A mix of political populism, higher commodity prices and the expectation electri...
LONDON - A mix of political populism, higher commodity prices and the expectation electrification will spur demand for some raw materials has led resource-holding governments to change the rules for miners operating in their countries.
In Africa, Tanzania, regarded as an extreme example, turned on the miners after President John Magufuli swept to power in late 2015 pledging to secure a bigger share of the country’s natural resource wealth. Democratic Republic of Congo in June last year signed off regulations to implement its new mining code that raised royalties and taxes.
The biggest listed miners say they are focusing their exploration in countries with low political risk. Spending was highest last year in countries considered mining-friendly, such as the United States and Ecuador, which is welcoming Western explorers into its copper prospects as it seeks to diversify from oil.WHAT CAN COMPANIES DO TO PROTECT THEMSELVES?
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