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Mine Closure Security Filing

Mine closure security filing software that shows the whole sum on one screen, ties each input to its owner and page, and finds the security due before the filing goes in.

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Follow the reserves call from 09:08 to 09:44 ↓
The problem

Mine closure security hangs on a reserves number two teams hold differently

The filing goes in on numbers from six teams: reserves, mine planning, reclamation planning, closure cost, treasury and revenue accounting. Each team's number is right on its own date. Nobody checks that the reserves in the filing still match the mine plan approved last month.

The closure lead starts from last year's workbook and pastes in what comes back by email. Treasury reads the last line. A difference in one input can be the gap between owing nothing and posting a large letter of credit, and it surfaces days before the due date, if at all.

Built forMine closure leadsTreasurersChief financial officersReclamation plannersInternal auditors

The Problem Today

A mine's security bill turns on numbers held by six teams, and nothing checks that they agree.

Kept by separate teams

  • Reserves
  • Mine plan
  • Liability
  • Netback
  • Two dates, one quantityA newer plan can drop barrels still in the filing
  • Security that lapsesA letter of credit can expire before the next filing

The Solution

  1. Each input tiedInputs from six teams, each tied to its document and page
  2. Two numbers foundBoth pages side by side, and what each does to the sum
  3. The sum, tried and testedTry a value on screen; a skeptic reads the draft before anyone signs
  4. The treasurer signsClosure lead proposes; treasurer opens both pages, then signs

Built-in controls

  • Signer opens both pages before signing
  • Agents never pick a number or file
  • Nobody signs their own proposal

What You Get

Treasury knows what security is due before the filing goes in, with time to arrange it.

  • Each number has an ownerEach input names its team, its document and its page
  • Differences shownEach place teams disagreed, with both pages and a signer
  • The cost of carrying itFacility room and yearly fee shown before treasury commits
One reserves call, by the clock

One mine closure security filing, decided on two pages

The yearly filing is due in 26 days. The draft uses one reserves number and the newest mine plan another. This is the morning the closure lead and the treasurer settle it.

demoSample data throughout: the mine, its owner, its people, each figure and the filing rule.

  1. 01Before 09:08

    The whole sum on one screen, and a ratio of 3.29 that may not hold

    Mine closure lead

    The calculator writes the filing as one sentence: reserves times netback times the price outlook factor, plus security held, against three times the liability. Each chip names the team and page it came from. The ratio reads 3.29, above the line, with nothing due. One chip carries a warning: the reserves have two numbers.

  2. 02Before 09:08

    11 places where two teams use different numbers, 3 still open

    Mine closure lead

    Agents compared what the filing, the reserves evaluation, the mine plan, the reclamation plan, the liability estimate, the ledger and the letter of credit register say. Eleven inputs disagree. Eight are settled and signed. Three are open: reserves, production rate and water treatment years. Each row says what the other number would do to the sum.

  3. 0309:08

    1,920 million barrels on page 14, 1,710 on page 22

    Mine closure lead

    The reserves evaluation counts 1,920 million barrels. Its newer neighbor, the mine plan, drops the Pit 2 East block, 210 million barrels under thicker overburden that no longer pays, and schedules 1,710. She opens both pages. Both are right on their own date, the reserves engineer has answered, and which one the filing uses is a filing decision.

  4. 0409:20

    The closure lead proposes the plan's 1,710, with a reason in her words

    Mine closure lead

    She picks the mine plan's number, tags it newer approved document, and writes why: the newest approved plan no longer mines Pit 2 East. Proposing stayed locked until she had opened both pages. The effect sits beside her choice: ratio 2.93 instead of 3.29, and $344.2M of security due instead of nothing.

  5. 0509:26

    The treasurer cannot sign until he opens both pages and the answer

    Treasurer

    The largest call in the filing lands in the treasurer's queue with a clock. He sees the proposal, who made it and why. The sign button says what it needs: both pages opened by him and the reserves engineer's answer read by him. Her opens do not count for his signature.

  6. 0609:41

    Decided: 1,710 million barrels, with three names on it

    Treasurer

    He opens page 14, then page 22, reads the answer and signs. The decision shows who proposed it, who answered and who signed, each with the time. A reopen needs a written note. The agent that found the difference never picked a side; it showed both pages and the sum on each.

  7. 0709:44

    The ratio falls to 2.93, and $344.2M of security is due

    Treasurer

    The calculator recomputes from the signed number: assets in the test $14,074.4M against a line of $14,418.6M. Reserve life drops from 21.1 to 18.8 years, still above the 15-year line in the sample rule. A sensitivity note warns that 0.02 on the price outlook factor moves the security due by $344.2M.

  8. 08After the signature

    The new letter of credit fits the facility with $41.2M to spare

    Treasurer

    Security held is $52.4M on two letters. The facility is $600.0M with $214.6M used, so the $344.2M needed leaves $41.2M. At 0.85% a year, sample bank terms, it costs $2.93M to carry. One more line matters: the second letter expires before the next filing, and its renewal letter has not arrived.

  9. 09At any time

    Each page opened, each answer and each signature, chained by hash

    Internal auditor

    The trail lists the closure lead opening both pages and proposing, the treasurer opening them again, reading the answer and signing, and the recompute that followed. Earlier rows show the agents finding each difference and asking its owner. Each row carries a hash of the one before, and the evidence pack exports as a real file.

The reclamation security sum on the plan's 1,710 million barrels

The same calculation the filing makes, line by line, with the number the treasurer signed.

