection process be at
a minimum of 10% and that a selection criteria include checks for both false positives (i.e., the
fielddetections are invalid or the concentrations are not accurate) and false negatives (i.e., the analyte
was not detected in the field). Because many field screening techniques are less sensitive than
laboratory methods false negative screening is especially important unless the field method is below the
actionlevel for any decision making. It is recommended that some "hits" be chosen and that other
locations be chosen randomly.
[Describe confirmation sampling. Discuss the frequency with which samples will be confirmed and
how location will be chosen. Define acceptance criteria for the confirmation results (e.g., RPD#25%)
and corrective actions to be taken if samples are not confirmed.]
10.3.3. Split Samples
Split Samples are defined differently by different organizations, but for the purpose of this guidance, s
split samplesare samples that are divided among two or more laboratory for the purpose of providing an
inter-laboratory or inter-organization comparison. Usually one organization (for example, a responsible
party) collects the samples and provides sufficient material to the other organization (for example, EPA)
to enable it to perform independent analyses. It is expected that the sampling party will have prepared a
sampling plan which the QA Office has reviewed and approved that describes thesampling locations and
a rationale for their choice, sampling methods, and analyses.
[Describe the purpose of the split sampling. Include references to the approved sampling plan of the
party collecting the samples. Provide a rationale for the sample locations at which split samples will
be obtained and how these locations are representative of the sampling event as a whole. Describe
howresults are to be compared and define criteria by which agreement will be measured. Discuss
corrective action to be taken if results are found to not be in agreement.]
10.4 LABORATORY QUALITY CONTROL SAMPLES
Laboratory quality control (QC) samples are analyzed as part of standard laboratory practice. The
laboratory monitors the precision and accuracy of the results of its analytical procedures through
analysis of QC samples. In part, laboratory QC samples consist of matrix spike/matrix spike duplicate
samples for organic analyses, and matrix spike and duplicate samples for inorganic analyses. The term
"matrix" refers to use of the actual media collected in the field (e.g., routine soil and water samples).
Laboratory QC samples are an aliquot (subset) of the field sample. They are not a separate sample, but a
specialdesignation of an existing sample.
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[Include the following language if soil samples are to be collected for other than VOCs. Otherwise
delete.]
A routinely collected soil sample (a full 8-oz sample jar or two 120-mL sample vials) contains sufficient
volume for both routine sample analysis and additional laboratory QC analyses. Therefore, a separate
soil sample for laboratory QC purposes will not be collected. [Include the following language if soil
samples are to be collected for other than VOCs. Otherwise delete.] Soil samples for volatile organic
compound analyses for laboratory QC purposes will be obtained by collecting double the number of
equivalent Encore samples from a colocated location in the same way as the original samples, assigned a
unique sample numbers and sent blind to the laboratory.
[Include the following language if water samples are to be collected. Otherwise delete.]
For water samples, double volumes of samples are supplied to the laboratory for its use for QC
purposes. Two sets of water sample containers are filled and all containers are labeled with a single
sample number.
For VOC samples this would result in 6 vials being collected instead of 3, for pesticides and semivolatile
samples this would be 4 liters instead of 2, etc.
The laboratory should be alerted as to which sample is to be used for QC analysis by a notation on the
sample container label and the chain-of-custody record or packing list. At a minimum, one laboratory
QC sample is required per 14 days or one per 20 samples (including blanks and duplicates), whicheveris
greater. If the sample event lasts longer than 14 days or involves collection of more than 20 samples per
matrix, additional QC samples will be designated.
For this sampling event, samples collected at the following locations will be the designated laboratory
QC samples: [If a matrix is not being sampled, delete the reference to that matrix.]
For soil, samples [List soil sample locations and numbers designated for QA/QC]
For sediment, samples [List sediment sample locations and numbers designated
for QA/QC.]
For water, samples [List water sample locations and numbers designated for
QA/QC.]
[Add a paragraph explaining why these sample locations were chosen for QA/QC samples. QA/QC
samples should be samples expected to contain moderate levels of contamination. A rationale should
justify the selection of QA/QC samples based on previously-detected contamination at the site or
sampling area, historic site or sampling area operations, expected contaminant deposition/migration,
etc.]
11 FIELD VARIANCES
[It is not uncommon to find that, on the actual sampling date, conditions are different from
expectations such that changes must be made to the SAP once the samplers are in the field. The
following paragraph provides a means for documenting those deviations, or variances.Adopt the
paragraph as is, or modify it to project-specific conditions.]
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As conditions in the field may vary, it may become necessary to implement minor modifications to
sampling as presented in this plan. When appropriate, the QA Office will be notified and a verbal
approval will be obtained before implementing the changes. Modifications to the approved plan will be
documented in the sampling project report.
12 FIELD HEALTH AND SAFETY PROCEDURES
[Describe any agency-, program- or project-specific health and safety procedures that must be
followed in the field, including safety equipment and clothing that may be required, explanation of
potential hazards that may be encountered, and location and route to the nearest hospital or medical
treatment facility. A copy of the organization health and safety plan may be included in the Appendix
and referenced in this section.]
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APPENDIX G. INTERNATIONAL CYANIDE CODE
August 2008
www.cyanidecode.org
THE INTERNATIONAL CYANIDE CODE
The following attachment presents the International Cyanide Code was developed by the mining
industry. It is a voluntary Code of practice. Once a mining company commits to complying with the
Code, it pays funds to the Code management organization and agrees to be audited by an outside
engineering firm. That firm visits the mine site and determines if the company is complying with the
Code's requirements for the transport, storage, handling, use, treatment and disposal of cyanide. If a
mining company is found to be in compliance, the Code organization issues a compliance notification
which is placed on the Code web site. Companies complying with the Code also agree to be audited
every 3-5 years to assure that the Code is being complied with. It should be noted that many countries
have developed regulations of cyanide use at mines which are more stringent that the Code. The Code
should be viewed as a minimum program, not a Best Management Practice.
INTERNATIONAL CYANIDE MANAGEMENT INSTITUTE
The International Cyanide Management Code
www.cyanidecode.org
August 2008
The International Cyanide Management Code (hereinafter "the Code") and other documents or
information sources referenced at www.cyanidecode.org are believed to be reliable and were prepared
in good faith from information reasonably available to the drafters. However, no guarantee is made as
to the accuracy or completeness of any of these other documents or information sources. No guarantee
is made in connection with the application of the Code, the additional documents available or the
referenced materials to prevent hazards, accidents, incidents, or injury to employees and/or members
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of the public at any specific site where gold is extracted from ore by the cyanidation process.
Compliance with this Code is not intended to and does not replace, contravene or otherwise alter the
requirements of any specific national, state or local governmental statutes, laws, regulations,
ordinances, or other requirements regarding the matters included herein. Compliance with this Code is
entirely voluntary and is neither intended nor does it create, establish, or recognize any legally
enforceable obligations or rights on the part of its signatories, supporters or any other parties.
1 SCOPE
The Code is a voluntary initiative for the gold mining industry and the producers and transporters of the
cyanide used in gold mining. It is intended to complement an operation's existing regulatory
requirements. Compliance with the rules, regulations and laws of the applicable political jurisdiction is
necessary; this Code is not intended to contravene such laws.
The Code focuses exclusively on the safe management of cyanide that is produced, transported and
used for the recovery of gold, and on cyanidation mill tailings and leach solutions. The Code originally
was developed for gold mining operations, and addresses production, transport, storage, and use of
cyanide and the decommissioning of cyanide facilities. It also includes requirements related to financial
assurance, accident prevention, emergency response, training, public reporting, stakeholder
involvement and verification procedures. Cyanide producers and transporters are subject to the
applicable portions of the Code identified in their respective Verification Protocols.
It does not address all safety or environmental activities that may be present at gold mining operations
such as the design and construction of tailings impoundments or long-term closure and rehabilitation of
mining operations.
The term "cyanide" used throughout the Code generically refers to the cyanide ion, hydrogen cyanide,
as well as salts and complexes of cyanide with a variety of metals in solids and solutions. It must be
noted that the risks posed by the various forms of cyanide are dependent on the specific species and
concentration. Information regarding the different chemical forms of cyanide is found at
http://www.cyanidecode.orci/cvanide chemistry.php.
2 CODE IMPLEMENTATION
As it applies to gold mining operations, the Code is comprised of two major elements. The Principles
broadly state commitments that signatories make to manage cyanide in a responsible manner.
Standards of Practice follow each Principle, identifying the performance goals and objectives that must
be met to comply with the Principle. The Principles and Practices applicable to cyanide production and
transportation operations are included in their respective Verification Protocols. Operations are
certified as being in compliance with the Code upon an independent third-party audit verifying that they
meet the Standards of Practice, Production Practice or Transport Practice.
For implementation guidance, visit http://www.cyanidecode.org/become_implementation.php
The programs and procedures identified by the Code's Principles and Standards of Practice and in the
Cyanide Production and Transportation Verification Protocols for the management of cyanide can be
developed separately from other programs, or they can be integrated into a site's overall safety, health
and environmental management programs. Since operations typically do not have direct control over all
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phases of cyanide production, transport or handling, gold mines that are undergoing Verification Audits
for certification under the Code will need to require that other entities involved in these activities and
that are not themselves Code signatories commit to and demonstrate that they adhere to the Code's
Principles and meet its Standards of Practice for these activities.
This Code, the implementation guidance, mine operators guide, and other documents or information
sources referenced at www.cyanidecode.org are believed to be reliable and were prepared in good
faith from information reasonably available to the drafters. However, no guarantee is made as to the
accuracy or completeness of any of these other documents or information sources. The
implementation guidance, mine operators guide, and the additional documents and references are
not intended to be part of the Code. No guarantee is made in connection with the application of the
Code, the additional documents available or the referenced materials to prevent hazards, accidents,
incidents, or injury to employees and/or members of the public at any specific site where gold is
extracted from ore by the cyanidation process. Compliance with this Code is not intended to and does
not replace, contravene or otherwise alter the requirements of any specific national, state or local
governmental statutes, laws, regulations, ordinances, or other requirements regarding the matters
included herein. Compliance with this Code is entirely voluntary and is neither intended nor does it
create, establish, or recognize any legally enforceable obligations or rights on the part of its
signatories, supporters or any other parties.
3 PRINCIPLES AND STANDARDS OF PRACTICE
3.1 PRODUCTION Encourage responsible cyanide manufacturing by purchasing from
manufacturers who operate in a safe and environmentally protective manner.
Standard of Practice
3.1.1 Purchase cyanide from manufacturers employing appropriate practices and procedures to
limit exposure of their workforce to cyanide and to prevent releases of cyanide to the
environment.
3.2 TRANSPORTATION Protect communities and the environment during cyanide transport.
Standards of Practice
3.2.1 Establish clear lines of responsibility for safety, security, release prevention, training and
emergency response in written agreements with producers, distributors and transporters.
3.2.2 Require that cyanide transporters implement appropriate emergency response plans and
capabilities, and employ adequate measures for cyanide management.
3.3 HANDLING AND STORAGE Protect workers and the environment during cyanidehandling
and storage.
Standards of Practice
3.3.1 Design and construct unloading, storage and mixing facilities consistent with sound,
accepted engineering practices and quality control and quality assurance procedures, spill
prevention and spill containment measures.
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3.3.2 Operate unloading, storage and mixing facilities using inspections, preventive maintenance
and contingency plans to prevent or contain releases and control and respond to worker
exposures.
3.4 OPERATIONS Manage cyanide process solutions and waste streams to protecthuman health
and the environment.
Standards of Practice
3.4.1 Implement management and operating systems designed to protect human health and the
environment including contingency planning and inspection and preventive maintenance
procedures.
3.4.2 Introduce management and operating systems to minimize cyanide use, thereby limiting
concentrations of cyanide in mill tailings.
3.4.3 Implement a comprehensive water management program to protect against unintentional
releases.
3.4.4 Implement measures to protect birds, other wildlife and livestock from adverse effects of
cyanide process solutions.
3.4.5 Implement measures to protect fish and wildlife from direct and indirect discharges of
cyanide process solutions to surface water.
3.4.6 Implement measures designed to manage seepage from cyanide facilities to protect the
beneficial uses of ground water.
3.4.7 Provide spill prevention or containment measures for process tanks and pipelines.
3.4.8 Implement quality control/quality assurance procedures to confirm that cyanide facilities
are constructed according to accepted engineering standards and specifications.
3.4.9 Implement monitoring programs to evaluate the effects of cyanide use on wildlife, surface
and ground water quality.
3.5 DECOMMISSIONING Protect communities and the environment from cyanide through
development and implementation of decommissioningplans for cyanide facilities.
Standards of Practice
3.5.1 Plan and implement procedures for effective decommissioning of cyanide facilities to
protect human health, wildlife and livestock.
3.5.2 Establish an assurance mechanism capable of fully funding cyanide-related
decommissioning activities.
3.6 WORKER SAFETY Protect workers' health and safety from exposure to cyanide.
Standards of Practice
3.6.1 Identify potential cyanide exposure scenarios and take measures as necessary to eliminate,
reduce and control them.
3.6.2 Operate and monitor cyanide facilities to protect worker health and safety and periodically
evaluate the effectiveness of health and safety measures.
3.6.3 Develop and implement emergency response plans and procedures to respond to worker
exposure to cyanide.
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3.7 EMERGENCY RESPONSE Protect communities and the environment through
thedevelopment of emergency response strategies andcapabilities.
Standards of Practice
3.7.1 Prepare detailed emergency response plans for potential cyanide releases.
3.7.2 Involve site personnel and stakeholders in the planning process.
3.7.3 Designate appropriate personnel and commit necessary equipment and resources for
emergency response.
3.7.4 Develop procedures for internal and external emergency notification and reporting.
3.7.5 Incorporate into response plans monitoring elements and remediation measures that
account for the additional hazards of using cyanide treatment chemicals.
3.7.6 Periodically evaluate response procedures and capabilities and revise them as needed.
3.8 TRAINING Train workers and emergency response personnel to manage cyanide in a safe
and environmentally protective manner.
Standards of Practice
3.8.1' Train workers to understand the hazards associated with cyanide use.
3.8.2 Train appropriate personnel to operate the facility according to systems and procedures
that protect human health, the community and the environment.
3.8.3 Train appropriate workers and personnel to respond to worker exposures and
environmental releases of cyanide.
3.9 DIALOGUE Engage in public consultation and disclosure.
Standards of Practice
3.9.1 Provide stakeholders the opportunity to communicate issues of concern.
3.9.2 Initiate dialogue describing cyanide management procedures and responsively address
identified concerns.
3.9.3 Make appropriate operational and environmental information regarding cyanide available
to stakeholders.
4 CODE MANAGEMENT
4.1 Administration
The International Cyanide Management Institute ("The Institute") is a non-profit corporation established
to administer the Code through a multi- stakeholder Board of Directors consisting of representatives of
the gold mining industry and participants from other stakeholder groups. For additional information on
the Institute, see: http://www.cyanidecode.org/whoicmi.php.
The Institute's primary responsibilities are to:
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Promote adoption of and compliance with the Code, and to monitor its effectiveness and
implementation within the world gold mining industry.
Develop funding sources and support for Institute activities.
Work with governments, NGOs, financial interests and others to foster widespread adoption and
support of the Code.
Identify technical or administrative problems or deficiencies that may exist with Code
implementation, and
Determine when and how the Code should be revised and updated.
4.2 Code Signatories
Gold mining companies with either single or multiple operations, and the producers and transporters of
cyanide used in gold mining can become signatories to the Code; the signature of an owner or corporate
officer of the operating company is required. By becoming a signatory, a company commits to follow
the Code's Principles and implement its Standards of Practice, or in the case of producers and
transporters, the Principles and Practices identified in their respective Verification Protocols. Code
signatories' operations will be audited to verify their operation's compliance with the Code.
When becoming a signatory, a gold mining company must specify which of its operations it intends on
having certified. Only those cyanide production and transportation facilities that are related to the use
of cyanide in gold mining are subject to certification. A company that does not have these operations
audited within 3 years of signing the Code will lose its signatory status. See:
http://www.cvanidecode.ora/sianatorycompanies.php.
4.3 Code Verification and Certification
Audits are conducted every three years by independent, third-party professionals who meet the
Institute's criteria for auditors. The audit is considered to be complete, and the three-year period
before the next audit must be conducted begins, on the day the Institute takes formal certification
action based on the auditor's findings. Auditors evaluate an operation to determine if its management
of cyanide achieves the Code's Principles and Standards of Practice, or the Production or Transport
Practices for these types of operations. The Code's Verification Protocols contains the criteria for all
audits. Operations must make all relevant data available to the auditors, including the complete
findings of their most recent independent Code Verification Audit, in order to be considered for
certification.
During an initial verification audit, an operation's compliance at the time of the audit will be evaluated.
Subsequent re-verification audits will also evaluate compliance during the period between the receding
and current audits.
Upon completion of the audit, the auditor must review the findings with the operation to ensure that
the audit is factually accurate and make any necessary changes. The auditor must submit a detailed
"Audit Findings Report" addressing the criteria in the Verification Protocol and a "Summary Audit
Report" that includes the conclusion regarding the operation's compliance with the Code to the
signatory, the operation and to the Institute. The operation is certified as complying with the Code if
the auditor concludes that it is in full compliance with the Code's Principles and Standards of Practice or
its Principles and Practices for cyanide production or transportation. The detailed "Audit Findings
Report" is the confidential property of the operation and shall not be released by the Institute in any
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fashion without the express written consent of the signatory and audited operation. The "Summary
Audit Report" of certified operations will be made available to the public on the Code website. The
operation may submit its comments regarding the Summary Audit Report to the Institute, which will be
posted along with the Summary Audit Report on the Institute's website.
Operations that are in substantial compliance with the Code are conditionally certified, subject to the
successful implementation of an Action Plan. Substantial compliance means that the operation has
made a good-faith effort to comply with the Code and that the deficiencies identified by the auditor can
be readily corrected and do not present an immediate or substantial risk to employee or community
health or the environment. Operations that are in substantial compliance with a Standard of Practice,
Production Practice or Transport Practice must develop and implement an Action Plan to correct the
deficiencies identified by the verification audit. The operation may request that the auditor review the
Action Plan or assist in its development so that there is agreement that its implementation will bring the
operation into full compliance. The Action Plan must include a time period mutually agreed to with the
auditor, but in no case longer than one year, to bring the operation into full compliance with the Code.
The Auditor must submit the Action Plan to the Institute along with the Audit Findings Report and
Summary Audit Report.
The operation must provide evidence to the auditor demonstrating that it has implemented the Action
Plan as specified and in the agreed-upon time frame. In some cases, it may be necessary for the auditor
to re-evaluate the operation to confirm that the Action Plan has been implemented. Upon receipt of
the documentation that the Action Plan has been fully implemented, the auditor must provide a copy of
the documentation to the Institute along with a statement verifying that the operation is in full
compliance with the Code.
