SUSTAINABILITY
IT ’ S HARDLY A revelation to say that the mining industry is one in which risk is inherent . And yet , beyond the more obvious dangers that are associated with operational practices in a mining environment , the risk landscape for operators is becoming increasingly complex . Today , miners face frontier environments , issues with social licences to operate , potential impacts of climate change policies and local governments , costmanagement challenges and issues around access to infrastructure , as well as softening commodity markets .
In some respect such a list belies the true extent of any one of these issues to a mining operation but , should any one of the above impact day-to-day operations the subsequent business interruption ( BI ) – or worse – can have significant implications . For that reason , as well as extensive loss planning , risk assessment and management programmes and scenario testing , mining companies need to ensure that they have the right insurance to cover any loss . Instances of high loss incidents are relatively few but they are significant if they occur , making insurance that covers the entire lifecycle of a project essential .
Mining insurance is , for good reason , a specialist area of cover protecting business , property , employees , equipment and contractors from a myriad of potential risks . Typically , specialist mining insurance providers offer a broad range of services that can cover such things as property and business interruption , damage to plant and machinery – as well as innovative new technology such as drones and remote equipment – global life and accident insurance and special high-risk coverage policies .
According to specialist broker and risk management solutions provider , Marsh , rates for mining risks declined globally in 2017 . In its mining market update report , Marsh outlines the impact of natural catastrophe events last year to mining – operators with mines in high-risk areas prone to earthquakes , storms and hurricanes that occurred last year , for example , are likely to face higher scrutiny from insurers throughout this year .
More generally , 2018 was predicted to see an increase in insurance capacity provided to mining operators . “ Increases in business interruptions declarations will require
74 June 2018