The Inside Scoop
Services: Business Environment Analysis
Sector: Natural Resources
Challenge: Our client, a global leader in the natural resource sector grew concerned by the campaign rhetoric during a recent South American Presidential election. The eventual winner of the election began his campaign with aggressive attacks against the sector, threatening to raise rents to historic levels in light of higher commodity pricing. Dozens of other players in the industry were equally alarmed when the fiery candidate came to power. The industry banded together to negotiate a more reasonable course of change to the royalties levied by the government. Before negotiations began, our client needed to better understand the likely position of the government, both to guide their own position and to inform their board and their investors ahead of any drastic changes to their profitability outlook.
Approach: Through its affiliate in the capital, AMI conducted discreet interviews with the inner circle of advisors who was hand-picked by the newly elected President to lead the negotiations. Through that intelligence, certain assumptions could be made about the tone and direction of the government position.
Result: Armed with our intelligence, our client was able to confidently predict the likely new royalty negotiating position of the government, manage the expectations of their board and investors and help others in the industry to negotiate a viable new set of regulations.