Mining companies are acutely aware of the risks and challenges that tailings storage facilities (TSFs) pose and understand that a rupture or failure can result in significant consequences such as loss of life, environmental damage, impact their social license to operate and ESG rating, and may encounter possible financial hardship.
Prior to the catastrophic failure of the tailings dam in Brumadinho, Brazil in 2019, most companies were required to disclose relatively little information on their facilities and had been able to transfer part of their tailings exposure into their general liability, property or environmental liability insurance programs.
However, almost overnight following the devastating failure, insurers soon discovered the full financial impact that a significant failure can have on their own business, resulting in a complete overhaul in underwriting guidelines.
As a result, mining operators are now required to be more transparent in the assessment of risks and have since experienced substantial premium increases while the insured value has dropped significantly.
- Show that their facility adheres to certain standards and are complying with industry public disclosure requests such as the Investor Mining and Tailings Safety Initiative (Church of England)
- Work with underwriters and auditors on third-party engineering reports and follow-up on any resulting risk recommendations
- Fulfill their obligation to do whatever is necessary to avoid an incident from occurring
Utilising technology to potentially reduce insurance premiums
After hearing the industry’s challenges following the Brumadinho disaster and speaking with several Tier 1 and 2 mining companies, Decipher has been working with industry leaders in the tech space to create an integrated TSF cloud solution to help companies improve governance, compliance, monitoring, reporting and disclosure of tailings data.
The Decipher solution has been designed to enable customers to provide independent users (insurers, investors, auditors and ITRB) with secure access to a quick and effective knowledge management tool with selective data.
This enables mining companies to visually demonstrate their good governance, enabling stakeholders to better understand the facility, it’s risks and as a result, potentially reduce insurance premiums or improve investor sentiment.
Join other Tier 1 and 2 Mining companies with comprehensive performance monitoring for tailings and impoundment facilities. The integrated and secure platform helps ensure TSFs are designed, constructed, monitored, managed and overseen in accordance to the global tailings standard and allows you to:
- Monitor, access and report on tailings facilities from anywhere in the world, on nearly any device
- Be automatically alerted to customer defined exceedances, helping drive greater safety precautions and reducing risk
- Centralise data from internet of things (IoT) devices, light detection and ranging (LiDAR) radar, CCTV, drones, inspections and remote sensing into one location
- Create reports to meet internal and external data requests such as the Investor Tailings Safety Initiative (Church of England)
- Identify and track stakeholders and important metrics, capture ongoing engagements, and trend sentiments
- Manage obligations and actions with workflows and audit tracking for increased transparency
- Access advanced monitoring tools such as earth observations, InSAR, IoT, environmental monitoring and sampling and more to monitoring performance and potential risks
Organise a free trial to see what’s possible today.