The essence of the new mechanism is to ensure that subsoil users have the funds to reclaim land and restore ecosystems damaged by mining operations. The idea is based on the ‘polluter pays’ principle: the mining company bears financial responsibility for remedying the consequences of its activities.
The Regulation on Financial Guarantees for Environmental Restoration in Mineral Extraction was published on 30 October this year and comes into force within one month of the date of publication.
Rules for the establishment and use
The amount of the guarantee will be calculated on the basis of a cost estimate drawn up by a certified specialist (a mine or quarry designer). This estimate will be based on an environmental restoration plan or a plan for the management of mining waste.
The guarantee will be updated annually to ensure that, throughout the entire period of operations, the amount is sufficient to cover the costs of environmental restoration on areas already affected and not yet reclaimed, as well as on areas planned to be affected in the following year of extraction.
The operator will be able to choose one of the following forms of guarantee: a bank guarantee from a licensed institution, an insurance policy, or a special accounting account into which the company has set aside funds specifically for future restoration work. Subsoil users will be required to transfer 0.25 per cent of the financial guarantee amount annually to a special treasury account opened by the Environmental Protection Agency, to fund environmental restoration work should the holders of subsoil use permits fail to fulfil their obligations.
This story was translated with the assistance of artificial intelligence.
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