Freeport Indonesia to process 400,000t of copper concentrate at new smelter
Earlier this month, Freeport obtained an export permit for the rest of the year from the government.
Newcrest Mining (ASX:NCM) is the one Australian mining major exposed to the greatest level of country risk with 63% of its assets situated in nation-states categorized as ‘very high-risk’ by analysts.
Gillian Tan writing in the Australian cites the findings of Citi research analyst Elaine Prior who says that Newcrest’s operations in developing countries expose it to a far greater level of risk than Australia’s two other mining majors BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO).
Prior calculates that 63% of Newcrest’s assets are situated in countries categorized as ‘very high-risk’, including Papua New Guinea, Indonesia and the Ivory Coast, compared to 14% for Rio Tinto and 1% for BHP, the later of whom’s growth assets are primarily located in OECD nations.
Offshore business operations in developing countries confront a long list of potential contingencies and perils, including civil unrest, political turmoil and official corruption, as demonstrated by the recent travails of Australia’s Intrepid Mines.
