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Commodity prices are at an all time high, and many of the emerging economies, led by China, are experiencing a continual increase in consumer demand. As a consequence, mining and metals companies are facing some interesting and exciting new challenges.
Many of the top minerals companies are either in the midst of a renewed merger and acquisition trail, or are putting capital investment into substantial expansion projects. These initiatives are intended to maximise margins, take advantage of the current commodity prices and respond to worldwide demands.
Examples of surging commodity prices include copper, which continues to strengthen partly due to the major copper producers chasing the secondary metals in their ore bodies – such as molybdenum (used for creating strong new alloys). Aluminium and gold, where prices are similarly at record highs, and even zinc has gone from what might previously have been considered a less sought after metal to being part of the attractive commodity portfolio.
Whilst opportunities are abound due to these levels of potential gain, the mineral sector operates in an increasingly hostile environment –due either to forces of nature or changing political climates – which increases the exposure to risk scenarios. This could affect the profitability and long term revenue targets of mining companies if not properly insured against with the most effective solutions available.
Benfield Corporate Risk has recognised both the opportunity and specific needs in this sector and has employed recognised specialists within the insurance industry to form a formidable team to take care of customers changing demands and challenges.
The Benfield philosophy is to add value, and to create unique solutions for all our customers. For example we are ideally placed to assist with the new prospects that exist in the Canadian oilsands, where the extraction techniques involve practices from both the mining and energy sectors, and will require tailor made solutions to ensure that the diverse aspects of this process are fully and effectively catered for.
Benfield Corporate Risk’s Team Members are industry specialists that work in partnership with our customers to deliver bespoke solutions to the customers’ specific needs.
Our strengths are enhanced by the unrivalled specialist services available to our customers from within Benfield including ReMetrics and Risk Engineering. These services help our customers more accurately assess the risks they face in an ever changing global environment.
Environmental Liability
Our team possesses the ability to handle environmental exposures inherent to the industry whether created by methods, waste streams, equipment, or improper closure procedures. Coverage provides protection for remediation, third-party claims for bodily injury and property damage, and punitive damages. Legal defense is included as well.
Our Business Areas Include:
- Open cast mines
- Underground mines
- Processing facilities - crushing / milling / flotation
- Beneficiation plants
- Smelters
- Ancillary and support operations
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