Scope of Activity According to the Article of Association
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:
insurance services for the whole mining
operation chain including, exploration, excavation, processing, etc., in order to reduce the risk of investing in
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
all or parts of bank loans in mining
sector for mineral activities through credit insurance scheme (Payment
of resources in accordance with the governing policies.
6- Accepting the measured
reserve in mining license as a
MICO provides following services for the mining sector investors:
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.
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
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.
-Investment insurance in mining operation period
in processing of ore
mining operation (price decline, temporary operation suspension)
processing of ore (price decline, temporary operation suspension)