MINING REHABILITATION BONDS
Assetinsure issues Mining Rehabilitation bonds to respective State Governments on behalf of mining companies.
Using a bank? Why? Assetinsure has a smarter, more capital-efficient solution. Want to hear more?
Legislation is moving towards requiring a greater level of financial assurance, which means individual mining companies need increased reserves and capital. In most instances, this is a potentially onerous financial commitment and may adversely affect the economic feasibility of the project.
To help companies comply with individual state legislation in a manner that mitigates the risk of early closure whilst at the same time allowing the company to optimise its cash management and capital strategy, Assetinsure has developed an innovative and flexible mining rehabilitation product that:
- Complies with current state legislation
- Provides the mining company with financial flexibility with less onerous security requirements than those required by banks
- Enables the mine to potentially access surplus free cash or cash previously tied up by banks or state governments in order to facilitate growth and investment.
- Significant capacities backed by the highly rated Swiss Reinsurance
We are backed by Swiss Re International SE (rated AA- Stable Outlook by Standard and Poor’s and regulated by APRA).
- Established track record in providing bonds
Assetinsure is a specialist in the Performance bonding market with industry-leading expertise and a strong track record in offering insurance-based corporate finance solutions to the private and public sector.
- Ability to understand and cater for the differing requirements
Our technical focus on underwriting gives us a competitive advantage in recognising good risks and opportunities, whilst our product flexibility enables us to tailor commercial solutions to suit individual clients from mid-market to major blue-chip mining companies. We also understand the different State regulatory requirements.
- Skilled team
As a market leader in providing Performance bonds, Assetinsure is backed by a highly skilled team of underwriters with specialist geology, mining, legal and corporate finance expertise.
- Flexible structures
Assetinsure will always follow sound risk management principles with regards to the structure of the securities, but we are flexible when it comes to the form and quantum of the collateral security that we take. The overall result creates funding flexibility by not having to use existing banking lines for bonding purposes.
Assetinsure is the market-leading bonding provider in Australia and New Zealand and is an agent for Swiss Re which has an S&P rating of AA- and is APRA approved. Our flexible solutions are expertly tailored to suit most mining rehabilitation bond requirements and we use skilled mining and geology professionals to underwrite the quality of the resource asset as well as to prepare the financial metrics of a prospective client.
The combination of our skilled and knowledgeable underwriters, extensive Surety industry experience and thorough yet innovative approach puts us in a strong position to understand the risk of miners and offer a viable commercial solution to mining firms which have sound resource assets.
Our approach has particular relevance to the current resource market, which is facing a number of challenges:
- Volatile commodity prices due to a range of factors including supply/demand issues, geopolitical uncertainty and climate regulation
- Increasing difficulty in securing sources of capital, with banks in particular facing increased nervousness around certain commodities as well as the commodity cycle
- Heightened political intervention and regulatory pressure on the levels of financial risk of resource companies
- Each State in Australia is placing increased focus on the total rehabilitation liability associated with individual mines
If you would like to learn more about our mining rehabilitation bonds or explore possibilities to secure your company’s mining rehabilitation requirements and commitments, please contact:
Head of Surety
T +61 2 8274 2836
M +61 404 333 789