Mining and Reclamation Bonds
Approved Surety has the confidence program needs of prospective mining operators as well as any of our business partner’s affiliates and/or clients.
As part of the lifecycle of a surface or underground mining operation and/or exploration, Reclamation bonds guarantee that the disturbed land will be restored to its original state after the mine is closed or when the exploratory research is completed. The Reclamation bond protects against instances such as well plugging and abandonment.
The Reclamation bond is not released until the mining site has been fully reclaimed and the government has found that the reclamation was successful. Mining and Reclamation Bond requirements based on location are as follows:
It is common practice in Canada for jurisdictions to require the posting of a “Reclamation Security” prior to the commencement of mining activities. The various jurisdictions are at different stages of policy development and analysis with respect to the acceptable forms of Surety.
As of now, reclamations bonds are required in the Yukon, British Columbia and Quebec.
The American Surface Mining Control and Reclamation Act of 1977 (SMCRA or the Act) requires that, as a prerequisite for obtaining a mining permit, a person must post a reclamation bond to ensure that the regulatory authority will have sufficient funds to reclaim the site if the permittee fails to complete the reclamation plan approved in the permit