Case Study: Deloitte avoids overfunding and saves billions on mine rehabilitation with Palisade @RISK

Deloitte Develops @RISK Models to Protect Financial Assets and the Environment

Deloitte Actuarial and Insurance Solutions (Deloitte AIS), a South Africa–based actuarial and insurance consulting team serving insurers and resource companies, needed to design long-term funding strategies for legally required mine environmental rehabilitation. With volatile liabilities and backing assets, plus the risk of early mine closures, Deloitte AIS faced potential funding shortfalls or inefficient overfunding, so they turned to Palisade’s @RISK to capture and analyze these stochastic risks.

Using Palisade’s @RISK, Deloitte AIS built Monte Carlo stochastic models alongside discounted cash‑flow analysis and efficient‑frontier optimization to model asset growth, liabilities, interest‑rate and exchange‑rate scenarios, and mine closure probabilities. The Palisade-enabled solution identified funding strategies that avoided an eventual overfunded position worth several billion rands and reduced required contributions by nearly half, delivering compliant, cost‑efficient rehabilitation funding and stronger risk management.

Deloitte

Jaco Van Der Merwe

Director of Short-Term Insurance