(1)    Upon notification that an application for a prospecting or mining permit has been approved by the department but prior to commencing prospecting or mining, the operator shall file with the department a bond conditioned on faithful performance of all of the requirements of this chapter and all rules adopted by the department under this chapter. The bond shall be furnished by a surety company licensed to do business in this state. In lieu of a bond, the operator may deposit cash, certificates of deposit or government securities with the department. Interest received on certificates of deposit and government securities shall be paid to the operator. The amount of the bond or other security required shall be equal to the estimated cost to the state of fulfilling the reclamation plan, in relation to that portion of the site that will be disturbed by the end of the following year. The estimated cost of reclamation of each prospecting or mining site shall be determined by the department on the basis of relevant factors including, but not limited to, expected changes in the price index, topography of the site, methods being employed, depth and composition of overburden and depth of nonferrous metallic mineral deposit being mined.

   (1g)   An operator shall maintain proof of financial responsibility ensuring the availability of funds for compliance with the long-term care requirements specified in the waste site feasibility study and plan of operation consistent with the requirements under s. 289.41 except that, notwithstanding s. 289.41 (3), the operator shall furnish the proof of financial responsibility in the form of a bond, cash, certificates of deposit, government securities, or insurance.

   (1m)   Upon notification that an application for a mining permit has been approved by the department but prior to commencing mining, the operator shall file with the department a bond issued by a surety company licensed to do business in this state, cash, certificates of deposit, or government security, to cover unforeseen remedial contingencies not otherwise covered by the bonds or other security required under sub. (1) or (1g), including for the provision of a replacement water supply if required under s. 293.65 (4) (d). The amount of the bond or other security required shall be 10 percent of the total amount of the bonds or other security required under subs. (1) and (1g). The operator shall increase, and may decrease, the amount of the bond under this subsection according to any increase or decrease in the amount of the bonds or other security required under subs. (1) or (1g) until the operator ceases to extract material from the mining site, at which point the amount of the bond under this subsection shall remain the same until released by the department. The bond or other security under this subsection shall be released no later than 40 years after the operator ceases to extract material from the mining site.

   (1r)   At the time of closure of the mining waste site, the operator shall provide proof of financial responsibility to the department in an amount equal to the reasonably anticipated costs during the period between 40 and 250 years after closure of the mining waste site to repair or replace any engineered cover systems or tailings water management control systems used at the mining site or mining waste site to avoid adverse environmental consequences. At the time that the application for a mining permit is approved, the department shall determine the amount to be paid at the time of closure based on the net present value discounted at a rate of at least 5 percent per year, and identify the reasonably anticipated costs that the amount is intended to cover. The operator shall provide the proof of financial responsibility in the form of a cash deposit, which the department shall segregate and invest in an interest-bearing account; certificates of deposit, government securities, or other interest-bearing forms of security; or proof of establishment of an interest-bearing account, including an escrow account or trust account. The operator or any successor in interest may use the funds or request the department release the funds to cover any reasonably anticipated costs that were identified by the department. The department shall release any remaining funds to the operator or the operator’s successor in interest after all of the reasonably anticipated costs that were identified by the department have been incurred, or upon determining that the reasonably anticipated costs are no longer applicable.

   (2)   The applicant shall submit a certificate of insurance certifying that the applicant has in force a liability insurance policy issued by an insurer authorized to do business in this state, or in lieu of a certificate of insurance evidence that the applicant has satisfied state or federal self-insurance requirements, covering all mining operations of the applicant in this state and affording personal injury and property damage protection in a total amount deemed adequate by the department but not less than $50,000.

   (3)   Upon approval of the operator’s bond or other security under subs. (1), (1g), (1m), and (1r), mining application, and certificate of insurance, the department shall issue written authorization to commence mining at the permitted mining site in accordance with the approved mining and reclamation plans.

   (4)   Any operator who obtains mining permits from the department for 2 or more mining sites may elect, at the time the 2nd or any subsequent site is approved, to post a single bond in lieu of separate bonds on each site. Any single bond so posted shall be in an amount equal to the estimated cost to the state determined under sub. (1) of reclaiming all sites the operator has under mining permits. When an operator elects to post a single bond in lieu of separate bonds previously posted on individual sites, the separate bonds may not be released until the new bond has been accepted by the department.

   (5)   The department may not require an operator to provide a type or form of financial assurance other than those specified in this section.

   (6)   Any person who is engaged in mining on July 3, 1974 need not file a bond or deposit cash, certificates of deposits or government securities with the department under this section to obtain the written authorization to commence mining under sub. (3).