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Part B: Mineral Rights - Part B-3: Large Scale Exploitation - 26. Large Scale Exploitation Licensing | 26.16 Closure (plan, certificate etc.) and Reclamation

Mine closure and site reclamation or rehabilitation may be a distinct phase of a large scale exploitation project at the end of commercial production of a copper or gold mine, for example, or it may be an ongoing process in the case of exploitation of minerals sands, phosphates and other minerals that are mined progressively across a horizontal plane, with site fill and rehabilitation being performed on the previously mined area as each new area is mined. In either case, site closure and rehabilitation is considered an essential phase or component of the exploitation project for which the licence holder is required to plan and make financial arrangements.

Site rehabilitation plans are generally required as part of the environmental and social impact study and mitigation planning process under modern mining laws or the related environmental laws, which also generally require the licence holder to establish a security in the form of a bond, bank guarantee, insurance policy or funded escrow account to provide adequate funding for the completion of site closure and rehabilitation at the conclusion of production activity. The surety must be available to the Government to pay for site restoration in the event that the licence holder fails to meet its obligations. These obligations are covered as part of the environmental topics in Part D of the Guiding Template.