All operations certified as in compliance with the Code will be identified on the Code website,
http://www.cyanidecode.org/signatorycompanies.php. Each certified operation's Summary Audit
Report will be posted and operations with conditional certification will have their Summary Audit Report
and their Action Plan posted.
An operation cannot be certified if the auditor concludes that it is neither in full compliance nor in
substantial compliance with any one of the Standards of Practice (or Production or Transport Practice).
An operation that is not certified based on its initial verification audit can be verified and certified once
it has brought its management programs and procedures into compliance with the Code. Its signatory
parent company remains a signatory during this process.
A gold mining operation that is not yet active but that is sufficiently advanced in its planning and design
phases can request pre-operational conditional certification based on an auditor's review of its site
plans and proposed operating procedures. An on-site audit is required within one year of the
operation's first receipt of cyanide at the site to confirm that the operation has been constructed and is
being operated in compliance with the Code. These operations must advise ICMI within 90 days of the
date of their first receipt of cyanide at the operation.
Mining operations that have been designated for certification before they become active but which do
not request pre-operational certification must be audited for compliance with the Code within one year
of their first receipt of cyanide, and also must advise ICMI within 90 days of the date of their first receipt
of cyanide.
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A gold mining operation or an individual cyanide facility at an operation is no longer subject to
certification after decommissioning of the cyanide facilities. A producer or transporter is no longer
subject to certification after it no longer produces or transports cyanide for use in the gold mining
industry.
4.4 Certification Maintenance
In order to maintain certification, an operation must meet all of the following conditions:
The auditor has concluded that it is either in full compliance or substantial compliance with the
Code.
An operation in substantial compliance has submitted an Action Plan to correct its deficiencies
and has demonstrated that it has fully implemented the Action Plan in the agreed-upon time.
There is no verified evidence that the operation is not in compliance with the Code.
An operation has had a verification audit within three years.
An operation has had a verification audit within two years of a change in ownership, defined as
a change of the controlling interest of the operating company
4.5 Auditor Criteria and Review Process
The Institute has developed specific criteria for Code Verification auditors and will implement
procedures for review of auditor credentials. Auditor criteria includes requisite levels of experience with
cyanidation operations (or chemical production facilities or hazardous materials transport, as
appropriate) and in conducting environmental, health or safety audits, membership in a self-regulating
professional auditing association and lack of conflicts of interest with operation(s) to be audited.
4.6 Dispute Resolution
The Institute has developed and implemented fair and equitable procedures for resolution of disputes
regarding auditor credentials and certification and/or de-certification of operations. The procedures
provide due process to all parties that may be affected by these decisions.
4.7 Information A valiability
The Code and related information and code management documentation are available via the Internet
at www.cyanidecode.org. The website is intended to promote an understanding of the issues involved
in cyanide management and to provide a forum for enhanced communication within and between the
various stakeholder groups with interest in these issues. The website is the repository for Code
certification and verification information.
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5 ACKNOWLEDGEMENTS
This project was underwritten by a group of gold companies and cyanide producers from around the
world. The Gold Institute was instrumental in organizing this financial and technical support and
provided the administrative and logistical support necessary to successfully complete the project. This
effort represents the first time that an industry has worked with other stakeholders to develop an
international voluntary industry Code of Practice. The individuals listed below participated in the
process. Participation by these individuals does not necessarily represent an endorsement of the Code
by their respective organizations.
Steering Committee
Harold Barnes (Chairman)1 Homestake Mining Company, United States
Stephen Bailey International Finance Corporation, United States
Julio Bonelli Government of Peru
Gordon Drake, Ph.D2 WMC Resources, Ltd., Australia
John den Dryver3 Normandy Mining Limited, Australia
Bill Faust Eldorado Gold Company, Canada
Fred Fox4 Kennecott Minerals Company, United States
John Gammon, Ph.D. Government of Ontario, Canada
Steven Hunt5 United Steelworkers of America, Canada
Juergen Loroesch, Ph.D. Degussa, Germany
Basie Maree Anglogold Company, South Africa
Glenn Miller, Ph.D. University of Nevada, Reno, United States
Anthony O'Neill WMC Resources, Ltd., Australia
Michael Rae World Wide Fund For Nature, Australia
Stan Szymanski International Council of Chemical Associations, United States
Stephan ThebenS European Commission, Spain
Federico VillasenorS Minas Luismin, Mexico
Juergen Wettig European Commission, Belgium
1 Elected Chairman by the Steering Committee
2 Substituted for Anthony O'Neill at Washington and Vancouver Meetings
3 Substituted for Anthony O'Neill at Santiago Meeting
4 Replaced Bill Faust on Committee after Napa Meeting
5 Added to Steering Committee at Vancouver Meeting
6 Substituted for Juergen Wettig at Washington, Vancouver and Santiago Meetings
Code Manager
Norman Greenwald Norm Greenwald Associates, United States
Secretariat
Wanda Hoskin United Nations Environment Programme, France
Tom Hynes, Ph.D. International Council on Metals and the Environment, Canada
Kathryn Tayles United Nations Environment Programme, France
Gold Institute
Paul Bateman The Gold Institute, United States
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Industry Advisory Group
Anglogold, South Africa Homestake Mining Company, United States
Ashanti Goldfields Company, Ghana Kinross Gold Corp., Canada
Australian Gold Council, Australia Lihir Management Corp., Paupa New Guinea
Australian Gold Reagents, Australia Mining Project Investors, Australia
Barrick Gold Corp., Canada Newmont Gold Company, United States
Degussa, Germany Normandy Mining, Australia
Dupont, United States Placer Dome, Inc., Canada
Glamis Gold, Ltd., United States South African Chamber of Mines, South Africa
Gold Fields Limited, South Africa Rio Tinto, United Kingdom
The Gold Institute, United States WMC, Australia
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APPENDIX H. WORLD BANK FINANCIAL SURETY
GUIDANCE NOTES FOR THE
IMPLEMENTATION OF
FINANCIAL SURETY FOR
MINE CLOSURE
SASSOON 2008 WORLD BANK
http://siteresources.worldbank.org/INTOGMC/Resources/financial surety mine.pdf
The World Bank Group
Oil, Gas and Mining Policy Division
GUIDANCE NOTES FOR THE
IMPLEMENTATION OF
FINANCIAL SURETY FOR
MINE CLOSURE
SASSOON 2008 WORLD BANK
1 INTRODUCTION
It is now accepted practice that when a company relinquishes a mining title, whether for an exploration
or mining site, it is responsible for carrying out the rehabilitation of that site prior to departure. To
ensure this is the case, most jurisdictions now require some form of closure plan or rehabilitation
program to be submitted to the regulatory authority prior to any work starting on the site. It is an
increasingly common requirement for the closure plan to contain details of the estimated cost of
rehabilitation and for a financial surety to be established at the same time.
This report aims to provide the information necessary to assist governments in making their own,
informed decisions regarding financial surety for mine closure. The report is based on a review of
existing financial surety systems in a number of countries. Questionnaires were sent out to a total of 14
regulatory authorities and, of these, nine provided sufficient detail about their existing financial surety
systems to be included as full case studies. These are presented in Chapter 3 along with a summary of
the latest European Union waste directive. Except where otherwise stated, the financial surety applies
to all stages of a mining project whatever the size.
The latest IFC (World Bank) Environmental, Health, and Safety Guidelines for Mining (2007) state that
mine closure and post closure should be included in business feasibility at the design stage with the
minimum consideration being the availability of funds to cover the cost of closure. These funds should
be established by a cash accrual system or financial guarantee. The relevant section of the Guidelines is
reproduced in Box 1.1.
The purpose of the financial surety is to ensure that there will be sufficient funds available to pay for site
rehabilitation and post closure monitoring and maintenance at any stage in the life of the project
including early or temporary closure. The main aims of site rehabilitation are to reduce the risk of
pollution, to restore the land and landscape for an appropriate use, to improve the aesthetics of the
area and to prevent any subsequent degradation. The extent and cost of final site rehabilitation can be
reduced if it is undertaken on a progressive basis wherever possible, as mining takes place, so that the
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rate of restoration is similar to the rate of exploration or exploitation. This ideal is not often achieved
and it is more common for the majority of rehabilitation to take place once work on the lease has
ceased.
The cost of mine closure can vary enormously as the following extract from the World Bank and IFC
publication (2002) shows:
"Closure costs for environmental issues range from less than US$1 million each for small mines in
Romania to hundreds of millions of dollars for large lignite mines and associated facilities in Germany.
More typically, closure costs will range in the tens of millions of dollars. Preliminary research indicates
that medium-size open pit and underground mines operating in the past 10 to 15 years cost US$5-15
million to close, while closure of open pit mines operating for over 35 years, with large waste and
tailings facilities, can cost upwards of $50 million."
This means that the required level of financial surety can differ dramatically between countries and
should only be established on a country by country and site by site basis. In addition, because of the
variation in conditions, it is not feasible to establish a definitive guide. However, the regulatory
authority does need to be consistent in their approach to determining end goals, or rehabilitation
standards, and assessing the financial surety requirements. These should include, but not be limited to:
the removal of all plant, equipment and, where it is no longer needed, infrastructure; the removal of all
hazardous materials; the sealing of adits; the stabilization of all surfaces; the revegetation of all surfaces;
the restoration of surface and ground water flows; the prevention of long term pollution.
In some instances the mining community may have become reliant on the cash flow, infrastructure and
facilities provided by, or because of, the mine. It is becoming accepted that these social assets and
services should be taken into consideration when establishing the financial implications of mine closure
and that funds should be set aside for this purpose.
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Box 1.1: IFC Guidelines for Mine Closure and Post Closure
Closure and post-closure activities should be considered as early in the planning and design stages as
possible. Mine sponsors should prepare a Mine Reclamation and Closure Plan (MRCP) in draft form
prior to the start of production, clearly identifying allocated and sustainable funding sources to
implement the plan. For short life mines, a fully detailed Mine Reclamation and Closure Plan (with
guaranteed funding) as described below should be prepared prior to the start of operations. A mine
closure plan that incorporates both physical rehabilitation and socio-economic considerations should
be an integral part of the project life cycle and should be designed so that:
Future public health and safety are not compromised;
The after-use of the site is beneficial and sustainable to the affected communities in the long
term;
Adverse socio-economic impacts are minimized and socioeconomic benefits are maximized.
The MRCP should address beneficial future land use (this should be determined using a multistake
holder process that includes regulatory agencies, local communities, traditional land users, adjacent
leaseholders, civil society and other impacted parties), be previously approved by the relevant
national authorities, and be the result of consultation and dialogue with local communities and their
government representatives.
The closure plan should be regularly updated and refined to reflect changes in mine development
and operational planning, as well as the environmental and social conditions and circumstances.
Records of the mine works should also be maintained as part of the post-closure plan.
Closure and post closure plans should include appropriate aftercare and continued monitoring of the
site, pollutant emissions, and related potential impacts. The duration of post-closure monitoring
should be defined on a risk basis; however, site conditions typically require a minimum period of five
years after closure or longer.
The timing for finalization of the MRCP is site specific and depends on many factors, such aspotential
mine life, however all sites need to engage in some form of progressive restoration during
operations. While plans may be modified, as necessary, during the construction and operational
phases, plans should include contingencies for temporary suspension of activities and permanent
early closure and meet the following objectives for financial feasibility and physical / chemical /
ecological integrity.
Financial Feasibility
The costs associated with mine closure and post-closure activities, including post-closure care,
should be included in business feasibility analyses during the planning and design stages. Minimum
considerations should include the availability of all necessary funds, by appropriate financial
instruments, to cover the cost of closure at any stage in the mine life, including provision for early, or
temporary closure. Funding should be by either a cash accrual system or a financial guarantee. The
two acceptable cash accrual systems are fully funded escrow accounts (including government
managed arrangements) or sinking funds. An acceptable form of financial guarantee must be
provided by a reputable financial institution. Mine closure requirements should be reviewed on an
annual basis and the closure funding arrangements adjusted to reflect any changes.
Ref: IFC (2007)
The IFC Guidelines state that a mine closure plan should incorporate both physical rehabilitation and
socio-economic considerations which, by implication, includes the social aspects in the financial surety.
There is some ambiguity as to whether a single fund should be established to include both the physical
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and social aspects of mine closure or if they should be handled separately. This is discussed in more
detail in Chapter 5.
Some jurisdictions have developed extremely detailed supporting documentation to assist companies in
establishing accurate estimates for the financial surety. In a number of cases this information is
available on the internet and this has been identified in the text where relevant. These and other useful
website addresses are contained in the Annex 1.
Chapter 2 identifies the main financial surety instruments and the mechanisms for their
implementation. Chapter 3 presents case studies from existing jurisdictions. Chapter 4 discusses all the
various aspects of the implementation and management of financial sureties, based on the case studies
presented in Chapter 3. Chapter 5 summarizes the findings of the study and provides recommendations
on the implementation and management of financial sureties. Chapter 6 is an amalgamation of
thoughts and comments that emerged during the course of the work.
Box 1.2 on the following page summarizes the standards that should be taken into consideration when
establishing financial surety procedures. These were formulated by a senior research associate with the
Mineral Policy Center, a U.S. based non-profit environmental organization dedicated to protecting
communities and the environment from the impact of irresponsible mining.
The author would like to thank all the people who so generously gave their time to fill in the
questionnaire and answer questions. A number of people went out of their way to provide additional
information and personal comments all of which have contributed to the writing of this report. In
particular, the author would like to thank Ian Wilson and Gavin Murray for their very helpful insights
into the current status and thinking behind financial sureties.
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Box 1.2: FINANCIAL SURETY STANDARDS
Closure costs: Financial assurances must cover the operator's cost of reclamation and closure as well as
redress any impacts that a mining operation causes to wildlife, soil, and water quality. The bond should
also cover the cost of a post-closure monitoring period. To accurately compute the level of financial
assurance, reclamation and mitigation activities should be clearly spelled out in the operation plan. In
addition, the bond should cover the costs of addressing impacts that stem from the operator's failure to
complete reclamation, such as the need for long-term treatment of surface and groundwater,
environmental monitoring and site maintenance. During mining, assurance levels should be subject to
periodic reviews, in order to allow regulators to adjust operators' assurance amounts upward or
downward as clean-up needs, environmental risks, or economic factors dictate.
Liquidity: All forms of financial assurance should be reasonably liquid. Cash is the most liquid asset, but
high-grade securities, surety bonds and irrevocable letters of credit can serve as acceptable forms of
assurance. However, assets that are less liquid, particularly the mine operator's own property or
equipment should not be considered adequate assurance, since these items may quickly become
valueless in the event of an operator default or bankruptcy.
Accessible: Financial assurances should be readily accessible, dedicated and only released with the
specific assent of the regulatory authority, so that regulators can promptly obtain funding to initiate
reclamation and remediation in case of operator default. Forms of financial assurance should be
payable to regulators, under their control or in trust for their benefit, and earmarked for reclamation
and closure. Further, such financial assurances must be discreet legal instruments or sums of money
releasable only with the regulatory authority's specific consent.
For their part, regulators must obtain financial assurance up front before a mine project is approved.
While regulators, as determined by their periodic reviews, must have the authority to secure financial
assurance during the course of mining, waiting until late in the mining process to obtain substantial
assurance is unwise, since reduced cash flows at this stage may make it difficult for operators to secure
bonding from a surety, bank, or other guarantor.
Healthy guarantors: To assure that guarantors have the financial capacity to assume an operator's risk
of not performing its reclamation obligations, regulators must carefully screen guarantors' financial
health before accepting any form of assurance. Any risk sharing pools should also be operated on an
actuarially sound basis. Regulators should require periodic certification of these criteria by independent,
third parties. Public involvement: Since the public runs the risk of bearing the environmental costs not
covered by an inadequate or prematurely released bond, the public must be accorded an essential role
in advising authorities on setting and releasing of bonds. Therefore, regulators must give the public
notice and an opportunity to comment both before the setting of a bond amount and before any
decision on whether to release a bond. No substitute: Any financial assurance should not be regarded as
a surrogate for a company's legal liability for clean-up, or for the regulators' applying the strictest
scrutiny and standards to proposed mining plans and operations. Rather, a financial assurance is only
intended to provide the public with a buffer against having to shoulders costs for which the operator is
liable.
Ref: Da Rosa (1999)
Note: The author has used the terms 'financial assurance' and 'bond' to refer to a financial surety. The
term 'bond' does not refer to a Surety Bond as described in Chapter 2.2.
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2 FINANCIAL SURETY INSTRUMENTS
Financial surety is an important tool in ensuring that funds are available to guarantee effective mine
closure and rehabilitation. Choosing the appropriate financial surety instrument is critical to making
certain this tool is effective. There are a number of different financial surety instruments available and
the choice is dependent on the financial strength of the company, the amount of surety required and
the time frame over which the fund will need to be in place. It is also essential that the financial surety
is quarantined from other company assets, so that it is still available in the event of bankruptcy, and
from government abuse.
This Chapter describes the most common forms of financial surety instruments. An evaluation of the
most commonly used financial instruments is presented in Box 2.1, taken from the Guidelines on
Financial Guarantees and Inspections for Mining Waste Facilities written by MonTec for the European
Commission. At the time of publication, these Guidelines had not been adopted by the EC. Chapter 5
provides some comments on the different types of financial surety instruments.
2.1 LETTER OF CREDIT
An irrevocable Letter of Credit, also known as a Bank Guarantee, is an unconditional agreement
between a bank and a proponent in order to provide funds to a third party on demand. In this instance,
the third party is the relevant government department. A Letter of Credit includes the terms and
conditions of the agreement between the proponent and the government, with reference to the
rehabilitation program and the agreed costs. Any changes to the Letter of Credit require the consent of
all parties involved.
To obtain a Letter of Credit, the proponent will have to demonstrate to the bank that provisions have
been made for the rehabilitation of the site and that it has sufficient funds or liquidity to cover the costs.
A Letter of Credit is usually issued for a year and renewed annually following a review of rehabilitation
requirements and costs. If the bank, for any reasons, will not renew a Letter of Credit, and the
proponent fails to provide an acceptable alternative form of surety, then the government can request
payment for the full outstanding amount of a Letter of Credit.
The government will usually specify from which banks it will accept a Letter of Credit. The annual cost of
a Letter of Credit ranges from 0.5% to 9% of the guaranteed amount, depending on the proponent's
credit rating. The funds held in a Letter of Credit do not generate any interest.
2.2. SURETY (INSURANCE) BOND
A Surety Bond, which may also be called an Insurance Bond or a Performance Bond, is an agreement
between an insurance company and a proponent in order to provide funds to a third party under certain
circumstances. In this instance, the third party is the relevant government department. A Surety Bond
will include the terms and conditions of the agreement between the proponent and the government,
with reference to the rehabilitation program, the agreed costs and the conditions for the release of the
bond. Any changes to a Surety Bond require the consent of all parties involved.
