Political Risk Assessment for Mining

Services

Political Risk Assessment

Challenge

Facing aggressive attacks against the natural resource sector by a newly elected president and the risk of rents rising to historic levels, the client needed to better understand the likely position of the government, both to guide their own position in negotiations and to inform their board and their investors ahead of any drastic changes to their profitability outlook.

Approach

Through its affiliate in the capital, Americas Market Intelligence (AMI) conducted discreet interviews with the inner circle of advisors who was hand-picked by the newly elected President to lead the negotiations. Through this intelligence, certain assumptions could be made about the tone and direction of the government position.

Result

AMI’s intelligence confidently foresaw the likely new royalty negotiating position of the government and the client was able to manage the expectations of their board and investors and help others in the industry to negotiate a viable new set of regulations.

Client Benefit

Client was able to predict how the new government would likely negotiate royalties and subsequently plan accordingly.

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