Verisk Maplecroft: Government interventions in the raw materials sector are increasing.
The demand for specialty raw materials such as rare earths, cobalt, and lithium is rising. As a result, the importance of developing and emerging countries that possess these resources is also growing. However, international mining companies are facing increasing challenges in these nations, as government interventions in the sector are becoming more frequent, according to a study by the strategic consultancy Verisk Maplecroft.
Resource-rich countries aim to benefit more from their natural wealth, but measures such as tax increases or even nationalization make investments a risky endeavor if the trend continues. As a consequence, disruptions in supply chains for raw materials—essential to many high-tech industries—are at risk.
Among the countries with the highest risk of “resource nationalism” is Kazakhstan. The European Union signed a raw materials partnership with the Central Asian country at the end of 2022. According to Verisk Maplecroft, Kazakhstan, as well as Mexico, has seen a significant increase in risks over the past five years.
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