Who pays for reclamation?

In accordance with the Mining Act, from 1992 onwards, the mining company is obliged to create a financial provision for rehabilitation and reclamation projects and mining damages. These funds are created and spent in individual years subject to an approval of the District Mining Authority in a decision following an inspection and a standpoint of the Czech Ministry of the Environment concerning the Rehabilitation and Reclamation Plan Performance and the standpoints of municipalities and communities concerned.

As mine plans are prepared and approved, they always include the reclamation cost as their integral part.


Under Section 23a, par. 2 of Act No. 44/1988 Coll. (Mining Act), the mining company transfers funds to a bank account of the respective mining authority to cover levies for exploited listed minerals. A corresponding share of these funds is then transferred by the mining authority to municipalities and communities in the mining license area (originally 50 %, now 75 %) and a corresponding share to the state budget (originally 50% now 25%). These funds in the government budget are then released based on a relevant decree of the Czech Government following to a request of the mining company for selected rehabilitation and reclaiming projects as an environmental subsidy. Thus, these are funds of mining companies which are redistributed by the state.


Between 1995 and 2001, OKD asked the Czech Ministry of Trade and Industries for the so-called environmental subsidy to cover rehabilitation and reclamation projects.


In 2003 and later in 2004, five selected rehabilitation and reclamation projects were started under the “Revitalization of the Moravian-Silesian Region” in connection to Project No. 44 – Rehabilitation of old liabilities.


As the territory treated in these rehabilitation/reclamation projects was influenced by mining activities before 1992, the cost of their reclamation is covered by the Czech Ministry of Finance from privatization revenues. Project suppliers are selected in tenders (public tenders). OKD has prepared more rehabilitation/reclamation projects to be executed under the “Revitalization of the Moravian-Silesian Region” framework and to be paid either in full or partially from the privatization revenues for the period starting in 2006.


Reclamation Brochure

Reclamation Brochure [PDF]