Closure planning is a consideration during all stages of our operations. It is our intention that through careful and proactive planning we will mitigate the social and environmental impacts of eventual mine closure. Importantly, the latter part of 2008 presented an important reminder to the industry that the early unforseen suspension of activities also needs to be considered in an overall planning framework.

The current OZ Minerals Closure Standard aims to ensure that potential closure and post-closure risks and opportunities are effectively identified and managed throughout the mining life-cycle. In addition, the group standards for waste rock management and tailings management include requirements for the management of these wastes to promote beneficial post-mining land uses and reduce post-mining rehabilitation and closure liability.

All OZ Minerals operations, with the exception of Century, have detailed closure plans in place as at the end of 2008. At Century, much of the key information necessary to prepare a closure plan is either in place or under development, and work has commenced to collate that information into a single document.

Independent external reviews were conducted in 2008 of our financial provisions for closure. These reviews aimed to verify that our mine closure plans are current and are accurately reflected in financial provisions for closure that inform the group annual accounts. Financial sureties are also in place for operations in accordance with government requirements or company commitments. Costs of progressive rehabilitation are considered normal operating expenses and so are not included in mine closure accounts.

In December 2008 we announced that our Avebury operation was moving into care and maintenance. Accordingly, a care and maintenance plan was issued to the Tasmanian Government as part of the orderly temporary cessation of operations.

The potential impacts of closure are an ongoing consideration in our engagement with governments and local communities and our support for community development activities, including development of local businesses not related to mining activities.

Social aspects of closure planning at Century

In July 2008, a study into the social aspects of closure at Century mine was released by the Centre for Social Responsibility in Mining at the University of Queensland.

The report, titled Completion of Mining at OZ Minerals Century Mine: Implications for Gulf Communities provides an assessment of the impact of the Century Mine on the Gulf Communities, documents the likely impacts of closure and identifies strategies for mitigating these impacts and maximising long term development outcomes for the region.

The key conclusions of the study were:

• The operation has become a major provider of jobs and training opportunities to local Indigenous people
• The operation has significantly increased income flows into the region

However:

• Employment and financial benefits have been unevenly distributed
• Only a small proportion of the increased income has been converted into savings or long-term assets
• The successful Indigenous businesses which have been established are not likely to be sustainable post closure
• Skill levels obtained through training are still at relatively low levels
• The quality and availability of housing remains a significant issue

The report makes a number of recommendations to assist in addressing these issues. With mine closure some seven years away, the attention of lower Gulf stakeholders will become increasingly focussed on the socio-economic implications of completion of mining.