Natural Resources

Natural Resources

 

Sector Trends

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 Experience

AMI consultants have conducted over 70 studies of Latin America's natural resource sector since 1993 in the following segments:

Energy
Agriculture
Mining
Cogeneration
Animal Feed
Exploration
Energy Policy
Biotechnology
Industrial Metals
Exploration Equipment
Cattle & Genetics
Mining Equipment
Gas Distribution
Embryonic Technology
Mining Policy
Hydroelectric equipment
Fertilizers
Mining Services
Oil & Gas Exploration
Food ingredients
Precious Metals
Oil & Gas Services
Grains
 
Petrochemicals
Horticulture
 
Pipeline Equipment
Poultry & Pork
 
Wireline logging
Seafood & Fish
 


Case Studies


Sought After Services by the Natural Resources Sector

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.

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