“While industry has always been required by law to reclaim disturbed land, we recognize it is essential government strongly incent and, if necessary, compel this action,” Minister of Environment Rob Renner said.
“We need to provide clarity around existing reclamation efforts and the certification process, as well as restructure our reclamation security policy to ensure Albertans never have to foot the bill to clean up affected lands.”
Currently, mine operators of all types annually post a financial security for reclamation based on their estimation of land disturbance for the following year. Once the land is reclaimed after mining, that security is returned.
New mine financial security program outlines apply an asset-to-liability approach which looks at resource value – be it coal or bitumen – as a cashflow asset.
“For new mines, a base security will be collected early in the mine’s life, when the risk of mine closure or abandonment is at a minimum,” government officials said.
“Full financial security will be collected later in the mine’s life, but before assets are completely reduced. For mines already operating, existing security held by the province will be held as base security.”
Renner said that, over the long term, the total amount collected for security would be significantly higher than in the past.
The provincial government is also enhancing reporting by increasing the number of required milestones for reclamation tracking. Whereas three reporting milestones were previously used – disturbed, reclaimed and certified – eight will now be used since reclamation often occurs over long periods of time and goes through many stages.
“This will result in greater transparency and consistency of reporting,” Renner noted.
Finally, Alberta is updating its reclamation certificate program, which includes modifications that will provide industry with greater clarity on the application process and on the expectations the province has for reclamation performance, objectives and outcomes. That effort began last year and should be completed next year.
