In this Mining Coffee Chat discussion from October 6, John Price – Managing Director and founder of AMI, who first established AMI’s mining practice in 2011 – was joined by AMI’s Security Risk Advisor, Sam Logan.
The Chat focused on organized (and otherwise unorganized) criminality’s effect on the investment climate of miners across the entirety of Latin America, causing notable disruptions in Mexico, Chile, Peru, Colombia, and Brazil. As the prices of commodities rise, interest from the criminal economy has followed.
Among the key highlights of the Chat:
- Organized crime has evolved beyond the historic activities of gangs or drug-trafficking organizations. New groups are extorting the mine and the community: there’s usually an alliance between the head of that community, a lawyer who may or may not be representing the mining operator, and an employee of that mining operator. At the end of the day, the tactics employed against criminal activity cannot be restricted to one brand of criminality.
- Understanding traditional mining rights is essential to a successful mining operation. Around six years ago, mining risks transitioned from the nation to the local level. Unless a miner is focusing on local risks, they are blind to around 80% of possible risks. Above- the-ground risks can actually be very costly and damaging for the commercial success of an operation.
In addition to these main points, the Chat also focused on questions from the audience. Click below to see the full Mining Coffee Chat, including very detailed, insightful answers to audience questions from Sam and John.
Mining Coffee Chats are monthly meetings in which AMI explores important topics affecting the mining industry. The Chats are held via Zoom during the first Tuesday of every month at 11 a.m. ET (New York) time, usually featuring expert speakers and always allowing for attendees to obtain answers to the challenges that face them during COVID-19 and beyond.
If you have not already registered for Mining Coffee Chats, please click here to do so.
To find out more about AMI’s consulting work in the area of risk management for mining in different areas, please explore our recent webinar on rebuilding sustainable operations post COVID-19, case studies, our whitepaper on 7 key risks, and our analysis articles, which cover topics such as industry outlooks, political risk, operational risk, reputational risk and more.