Abandoned mines are payed for by taxpayers
Canada is, and has always been, a mining intense country. However, mines that were profitable once may not be profitable anymore due to declining metal concentrations and increasing requirements on preventive measures to protect the environment and human health.
In an article published in the Economist on the 27th of September 2014, it is claimed that there is an estimated 10,000 orphaned or abandoned mines in Canada’s north that are now the government’s responsibility. The cost of decontaminating and restoring those mining sites, which will be borne by the tax payers’, will be significant.
This unfortunate situation could have been avoided if the Canadian Government would have required that mining companies set up financial guarantees to cover such costs. Fortunately, Governments around the world are beginning to see the need for stricter legislation so that these situations can be avoided in the future, but so far there is much more to be done.
Regardless of the legislative situation, serious companies with future environmental risks should aim to minimize those risks. European Insurance Solution PCC Ltd. provides the financial vehicle needed to do so by allowing companies or groups of companies to set up financial guarantees at a reasonable cost. Contact us and we’ll tell you more.