INTRODUCING JLT MINING - GrECo JLT … · • Antamina • Antofagasta Minerals • Codelco • Collahuasi • ENAMI • ENRC ... INTRODUCING JLT MINING 10 11 OUR SERVICES JLT Mining’s

INTRODUCINGJLT MINING IN COOPERATION WITH GrECo JLT GROUP

INTRODUCING JLT MINING

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JLT PROPOSAL

Front Cover Image: The smelter shop of the Nadezhdinsky non-ferrous metal works under Norilsk Nickel Co, Russia.

ABOUT JLT MINING

The mining industry is facing one of the most marginal operating environments seen in a decade. The need to deliver robust growth in the face of commodity pricing volatility, to maximise project efficiency, to become leaner, and to outmanoeuvre the competition means partnering with the right broker is paramount.

JLT Mining is an established team with a strong book of business across a range of commodities

and risks. We believe that it is our commitment to our clients’ interests that sets us apart.

Working with JLT Mining is a partnership. Our cross-class expertise stems from long-term relationships

with miners, contractors, traders, and mining financiers. We understand the project lifestyle from start to

finish, and know where we can add value. We deliver products and services that provide a competitive

advantage – particularly during hard times. This means that our clients stay with us because of the value

we add, not just because we achieve competitive premium rates.

When it comes to risk transfer, we combine quality local broking with global reach by leveraging JLT

Group’s network of 10,000 specialists across 135 countries. Our market-leading claims advocacy

has collected nearly USD4.65bn for the natural resources sector since 2010, while our in-house risk

consultancy practices help clients identify, understand, and mitigate risk more effectively.

We work hard to find robust solutions that pre-empt our clients’ needs and which anticipate the

changing state of the mining industry. This enables JLT Mining clients to enhance their resilience

and to continually secure new opportunities.

Fastest growing mining book in the international

market

Strong relationships with all specialist mining insurance markets around the world

Experience in a range of commodities from exploration through

to processing

Local service combined with global expertise

Access to specialist Mining Engineers and Mining Loss Adjusters with global reach

10 mining hubs across the world from Australia to

the USA


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Czech Republic

Croatia

GrECo JLT is the leading specialist insurance broker in Eastern Europe and the CIS. They are headquartered in Austria with offices in 15 further territories and nearly 800 employees. As an associated company and exclusive JLT International Network Partner since 2010, JLT and GrECo JLT are closely aligned in specialist insurance placement and strategy.

GrECo JLT are the largest insurance broker in Austria and placed approximately EUR 600,000,000 premium into the market in 2015.

GrECo JLT is a key partner in the JLT International Network which represents JLT’s global account platform in over 135 countries. This makes it one of the largest insurance and employee benefits broker networks in the world.

GRECO JLT GROUP IN EUROPE

Serbia

Slovakia

Slovenia

Ukraine

Turkey

Russia

Romania

Estonia

Hungary

Poland

Bulgaria

Lithuania

Austria

Kazakhstan

JLT MINING CLIENTS

Mining companies(Mining majors, Mid-tier miners, Junior miners)

Financiers(Investment Banks,

Hedge Funds)Contractors & Engineers

Traders

Private EquityHouses

• Bank of Tokyo-Mitsubishi

• BNP Paribas

• Credit Suisse

• HSBC

• ING

• Mizuho

• Rand Merchant Bank

• US EXIM

• West LB

• Glencore

• Louis Dreyfus Commodities

• Noble Group

• Barminco

• CIMIC Group

• Imdex

• Agnico Eagle

• Antamina

• Antofagasta Minerals

• Codelco

• Collahuasi

• ENAMI

• ENRC

• Impala Platinum

• Ivanhoe Mines

• Karara Mining

• Minera Carola

• Newmont Mining Corporation

• Randgold Resources

• Rio Tinto Oyu Tolgoi

• Teck Resources

We work with corporations across the following diverse industry sectors:

JLT Mining has been working with our market leading Financial Institutions team to develop new products for private equity investors as they move into the mining space.


