Financial assurance

Under Part VII of the Mining Act, a proponent must provide financial assurance to the Ministry to cover the closure costs identified in the Closure Plan of a site.

The following outlines the forms of financial assurance allowed under the Subsection 145(1) of Part VII of the Mining Act.

Subsection 145(1)

The financial assurance required as part of a closure plan shall be in one of the following forms and shall be in the amount specified in the closure plan filed with the Director or any amendment to it.

1. Cash.
2. A letter of credit from a bank named in Schedule I to the Bank Act (Canada).
3. A bond of a guarantee company approved under the Insurance Act.
4. A mining reclamation trust as defined in the Income Tax Act (Canada).
5. Compliance with a corporate financial test in the prescribed manner.
6. Any other form of security or any other guarantee or protection, including a pledge of assets, a sinking fund or royalties per tonne, that is acceptable to the Director.

For inquiries concerning financial assurance, please contact
Ed Solonyka
Co-ordinator, Financial Assurance
(705) 670-5829
ed.solonyka@ontario.ca