Mining sector services

Mining companies face an array of risks when entering or operating in emerging markets, especially in Africa and the Middle East. New and ongoing mining projects often have long development timelines, require major capital and generate extensive socio-economic and political effects. In emerging markets, these factors – combined with complicated domestic regulation, unpredictable government decision-making and complex social relations – have the potential to erode profitability and damage corporate reputations.

Menas Associates has a long history of assisting extractive industries in emerging markets and provide mining companies with a range of tailor-made services to help manage above-ground risks throughout the investment cycle.

• Market entry: However prospective a country's geology, failure to take early and full account of political, social and operational risks can cause mining companies to overlook better opportunities elsewhere, engage in unrealistic project scheduling and design, or aggravate certain risks once operations begin. Our situational analysis reports are designed to enable mining companies grasp the key political, social and operational dynamics they will face.
• Business Intelligence: In emerging markets, government decision-making processes affecting the mining industry (i.e. licence awards, acquisition approvals, legislative changes) are often opaque and vulnerable to the influence of unseen or hidden interests. Using our extensive in-country contacts, our consultants cast light on crucial decision-making processes and illuminate the influence of key interest groups, whether overt or concealed.
• Political and Social Risk Consulting: In the face of increasing resource nationalism and mounting international scrutiny of extractive industries (among other issues), the effective management of political and social risk is becoming an ever greater challenge for extractives companies. Our risk assessments – commissioned at final investment-decision, pre-acquisition or operational phases – provide our clients with a clearly presented view of the risk profile of their operations and a means of prioritizing the management of risks most likely to undermine their business objectives.
• Stakeholder Assessment: Beyond their immediate physical footprint, mining projects typically affect the lives of numerous local interest groups, including public officials, local business interests, unions, competitors and local communities. Stakeholder assessments are designed to help our clients understand and engage with the full range of local stakeholders. Some see a benefit, some see an opportunity, and some see a threat. Drawing on deep local knowledge, our stakeholder assessments are designed to assist mining companies in harnessing opportunities, managing threats and reducing risks.
• Strategic Advice: Given the stakes involved, no amount of political and social risk management can entirely prevent the possibility that a mining company will find itself in conflict with the government, its host community or other project stakeholders. A clear understanding of the dynamics behind such a dispute, the introduction of new legislation or a political crisis typically enables an organization to make more coherent and responsive decisions in the face of seemingly unpredictable developments. Menas Associates offers flexible 'retainer' arrangements tailored to each individual client's interests, to provide insight and advice as required.