Reclamation bonds are a particular type of performance bond, often required by state or federal agencies before instigating any mining or related operations at a specific site. This type of surety acts as an assurance that reclamation of a mining site will be completed, even if the contractor fails to complete the reclamation plan that had been approved in the related permit. The bond guarantees that the land surrounding the mining site will be returned to its original condition—or at least to a state that is deemed acceptable by both the operator and the government agency to which it is bound.
Amounts are not standard and must take into consideration several factors, including the amount of impact the project might have on the land and what type of mining or building operation is taking place. Having this surety in place may help to reassure investors that the contractor will follow ecological guidelines to restore the land after the project is completed.
Factors that may influence costs:
- Groundwater restoration
- Equipment removal
- Building demolition
- Disposal of building materials and certain equipment
- Soil replacement and revegetation/reforestation
Reclamation Bond Needs Beyond Mining Projects
Not solely limited to mining operations, this type of surety may be required for any construction project when it is determined that the land at or around the site may not recover on its own. Examples of non-mining related sites that may require these include:
- Waste recycling plants
- Waste water disposal plants
- Plant sites
- Oil production sites
- Wells, pipelines and batteries for upstream oil production activities
If you have any questions about reclamation bonds or need to obtain one for your project, the contractor’s insurance specialists at Contractor Surety Group are standing by to help. With more than fifty years of combined experience, our surety bond company is the nation’s number one source for all your surety and construction insurance needs.
Get started with Contractor Surety Group today, and let’s get you building.