Financial Surety : Guidelines for the Implementation of Financial Surety for Mine Closure

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.

Bibliographic Details

Main Author:	Sassoon, Meredith
Language:	English en_US
Published:	World Bank, Washington, DC 2009-06
Subjects:	ACCOUNTING, ACID DRAINAGE, ADEQUATE ASSURANCE, ADMINISTRATIVE COSTS, AIR QUALITY, ANNUAL PAYMENTS, AUTOMATIC TRIGGER, BALANCE SHEET, BANK GUARANTEE, BANK GUARANTEES, BANKRUPTCY, BOND, BOND ISSUER, BOND · INSURANCE, BONDS, CASH FLOWS, CASH OUTFLOW, CASH PAYMENT, CASM, CERTIFICATE OF DEPOSIT, CHECKS, CLAIM, CLOSURE COSTS, CLOSURE PLAN, CLOSURE PLANS, COMMERCIAL BANKS, CONTRACTUAL ARRANGEMENT, CREDIT RATING, CREDIT · PERFORMANCE, CREDITWORTHINESS, DEPOSIT, DEVELOPING COUNTRY, DEVELOPMENT OF MINERAL RESOURCES, DISBURSEMENT, DISCOUNT RATES, DISPOSITION, DIVIDEND, ECONOMIC FACTORS, ECONOMIC GROWTH, EITI, EMISSIONS, ENCUMBRANCES, ENTITLEMENTS, ENVIRONMENTAL, ENVIRONMENTAL COMPLIANCE, ENVIRONMENTAL COSTS, ENVIRONMENTAL IMPACTS, ENVIRONMENTAL ISSUES, ENVIRONMENTAL MANAGEMENT, ENVIRONMENTAL PERFORMANCE, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL REHABILITATION, EQUIPMENT, ESCROW, EVENT OF BANKRUPTCY, EXPENDITURE, EXPLOITATION, EXTRACTIVE INDUSTRIES, EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE, FINANCE CORPORATION, FINANCIAL CAPACITY, FINANCIAL FAILURE, FINANCIAL HEALTH, FINANCIAL INSTITUTION, FINANCIAL INSTRUMENTS, FINANCIAL RESOURCES, FINANCIAL STABILITY, FINANCIAL STATEMENT, FINANCIAL STATEMENTS, FOREST MANAGEMENT, FRAUD, FUND MANAGEMENT, FUND MANAGER, GAS, GAS FLARING REDUCTION, GOOD GOVERNANCE, GROUND WATER MONITORING, HAZARDOUS MATERIALS, HEALTH AND SAFETY, HOLDING, IMMOVABLE ASSETS, INCOME, INCOME TAX, INDEPENDENT THIRD PARTY, INSTITUTIONAL ARRANGEMENTS, INSTRUMENT, INSUFFICIENT FUNDS, INSURANCE, INSURANCE COMPANY, INSURANCE POLICY, INSURANCE PRODUCTS, INTERESTED PARTIES, INTERNAL AUDIT, INTERNATIONAL FINANCE, INVESTMENT POLICY, ISSUANCE, JUDICIAL PROCEEDINGS, JURISDICTION, JURISDICTIONS, LAND MANAGEMENT, LAND POLICY, LAND RECLAMATION, LAND USE, LANDOWNER, LARGE MINING, LEGAL FRAMEWORK, LEGAL INSTRUMENTS, LEGAL REQUIREMENTS, LEGISLATION, LETTER OF CREDIT, LETTERS OF CREDIT, LEVEL OF PAYMENT, LEVY, LIABILITY, LIGNITE, LIQUID ASSET, LIQUIDITY, LONG-TERM INVESTMENT, LOSS OF VALUE, MARKET VALUE, METALS, MINE CLOSURE, MINE CLOSURE PLAN, MINE DEVELOPMENT, MINE OPERATOR, MINE SITE, MINE SITE REHABILITATION, MINERAL DEVELOPMENT, MINERAL LANDS, MINERAL POLICY, MINERAL RESOURCES, MINERAL RESOURCES AUTHORITY, MINERALS, MINES, MINING ACTIVITIES, MINING ACTIVITY, MINING CLAIMS, MINING COMMUNITY, MINING COMPANIES, MINING COMPANY, MINING INDUSTRY, MINING INFRASTRUCTURE, MINING LEASES, MINING LICENSES, MINING OPERATION, MINING OPERATIONS, MINING OPERATORS, MINING PERMIT, MINING POLICY, MINING PROJECT, MINING PROJECTS, MINING RECLAMATION, MINING REGULATION, MINING TITLE, MINING TITLES, MINING WASTE, MPC, NATURAL RESOURCES, OIL, OIL COMPANIES, OUTSTANDING AMOUNT, PARENT COMPANY, PARENT COMPANY GUARANTEE, PENALTIES, PENSION, PENSION FUND, PERFORMANCE BOND, PERSONAL PROPERTY, PHYSICAL REHABILITATION, POLICY MAKERS, POLLUTION, POLLUTION CONTROL, POVERTY ALLEVIATION, PRICE DIFFERENCES, PRIOR TO BANKRUPTCY, PUBLIC LAND, PUBLIC LANDS, PUBLIC NOTICE, RECLAMATION, RECLAMATION BONDS, RECLAMATION COSTS, RECLAMATION REQUIREMENTS, REGULATORY AUTHORITIES, REGULATORY AUTHORITY, REHABILITATION CODE, REHABILITATION PLAN, REHABILITATION PLANS, REHABILITATION PROGRAM, REHABILITATION PROGRAMS, REMEDY, REMOVAL OF PLANT, RESERVE, RESIDUAL RISK, RESTORATION, RETURN, RISK ASSESSMENTS, RISKY ASSETS, SCHEDULE OF PAYMENTS, SECURITIES, SINKING FUND, SITE RECLAMATION, SMALL MINES, SMALL-SCALE, SMALL-SCALE MINERS, SMALL-SCALE MINING, SOCIAL ASPECTS OF MINE CLOSURE, SOCIAL SAFEGUARDS, SURETIES, SURETY, SUSTAINABLE DEVELOPMENT, TAILINGS, TAILINGS FACILITIES, TAX, TAX CONCESSIONS, TAX REDUCTION, TITLE, TITLES, TRANSFER OF LIABILITY, TRANSPARENCY, TREASURIES, TREASURY, TRUST FUND, TRUST FUNDS, TRUSTEE, TRUSTEES, UNDERGROUND MINES, WASTE MANAGEMENT, WASTE ROCK, WATER POLLUTION,
Online Access:	http://documents.worldbank.org/curated/en/2009/06/10956651/financial-surety-guidelines-implementation-financial-surety-mine-closure https://hdl.handle.net/10986/18386
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