Remediation of Abandoned Mine Lands

Thursday, October 2, 2008 : 4:40 p.m.

Mine Reclamation - Navigating the Financial Assurance Requirements

Cliff Yeckes, PG, Willis

Most mining companies must provide adequate financial assurance (FA) for mine reclamation and closure to obtain operating permits for mine development and expansion.  Financial assurance is required by government agencies to ensure that money is available to complete the reclamation, regardless of the long term stability and financial viability of the owner or operator.  Federal and State agencies responsible for approving the permits often have differing or vague regulations related to acceptable forms of FA.  The regulations are difficult to change and can be onerous for many operators because of collateralization requirements of institutions guaranteeing the FA options.  In some cases collateralization can be 100% of the estimated future reclamation costs, effectively eliminating the ability of many owner operators to secure permits.   Additionally, because of the constantly changing appetites of financial institutions, sureties and insurance underwriters to accept mining risks, regulators are often unaware of the types of FA options available in the marketplace, or how they have changed.  As a result, regulatory agencies can inadvertently neglect or ignore other forms of FA which could offer viable alternatives for the owner operators and also provide the guarantees necessary to protect the public and prevent “unnecessary or undue degradation” of public lands and resources. 

This presentation offers a discussion of FA related to mine reclamation within the framework of today’s marketplace.  The intent of the discussion will be to provide a pragmatic understanding of the realities of obtaining FA for mine reclamation and suggest approaches which might eliminate some of the common pitfalls.  The presentation will address the regulatory landscape, available FA types and providers; what can be expected from underwriters and how to educate and manage expectations of involved parties.  Finally, a case study will be presented.      

Cliff Yeckes, PG, Willis Cliff Yeckes is a SVP with the Willis Environmental Practice. He has 24 years of experience as an executive manager and technical professional in the insurance, mining, consulting environmental / engineering, and energy industries. Cliff assists mining companies in developing solutions for their reclamation liability and financial assurance obligations. He assists companies in the development and implementation of approaches for managing or transferring their environmental risks. Cliff holds an MBA from the University of Utah and a BSc in Geosciences from the University of Arizona. He is a RPG in Florida, Utah and Tennessee, and a CEM in Nevada.


Remediation of Abandoned Mine Lands