Global mining risk improves despite Ukraine, tax concerns

PERTH, Australia, Jan. 18, 2023 /CNW/ — The global risk environment for mining companies improved marginally last year, despite concerns about potential tax hikes and Russia’s Invasion UkraineAccording to a Mining Journal Intelligence report (MJI), this figure is now at.

The MJI World Risk Report 2022, MineHutte ratings show a slight improvement in its global Investment Risk Index score (IRI), to 60 from the 59 reported in the 2021 report.

The IRI is built on a combination of 10 ‘Hard Risk’ metrics taken from established risk-related indices – including MineHutte’s Regulatory Risk Ratings and Corruption Exposure Risk index – and an accompanying ‘Perceived Risk’ score, from the MJI’s World Risk Survey of over 800 mining professionals. A lower score indicates a greater risk.

These metrics are divided into five categories: Legal Governance, Social Governance, Fiscal, and Infrastructure. The report this year includes scores from 109 jurisdictions.

The slight improvement in 2022 follows the previous declines in global IRI score from 61 in in the inaugural World Risk Report In 2017, the highest was 62, while it reached a record high in 2020. These figures were 61 in 2019 compared to 59 in 2020.

Mining Journal Intelligence editor. “Overall risk to mining companies worldwide has decreased marginally, in part due to a more stable economic background following global COVID-19 locksdowns and a higher average energy security performance across the 109 jurisdictions.” Sam Williams said.

“But there are ways to reduce the risk of returning to levels seen before the outbreak.”

TAXES, UKRAINE WAR

The sector saw a positive in taxation of mining-specific and corporate taxes. These two metrics are measured under the Fiscal category.

Many governments have warned that they will increase taxes on mining after the COVID-19 pandemic, but the 2022 report shows little change, with scores for both metrics rising by one point to 72 and 66.6, respectively.

Williams stated, “Mining companies may be relieved to see that tax and royalty increases seem to have been largely avoided despite much discussion globally,” Williams added.

While Russia’s Invasion Ukraine will have a big impact on risk within those jurisdictions, some metrics measured – including those relating to conflict and political stability – reflect the reality prior to the start of the war. The 2023 report will fully reflect the full extent of the effects of the invasion. World Risk ReportThe release date is later in the year.

Canada The report ranked the US as the second highest-ranked region with an average score 78.

Mining Journal Intelligence, published by Aspermont (UK-based) is a part of the Mining Journal These titles are not exclusive.

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