Legacy Mine Economics: Managing Environmental Risk While Preserving Future Value

We were pleased to be joined by John Forwood, Chief Investment Officer with Lowell Resources Fund. John discussed the complexities of valuing legacy mine sites, weighing environmental liabilities against potential future asset value. Closed mine sites aren’t necessarily “done”, they’re long-term environmental liabilities with real rehabilitation obligations and uncertain costs. But they can also be assets, with many mines being restarted years down the track due to changing commodity prices and technology.

This session explored how old mines are commonly re-evaluated for their future potential and how mechanisms like bonds and rehabilitation funds shape closure decisions, reduce legacy risk, and still allow flexibility if site value changes over time.