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Box 2.1: Evaluation of Commonly Used Financial Surety Instruments
Instrument
Advantages
Disadvantages
Self-bonding(Company
Guarantee)
Most advantageous for mining company.
Does not tie up capital. Simple to
administrate. Public availability of Annual
Reports
Even very large companies can fail, no
matter what their financial health was
when mining project started. Annual
Reports and financial statements are not
immune to manipulationfaccounting
scandals)Problematic public acceptance.
Insurance Policy(Scheme)
Low costs also to smaller mining
companies. No tied-up capital. Modest cash
outflow from mine Operator
Only very few insurance products are
currently on the market. Reluctance of
large insurers to cover environmental
liability risks
Letter of credit, bank guarantee
Cheap to set up (provided that company
meets the bank's requirements)No tied-up
capital. Modest cash outflow from mine
operator. Less administrative
requirements. The government can reserve
the right to approve banks from which they
accept an LOG, thereby minimizing the risk
of failure of weak banks
Surety provider (bank, surety
company)itself may fail. Obtaining an LOG
may reduce the borrowing power of the
mining Company. Availability of bonds
depends on state of surety industry and
may be negatively affected by market
forces outside the mining industry.
Surety bond
Generally low costsNo tied-up capital
Bond issuer may fail over the long termfsee
also under "LOC")Rating of the company
that determines the cost and it will be
substantially higher for small companies,
especially those without proven track
records
Cash deposit
Cash is readily available for closure and
rehabilitation. Investment-grade
securities(treasuries) can be traded with
minimal risk of liquidity High public
acceptance ("visibility" of guarantee)
For small and junior mining companies, if
they fail to meet the criteria of a bank. Can
be dissolved only partly in case of need.
Can be transferred in a pooled fund.
Significant capital is tied up for the duration
of the mine life, especially for large mining
projects. Some governments may be
tempted to use the deposited cash for
purposes other than securing the mining
project Cash is more vulnerable to being
lost to fraud or theft.
Trust fund
High public acceptance ("visibility" of trust
fund)Trust funds may appreciate in
valuefbut may also lose value, see
"Disadvantages")
Risk of bad management of the trust fund
(loss of value if fund invests in risky
assets)Trust fund may not have enough
value accumulated through annual
payments if mining project ceases
prematurely Trust fund management and
administration consumes some of the value
and income earned.
Ref: Montec (2007)
A Surety Bond is issued by an insurance company that should be licensed under the relevant legislation.
It is issued for a specific time period and can be renewed for further time periods, based on a credit
review of the proponent. During this process the amount of a Surety Bond can be increased or
decreased depending on the amendments to the rehabilitation program. If a Surety Bond is not
renewed, and the proponent fails to provide an acceptable alternative form of surety, then the
government has the option of drawing the full amount. The proponent should be responsible for all
fees and charges associated with a Surety Bond.
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The government must ensure that a Surety Bond is unconditional and not invalidated by any action or
failure of the proponent to act in accordance with the terms of the bond or the legislation.
2.3. TRUST FUND
A Trust Fund, which may also be known as a Mining Reclamation Trust, a Qualifying Environmental Trust
or a Cash Trust Fund, is an agreement between a trust company and the proponent for the sole purpose
of funding the rehabilitation of a site. In addition to a Trust Fund, there should be a signed agreement
between the proponent and the government, administered by the trust company that stipulates the
proponent's responsibility with regard to the trust. This agreement should specify that a Trust Fund is to
provide security for the rehabilitation costs for a particular site, the total amount required and an
outline schedule of payments.
A Trust Fund should be maintained by a company that is licensed under the relevant legislation. The
types of investment available to the fund manager should be decided by the proponent and the
government, and specified in the agreement. If the payments are not made to a Trust Fund, and the
proponent fails to provide an acceptable alternative form of surety, then the government has the option
of drawing the full amount of the fund. The proponent should be responsible for all fees and charges
associated with a Trust Fund. Contributions to a Trust Fund would usually be structured as a series of
payments over a specific time period. The management and performance of a Trust Fund should be
subject to periodic review.
The Appendix of the ICMM report, Financial Assurance for Mine Closure and Reclamation (2005),
contains a list of the principles, established by the mining industry, for the design, operation and review
of a Trust Fund. These are reproduced in full in Box 2.2 and 2.3. The complete report is available on the
ICMM website (see Annex 1).
2.4. CASH, BANK DRAFT OR CERTIFIED CHECK
A deposit can be made for a financial surety as Cash, a Bank Draft or a Certified Check. The funds should
be placed in a special purpose account under the management of the financial institution with the
government and company holding joint signatory powers. Alternatively, the cash can be used to
purchase a certificate of deposit which can be pledged to the relevant government agency. Most
commercial banks would charge nominal fees for setting up such accounts and the money would attract
interest which would accrue to the fund.
2.5. COMPANY GUARANTEE
A Company Guarantee, which may also be called a Corporate Financial Test, a Balance Sheet Test or a
Self Guarantee, is based on an evaluation of the assets and liabilities of the company and its ability to
pay the total rehabilitation costs. A Company Guarantee requires a long history of financial stability, a
credit rating from a specialized credit rating service and at least an annual financial statement prepared
by an accredited accounting firm. Many jurisdictions will no longer accept a Company Guarantee as a
form of financial surety because of the public perception that a self guarantee for a mining company is a
contradiction in terms. Of those that do allow a Company Guarantee, some will only accept this form of
financial surety for the first half of the life of the project or for part of the surety.
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Box 2.1: Criteria for the efficient design of a trust fund
Site-specific basis for fund
Basis for cost estimates
Responsible management of reclamation
Similarity to pension fund
Investment policy
Investment manager
Monitoring legislation
Choice of financingmechanism
Expenses deductible for tax
Fund income sheltered from tax
Investment management fees
Fund Trustee
Sole government control
Each mine should be assessed individually and the
security required should reflect the costs and risks
associated with reclaiming that site.
Estimated costs should be based on careful
engineering and technical studies accompanied by
formal risk assessments to take into account the
probabilities and consequences of alternative
scenarios.
The design of the fund should encourage
miningcompanies to manage their reclamation
programs in an active and responsible manner, in
order to control costs and to develop innovative
technical solutions to reclamation challenges.
The principles for setting up a fund should be similar
to those used to establish a pension fund.
Investment policy should permit investments that
optimize the risk-return ratio, bearing in mind that
the fund is a long-term investment.
The fund should be managed by an
investmentmanager selected by the company. The
companyshould at the same time have the option of
managing the fund internally with reasonable
guidelines, as with a pension fund.
Legislation modeled on pension statutes or other
similar legislation can be used to monitor
performance of the fund and to ensure compliance
with investment policy.
As justified by the circumstances, a company should
have the option to determine which government
authorized financing mechanism (or combination of
mechanisms) represents efficient use of the
company's capital.
Where a government-mandated mine reclamation
fund is required, payments into the fund should be
allowed as a deductible expense at the time they
are made for purposes of income tax and mining
taxes.
Income generated by a fund should be tax-sheltered
until withdrawn.
All investment management costs should be
financed from the proceeds of the fund.
An independent third party, such as a trust
company, is an acceptable trustee of a fund.
The mining industry is opposed to the government
having sole control over the management of
investments in a fund.
Ref: ICMM 2005
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APPENDIX H. WORLD BANK FINANCIAL SURETY
Box 2.2: Guidelines for the review and audit of a trust fund
Site-specific basis for fund
Basis for cost estimates
Periodic review or audit
Scope of audit
Conduct of audit
Frequency
Disposition of surplus funds
Each mine should be assessed individually and the security
required should reflect the costs and risks associated with
reclaiming that site.
Estimated costs should be based on careful engineering
and technical studies accompanied by formal risk
assessments to take into account the probabilities and
consequences of alternative scenarios.
A periodic review or audit of activities of a fund is
necessary to ensure appropriate disbursement and use of
funds pursuant to the approved decommissioning plan.
An audit would include the preparation of financial
statements and a technical review of work performed. It
should also include, where applicable, a reassessment of
reclamation requirements and funding contributions.
An appropriate panel should be engaged to undertake the
review and audit, using technical, engineering, legal and
actuarial expertise.
A review should be held with a stated frequency, which
could be from three to five years, or more frequently if
deemed desirable by the government or the company.
Any surplus funds determined by a review should be
returned, net of appropriate tax adjustments, to the
company.
Ref: ICMM 2005
2.6. INSURANCE SCHEME
There are a wide range of insurance options but, until recently, none have been specifically designed to
cover long term rehabilitation costs. General forms of insurance, such as premium financing,
commercial general liability and professional indemnity do not normally cover environmental liabilities.
One major advantage of an Insurance Scheme is that premiums paid into a policy are usually tax
deductible.
In the US, one insurance company set up a custom designed product that is a combination of three
products; a conventional Surety Bond, accumulation of cash within the policy and insurance protection
for overruns and changing requirements. The policy is based on the rehabilitation plans and projected
costs, the credit worthiness of the proponent and the market value of the mine assets. From the funds
deposited the insurance company issues the required security bonds to the government and pays the
actual rehabilitation costs. At the end of project life, if there is a surplus in the account, it goes back to
the proponent. If there is a deficit the insurance company pays.
2.7. UNIT LEVY
The Unit Levy option requires the financial surety to be paid in regular installments, the payments being
based on the amount of ore or waste mined or milled. The level of payments per tonne would be
calculated on the proposed life of the mine, the estimated closure costs and the mining rate. The
financial surety payments can be Cash, Letter of Credit or Surety Bond. The proponent would make
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payments to the fund until the full amount of the financial surety had been reached. In some
jurisdictions it is required that the financial surety would be paid in full before the half life of the mine.
Signed financial assurance agreements should be included with a closure plan incorporating the terms
and conditions for the amount/tonnes, form and timing of the payments.
2.8. SINKING FUND
A sinking fund is a method of incremental payments into a Letter of Credit, Surety Bond or Cash financial
surety. A schedule of payments is established at the time of setting up the financial surety. The
proponent would then make payments into the fund until the full amount of the financial surety had
been reached. In some jurisdictions it is required that the financial surety would be paid in full before
the half life of the project. Signed financial assurance agreements should be included with a closure
plan when the proponent provides financial assurance in the form of a sinking fund. The agreements
include terms and conditions as to the amounts, form and timing of the payments.
2.9. PLEDGE OF ASSETS
In some jurisdictions a Pledge of Assets is an acceptable form of financial surety. This takes the form of
all surplus equipment and scrap metal that remains at mine site after operations have ceased. The
surplus equipment includes all stationary equipment and buildings. The scrap metal includes all metal
debris produced during site demolition and the clean up process.
If a Pledge of Assets is being used as a financial surety several factors should be taken into
consideration. These include that the assets are free and clear of encumbrances, that the assets are
fixed and not easily moved, that the assets are not contaminated and that there is a market demand for
the assets. The value estimation must be carried out by a third party, should include the cost of retrieval
and transportation from the site to the market place and be recalculated periodically. However, this is
generally viewed as a high risk form of financial surety and is not accepted in many countries.
2.10. FUND POOL
In some jurisdictions the industry is permitted to set up a Fund Pool that receives contributions from all
the mining operators in the region and is managed by the industry. However, this is not a particularly
popular form of financial surety as it is largely out of the control of the government and it can result in
responsible companies subsidizing irresponsible ones.
2.11. TRANSFER OF LIABILITY
Some research has been carried out into the possibility of establishing a specialized company specifically
to carry out mine site rehabilitation. This company would have a contractual arrangement with the
mining company involved and would be responsible for providing insurance cover. As far as the author
could establish, this form of financial surety is not currently available in any jurisdiction.
3 CASE STUDIES
3.1. ONTARIO
3.1.1. Legislation and Governance
In Ontario (Canada) the Mining Act R.S.O. 1990 (Bill 26, proclaimed 1991), Chapter M. 14, Part VII covers
the rehabilitation of mine land, the requirement for the proponent to submit a closure plan and for a
financial assurance to be part of the closure plan. The Ontario Regulation 240/00, adopted under Part
VII of the Mining Act, specifies the standards, procedures and requirements for site rehabilitation and
the closure plan, including the financial assurance. Schedules 1 and 2 of these Regulations provide
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details of the rehabilitation requirements and the information to be included in a closure plan. The
latter includes detailed costs for the implementation of the rehabilitation measures and monitoring
programs and the form and amount of financial assurance. Financial surety is required for any advanced
explorationl or mining project.
The Government has also produced a Financial Assurance Policy /ndexthat is available on the Ministry of
Northern Development and Mines website (see Annex 1). This index is designed to aid in the
understanding of the administration of the financial assurance provisions of the Mining Act. Templates
for a Letter of Credit and Surety Bonds are also available to the proponent (Annex 2 and 3).
The Ministry of Northern Development and Mines is responsible for the administration of the Mining
Act. All aspects of mining are handled by the Mines and Minerals Division, Mineral Development and
Lands Branch, including mine closure and financial surety.
3.1.2.Timing
The Mining Act, Sections 139-144, specifies that a closure plan must be submitted, filed and approved
before the start of advanced exploration or mine production. Section 145 then goes on to stipulate that
the financial assurance is required as part of the closure plan. This means that a mining lease can be
issued prior to the filing of the closure plan but that the closure plan, including the financial surety, must
be filed and approved before any work can start on site.
3.1.3.Financial Surety Instruments
The Mining Act, Section 145, identifies the following mechanisms acceptable as financial surety:
Cash
Letter of Credit
Surety Bond
Trust Fund
Corporate Financial Test (Company Guarantee)
Or any other acceptable form of security or guarantee including pledge of assets, sinking fund or
royalties per tonne, at the discretion of the Director of Mine Rehabilitation.
1 "advanced exploration" means the excavation of an exploratory shaft, adit or decline, the extraction of
prescribedmaterial in excess of the prescribed quantity, whether the extraction involves the disturbance
or movement ofprescribed material located above or below the surface of the ground, the installation of
a mill for test purposes or any other prescribed work; ("exploration avancee")
In Ontario there are currently 154 financial surety forms for 144 approved reclamation (closure) plans.
The breakdown of these sureties is as follows:
57% Letter of Credit
12% Corporate Financial Test
26% Cash/Cash Levy
3% Pledge of Assets
2% Surety Bond
It is interesting to note that, even though the Corporate Financial Test only accounts for 18 of the total
number of forms, it accounts for 67% of the funds being held for financial surety.
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3.1.4.Scope of Financial Surety
The Ontario Regulation 240/00, Section 4, states that all those engaged in rehabilitation shall comply
with the standards, procedures and requirements of the Mine Rehabilitation Codeset out in Schedule 1.
The Regulations, Section 11, go on to say that a closure plan shall include at least the items and
information set out in Schedule 2. A summary of the minimum rehabilitative measures referred to in
the Code is given in Section 24. The financial surety must be sufficient to cover the following elements
of closure:
Mining infrastructure
Underground mines
Adits
Open pits
Tailings storage facilities
Surface and ground water monitoring
Acid drainage
Physical stability
Revegetation
The financial surety must also cover any long term care requirements. The legislation does not specify
the inclusion of costs for administration and management of the financial surety but, if the calculations
are based on third party costs, these should be automatically included.
3.1.5.Level of Financial Surety
The level of financial surety is based on the cost of using external contractors. The figures are
established by the proponent, and their consultants, according to Schedules 1 and 2 in the Ontario
Regulation 240/00. They must be based on the market value costs of the goods and services required by
the work. The level of the financial surety must comprise the end of project costs though payments may
be phased in. Incremental contributions may be made via a Sinking Fund. In this instance a schedule
offinancial surety payments would be established so that the full amount had been lodged before the
half life of the mine, or sooner if feasible. Incremental payments are not available for advanced
exploration projects or most higher risk projects.
3.1.6.Tax
There are no tax breaks offered in Ontario for financial sureties. The government does not consider
them as an expense as the funds will be returned to the company when they have completed the
closure plan.
3.1.7.Review
The proponent's senior executives must certify that the financial surety is sufficient to cover the closure
of the site as per the legislative requirements. The government carries out a quick overview and
compares the costs with other projects, but this is not done in any detail. There is no third party
involvement or verification. The Mining Act, Section 143, requires that any amendments made to the
closure plan must include amendments to the financial surety, if the amount needs increasing.
Amendments to the closure plan may be made voluntarily by the proponent or at the request of
theauthorities. The government is in the process of considering introducing a regular review of closure
costs, either every three or five years and, if necessary, adjustment of the level of the financial surety.
This review would be carried out by the proponent and their consultants.
3.1.8.Release
Funds are not available to the proponent for on-going rehabilitation. If a company carries out
progressive rehabilitation the government may agree to return some of the financial surety. This is
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based on a certified technical report stating that the work was carried out in accordance with the
legislative requirements and the current value of the remaining rehabilitation work. Following
successful closure, the funds are returned to the proponent. Some funds may be retained for short term
monitoring costs or long term care.
3.1.9.Experience
The Province of Ontario has had the requirement for a financial surety in place since 1991. Since this
date, five exploration sites and mines have closed that had a fund in place. In the majority of these
cases the companies closed out the site using their own funds and in several cases the financial surety
was returned to the company where there were no long term care requirements. In a couple of
instances companies, which shut down operations due to economic difficulties, had financial sureties
based on a royalty per tonne (Unit Levy). The government was then left with a deficit in the level of
fund required to compete closure of the site.
3.2. NEVADA
3.2.1.Legislation and Governance
Mining on federal land in the United States of America is governed by the 1872 federal law titled 'An Act
to Promote the Development of Mineral Resources of the United States'. Most details regarding the
procedures for a project on federal land are left to the individual state, providing that state laws do not
conflict with federal laws. As 85% of land in Nevada is federal land, the majority of mining projects are
governed by the 1872 law and related United States Codes (USC) as well as Nevada State Law. Most of
the federal land is managed by the Bureau of Land Management (BLM) and the US Forest Service (USFS).
The relevant federal codes for the BLM are USC Title 30, 'Mineral Lands and Mining 1970', Title 43,
Chapter 35, 'Federal Land Policy and Management 1976' and the Code of Federal Regulations (CFR) Title
43, 'Public Lands'. Sections 3809.500 to 3809.560 (CFR 43) outline the financial guarantee requirements
for all mining projects on BLM managed land that cause surface disturbance by more than casual use.
The relevant federal codes for the USFS are the Organic Act 1897, USC Title 16, 'National Forest
Management Act' and 36 CFR, 'Parks, Forests, and Public Property'. 36 CFR 228 requires an operator to
file a plan of operations and, when required, lodge a financial surety. The USFS has produced a
Reclamation Bond Estimation and Administration Guideline (2004) for mining operationsauthorized and
administered under 36 CFR 228A available on its website (see Annex 1). The state legislation relating to
mine closure is contained in the Nevada Revised Statutes (NRS) 445A, Water Pollution Control, and NRS
519A, Land Reclamation. Regulations adopted under these Statutes are incorporated in the Nevada
Administrative Codes (NAC) 445A and 519A. NRS 519A requires that any application for an exploration
or mining project should include a bond or other surety. The details of this obligation are contained in
NAC519A. Projects of less than 5 acres, or mine production of less than 36,500 tons (includes all ore,
waste etc), are not required to lodge a financial surety.
