Cunningham Lindsey respond to mine sites affected by flooding in Australia

11 Jan 11

Significant rainfall over an extended period during December 2010 and continuing through January 2011, has caused massive flooding in many areas of Central
and South Eastern Queensland. This unprecedented weather event continues to seriously disrupt business throughout the state, with open cast and underground
coal mining activity and related service industries particularly hard hit.

Flood waters throughout the state are still high in many areas and more heavy rain is forecast in coming weeks which will compound current issues and potentially cause further losses. As a result of extensive damage to infrastructure throughout the State, and the continuing disruption to major transport routes, access to many locations, particularly remote mine sites, remains restricted. Many businesses affected have yet to determine the full nature and extent of damage to property and the actions that will be required to return to normal business activity.

Cunningham Lindsey's major loss team in Australia is currently assisting with claim adjustment and loss mitigation activity on individual loss assignments at open cast and underground mine sites affected by flooding. Although some initial site visits have been possible, mainly via light aircraft, given the situation on the ground with access difficult and damage not yet clear, it is not anticipated that full inspections will be completed until the flood waters have receded. In some cases this may take several weeks.

With many of the flood affected mines, it is anticipated that there will be significant issues relating to denial of access as well as the disruption to transportation which both have potential impacts when assessing business interruption standards. The effects of the wide area damage will also need careful consideration. The availability of pumping equipment is also an issue given the scale and number of open pits affected.

Our experienced major loss team includes specialist adjusters in Australia and from Cunningham Lindsey's Global Mining Specialist Practice Group in the region. Our team has significant experience in major and complex losses particularly in the mining industry and we are also working closely with external experts such as forensic accountants and engineers to develop and implement detailed loss management plans for each loss assignment.

For further information or assistance please contact the following:

Stephen Hope
Director, Special Risks - Incident Leader, Australia
Email: stephen.hope@cl-au.com
Tel: +61 (0)3 9684 3069
Mobile: +61 (0)421 614 278

Denis Smith
Global Leader, Mining Specialist Practice Group
Email: dsmith@mining-cl.com
Tel: +1 604 632 9903
Mobile: +1 778 668 4744

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