Insurance for Tailings Dams and Impoundments

Highlights

  • Insurance capacity was readily available for TSFs until recently
  • Post-Brumadinho, cover has tightened and premiums have tripled
  • Mining companies should implement the Global Standard on Tailings Management

Background

According to Willis Towers Watson, insurers previously required minimal facility disclosure. Tailings exposure was absorbed into General Liability, Property or Environmental policies because no dedicated “TSF insurance” existed.

However, the January 2019 Brumadinho failure—releasing 11.7 million m³ of waste and killing 270 people—triggered a global review. Now, many operators struggle to obtain adequate cover.

Brumadinho’s Impact on Insurance

Reduced Capacity & Higher Premiums

Professor David Williams noted that in regions such as Brazil, China and parts of Africa, insurers have refused TSF cover outright. Elsewhere, limits have been cut by a third and premiums have doubled. Today’s effective cost is roughly three times higher for less protection.

“A typical $300 million coverage is now a drop in the bucket if Brumadinho-scale failure occurred.”
— Professor David Williams

Securing Cover with Technology

Quartex’s product lead explains that advanced monitoring tech can improve safety, attract insurers and lower premiums. In response to the Investor Mining & Tailings Safety Initiative and the Global Tailings Standard, Quartex has developed an integrated TSF cloud solution for compliance, monitoring, reporting and disclosure.

Key Features of the Solution

  • Real-time data integration from IoT, LiDAR, radar, drones and inspections
  • InSAR Deformation alerts for early detection of ground movement
  • Centralised repository with earth-observation visualisations
  • Automated exceedance notifications to drive proactive safety measures

FAQ: Quartex’s Dams & Tailings Solution

Quartex’s purpose-built platform gives industry, regulators and operators secure access to all TSF data:

  • View real-time metrics and receive threshold alerts
  • Monitor land movement via InSAR, LiDAR and DEM
  • Store and reference all tailings documentation centrally
  • Visualise multiple facilities on a single geospatial map
  • Track environmental, compliance and stakeholder obligations
  • Delegate tasks with reminders to ensure timely data collection
  • Generate corporate reports for ICMM, Global Tailings Portal, PRI and UNEP
  • Integrate with third-party systems and public portals

By harnessing advanced monitoring and centralised governance, mining companies can demonstrate robust safety practices and negotiate more favourable insurance terms.