Published on June 27, 2018
Midas Gold Idaho wants to keep the community informed about the work we are doing at the Stibnite Gold Project site. The Ask Midas blog series gives the experts in our company a chance to answer some of the community’s most frequently asked questions and helps clear up any misconceptions around the project.
Midas Gold is committed to restoring the site and leaving the area better than we found it. We know this will take a solid plan and a significant amount of money. We have developed our plan and, as soon as our project is permitted, we will be required to set aside all of the funds for reclamation before mining ever begins. Financial assurance funding, also known as bonding, has changed significantly over the years and on this week’s Ask Midas blog, I want to explain how it works today.
HOW DOES A MINING COMPANY PROVIDE FINANCIAL ASSURANCE TO COVER ITS RECLAMATION EFFORTS?
When miners first came to Stibnite well over 100 years ago, there were no reclamation standards. Miners were only focused on mineral production and weren’t expected to restore the areas they had mined. Today, things are drastically differently.
Reclamation is not only an expectation, but it is a strict requirement of any mining company. There are many federal environmental laws and regulations that cover all aspects of mining, not to mention the additional layer of state regulations. A large part of the permitting process is dedicated to ensuring environmental standards are maintained from the start of mine construction through reclamation and closure.
Today, mining companies are required to set aside all of the financial security needed to reclaim their site before any work can start on their project. This means before we ever lift a shovel to build any facilities for the Stibnite Gold Project, our reclamation efforts must be fully funded through financial assurance. These standards ensure reclamation will move forward, even if the unexpected happens and a mining company has financial issues, or the project ends early.
In the past, mining companies were only required to set aside a flat fee per acre for reclamation. Today, that is not the case. Mining companies, in partnership with regulators, must evaluate the specific project site, figure out the actual cost of reclamation and set aside whatever that cost may be. Reclamation costs are often determined by using the Standardized Reclamation Cost Estimator (SRCE). This tool was developed in Nevada through a collaborative effort by the Nevada Division of Environmental Protection, Bureau of Mining Regulation and Reclamation, the U.S. Department of Interior, Bureau of Land Management, Nevada State Office and Field Offices and the Nevada Mining Association.
SRCE ensures accuracy, completeness and consistency in the calculation of reclamation and closure costs. This tool has become the standard in the industry and is widely accepted by agencies and the public to calculate financial assurance requirements for mining projects.
Midas Gold is committed to following all of the modern regulations, reclamation practices and financial assurance calculations so we can restore the site.
If you have a question you would like us to answer, please email it to [email protected].
