Bonding and Reclamation

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.

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