Out of the comfort zone: Quantifying country risk for foreign mining project investment feasibility

Mining corporations have spread their operations worldwide in the last few decades. The reason behind widening operations geographically can be seen as it being part of a risk diversification strategy. Given that the technical, financial and social risks are high, favorable deposits, taxation regimes and legislative frameworks create incentives for international mining operations. On the other hand, international mining activities add the risks of permitting, investing, operating and decommissioning to the corporations. These risks could emerge from defaulting, corruption, resource nationalism, social license to operate, and political and legislative uncertainties and instabilities.