Case Study: Mines & Minerals Rights

The development

We were contacted to provide insurance coverage for a section of a proposed development that had a mines and minerals registration held by the Church Commissioners.

Even though there were no planning objections and the site seemed to be depleted of any valuable minerals, the developers were worried that the Church might seek financial compensation in the future, leading to delays and potential financial loss. After reviewing all the information, a customised mines and minerals policy was created to mitigate any potential losses.

The case

The site was intended for a development of up to 29 residential units and 3 commercial units, following planning permission granted after the Commencement Date. The application had already been submitted, and the consultation period ended without any significant objections.

Developers were aware that part of the proposed development area was also subject to a separate registration by the Church Commissioners, which was a mines and minerals title reservation.

Upon investigation, it appeared that the minerals were likely registered as part of a broader effort by the rights owner before the October 2013 deadline under the Land Registration Act 2002.

This was likely done to fully protect any overriding interests that might have been lost if not registered before the deadline.

While the title registration was probably done to safeguard their interests, it was unlikely intended for future mining activities.

However, they have previously leveraged their mining and mineral rights interests in development sites to obtain financial compensation.

The solution

Current case law defines a mineral as something not part of the ordinary soil composition and whose presence is unusual. A Mines and Minerals policy would offer protection against financial loss from damages or compensation payments, loss of market value, and other related costs and expenses.

The outcome

The Insured feared the Church Commissioners might seek compensation, risking the development.

We assessed the mining likelihood as low, and the Church would struggle to prove loss in court.

A tailored policy was issued without excess, enabling the development to proceed smoothly.

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