Mining & Resources

Why mining companies need a specialist broker

Mining operations carry risk profiles that differ fundamentally from other industries. Remote site locations create unique logistics and emergency response exposures. Environmental rehabilitation obligations are mandatory and can exceed the value of the mining operation itself. Heavy mobile equipment operates in extreme conditions. And regulatory frameworks vary significantly between states.

A generalist broker placing a standard commercial insurance program on a mining operation will almost certainly leave gaps — in environmental liability, in mobile plant cover, in business interruption calculations based on commodity cycles, and in the surety structures needed for rehabilitation bonds.

What we cover

We structure comprehensive insurance programs for mining companies covering:

Property and business interruption — covering fixed plant, processing infrastructure and revenue loss, with business interruption indemnity periods that account for the time it actually takes to replace specialist mining equipment and resume production.

Public and products liability — tailored to mining-specific exposures including underground operations, blasting, heavy vehicle movements, environmental contamination and third-party property damage.

Mobile plant and equipment — covering dozers, excavators, haul trucks and ancillary equipment operating across multiple sites, including transit between sites and hired-in equipment.

Environmental impairment liability — covering gradual and sudden pollution events, remediation costs and third-party bodily injury or property damage arising from contamination.

Workers' compensation — managed across multiple state jurisdictions, with consideration for FIFO workforce arrangements and remote site medical evacuation.

Marine transit and cargo — covering the movement of ore, concentrate and equipment between mine site, processing facility and port.

Surety bonds for mining

Environmental rehabilitation security is the single largest bonding requirement for most mining companies. State governments require financial assurance that mine sites will be properly rehabilitated — and these obligations routinely run into tens of millions of dollars per site.

We structure surety bond facilities that replace cash deposits and bank guarantees for rehabilitation security, freeing up capital that would otherwise be locked away for the life of the mine. Our facilities cover rehabilitation bonds, performance bonds for mine development contracts, and fuel/supply bonds for remote site logistics.

The rehabilitation bond opportunity

A mining company holding $20M in rehabilitation bank guarantees has $20M less borrowing capacity for exploration, equipment and growth. Replacing those with surety bonds from A-rated insurers releases that capital immediately — with identical security for the state regulator.

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