Monday, 31 August 2009
State-run copper company CODELCO will be awarded a cumulative insurance claim of over US$62 million for three incidents that occurred in the companyâ€™s Northern Division in 2006 and 2007.
The Superintendent of Insurance and Securities has ordered insurance companies La Interamericana, Generales S.A, and Penta Security to pay CODELCO a total of US$62,513,937.
The Superintendent said that the three incidents claimed by CODELCO â€“ a collapsed wall in the Chuquicamata mine, a fire in the Radomiro Tomic electric station, and later a machinery breakdown also in Radomiro Tomic â€“ had â€œdistinct meaning for the business,â€ and that the amount to be paid was a â€œfair appraisement of the compensable damages.â€
CODELCO said the actual damages were higher, in the realm of US$100 million, counting reparations paid to workers and technical damages, but that the numbers rose as high as US$1 billion when accounting for the potential value lost in the Chuquicamata collapse when they lost use of the tunnel.
This news came on the heels of a similar insurance payout in Australia, where Melbourne-based mining company Newcrest won a US$30 million insurance claim from an explosion in Varanus Island, which supplies gas to one of the companyâ€™s gold mines. The total cost of the accident to Newcrest fell from US$38.6 million to US$8.6 million, and the company reported a full-year profit of almost half a billion dollars, significantly better than analysts had predicted.
CODELCO reported US$722 million in earnings in the first half of 2009, 82 percent less than the corresponding dates from 2008, despite a 16 percent increase in production.
SOURCES: LA TERCERA, THE AUSTRALIAN
By Daniel Zarchy (Â firstname.lastname@example.org)