Mine Reclamation Funds
A Mechanism for Environmental Protection : Discussion PaperMicroform - 1991
In B.C., the satisfactory reclamation of mine sites has been an integral part of mine planning, permitting and monitoring since 1969. However, the standard forms of reclamation security, such as bonds and irrevocable letters of credit, are not practical in situations where there is significant ongoing cost and where the company responsible does not, once the mine has closed, have sufficient other assets or income to fund the work. It is for these situations that the 1990 Mines Act provided for a mine reclamation fund. This technical paper sets out a proposal for the administration of such funds, describing the objectives, the fund structure and the fund size determination through asset mix, forecasts of future discount rates, probability distribution of future costs, calculations of the initial MCV, simulation of fund performance and results, and examples of two cost scenarios.
Publisher: Victoria : Ministry of Energy, Mines and Petroleum Resources, 1991
Description: 31 p
Branch Call Number: MF BC-DOC 91-03023