Reserves × 3-year netback × price outlook factor1,710 million bbl × $10.25 × 0.80$14,022.0M
Plus security already held$52.4M
Assets in the test$14,074.4M
Three times the closure liability3 × $4,806.2M, undiscounted$14,418.6M
Security due before filing$14,418.6M − $14,074.4M, which brings the ratio back to 3.00$344.2M

demoSample data, from the working solution.

Around the filing

The rest of the filing, from inputs to the draft a reader sees

Inputs, skeptic questions, queue, gates and the draft: what the closure lead and the treasurer work from before signing.

Read as a skeptic wouldTen questions a doubtful reader would ask, each with its sum, such as probable barrels valued like proved ones. The reader can be wrong; a person decides each.
All 236 inputsEach input by team, value, source page and status: 219 tied, 11 with two numbers, 6 waiting for a source. Clicking a row opens its source document.
The treasurer's queueFour items with days left: a revenue close memo, the bank's renewal letter, the new letter of credit and the sampled lot of tied inputs.
Six gates before signingDifferences, sources, the lot, skeptic questions, security and signatures. The closure lead prepares, the treasurer signs, and nobody does both.
The filing, as a reader sees itBuilt from decided numbers only. A value tried on the calculator never reaches it, and it stays a draft until the treasurer signs.
Water treatment yearsClosure cost says 25 years, the reclamation plan 40. If all 40 were active treatment, the security due would be $679.6M. The planner has not answered yet.

demoSample data, from the working solution.

Three differences a workbook would carry into the filing

Each sat in a team's own document, correct on its own date.

Barrels the plan no longer mines

210 million barrels of probable reserves in the filing, removed from the newest mine plan.

A letter that expires first

The second letter of credit, $30.0M, expires before the next filing. Without renewal the security due rises to $374.2M.

A price deck that can erase the bill

The planning deck's 0.82 against treasury's 0.80 moves the security due from $344.2M to $0, so the deck's owner does not sign it.

demoSample data, from the working solution.

Picking the number and filing it stay with people

Agents gather, tie, compare and recompute. These calls are not theirs.

No agent picks a numberThe comparer lays both pages side by side and shows the sum on each. The closure lead proposes.
Nobody signs their own deckA number the treasurer owns, such as the price outlook factor, goes to the chief financial officer.
A tried value is never filedTrying a value moves the screen only. The filing takes signed numbers.
No message to a bankThe letter of credit watcher tracks room, expiry and fees. The treasurer requests, and the chief financial officer countersigns.
What the regulator will acceptThe product does not say. The regulator decides, and the sample rule is set from the customer's own filing guide.

Who proposes, who answers and who signs the security call

Every decision in the filing carries at least two names.

Mine closure lead
Sees
The calculator, each difference and both of its pages
Signs
Proposes each decision with a reason, and prepares the filing
Treasurer
Sees
The proposal, both pages and the owner's answer, all opened by him
Signs
Each difference, the lot of tied inputs and the filing
Chief financial officer
Sees
Treasury's own numbers and the disclosure question on two reserves figures
Signs
What the treasurer owns, and the countersignature on a new letter of credit
Reserves engineer
Sees
The difference on reserves and production rate
Signs
Answers in his own words; the ruling is not his
Internal auditor
Sees
Everything, read only
Signs
No signature; exports the trail and the evidence pack
The agents

Agents that gather, tie and compare, and leave the choice to the treasurer

Each has a job and a thing it may not do.

Input gatherer

Pulls the inputs from the reserves, mine planning, land survey, ledger, treasury and document systems.

  • Never types a value nobody sent
  • Never guesses a late source
Tie-out checker

Ties each input to its page and date.

  • Never changes a value
Number comparer

Finds where two teams use different numbers and lays both pages side by side.

  • Never picks a number
Security calculator

Recomputes assets, ratio, security due and reserve life for each value tried or proposed.

  • Never files an unsigned value
  • Never says what the regulator will decide
Skeptic reader

Reads the draft as a doubtful reader would.

  • Never changes the filing, and can be wrong
Letter of credit watcher

Tracks letters held, expiry dates, facility room and carrying cost.

  • Never sends anything to a bank
Filing assembler

Writes the filing tables and notes from decided numbers.

  • Never fills a gap silently
  • Never marks the filing signed

What treasurers and closure leads ask about mine closure security

What is mine closure security?

Mine closure security is the money a mine posts, usually as letters of credit, so that closure can be paid for if the operator cannot. This product builds the yearly mine closure security filing: it ties each input to its page, finds where teams disagree, and recomputes what is due.

Where do the inputs come from?

From six teams and their systems: the reserves evaluation, the mine plan, the reclamation plan and land survey, the closure liability estimate, the ledger and the letter of credit register. Each input keeps its document, page and date.

Is this mine closure financial assurance software for any rule?

It follows the customer's own filing guide, which the customer loads. The rule in the sample is labeled as a sample rule, and the product never says what the regulator will accept.

How does it handle a reclamation bond or letter of credit?

It shows what is held, what expires before the next filing, the room left on the facility and the yearly fee. The treasurer requests a new letter, the chief financial officer countersigns, and nothing goes to the bank from the product.

Can we try a different value before deciding?

Yes. Any chip on the calculator can take another value, and the ratio and the security due move at once under a band that says trying, not saved. Only a signed decision reaches the filing.

Does it update the closure liability estimate?

It reads the estimate and ties each line to its page. Where the estimate and another plan disagree, such as water treatment years, it raises the difference with its owner and shows the effect. People decide.

What does internal audit get?

A read-only view of everything, a trail where each row carries the hash of the one before, and an evidence pack that exports as a file.

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Bring last year's filing
and this year's inputs.

We will tie your inputs to their pages and show you where your teams disagree, before your filing goes in.

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