industries - life cycle
The life cycle of a mine/quarry can be considered in
of the mine/quarry will be different at each stage. At stages 1 and 2
the value is low despite the fact that the full amount or ore is
available "in situ". This is because the mine's economic operation is
not yet proven and the risk is high. Risk will be lower and the value
higher if there are "proven" comparable mines nearby. That is, if the
proposal is a "pioneer" mine, the value is very low (approximating the
opportunity land use value) as the economics of such a mine in that
area far from certain.
Stage 2 is
particularly vulnerable because there has been a large amount of
capital input at risk.
This is the
stage where the mine/quarry has maximum value. The operations have been
"proved" and therefore, the risks are lower. The operation may even
have a number of forward contracts to buyers thus guaranteeing income
in the immediate future (however, this factor may be better treated as
part of the goodwill of the company which owns the mine).
mine/quarry has low value near point of exhaustion. The value is low
because of the low amount of ore or mineral reserves available and the
immediate need to embark on a rehabilitation landscaping program for
the "hole in the ground", tailings and surrounds. However, the low
value may be tempered by the hole having a high value for waste dumping
purposes or even water storage purposes. For example, exhausted brick
pits at St Peter's in Sydney.
valuation after exhaustion of the mine/quarry will depend largely on
the cost of renovation/landscaping and the expected value of the land
on completion. If the mine is in or near an expanding urban centre it
may have a high potential value after renovation. For example, the land
can be used for industrial or residential purposes.
REQUIREMENTS ON REHABILITATION
and Works Inspection Act 1920 controls mining operations which disturb
the land surface, treatment and disposal of mine wastes and the
rehabilitation of affected land. The act prohibits undue impairment of
the amenity of an area through water pollution, excessive noise and
dust and unnecessary vegetation clearance. The act provides for the
regulation and inspection of mines and works to ensure that mining
operations and associated activities do not cause unnecessary impact on
Act 1971 regulates all classes of mining and mineral exploration
tenements. It requires amongst other matters, that the Minister have
regard to environmental aspects when considering terms and conditions
of a mining tenement which determine the way in which mining operations
can occur over a particular parcel of land. The act provides for
rehabilitation and restoration of land by way of:
Establishment of the Extractive Areas Rehabilitation Trust Fund (EARF)
Bonds for mining leases
Compensation through application to the appropriate court.
EXAMPLE - NSW
of the environment is expressly covered under part VII sections
117-120, Mining Act 1973. These include condition on the operation of
the Mining Lease (s118), rehabilitation of the site (s119) and
directions to comply and penalties for non compliance (s120).
of any land upon which mining operations are carried out is entitled to
receive compensation for any financial loss, hardship or inconvenience
suffered as a consequence of mining operations. The amount of
compensation can be either by way of agreement between the owner and
the operator or if they cannot reach agreement, by an appropriate
court. For example, under the Mining and Works Inspection Act 1920 (SA).