Michigan to Burkina Faso: Environmental mining risks mapped

Michigan and Manitoba are among the lowest environmental risk jurisdictions for mining investment – with risks highest in Burkina Faso and the Middle East, according to new research by Mining Journal Intelligence (MJI).

Environmental risks were assessed for the first time in the 2024 edition of MJI's World Risk Report feat. MineHutte Ratings, a comprehensive evaluation of mining investment risk across 117 jurisdictions.

The report, published this week, assesses investment risks across 13 data-driven ‘Hard Risk' metrics plus Perceived Risk scores from the World Risk Survey, completed by 439 industry professionals and experts.

Environmental: A new risk category

The addition of the Environmental category follows shifts in the global risk landscape for mining. In the World Risk Survey, environmental risks/disputes were highlighted as the top threat to mining. 

The Environmental risk category is based on three equally weighted component metrics: 

• EIA Approvals Risk, assessed by MJI's partner MineHutte and survey results
• Water stress, based on data from World Resources Institute and survey results
• Access to low-carbon electricity, based on the World Energy Council's Environmental Sustainability scores, plus survey results

A webinar marking the launch of the 2024 report, featuring a description of the new Environmental risk category, is available on demand here.

The report now assesses risks over six categories: Legal (35% of total risk scores), Governance (15%), Social (15%), Environmental (15%), Fiscal (12.5%) and Infrastructure (7.5%).

Environmental risk: Top and bottom performers

Michigan was the lowest Environmental risk jurisdiction globally, scoring 74 (figures are out of 100, with higher scores meaning lower risk). The figure equates to an A risk rating, meaning low risk.

 

Michigan was followed by Utah (73) and Nevada (70). The US states were among the top performers globally on EIA Approval Risk, with a solid showing in Access to low-carbon electricity.

The highest-scoring jurisdiction outside of the US was Canada's Manitoba province, which scored well across the three metrics.

 

Burkina Faso was the highest Environmental risk jurisdiction, with a score of 19, well down in the bottom D rating category, meaning extremely high risk, for scores below 40.

Three Middle Eastern countries were also among the five highest risks, with Qatar and Oman both scoring 25 and the United Arab Emirates 30. Higher Environmental risks in these countries reflected weak access to low-carbon power, high water stress and high risks associated with the EIA approvals process.

To access the World Risk Report click here. A free webinar, World Risk Report launch: Is the world getting riskier for mining investment?, is available here.

By Celia Aspden

Edited by Sam Williams

 

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Please email sam.williams@aspermont.com with any questions, suggestions, or comments about our research.