The legal battle between Newmont Corporation and a group of international insurers over coverage related to Newmont’s mining operations in Ghana continues to advance in federal court, with the parties now bound by a detailed confidentiality agreement governing the disclosure of sensitive information during the pretrial phase.
The case, pending in the Southern District of New York, pits Newmont Corporation and its subsidiary, Newmont Ghana Gold Limited, against several major insurance carriers, including American International Group UK Limited (AIG UK), Munich Re, Swiss Re, Zurich American, Starr International, and several Lloyd’s underwriters. Newmont is seeking coverage under a suite of insurance policies related to its mining operations in Ghana.
The troubled miner has seen its share price fall to near five-year lows, is planning asset sales and has cut its dividend. The giant miner is reportedly claiming in excess of $200 million for business interruption over a machine part that failed.
While specific details of the claims have not yet been publicly adjudicated, the dispute appears to center on the insurers’ refusal to indemnify or defend Newmont for certain losses allegedly incurred at its Ghana operations. The policies in question likely include complex terms regarding coverage for property damage, business interruption, and possibly political risk, though these specifics have not yet been addressed in any substantive ruling.
On March 12, Judge Margaret M. Garnett approved a stipulated Modified Protective Order, setting strict rules on how confidential documents and information will be handled as the case moves forward.
The protective order covers discovery materials that include previously undisclosed financial information, strategic plans, ownership details of nonpublic entities, proprietary operational data, and other sensitive materials. Both parties and third parties providing discovery are bound by the order.
Key terms include:
Though procedural, the protective order underscores the high-stakes nature of the litigation. Newmont, one of the world’s largest gold mining companies, is likely to produce extensive internal records about its financial operations and strategy in Ghana, as well as communications with insurers. The confidentiality provisions reflect the parties’ mutual interest in shielding sensitive business information from public disclosure while the dispute is litigated.
The broader legal question - whether the defendant insurers are required to cover Newmont’s claimed losses - remains unresolved. The policies at issue may involve complex exclusions, conditions precedent, and notice provisions typical of large-scale commercial insurance arrangements. However, no substantive ruling on policy interpretation or liability has yet been issued.
The case highlights the increasingly global nature of commercial insurance disputes, with multinational corporations and international insurers turning to US courts to resolve conflicts over coverage for operations across multiple jurisdictions.
The litigation is ongoing, and trial proceedings have not yet been scheduled.
