When it comes to driving
investment and making
decisions on where to explore, the
world’s mining companies have
become far more cautious than one
might expect.
David Twist, a partner with
the Africa Mineral and Energy
Development Fund, says companies
are far more circumspect nowadays
when it comes to investing in
explorations.
“No corruption, investment
friendly and an easy business
environment are the kind of
countries that we look at,” he says.
“We are very Africa-focused at
present and we tend to go where
the geology is the best. But investors
have become more risk averse.”
Ken Tainton, exploration director
Africa-Eurasia for Rio Tinto, said
three considerations were taken
into account by the company before
embarking on a project.
“The first consideration is
always safety. Can we safely and
securely put people on the ground?
If the answer is no then we will
not operate there. The second
consideration is whether we can
operate ethically in compliance
with international standards of
law, and third we take the security
of the exploration tenement into
consideration. This would mean
looking at whether we can mine it
safely and securely for the necessary
time frame.”
Investors demand corruption-free business-friendly environment
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