Financial Assurance for Mine Closure and Reclamation

Abstract

ICMM members are global leaders in the mining industry committed to providing continuous improvement in sustainable development performance. Responsible mine closure is a core component of this commitment. Environmental financial assurance for mine closure ensures that funds are available for decommissioning and reclamation of a site if an operator does not fulfill its obligations. It provides confidence to both governments and communities that satisfactory closure will be achieved. Consequently, ICMM members view the provision of financial assurance as an important aspect of the mining industry’s commitment to sustainable development. There is, however, a need to ensure that the application of financial assurance is efficient, fair, consistent and transparent. This paper builds on two earlier studies that examine financial assurance policies and practices in key mining jurisdictions and from the perspectives of mine operators, governments and financial institutions (Miller, 1998; International Council on Mining and Metals, 2005). Both reports are important background references to this paper and on financial assurance for mining in general.