Reclamation securities
Last updated on December 4, 2023As a condition of their Mines Act permit, the permittee must provide financial security in an amount and in a form acceptable to the Chief Permitting Officer. Securities are held until the Chief Inspector is satisfied that all reclamation requirements for the operation have been fulfilled.
Since every mine site has unique management requirements and operational constraints, the assessment of financial security is performed on a site-specific basis. The security is set at a level that reflects outstanding reclamation, environmental and closure obligations associated with the site. The amount of security may be increased or decreased at the discretion of the Chief Permitting Officer based on the mine’s actual reclamation liability at any point in time. Progressive reclamation during a mine's operation serves to decrease the mine’s reclamation liability, while new site disturbance may increase reclamation liability.
Securities can only be released under the authority of the Chief Inspector of Mines.
Forms of reclamation security
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).
For more information on the Interim Reclamation Security Policy (PDF, 323KB) , please read the Information Bulletin (PDF, 480KB) released April 5, 2022.
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: