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COUNTRY RISK ASSESSMENT
Our work in this area
is customized to the client's requirements. Typically, however, the client
is seeking (a) an assessment of the country risk either for new mining ventures;
a joint venture with an existing in country mining operation or a development
project, or (c) general advice on a country entry strategy. Thus, our clients'
interests range from investment in grass roots projects to acquiring existing
operating properties.
As a general rule, we do this work in conjunction with a local consultant
indigenous to the country who functions as one of our associates. Typically,
at the outset of the work we obtain and review copies of the key regulations
and laws, particularly the most recently enacted mining laws.
Frequently our clients wish us to comment on the following key mining specific
risks:
1. Mining Law
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Security of land tenure. |
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Right of conversion of exploration permit through to mining concession. |
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Royalties and other mining related taxes. |
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Tax holidays and other mining related taxes. |
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Regulations, bureaucracy (consistent, efficient, discretionary powers, transparency). |
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Legal norms and institutions for dealing with mineral related legal issues. |
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Tailings disposal regulations, sub sea tailings disposal. |
2. Foreign
Investment Laws And Regulations
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Investment protection; risk of appropriation, nationalization. |
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Levels of required local participation, ownership in mineral projects. |
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Import duties on mining capital equipment. |
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Import duties on mining and mineral processing consumables. |
3. Political
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Mineral policy. |
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Level of support for the resource industry. |
4. Social
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Acceptance, support for mining and foreign ownership of resource extraction industry. |
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Major social issues and their likely impact on a foreign mining company. |
