Reclamation securities for major mines
Last updated on August 12, 2024To safeguard the environment, public safety, and taxpayer dollars, mines in B.C. are required to post reclamation security with the province. Reclamation security covers the cost of reclaiming a site if a mining company defaults on their obligation to do so or becomes unable to pay their debts.
The purpose and conditions of reclamation security are as follows:
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Mine permittees post reclamation security to the province
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Security is a condition of a Mines Act permit
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Amount of security and form of security is determined by the chief permitting officer
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The Province holds security until the mine site fulfills all reclamation requirements
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The chief inspector of mines authorizes the release of securities
Every mine site has unique management requirements and operational constraints. Because of this, the chief determines financial security on a site-specific basis.
Security is set at a level that reflects the:
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Outstanding reclamation liability
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Environmental and closure obligations
The chief permitting officer may increase or decrease the amount of security based on the mine’s current reclamation liability.
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Progressive reclamation during a mine's operation may decrease the mine’s reclamation liability
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New site disturbance may increase reclamation liability
Forms of reclamation security
Forms of security acceptable by the chief permitting officer.
For security less than $25,000.
GICs must be held under a Safekeeping Agreement where the investment interest accrues to the mine operator on the investment amount. The principal is pledged to the Province.
Security provided by way of certified cheque, bank draft, money order or electronic funds transfer (EFT) does not accrue interest.
Cheques payable to "Minister of Finance".
For EFT contact: Reclamation.Security@gov.bc.ca
An ISLOC is issued by a financial institution on behalf of a mine operator and guarantees payment of a specified amount should the mine operator be in default of its obligations.
For reclamation surety bonds, the bond shall be with a surety licensed to transact the business of a surety in Canada. The form below outlines the only type of surety bond acceptable.
Reclamation liability estimates for major mines in B.C.
A summary of the reclamation liability estimated by major mines in their annual reclamation reports, current reclamation securities held by the Ministry of Energy, Mines and Low Carbon Innovation (EMLI) for these operations, and the calculated differential can be found in the Annual Report of the Chief Inspector of Mines (beginning with the 2015 annual report).
Major mines reclamation security policy (interim)
The Reclamation Security Policy (interim) (PDF, 323KB) identifies:
- Clear accounting of estimated reclamation costs for major mines
- A framework for determining the amount and form of reclamation security
The Reclamation Liability Cost Estimate (RLCE) guidance document (PDF, 331.4KB) supports this policy by providing detailed instructions.
The RLCE guidance document:
- Details what information and format to provide these estimates
- Aligns with the Joint Application Information Requirements (JAIR) guidance document
- Increases transparency and improves the quality and consistency of RCLEs
Submit RLCEs for:
- Mines Act permit application/amendments for major mine projects
- 5-Year mine plan and reclamation program updates
- Annual Reclamation report (ARR) submissions
Reclamation security policy review
Following the May 2016 release of the Auditor General’s report on compliance and enforcement of the mining sector, the Province committed to reviewing its reclamation security policy which resulted in the following reports:
- Policy and Process Review for Mine Reclamation Security - September 30, 2016 (PDF, 724KB)
- Report & Recommendations for BC's Mine Reclamation Security Policy, February 2017 (PDF, 1.2MB)