Abandoned Mining Sites in British Columbia: Managing Environmental Liabilities

Mining is a core industry in British Columbia’s economy. However, the economic benefits of mining exploration, development, and production, have corresponding environmental risks and liabilities. To protect against the risk of public assumption of environmental liabilities, the Government of British Columbia collects financial securities for mine reclamation from proponents of mining operations. A gap between the amount of held financial securities and total estimated reclamation liability has characterized this policy for decades. This gives rise to disproportionate public exposure to mine reclamation liabilities. This study examines several policy approaches to reforming the approach to financial assurance. I examine four other jurisdictions, conduct interviews, and analyze quantitative data. The result is the articulation of three policy options, the advantages and disadvantages of which are presented. One option is recommended to provincial decision-makers as the best approach to reforming mine reclamation and financial assurance policy.