96/03353 - ‘To pump or not to pump’ cost-benefit analysis of future environmental management options for the abandoned Durham coalfield

Abstract

Deep mining activity has totally ceased in the Durham coalfield, and withdrawal of the regional dewatering scheme is being contemplated. Consequent groundwater rebound is expected to have severe and expensive environmental consequences, which could only be entirely avoided through indefinite pumping. However, continued pumping is expensive, at about $1 million/annum. The options of either abandoning or continuing pumping have differing time streams of future costs and, consequently, direct comparison of the expenditures involved is difficult. Both options are therefore analysed using economic evaluation criteria in order to determine the lowest cost alternative for the future. The overall outcome of the economic analysis, using both net present value and equivalent annual cost criteria, demonstrates that the option of continued pumping is less expensive than the option of abandoning pumping in all cases.