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988 9

JLT INSURANCE PRODUCTS

JLT SERVICES

MINE LIFE CYCLE

EXPLORATION& EVALUATION

Construction Third Party Liability

Construction Material Damage / Advance Business Interruption

Project Specific Workers’ Compensation

Project Specific Professional Indemnity

Project Specific Income Protection

Construction / Mobile Plant and Equipment

Workers’ Compensation

Kidnap, Ransom and Extortion

Income Protection, Life and Health

Environmental Impairment

Corporate Recoveries




Political Risks and Political Violence

Terrorism and Sabotage

Lenders’ PRI

Directors’ and Officers’ Liability (D&O)

Construction Third Party Liability

Construction Material Damage / Advance Business Interruption

Construction Marine Cargo / Advance Business Interruption

Project Specific Workers’ Compensation


Project Specific Income Protection









Surety

Operational Third Party Liability

Operational Material Damage / Business Interruption









Reclamation Bonds

Operational Third Party Liability

Operational Material Damage / Business Interruption

Marine Charterers’ Liability









Specie for Precious Minerals and Metals

Cargo and Stock Throughput

Third Party Liability

Material Damage

Mergers & Acquistions Indemnity

Long Term D&O Liability Run-Off




Reclamation Bonds

CARE &MAINTENANCE /

CLOSUREOPERATIONS

SITESELECTION /

CONSTRUCTION

PRODUCTTO MARKET

Exploration Contract Reviews

Insurance Program Reviews

Country Risk Reports

Country Insurances Compliance Advice

Contract Insurance Clause Design

Risk Workshop

Design Risk Engineering

Insurance Program Design

Indicative Premium Calculations

Risk Consultancy

Financiers’ Due Dilligence

Fire Suppression Design Advice

Project Insurance Design

Construction Contract Reviews

Construction Risk Workshops

Advance Business Interruption Review

Site Surveys Injury Management

Contractor Enrolment Systems

Ongoing Contract Reviews

Operational Risk Workshops

Independent Risk Engineering Service and Valuation

Business Interruption Review

Insurance Program Design

Contract Reviews

Customer and Supplier Exposure Reviews

Claims Run-off Management

Care and Maintenance Plan Design

Valuation Services

PROJECTFINANCE


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OUR SERVICESJLT Mining’s Risk Consulting & Engineering team works with

clients across the project lifecycle, from pre-exploration through

to mine closure, and from a pre and post loss perspective. Our

services can be broken down into four categories:

Review: Analysing, modelling and assessing the strategies, procedures and safeguards that the company has in place both from a project and corporate risk perspective.

• Mining and industrial/process risk engineering reviews,

inspections and audits

• Risk assessment & analysis, and insurable risk reviews on a

cross-risk basis

• Resilience reviews (including Business Interruption,

Non-Damage Business Interruption, and Supply Chain

assessments)

• PML Modelling for a variety of risk exposures, including

natural hazards, environmental, and political violence.

• Mergers & Acquisition (M&A) risk reviews

• Underwriting surveys

• Due Diligence of project partners, and counterparty

inspections

• JLT Forensic – Specialist accounting with insurance

experience

• Reinsurance technical reviews

• Captive feasibility studies (plus domicile, set-up and

management if required).

Restructure: Designing new strategies for identifying and mitigating risk, including risk transfer programme design.

• Enterprise Risk Management strategy redesigns and

implementation

• Business Process/Change Improvement

• JLT Valuations – Asset reviews and labour / material / plant

& equipment cost analysis to ascertain correct asset values,

particularly during commodity price downturns

• Business Continuity Management/Crisis Management

preparation and rehearsals

• Managing Construction risk transfers to Operational risk

management

• Strategy development workshops and strategy reviews

• Risk management technology (personnel and security risks

in particular)

• Renewal data collection, analysis and administration

• Pre-loss claims consulting and claims certainty exercises.

React: Specific services to support the company in the event of a loss or if the company becomes distressed.

• Engagement and liaison with third parties ranging from

security consultants, to environmental disaster specialists,

claims consultants and insurers

• Crisis management support at headquarters

• Collateral lifelines to unlock excess collateral posted

to insurers

• JLT Forensic – Accounting specialists to manage

contentious BI claims and post loss policy redesign

• Insurance product redesign to reflect distress scenarios,

such as workforce cuts, mothballing of sites, and debt

restructuring.

