AFRICAN MINING INDABA: Growing geopolitical tension will make it harder for companies to sit on the fence, says risk advisory firm boss

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A protracted Russia-Ukraine war and rising China tension with the Global West will force mining companies to make tough choices, according to the CEO of a global risk advisory firm.

The Russia-Ukraine war had also increased risk exposure for non-Russian companies operating in states such as Angola, Burkina Faso, Central African Republic, Guinea, Sudan and Zimbabwe, where Russia had significant concessions and an active diplomatic presence.

Truesdale said governments and the public were watching and judging how companies tried to navigate this faultline. Even for an industry which deeply appreciated risk, there were no easy answers. Some African companies were discreetly establishing commercial partnerships with both the US and China to try to have it both ways because of the greater competition for African minerals and broader interest in the continent’s development.

And so mining executives should understand that being too aggressive or too cautious in their decisions could increase their risk in the event of a political or economic crisis in the countries where they operate.

 

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