Thursday, December 8, 2022

Company now offering mining insurance

The Botswana Insurance Company (BIC) Limited Direct and Agency Manager, Chris Burton, says that his Company has designed mining insurance solutions with sophisticated human resource and technological support to meet the extraction industries’ specific business solutions. Speaking to The Sunday Standard during the just ended 10th Resource Sector Conference, Burton said BIC has insurance cover tailor made for every mining house’s entire mining operations, beginning from prospecting, geological surveying and mapping, feasibility study, drilling, mineral extraction up to beneficiation. However, insurance cover for all the phases carried out prior to the actual extraction cost little as compared to the cover when the mine is up and running.

“The Mining Resource Sector Conference provides us with ample opportunity to sensitize the mining community on the various types of cover applicable to their operations and settings,” said Burton.

“Insurance solutions covering risks against damage or loss of equipment during transportation of equipment, mineral prospecting and human capital are minimal albeit essential. In addition, public liability also provides third party bodily cover for bodily injury and damage to property within the mining premises and work way. Mining companies also prefer to take up cover during the construction phase and operation. However, legal liability and wrongful arrest can also form part of the cover.

“The Contractor’s All Risk (CAR) apart from insuring damage against civil engineering works, equipment and advanced profit losses, covers dams, power plants, water lines and roads. However, mining companies across the board can take up cover for specific contract period or on annual basis.
“What sets Erection All Risk Insurance (EAR) apart from CAR is that the value of plant and equipment erected must exceed that of civil engineering works and building. EAR also provides the same CAR policy coverage for machinery and equipment during installation or erection on site.”

Botswana Chamber of Mines member, Discovery Metals, is a BIC client and has purchased the bulk of mining insurance solutions. Discovery Metals is focused on developing the 100 percent-owned Boseto Copper Project and major asset situated in north-west Botswana and creates shareholder wealth through discovery and development of economic mineral deposits. The company also controls 85 percent of the Dikoloti Nickel Project in north east Botswana.

The Machinery Breakdown Insurance (MBI) is costly by value, because it covers unforeseen and sudden loss or damage to machinery, mechanical equipment and apparatus from external and internal causes, during the active operational phase, including after successful completion of testing and commissioning. MBI also covers loss of profit during machinery breakdowns or downtime.

“MBI, which applies while at work, at rest or during dismantling, is an all risk cover supplementing the fire cover policy,” he said.

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