Recover: Managing the aftermath of an incident or loss, and enabling the company to get back to business as soon as possible.

• PR/Reputational risk management from an internal and

external perspective

• Risk management workshops/facilitation

• Worker rehabilitation post-incident using JLT’s unique

‘Recovre’ service

• Executive reporting and post crisis project management.

In the face of heightened volatility, organisational resilience is no longer simply the domain of risk managers.

Company boards and C-Suites are now more tuned-in to risk, and these

internal stakeholders are now demanding to know what measures are in

place to identify, mitigate and transfer risks. External stakeholders – lenders,

shareholders, regulators – also are holding companies to account. Risk

managers must in many cases act as educators; helping stakeholders

understand a broad range of risks which are in a constant state of flux.

As mining companies continue to confront a range of challenges, it is vital

to understand how to proactively manage an evolving risk profile, albeit with

fewer resources. In respect of risk transfer, part of the challenge for mining

companies is how to differentiate their risks from their peers’, in order to

secure preferential premium rates and coverage enhancements.

OUR CAPABILITIES:It is JLT Mining’s objective to be the risk partner

of choice. We utilise our in-house Risk Consulting & Engineering team to help

our clients manage a range of construction, property, liability, and security risks

which reinforces risk management strategy. The output of our work also enables

JLT Mining’s brokers to achieve optimal results from the insurance markets.

The output of our services is two-fold:

• We help our clients to identify, understand and mitigate risk at project and

portfolio level, thereby minimising the frequency and severity of losses

across a range of risks.

• We use the results of our consulting and the implementation of our

recommendations to improve the quality of the risk presented to the

insurance markets. We work with risk management teams to manage

insurer risk recommendations and to set your risk apart through more

meaningful underwriting submissions.

Our consultants have significant industry experience, with a number of them

having headed the risk engineering and technical risk teams at leading mining

companies, before transitioning into the insurance industry.

RISK CONSULTING & ENGINEERING

JLT Mining’s Risk Consulting & Engineering team can provide superior risk insight to protect and enhance your business, and we look forward to the opportunity to help.

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Despite some significant mining claims, soft market conditions prevail on account of excess capacity and this is exerting

downward pressure on premium rates. JLT Mining continues to outperform our competitors to succeed in securing

aggressive rate reductions across our mining portfolio.

Since 2011 we have achieved a cumulative 61% rate reduction across our mining book for Property and Business

Interruption insurance. Meanwhile, our largest competitors have secured only cumulative rate reductions of 28% for

the same period. We continue to deliver premium reductions year on year for our clients, even in the event of a claim

occuring, whilst maintaining close relationships with insurers.

OUR PERFORMANCE

COMPOUND RATE REDUCTION (%) - JLT VERSUS MARSH

-10

-20

-30

-40

-50

0

-60

-70

2011

2011

2012 2013 2014 2015

250

200

150

100

50

0

Compound JLT Rate Reduction (%)

Commodity Metal Price Index

2012 2013 2014 2015

Rat

e R

educ

tion

(%)

Com

mod

ity Metal P

rice Index

Cop

per P

rice (US

D p

er metric ton)

Com

pou

nd J

LT P

rem

ium

Red

uctio

n (%

)

Source: JLT Mining Data and IndexMundi


Source: JLT Mining Data and Marsh Mid Year Mining Market Update

Source: JLT Mining Data

Com

pou

nd R

ate

Red

uctio

n (%

)

-10

-20

-30

-40

-50

0

-60

-70

2009 2010 2011 2012

JLT Average for US quoted brokers*

5%

7%

3.4%

1.3%

-1.5%

7% 7%

2013

3.8%

8.5%

4.3%

2014

3.8%

6%

Compound JLT Premium Reduction (%)

Copper Price (USD) per metric ton4,000

6,000

2,000

02012 2013 2014 2015

-10

-20

-30

-40

-50

0

-60

-70


Compound Marsh Rate Reduction (%)

2011 2012 2013 2014 2015

0

3,000,000,000

6,000,000,000

9,000,000,000

4,000,000

8,000,000

12,000,000

16,000,000

Values (USD)

Premium (USD)Valu

es (U

SD

) Prem

ium (U

SD

)

