Net Present Value Calculations for Mining Post-Closure Financial Assurance.

Most regulatory jurisdictions now require financial assurance for mines for post-closure activities, which typically include long-term monitoring and maintenance, and most importantly post-closure water treatment. Critical choices in calculating post-closure financial assurance include using a reputable cost estimation model to establish the amount needed for reclamation, selecting a realistic net return-on-investment for post-closure trust funds, and choosing the period of time over which the net present value calculation of the financial assurance is based. A conservative estimate of the amount of financial assurance is warranted to protect the public from assuming these costs. However, some regulatory agencies use financial assurance estimate practices that are arbitrary. The data and procedures needed to analyze and recommend conservative net present value calculations are readily available, but in too many instances are not being utilized. [ABSTRACT FROM AUTHOR]