Major mining losses in EMEA: the need for specialist expertise
Africa’s mining sector – from platinum, gold and chrome to iron ore, copper, coal and the critical minerals now driving the global energy transition –underpins some of the most capital-intensive extraction and processing operations in the world.
When a mega-mine, smelter or mineral-processing plant suffers a major loss, the adjustment can require considerable technical and regional expertise. Understanding the engineering and operational context, establishing the cause of the loss and navigating the regulatory, political and economic environment can all be important to determining cause, coverage and quantum.
For loss adjusters, this requires genuine engineering depth combined with an understanding of the region in which the loss has occurred.
Understanding the operational context
Major mining losses require an understanding of the operational context, not simply the physical damage. Underground and opencast mining, mineral processing
and metallurgical or process plant environments each present different technical considerations, while mechanical, chemical and electrical engineering issues may all need to be considered as part of the same loss.
This makes specialist engineering knowledge important from the outset. Before questions of causation and quantum can be properly addressed, adjusters need to understand the operation itself, the function of the damaged equipment and the circumstances surrounding the loss.
This can be particularly important following catastrophic industrial failures. Mechanical equipment failures, structural collapses, process excursions, fires and explosions can all require detailed root-cause analysis. Experience of operational engineering, statutory engineering management and asset integrity can therefore be highly relevant to the subsequent adjustment.
Understanding the cultural, political and economic landscape
Mining risk in EMEA cannot be separated from the environment surrounding it. A loss at a mine in the DRC, the Sahel, the Middle East or Eastern Europe carries a different set of pressures to a similar loss in Western Europe or coastal South Africa. Regulatory regimes, labour relations, community dynamics, currency and logistics constraints and, in some jurisdictions, exposure to civil unrest, insurgency or sanctions can all shape how a claim needs to be handled.
Regional knowledge can consequently be as important as technical expertise. An understanding of local language, policy interpretation, regulatory compliance and culture can help claims to be progressed with insurers, insureds and local authorities in parallel rather than sequentially through outside intermediaries.
This regional understanding also matters at the intersection of political risk and property risk. Mines and processing plants can be located in areas exposed to community unrest, artisanal mining conflict or broader political volatility.
Reaching remote mining sites
Geography presents another practical challenge. Many of Africa’s largest mining assets sit far from major cities – in remote provinces, across borders or in areas with limited infrastructure and connectivity. Mobilising the appropriate expertise to these locations can therefore be an important part of the claims response.
Speed of access can also matter. Early site attendance can influence the quality of evidence available, the robustness of subsequent causation findings and ultimately the progress of the adjustment.
This places a premium on regional experience and established networks, particularly where specialists need to mobilise across Africa, the Indian Ocean Islands and the Middle East.
Specialist expertise for complex losses
As global demand for critical minerals continues to drive investment into African and Middle Eastern mining assets, specialist expertise will remain important to the adjustment of major losses across the region.
The fundamental challenge is that these claims cannot always be understood by looking at the physical damage in isolation. The engineering, mining operation and wider environment surrounding the loss can each influence how a claim is investigated and progressed.
For loss adjusters, that makes the combination of technical expertise and genuine regional understanding particularly important. Getting the right expertise to the site early can provide insurers and insureds with a clearer understanding of what has happened, the circumstances surrounding the loss and the issues that will need to be addressed as the claim develops.
