Without mining, modern society as we know it would not exist. Mining and material processing activities must however be properly designed, managed and controlled in order to avoid detrimental impacts on the environment since large amounts of energy is consumed and land must be altered when minerals are being excavated, crushed and removed. Emissions of greenhouse gases, nitrous and sulphur oxides, dust, heavy metals and other contaminants to air, soil and water can be minimized by choosing renewable energy sources and installing proper environmental protection systems.
In order for an ecosystem to fully recover after a mine closure, facilities and infrastructure have to be removed and soil, vegetation and surface water restored to the baseline environmental conditions measured and described at the beginning of mine development processes. Restoration and decontamination of land and water is often very costly and should be recorded as a debt in the mining company’s books prior to the start of a mine. However, to ensure that the costs for mine reclamation will not be borne by society, mining companies must provide a financial guarantee to secure that sufficient capital exists in the event of insolvency or bankruptcy. Therefore, mining nations such as the US, Australia, Canada, India, Japan, Indonesia, South Africa and Sweden already have financial assurance provisions in place, and there is undoubtedly an upwards trend among other jurisdictions to follow their lead (ICMM, 2005).
EIS PCC Ltd. can help mining companies to set up appropriate financial guarantees to cover the costs of future decontamination and rehabilitation of mining sites. Each company is set up as a protected cell within the PCC structure, allowing EIS to provide low-risk cost-effective solutions tailored to each company’s needs. Some of the advantages of EIS’ financial guarantees for the mining industry are listed below:
- EIS PCC Ltd. provides the most cost-effective and low-risk alternative on the market
- EIS PCC Ltd. can help mining companies foresee otherwise “unexpected” costs and reduces the economic risk related to future decontamination and rehabilitation of mining sites
- The financial guarantee provided by EIS PCC Ltd. ensures that money is kept for future decontamination and rehabilitation costs, even in the event of a mine bankruptcy. This ensures that society will not have to bear the costs which helps to gain public acceptance, improve corporate reputation and boost competitiveness
- The insurance provided by EIS PCC Ltd. is tied to the mine, giving it additional market value
- The financial guarantee provided by EIS PCC Ltd. facilitates the tender and licensing process
If your company is in need of a financial guarantee, other insurance solution or just curious about the services that we offer – do not hesitate to contact us.