Security risks facing mining companies
Mining company personnel face a variety of risks across the project lifecycle. Some of these could be:
EXPLORATION ACTIVITIES IN EMERGING MARKETS
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.
CONSTRUCTION PHASE IN EMERGING MARKETS
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.
MINE CLOSURE AND RECLAMATION PHASE
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:
- Illegal detention
- Stalking response expense
Access to response consultant
While 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:
- Prioritized 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 maximized
- 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.