Authors: Bocking, KA; Lewis, K

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DOI https://doi.org/10.36487/ACG_rep/1915_126_Bocking

Cite As:
Bocking, KA & Lewis, K 2019, 'Progressive release of security to incentivise and fund closure', in AB Fourie & M Tibbett (eds), Proceedings of the 13th International Conference on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 1607-1614, https://doi.org/10.36487/ACG_rep/1915_126_Bocking

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Abstract:
Most active mines in Canada now have closure plans in place and have posted some form of financial security with the government. At the same time, the number of inactive mines that have fully implemented final closure (as opposed to staying in ‘care and maintenance’) is relatively small. In some cases, this hesitancy to complete closure is related to uncertainty as to how and when the security will be returned to the mining company. This paper describes a case history where cooperation between government, regulators, and a mining company resulted in agreement to progressively release the financial security in stages in response to closure work that had been competed during operations, interim care and maintenance, and final closure stages. This provided an incentive to proceed with the completion of the final closure measures and it also provided a flow of cash (or credit release) to fund final closure of a long inactive property. It is suggested that progressive release of closure financial security could mobilise large amounts of capital to implement final closure on numerous long inactive mine sites.

Keywords: mine closure, reclamation, mine closure regulations, financial security, Nunavut

References:
Government of Canada 2002, Nunavut Waters and Nunavut Surface Rights Tribunal Act, S.C. 2002, c. 10,
Government of Canada 2013, Nunavut Planning and Project Assessment Act, S.C. 2013, c. 14, s. 2,
Government of Canada 2013, Nunavut Water Regulations, SOR/2013-69,
Holubec Consulting Inc. 2005, Lupin Operation – Closure Plan for Tailings Containment Area, January 2005.
Indian and Northern Affairs Canada 2002, Mine site reclamation policy for Nunavut, Catalogue No. R2-208/2002-iE, Ottawa, Canada.
Indigenous and Northern Affairs Canada 2017, MVLWB / INAC / GNWT Guidelines for Closure and Reclamation Cost Estimates
for Mines, November 2017.
Kinross Gold Corporation 2006, Supplement to Lupin Tailings Containment Area, 2005 Abandonment and Restoration, March 2006.
Kusugak, M 2019, ‘Our land, our strength. Reflecting on 20 years of Canada’s newest territory, Nunavut’, Canadian Geographic, vol. 139, no. 2, March 2019.
Nunavut Water Board 2018, Licence No. 2AM-LUP1520 – Nunavut Water Board (NWB) Decision Regarding Request of Lupin Mines Incorporated (LMI) to Amend the Amount of Security Held under Part C, Item 1 of the Licence and further NWB Guidance regarding the Approval of the Interim Abandonment and Restoration Plan and Closure Cost Estimate under the Licence, Part C, Item 4 and Part I, Item 2.
Ontario Ministry of Energy Northern Development and Mines 2019, Finance Assurance Table,




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