Increasing uncertainty drives away investors

Resource nationalism is having a direct effect on commodity prices, making them more volatile and threatening global security.

Resource nationalism is having a direct effect on commodity prices, making them more volatile and threatening global security.

The increased fluctuation in prices increases risk and raises the cost of capital for companies.

Governments can also be penalised. If resource nationalism is pursued too vigorously, investors are discouraged and companies become reluctant to pursue long-term projects with high capital outlay. This is aggravated when governments seem likely to disregard existing agreements.

It was clear at the recent Mining Indaba in Cape Town that investors have taken note of countries that are increasing taxation or looking at holding back a portion of their resources for domestic use, influencing supply. – Mail & Guardian reporter


Comments

blog comments powered by Disqus

Client Media Releases

Narrowing the intention-behaviour gap
Imperial reports flat revenue
MTN's school connectivity programme reaches Namaqualand
Rosebank College initiates Graduate Empowerment Programme
Oxbridge Academy partners with ADvTECH Group
Why future success belongs to the first movers...
Ipsos pre-election forecasting on the mark nationally
Office 365 a one-stop-shop for e-mail compliance