How A Financier Can Handle The Mine Environmental Rehabilitation Costs: The Case Of The Ranger Uranium Mine, Australia

In maybe the world's first in a mine project financing, a US $55 million Rehabilitation Indemnity was given on behalf of the banks in a US $250 million loan to develop the Ranger uranium mine, Northern Territory, Australia. The basis of the financing was an estimate of removal of the tailings and replacement into the pit. The Indemnity was amortized by a sinking fund from the mine's revenues. Such a concept could be valuable for mineral developments in sensitive areas or jurisdictions such as British Columbia or Alaska.