In the first four months of this year alone, kidnapping incidents have touched Torex Gold Resources (TSX: TGX) and Goldcorp (TSX: G; NYSE: GG) in Mexico’s Guerrero state, and Pan African Minerals’ Tambao manganese mine in Burkina Faso.
The headlines have been alarming for mining companies and for investors, especially since many kidnapping incidents are unreported.
“For every incident that you see in the press, there are numerous that never make it to the light of day,” says Chris Arehart, global product manager for kidnap and ransom and crime insurance at Chubb Insurance Group.
Mining companies are uniquely exposed to kidnapping risks because they often operate in remote areas, in countries with low political stability, and attract attention by bringing in big equipment and hiring a lot of locals.
The risks vary from country to country and even from region to region within countries. But kidnappings are much more common in countries with low political stability, where law enforcement is corrupt, inept, ill trained or underfunded, and where the judicial system may also be corrupt, and laws not as stringent.
Read the complete article at NorthernMiner.com/news/kidnappings