Within the last 20 years, mine closure liabilities represent an increasing proportion of the balance sheet of a mining company. This presentation examines regulatory trends related to closure obligations in the Americas as well as financial disclosures by public mining companies with regard to asset retirement obligations and environmental liabilities. Regulatory trends include national and, where applicable, regional (e.g., provincial, state) governmental regulations that monitor and revisit mine permitting requirements. In North and South America, the sharing of experiences related to mining legacy issues triggers regulatory revisions at a national and/or international basis. In addition to permitting trends, international accounting standards recognize reclamation and closure obligations of public mining companies by estimating Asset Retirement Obligations through use of financial models. Whether a mining company is audited under U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards, accounting firms demand a fair-value estimate of the legal closure obligation for each mining property.
