As mining projects multiply across Africa, driven by the surge in gold prices and the race for strategic metals, mining operators are faced with diverse challenges, unique to each country.
Below are three of the most common issues and how OLEA helps clients navigate them effectively.
1. Government approval and social licence to operate
Securing the necessary mining licences and environmental permits can be a bureaucratic and time-consuming process. But beyond formal approvals, mining companies must also earn and maintain the ‘social licence’ to operate - the ongoing support of local communities.
A common source of tension arises when community expectations around post-construction employment are far higher than those the project can realistically offer. Without proactive community engagement, these misalignments can lead to unrest and operational disruptions.
Local leadership, meaningful impact
At OLEA, we believe that true insight comes from being part of the community. That’s why every one of our offices is led by senior local management which ensures:
• A deep understanding of local dynamics and regulatory environments
• Strong relationships with communities
• More effective navigation of social, political and operational challenges
Supporting workforce wellbeing and community trust
This leadership and integration, combined with our expertise in health and employee benefits, enables us to support the implementation of health insurance schemes or self-funding solutions.
In the event of a workplace accident, our dedicated team ensures efficient and transparent claims’ management. This protects employees, eases tensions and strengthens support for the project.
2. Financing challenges linked to insurer credit ratings
Many banks and lenders require insurance to be placed with carriers that hold a minimum credit rating, typically the Standard & Poor's (S&P) ‘A’. However, mining projects are often located in countries with sovereign ratings of S&P ‘BB’ or lower, which limits the ability of insurers to meet these criteria.
This challenge is further compounded by local regulations that require insurance to be placed with locally licensed insurers, whose ratings are generally capped by their home-country sovereign rating.
How OLEA supports you
We understand the financing requirements set by banks. Our specialist mining team, in collaboration with our local offices, designs insurance programs that are fully compliant, financially viable and bankable even in jurisdictions with rating constraints.
3. Logistics and transport risks
Transporting construction equipment, raw materials and personnel to remote mining sites and moving finished products to ports or airports can present significant challenges. Common risks include marine damage, pilferage and delays in transit.
OLEA supports its clients with tailored insurance solutions and engaging with experts to reduce claim frequency and overall loss costs.
For instance, we coordinate the appointment of a marine surveyor to oversee the loading of project cargo. It ensures proper stowage and minimises the risk of damage during transit. Where feasible, we negotiate with insurers to cover the costs of these preventative services.
Case study: Delivering value through risk insight
An independent mining company operating in a high security-risk region, with limited resources, turned to OLEA during its construction phase for Property Damage and Business Interruption coverage, as well as a Bullion policy for the storage and transportation of gold.
Our local teams organised a risk survey in collaboration with a South African firm specialising in site security. This enabled a detailed assessment and the implementation of the necessary recommendations to secure policy underwriting.
Over the course of a year, we developed a tailored insurance programme that met the client’s exact specifications. Thanks to its strong commitment to risk management, we secured optimised and fully tailored conditions.
OLEA’s Presence
OLEA supports its mining clients across Côte d’Ivoire, South Africa, Tanzania, Mali, Burkina Faso, Ghana, Gabon, Guinea and beyond.
To stay close to the market and its developments, our teams attended the Down Under Mining Event in Perth in early September.
For more information or to discuss your mining project, please contact:
Adrian Read, Mining specialist, mining@olea.africa