Video: Geopolitics and the mining industry – how to navigate polarization

During the recent The Mining Investment Event in Quebec City, Que., a panel on geopolitics shared advice with miners on navigating the increasingly polarized global geopolitics and the accompanying opportunities in the mining sector.

“Mining has been at the forefront of international exploration and development for decades, but right now, the geopolitical risk pendulum has swung hard,” Gordon Bogdan of Origin Merchant Partners told the late-June conference. “Companies must find ways to work with governments, create economic sharing, and prioritize sustainable practices to move development forward.”

Moderated by Terrence Ortslan of TSO Associates, panellists included Bogdan, Keith Spence of Global Mining Capital and John Passalacqua of First Phosphate.

The panel underlined the importance of recognizing the geopolitical dynamics and polarization between different regions, such as the Anglosphere and the China sphere. Keeping tabs on the often-fast-moving global geopolitical space could better equip companies to deal with their implications for operations, investments, and partnerships.

The panel argued that miners should consider diversifying funding sources given the changing geopolitical landscape and concerns over reliance on specific countries. Companies are encouraged to explore opportunities for raising capital from within the Anglosphere or other regions to reduce dependence on a single source.

The panel also focused on economic sharing and local development. When working in host countries, companies should prioritize economic sharing initiatives. This includes investing in local infrastructure, education, and healthcare and creating business opportunities that benefit the local communities. This approach can help build positive relationships and mitigate political risks.

The panel also considered alternative processing and refining options. Given China’s concentration of processing capabilities, companies are encouraged to explore the feasibility of developing processing and refining facilities within the Anglosphere or other regions. Miners should assess the environmental and economic implications of processing critical minerals locally to reduce their dependence on a single country.

Miners should also embrace recycling and sustainable practices. With growing concerns over resource scarcity and environmental impact, companies should prioritize recycling initiatives and sustainable mining practices. They should consider investing in technologies and processes that promote the efficient use of resources and reduce environmental harm.