{"id":1140116,"date":"2019-09-24T16:30:31","date_gmt":"2019-09-24T21:30:31","guid":{"rendered":"https:\/\/www.mining.com\/?p=1002757"},"modified":"2019-09-24T16:30:31","modified_gmt":"2019-09-24T21:30:31","slug":"rising-resource-nationalism-in-africa-ups-stakes-for-miners-report","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1140116","title":{"rendered":"Rising resource nationalism in Africa ups stakes for miners \u2014 report"},"content":{"rendered":"<p>Resource nationalism in mining jurisdictions in Africa is set to increase, but the volatility will fall in higher risk countries,&nbsp;a new report by global&nbsp;consultancy&nbsp;Verisk&nbsp;Maplecroft&nbsp;finds.&nbsp;&nbsp;<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Verisk\u00a0Maplecroft\u2019s\u00a0 Resource Nationalism Index (RNI) serves as an objective barometer of current and future expropriation risks in the mining sector.\u00a0\u00a0<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p> Tanzania is the biggest mover in the last three years, dropping from\u00a0\u2018medium\u2019\u00a0to\u00a0\u2018extreme\u2019\u00a0risk\u00a0\u00a0 <\/p>\n<p><cite>Verisk Maplecroft<\/cite><\/p><\/blockquote>\n<\/figure>\n<p>According to Verisk\u2019s latest&nbsp;release of its 2019-Q3&nbsp;dataset,&nbsp;out of the top ten highest-risk ranked countries, Africa holds 4:&nbsp; Tanzania is ranked no. 2, Swaziland no. 5, the Democratic Republic of Congo (DRC) no. 6, and Zimbabwe no. 8.&nbsp;&nbsp;<\/p>\n<p>Tanzania is the biggest mover in the last three years, dropping from&nbsp;\u2018medium\u2019&nbsp;to&nbsp;\u2018extreme\u2019&nbsp;risk.&nbsp;&nbsp;<\/p>\n<p>Central Africa\u2019s\u00a0copperbelt,\u00a0straddling the border between northern Zambia and southern DRC\u00a0and Tanzania capture the bulk of resource nationalism risks, while West Africa is relatively benign, Verisk notes.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/Resource_Nationalism_Index_2019_Map-1024x565.png\" alt=\"\" class=\"wp-image-1002758\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/Resource_Nationalism_Index_2019_Map-1024x565.png 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/Resource_Nationalism_Index_2019_Map-300x165.png 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/09\/Resource_Nationalism_Index_2019_Map-768x424.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<p>\u201cTanzania\u2019s trajectory is most astounding, dropping two risk categories during that period. Upon coming to power in October 2015, President\u00a0Magufuli\u00a0adopted a populist line on the mining sector, introducing an export ban on unprocessed copper and gold,\u201d the firm\u00a0says.\u00a0\u00a0<\/p>\n<p>The ban disproportionately targeted one Acacia Mining, which was unable to export its output for three years.\u00a0Magufuli\u00a0then introduced a new mining code in 2018-Q1, and in Acacia\u2019s case was\u00a0confiscated\u00a0without compensation, which forced miners to cede a 16% share in assets to the state, the report reads.\u00a0\u00a0<\/p>\n<p>Barrick&#8217;s full acquisition of Acacia was <a rel=\"noreferrer noopener\" aria-label=\"completed this month (opens in a new tab)\" href=\"https:\/\/www.mining.com\/barrick-takes-acacia-mining-back-as-buyout-deal-sealed\/\" >completed this month<\/a>. <\/p>\n<p>Resource nationalism is far more complex an issue than preconceived notions about anti-investor sentiment in Africa, Verisk\u00a0asserts.\u00a0<\/p>\n<p>In the last three years, the prole of resource nationalism in 10 of Africa\u2019s core mining economies has shifted, and most governments on the continent are competing to attract foreign direct investment and therefore must accommodate the needs of private capital, Verisk says.&nbsp;&nbsp;<\/p>\n<p>\u201cCountries that have become dependent on the extractive industries often incline towards resource nationalism, especially when commodity prices are high, political competition fierce, and revenues low.\u201d&nbsp;&nbsp;<\/p>\n<p>The analysts point out that elections&nbsp;have some influence on the course of resource nationalism, but says the direction is difficult to predict.&nbsp;&nbsp;<\/p>\n<p>Looking forward, one certainty,&nbsp;Verisk notes, is that resource nationalism in these jurisdictions will remain a dynamic issue that continues to affect mining companies.&nbsp;&nbsp;<\/p>\n<p>Read the <a href=\"https:\/\/www.maplecroft.com\/insights\/analysis\/\"  rel=\"noreferrer noopener\" aria-label=\"full report here.\u00a0\u00a0 (opens in a new tab)\">full report here.\u00a0\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Central Africa&rsquo;s copperbelt, and Tanzania capture the bulk of resource nationalism risks, Verisk Maplecroft says.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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