Security risks for mining companies

Security risks are rapidly evolving and crisis incidents can happen quickly and without warning. The safety of your workforce can be jeopardised as a result of acts of extortion, hijack, active shooter, hostage barricade, terrorism, violent assault or kidnap.

Perhaps the most critical and unpredictable risks faced by mining companies is the exposure of personnel away from the security of the mine site.

Companies have a duty of care for employees which also legally extends to contractors and consultants working on behalf of the company.

A rapid and effective response to a crisis event is imperative in demonstrating the company’s commitment to this value, thus mitigating reputational risks while ensuring balance sheet protection and business continuity.

We provide security risks insurance, safety management and consultancy for the mining industry. Our global team of specialists design bespoke corporate protection policies specifically focused on covering your most valuable assets, your people, against a broad range of security and health-related perils.


Security risks for mining companies

The unpredictable nature of security incidents means that total immunity from a crisis event is impossible, however those companies with a sophisticated level of preparedness and mitigation measures in place will minimise the impact of a crisis if it occurs.

Our global team of specialists understand mining risks spanning the entire project lifecycle.

Security risks for mining companies

We manage a large and established client base of mining companies, contractors, traders, and financiers, across a range of commodities and regions.

Our objective is simple: to provide our clients a competitive advantage by enhancing their resilience and empowering them to take risks. Working with you, we can help you understand and manage your security risks.

Security risks facing mining companies

Mining company personnel face a variety of risks across the project lifecycle. Some of these could be:


In many cases, expatriates will be required to live and travel in remote areas. Expatriates’ profiles, as foreigners can make them attractive targets for terrorist groups or criminals.

Projects in emerging markets present a high-level security risk to personnel often owing to the presence of criminality, terrorism, poverty, political or civil instability. As the site is constructed, the number of on-site personnel increases, making the project a more visible target.

As mining companies ramp up production or move into expansion phase, a range of risks can threaten the safety of personnel:

  • Local opposition, particularly around environmental issues or working practices can become more acute, heightening risks of protests or extortion risks
  • Mining sites are well-secured, however, off-site movement will present a challenge. Terrorist or gang-related attacks in urban centres perhaps represents the highest risk for off-site personnel. Scenarios such as hostage sieges, violent road blockades, or armed assaults are possible
  • The first two years of a project represent the highest period of risk for worker health. The remote location of mines coupled with undeveloped infrastructure and healthcare systems means that emergency evacuation may be required.

In the current commodity downturn, many mining companies are mothballing projects, presenting risks to those personnel that remain on-site to maintain equipment and security, as they are more isolated.


Our bespoke corporate protection policy is specifically designed to protect your most valuable assets – your people, against a broad range of security and health-related perils.

No two mining companies have the same risk profile; risk is specific to country, project phase, commodity, and a range of other nuances. JLT will work with you to structure a policy that is entirely tailored, and our mining clients can select the core components of their policy as required.

Listed below are some of the insured events we cover which would be relevant for a mining company:

  • Hijack
  • Extortion
  • Kidnap
  • Disappearance
  • Illegal detention
  • Stalking response expense

Short-term hostage siege which involves the holding of insured persons for more than 1 hour by perpetrators who demand a ransom as a condition of the release of the hostages. 

The physical and violent attach on the insured’s premises by persons armed with weapons directed against three or more insured persons. 

The alleged kidnap and alleged holding captive of an insured person by persons who threaten to harm the victim if a ransom is not paid. The kidnap never actually occurs but it is the perceived risk which induces an insured to make the ransom payment. 

Sudden deterioration in the political and security environment where it is deemed essential by the Foreign Office/ response consultants and mining company to evacuate all non-essential staff from the country. 

Short-term kidnap or robbery (under four hours) where money is exchanged as a condition of release.

Illegal threat to harm insured persons or damage the insured’s property without an accompanying financial demand.

Access to response consultant

Whilst the financial protection that this policy provides is important, the most crucial aspect of this insurance is the access to the specialist expert response consultants to support and guide you during an incident.

If it is deemed necessary, the consultants will deploy immediately to the location of the incident and/or the HQ of the company and/or the victim’s family home to assist in liaison and the negotiation process and will remain on the case until its resolution.


  • Immediate access 24/7 to expert response consultants trained in handling a range of complex security incidents via a dedicated hotline
  • Access to 10-20% of the premium paid to allocate towards risk prevention services such as employee training, travel security reviews, crisis management planning, country risk information subscription services. This not only assists in improving and stress-testing the client’s existing security but also demonstrates to insurers a tangible security awareness thus improving premium rates
  • Access to a variety of bespoke crisis mitigation services from JLT’s Analytics & Consulting team  including but not limited to country risk assessments, site security analysis and risk management consulting, site security risk audits, drafting of crisis management plans and crisis management training and travel security for personnel.

During a crisis:

  • Prioritised access to response consultants who will provide immediate advice and guidance on how to handle the situation. A dedicated hand-holder may be deployed to the company’s HQ or the victim’s family home to assist in the immediate aftermath of an incident
  • If deemed necessary, specialist response consultants will deploy to the location of the incident and/or headquarters of the company and/or victims’ family home to advise on negotiation strategy, media-handling, law enforcement agency liaison and any other related issues
  • Our in-house brokers and claims handler will mediate and coordinate with the client, insurer and response consultants to quickly identify the insured losses.


  • JLT’s dedicated K&R claims handler will work with the client to collate the relevant claims data required to submit to insurers to facilitate claims payment and ensure that the financial benefits of the policy are maximised
  • Financial indemnification for the company to ensure that the balance sheet is protected, shareholder interests are secured and business activity continues as normal. Legal liability to third parties is covered, as are all response consultant fees and expenses incurred during the management of the crisis
  • Financial and pastoral care for the victim and their family during and after a crisis; medical and psychological care, cost of travel and accommodation, rest and rehabilitation, media and public relations consulting, salary of the victim and a relative involved in the incident, childcare (if required) and temporary security. This demonstrates a tangible duty of care provided by the company to its employees.
  • Response consultants will provide a post-incident debrief to identify security breaches and analyse the crisis management strategy to see where improvements can be made to ensure that the risk of such an event occurring again in future is mitigated.
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