Risk Management Important In Mining

The mining industry has indeed gone global. International minerals producers are spending big money to move into countries that were off limits a few years ago. Due mostly to political reasons, these countries' huge mineral deposits - worth billions of dollars - were locked up and mining companies could only sit on the side and wonder "what if." Now much of the world is going the free market route. Once closed countries and developing nations are rewriting their mining and tax laws hoping to attract foreign investment to develop their natural resources. And big businesses - mining companies included - are lining up to get their share. But with new opportunities come new risks. While emerging nations are slowly accepting the free market concept and the privatization that goes along with it, many remain plagued with political instability and violence. Even developed nations carry their unique risks. Some of these include inadequate or contradictory legal and regulatory infrastructures, political patronage and outright corruption. So companies hoping to expand into new regions of the world must do more than examine the market. They must study the political stability and structure of a country, as well as its tax and environmental laws. And they must guarantee the safety of their employees. Control Risks Group is an international management consulting company that assists companies preparing to move into a new country. It employs about 225 people in 14 offices throughout the world. Control Risks personnel include lawyers, bankers and former law enforcement officers and intelligence people. The company held a one-day seminar in Washington, DC to update some of its clients on the state of affairs in various regions of the world. The seminar also covered extortion, corruption and product diversion. About 175 people attended the seminar. Speakers included Control Risks' operators, analysts and investigators. Here is a summary of what some of those people had to say.