LatAm miners identify political uncertainty, country risk as biggest threats

After navigating the COVID-19 environment last year, mining companies in Latin America are bracing for challenges in the post-pandemic economy, especially political and regulatory risks. 

BNamericas’ Mining Survey 2021 was carried out between May 24 and June 21, finding that 45% of respondents see political and legal uncertainty as the biggest threat over the next 12 months. For another 30% increased country risks and resource nationalism represent the biggest risks. 

To watch the webinar, click here.

The figures differ greatly from the 2020 survey, when a combined 38% of respondents identified these risks as paramount and 31% worried about more coronavirus waves.

This year’s concerns about political risks and nationalism are closely linked to the mining segment’s solid performance during the pandemic. Many governments are looking to tax the sector more to finance social programs.

In addition, political risks are seen as intensifying amid social processes underway in Chile and Peru, key markets for most survey respondents. Once considered among the safest mining jurisdictions in Latin America, the status quo was upended over the last year or two in both. 

Stakeholders recognized communication must improve everywhere to highlight the social benefits mining brings. 

BNamericas mining editor Laura Superneau discussed the results of the survey at a webinar with the president of Brazilian mining association Ibram, Flávio Penido, the president of Chilean mining society Sonami, Diego Hernández, and Víctor Gobitz, the president of the Peru’s Mining Engineers Institute, IIMP.

To watch the webinar, click here.