The headlines make grim reading. All your development work, all your exploration and all your investment could be taken away at the stroke of a legislative pen.
We’ve seen it with First Quantum in the DRC. A new regime or a coup d’état can change a benign exploration landscape into political turmoil. Argentina is another example. What was seen as an emerging progressive economy suddenly changes – and a company like YPF is nationalized.
A country’s upheaval can create political violence, nationalization programs, selective discrimination or even forced abandonment. Governments can and will expropriate your licences and mining assets. And that can spell disaster for a mining company. As a junior you’ve spent millions of dollars to get results. And a dramatic political shift can mean that you lose your project entirely – and all your investment in that particular country or project disappears in one catastrophic loss.
Until now insurance hadn’t been able to help. Political risk insurance policies only protected the plant/mine or physical structures which had been created – which is no help to a junior. The good news is that Axis Insurance has developed a brand new Political Risk Insurance Policy especially for mining and mineral exploration companies.
Interested in more?
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