ERC calculator mining – Module 5 transcript

Watch the video Mining ERC calculator training – Module 5 – Focus items to learn about the calculator items in more detail.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for mining.

Module 5. In this module we will focus on some particular items in more detail as they are important to understand while using the calculator.

Firstly, there are several multipliers that get applied to the total cost. These can be found in the summary sheet and were briefly mentioned in Module 2. The first is the project management multiplier, which is calculated at 10% of the total ERC amount. Generally, this covers the cost to government for the management and the rehabilitation activity, and includes things like planning and permits, procurement, stakeholder engagement and legal costs. The user can specify their own project management multiplier, and if so, must provide justification in the space provided and attach the relevant quotes to their ERC calculation. The environmental maintenance and monitoring multiplier is calculated at 5% of the total ERC amount. This covers post closure maintenance activities like minor repairs, revegetation, weed management, and fence and signage repairs. It also covers a wide range of post closure monitoring activities, which include inspections, assessments, surveys, and reporting. Again, the user can specify their own environmental maintenance and monitoring multiplier, and if so must provide justification in the space provided and attach the relevant quotes to their ERC application. The calculator also applies a contingency of 10% to account for general uncertainties in the cost estimation and recognize that assumptions are being made for the default rates.

The waste levy is a new addition in the 2022 version of the calculator, and it is designed to account for specific types of waste that go to landfill in Queensland. This levy only applies if your mining activity falls within one of the specified areas. For the ERC, concrete, bitumen, asbestos (free and within soil), solid salt and contaminated soil are the primary wastes to which the levy may apply. Steel, copper, and other metals are not considered a waste as they have value as scrap. Consistent with the policy decision on scrap, scrap value is not offset. The calculator does not charge a gate fee or levy on these materials but does allow for transport to a facility. We will go into more detail on the waste levy register as a worked example in a later module.

Capping is relevant for overburden dumps and waste rock dumps, heap leach pads and tailings storage facilities. Capping is the layers placed over the top of these items to make them safe and generally consist of a working rock layer, capillary break layer, a low permeability layer and growth media. The makeup and thickness of these layers is dependent on the risk category chosen by the user for that item. The user must provide notes for the rationale behind the risk category selected. For details on the characteristics of waste rock, heap leach and tailings for each category, please see the detailed descriptions in the user guide. The calculator allows the flexibility for the user to enter capping thicknesses less than the defaults. If this occurs, it will raise an alert in the capping alert sheet and the user must provide justification against this alert.

Revegetation is primarily broken into two categories with a third option for certain circumstances. They are Pasture, Native and Arid. The default rates throughout the calculator generally include the cost of seeding, so the user is not required to enter additional revegetation costs elsewhere. If seeding is not included, it is specifically stated in the rate scope. The General Land Rehabilitation sheet includes additional rows to cover revegetation of land not covered by other sheets. Such occurrences are likely rare and may include land where preliminary work like clearing for an activity was undertaken, but the activity did not go ahead.

The calculator applies a haulage rate in numerous locations throughout to take into account the transport of materials or decommissioned equipment. The default rates that include haulage, as described in their scope and assumptions, calculate the cost for transport for several material or item types and for both ways out and back. Where a distance selection is made, this distance is considered one way as the back-end calculations account for the return trip.

A range of fleet sizes is included in several input sheets to reflect the varying size of rehabilitation projects. The fleet size selected depends on the activity being undertaken and the quantity of material being moved. For more detail on the types of activities for different fleet sizes, please consult the user guide. Mobilisation of fleet is calculated based on a round trip or mobilisation and demobilisation. However, the distance the users select is the one way distance. The user must decide what is reasonably appropriate to this mining activity and choose a distance range and fleet size. For example, if the closest major centre where fleet would be sourced is 280 kilometers away, the user would select the 150 to 500 kilometer range. Then for each range there is a corresponding fleet size. If the total cost of the ERC is less than $1,000,000 then the small project mobilisation rate can be used by placing a 1 in the summary sheet.

As always, for more information or specific instructions, please consult the user guide, which is also available on the business Queensland website below the download for the calculator. See you in the next module.

Watch the video: Module 5 – Focus items.