Premature Mine Closures - Causes And Effects

Over 800 mines have closed in Australia in the past 25 years. This paper summarizes the data obtained from those closures and includes all Australian States and Territories and all commodities, including metalliferous, coal and industrial minerals. Twenty five percent of the mines closed due to resource exhaustion or depletion; 24% due to high costs, price drops, or declining grades; 8% due to open pit resource depletion (but with underground reserves remaining) or underground reserves depleted (but plans to open cut remainder) and 7% due to receivership or voluntary administration. The environmental, social and economic impacts of these closures are also significant and include acid mine drainage and impact on mine employees. An understanding of the causes of premature mine closure will better equip mining companies and governments to better manage future mine closures, wherever in the world the mines are operating.