Main considerations in the formulation of mining policies to attract foreign investment

Abstract

The formulation of mining policies that will attract foreign investment must address conventionally acknowledged investor concerns and some new challenges. Issues that have been extensively examined over the years include country characteristics, such as geological, political and economic risks, the institutional framework, infrastructure, image within the investor community and mining, tax, labour and foreign investment legislation. While these considerations remain very important, new issues have emerged, such as environmental impact, local communities, human rights and indigenous rights. In the current climate of globalization, fierce competition (between countries and companies), global deceleration of economic growth and falling commodity prices a country must act quickly to implement policies that will be effective in attracting foreign investment to its minerals sector.