MINING

The mining sector across BRICS countries is central to the global supply of critical minerals, metals, and rare earths, making it highly attractive to international corporations. However, it is also one of the most politically sensitive and risk-laden sectors. Regulatory unpredictability, environmental scrutiny, and intense state involvement create substantial barriers to entry and operational continuity. Many BRICS governments view mineral resources as strategic assets, leading to frequent policy shifts around ownership rights, export controls, and royalty structures. Additionally, permitting processes are often slow, non-transparent, and vulnerable to corruption or local political interference.

In the past five years, outcomes have been mixed. Brazil’s Vale has recovered from the 2019 Brumadinho dam disaster, but the tragedy heightened scrutiny on environmental and social safeguards, especially for foreign operators. In South Africa, international miners continue to face challenges due to unreliable power supply, community unrest, and stringent Black Economic Empowerment (BEE) requirements. Russia, once a major player in global palladium and nickel, has been cut off from much of the international mining finance and technology ecosystem due to sanctions. India has opened more mineral blocks to foreign investment, particularly in coal and rare earths, but bureaucratic inertia and land acquisition delays persist. Meanwhile, China has consolidated its grip over rare earths and lithium processing, prioritizing domestic control and limiting foreign participation through regulatory and market barriers.

Mining projects are uniquely exposed to a convergence of ESG, geopolitical, and operational risks. Community resistance, labor disputes, and environmental activism can rapidly escalate into reputational and financial crises. Moreover, global pressure for sustainable sourcing and traceability adds compliance burdens that are difficult to meet in jurisdictions with weak enforcement and limited transparency. For international corporations, success in BRICS mining markets requires long-term engagement, strong stakeholder alliances, and adaptive risk governance models.