The Nevada State Government has signed a Memorandum of Understanding with the federal land
managers (Bureau of Land Management and US Forest Service) to coordinate the administrative and
enforcement obligations pertaining to the reclamation of land disturbed by exploration or mining
activity. The agency responsible for site reclamation and the financial surety is the Nevada Bureau of
Mining Regulation and Reclamation, Division of Environmental Protection, Department of Conservation
and Natural Resources and NRS/NAC519A\s the primary legislation. This arrangement avoids
duplication.
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3.2.2.Timing
The NRS/NAC 519Arequ\res that an application for an exploration or mining permit should include in
writing the assumption of responsibility for the reclamation of the site, a reclamation plan and evidence
of a financial surety. The exploration or mining permit, and the reclamation permit, may be issued but
are not effective until the financial surety has been accepted.
3.2.3.Financial Surety Instruments
The type of financial surety accepted by Nevada State Law is specified in the NAC 519A.
They include the following:
Trust Fund
Surety Bond
Letter of Credit
Insurance
Corporate Guarantee
Or any combination of these mechanisms. Large companies may obtain a state Corporate Guarantee for
up to 75% of the value of the surety if they can meet regulatory criteria to demonstrate adequate
financial health. In addition, the Nevada Bureau administers a Bond Pool that guarantees up to US$ 3
million reclamation costs for small companies that have been refused commercial support. Smaller
operations may also be allowed to fund the surety with a Cash Deposit. The recently revised Section
3809 Regulations (43 CFR) do not allow any new or expanded Corporate Guarantees on BLM managed
land, though existing guarantees are recognized.
Of the 214 mining and exploration projects that currently have a financial surety in place the breakdown
is as follows:
23% Surety Bond
56% Letter of Credit
17% Corporate Guarantee
2% Cash Deposit
1% Certificate of Deposit
1% Bond Pool
The Nevada Bureau currently holds US$ 785 million in mining reclamation bonds.
3.2.4.Scope of Financial Surety
The Nevada legislation states that the financial surety must be sufficient to cover the cost of all aspects
of physical closure and include administrative and contingency costs. The physical closure includes:
The removal of all plant and equipment
The demolition and disposal of infrastructure
Stabilization and regrading of surfaces
Erosion control
Revegetation
Process fluid stabilization
Interim fluid management
The funds must also cover ongoing or long term care required to maintain the effectiveness of
reclamation or are necessary in lieu of reclamation. The stabilization of fluids from non-process
components (for example seepage from waste rock dumps) and unspecified contingencies are not
included.
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3.2.5.Level of Financial Surety
The financial surety must be based on third party costs using government rates. The level of surety is
established by the proponent, in accordance with the regulatory requirements, and all sources of
estimates and calculations must be submitted to the Nevada Division of Environmental Protection.
The Bureau has produced a Reclamation Bond Checklist in order to assist the proponent in calculating
the engineering and environmental costs. This document specifies that the administrative costs should
be established at 10-15% of the contract cost. The department recommends that all operators should
use the Nevada Standardized Reclamation Estimator Model to demonstrate how costs were established.
The model is available on its own website (see Annex 1).
Incremental payments for the financial surety are accepted as long as the amount of the fund at any
given time covers the outstanding reclamation obligation. These payments are usually only applicable
to larger projects and payment would be made at each subsequent phase of operations.
3.2.6.Tax
The state of Nevada, in line with federal policy, allows a deduction of the financial surety for tax
purposes. The expense of maintaining a financial surety (premiums etc) are counted as an expense and
are tax deductible as well as actual expenditure on rehabilitation. The company is allowed to distribute
the financial surety payments over a number of years for tax reduction purposes.
3.2.7.Review
The proponent submits the reclamation cost estimates to the Nevada Division of Environmental
Protection. These costs are reviewed internally or jointly with the federal Bureau of Land Management
or US Forest Service if public land is involved. They are also subject to public review and comment but
are not verified by a third party. The level of financial surety may be reviewed and revised at anytime.
A full review is carried out at least once every three years and whenever the reclamation plan is
modified. If the proponent is paying the financial surety in increments then more frequent reviews are
carried out.
3.2.8.Release
Funds are not available to the proponent for on-going rehabilitation but, as discrete steps in the
reclamation plan are completed, partial release of the surety may be allowed. Following successful
closure the funds are returned to the proponent unless there is a long term outstanding obligation such
as perpetual water treatment. In this case a special arrangement may be made such as a self-
perpetuating fund.
3.2.9.Experience
The State of Nevada initiated the requirement for a financial surety in 1990. Since this date about 75
exploration sites and mines have closed that had a fund in place. In addition, about 25 sites have been
abandoned because of the failure of the operator. In the majority of these latter cases, the funds were
not sufficient to pay for all the required reclamation, and the State had to priorities the work and find
alternative funds to complete the closure requirements. The main reason why these funds were
insufficient to carry out all the necessary reclamation work was they were older sites, run by financially
marginal operators that had inadequate surety to begin with. On most of these sites, the regulatory
agencies were working to increase the surety, but the operators were unable or unwilling to do soprior
to bankruptcy and abandonment.
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3.3. QUEENSLAND
3.3.1.Legislation and Governance
The Mineral Resources Act 1989prov\des the framework for the application and granting of mining titles.
The Environmental Protection Act 1994requ\res all mining related activities to be issued with an
Environmental Authority and for mining projects to produce an Environmental Management Plan, which
must include a rehabilitation program. In addition, both laws have provisions for a financial security to
be lodged though neither specifically mentions closure plans.
In 2001 the Queensland Government transferred the responsibility for the environmental regulation and
management of mining from the Department of Mines and Energy (DME) to the Environmental
Protection Agency (EPA). This required the repeal of the environmental provisions contained in the
Mineral Resources Actand the insertion of a new chapter in the Environmental Protection Act. These
changes were implemented by the Environmental Protection and Other Legislation Amendments Act
2000. Under this new legislation, the Minister of Mines lost most powers in the environmental decision
making process but retained the right to make representations if an objection is lodged against a new
mining project or a refusal is likely.
The Minerals Resources /Actrequires that a 'security' is deposited prior to a mining title being issued.
This is for non-compliance with the title conditions and 'improvement restoration' but no longer covers
rehabilitation. The Environmental Protection /Actrequires the rehabilitation program to include the
proposed amount of the financial surety for larger projects while the Codes of Environmental
Compliance require a financial surety for small projects. A financial surety is required for all mining titles
but the proponent may lodge a single surety to cover the requirement of both the Mineral Resources
/Actand the Environmental Protection Act.
The DME is responsible for granting, and for the surrender of, all mining titles. The EPA is responsible
for granting, and for the surrender of, an Environmental Authority. The DME is responsible for the
receipt and management of both the security under the Mineral Resources /Actand the financial surety
under the Environmental Protection Act. Under the Environmental Protection Act, the EPA has produced
a number of Guidelines and Codes which contain the detail of the environmental management of all
mining projects. Of particular relevance is Guideline 17: Financial Assurance for Mining Activities (2003).
All legislation is available through links on the EPA website (see Annex 1).
3.3.2.Timing
An application for a mining title must be accompanied by a completed application for an Environmental
Authority (mining activity). For all mining licenses, except a mining lease, the financial surety must be
lodged before the title is granted. In the case of a mining lease, the financial surety does not need to be
lodged until after the mining title and the Environmental Authority have been granted. However, it
must be in place before any activity proposed in the Plan of Operations is carried out on site.
3.3.3.Financial Surety Instruments
The Environmental Protection Actg\ves the EPA discretion to determine the form of financial surety.
Guideline 17 specifies that the acceptable forms of financial surety include:
Cash
Bank Guarantee (Letter of Credit)
Insurance Bond
Queensland currently has about 1,000 financial sureties for mining claims, 1,000 for exploration permits,
200 for mineral development licenses and 1,200 for mining leases. Approximately 70% of the mining
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lease sureties are Cash and 30% Bank Guarantees, though the latter represent 98.5% of the total
amount of financial surety held by the department.
3.3.4.Scope of Financial Surety
The Queensland legislation does not specify what aspects of mine closure are encompassed by the term
rehabilitation or what should be covered by the financial surety. The elements identified by the EPA
that could be included under the term rehabilitation are:
Removal of plant and equipment
Recontouring waste dumps and pits
Capping tailings storage facilities and other hazardous materials
Breaching dams and restoring water courses
Making slopes and openings safe
Replacing topsoil
Revegetation
Monitoring water and air quality, erosion rates, vegetation
Conducting contaminated land surveys
Implementing site management plans
The Amendment Act 200and Guideline 17 specify that maintenance and monitoring costs should be
included in the financial surety.
In January 2006, new provisions relating to residual risk payments were introduced allowing for a
separate cash payment to be made when the Environmental Authority is surrendered or when
progressive rehabilitation is certified. This residual risk payment covers future maintenance and
remedial work.
3.3.5.Level of Financial Surety
The financial surety for exploration and small (standard) mining projects is based on the total area of
disturbance and the risk associated with the rehabilitation. A simplified version of the table from
Guideline 17 is shown below.
Table 3.3.1: Financial Surety for Standard Exploration and Mineral Development
Projects
Total Area ofDisturbance
Less than 1 hectare
1 to 4 hectares
4 to 10 hectares
Low Risk: simple straight
Forward rehabilitation
A$2,500
A$10,000
A$20,000
High Risk: Difficult rehabilitation
A$5,000
A$20,000
A$40,000
The level of financial surety for a non-standard project is calculated on a project specific basis, even
though one project may include a number of leases. It is calculated by using a unit rehabilitation cost
multiplied by the estimated disturbed area, based on using third party contractors. The amount is
established by the proponent. The Code of Environmental Compliance for Mining Lease Projects
contains a worked example to assist the proponent in establishing the costs. The maintenance and
monitoring costs are calculated at 10% of the total rehabilitation costs.
The financial surety system allows a discount of 10% to 75% based on previous environmental
performance. The maximum discount will be reduced to 30% in January 2009. The performance criteria
and discount rates are included in Appendix B, Table 2 of Guideline 17.
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The financial surety can be paid incrementally, established by estimating the maximum level of
disturbance for each planning period covered by the Plan of Operations. This period can be anything
between 1 and 5 years.
3.3.6.Tax
A 10% goods and services tax is payable on all taxable supplies which can be reclaimed if the
administering authority makes a claim on the financial surety.
3.3.7.Review
When submitting a financial surety, the holder of the Environmental Authority must also certify that the
correct procedures were used. The holder may decide to go to an outside audit but third party
verification is not required. However, the penalties for providing false or misleading information can be
quite severe (up to two years in prison). The financial surety is reviewed whenever a mining title is
renewed or, in the case of a mining lease, when a new Plan of Operations or Environmental Authority is
amended or replaced. The time between reviews is governed by the type of mining title. The EPA has
the power to reassess the financial surety at any time provide it has good reason to do so. At any of
these reviews the level of financial surety can be changed.
3.3.8.Release
The financial surety is not available to the holder of the Environmental Authority for ongoing
rehabilitation. However, when a new Plan of Operations plan is submitted, and the rehabilitation
liability recalculated, work that has been completed will no longer be included in the total.
The Environmental Authority must be surrendered or cancelled before a mining title can be
relinquished. An application for the surrender of the Environmental Authority requires the holder to
also submit a final rehabilitation report. The financial surety remains in place until the EPA is satisfied
that no further claim is likely to be made against it. At this stage a residual risk payment will be
established and the surety surrendered.
3.3.9.Experience
A number of small and medium sized mines have closed since the financial surety system was
introduced to Queensland. In some cases the mining title was revoked because of financial failure or
non-compliance with the legislation. Several of these have required the government to carry out the
rehabilitation work and in two instances the costs have been more than A$ 1 million. Most mines that
close through a planned closure process have not required any additional work.
3.4. VICTORIA
3.4.1.Legislation and Governance
In Victoria all mining activity is regulated by the Mineral Resources (Sustainable Development) Act
1990and the Extractive Industries Development Act 1995and associated Regulations. Both Acts contain
the requirement for a Rehabilitation Plan and a financial surety, known as a rehabilitation bond the
details for which are contained in the draft Guidelines, Establishment and Management of Rehabilitation
Bonds 2007. These Guidelines will replace the 1997 Guidelines. The Extractive Industries Development
deregulates quarrying activity while the Mineral Resources (Sustainable Development) Act regulates the
remainder of the mining industry.
The Mineral Resources (Sustainable Development) Actestab\\shes a three stage approval process for
mining projects; the Mining License; the Work Plan; and the Work Authority. The Rehabilitation Plan
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must be submitted as part of the Work Plan. Work on site cannot start until a Work Authority has been
granted by which time a rehabilitation bond must have been lodged.
A recipient of a mining license must also follow the planning permit process regulated under the
Planning and Environment Act 1987. The application for the planning permit must include details of
proposed rehabilitation. Under the Environment Effects Act 1978, the Minister for Planning may
determine that an Environment Effects Statement is required. This statement should also contain the
rehabilitation plan.
The Department of Primary Industries (DPI), Minerals and Petroleum Division is responsible for the
administration of the Mineral Resources (Sustainable Development) Act and the Extractive Industries
Development Act. The rehabilitation plan must be approved by the DPI and the rehabilitation bond
lodged with the Minister for Resources.
3.4.2.Timing
Once a mining title has been issued, in the case of a mining license, the proponent has six months to
submit a Work Plan which also includes the rehabilitation plan. This is reduced to three months for an
exploration license. The rehabilitation bond must then be lodged before the Work Authority is granted
and prior to any work starting on site.
3.4.3.Financial Surety Instruments
The only form of financial surety accepted by the DPI is a Bank Guarantee (Letter of Credit).
3.4.4.Scope of Financial Surety
The Victoria legislation does not specify what aspects of mine closure are encompassed by the term
rehabilitation or what should be covered by the financial surety. The Mineral Resources Development
Regulations 2002, Schedule 13state that a rehabilitation plan should include the following:
Concepts for the end utilization of the site
A proposal for the progressive rehabilitation and stabilization of extraction areas, road cuttings
and waste dumps, including re-vegetation species
Proposals for the end rehabilitation of the site, including the final security of the site and the
removal of plant and equipment.
The 2007 Guidelines provide a manual for common rehabilitation principles and include possible
acceptable methods of treatment. Appendix C.3: Generally Accepted Closure Methods also provides
guidance, though rehabilitation plans are done on a site by site basis.
3.4.5.Level of Financial Surety
The Minister for Resources must determine the level of financial surety required and this is done in
consultation with the Department of Sustainability and Environment if Crown land is involved. For
licenses on private land consultation is with the local council and the landowner. The surety is
calculated by the DPI environmental officers, following receipt of the rehabilitation plan, and is based on
utilizing third party contractors. The financial surety also includes 10% for project management, 10% for
contingency costs and 5% for monitoring. The level of financial surety is established using standard
rates for simple operations and the Rehabilitation Bond Calculator (available on the DPI website; see
Annexl) for larger, more complex sites. This Calculator is based on the URS/GSSE Rehabilitation Cost
estimate Tool (see Chapter 5.5). The final amount of the financial surety is subject to consultation with
the proponent but must reflect the actual cost of the proposed rehabilitation.
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There is no facility for the initial financial surety to be paid in increments. However, where a substantial
surety increase is required, and the proponent has demonstrated that the increase might have a serious
impact on the viability of the project, incremental payments of the additional surety may be approved.
3.4.6.Tax
The legislation does not specify the tax position for funds paid into a financial surety.
3.4.7.Review
There is no third party involvement is establishing the financial surety and no process of verification.
The DPI has written procedures for establishing bonds which are subject to an internal audit. Individual
assessments are checked in all cases by a second officer and further checks apply to the larger sureties.
The DPI has also had an external audit of the surety systems by third party auditors and by the State
Auditor General.
The frequency that a financial surety is reviewed ranges from every two years for high risk sites to every
ten years for low risk sites based on the table contained in the Guidelines. In addition, a financial surety
would be reviewed if the proponent changed the work plan or a transfer of assets. The Minister may, at
any time, require the proponent to increase the level of the financial surety if the Minister is of the
opinion that the existing amount is insufficient. In all cases the review is carried out by the DPI.
According to the 2007 Guidelines, a proponent is now required to submit an annual assessment of the
current rehabilitation liability at the end of each reporting period. The assessment will not be used to as
an automatic trigger for a financial surety adjustment but may lead to the rescheduling of the next
departmental review.
3.4.8.Release
The financial surety funds are not available to the proponent for on-going rehabilitation. The funds may
be partially released where progressive rehabilitation has been successful. Following the successful
rehabilitation of the site all of the financial surety is returned to the proponent following consultation
with the relevant groups.
3.4.9.Experience
In the state of Victoria there are approximately 300 financial sureties in place for operating mines and
180 for exploration licenses, not including quarries of which there are a further 900. All of these
financial assurances are in the form of Bank Guarantees (Letter of Credit). Over the last ten years, mines
that have closed with a financial surety in place have generally had sufficient funds to cover the closure
costs.
The Minerals Council of Australia has commented on the 2007 draft Guidelines and has made the
following recommendations:
That the form of financial surety should be addressed;
That the initial financial surety should match the liability of the formal review period
and not maximum liability for the life of the project; and
That clarity is required regarding self-assessments using the Calculator and formal
bond reviews.
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3.5. BOTSWANA
The Government of Botswana is in the process of initiating financial surety requirements for mining
projects. The Ministry of Minerals, Energy and Water Resources is actively encouraging mining
companies to establish financial sureties for closure separate from the company's other accounts. A
discussion regarding the possibility of the government agreeing to tax concessions for the funds is
currently taking place. To date, although some of the companies have agreed in principle, no financial
sureties have been established.
3.5.1.Legislation and Governance
The Mines and Minerals Act 1999prov\des the framework for the application and granting of a mining
license. Part IX of this Act covers the environmental obligations which include the requirement for the
holder of a mining license to carry out on-going rehabilitation of the site and to restore the land
substantially to the original condition, as far as is practicable and in a manner acceptable to the Director
of Mines, at the end of operations. The same section also provides for the proponent to make adequate
financial provisions for compliance with the obligations contained in this section.
