» About » Goals Duty


Scope of Activity According to the Article of Association

Supporting the achievement of sustainable development in the mining sector and covering part or all of the possible damages arising from the failure in exploring ore and related investments through:

1-    Providing insurance  services for the whole mining operation chain  including, exploration, excavation,  processing, etc.,  in order to reduce the risk of investing in mining sector

2-    Cover and reimbursement all or part of damages on mineral activities in all stages of exploration, excavation and processing, as well as the assets used in the processes.

3-    Guarantee all or parts of bank loans   in mining sector for mineral activities through credit insurance scheme (Payment guarantee letter).

4-    Investment of resources in accordance with the governing policies.

5-    Reinsurance activities

6-    Accepting  the  measured reserve  in mining license as a collateral

MICO Services

MICO provides following services for the mining sector investors:

1.      Exploration Investment Insurance

This service provides insurance for ore exploration risks or failing to repay clients debts to the (Mainly banks) due to unsuccessful exploration, in accordance with the terms and condition of the insurance policy.

In technical terms, this is an insurance policy that targets the risk of unsuccessful exploration activities and covers the cost of operations and damages during the process of exploration starting from exploration authorization date and ends up when the exploration operations finishes and lead to getting "exploration license".

The process of issuing the policies starts with the field visit by MICO experts and based on their detailed report which is accompanied with the exploration plan. By the agreement of the client and signing the contract, insurance policy will activate.

2.     Loan repayment guarantee for mining operation and mineral processing loans

This service contains issuing a guarantee letter to the beneficiary parties (mainly banks and equipment suppliers) to guaranty the payment of the debt of clients in case of their payment failure.

Despite the fact that "Mining License" is an asset and according to the Mines act has the legal features of collateral, in practice banks are very reluctant to accept it as collateral. Therefore MICO designed the loan payment guarantee as a vehicle to tackle the issue and facilitate the financing the mining operations. The process starts with the value assessment of the mining license by MICO experts and based on the assessment and signing a contract with the client. MICO issues a guaranty letter to the bank or any other beneficiary party.

3.    Other insurance policies

-Investment  insurance in mining operation period

-Investment insurance in processing of ore

-Insurance of mining operation (price decline, temporary operation suspension)

-Insurance of processing of ore (price decline, temporary operation suspension)

-Insurance of exploration credit