Africa Corporate Journalism South Africa

Paying for SOUTH AFRICA’s Mining closures and Rehabilitation

Cullinan Mine seen in the distance, famous for the Cullinan Diamond the largest rough gem-quality diamond ever found, at 3106.75 carats.

Press Release

QUATRE LTD PROVIDES NEW FUNDING SOLUTION FOR SOUTH AFRICA’s MINING PROBLEMS

London, February 10, 2017: London-based financial services company Quatre Ltd, has produced a new solution designed to fund the decommissioning of oil and gas fields and rehabilitation of other extractive industrial locations including mines. Quatre Ltd was originally set up to meet the needs of the oil and gas industry operating in the Gulf of Mexico and the North Sea. “The flexibility of the Quatre model means that it can just as easily be applied to decommissioning of oil and gas E&P operations and other extractive industries including mines in South Africa, “says Paul Jardine, MD Quatre Ltd.

South Africa’s mining companies and government face the prospect of rehabilitating some 6,150 abandoned mines at a rate of 12 mines a year at an estimated total cost of  R 56.44 billion. [i] Despite legislation to encourage mining groups to provide financial guarantees to fund mine closure and rehabilitation, many industry experts suggest that the money put aside will be insufficient, leaving the South African government to foot the bill. In addition, the Department of Mineral Resources remains liable for at least R1.7 billion for the abandoned mines it plans to rehabilitate.[ii]

As a result, both the industry and South Africa’s taxpayers are facing a bill of billions of Rand!

“Quatre’s range of solutions protects the public purse and enables clients to put aside funds for future decommissioning and rehabilitation,” says Paul Jardine. Quatre’s solutions are crafted to meet the specific challenges facing both industry and government in funding the cost of decommissioning and rehabilitation, while also providing useful environmental and economic benefits.

Quatre Ltd provides its clients with the following solutions:

1.     The setting up of a Special Purpose Trust, designed to protect the public purse from decommissioning liabilities and ensure that economic recovery is maximized.

 

2.   Provide generic deficit protection insurance in case a license holder, or co-venturers, are incapable of funding the decommissioning of assets under license. Quatre’s Deficit Protection Plan will offer improved protection for government, because it will contain the deficit within the liabilities of existing license holders.

 

About

Quatre Ltd provides services and products that support the Financial Risk Management associated with the decommissioning of oil, gas and other extractive industry assets. Quatre’s services and products allow industry to:

·      Maximize economic recovery

·      Manage post-decommissioning liability

·      Protect the public purse

Paul Jardine, an oil and gas industry veteran founded Quatre Ltd, in 2013. Quatre’s integrated team of professionals, covering Insurance Brokerage, Investment Management, Legal, Taxation, Trust Management and E&P Operations, provides for the financial requirements associated with on- and off-shore decommissioning liabilities. Quatre is an Appointed Representative of Property Insurance Initiatives, regulated by the Financial Conduct Authority.

For more Information

Nicholas Newman

[email protected]

http://www.quatre-ltd.com/

27 John Snow Place, Oxford, OX38BB, UK

Tel: +44-1865-762710

Mobile: 0758 0469 514 / Skype: oxfordprospect

[i] http://cola.siu.edu/geography/_common/documents/papers/stuurman.pdf

[ii] http://pulitzercenter.org/reporting/leaving-poor-cope-alone

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