The Mines, Quarries, Works and Machinery Act 1978, the Waste Management Act 1998 and the
Environmental Impact Assessment Act 2005 also all contain additional mine closure and rehabilitation
requirements. However, none of these specifically mention financial surety. The Guidelines for
preparing Environmental Impact Assessment Reports 2003 include a financial provision that require a
proponent to provide details regarding the ability to fund the Environmental Management Program
which includes decommissioning and closure. The Ministry of Minerals, Energy and Water Resources,
Department of Mines is responsible for the implementation of mine closure. It is proposed that the
Department of Mines and the Ministry of Finance and Development are jointly responsible for the
implementation and management of the financial surety for mining projects. The Ministry of Finance
isinvolved because it will be housing the institution that will host the fund.
3.5.2.Timing
The financial surety must be in place before the mining title is granted.
3.5.3.Financial Surety Instruments
The form of financial surety is not identified in the legislation and the government is still deciding which
types will be acceptable.
3.5.4.Scope of Financial Surety
The legislation does not specify what aspects of mine closure are included by the term rehabilitation or
what should be covered by the financial surety. The Department of Mines states that, by default as part
of the approved closure program, the financial surety should encompass the closure objective and plan,
all rehabilitation costs and post closure monitoring costs.
3.5.5.Level of Financial Surety
The level of financial surety is currently based on existing estimated costs for all elements included in
closure activities. The Department of Mines intends to develop guidelines to provide a basis for the
calculations.
3.5.6.Review
The financial surety is calculated and submitted by the proponent and then reviewed and approved by
the Department of Mines. The level of financial surety may be reviewed and revised whenever there is a
change in the operating plan. A full review will be carried out every five years and then a year prior to
closure by the department and the proponent.
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3.5.7.Release
The method for the release of the financial surety has not yet been established.
3.5.8.Experience
There are currently no financial sureties in place.
3.6. GHANA
3.6.1.Legislation and Governance
The Mining and Minerals Law 1986prov\des the framework for the application and granting of
exploration and mining titles. Section 66 of this Law states that a certificate of surrender (of the license)
will not be granted if the Secretary "is not satisfied that the applicant will surrender the land in a
condition which is safe and accords with good mining practice." The Environmental Protection Agency
Act 1994makes no specific reference to mining but does allow for regulations to be drawn up to provide
for "standards and code of practice relating to the protection, development and rehabilitation of the
environment".
The Environmental Assessment Regulations 1999, developed under the Environmental Protection
Agency Act, require that an environmental impact statement for mining shall include reclamation plans
and the proponent post a reclamation bond. The Mining and Environmental Guidelines 1994 state that
an exploration site should be rehabilitated to a condition consistent with the pre-existing character and
utility of the area within three months of abandonment. The Guidelines also require that an initial
reclamation plan should be submitted as part of the environmental impact assessment and
environmental action plan and gives the government the right to request a reclamation bond. The final
reclamation plan must be submitted within the first two years of operation. These Guidelines have been
updated (2007) but are not yet available for general release. The Minerals Commission and the
Environmental Protection Agency (EPA) are jointly responsible for mine closure and the EPA is
responsible for the implementation and management of the financial surety.
3.6.2.Timing
The legislation does not specify when the reclamation bond should be put in place. The EPA currently
requires that the bond is lodged after the mining license has been granted.
3.6.3.Financial Surety Instruments
The legislation does not specify which financial surety instruments are acceptable. The EPA lists the
following mechanisms as being available to the proponent:
Bank Guarantee
Letter of Credit
Performance Bond
Insurance
Cash Deposit
There are currently ten projects that have financial sureties in place. For the majority of these projects
approximately 80% to 90% of the surety is in the form of a Bank Guarantee, the remainder is Cash. One
company has an Insurance Scheme.
3.6.4.Scope of Financial Surety
The Mining and Environmental Guidelines specify the minimum standards required for the reclamation
plan though the legislation does not specify what aspects of mine closure should be covered by the
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financial surety. These are defined by the EPA as all elements of closure including the transfer of
immovable assets to the local authority, the return of the site to pre-mining land use status and the
physical and chemical stability of the reclaimed site.
3.6.5.Level of Financial Surety
The level of financial surety is based on the full reclamation costs. It is not specified whether this level is
the cost of the work being carried out by the proponent or by a third party.
3.6.6.Review
The financial surety is calculated on the basis of the reclamation plan by the proponent and then
submitted to the EPA for approval. Once in place a financial surety is reviewed by the EPA every two
years. At the time of the review the level of surety may be adjusted depending on the value of
rehabilitation work done by the company during the review period.
3.6.7.Release
The funds contained in the financial surety are not available to the proponent for on-going
rehabilitation. The surety is retained for three years following the completion of the reclamation plan
and then returned to the proponent in full. This period is extended to seven years if there is the
potential for acid mine drainage.
3.6.8.Experience
So far one mining project has been closed that had a financial surety in place. The level of financial
surety was sufficient to fund all closure costs.
3.7. PAPUA NEW GUINEA
The Government of Papua New Guinea is in the process of initiating financial surety
requirements for mining projects. The previous Department of Mining, now the Department
of Mineral Policy and Geohazard Management, produced a draft Green Paper on Mine
Closure Regulation and Guidelines that are still under review. The only project that
currently has a financial surety in place is the Ok Tedi Mine, which has its own legislation.
3.7.1.Legislation and Governance
The Mining Act (1992) and associated Regulations provide the framework for the application and
granting of mining titles. Amendments to the Mining Act are currently being prepared to insert
provisions that require all holders of exploration and mining titles to carry out rehabilitation prior to
relinquishing the title. At present there is no requirement in the Mining Act for the proponent to
produce any form of financial surety.
The Government is currently drawing up Mine Closure Regulation and Guidelines, developed under the
Mining Act. The 2005 draft requires that mine closure planning should be an integral part of all mining
operations and that the proponent must establish a Mine Closure Security and a Mine Closure Trust
Fund. This requirement is only for mining licenses. Exploration licenses and alluvial mining leases are
addressed in the Environmental Code for Mining developed under the Environment Act 2000and the
Mining Act. The Environment Act allows for an environmental bond to be lodged for any activity that
requires an environmental permit.
Discussions are still taking place to establish the exact interaction between the Mine Closure Regulation
and Guidelines and the Environment Act. Current thinking is that, if a financial surety is required under
the jurisdiction of the Mining Act, then no further cover will be required under the Environment Act.
However, small alluvial mining leases will still be covered by the Environment Act.
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The draft Mine Closure Regulation and Guidelinesa\\ow for a proponent to be exempt from the
requirement of providing a financial surety if:
"it is impracticable for the developer to provide security or such security cannot be provided at
an economic cost (having regard to the scale of mining and the financial resources available to
the developer); and
The benefits to the public welfare from the development of the mineral resources outweighs
the risk from permitting the project to proceed without sufficient security being provided to
support mine closure obligations."
The Mineral Resources Authority (MRA) is responsible for the administration of the Mining Actand the
Department of Mineral Policy (DMP) is responsible for formulating policies relating to mining activities.
This administration is carried out in coordination with the Department of Treasury, Finance and Planning
for the financial aspects of the legislation.
The Department of Environment and Conservation (DEC) is responsible for the administration of the
Environment Actand the environmental bond. Both the MRA and DEC will review and approve the mine
closure plan whilst the DMP will approve policies relating to mining activities including mine closure.
The Ok Tedi mine is governed by the Mining (Ok Tedi Agreement) Act 1976and is amended by
Supplemental Agreement Acts. The Mining (Ok Tedi Ninth Supplemental Agreement) Act 2001, also
known as the Mine Closure and Decommissioning Code 2001, establishes the requirement for both
closure plans and financial surety. This case is discussed in more detail under the heading 'Experience'.
3.7.2.Timing
The mine closure plan should be submitted with the feasibility study and includes estimated costs for
closure and the financial provisions. Both the security for mine closure costs and the Mine Closure Trust
Fund must be established before the commencement of construction of the mine but after the mining
license has been granted. The legislation does not specify when the environmental bond should be
lodged.
3.7.3.Financial Surety Instruments
The draft Mine Closure Regulation and Gt//de//nesidentifies the following forms of financial surety as
acceptable:
Bank Guarantee
Parent Company Guarantee
Insurance Policy
Cash Deposit
A Mine Closure Trust Fund may be held off-shore at the Mining Advisory Board's discretion. The
Environment Actstates that the environmental bond may be submitted as a Bank Guarantee, Insurance
Policy or any other form of security approved by the Director of Environment.
3.7.4.Scope of Financial Surety
The Mine Closure Security will be established at the start of operations and is designed to cover the
costs of the technical and physical rehabilitation aspects of premature mine closure. The Mine Closure
Trust Fund will accrue during the life of the project and will cover the actual costs of mine closure
including decommissioning, rehabilitation and post closure monitoring. The Mine Closure Security will
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be reduced as the Mine Closure Trust Fund increases. It has not been specified what will be included in
the environmental bond.
Any holder of an alluvial mining lease will be required to pay a levy on the sales revenue derived from
the activity. This levy will accumulate in a special fund and will be used to remedy a failure by the
alluvial miner to comply with the closure guidelines which includes preservation of the environment and
removal of mining equipment. It is interesting to note that the draft Mine Closure Regulation and
Guidelinesstate that a different mechanism will be established to cover the social implications of
closure. This is discussed in Chapter 5.9.
3.7.5.Level of Financial Surety
The level of financial surety is based on the estimated cost of closing the mine and should incorporate
premature closure.
3.7.6.Tax
The proponent may write down the contributions to the financial surety as an expenditure relating to
mine closure which are tax deductible. Any funds removed from the financial surety other than for the
purpose of implementing closure obligations would be recognized as assessable income and subject to
tax. Any interest that accumulates in the fund will be used for mine closure. In addition, rehabilitation
costs during commercial production may be written down as direct operating costs for tax purposes.
3.7.7.Review
The initial mine closure plan and financial surety is reviewed by the mining and Environment
departments. It will then be subject to a periodic audit during the life of the mine by the Project Liaison
Committee; every two years, if the remaining mine life is less than ten years, and every five years when
the remaining mine life is more than ten years. It will also be reviewed if any material changes are made
to the operating plan. These reviews will include the financial surety and take into consideration any
changes that are required. The Director of Environment or the Mining Advisory Council may also
request a review at any time.
3.7.8.Release
The financial surety funds are not available to the proponent for on-going rehabilitation. Once the
agreed completion criteria for closure have been achieved to the satisfaction of the Government, the
MRA will issue a closure certificate which is the mechanism for the formal relinquishment of the mining
lease. However, depending on the post closure monitoring requirements, as specified in the mine
closure plan, the mining lease may not be relinquished for up to 10 years. During this period the
proponent is responsible for any additional rehabilitation work. Financial surety is required to support
these obligations either through the original security or by provision of a specific fund.
3.7.9.Experience
There are currently no financial sureties in place under the above process. However, the Ok Tedi Mine
Closure and Decommissioning Code (2001) provides the legal framework for the preparation of a mine
closure plan for the Ok Tedi mine. This plan must be updated every 2 years. The Code also states that
the company must establish a financial assurance to cover the costs of closure include in the plan.
The 2006 draft Mine Closure Plan2 produced by Ok Tedi Mining Ltd (OTML) consists of a detailed
description of the physical closure process and the costs involved. It includes the demolition and
removal of infrastructure, site rehabilitation, monitoring and aftercare for up to 6 years and redundancy
payments. It also includes a 20% contingency and an annual escalator of 3% up to 2013, the forecast
mine closure date. The total financial assurance currently stands at US$ 126 million, of which US$ 75.6
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has been contributed by OTML (August 2008). The Funds contributed by Ok Tedi are tax deductible, and
the interest earned is tax exempt, and are held in a Trust account offshore, administered by a UK bank.
The costs were subject to an external audited review in 2003 and an internal unaudited review in 2006.
The mine closure plan includes a social and economic report that focuses on the communities that will
be most impacted by mine closure. OTML has established a number of trust funds designed to reduce
the immediate impact of premature or planned closure. These funds receive the dividend entitlements,
compensation and development money. The company is currently administering 13 Trusts and 7 village
funds. There are slightly different arrangements for each fund but in general:
Some have a cash component;
Most have a development component - used for infrastructure, education, social
activities etc.;
All have an investment component (future generations fund); and
Most have tax (GST) exemption status.
All funds are banked in Trust accounts in Papua New Guinea and a Board of Trustees hasbeen
established for each fund. The Boards comprise representatives from National andProvincial
Government, Council of Churches, OTML and the communities. Resolutionspassed by the Board of
Trustees must be unanimous. Up until 2007, OTML has contributed2 The Mine Closure Plan is available
on the OTML website (see Annex l)a total of K800 million to the various trusts. The contributions are
made each year in accordance with the agreements. A Trust Administration Department is in place to
manage the use of these funds and OTML is looking at how these trusts will be administered post
closure to ensure remaining funds continue to benefit the beneficiaries into the future.
3.8. SOUTH AFRICA
3.8.1.Legislation and Governance
In South Africa, the Minerals and Petroleum Resources Development Act (MPRDA) 2002, which came
into effect in 2004, provides the regulatory environment for the minerals industry. It is supported by
the Minerals and Petroleum Resources Development Regulations 2004. Environmental management
principles are established in the National Environmental Management Act 1998 (NEMA) and are
applicable to all prospecting and mining operations. These serve as guidelines for the interpretation,
administration and implementation of the environmental requirements of the MPRDA.
The MPRDA includes the obligation for all prospecting and mining operations to submit an
environmental management plan or program and to rehabilitate the affected environment and to make
a financial provision for this rehabilitation or management of negative environmental impacts. The 2004
Regulations specify that an environmental management plan or program must include closure and
environmental objectives and a financial provision. This is commonly referred to as the preliminary
mine closure plan which is finalized nearer to the decommissioning date.
The environmental aspects of the MPRDA are the responsibility of the Minister of Minerals and Energy
and administrated by the Department of Minerals and Energy (DME) at both the national and regional
level. Recent amendments to the MPRDA and NEMA, currently waiting for parliamentary approval, will
transfer the environmental responsibilities including some closure and financial provisions to the
Department of Environmental Affairs and Tourism.
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3.8.2.Timing
According to the MPRDA, applicants for a reconnaissance permission, prospecting right, mining right or
mining permit must submit, and obtain approval for, an environmental management plan or program
prior to the title coming into effect. This plan or program must include details of the financial surety
which has to be established prior to approval being granted.
3.8.3.Financial Surety Instruments
The 2004 Regulations specify that the financial surety instruments available to the proponent are:
Trust Fund
Bank Guarantee
Cash Deposit
Or any other method determined by the Director General of the DME. The major mining companies in
South Africa generally use trust funds and centralized them at a corporate level.
3.8.4.Scope of Financial Surety
The financial surety is assessed by the DME using the Guideline Document for the Evaluation of the
Quantum of Closure-Related Financial Provision Provided by a Mine (2005). This Guideline provides a
generic approach to the determination of the financial surety for all essential closure components which
includes removal of infrastructure, sealing of voids, rehabilitation, water management and post closure
maintenance and aftercare. The calculations are based on third party costs and include 12.5% for
preliminary and general management and administration and 10% contingency. A master unit rate is
determined depending on risk class and area of sensitivity.
3.8.5.Level of Financial Surety
The level of financial surety is based on the assumption that the rehabilitation work will be carried out
by a third party employed by the DME. It is not stated but implied that the financial surety may not be
paid incrementally. The Evaluation Guidelines include a detailed breakdown of the closure costs with a
master rate for each component and a multiplication factor depending on the risk class and area
sensitivity. The master rates are updated annually. It has been proposed that prospecting operations
attract a flat rate financial surety as follows:
R 20,000.00 per hectare in low sensitivity environments
R 50,000.00 per hectare in medium sensitivity environments
R 80,000.00 per hectare in high sensitivity environments
Where every hectare does not just refer to the disturbed areas but to the whole prospecting area as
identified on the title.
3.8.6.Tax
The financial surety should include 14% VAT. Contributions to a trust fund are tax deductible as running
costs. The trust funds are exempt provided they are used for the purpose of rehabilitation after
decommissioning.
3.8.7.Review
According to the MPRDA, the Minister is responsible for both the assessment of environmental liability
and financial surety and may appoint an independent assessor if deemed necessary. This function has
been devolved to the regional offices. The Act states that the proponent must assess their
environmental liability annually and increase the financial surety to the satisfaction of the Minister.
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3.8.8.Release
The financial surety is not available for ongoing rehabilitation. It is released when the Minister has
issued a closure certificate but a portion may be retained to cover latent or residual environmental
impacts.
3.8.9.Experience
There are some examples of mines closing down prematurely but they were operating under the old
regulations. Currently there is generally reluctance on the part of the MPRDA to issue closure
certificates.
3.9. SWEDEN
3.9.1. Legislation and Governance
At present the Minerals Act 1992and the Environmental Code 199Sboth contain clauses relating to mine
decommissioning and rehabilitation and the provision for a financial surety but in very general terms.
However, the Environmental Code provisions are only applied in practice for quarrying operations. The
mining industry has been dominated by three major mining companies that have taken responsibility for
mines they have closed negating the need for financial sureties.
The legislation provides very little guidance on what elements should be included in the financial surety,
how to calculate the amount or any other details. Over the past five years a number of financial sureties
have been required following judicial proceedings but the way in which the provisions have been
applied has been quite inconsistent.
The government recently adopted the European Union (EU) Directive 2006/21/EC on the Management
of Waste from Extractive /ndt/sfr7'es,which will be implemented in national law in 2008 by amendments
to the Environmental Code. The Directive specifically states the requirement for a mine closure plan,
rehabilitation and monitoring and the provision of a financial surety. Technical Guidelines (MonTec
2007) for establishing a financial surety have been developed for the European Commission in
accordance with Article 22 of the Directive. The Directive is discussed in more detail in Chapter 3.10.
The government body in Sweden responsible for mine closure and the financial surety is the
Environmental Court.
3.9.2. Timing
The establishing of a financial surety is part of the licensing procedure and operations may not start until
the fund is in place.
3.9.3. Financial Surety Instruments
The Environmental Codespecifies the acceptable financial surety instruments as a Bank Guarantee or a
Pledge of Assets. Cash Funds are also admissible. There are currently 4 or 5 mines with a financial
surety in place with an equal division of Bank Guarantees and Cash Funds.
3.9.4. Scope of Financial Surety
The existing legislation does not specify which elements of closure should be included in the financial
surety. In principle, all measures included in the closure plan are taken into consideration.
3.9.5. Level of Financial Surety
The existing legislation does not specify the required level of financial surety, how the figures should be
established or what aspects should be included.
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3.9.6. Review
The level of financial surety is calculated and proposed by the proponent and is reviewed bythe
Environmental Court, other relevant authorities and stakeholders as part of the licensingprocedure.
There are currently no legal requirements for the financial surety to be reviewed on a regularbasis apart
from when a permit comes up for renewal. However, the permitting authoritymay request additional
funding if required. The EU Directive requires a waste management plan to be reviewed every five years
with the size of the financial surety adjusted accordingly. This review will most likely be carried out by
the County Administration and then approved by the Environmental Court.
