Niboi Consulting helps clients provide some realism to their closure plans.
- How confident are you that your closure cost estimates and closure provisions reflect the actual liability of closure?
Is your organisation exposed? Are your estimates dangerously optimistic?
- Are the estimates unnecessarily conservative with contingencies built upon contingencies? Are the closure plans, and hence cost estimates, based on options that are not needed or justified? Do they reflect someone’s favourite research project?
- Is there a disconnect between operational planning and closure planning? Are operational decisions being made today that will result in substantial future closure liabilities, without any consideration of those potential liabilities?
Our approach to closure planning provides a more realistic picture of liabilities by accounting for activities where large uncertainty exists. We model uncertainty & risk cost and evaluate so-called “intangible” risks, such as community concerns, reputation impacts & future environmental changes by adopting a common financial measure for all costs and risks. The approach allows integration with ongoing operational planning and is not time limited in that it is applicable to both closure in the short & long term.
It is a robust and transparent process and provides defensible closure provisions for inclusion in company balance sheets.