IT’S TIME TO THINK ABOUT BOOSTING MINE SECURITY
Mine safety article by Harold Hough  

            Have you tightened your mine security recently?  If not, you might consider having a security audit done.  With gold and silver at historical highs, mines are becoming an attractive target for thieves.  Those mines that ignore the issue put their profits and employees at risk.
            Dave Erchull, Vice President of Global Risk Partners warns that even though mines in North America don’t face the mine security problems of those in Central and South America, high commodity prices make them more likely targets today.  Global Risk Partners handles mine security issues throughout the Americas and Erchull, a former United States Marine Corps Officer has handled mine security in areas where even driving to work poses a major risk.
            Companies like Global Risk Partners perform risk assessments that highlight vulnerabilities at mining operations.  In a Central or South American country, they frequently look at security for valuable commodities like cooking oil or truck repair parts.  They also evaluate transportation arrangements for expatriates who may have to travel from a secure office in a major city to a remote mining site that is surrounded by outlaws.
            But just because cooking oil theft and ambushes on the Interstate are uncommon in North America doesn’t mean that the mines are immune to theft.  Erchull notes that often the mine security officer is so involved with personal matters like keeping current with personnel security reviews that he doesn’t have time to really look at the vulnerabilities of the mine.  The result is that security practices that were adequate when gold was only worth $250 an ounce are clearly out of date.  One 1,000 ounce gold bar, for instance is now worth about $1.5 million.  Even smaller amounts of dore bars or concentrate must be guarded as never before.
            Security is less of a problem during transportation.  Armored car robberies are less frequent in the United States than in the Third World because armored cars frequently move money from the Federal Reserve and a robbery of an armored car moving Federal Reserve money immediately becomes a federal offense.
            However, many North American mines are still vulnerable in two areas – storage and loading.  North American mines have very lax perimeter security, which allows criminals to enter the property and get close to areas where the precious metals are stored and loaded.  “Mines are often open and outsiders are often allowed in,” Erchull warns.  “You are not there as a tourist attraction.”
            The threat isn’t only to the mine’s product.  An armed robbery that takes place during the work day is a threat to the employees.  And, the prospect of several million dollars of gold can tempt many hardened criminals
            The key to reducing the security risk is to look at how the mine is keeping the product safe, controlling access to the product, maintaining good camera coverage, and installing an adequate alarm system.  However, there are no “cookie cutter” answers, Erchull warns.  Solutions must be customized based on several factors like mine site, the product, what level of refining is done on site, and remoteness.
            Security needs also change as the mine evolves.  Increased production means more gold and silver may be stored on site.  Even new construction, additions to the mining property, and the opening of new ore deposits can have an impact on security practices.  Yet, rarely does a mine consider new security practices as a high priority.
            Obviously, one of the biggest threats is internal theft.  And, that doesn’t just mean theft in the storage area.  Just like the “high graders” of a century ago, a worker can steal a lot of money by secreting a small amount of gold on his person.  And, with the high gold prices, a piece of gold the size of a thumbnail is worth about $100.
            While background checks can stop some of this theft, it’s also important to prevent temptation by making sure that no one mine worker is left with the product.  Teams of two or three miners make it harder for causal theft.
            Unfortunately, many mines think of outside security assessments and additional spending on security as additional costs.  As a result, Erchull notes that most mines come to their company after an incident that has cost them money.  He prefers to think of security not as a cost as much as investment.  And, with gold and silver prices as high as they are, security is one investment that has very high rate of return.

The website for Global Security Partners is www.global-risk.com