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
extensive socio-economic and political effects. In emerging markets, these
combined with complicated domestic regulation, unpredictable government
decision-making and complex social relations – have the potential to erode
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
companies to overlook better opportunities elsewhere, engage in unrealistic
project scheduling and design, or aggravate certain risks once operations
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
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
an ever greater challenge for extractives companies. Our risk assessments –
commissioned at final investment-decision, pre-acquisition or operational
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,
public officials, local business interests, unions, competitors and local
communities. Stakeholder assessments are designed to help our clients
engage with the full range of local stakeholders. Some see a benefit, some see
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
will find itself in conflict with the government, its host community or other
project stakeholders. A clear understanding of the dynamics behind such a
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
arrangements tailored to each individual client's interests, to provide insight
advice as required.