KEY RISKS TO LOOK OUT FOR IN THE SOLID MINERALS SECTOR IN 2025
October 31, 2024 Risk Mini
HIGH-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Security Threats: Security threats from militant groups, kidnappings, and banditry.
– Mitigant: Enhance security measures, engage with government officials, and conduct regular risk assessments.
2. Regulatory Uncertainty: Uncertainty surrounding regulatory frameworks, licensing, and royalties.
– Mitigant: Engage with government officials and regulatory bodies, conduct thorough risk assessments, and develop contingency plans.
3. Environmental Risks: Environmental degradation, pollution, and community resistance.
– Mitigant: Develop environmental management plans, invest in rehabilitation and reclamation, and engage with local communities.
4. Commodity Price Volatility: Fluctuations in global commodity prices impacting revenue.
– Mitigant: Develop price risk management strategies, diversify revenue streams, and enhance market intelligence.
MODERATE-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Infrastructure Challenges: Inadequate infrastructure, including transportation, power, and water.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.
2. Community Relations Risks: Conflicts with local communities, impacting operations and reputation.
– Mitigant: Develop community engagement plans, invest in community development projects, and enhance stakeholder management.
3. Technical Risks: Geological and technical challenges impacting mining operations.
– Mitigant: Invest in exploration and research, develop contingency plans, and enhance operational efficiency.
4. Corruption and Governance: Corruption and governance risks impacting sector development.
– Mitigant: Enhance transparency and accountability, engage with anti-corruption agencies, and develop governance frameworks.
LOW-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Cybersecurity Risks: Cybersecurity threats impacting operational technology and data.
– Mitigant: Implement robust cybersecurity measures, conduct regular vulnerability assessments, and enhance employee training.
2. Artificial Intelligence (AI) and Machine Learning (ML) Risks: Risks associated with AI and ML adoption.
– Mitigant: Develop AI and ML governance frameworks, conduct regular system audits, and enhance employee training.
SPECIFIC RISKS (Potential Impact: High, Likelihood: High)
1. Economic Instability: Economic instability, impacting investment and revenue.
– Mitigant: Develop contingency plans, engage with government officials, and enhance financial management.
2. Infrastructure Deficits: Inadequate infrastructure, including transportation and logistics.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.
3. Bureaucratic Delays: Bureaucratic delays impacting licensing and permitting.
– Mitigant: Engage with government officials, develop contingency plans, and enhance stakeholder management.