Mining Mavericks Face New Global Shakedown As Nations Demand Bigger Cut
Machine guns, hostages, and “borderline criminal” actions sound like something right out of a James Bond film, but that’s the current state of mining. WSJ reports developing host nations have turned “increasingly aggressive” as they squeeze foreign investors for more profits — and this power grab unfolds all while global superpowers compete for critical resources.
- Verisk Maplecroft reports that 72 out of 198 countries have significantly escalated resource nationalism — a convenient way to assert greater control over natural resources to boost their economy and alleviate pandemic-induced economic woes.
- The Democratic Republic of Congo froze Glencore assets while Panama forced a mine closure — just as Mali’s military government ransomed Barrick and Resolute executives for $85M and $160M, respectively.
The cost of doing business: Mining’s new reality is dictating a dramatic shift in investment strategies, with Sprott’s $33B fund becoming “much more cautious” in certain regions. As international arbitration cases explode at the World Bank, the industry faces a stark choice: brave the rising risks of resource nationalism or miss out on critical mineral opportunities — turning what was once routine contract negotiation into a high-stakes game of international intimidation.
