Navigating Political Risk in the DRC
Executive Summary
The Democratic Republic of the Congo (DRC) is the second largest country in Africa and one of the richest in the world in terms of natural resources. With 197 million acres of usable land and 1,100 minerals and precious metals, the DRC has the resources to achieve prosperity for its people, and serve as a driver for African economic growth.[i] Despite its potential, however, growing uncertainty over elections and the country’s political climate continues to deter foreign direct investment.
To a greater or lesser degree, all infrastructure projects are at risk from governments legitimately changing regulations or policies which may increase the operating costs of a business, reduce the attractiveness of an investment decision, or change the competitive landscape of an industry. However, the growing global demand for gold means that mining companies cannot shy away from challenging operating environments amid political risk.
Therefore, as the largest gold producing mining company in the world, it is not only important for Barrick Gold to be fully aware of the political risks that they face in the DRC, but they should also understand what causes these risks and how they can be mitigated. In particular, Barrick Bold operates the Kibali gold mine which is located in northeast DRC, approximately 220 kilometres east of the capital of the Haut Uele province, Isiro.[ii]
Consequently, this report highlights the political risk resulting from electoral corruption that faces Barrick Gold in the DRC.
Please click on the following link to view the full report that is available for download in PDF format: research/current_research/Navigating-Political-Risk-in-the-DRC.pdf
