Issue link: http://resourceworld.uberflip.com/i/107613
For most of South America, 2012 was a year of growth and development, although perhaps not as vigorous as hoped. The Economist forecasted growth of between 3.5% and 4% for 2012 compared to 4% in 2011. Chile, Colombia and Peru, The Economist predicted, will have above average growth. For these countries, much of their success is firmly rooted in the burgeoning mining and minerals sector, with Colombia generating particular excitement in this regard, over the past few years. "And remember it's not just about gold. Colombia has a broad range of mineralogy, including the precious stone industry. [There's] also meaningful potenLEFT PAGE: Exploration field team on the advanced-stage, high-grade Cerro Negro property; operated by Goldcorp Inc., in the Santa Cruz province of Argentina. Photo courtesy of Goldcorp Inc. TOP: Independencia Mine, in Paraguay. Photo courtesy of Latin American Minerals Inc. february 2013 tial for,coltan (the ore hosting niobium and tantalum), which is important for high-tech industries… It's still in the early stages, but there have been some discoveries and people are actively prospecting for it," Norton Rose's managing partner in Colombia, Glenn Faass, told Resource World. "Colombia also has a lot of high-quality coal deposits and modern technology is making coal much less of an environmental evil than it once was, so we're expecting some focus on this sector in 2013 as well." Whatever the location in South America, companies that fail to carefully engage in community relations or with environmental controls will find their plans quickly scuppered. Companies should also future-proof their projects for worstcase scenarios, like nationalization. There are plenty of historic examples of South American countries that seemed safe and secure, yet inexorably becoming difficult, sometimes impossible climates in which to operate. "If you look at South America, one can see two sets of jurisdictions. The first set includes countries that are developing a pro-investment, regulatory framework and climate. Here you can include countries such as Chile, Colombia, and Peru; they are eager to receive mining sector investment," Norton Rose's co-head for Venezuela mining practice, Rubén Eduardo Luján, told Resource World. "The second set includes jurisdictions where the investment climate has, in many ways, deteriorated due to political agendas or a shift in the regulatory framework. Unfortunately, this group includes Venezuela, Bolivia, Ecuador and, more recently, Argentina." "Moves by Argentina's government have had a chilling effect on those considering whether to invest in the county…I suspect that those who have been considering Argentina, but have not yet committed, will remain reluctant to look at the country until the political and economic direction www.resourceworld.com 9