Bridgend Capital Advisory brought together key industry stakeholders involved in mine rehabilitation financial assurance to provide an update on developments impacting financial assurance arrangements for mining activities in Queensland, including proposed changes to the State’s Financial Provisioning Scheme, and the latest assurance considerations, structures, and terms from banks and surety providers, against a background of evolving ESG policies.
Bridgend Capital Advisory’s latest quarterly CFO breakfast forum was held at Brisbane’s Tattersall’s Club on 29 November 2023, once again bringing together representatives from across the resources industry. The event featured keynote presentations from Queensland’s Financial Provisioning Scheme Manager Tim Michael and Director Peter Fox, Liberty Specialty Markets senior underwriter Alicia Barnes, and Bridgend’s own Nick Rees.
Recently appointed Scheme Manager Michael and Fox presented key outcomes from the 2022-23 Financial Provisioning Scheme Annual Report and key recommendations from the Post Transition Review of the Scheme including proposed amendments working through parliamentary approvals.
Barnes provided attendees an overview of Liberty Specialty Markets, the role surety bonds play in provision of financial assurance for mine rehabilitation, and the way surety providers assess and structure surety bond solutions in particular contrast to bank guarantees.
Rees gave an overview of developments in the bank guarantee market for rehabilitation bonding, noting the impact of the accelerating de-carbonisation of Australia’s banking system relative to Australia’s underlying resource production base and financial assurance needs, and the latest views, structures, and terms provided from banks when assessing bank guarantee facilities.
“Bridgend is responding to a clear need of finance executives within the natural resources industry in Brisbane to meet together and share relevant insights and developments in what is an increasingly challenging financing environment” explained Chris Williams, Co-Founder of Bridgend. “We have a very engaging program mapped out for 2024 in this regard and look forward to continuing to host these engaging quarterly sessions.”
(Photos courtesy of N. Rees and C. Williams. Used with permission.)