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The International Council on Metals and the Environment (ICME)

ICME: Use of Financial Surety for Environmental Purposes

The International Council on Metals and the Environment (ICME) commissioned this study on environmental financial surety (EFS) primarily to aid governments in developing and administering effective and practical EFS policies. The study is also intended to reveal the range and extent of actual policies and practices, and to discuss the issues that arise in the use of EFS. In addition, the findings should help companies to prepare for their discussions with governments on the application of such policies. The study may also be of interest to other persons who are concerned with the issues of mining and the environment.

The author, Dr.C.George Miller, has an extensive background in mining and related policy. His distinguished career includes several years in academia, notably as Director of the Center for Resource Studies at Queen's University, Canada. Dr.Miller has specialized for over 20 years in mining and environmental issues, having served as Assistant Deputy Minister, Mineral Policy for the Government of Canada and as President of the Mining Association of Canada. He is currently a Director of the Industry Government Relations Group in Ottawa.

The entire text of this publication can be downloaded from the links below.

• Contents, Foreword, Preface
• Executive Summary
• Introduction
  • Background
  • Structure of the report
  • A note on terminology
• Survey of Current Practice
  • Industry views on environmental financial surety questions
• Issues in the Use of Financial Surety
  • Required standard of rehabilitation
  • Required standard of certainty
  • One-time rehabilitation vs. long-term care
  • The need for and extent of financial surety
  • The growing use of financial surety instruments
  • The choice of financial surety instrument
  • The timing of a requirement for financial surety Small companies vs. large companies
  • Application to existing operations: transition provisions
  • Government supervision and oversight
  • Taxation arrangements
  • Extinguishment of liability: the exit ticket
  • Alternatives to financial security
• Optimizing Financial Surety Policies
  • Efficient policies defined
• Conclusions and a Look to the Future
  • Amount of Capital sequestered is significant
  • The concept of efficiency for environmental financial surety
  • Are financial surety mechanism necessary?
  • EFS practices differ widely: a case for consistency
  • Wide variety of EFS in use: clarification is needed
  • Framework policies are as important as specific sureties
  • Alternatives and supplements should be pursued
• Appendix : Explanation of Selected Surety Instruments
  • Irrevocable letter of credit
  • Performance bond
  • Cash trust fund
  • Insurance options
  • Balance sheet test
• Tables
  • Table 1: Case studies of environmental financial sureties (EFS)
  • Table 2 : Guidelines for framework policies
  • Table 3 : Guidelines for specific negotiations
  • Table 4 : Criteria for the efficient design of a fund
  • Table 5 : Guidelines for the review and audit of a fund

ICME: Changing Values, Changing Corporate Cultures: The Way Forward

This document provides an overview of how ICME members are adapting to the changing political, economic and social circumstances in which they operate, and particularly to the recent international trends that are reshaping societal values. Changing Values may serve as a giding framework for all segments of the global metals and mining industry by illustrating some of the steps that can be taken to improve environmental performance while contributing significantly to the economic and social development of local communities. This document is a work in progress and is expected to evolve in step with industry changes

The entire text of this publication can be downloaded from the links below.

• Contents, Foreword, Introduction
• New Directions
• Changing Values
  • Public Expectations
  • The social Dimension
  • Corporate Cultures
• Changing Behaviour&Conclusion
  • Corporate Behaviour
  • The Partnership Approach
  • The Regulatory Environment
  • Environmental Policy
  • Environmental Manangement Systems
  • Product Stewardship
  • Recycling

ICME : Environmental Charter

• Product Stewardship Principles
• Environmental Stewardship Principles
• Community Responsibility Principles

University of Nevada, Reno
Last updated: 12/19/07