Insurance for Mining Exploration and Development Costs
Don’t lose your mining investment to political change!
FOR THE FIRST TIME YOU CAN INSURE YOUR EXPLORATION AND DEVELOPMENT COSTS
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 licenses 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.
While we can’t fully insure your market cap, we can get you back all the money that you’ve spent developing your asset. And although this won’t preserve all your shareholders’ wealth, it will give you the chance to invest in another project in another place. And because it’s fully scalable, you only insure the amount you’ve invested – whether $10 million or $50 million and your premium is priced accordingly. So you set the limit based on what exploration and development costs you have spent in a particular country, or a particular project.
Political risk insurance from Axis means you can mitigate the perceived risk of operating in an unstable country or in an emerging economy which may suddenly change. Our coverage lets you and your shareholders focus on the things you can control and protects your investment – before it’s too late.
A NEW TYPE OF POLITICAL RISK INSURANCE
• Recoup your development losses – we get you back the money you’ve invested
• Not just protection for physical assets – coverage starts earlier and is broader in scope
• Fully scalable – you only insure what you’ve invested
• Industry experts – Axis has long experience and many clients in mining and minerals
We’d love to tell you more. I will follow up in a couple of days, but why not call me now at 1-888-AXISMINE or visit our specialist mining website at http://www.axismining.com Why t.ake the risk, when you can have complete peace of mind?
As with every insurance policy there are different options, policy wordings, enhancements or amendments available. Your Axis Insurance manager will be able to help create a tailor-made policy to suit your requirements exactly.
To find out more about Mining Exploration and Development Costs Insurance, or to discuss your existing insurance policies, please give one of Axis insurance’s professional and experienced team members a call at 604.731.5328 or email: firstname.lastname@example.org. We would also be pleased to outline the benefits of Mining Exploration and Development Costs Insurance with your management team or board members. If you would like to schedule a meeting or request an application form, please contact David Marsh at 604.708.6242.