Managing mine closure risks in developing communities — A case study, Kelian Equatorial Mining, Indonesia

G. McGuire

The Kelian gold mine which was developed in East Kalimantan Indonesia in 1990-1992 is scheduled to complete mining and processing operations in 2004. This will have a major impact on the neighbouring communities who have benefited from the jobs, economic activity and infrastructure development which has been generated by the mine. Currently, there are no formal regulations or standards specifying the procedures for relinquishment of mining leases in Indonesia. Furthermore, a move towards regional autonomy, providing greater authority and responsibility to local (regional) areas, has recently been implemented in Indonesia and limited capacity exists in the new regional governments. Consequently, in October 2000, Kelian Equatorial Mining (KEM) initiated a partnership with the local community and government to explore sustainable post-closure options for the mine site and community development programs. The Kelian mine closure strategy seeks full involvement of all stakeholders through the Kelian Mine Closure Steering Committee (MCSC) in the development of sustainable solutions which will enable communities to secure long-term benefits and minimise post-closure risks from the KEM operations. This organisation, jointly chaired by the Head (Bupati) of the regional West Kutai government and the KEM President Director, with representatives from the local communities, governments and NGOs, has developed a charter, a website and evaluation criteria to ensure accountability and transparency. There are four technical working groups, consisting of representatives from the mine, local community leaders, NGOs, universities, local, provincial and central government departments, which report to the steering committee. These working groups have researched, developed and recommended sustainable options to the steering committee. The MCSC has met quarterly to examine options in accordance with the criteria set out in the charter and has endorsed sustainable solutions which have support from government, community and the mine. This paper describes the closure risks, sustainable outcomes derived through the Kelian mine closure steering committee process and outlines the methodologies used to develop and endorse sustainable solutions in a society with limited capacity undergoing enormous change and uncertainty.

McGuire, G. (2003). Managing mine closure risks in developing communities — A case study, Kelian Equatorial Mining, Indonesia. Mining Risk Management Conference, Sydney, Australia, 9-12 September.

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Conference paper
Kelian Equatorial Mining
Managing mine closure risks in developing communities — A case study, Kelian Equatorial Mining, Indonesia