8,000

10,000

12,000

-61%

-28%


Commodity Metal Price Index (Index Number)

International Coal Price (USD/mt)

-10

-20

-30

-40

-50

0

-60

-70

2011 2012 2013 2014 2015

250

100

200

150

50

0

Com

pou

nd J

LT R

ate

Red

uctio

n (%

)


COMPOUND JLT RATE REDUCTION (%), COMMODITY METAL PRICE INDEX AND IRON ORE PRICES

How we differ:

• In-house: We have not outsourced our claims specialists. The claims team sits alongside our

brokers, enabling us to perform as one unified global service team for our clients.

• Market intelligence: Our claims team gather market intelligence on claims and insurer performance.

This means our brokers specifically select markets according to their claims performance record,

and our clients can benefit from peer group intelligence.

• Training: We offer claims preparation training to our clients, helping improve preparedness.

• Relationships: We maintain strong relationships with the major leaders, loss adjusters and lawyers

to help expedite the claims process and to ensure we remain market-leading.

• Leverage: Our claims team has the weight of the JLT Group brand behind it. We maintain

relationships at a senior level with all insurance markets which gives our teams clout for large

contentious claims.

• Best Practice: We value best practice and were a founding member of the insurance industry’s

Mining Insurance Group (MIG).

JLT Mining has access to a team of highly experienced claims professionals who specialise in handling, managing and negotiating claims for the mining, energy, power, and global commodity trading industries. Our clients must have confidence that the insurance policies we arrange for them are expertly structured, are written by experienced insurers with strong claims track records, and, in the event of a loss, that their broker will handle the claim efficiently, and with the optimal results.

CLAIMS CAPABILITIES

100claims specialists in London dealing with the largest and most complex claims

USD 9,315,813,795Total value of claims collected by London team since 2010

USD 4,120,996,212Total value of claims collected by London team since 2010 for clients in commodity markets (oil & gas, mining and power)

75,665 Total number of claims handled by London team in the past five years


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JLT is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. Our client proposition is built upon our deep specialist knowledge, client advocacy, tailored advice and service excellence. We place our clients first, champion independent thinking and expect to be judged on the results we deliver. JLT owns 115 offices in 40 territories with some 10,600 employees, supported by the JLT International Network, enabling us to offer risk management and employee benefit solutions in 135 countries.

ABOUT JLT GROUP

Risk & Insurance

• Advice & Consultancy

• Brokerage, placement and claims

• Access to specialist insurance products %

Employee Benefits

• Pension and retirement services

• Health and benefits investment services

• Wealth management

75%

25%

OVER 10,600 PEOPLE

REVENUES OF

USD 1.8BN

UNDERLYING PROFIT BEFORE TAX

USD 260M

MARKET CAPITALISATION

USD 2.7BN

PREMIUMS PLACED

USD 14.3BN

OVER 115 OFFICES

IN 40 COUNTRIES

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JLT Specialty Limited

The St Botolph Building 138 Houndsditch London EC3A 7AWTel +44 (0)20 7528 4000Fax +44 (0)20 7528 4500www.jltspecialty.com

Lloyd’s Broker. Authorised and regulated by the Financial Conduct Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. Registered in England No. 01536540. VAT No. 244 2321 96.

© August 2016 • 271755

CONTACTS

AUSTRIA ZVIADI VARDOSANIDZE Head of Energy Specialty Tel: +43 (5) 0404 134 Email: [email protected] KAZAKHSTAN UWE LENHARDT General Director Tel: +7 (727) 3116736 Email: [email protected] POLAND PAWEL PALUSZYNSKI General ManagerTel: +48 22 39 33 400 Email: [email protected] RUSSIA ANDREY PANOV Managing Director Tel: +7 (495) 645 4531 Email: [email protected] TURKEY TOLGA TOKMAK Deputy General Manager Tel: +90 532 645 77 70 Email: [email protected]

Documents

INTRODUCING JLT MINING - GrECo JLT … · • Antamina • Antofagasta Minerals • Codelco • Collahuasi • ENAMI • ENRC ... INTRODUCING JLT MINING 10 11 OUR SERVICES JLT Mining’s