3.9.7. Release
The funds are not available to the proponent for on-going rehabilitation. The funds are released when
reclamation has been completed.
3.9.8. Experience
To date no operations have closed with a financial surety in place.
3.10. EUROPEAN UNION
3.10.1.Legislation and Governance
The European Union produces legislative acts, known as Directives, which require member states to
achieve a particular result without dictating the means of achieving that result. There are a number of
ED Directives that are applicable to mining operations; the most specific is EU Directive 2006/21/ECon
the Management of Waste from Extractive /ndt/sfr/eswhich had to be implemented by 1st May 2008.
Article 5 of this Directive requires that an operator draws up a waste management plan which should
contain the proposed plan for closure, including rehabilitation, after-closure procedures and monitoring.
Article 14 establishes the need for a financial surety, known as a financial guarantee, to cover the
accumulation or deposit of waste. The term 'waste' is defined in Article l(a) of European Community
Council Directive on Waste 75/442/EECand encompasses "any substance or object which the holder
disposes of or is required to dispose of". EU Directive 2006/21/ECamends EU Directive 2004/35/EC on
environmental liability with regard to the Prevention and Remedying of Environmental Damage. The
latter refers to the 'polluter pays' principal and requires that a financial surety be used to cover the
responsibilities under this Directive. Both Directives are supported by a reference document produced
by the European Commission in July 2004, Best Available Techniques for Management of Tailings and
Waste Rock in Mining Activities, which includes closure methods but only refers to a financial guarantee
in the glossary. The European Commission has recently commissioned the production of Guidelines for
Financial Guarantees and Inspections for Mining Waste Facilities which will be published on the
Directorate General (DG) Environment website (MonTec 2007). The content of these Guidelines does
not necessarily represent the formal opinion of the European Commission. All Directives can be ccessed
on the EU Database website (see Annex 1).
3.10.2.Timing
Article 14 of EU Directive 2006/2l/ECspec\i\es that a financial surety should be in place prior to the start
of any operation that involves the production of waste.
3.10.3.Financial Surety Instruments
Article 14 also establishes that the financial surety should be in the form of a financial deposit, or
equivalent, which may include industry-sponsored mutual guarantee funds.
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3.10.4. Scope of Financial Surety
EU Directive 2006/21/ECcovers the management of waste from land-based extractive industries and
includes all waste arising from the prospecting, extraction (including the preproduction development
stage), treatment and storage of mineral resources and from the working of quarries. All these aspects
of waste must be covered by the financial surety including post closure procedures and monitoring. The
financial surety in this Directive does not include the infrastructure and other facilities related to a
mining operation or inert waste or unpolluted soil unless deposited in a Category A waste facility
(hazardous or dangerous waste or incorrect operation). Some aspects of these exclusions could be
covered by the financial surety requirements of E U Directive 2004/35/E Cthough this is debatable.
3.10.5. Level of Financial Surety
The E U Directive 2006/21/E Cestablishes the level of financial surety should be based on third party
costs.
3.10.6. Tax
The E U Directive 2006/21/ECmakes no reference to the tax implications for the financial surety.
3.10.7. Review
It is assumed in the EU Directive 2006/21/ECthat the financial surety calculations are assessed by a third
party. It requires for the waste management plan to be reviewed every five years and provisions to be
made to periodically adjust the surety in line with these reviews.
3.10.8. Release
Article 12 of the E U Directive 2006/21/E Cplaces the accountability for the waste facility, even after
closure, on the operator and they have the duty to keep the regulatory authority informed of any events
or developments likely to affect the stability of the site. The financial surety may be released when the
competent authority approves closure or takes over the tasks of the operator.
3.10.9. Experience
After May 2008 no waste facility should be allowed to operate without a permit and all waste facilities
that are licensed are obliged to comply with E U Directive 2006/21/EC. Any waste facility that is granted
a permit prior to the 2008 date has until 1st May 2012 to comply with the provisions set out in this E U
Directive. This does not apply to waste facilities that have closed by May 2008.
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4 DISCUSSION BASED ON CASE STUDIES
4.1. Legislation and Governance
The legal requirement for a mine closure plan or rehabilitation program may be found in either the
mining law, as is the case in Ontario, Canada, or in both the mining and environmental laws which is
more common. It is rarely found only in the environmental law. Some jurisdictions, such as Nevada,
have developed a law solely to cover reclamation. Similarly the requirement for a financial surety is
usually found in the mining and environmental laws or sometimes just in the mining law, though these
usually do not identify the acceptable mechanisms.
As well as the relevant mining and environmental laws, most governments have produced regulations,
guidelines or codes of practice that specify in more detail the requirements for rehabilitation and, in
some cases, the financial surety mechanisms. For example, in Canada the Ontario Regulation 240/00
contains schedules that provide details of the rehabilitation requirements and information to be
provided in the closure plan. The Government of Ontario has also produced a policy document that
contains information on the type, and requirements for, each form of financial assurance accepted by
the legislation. These are available on the Ministry of Northern Development and Mines website.
A number of countries included in the survey, such as Victoria, Botswana, Ghana and Sweden, are non-
specific in regard to the size of a project that requires a financial surety. The legislation refers to the
generic term 'mining' with the presumption that this encompasses all aspects including small, medium
and large as well as exploration. In some jurisdictions smaller projects, alluvial mining and quarrying are
treated separately. See table below.
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Table 4.1.1: Summary of Mining Title specified in Legislation as requiring a Financial Surety
Jurisdiction
Ontario
Nevada
Queensland
Victoria
Botswana
Ghana
Papua New
Guinea
South Africa
Sweden
European
Union
Prospecting
Charged at flat
rate
Exploration
yes
yes
yes
yes
Advanced
Exploration
yes
Mining
(generic)
yes
yes
yes
yes
yes
yes
yes
yes
yes
Other
No financial
surety for
projects < 5
acres or
producing <
36,500 t
Exploration
and smaller
projects are
charged at a
flat rate (see
table p.21)
Quarrying
specified in
separate
legislation
Alluvial mining
lease
required to
pay levy on
sales
Quarrying
specified in
legislation
Waste
management
In the majority of countries included in the survey the closure plan, rehabilitation and financial surety
come under the jurisdiction of the government department responsible for mining or jointly with the
department responsible for the environment. One notable exception to this is Queensland, Australia. In
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1999 the government decided to transfer the responsibility for the environmental regulation and
management of mining from the Department of Mines and Energy to the Environmental Protection
Agency. This included transferring the responsibility for the rehabilitation program, though the receipt
and management of the financial surety remained with the department responsible for mining. In most
jurisdictions the department responsible for government finances is involved to some extent in the
financial aspects of the implementation of mining legislation. This may involve full coordination in the
receipt and administration of the financial surety, as is the case in Papua New Guinea, or only for tax
purposes.
4.2. Financial Surety Instruments
Most of the regulatory authorities that responded to the survey allow a number of financial surety
instruments to be used, with the notable exception of Victoria, Australia which will only accept a Letter
of Credit (Bank Guarantee). The most common form of financial surety instrument currently in use is
the Letter of Credit, which is accepted by all the developed countries included in the survey. Surety
Bonds, Trusts Funds and Cash are used fairly regularly and Ontario and Nevada both allow Corporate
Guarantees.
In some jurisdictions, for example Nevada, a combination of mechanisms is allowed for a single surety.
This is most commonly used for larger companies that may obtain up to 75% of the financial surety as a
Corporate Guarantee. Experience in some jurisdictions has shown that Corporate Guarantees do not
provide sufficient protection, while in others Surety Bonds have failed to meet their expectations and
Unit Levies have left governments with a shortfall when projects have closed prematurely. Cash
financial sureties are more common for smaller mining companies which do not have sufficient assets to
satisfy the requirements for a Letter of Credit. It is interesting to note that in Queensland the
government will no longer accept a Corporate Guarantee because public opinion has no faith in them.
The trend in developing countries is to use Trust Funds as the financial surety instrument of choice.
These are also acceptable in Ontario and Nevada but are rarely used. In South Africa the major mining
companies use centralized Trust Funds at a corporate level.
4.3. Timing
In most of the jurisdictions included in the survey the financial surety does not have to be lodged until
after the mining title is granted. However, the legislation in all these cases does stipulate that no work is
allowed to start on site until the financial surety is in place. In some instances, such as Victoria,
Australia, the government issues a separate Work Authority after the surety has been arranged. In
Queensland the financial surety for all mining titles, with the exception of a mining lease, have to be
lodged before the title is granted. In this case the surety is required before activity starts on site. In
Botswana the proposal is for the financial surety to be put in place before the mining title is granted.
All of the developed jurisdictions included in the survey, with the exception of Sweden which does not
specify, allow for the financial surety to be funded in incremental payments. This was not stipulated in
the legislation for the developing countries. However, the implication for South Africa is that the full
amount of the financial surety must be in place before a project can start.
4.4. Scope of Financial Surety
In all the case studies included in this review the primary legislation (Act) is non-specific in terms of what
should, or should not, be included in the financial surety. The scope is referred to in general terms such
as 'closure' or 'reclamation plan', 'rehabilitation' or 'revegetation', with the detail being given in the
secondary legislation (regulations, guidelines, codes etc). For example, in Ontario the Mining Act obliges
the proponent to submit a closure plan which includes the financial surety. The detail of what is
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required in the closure plan, and thereby included in the financial surety, is specified in the Mine
Rehabilitation Code. This provides the proponent with comprehensive guidelines and allows the
regulatory authority to vary the requirements without having to change the primary legislation.
The financial surety is expected to cover the cost of all aspects of the physical closure of the site. In
some jurisdictions this includes the administrative and management costs though these may be
automatically included if the costs are based on the work being carried out by a third party. There is,
however, considerable ambiguity surrounding the issue of the funding of long term care of the site, or
what time period the financial surety should cover after the rehabilitation work has been completed. In
Queensland this discrepancy was recently addressed by the introduction of residual risk payments.
These allow for separate cash payments to be made, to cover future maintenance and reconstruction,
when the Environmental Authority is surrendered or when progressive rehabilitation is certified.
If one project includes a number of different licenses or titles then most regulatory authorities only
require one financial surety.
The IFC Environmental, Health, and Safety Guidelines for Mining (2007) specify that the mine closure
plan should include socio-economic considerations and, by association, the financial surety. The only
legislation that specifically includes the social and economic impacts in the mine closure plan is the Ok
Tedi Closure and Decommissioning Code (see Chapter 3.7). The details of this requirement are
stablished by Ok Tedi Mining Ltd, in consultation with the relevant stakeholders, and reviewed every
two years. In Papua New Guinea, there is also a 'Future Generations Fund' that protects some
minebenefits for use by subsequent generations. In addition, there is an infrastructure incentives
scheme whereby, companies can use part of their income tax payments to construct infrastructure
projects in agreement with the local community.
In the Philippines, a mine is required to contribute a percentage (90% of 1%) of the direct mining and
milling costs to a centralized Social Development and Management Program (SDMP) as part of a five
year plan. This program is designed to be used for the sustainable improvements in the living standards
of the host and neighboring communities by creating responsible, self reliant and resource based
communities. Details of the SDMP can be found on the Mines and Geosciences Bureau website (see
Annex 1).
4.5. Level of Financial Surety
The level of financial surety can range from a few thousand dollars to hundreds of millions depending on
the size, nature and complexity of the project. In most cases, the amount that is required for the
financial surety is based on the specific itemized costs of all components included in the closure or
rehabilitation plan. In some jurisdictions the detail is left up to the proponent, whilst in others the
regulatory authority has established a list of the components and methods of calculation.
For example, in Queensland the Code of Environmental Compliance for Mining Lease Projects (available
on the EPA website) contains a schedule of rehabilitation costs and specifies that maintenance and
monitoring costs should be calculated at 10% of the total rehabilitation costs. Both Victoria and New
South Wales use the URS/GSSE Rehabilitation Cost Estimate Tool (see Chapter 5.5). Since the
introduction of the Tool in New South Wales surety funds have been increased by over 50%. South
Africa has a similar method for establishing the financial surety contained in Section B of the Guideline
Document for the Evaluation of the Quantum of Closure-Related Financial Provision Provided by a Mine
(available on the Department of Minerals and Energy website). The process, which is designed to be
used by DME regional office personnel, involves ranking mines according to risk and the sensitivity of
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the area before applying unit rates for the various closure components. Up to 13% of this total may
then be added for administrative and management costs and a 10% contingency.
It is common practice for the financial surety to include administrative and management costs, usually
established on a percentage basis. The level of financial surety is commonly based on the work being
carried out by a third party, such as an outside contractor. The only authority included in the survey
that accepted the financial surety in the form of a Unit Levy is Ontario. This is established by looking at
the proposed life of the mine, the estimated closure costs and the mining rate and then negotiating a
dollar rate per tonne mined and the timing of the payments. The negotiations also establish that the
financial
surety is covered by the half life of the mine. However, a number of jurisdictions do accept incremental
payments, sometimes known as a Sinking Fund, for a number of financial surety instruments.
In Queensland the financial surety for exploration and small (standard) mining projects is based on the
total area of disturbance and the risk associated with the rehabilitation (see Chapter 3.3). In 2008, the
Western Australian Department of Industry and Resources published new rates for calculating
environmental performance bonds (surety bond). These represent a minimum rate that will be varied
according to the risk at a particular site. The minimum bond will generally be A$10,000.
Table 4.5.1: Western Australia Minimum Bond Rates 2008
Rate
1*
2
3
4
Description
Tailings Storage Facilities, including in pit disposal, Heap/Vat
leach, Evaporation dams, Turkey Nest Dams, Waste dumps, ROM
pads, low grade oxide stockpiles, plant sites, workshops and
process water dams
Camp Sites, Strip Mining (backfilled mining voids), hyper saline
pipelines (>15,OOOTDS), causeways, haul roads, sewage ponds
and landfill.
Roads and access tracks, "Fresh" water pipelines, laydown areas,
orrow pits and airstrips
Exploration -where clearing takes place, metal detecting, dry
blowing and prospecting
A$
20,000
5,000
3,000
2,000
* High risk facilities and landforms (sulphides present, highly erodible or >25m high) may attract ahigher
rate and will be determined on a case by case basis).
Large companies in Nevada may obtain a Company Guarantee, known as a State Corporate Guarantee,
for up to 75% of the total financial surety if they can meet regulatory criteria to demonstrate adequate
financial health. Similarly, in Queensland companies can earn a 75% discount based on previous
environmental performance.
4.6. Tax Implications
The treatment of the financial surety for tax purposes varies from country to country. In Nevada, under
both state and federal legislation, payments in to a financial surety are treated as an operating cost and
therefore tax deductible, as well as the actual expenditure on rehabilitation. In addition, operators can
distribute the rehabilitation obligation over a number of years thereby further reducing taxes. In
contrast, in Ontario there is no tax allowance for a financial surety as the government does not consider
it to be an expense as it will be returned to the company once rehabilitation has been completed. In
Botswana, the industry is putting pressure on the government to make payments into a trust fund for
afinancial surety, tax exempt.
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4.7. Review
In all cases included in the survey the level of financial surety is established by the proponent and, in all
but one, is reviewed by the relevant government department. The exception is Queensland where the
proponent has to certify that the correct procedures have been used and the government has the power
to impose severe penalties for providing false or misleading information. No authorities employ third
party verification in the process of accepting the financial surety though, in Nevada, the public are
allowed to review and comment. The legislation in all jurisdictions, apart from Ontario, allows for the
financial surety to be reviewed and adjusted on a regular basis. The timing of this review varies from
annual (South Africa) to every ten years (Queensland) depending on the size of the project, the lifespan
or the liability risk. In Victoria, the draft Guidelines contain an assessment matrix forthe review period
reproduces below.
Table 4.7.1: Victoria Surety Review Periods
Consequences
High
Medium
Low
Likelihood
High
2 years
Large mine - gold
3 years Small mine
-gold
and other metals
6 years Small mine
- non
metallic
Medium
3 years Large mine
- other
metals
HMsand
6 years WA-
regional
significance
10 years WA-
local
significance
Low
6 years Large mine
- non
metallic (other
than
coal for major
power generation)
10 years WA-
state
significance
10 years
Negligible
10 years - Coal
(major power
generation
10 years
10 years
The majority of jurisdictions also require a financial surety to be reviewed and adjusted when the mining
title in renewed, when there is a change to the operating plan, when there is a transfer of assets or
when the regulatory authority has due reason to request a review. At the time of the review the level of
financial surety can be increased or decreased. If the proponent is paying the financial surety in
increments then the timing of reviews is usually more frequent.
4.8. Release
In none of the completed surveys were the funds available to the proponent for on-going rehabilitation
during the life of the project. However, work that had been completed at the time of a review could be
taken into consideration during the reassessment of the level of the financial surety. For example, in
Nevada as discrete steps in the reclamation plan are completed partial release of the surety may be
allowed.
Following the successful completion of rehabilitation most authorities, if they are satisfied no further
claim might be made, return the majority of the funds held in the financial surety to the proponent.
However, where necessary a number of jurisdictions withhold some of the funds for long term care
costs. One variation on this theme is Queensland which can require a cash residual risk payment to be
made when they release the original financial surety.
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4.9. Additional Experience
Three of the case studies from developed countries reported that, when mines had closed due to
economic difficulties, the financial surety had not been sufficient to cover the closure costs. In the
developing countries the financial surety requirement had not been operating for long enough for there
to be any examples or the y were reluctant to provide the information. The following examples are
included to give an idea of how expensive closure legacies can be.
In the UK, following the coal mine closure program of the 1980/90's, the Coal Authority was left with
substantial environmental and safety liabilities with no money to fund the required work. In the
2007/2008 tax year the Coal Authority spent £18.9 million managing legacy liabilities (£16.6 million
2006/2007), and currently has 46 operational water treatment schemes covering 300 kms of
watercourses. There are a further 84 water treatment schemes that have been identified that need to
be constructed by 2027 and it is estimated that the responsibility for mine water treatment will extend
for another 100 years. According to the latest Annual Report, at the end of June 2007 the Western
Australian Department of Industry and Resources held 3,365 unconditional performance bonds
(suretybond) with a total value of A$608.3 million. This value represents approximately 25% of the
expected total rehabilitation costs. In 2005 the amount held in bonds was A$430 million with an
average of A$2,395/ha.
BMP Billiton's Island Copper Mine in British Columbia, Canada, closed in 1995. The closure plan
submitted to the government in 1994 estimated the costs for environment mitigation and monitoring
were C$15 million with additional money set aside for severance packages and decommissioning. It was
presumed that monitoring would be required for 10 years with the level decreasing significantly for the
second five years. Well in excess of these costs have now been spent. In 2007 it was reported that
revegetation of the 700 hectares had been hugely successful and, over time, it is expected that the
mine's closure objectives or productive forest and wildlife habitat will be achieved. However, since
initialclosure, BMP Billiton has come to realize that the closed mine site will require care, maintenance
and monitoring in perpetuity, principally due to the evolving nature of the mine drainage and its
treatment requirements. For further detail see the 2007 Annual British Columbia Jake McDonald Mine
Reclamation Award (www.trcr.bc.ca).
