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As the CEO of a major mining company, you are contemplating investing in and building a...

As the CEO of a major mining company, you are contemplating investing in and building a large gold mine in a poor and relatively unstable African country. What actions would you pursue to lower the political risk associated with this investment? (this question is commodities related)

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Answer #1

Gold mines are valuable no matter where they are and being in a poor and relatively unstable country will not change their worth. We just need to ensure we have proper documents required and have given a right price for the mine. We also need to get all the permissions required so that no government would oppose our ownership on the mine in future. This would help us in reducing any kind of risks associated with any country the mine is situated in .

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