Security measures outlined aimed at stemming the growing problem of employee theft at precious metals mines

Introduction Loss prevention programs have become absolutely necessary at any precious metals producing property. In the past eight years, one security company, specializing in precious metals mine, mill, and refinery security, has been involved in investigations at gold and silver properties that have resulted in 62 criminal convictions. Of those, all but five were employees, former employees, contract employees, or vendors for the company. Several of the cases involved losses of more than $1 million. The largest number of employees prosecuted from one investigation was 17. A recent case resulted in 12 criminal prosecutions and, several years ago, one involved an additional 12 criminal prosecutions. The most serious theft problem facing precious metals mines is employee theft. Is is estimated that 95% of the dollar losses from precious metals thefts can be attributed to employees. This does not mean there is no robbery or burglary exposure. There have been successful robberies, burglaries, and extortion cases. Most mining companies, though, provide better protection against external theft than from internal theft. That is one reason employee theft has reached epidemic proportions. Any product can be stolen No product is immune to theft. Precious metals investigations have involved the theft of high grade ore, dore, bullion, concentrates, precipitates, loaded steel wool, loaded carbon, and sump cleanup. Over a period of several years, this author's security agency has documented the theft of more than 22.5 t (25 st) of load carbon. Most mining companies do not protect the number one adsorption tank or the loaded carbon screens, which frequently leads to losses. Precipitates, electrowinning tank sludge, sump material, and concentrates are usually afforded lit¬tle protection because mine management believes it is too difficult to process. There are custom mills throughout the United States that will process any form of precious metals with no questions asked. This has become a particular problem since the certificate of ownership requirement has been eliminated by most states. Due to the large number of gold mines coming on line, many mine managers are being recruited from base metal mines, where primary security problems involve the theft of tools and company property. These managers do not understand the unique security problems associated with precious metals production. Consequently, they usually forego many security needs in the interest of economy. Unfortunately, numerous cases are on file where mining companies have suffered large losses because their physical security and their security procedures were not adequately addressed when the property was in its planning stages. Properly designed and appropriate equipment The most economical time to plan alarm/closed-circuit televi-