Financial assurance for reclamation and environmental impacts at mine sites is becoming harder and harder to meet. Recent changes in the federal "3809" bonding requirements (43 CFR 3809) has led to the tightening of bonding for new mines, expansions, and closures, leaving operators with little to no options for meeting financial assurance requirements for such activities.  In addition, settlements in enforcement actions against mine operators commonly include requirements for demonstrating financial assurance for future remediation activities.  ARCADIS, and its financial partners, have developed business solutions that offer mine operators alternatives to traditional surety bonds.

Our insurance-based approach is more cost effective than traditional methods, such as bonds or letters of credit, because those methods typically require large collateralization tying up funds that could be better used elsewhere.  Our approach provides for actual closure and reclamation while providing evidence of financial assurance.  At the same time, we can provide protection from unforeseen increases in reclamation costs and future environmental liabilities.

The ARCADIS approach allows the mine operator to shift the reclamation obligation to the ARCADIS team. ARCADIS takes on the responsibility for performing reclamation work ? often under a GRiP? contract or arrangement ? and our financial partners provide the financial assurance for full bond amount.  The integrated GRiP? system and bond replacement program can:

Provide you with financial assurance for your full bond amount

• Protect you from future bond increases
  
• Implement your closure/reclamation program
  
• Meet your environmental obligations
  
• Protect you from cost increases due to unforeseen events or regulatory change
  
• Eliminate your annual and renewal bond costs
  
• Protect you from third-party claims
  
• Provide you with favorable tax and financial benefits

. . . and we can often do it for less than the current bond amount.

Our insurance-based bond replacement approach can also be used in states that have not traditionally used insurance as a financial assurance mechanism. Through our insurance partners, we are able to use other surety products to satisfy the bond requirements while we negotiate with the regulators for acceptance of the bond replacement insurance.