Why the Mine Closure Plan is Essential for Your Project?

The life cycle of a mining operation does not end with the exhaustion of the ore body or the interruption of activities, but with the execution of a meticulous and mandatory process: the Mine Closure Plan (PFM). This is a technical document that details the actions to be taken for the definitive cessation of operations. Far from being an isolated element, the PFM is an intrinsic and inseparable component of the Economic Exploitation Plan (PAE), which guides the entirety of mining operations.

The PFM’s regulatory foundation is consolidated in the Mining Code (Decree-Law No. 227/1967) and is detailed by ANM Resolution No. 68/2021, which revoked previous regulations. This regulation establishes that the PFM must be prepared by a legally qualified technician and be submitted for approval not only by the National Mining Agency (ANM), but also by the environmental licensing body. Its purpose goes beyond the cessation of activities, encompassing the environmental recovery of the degraded area, the decommissioning of facilities and equipment, the definition of the future use of the area, and the continuous monitoring of waste and sterile disposal systems, geotechnical stability, and aquifer behavior.

The influence of the Economic Exploitation Plan on the PFM:

The content of the PAE, which defines the mining method, production scale, and beneficiation, directly influences the PFM. Consequently, any modification to the PAE, such as adjustments for the exploitation of a new mineral substance or changes in the production process, must be submitted to the ANM with the Technical Responsibility Annotation (ART) and will require the revision and adjustment of the PFM.

Consequences of non-compliance:

Non-compliance with the provisions of the PAE, which include the PFM, can lead to severe sanctions. Mining that is not in accordance with the approved plan subjects the concession holder to penalties that can culminate in the lapse of the mining tenement. The ANM’s inspection, carried out by its Superintendence of Mineral Activity Inspection (SFI) and regional management offices, is strict in this regard, and can propose approval or issue requirements for the adjustment of PFM execution reports.

The PFM is also a central element in procedures for the extinction of mining tenements, such as renunciation. Renunciation, being an irrevocable act, requires the execution of the approved mine closure project. The ANM takes measures to ensure this execution and may apply sanctions in case of non-compliance. The inspection and approval of the final PFM execution report are essential for the homologation of renunciation. This scenario demonstrates that the tenement holder’s responsibility remains active and is supervised until all stages of closure are completed and approved. The observance of the PAE, which includes the PFM, is, therefore, a pillar of risk management and the legal security of the venture.

Learn more about the Economic Exploitation Plan (PAE).

Need more information about the PFM? Get in touch for specialized consulting.

📷Canva/Edition by ÍGNEABR

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