5 IMPLEMENTATION GUIDELINES
A financial surety is essential to ensure that an exploration or mining project does not burden a
government with a detrimental environmental or social legacy. However, it should do more than
protect the regulatory authority from the risk of default; it should also work as an incentive for the
proponent to keep the physical impacts to a minimum and to carry out progressive rehabilitation. This
incentive can be augmented by regular review and the release of the surety for work that has been
completed. Site rehabilitation should be progressive so that, wherever possible, the rate of restoration
is similar to the rate of exploration or exploitation.
Closure may not always occur as planned. The life span of an exploration project is dependent on the
discoveries made, or not, and it is quite common for the life of a mine to be extended by the re-
evaluation of existing reserves, changes in the commodity markets, new ore discoveries, etc. This type
of change can be accommodated by revising the closure plan and reviewing and revising the financial
surety. Alternatively, the life of an exploration or mining project may be curtailed unexpectedly because
of falling metal prices, technical difficulties, or financial problems of the company. In these instances, if
the company is not in a position financially to carry out any of the planned rehabilitation, it is essential
that the regulatory authority has the funds available to commission the work themselves. Before setting
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up a financial surety it is essential to establish the rehabilitation goals. These should involve restoring all
affected areas, as far as is possible, to their most appropriate economic and social value. This does not
always involve returning a site to its original state or use. The main aims of site rehabilitation are to
reduce the risk of pollution, to restore the land and landscape, to improve the aesthetics of the area and
to prevent further degradation. These goals should be discussed as part of the consultation process and
the views and opinions of the land owners and local community, as well as the national and provincial
government, should betaken into consideration.
Site closure, especially in the case of a mining operation, can be difficult to define as a discrete period as
post closure monitoring and long term care may be required after the rehabilitation work has been
completed. The regulatory authority must take the necessary steps to ensure there will be sufficient
funds available to pay for post closure monitoring and maintenance and, when required, remedial
action. These funds can form part of the financial surety or a separate, self perpetuating fund, can be
established when the original financial surety is released.
It is critical that the financial surety is only used for the purpose it was designed, and not viewed as a
general source of funds by any of the parties involved. For this reason, it is advisable for the
management and control of the fund to be shared by the regulatory authority and the company, with a
clause allowing for the release of the fund if the company defaults. It is also essential that the financial
surety is quarantined from other company assets, so that it cannot be seized in the event of bankruptcy,
and from government abuse. The financial surety must be returned to the company following the
satisfactory completion of mine closure and the rehabilitation program.
5.1. Legislation and Governance
The general direction is for legislation to be non-prescriptive, to allow for flexibility when regulating so
as not to stifle development. In the case of financial surety, too much flexibility can result in confusion
and inconsistencies, which may result in deterring investment. As can be seen from the survey carried
out for this report, there are as many variations in the way financial surety requirements are included in
the legislation, and administered by the regulating authority, as there are case studies. The simple
education is that there is no 'correct' way of legislating for, or managing, financial surety requirements.
However, if a system is too complex neither the industry nor the government will implement it
successfully. Legislation should also be designed to take government structure and capacity into
consideration.
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It seems that it works better to have an independent mine closure law that
establishes asingle agency to implement the law. This model gives the business
community anassuranee that one agency will take the lead on its problems and
that it will not have toanswer to many differing opinions on how operation,
reclamation and closure successwill be measured. This model also allows the
public and NGOs a single place to go forinformation on mining regulation.
Ref: Cochilco, MMSD 2002
At present, any mining project whether exploration or exploitation, in almost any country, has to obtain
a mining (or exploration) license and an environmental permit. These requirements are contained in the
Mining Act and the Environmental Act which are usually administered separately, by the relevant
department. Prior to obtaining an environmental permit, most jurisdictions require the proponent to
produce an environmental impact assessment that would also contain a closure or rehabilitation plan. It
is therefore logical to assume that the financial surety requirement for rehabilitation would be included
in the environmental legislation and administered by the relevant department. In practice however, this
logic does not stand up to scrutiny. Many or most of the environmental liabilities associated with
mining are now an accepted integral part of the overall operation and closure plans are as much part of
the operating plan as they are of the environmental assessment. In addition, it is common practice for
the mining legislation to include most, if not all, of the financial aspects of the license. For these reasons
it makes more sense for the financial surety requirement to be a part of the mining legislation and to
come under the authority of the department responsible for mining. That said, it is essential that the
administration and management of the financial surety should involve consultation with all relevant
departments including environment, water and finance.
Recommendations:
> A financial surety should be a requirement for all projects but tailored to fit the size and
complexity of the project.
> The financial surety requirement should be clearly stated in the legislation and should be linked
to the permitting process.
> The legislative, regulatory and fiscal framework for financial surety should be clear and
application consistent.
> The financial surety requirement should be primarily included in the mining legislation,
preferably directly associated with mine closure.
> The law or act should be supported by regulations and/or guidelines that specify the
rehabilitation requirements and financial surety mechanisms.
> The department responsible for mining should administer the financial surety in consultation
with other relevant departments.
5.2. Financial Surety Instruments
Success of any financial surety instrument depends on the care and effort put into setting it up and
managing it. Most will work if they are done properly. The most commonly used forms of financial
surety are the Letter of Credit, Surety Bonds, Trusts Funds and Cash.
A Letter ofCredit(Bank Guarantee) is the most frequently used type of financial surety instrument.
These are acceptable to the industry because they are relatively cheap to set up and they are attractive
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to governments because there are less administrative requirements. However, obtaining a Letter of
Credit may reduce the borrowing power of the company.
Surety Bondshave many similar attributes to the Letter of Credit and are attractive to smaller companies
as they do not involve tying up capital. However, the long term viability of the insurance company
providing the bond should be taken into consideration.
Trust Fundsare more visible and often better understood than other forms of financial surety. Any
surpluses created in the fund can be returned to the proponent with more ease but, if they are invested,
there is the possibility that the value of the fund will fall. It can be difficult to ensure that their value
stays in line with the rehabilitation obligations. Trust Funds are more available to smaller mining
companies which do not have sufficient assets to satisfy the requirements for a Letter of Credit or Surety
Bond.
Cash also provides a more attractive option for smaller companies (see Trust Fund) and the money can
earn interest and thereby keep ahead of inflation. There are no delays in getting access to the money
and no need to retrieve the entire fund if only part is required. Cash is also easier to place in a pooled
fund. However, a Cash fund may be more accessible to misappropriation. There is also the risk that,
should the mining company become bankrupt, any cash deposits will be recovered by the receiver.
The Company Guaranteed the financial instrument of choice of the mining companies due to the lack of
cost and paper work involved. However, they do tend to fail because the time when the money is most
needed is often when the company is not able to deliver. They are also unpopular with the public which
does not hold the mining industry in very high regard and therefore does not trust this form of financial
surety. This type of financial surety instrument is only really acceptable for large, well established
companies and can therefore be seen as being a disadvantage to smaller operations.
Insurance Schemesare currently not available to the mining industry outside of the USA.
Unit Levyand Pledge ofAssetsare increasingly unlikely to be accepted as financial surety instruments
because of the uncertainty of the fund meeting the rehabilitation requirements.
A Fund Poo/and Transfer ofLiabilityare not widely available and generally not recommended.
The choice of financial surety instrument will depend on the track record and financial strength of the
proponent, the level of surety required and the period of time it is necessary. It is essential that the
financial surety can be converted into cash quickly and reliably and can only be used for the purpose for
which it was designed. It is also essential that the financial surety is quarantined from other company
assets, so that it cannot be seized in the event of bankruptcy, and from government abuse. In some
instances a combination of financial surety instruments may prove to provide the best cover.
Recommendations:
> Produce guidelines identifying which forms of financial surety are acceptable and how they
should be implemented.
> Allow the proponents a choice of fund, preferably from the first four in the above list.
> Ensure that unbiased financial advice is available in the choice of the financial surety and its
management.
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> Ensure that the financial surety is quarantined from other company assets, so that it cannot be
seized in the event of bankruptcy, and from government abuse.
> Ensure the financial surety can only be used for the purpose for which it was designed and in a
timely fashion.
5.3. Timing
The financial surety can be put in place either before the mining title is granted or after the mining title
is granted but before the proponent is allowed to start work on the site. There are no benefits or
disadvantages for either option as long as the security is lodged before any work starts on the site that
would require rehabilitation. The incremental payment of a financial surety may be an acceptable
option, especially in the case of a large project with a long life span. However, it should not be the
preferred option for explorations sites or smaller projects.
Recommendations:
> The financial surety must be in place before work starts on the site.
> If the financial surety is to be paid incrementally, ensure the funds are always sufficient to cover
closure costs.
5.4. Scope of Financial Surety
The scope of the financial surety is currently accepted to include all the physical aspects of mine closure.
This should include activities associated with decommissioning, removal of plant and infrastructure, as
well as rehabilitation. The main question is how prescriptive the administrative authority needs to be in
defining all the elements. While some jurisdictions feel it is necessary to provide proponents with
detailed lists of the specific elements to be included in the financial surety, others hardly provide any
guidance at all. A balance between these two might be the seen as the best option.
It is essential that the mine closure and site rehabilitation goals are an integral part of the scope of the
financial surety. These can be established as closure criteria or standards and should take into
consideration the potential end use for the site. Almost all sites, especially mining licenses, will require
some form of post closure monitoring and, in some cases, long term care and/or remedial action. These
requirements should be included in the financial surety scope.
The social and economic aspects of mine closure, and financial implications, are discussed in separately
(see Chapter 5.9) and are not included in the following recommendations.
Recommendations:
> Establish the physical mine closure and rehabilitation criteria or standards.
> Establish outline guidelines of the elements of mine closure and rehabilitation to be included in
the financial surety.
> Consult with the relevant environmental authorities to ensure all aspects of the environmental
assessment are addressed.
> Consult with the community regarding rehabilitation goals and end of site use.
> Set up procedures for establishing the requirements for long term maintenance and monitoring
and the method of funding.
5.5. Level of Financial Surety
For exploration sites and small, low risk mining projects it is feasible to use a basic formula to calculate
the required level of financial surety. For the larger, high risk mines it is advisable to establish a detailed
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breakdown of all the components with individual costing. The level of financial surety is usually worked
out by the proponent and then submitted to the regulating authority for review. Often, in the case of
international companies, the person calculating the figures is not in their home country, and therefore
not in a position to know what the various costs will be. Because of the specialized nature of the work
the costs can be difficult to come by. Establishing accurate rehabilitation costs is not an exact
scienceand this just adds another level of uncertainty.
The level of financial surety can be calculated in a number of different ways:
Use of a formula based on the type of project, rehabilitation plan and/or track record of the
company.
Specified in legislation on standard rates and unit costs.
A percentage of capital costs.
Negotiated based on the feasibility study.
Negotiated on a per tonne basis.
Whichever method of establishing a financial surety is chosen, the details should be worked out on a
site by site basis and any guidelines or models just used as a starting point. A more complex
rehabilitation Cost Estimate Tool (see Box 5.5.1) has been developed in Australia which may help to
remove some discrepancies across the industry and the need for detailed review by the government.
This Tool should also ensure that the level of financial surety is not dependent on the business success
of the company or the overall economic conditions in the mining industry. In Australia all mines in New
South Wales, and more complex minesin Victoria, are required to use the Tool to assist in surety
calculations.
Another Cost Estimation Model for Mine Closure has also been developed for a Ph.D. dissertation at
Colorado University (Peralta-Romero 2007). This Model uses the graphical interface of MS Excel with
three main functional modules; input and utilities; closure activity costs; and output, with color
differentiation. Information contained in a database can be incorporated into calculation worksheets
including disturbance rates, equipment type and model, production rates and unit costs. The model will
then generate an executive cost summary.
The financial surety should be designed to cover all mine closure costs at the time of closure, whether
planned or not, in the absence of the proponent. This means that, at a minimum, the amount should be
based on third party costs and should include all administrative, maintenance and monitoring costs.
There are also good arguments for the inclusion of a contingency, allowance for engineering redesign
and inflation. The required standard of rehabilitation is site specific and this should be reflected in the
financial surety calculations.
Junior and local mining companies may not have the necessary financial resources to establish the entire
surety before the start of a project. Paying the financial surety in increments may be the only
alternative. However, there is always a risk with incremental contributions that, at any given time, the
surety may not be sufficient to cover the costs of rehabilitation should the proponent default. Most
junior companies use outside financing so it may be possible for the financial institution involved to also
provide a Bank Guarantee. Alternatively, the company could reduce the initial operating plan size so
that both capital costs and the financial surety are less.
Recommendations:
> Establish guidelines containing an outline of rehabilitation costs.
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> Ensure these costs are based on using a third party contractor, include all administrative costs, a
contingency and inflation factor.
> Use site specific costs based on site specific closure plans.
> Include a separate cost item in the financial surety for remedial action, maintenance and
monitoring.
> Accept incremental payments of the financial surety as the last option.
5.6. Tax Implications
There are five separate issues related to tax and a financial surety fund. These are:
1. Whether money paid into the financial surety is counted as an operating cost or an expense and
is therefore tax deductible?
2. Whether decommissioning and rehabilitation costs count as an operating cost and are therefore
tax deductible?
3. Is any interest earned on the financial surety fund taxable?
4. Is any capital gain made on the financial surety fund taxable?
5. When the financial surety fund is released back to the company is it taxable?
Box 5.5.1: Rehabilitation Cost Estimate Tool
Two consulting companies in Australia, URS and GSSE, have developed a RehabilitationCost Estimate
Tool. This is a cost calculation workbook, using Microsoft Excel, that aimsto provide mine operators or
government with a general guide in calculating anappropriate rehabilitation estimate.
The design of the workbook is a tiered approach which establishes the level of detailrequired based
on the scale and type of operation. The mine site is divided into a series ofdomains, each representing
a unique area, and comprising a number of precincts. Byselecting the type of mining operation the
relevant domain worksheets will be activated.
The Tool includes all aspects of mine closure from the demolition and removal of infrastructure to the
maintenance and monitoring of the rehabilitation. Third party costs,as well as administration and
management, are also built in to the workbook. The unitcosts used in the Tool are based on generic
rates though there is the facility for users toinsert their own rates, with justification. The costs do not
incorporate an automaticcalculation to determine future value.
Comments from the industry say that the Tool is easy to use, provides a useful frameworkfor
developing the closure plan and has a clear systemic approach. However, theintegrated costs in the
Tool do not take account of regional variations. In addition, it hasbeen reported that there has been a
substantial increase in rehabilitation cost estimatessince the introduction of the Tool.
For further information contact michael_woolley@urscorp.com.
One question is, if the funds paid into a financial surety are tax deductible, then the decommissioning
and rehabilitation costs should not be, or vice versa. However, there is a problem making
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decommissioning and rehabilitation costs tax deductible because the majority of the expenditure comes
once a mine has ceased operating and so there is no income to offset the tax against. One way of
getting round this problem is to allow a company to claim tax deductions for closure provisions based on
a unit of production basis during the operating life of the project.
The countries that took part in this survey generally accepted that the administration costs associated
with setting up and managing a financial surety are tax deductible as a business expense. It is also
acknowledged that any interest earned by the financial surety, or capital gains made by the fund, are
taxable but that the release of the original fund is not. For obvious reasons, the mining industry will
wish to secure as many tax breaks as feasible and the onus is on the government to establish a fair
system that takes into consideration the financial implications for the industry. As can be seen from the
case studies, attitudes do vary around the world to this sensitive subject. In spite of some individual
attitudes, there can be no wrong or right way of making these decisions, just the best for the
countryinvolved.
Recommendations:
> Liaise with the department responsible for government finances before making any decisions.
> Liaise with the mining industry as to the implications for different tax regimes before
establishing the requirements.
> Establish the tax regime and stick to it - avoid negotiation on a site by site basis.
5.7. Review
When the financial surety is submitted to the regulatory authority it is usually reviewed internally. This
process is complex, uses considerable resources and can be very time consuming as it involves
negotiations and consultations. If the relevant department does not have the capacity to carry out the
review internally then third party verification could be considered. This could either be done by the
proponent, with a system of certification, or by the regulatory authority. The financial surety
arrangements should also be part of the community consultation process so that the end use for the site
can be established. Ideally this should take place at the same time as the environmental and social
impact assessment consultations and should include the mine closure and rehabilitation plan.
During the life of the project the closure and rehabilitation requirements may change due to planned or
unforeseen modifications to the exploration or operating plan. This means that there needs to be a
mechanism for reviewing and adjusting the financial surety. There should also be a statutory
requirement for periodic reviews of the financial surety to enable the regulators to ensure that the
surety level is adequate and that the fund is properly secured. The period between reviews depends on
length of project. The World Bank Report (2002) recommends every 5 years for a 30 year project life
and every 2 years for a 10 year project life. The IFC Guidelines (2007) state that the mine closure
requirements should be reviewed on an annual basis and the closure funding arrangements adjusted to
The review would be carried out by the proponent and submitted to the regulatory authority. The same
verification and consultation process should then be repeated as for the initial submission. At the time
of this review any rehabilitation carried out by the proponent could betaken into consideration in re-
establishing the level of financial surety. However, the adequacy of the rehabilitation work must be
assessed before any reduction in the financial surety is accepted.
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Recommendations:
> Establish whether the initial assessment of the financial surety will be carried out by the
regulatory authority, by the proponent, or third party verification.
> Establish the consultation process.
> Establish requirements and processes for periodic reviews.
5.8. Release
The financial surety fund should not be available to the proponent to pay for on-going rehabilitation.
However, if rehabilitation has been carried out it could be taken into consideration at the time of the
periodic reviews. Staged reductions in the level of financial surety can help to promote progressive
rehabilitation and good practice.
Following the satisfactory completion of mine closure and the rehabilitation program, the financial
surety fund can be returned to the proponent. Before any money is returned the regulatory authority
should establish that the program has been successful and no further work is required on the site. A
commonly used method of evaluating the release of the financial surety is the success of the
revegetation program. It is also possible to use the surface stability or water quality, or a combination
of all three.
If the site requires long term monitoring, maintenance and/or remedial action, a separate fund should
be set up to finance this for whatever period is required. This fund should be self perpetuating so that
the regulatory authority is never left with a deficit.
Recommendations:
> Establish practical criteria for assessing adequacy of rehabilitation efforts (completion criteria).
> Establish criteria for the release of a financial surety including staged reductions during the
operating life of the project.
> Establish a method of funding long term monitoring, maintenance and remedial action.
