Minimising Mineral Project Risk - New Zealand in a Global Context

Mining ventures are essentially risky businesses. Explorers and project developers (plus their investors and financiers) attempt to minimise the risks involved or at least manage them. Core considerations are the obvious technical and commercial risks, but the socio-political system and regulatory environment in which the project will operate can be more important. Successful mineral investments in a country depend upon obtaining realistic and reliable technical results in a country that provides certainty, to gain and maintain investor confidence in a project. Brief commentary is provided on the usefulness of professional accreditation and ethics plus other specific reporting codes (eg JORC/VALMIN Codes) in reducing risks by reinforcing high technical competence and reputable individual professional behaviour (particularly in the context of currently perceived high corruption levels in so many countries). These various risk components are reviewed, especially in a global context, to showcase New ZealandÆs current position. Successful projects are those which provide investors with credible and reliable optimal results in less volatile environments because investors/lenders hate uncertainty and surprises even more.