HELPING INVESTORS TO MITIGATE RISK

AMI delivers crucial intelligence that mining, energy and infrastructure investors and operators need to measure, predict and neutralize the many forms of risk their projects face in Latin America.

Inherent Challenges

Few industries carry the historic political and social baggage associated with the mining and energy sectors in Latin America. The region’s economic growth and investment 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 or energy, there is no escaping political and reputational risk. Those risks become particularly acute during a pricing downturn, when royalties drop and projects are cancelled far faster than host governments can curtail fiscal spending. The result is a political battle (between different levels of government and local communities) over shrinking spoils.

The mining and energy 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 and energy companies.

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Review AMI case studies from our Natural Resources and Infrastructure practice to get a deeper sense of our capabilities.

Roadblocks versus Building Blocks

Infrastructure projects in Latin America can raise similar issues with local communities when road, bridge, electricity generation or other infrastructure projects are perceived to threaten resources that those communities cherish. Without a clear, comprehensive understanding of the needs and fears of local communities and a constructive dialogue on those issues, construction projects can quickly come under attack in the form of local protests, politicized red tape, onerous corruption or political obstruction.

Protection from Pitfalls

For decades Americas Market Intelligence (AMI) has conducted studies to evaluate and mitigate risks for both mining/energy companies and infrastructure-building firms in Latin America. 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 natural resource sector in the following segments:

Energy
  • Cogeneration
  • Energy Policy
  • Exploration Equipment
  • Gas Distribution
  • Hydroelectric equipment
  • Oil & Gas Exploration
  • Oil & Gas Services
  • Petrochemicals
  • Pipeline Equipment

 

Mining
  • Coal
  • Precious metals
  • Industrials
  • Mining equipment
  • Mining lubricants
  • Mining services
  • Government relations
  • Community relations
  • Labor relations

 

Infrastructure
  • Road construction
  • Telecommunications
  • Dams

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