PROJECTS

Financial assurance

Part of the Huntly mine in 1980Environmental financial assurance provides a level of certainty to governments and communities that the resources to meet closure requirements will be available. However, there is a need to ensure that it is applied in a way that is efficient, fair, consistent and transparent.

Currently a wide range of practices has been adopted by governments internationally - in certain circumstances insufficient funds are being set aside and in others funds are excessive.

The mining and metals industry has an interest in defining and putting in place the best financial assurance tools possible. ICMM considers that, if properly applied, financial assurance can be an effective tool in ensuring that closure goals will be achieved.

What is ICMM doing?

A guidance paper on Financial Assurance for Mine Closure and Reclamation was published in March 2006. The paper provides general recommendations for actions by both operators and governments and is aimed at improving standards of practice.

This guidance paper is largely based on a report published in February 2005 which examines financial assurance policies and practices in key mining jurisdictions and outlines issues from the perspectives of mine operators, governments and financial institutions. A supporting study on financial assurance for metals was also carried out.

Our work

Our work has been to address the issues related to financial assurance policies. The need for financial assurance is clear, but choosing the right approach needs careful consideration. Policies that meet environmental objectives can and should also be compatible with a healthy investment climate and be financially efficient. We hope our work will help both the industry and governments achieve that.

 

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PROJECT DETAILS

Environmental financial assurance provides a level of certainty to governments and communities that the resources to meet mine closure requirements will be available.

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RELATED PUBLICATIONS

Good Practice Guidance for Mining and Biodiversity
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SUSTAINABLE DEVELOPMENT FRAMEWORK
Principle 07:

Contribute to conservation of biodiversity and integrated approaches to land use planning

Principle 06:

Seek continual improvement of our environmental performance

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