PERTH (miningweekly.com) – Copper miner Aditya Birla on Thursday confirmed that the sinkhole incident at its Nifty mine, in Western Australia, was not covered under its insurance.
Earlier this month, the insurer’s loss adjuster claimed that the land and mine workings were not ‘insured property’ under the company’s policy, and that certain exclusions under the policy would apply to the circumstances surrounding the incident.
The sinkhole was discovered at the Nifty operation in March this year, prompting the state government to issue a notice prohibiting mine operations on site. Operations were, however, allowed to resume in July, following two rounds of probe drilling at the mine, to ensure that the operation was safe.
Aditya Birla told shareholders on Thursday that the loss adjuster’s report appeared to be justified, which meant that the company could not claim indemnity for losses resulting from the sinkhole.