Page Last Updated: October 5, 2020
Tailings Management in Extractives – Standard-Setting Project
The current standards for the Metals & Mining and Coal Operations industries within the Extractives & Minerals Processing Sector are being evaluated for potential revision to ensure the set of disclosures fully captures the risks associated with company management of tailings storage facilities (TSF). The project also aims to improve global applicability of the standards.
Tailings are mining operations waste, usually stored in ponds or dams, frequently covering very large land areas. Impoundments for tailings can present a significant threat if they collapse, potentially leading to the loss of life and/or damage to property and ecosystems, which bears significant financial implications. Recent catastrophic failures of TSFs include Imperial Metal’s 2014 release of waste slurry in Canada’s Polley Lake, a 2015 dam failure in Mariana, Brazil (a Vale/BHP joint venture), which entailed $6 billion in expenditures to restore the environment and affected communities, and Vale’s tragic January 2019 dam collapse in Brumadinho, which resulted in a $4.95 billion loss for the company in the first quarter after the disaster.
Since the SASB standards were codified in November 2018, there has been a significant evolution of investor interest and corporate disclosure related to tailings facilities management. Management of tailings facilities has been included in the SASB standards for the Metals & Mining and Coal Operations industries since SASB developed its first, provisional exposure draft for these industries in 2014. However, as global investors continue to express interest in the topic and evaluate the utility of various existing and proposed reporting frameworks, we believe there is opportunity to improve the industry standards in this area. We can even see some Oil & Gas – Exploration & Production industry companies, that own or operate tailings storage facilities management, benefiting from improved transparency on the subject, given the investor interest and materiality of the topic.
Exposure Draft Development
Exposure Draft and Basis for Conclusions development for both industries, which will include final topic scope summaries and newly formulated metrics for the Waste & [Hazardous Materials] Management and Tailings Storage Facilities Management topics, and explain reasoning behind proposed changes. Target finalization date is November 18th 2020.
Board’s vote on the Exposure Draft ahead of the December Standards Board meeting.
There are no published documents or drafts at this time.
Project Update and Call for Feedback: Tailings Management in Extractives, March 2020, online blog
Briefing Document, April 2020, PDF
Board Meeting Outcomes
- Staff presented metrics developed for the two disclosure topics under the project’s scope – Waste & Hazardous Materials Management and Tailings Storage Facilitates Management. Metrics were modeled for the Metals & Mining Industry and would be modified for Coal Operations Industry appropriately.
- The Board discussed open issues such as the lack of globally accepted definitions of hazardous waste and materials; the preferred format of disclosure for the Tailings Storage Facilities Management topic – aggregate per company vs. tabular per site; and options for defining “material findings” that may result from companies’ dam safety reviews.
- Next steps in the project will consist of developing exposure drafts for both industries and submitting those to the Standards Board for a vote in the coming weeks
For a full list of past and upcoming Standards Board meetings, as well as associated materials, please visit our Board Meetings Calendar & Archive.
Fill out this form for project-specific notifications about calls for public feedback, advancement in project phases, and research questions.
The staff has prepared this summary for informational purposes only. Any Standards Board decisions are tentative and do not change current accounting. Official positions of SASB are determined only after extensive due process and deliberations.