![]() Some companies are now choosing to self-insure as they’re finding it impossible to get insurance.” ![]() “The effective cost of insurance is now about three times what it was previously for a lesser amount. In the recent AusIMM Global Tailings Standard webinar, Professor David Williams explained that some regions including Brazil, China, Russia, and parts of Africa have been refused insurance cover for tailings dams, while other regions have had their insurance cover significantly reduced by about one third and their premium has increased about twice. As a result of this, mining operators have experienced substantial premium increases and a decrease in insurance cover. ❼ómo ha afectado esto a los operadores mineros?Īlmost overnight, insurers were waking up to the full financial impact that a significant tailings failure can have on their business, resulting in a complete overhaul in underwriting guidelines. In light of this, the insurance industry has been revisiting its approach and has been eagerly awaiting the release of the Global Standard on Tailings Management for further guidance. ![]() The devastating disaster resulted in the operator posting a USD1.6bn loss in the first quarter of 2019 after they incurred expenses of USD4.5bn related to physical damage, business interruption and decommissioning. Until the catastrophic failure of the tailings dam in Brumadinho, Brazil which caused a tidal wave of 11.7 million cubic meters of mining waste, killing 270 people, most mining companies had been able to transfer part of their tailings exposure into the insurance market, be it through their General Liability, Property or Environmental Liability Insurance programs as there was no specific ‘tailings storage facility insurance’. In particular, i nvestors and insurance companies want to know that their respective activities are protected, and mine operators therefore must do whatever they can to make a risk quantifiable.Īccording to Willis Towers Watson, until recently insurance capacity was generally available and underwriting requirements were modest in nature in that insureds had to disclose relatively little information on their facilities, operational or decommissioned, to their insurers in order to obtain coverage. With several major tailings disasters occurring within the last few years, tailings facilities have come under increased scrutiny with stakeholders demanding better governance, paying closer attention to the monitoring and maintenance of dams, and placing a strong focus on the role of independent audits.
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