The Importance of Properly Structuring International Investments in the Mining Sector

March 2024
Region: Global

Investments in the mining sector are commonly subject to strict regulation across the globe and face unique regulatory, environmental and geopolitical risks. Managing mining projects becomes more challenging for investors operating in foreign markets. It is not rare that the confluence of political and social pressures results in a government taking measures that adversely affect foreign investors.

Moreover, as global demand for metals and minerals rises with the transition to renewable energy, so has the number of disputes in the mining sector. According to recent statistics from the World Bank’s International Centre for the Settlement of Investment Disputes, the oil and gas and mining sectors accounted for the largest share of investment arbitrations registered in 2023.

International investors in the mining sector should consider structuring their investments to secure international protections to mitigate the risk of adverse governmental measures.