Historically high commodities prices may be the new normal, underpinned by strong Chinese demand. Few regions benefit more from this trend than Latin America, a world class producer of metals, food staples, oil & gas. Natural resources have delivered wealth to the region but also envy. Stronger currencies in LatAm are crushing the uncompetitive manufacturing sector. Separately, poverty still abounds in Latin America so populist politics are inevitable and given the historical baggage associated with mining, large agricultural land holdings and more recently nationalized energy companies, it is often politically expedient to raise royalties on extraction industries. Higher royalties and political risk is deeply at odds with a globalized industry discovering deposits in Africa, Middle Asia, and the Artic, not to mention traditional safe havens like Australia and Canada.
AMI consultants have conducted over 70 studies of Latin America's natural resource sector since 1993 in the following segments:
Sought After Services by the Natural ResourcesSector
Business Climate Analysis – The viability of a mining or energy investment often hinges on regulatory policies and their ability to stand the test of time. Gauging the business climate goes beyond federal extraction rights and considers the local political dynamic, labor militancy, and the scrupulousness of local NGOs and how they engage with natural resource companies.
Monitoring Business Climate – Natural Resource companies cannot rest on their heels once they have negotiated their royalty program but must in fact continue to monitor any potential threats to the regulatory and operational status quo.