Skip to main content
Basic Formal

Mine Reclamation Bond

noun

Pronunciation: /maɪn ˌrɛkləˈmeɪʃən bɑnd/

A financial guarantee required by regulatory agencies to ensure adequate funds are available for completion of site remediation and reclamation activities. Bonds secure performance of required restoration work if the operator defaults or becomes insolvent.

Plain English

Money set aside to guarantee that mine cleanup work gets completed.

Etymology & History

Origin languageEnglish
Rootmine (from Old French mine) + reclamation (from Latin reclamare) + bond (from Old Norse band)
First recorded use1978
Usage frequencyCommon

Usage

"The operator posted a mine reclamation bond to guarantee completion of site restoration within five years."

Style guide notes: Specify bond type and regulatory context when discussing financial assurance mechanisms.

Also known as

reclamation bond performance bond financial assurance

Contrasted with

unsecured obligation unfunded liability

Related Terms

Frequently Asked Questions

What is the purpose of a mine reclamation bond?

Bonds ensure regulatory agencies have funds to complete reclamation if operators fail to do so.

How is bond amount determined?

Regulatory agencies calculate costs for full site reclamation, including remediation, capping, and monitoring activities.

Why Test Candidates on This?

Important for understanding legal and financial frameworks governing mine reclamation project implementation.

Required skill level: Senior

Editors from these organisations have used our services since 1998

Reuters BBC Oxford University Press Penguin Random House Springer Microsoft Suncor Energy United Nations Fisher Investments IBM The Home Depot KODAK CHEVRON