The mining industry in Africa is encountering increasing challenges, with incidents like tax disputes, civil unrest, and geopolitical tensions impacting operations. While Africa's investment risk index remains relatively lower compared to other regions, the global trend towards heightened risk is undeniable. Resource nationalism, driven by the need for secure access to critical minerals, is intensifying worldwide, leading to tighter control over strategic resources by governments.
The mining world is preparing to converge on Cape Town next week after what has been a difficult few months for resources companies operating in certain parts of the continent.Shockwaves reverberated through the sector late last year after Resolute Mining CEO Terry Holohan and two other senior company executives were detained in Mali over a tax dispute.The gold miner agreed to pay the government US$160 million to secure the release of its employees.
Sub Sahara Africa has seen the biggest expansion of areas subject to conflict."A conflict corridor centred around the Sahel and East Africa has doubled in size since the start of 2021," Verisk Maplecroft, head of EMEA, global risk insight Hugo Brennan told a recent webinar."There is no one single cause of this. Islamist insurgency in the Sahelian states of Mali, Burkina Faso and Niger is distinct from the civil war in Sudan, for example.
Mining MINING AFRICA RISKS RESOURCE NATIONALISM GLOBAL TRENDS
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