A framework for measuring and internal reporting of environmental costs at a mine

Abstract

The purpose of the study is to investigate the current modus operandi of measuring and reporting environmental costs at a South African platinum mine which will finally allow for a framework to be set to improve the mentioned measuring and reporting. This research follows a case study approach, which is both explanatory and exploratory, which is inter alia to do a gap analysis regarding to the current measuring and reporting of environmental costs. Documents and different activities of the two involved Departments, Environmental and Management Accounting, responsible for the measuring and internal reporting, are considered. The study found that environmental costs are currently being measured by the mine, but they are not classified as such and are absorbed into the overhead or utility accounts. Because of this, reporting of environmental costs are lacking in the integrated statements of the mine. The value of the study is that it provides a framework in order to assist mining companies to measure and report on environmental costs – in such a way that they can improve their environmental and economic performance.