Rock Hosted Mine Liability Process

The AER has developed the rock-hosted mine liability process (RMLP) to achieve a balance between protecting Albertans from liabilities and rehabilitation (decommissioning, remediation, abandonment, and reclamation) costs associated with rock-hosted mineral mine operations and maximizing industry opportunities for responsible resource development. The RMLP is one of many liability management programs ensuring Alberta’s energy resources are developed responsibly.

The process enables

• managing rock-hosted mineral mine liabilities by collecting financial security from mine approval holders and
• protecting Albertans from mine approval holders defaulting on their rehabilitation liabilities.

Determining Liability and the Security Deposit

Approval holders must submit a security deposit equal to the full cost of rehabilitation in the event of a default on their rehabilitation obligations. RMLP requirements ensure that calculated liability includes removing all infrastructure from the landscape and rehabilitating all disturbed land to an equivalent land capability at the end of the mining project. This objective is accomplished by implementing the mine liability estimation tool (MLE tool), which calculates the company’s financial security deposit based on the estimated liabilities for the upcoming year’s disturbance.

Types of Security

During the application process, the approval holder submits financial security that aligns with the corresponding predefined base security deposit. This initial security amount is submitted before the disposition is issued. The security amount is updated annually based on estimated liability, ensuring companies pay the full financial security throughout the mining project.

Base Security Deposit (BSD)

There are four types of BSD, each with a corresponding security deposit amount for the various mine-site components and effects associated with the first year’s development (i.e., disturbance).

• BSD type 1, quarry: $317 000
• BSD type 2, surface mine: $8 384 000
• BSD type 3, underground mine: $4 824 000
• BSD type 4, mineral processing plant: $5 504 000

Annual Security

Approval holders calculate their annual security using the MLE tool and submit their annual MLE report to the AER by June 30 each year. This submission may result in a requirement for additional security, a return of a portion of the security, or the security remaining as is.

Where to Send RMLP Submissions

Send RMLP annual submissions (the MLE report) and supporting documentation to RMLPSubmissions@aer.ca.