Factors to be Considered in Assessing Investment Risk in the Mining Industry - A Comparison of New Zealand with Six Competitors

Mining is a fundamental activity on which modern society and the world's economy are entirely dependent. Mining investors, large and small, invest on an international scale, frequently being active in several countries.   Prior to committing investment to new countries, the prudent investor will consider the risk involved by analysing a number of physical, financial, administrative and political parameters that impact on the potential financial returns it is seeking. This paper considers these risk factors in relationship to New Zealand and six competitor countries. The conclusion is that for reasons largely within the control of our politicians, New Zealand is a high risk country for mining investors.