Without a guarantee, there is no responsible extraction. With it, the future of the environment is protected.
Mining activity generates significant legal obligations towards the Administration and third parties. The surety bond is the most agile and efficient instrument to comply with them without tying up capital. Surety bond in 72 hours. No capital tied up. No credit risk register impact.
Issuance of any sector guarantee
impact on credit risk register or capital
European countries covered
Mining at the Centre of the Technological Transition
The extraction of critical minerals and rare earths has gone from being a secondary activity to becoming a strategic link in the global economy. Without lithium, cobalt, neodymium or dysprosium there are no batteries for electric vehicles, no wind turbines or solar panels, no semiconductors, no displays. The European Union has explicitly recognised this in the Critical Raw Materials Act (2024), which sets extraction targets specifically to reduce dependence on third countries. Operating in this sector today carries a special significance, contributing to Europe’s industrial and technological sovereignty.
To Extract, You Must Guarantee
Since mining activity can generate adverse effects on the environment or for third parties, it is essential that public authorities maintain oversight of operations to ensure restoration and compensation.
Environmental Restoration Bond
Every mining concession requires a guarantee covering the restoration of the affected natural environment. The Spanish Mining Act (Law 22/1973) and Directive 2006/21/EC require the operator to put this guarantee in place before extraction begins.
Mining Waste Bond
Directive 2006/21/EC on the management of waste from extractive industries requires a specific financial guarantee covering the closure and rehabilitation costs of waste facilities.
Exploitation and Concession Bond
To obtain and maintain mining rights, regional authorities typically require a bond ensuring compliance with the conditions set out in the administrative authorisation.
Civil Liability Bond
Operations classified as high-risk activities must demonstrate the capacity to cover damages to third parties, with levels of coverage that are sometimes required by the relevant regional authority.
The amount of the environmental restoration bond is calculated on the basis of a restoration plan approved by the competent authority. This plan must include a detailed budget covering closure works, morphological rehabilitation, revegetation and environmental monitoring. The bond must be updated periodically as extraction progresses and the volume of accumulated waste increases.
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Which sectors use Surety Bonds?
Surety bonds are multi-sector instruments that can be used across all industries.
It is an alternative to the bank guarantee, offering greater advantages and enhanced flexibility.These are the sectors we commonly work with
Administrative Concessions
Guarantees for the management of long-term administrative concessions of public services.
Renewable Energy
Grid connection bonds and decommissioning guarantees for any renewable energy installation.
Mining
Environmental restoration, waste, exploitation and concession guarantees for mining operations.
Environment
Environmental restoration guarantees required by law.
Construction & Real Estate
Buyer deposit guarantees and decennial insurance.
Private Security
Guarantees required by national competent authorities without affecting banking exposure.
Customs & Import/Export
Guarantees on payment of tariffs and VAT before the Customs and Special Taxes Department.
Gambling
Administrative bonds for gaming licences.
Advantages: Surety bond
Your liquidity, intact
No financial resources are tied up. The money stays in your account doing what it should: financing your business.
Off the Bank Risk Report
The surety bond does not count as bank risk. Your rating and your financing capacity are not affected.
Response in 48-72h
We operate in 30 countries. A single signature for all your markets. We do not miss deadlines. When the specifications require 5 days, we deliver in 3. Study, response and issuance.
Coverage in 30 countries
A single relationship with Sammy Free covers you in any country of the European Economic Area. Without looking for a local broker every time.
Specialists, not generalists
We only do surety bonds. Not car insurance, not life, not home. Only surety bonds. This focus makes the difference.
Plafond: issue without waiting
With your pre-approved line you can issue new guarantees in a matter of hours. One analysis a year, unlimited tenders.
What documentation is required to apply for a surety bond?
The documentation required varies depending on the insurer and the type of operation, but generally includes information on the company’s financial, fiscal and legal situation, together with documentation related to the contract or tender (specifications, award notice, etc.).
How Much Does a Surety Bond Cost?
The cost of a surety bond depends on several factors that determine the level of risk involved:
- The company’s financial strength
- The type of bond required (bid bond, performance bond, advance payment bond, etc.)
- The amount and duration of the bond
- The company’s track record
- The country where the bond will be issued
- The company’s technical and operational capacity
- Market conditions
If you would like to learn more, read our article on the factors that influence surety bond pricing.
Can a surety bond replace a bank guarantee?
Yes. Both surety bonds and bank guarantees are valid instruments for securing a contract, and either can be used.
The key difference lies in the financial impact on your business:
- Bank guarantee: uses part of your banking capacity and ties up liquidity or assets as collateral.
- Surety bond: does not affect your banking capacity and does not tie up capital.
Discover all the advantages of surety bonds compared with traditional bank guarantees.
How long does it take to issue a surety bond?
It depends on whether you already have a Plafond (pre-approved bonding facility) in place with the insurer or not:
- With a Plafond line: issuance is same-day, as the company has already been assessed and approved.
- Without a Plafond line: the required documentation must be submitted (financial statements, legal documentation, tender documents, etc.). Once received, you will normally receive a quotation within 48 hours.
Do you also arrange guarantees between private companies?
Yes. Surety bonds can be used both in contracts required by public authorities and in agreements between private companies.
- With public authorities: they are required by law to accept a surety bond as a valid form of guarantee, unless the tender documents state otherwise.
- Between private companies: both parties must agree on the type of guarantee accepted. Both a surety bond and a bank guarantee are acceptable where there is mutual agreement.
What types of guarantees do you arrange?
We arrange all types of surety bonds. The most common are:
- Bid Bond: to participate in public tenders and procurement processes.
- Performance Bond: to guarantee performance of the contract once awarded.
- Advance Payment Bond: when a company receives an advance payment and must guarantee its repayment if contractual obligations are not met.
- Maintenance Bond: provides cover during a defined period after completion, ensuring that the works have been carried out correctly and covering potential defects in materials, workmanship or design that may arise at a later stage.
- Retention Bond: replaces amounts retained by the contracting authority until completion of the contract. It avoids the retention of funds from certified interim payments due to potential defects.
If your situation does not fit exactly into any of these categories, contact us with no obligation and we will find the most suitable solution for you.