For global mining companies, effectively managing geopolitical risk is a strategic imperative as cross-border expansion brings them into new markets. In some cases, ore bodies are located in troubled or developing markets where considerable cultural, infrastructure, security or technology challenges must be met. At the same time, population growth, especially in Asia, is creating new demand for mineral commodities and ore bodies. Sufficient supply must be in place with supporting infrastructure and distribution to meet future demand.
Markets of particular interest to mining companies who are seeking to grow are Russia, the countries of the former Soviet Union, much of Africa, as well as parts of Central and South America. In terms of anticipating future demand and getting into position ahead of competitors, China and India are of particular interest.
How PwC can help you
PricewaterhouseCoopers and Eurasia Group have brought together a team of specialists who developed a Political Risk Assessment (PRA) diagnostic and monitoring methodology which enables companies to isolate and assess the contribution of political risk to their overall risk profile. This allows mining companies to manage these risks, and identify and capitalise on unexploited opportunities.
Leveraging PwC's global network is a significant competitive advantage for our clients as they manage geopolitical risks. Our industry specialists on the ground understand both the client's business and the dynamics of doing business in a territory targeted for expansion. For example, our tax specialists help companies balance the tax opportunities and risks in a new reporting location to manage the client's overall effective tax rate changes proactively.
