Howden Broking Group, the broking arm of Hyperion Insurance Group, has announced the launch of a standalone product that mitigates the costs of rescue in the event of a mine collapse, the first of its type in the industry. The new product ‘Minero’ was developed by Howden Broking Group in conjunction with Argo, who is backed by Lloyd’s chain of security.
Minero is a world first insurance product for the mining industry, designed to mitigate the risks associated with rescuing miners. It is an end-to-end product that covers the costs of the resources, equipment, logistics and personnel required for a rescue operation, supports affected employees and their families and helps manage company reputation, in order to prevent trading losses and protect share price and shareholder value.
In Mexico 6,800 miners at Industrias Peñoles subsidiaries Fresnillo Plc and Minas Peñoles, and their families, are already protected by Minero. Industrias Peñoles, home to the world’s oldest and second largest silver mining company, has become the product’s anchor client. Focused initially on hard rock exploration, there is significant growth potential for Minero, with over 25,000 precious metal mines worldwide, for whom mining catastrophe remains a major concern, despite advances in technology and health and safety.
While much reduced in frequency, there are still 20-30 disasters per year globally, with a potential cost to the industry of over $1 billion. A rescue can cost a mining company up to $40m, with the reputational and share price impact often far higher.
Minero pays for the costs associated with generating a rapid response to rescuing trapped miners. By purchasing Minero, companies can demonstrate their commitment to industry best practice and, most importantly, the safety of their people. Minero is a powerful demonstration of mine management and owners taking such issues seriously, against the backdrop of an increasing desire from mining companies to be seen as investing appropriately in Corporate Social Responsibility and conveying responsibility towards their workers.
Adrian Colosso, CEO of Howden Broking Group, commented, “Howden has a longstanding reputation for innovation, and responding to industry trends and demands, and the Minero product highlights our ability to see an unresolved client issue and provide a real solution. Importantly, it has come to fruition as a result of the Howden team working collaboratively with Argo, and in turn with Lloyd’s – a great example of how the industry can work together to support the development of the market.”
“We’re delighted to be offering Minero as a world first – a complete and bespoke product that can support the mining industry in every aspect of a rescue, so that absolute focus can be given to ensuring the well-being of a workforce in the event of a mine collapse.”
Howden Broking Group
T: + 44 (0)207 648 7158
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Ed Berry / Tom Blackwell