HELPING MINING INVESTORS TO MITIGATE RISK
AMI delivers crucial intelligence that mining investors and operators need to measure, predict and neutralize the many forms of risk their projects face in Latin America.
Few industries in Latin America carry the historic political and social baggage associated with the mining sector. For many jurisdictions, their economic growth relies upon healthy pricing in the sector. Political careers are made and lost based upon the performance of these industries and the rents levied upon them. For investors operating in mining, there is no escaping political and reputational risk. Those risks become particularly acute during times of scarcity, be they triggered by a pricing downturn or a fiscal crisis. The result is a political battle between different levels of government and local communities, as well as unofficial stakeholders, over the spoils.
Mining companies become convenient political scapegoats when tensions arise. Throughout Latin America, royalties are disproportionately paid to central governments, little of which is empowered to local communities. As a result, much of the political risk facing the extraction industry is found locally, in isolated jurisdictions with minimal policing and ineffective governance. Community and government relations take on added importance for miners.
Explore Our Industry Analysis
regarding Latin American mining
Protection from Pitfalls
For two decades Americas Market Intelligence (AMI) has conducted studies to evaluate and mitigate risks for mining companies and mining investors. Our analysis of political risk, reputational risk and local community risk give companies a clear picture of what they’re facing, along with recommendations on how to avoid or best manage the challenges for optimum success with projects. Once a project is underway, our monitoring of local and national risk issues helps keep projects on track.
Since 1993 AMI consultants have conducted more than 200 consulting engagements of Latin America’s mining sector in the following segments:
- Precious metals
- Industrial metals
- Mining equipment
- Mining lubricants
- Mining services
- Government relations
- Community relations
- Labor relations
Review AMI case studies from our Mining practice to get a deeper sense of our capabilities.
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