5.9. Social and Economic
It is starting to be accepted that it is essential to set funds aside early on in project development to
finance the social and economic aspects of mine closure. Severe economic distress may follow closure if
the project is the sole source of direct and indirect employment in the region and unsustainable social
infrastructure that was previously supported by the mine is liable to collapse. The elements that should
be taken into consideration are:
Redundancy payments
Retraining schemes
Support for dependent (spin-off) businessesUtilities: electricity, water, communications etc
Social facilities: health, education, justice etc
Infrastructure: roads, airstrip, wharf etc
Food security
Financial system
At present, it is not common for financial provisions to be made for these aspects of mine closure
though there are some notable examples such as Papua New Guinea and the Philippines (see Chapter
4.4).
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Integrated closure planning should, as the name suggests, include all aspects of mine closure and, by
association, the financial implications of the social and economic impacts should also be taken into
consideration. However, the nature of the requirements is very different to the physical financial surety
and there may be advantages in keeping the funds separate. This can be achieved by establishing a
specialized trust fund or foundation that is designed to exist for a period of time after mine closure.
6 AFTERTHOUGHTS
The most memorable statement that has been made during the research and consultation that went in
to producing this report is the following:
"I have never seen a closure program
cost less than the estimate."
Even with the best will in the world, forecasting accurate estimates for closure costs is extremely
difficult and the best that might be expected is a close approximation to the reality. The temptation
could be to over estimate, in order to ensure that there is not a shortfall in funds, but this should not be
done to the detriment of the financial viability of the industry.
In 1999, a principal environmental specialist with the European Bank for Reconstruction and
Development identified a number of specific risks and suggested mitigation related to financial sureties.
These are presented in Box 6.1. All these risks are still relevant today and need to be taken into
consideration when establishing the policy and regulatory framework for the implementation of
financial sureties.
Both the regulatory authority and the mining companies have a vested interest in agreeing on a realistic
level of financial surety. The government needs to ensure that there are sufficient funds to complete a
satisfactory rehabilitation program but at the same time maintain an attractive investment climate. The
mining company has to have adequate capital to continue with the investment.
The required level of financial surety can be a substantial portion of the capital costs of the project and
junior and local mining companies may not have the financial resources to provide the funds up front.
In this instance, the government has to decide whether or not they want to take the risk of these
companies defaulting on their obligations. The requirement for an up front commitment to the full
amount of the financial surety is one way of testing the commitment and resolve of the company. It
should also work as an incentive for the proponent to keep the physical impacts to a minimum and to
carry out progressive rehabilitation.
There is also a risk associated with the financial surety instruments. The long-term viability of the bank
or company providing a Letter of Credit or Surety Bond cannot be guaranteed. In Australia, a company
that provided Surety Bonds to the mining industry collapsed and the bonds were rendered worthless.
Additionally, if a mining company goes bankrupt, a financial surety that is not isolated may be frozen or
claimed to pay creditors. There is also a risk that any form of cash investment might be seen as too
much of a temptation for someone with corrupt tendencies.
In spite of all the pitfalls, financial sureties are essential in ensuring that that the physical impacts of
mining are minimized in the short term and non-existent in the long term.
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Box 6.1: Specific Risks and Suggested Mitigation
Premature termination during construction: Project termination for technical or financial
reasons can be mitigated with adequate completion guarantees which ensure that premature
termination and abandonment will trigger an obligation by the guarantor to implement, or cause
and fund a third party to implement, a satisfactory closure program.
Material changes made to closure requirements and objectives: During the mine life material
changes can largely be avoided by agreeing a clear, transparent, up-front, realistic and approved
definition of post-operational land use, the environmental performance standards to be met
within a specified period of time, and sign-off procedures to be followed.
Material changes to the project and processes: These changes may have implications with
regard to mine closure requirements and related costs. Mine closure plans, the related costs
implications and financial guarantees should be subject to a periodic review process, so that the
implication of any material change can be assessed and addressed; This would also mitigate the
risk of significant over- or under-capitalization of the closure funds and related guarantees which
should reflect the life of the mining project based on proven reserve estimates.
The risk of financial failure: Financial failure of the mining company and organizations involved
in the financial guarantee (holder of cash reserve, trust fund, etc.) resulting in a failure to provide
funding for mine closure can be mitigated by establishing non-accounting provisions monitoring
financial performance, separating the financial structure for the closure fund from that of the
company, allowing only investments of closure funds in financial instruments providing 'assured'
future payment, and spreading the risk to a combination of financial vehicles to jointly secure
closure funds.
The danger of closure funds being redirected: This can be mitigated by using a non-fungible
financial structure and a certification process, for example involving a trustee, for appropriate
use of proceeds to safeguard closure funds from being used, for payment for measures
unrelated to the project such as additional drilling, or repayment of loans in a default situation.
The government might continue operating an 'inherited' project: This could occur without due
consideration given to profitability and environmental implications which would have otherwise
required implementation of mine closure activities. Experience seems to suggest that funding
limitations may 'discourage' the government to implement mine closure in the absence
ofavailability of funds earmarked for this purpose.
Ref: Nazari 1999
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7 REFERENCES
ANZMEC, Minerals Council of Australia (2000) Strategic Framework for Mine Closure.
Cochilco (2002) Research on Mine Closure Policy. Mining, Minerals and SustainableDevelopment
(MMSD) No. 44. NED, London.
Danielson, L. (2006) Pers Comm.
Da Rosa, Carlos (1999) Financial Assurances. Mining Environmental Management Magazine,March
1999.
DITR (2006) Best Practice Mine Closure and Completion Booklet (Draft). Department of IndustryTourism
and Resources, Australian Government.
European Commission (2004) Reference Document on Best Available Techniques forManagement of
Tailings and Waste Rock in Mining Activities.
Golder Associates (2004) Guideline Document for the Evaluation of the Quantum of ClosureRelated
Financial Provision Provided by a Mine. Department of Minerals and Energy, SouthAfrica.
ICMM (2005) Financial Assurance for Mine Closure and Reclamation.
ICMM (2006) Guidance Paper: Financial Assurance for Mine Closure and Reclamation.
IFC (2007) Environmental, Health and Safety Guidelines: Mining.
Jones, H. (2006) The Surety Conundrum. Proceedings of 1st International Seminar on MineClosure.
Australian Centre for Geomechanics, Perth, Western Australia.
Lindhal, Lars-Ake (2003) Financial securities-An Industry Perspective. Seminar on FinancialGuarantees
and Securities in the Extractive Industries.
Mackenzie, S. et al (2007) Progressive Reduction of Liabilities and Recovery of Financial Suretiesin
Recognition of Successful Rehabilitation in Western Australia. Proceedings of 2nd InternationalSeminar
on Mine Closure. Australian Centre for Geomechanics, Santiago, Chile.
Marcus, Jerrold J. (ed) (1997) Mining Environmental Handbook: Effects of Mining on theEnvironment
and American Environmental Controls on Mining. Imperial College PressMonTec (2007) Guidelines on
Financial Guarantees and Inspections for Mining Waste Facilities.European Commission, DG
Environment.
Nazari, Mehrdad M. (1999) Financial Provisions for Mine Closure. Mining EnvironmentalManagement
Magazine, May 1999.
Peralta-Romero, A. & Dagdelen, K. (2007) A New Model for Estimation of Mine Closure
Costs.Proceedings of 2nd International Seminar on Mine Closure. Australian Centre for
Geomechanics,Santiago, Chile.
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Pierce, G.L. & Wen, M.E. (2006) Planning for In-Perpetuity Mine Closure Costs. Proceedings oflst
International Seminar on Mine Closure. Australian Centre for Geomechanics, Perth, WesternAustralia.
Strongman, J. (2000) Mine Closure: An Overview of the Issues. Mine Closure Workshop,
Jakarta,lndonesia.
Wilde, L. (2007) Costs of Mine Closure - Learning from the Past. Proceedings of 2nd
InternationalSeminar on Mine Closure. Australian Centre for Geomechanics, Santiago, Chile.
Wilson, Ian. (2006) Pers Comm. Environmental Protection Agency, Queensland, Australia.Woolley, M. &
Mutton, A. (2006) A New Regulatory Approach in Rehabilitation Cost Estimation.Proceedings of 1st
International Seminar on Mine Closure. Australian Centre for Geomechanics,Perth, Western Australia.
World Bank & IFC (2002) Mine Closure around the World: It's Not Over When It's Over. WorldBank
Mining and Development Series.
Additional Reading
ANZMEC & MCA (2000) Strategic Framework for Mine Closure. Australia and New ZealandMinerals and
Energy Council and Minerals Council of Australia.Bureau of Land Management (2005) BLM Nevada 3809
Reclamation Bonding Guidelines.
Forest Service (2004) Training Guide for Reclamation Bond Estimation and Administration forMineral
Plans and Operation.
Gonzalez, Patricia. (1999) Tratamiento Normative de la Fase Minera Post Operacional en losPafses
Mineros Latinoamericanos y La Planificacion del Cierre. International DevelopmentResearch Centre,
Canada.
MMSD (2002) Breaking New Ground: Mining, Minerals and Sustainable Development.International
Institute for Environment and Development, London.
Kuipers, James R. (2000) Hardrock reclamation Bonding Practices in the western United States.Centre
for Science in Public Participation (CSP2).
Lagos, G. et al (1998) Analisis de Normas de Abandono de Tranques de Relaves y Faenas
Mineras.Catholic University of Chile and Ministry of Mining.
Office of the Deputy Prime Minister (2003) Proceedings of a Seminar on Financial Guarantees
andSecurities in the Extractive Industries, Geological Society, London.
Miller, George C. (1998) Use of Financial Surety for Environmental Purposes. InternationalCouncil on
Metals and the Environment (now ICMM).
National Research Council (1999) Committee on Hardrock Mining on Federal Lands: Hardrock Mining on
Federal Lands.
Nevada Bonding Task Force (2003) Current Mining Bonding Issues in Nevada.
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Warhurst, A. & Noronha, L. (eds) (1999) Environmental Policy in Mining: Corporate Strategy andPlanning
for Closure.
World Bank & MMAJ (2000) Mine Closure and Sustainable Development Workshop Proceedings.
Mining Journal Books, London.
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ANNEX H-l WEB SITES
Australia
NSW - Department of Primary Industries www.dpi.nsw.gov.au
Queensland - Environmental Protection Agency www.epa.qld.gov.au
Queensland - Department of Mines and Energy www.dme.qld.gov.au
Victoria - Department of Primary Industries www.dpi.vic.gov.au
Victoria - Department of Sustainability and Environment www.dse.vic.gov.au
Victoria - Legislation www.dms.dpc.vic.gov.au
State - Department of Industry, Tourism and Resources www.industry.gov.au
Best Practice Environmental Management in Mining Booklets
www.natural-resources.org/minerals
Minerals Council of Australia www.minerals.org.au
Western Australia - Department of Industry and Resources www.doir.wa.gov.au
Botswana
Department of Mines www.mines.gov.bw
Department of Environmental Affairs www.envirobotswana.gov.bw
Canada
Legislation - Mining Law and Regulations www.e-laws.gov.on.ca
Ontario Ministry of Northern Development and Mines www.mndm.gov.on.ca
Ontario Mineral Exploration and Mining www.serviceontario.ca/mining
European Union
European Commission - DG Environment www.ec.europa.ee/environment
EU Database www.europa.eu.int/eur-lex
Ghana
Ghana Minerals Commission www.ghanamining.org
Ghana Environmental Protection Agency www.epa.gov.gh
Papua New Guinea
Department of Mining www.mineral.gov.pg
Mineral Resources Authority www.mra.gov.pg
Government Departments www.pngonline.gov.pg/government
SASSOON 2008 WORLD BANK
58
OkTedi Mining Ltd www.oktedi.com
Philippines
Department of Environment and Natural Resources
Mines and Geoscience Bureau www.mgb.gov.ph
South Africa
Department of Minerals and Energy www.dme.gov.za
Department of Environmental Affairs and Tourism www.environment.gov.za
Sweden
Swedish Government www.sweden.gov.se
Mining Inspectorate www.bergsstaten.se
Environmental Protection Agency www.naturvardsverket.se
USA
Nevada Bureau of Land Managementwww.nv.blm.gov
Nevada Division of Environmental Protection www.ndep.nv.gov
Nevada Commission of Mineral Resources www.minerals.state.nv.us
Nevada Legislation www.leg.state.nv.us
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Nevada Standardized Reclamation Estimator Model www.nvbond.org
US Forest Service www.fs.fed.us/geology
Odds
International Council on Mining and Metals www.icmm.com
International Institute for Environment and Development/MMSD www.iied.org/mmsd
Centre for Science in Public Participation www.csp2.org
The World Bank www.worldbank.org/mining
Department for Communities and Local Government www.communities.gov.uk
(Proceedings of Seminar On Financial Guarantees)
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Volume II - EIA Technical Review Guidelines APPENDIX H. WORLD BANK FINANCIAL SURETY
Appendices: Non-Metal and Metal Mining
ANNEX H-2 LETTER OF CREDIT TEMPLATE
DRAFT FORM OF IRREVOCABLE LETTER OF CREDIT
(To be typed on Bank Letterhead)
Her Majesty the Queen in Right of Ontario as represented by
The Minister of Northern Development and Mines
Ministry of Northern Development and Mines
933 Ramsey Lake Road
6th Floor
Sudbury, Ontario
P3E6B5
We hereby issue in your favor this Irrevocable Standby Letter of Credit in the amount of , which is available by payment against your written demand, addressedto , bearing the clause "drawn under standby letter of credit Number...issued by and the Ministry of NorthernDevelopment
& Mines regarding closure costs for the . We shallthen honor your demand
without enquiring whether you have the right as between you and ourCustomer, to
make such demand and without acknowledging any claim of ourCustomer.
This Letter of Credit will continue to and will expire on that date and you may callfor
payment of the full outstanding amount under this Letter of Credit at any time up to the close
ofbusiness on that date. It is a condition of this Letter of Credit that it shall be deemed to
beautomatically extended for one year from the present or any future expiration date hereof, unless
atleast ninety (90) days prior to any such date, we shall notify you in writing by Registered Mail thatwe
elect not to consider this Letter of Credit renewed for any such additional period. In the event ofa
notification of non-renewal, the Ministry may demand the full or any portion of this creditprovided the
customer has not provided the Ministry with full alternate financial assurancesatisfactory to the Ministry
at least 10 days prior to the expiration of this Letter of Credit.
It is understood that the amount of this credit may be reduced from time to time as
obligations pursuant to the aforementioned Agreement are discharged, such reduction will beeffected
upon receipt of your written notice delivered to this office.
Written demands for the full amount or any portion or portions thereof must be presented to usalong
with this original Credit Instrument.
This Letter of Credit is subject to the "Uniform Customs and Practice of Documentary Credits(1993
Revision) International Chamber of Commerce, Publication Number 500."
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Volume II - EIA Technical Review Guidelines APPENDIX H. WORLD BANK FINANCIAL SURETY
Appendices: Non-Metal and Metal Mining
ANNEX H-3 SURETY BOND TEMPLATE
LAND REHABILITATION PERFORMANCE BOND
Bond # Amount:
KNOW ALL PERSONS by these presents that [name of company] (hereinafter called the Principal) whose
place of business is at [company address] and The [name of insurance company] (hereinafter called the
Surety) whose place of business is at [insurance company address] are held and firmly bound unto Her
Majesty the Queen in Right of Ontario as represented by the Minister of Northern Development and
Mines, its heirs, and successors (hereinafter called the Obligee) whose place of business is at B6 - 933
Ramsey Lake Road, Sudbury, Ontario P3E 6B5 in the penal sum of [amount of bond] lawful money of
Canada for the payment of which we bind ourselves, our heirs, administrators and successors, and
assigns firmly by these presents.
WHEREAS, the Principal will operate/operates a [mining activity] located at [legalproperty description]
(locally known as ) in accordance with a certified Closure Plan filed with the Director of
Mine Rehabilitation on .
NOW, THEREFORE, the condition of this obligation is such that, if the Principal shall comply with the
terms of the certified Closure Plan then this obligation shall be void; otherwise it shall remain in full
force and effect, subject to the following conditions:
1. Whenever the Principal shall be in default and declared by the Obligee to be in default of the
terms of the certified Closure Plan, the Obligee shall send a registered letter to both the
Principal and Surety, stating in substantial detail the facts leading to the default.
2. That the Surety's obligation to the Obligee shall only be to pay such amounts demanded by the
Obligee and this bond will be totally exonerated by remitting to the Obligee such amounts in
default, provided however, the total liability of the Surety shall in no event exceed the penal
sum of the Surety.
3. The term of this bond shall remain in full force and effect to the time of release of the bond by
the Ministry of Northern Development and Mines, or replaced by a form of financial assurance
acceptable to the Director of Mine Rehabilitation.
4. Provided that, if the Surety at any time gives at least three calendar months notice in writing to
the Obligee and to the Principal of its intention to terminate this obligation, then this obligation
shall be deemed to be terminated on the date stated in the notice, which date shall not be less
than three calendar months after the date of the receipt of the notice by the said Obligee or by
the said Principal, whichever is the later date of receipt, provided that, should the Principal fail,
within two calendar months of the above referred to later date of receipt, to provide a financial
assurance in at least the same amount as this bond in a form acceptable to the Obligee, the
Surety shall automatically and immediately pay the full amount of the bond to the Obligee.
5. Any suit or action on this bond against the Surety must be commenced by the Obligee within
120 days from the date of notice of default mentioned in clause #1 above.
6. In the event the Surety becomes unable to fulfill its obligations under the bond for any reason,
notice shall be given immediately, by registered mail, to the Principal and the Obligee. Upon
Obligee's receipt of Surety's notification or upon the incapacity of the Surety by reason of
bankruptcy, insolvency, or suspension or revocation of its license, the Principal shall be deemed
to be without bond coverage and will be required to submit alternate financial assurance,
subject to the approval of the Obligee and as required by Section 145 of the Mining Act, within
30 days.
7. The Surety is approved under the Insurance Act or its successor.
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Volume II - EIA Technical Review Guidelines APPENDIX H. WORLD BANK FINANCIAL SURETY
Appendices: Non-Metal and Metal Mining
8. Upon partial completion of the rehabilitation and reclamation of the site, and the submission by
the Principal of a written application under Section 145 of the Mining Act including technical
supports and relevant information, the Director of Mine Rehabilitation at his discretion may
reduce the amount of the bond to an amount consistent with the financial requirements of the
rehabilitation work left to be completed.
9. This bond will be valid for the term of [date bond sealed] to [ date 1 year hence] and shall be
automatically renewed, without further documentation from year to year thereafter unless
terminated as aforesaid, provided that the Surety may, if it wishes, issue certificates evidencing
such renewal.
Sealed with the respective seals of the Principal and of the Surety the day of
,20.
SEALED, SIGNED AND DELIVERED [NAME OF COMPANY]
In the presence of
Name of Signatory (Please Print)
[NAME OF SURETY]
Signature
Name of Signatory (Please Print)
Signature
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