MINING IQ

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

Mining Journal Intelligence’s World Risk Report 2023 featuring MineHutte Ratings is a comprehensive evaluation of mining investment risk, including assessments of more than 120 jurisdictions globally.

The report equips mining companies and investors with a powerful tool to compare the risks of losing their investment in a given jurisdiction, based on ratings encompassing five risk categories: Legal, Governance, Social, Fiscal, and Infrastructure.

Jurisdictions are scored out of 100 on overall risk in the Investment Risk Index, which is itself built on 11 external ‘Hard Risk’ metrics, including an up-to-date assessment of Legal risks from our partner, legal consultancy MineHutte.

The 11 ‘Hard Risk’ metrics are supported by ‘Perceived Risk’ scores, which are based on an industrywide survey that attracted responses from more than 600 experts.

Key Findings:

  • What are the world’s lowest and highest-risk jurisdictions?
  • Is mining investment risk on the rise globally?
  • Has medium-risk Australia/Oceania closed the gap on low-risk Canada?

Methodology:

Mining Journal Intelligence’s World Risk Report assesses risk using 11 ‘Hard Risk’ metrics, from established, risk-related indices, and corresponding ‘Perceived Risk’ scores, taken from the World Risk Survey, which asks mining professionals to rate jurisdictions they are familiar with.

The Hard and Perceived metrics are divided into five key risk categories, each of which is weighted: Legal (40%), Governance (25%), Social (15%), Fiscal (12.5%), and Infrastructure (7.5%). Within each category, the Hard Risk ratings make up 80% of the total score and Perceived Risk 20%.

Legal Hard Risk scores are based on Regulatory Risk Ratings from our partner, legal consultancy MineHutte.

All categories feed into the Investment Risk Index (IRI), which scores jurisdictions out of 100 on overall risk, with a higher score meaning lower risk. IRI scores correspond to risk ratings from AAA – for those with negligible risk – to D for jurisdictions with exceptionally high risk.

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