Bonding and Reclamation

A reclamation bond is a cache of money that mining companies are required to post before mining.  It is meant to serve as a form of insurance to protect the public against the cost of mine cleanup if a company declares bankruptcy or refuses to complete reclamation according to its permit.  Reclamation bonds for major mines are generally provided through a surety company.  Similar to health or car insurance, the mining company pays a premium to the surety company, which  in turn provides a financial guarantee to the agency for the bond amount.

Useful Information

• Hardrock Reclamation Bonding Practices in the Western United States by James R. Kuipers (Center for Science in Public Participation) for the National Wildlife Federation (2000)
  
• Executive summary of Hardrock Reclamation Bonding Practices in the Western United States by James R. Kuipers (Center for Science in Public Participation) and Cathy Carlson (National Wildlife Federation) for the National Wildlife Federation (2002)
• Alaska Reclamation Bonding – 2005 by David Chambers (Center for Science in Public Participation)
• Training Guide for Reclamation Bond Estimation and Administration For Mineral Plans of Operation authorized and administered under 36 CFR 228A (US Forest Service, 2004)

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