A guide to leading practice sustainable development in mining

The Argyle Diamonds case study (see LP Indigenous p. 50) illustrates the benefits of the
partnering approach for land rehabilitation and community capacity building. By adopting
the principles of environmental co-management, the rehabilitation program has led to:
the introduction (into the rehabilitation areas) of plant
species of significant importance to local people
the development of a small business enterprise within the two Aboriginal
communities that provides seed and raise seedlings for the rehabilitation process
employment opportunities (in horticulture-related activities)
for elderly people and women with children who are not in a
position to gain employment outside the community
employment opportunities for some community members within Argyle operations.
A world class example of mine closure can be found in the Kalimantan region of Indonesia.
MINING COMMUNITY: West Kutai District
LOCATION: East Kalimantan (Borneo), Indonesia
BRIEF DESCRIPTION: Open pit gold mine
AREA OF LEADING PRACTICE: Mine Closure
HANDBOOK(S) REFERENCE: Closure and completion
DESCRIPTION OF INNOVATION:
In 2001, a partnership was established between Kelian Equatorial Mining (KEM),
the West Kutai community and the Indonesia government to negotiate and
agree on all aspects of decommissioning and relinquishing the Kelian gold mine
following 13 years of operation. This partnership occurred during a period of
civil unrest in a country undergoing enormous political and social changes with
no legislation to guide the process. The outcomes from this partnership have
not only informed best practice for mine closure elsewhere in the world but
guided the development of closure legislation within Indonesia.
Background
KEM was a medium sized gold mine producing approximately 400,000 oz/
annum which operated for 13 years from 1992 to 2005. Approximately 2000
local community members (mostly alluvial miners) were relocated (some
forcibly) to an adjacent town, called Tutung, prior to the commencement of
construction. During peak production the mine employed approximately 2,500
employees and contractors, with a 5% expatriate workforce mainly from
Australia. Post-closure land use options and ongoing maintenance activities
and governance arrangements were determined via a consultation process
involving government, community and mining representatives that were
directed by a Mine Closure Steering Committee and four working groups over
a three year period. The establishment of these closure committees occurred
after the demise of the Suharto government during a period of wide spread
A GUIDE TO LEADING PRACTICE SUSTAINABLE DEVELOPMENT IN MINING 141