Legislation now stipulates that all mining operations within South Africa are required to make provision for environmental rehabilitation during the life of the mine and at closure. Traditionally most mines used a prescribed Trust, which is funded over the life expectancy of the mine. However, this does not make funds immediately available for the interim closure costs, which are now required by law.
Guardrisk provides mines with the required guarantee - which is accepted by the Department of Minerals and Energy - at inception of the policy. Premium payments are comparable with the payments that would be made to a Trust. If correctly structured the product will allow the matching of the environmental rehabilitation liability against company assets over a period of time.
- Multiyear insurance programme.
- Guarantee with full capacity provided immediately at inception.
- Complies with all Department of Minerals and Energy requirements.
- Annual committed premiums (similar in value to those of the Trust).
- No risk of permanent over-funding.
- Building of insurance reserves for future rehabilitation.
Medium to large mining houses with mine lives in excess of 10 years.