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ADu ReVIeW

Social licence spans more mands around sustainable production.
“If you can brand yourself as a more sus-
tainable business it could put you ahead of
the competition,” Burnell said.
than site surrounds one of a number of issues when commu-
The changes to social licence are just

nity and legislative opinions are shifting in
ining’s social licence to operate require- the sustainability of their supply chains and the mining space. Burnell said the recent
Mments extend well beyond the mine they in turn are forcing suppliers to provide spate of fatal tailings spills in Brazil had led
gate now but savvy companies could use custody of supply. to greater awareness around mine closure
the situation to their advantage, according This has created problems in the mineral across the globe. He warned company di-
to one leading African lawyer. space, particularly for products with con- rectors should be thoroughly aware of their
Matthew Burnell, director of the Africa nections to illegal mining and human rights legal requirements to conduct assessments
group at Herbert Smith Freehills said during abuses. of tailings dams.
Africa Down Under that the scope of social Burnell believes there is opportunity for Other areas companies should be vigi-
licence to operate had changed over recent those mining companies who can meet de- lant around, according to Burnell, are cli-
years. mate change legislation, shareholder activ-
“There has been a revision of social li- ism and stakeholder engagement. He said
cence to operate in recent years,” Burnell future trends identified by Herbert Smith
said. “Now there is a new focus with the Freehills included cyberattacks with envi-
end-consumer looking through the whole ronmental impacts, mental wellness and
value chain to see as to whether companies new technology, climate change and cli-
are taking green issues into account.” mate change migration and disruptions in
Major retail brands such as Apple and the waste supply chain.
global car manufacturers are under in- – Dominic Piper
creasing pressure from consumers to prove
Matthew Burnell

PRI appetite still strong for Africa

allagher UK structured political risks profile policy changes, insurers were still 2009 and 2019 with the market now worth
Gexecutive director Rupert Morgan told supportive of mining companies on the $US3.092 billion.
Africa Down Under delegates that insurers continent. Morgan said Sub-Saharan Africa ac-
were showing a strong appetite for good He said factors which could be expect- counted for 9.7% of Lloyd’s of London po-
projects, even in challenging environments. ed to affect political risk premium rates litical risk insurance claims between 1997
Gallagher has been an active participant included country appetite, risk specifics, and 2017. Latin America and the Caribbe-
in the African mining space in recent years, capacity availability, sector exposure ag- an accounted for the highest share (26.7%)
providing political risks and mining project gregation and the loss history of individual followed by Asia-Pacific (19.9%) and Com-
insurance services to mining project devel- sectors and countries. monwealth of Independent States (17.7%)
opers, contractors and their financiers. There has been a 116% increase in before Africa.
Morgan said despite a number of high- political risk insurance capacity between

Political risk insurance premium rates for Sub-Saharan Africa Rupert Morgan

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