Publication: Financial Surety : Guidelines for the Implementation of Financial Surety for Mine Closure
Date
2009-06
ISSN
Published
2009-06
Author(s)
Sassoon, Meredith
Abstract
It is now accepted practice that when a
company relinquishes a mining title, whether for an
exploration or mining site, it is responsible for carrying
out the rehabilitation of that site prior to departure. To
ensure this is the case, most jurisdictions now require some
form of closure plan or rehabilitation program to be
submitted to the regulatory authority prior to the start of
any work on the site. It is an increasingly common
requirement for the closure plan to contain details of the
estimated cost of rehabilitation and for a financial surety
to be established at the same time. This report aims to
provide governments with the information they need to make
their own informed decisions. It is based on a review of
existing financial surety systems in a number of countries.
Questionnaires were sent out to a total of fourteen
regulatory authorities; of these, nine provided sufficient
detail about their existing financial surety systems to be
included as full case studies. These are presented in the
section case studies along with a summary of the latest
European Union (EU) waste directives. Except where otherwise
stated, the financial surety applies to all stages of a
mining project, regardless of size. The purpose of the
financial surety is to ensure that there will be sufficient
funds to pay for site rehabilitation and post closure
monitoring and maintenance at any stage in the life of the
project, including early or temporary closure. The main aim
of site rehabilitation is to reduce the risk of pollution,
restore the land and landscape for an appropriate use,
improve the aesthetics of the area, and prevent any
subsequent degradation. The extent and cost of final site
rehabilitation can be reduced if the site is rehabilitated
even as it is being mined, so that the rate of restoration
is similar to the rate of exploration or exploitation. This
ideal is not often achieved, however; the majority of
rehabilitation usually takes place once work on the lease
has ceased.
Citation
“Sassoon, Meredith. 2009. Financial Surety : Guidelines for the Implementation of Financial Surety for Mine Closure. Extractive industries and development series;no. 7. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/18386?show=full License: CC BY 3.0 IGO.”