Hogan Lovells 2024 Election Impact and Congressional Outlook Report
The mining sector is playing, and will continue to play, an essential role in the energy transition. As demand for critical metals and minerals continues to intensify, a significant increase in foreign investment is likely to occur in the coming decades, with over US$1.7 trillion in investment required to help the transition to clean energy. Demand for precious metals also remains strong, with strong industrial demand playing a significant role in price increases over the course of 2023.
As investment increases, it is important for mining investors to ensure that they take steps to mitigate any political risk when they enter into long-term, capital-intensive projects abroad.
Mining investments tend to involve a significant commitment of capital with long-term profit horizons. This can make them particularly susceptible to various types of political risk, such as:
resource nationalism;
environmental regulation; and
the increased politicization of mining projects.
Our team has gathered a checklist with mining investors in mind to provide a preliminary assessment of the availability of investment protection and what to do in the event that a dispute arises in Tanzania.
Authored by Markus Burgstaller, Fayaz Bhojani, Scott Macpherson, Alyshah Bharwani, and Eden Jardine.