Rest Assured? A Critical Assessment of Ontario’s Mine Closure Financial Assurance Scheme

Abstract

This article seeks to examine the general role of financial assurance schemes designed to protect governments from being forced to incur costs related to the closure and clean-up of mining operations. Specifically, it focuses on the decision of the Ontario provincial government in 2000 to allow certain companies to be exempt from financial assurance requirements provided that certain corporate financial tests could be met. The benefits and potential risks of this decision, taking into account the current Canadian bankruptcy and insolvency regime, are closely examined. The experience of other jurisdictions that have allowed, or at least considered, similar regimes is examined where relevant.

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Notes on contributors

Matthew Hawkins

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Matthew Hawkins BA (Hons), LLB (University of Western Ontario, 2008). The author is currently an articling student with Davies Ward Phillips & Vineberg LLP in Toronto, Ontario. He can be contacted by e-mail at [email protected].