1. The long-term future and scenarios Junior mining entities

The long-term future
and scenarios

mining entities is more vulnerable and sensitive to changes in macro
environment. After analysing the current state of MinCo and characteristics of
possible strategy, it’s necessary to consider the external environment in the long-term
future of 10 years.

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Ø  Political
and legal. Government is an important factor affecting mining industry. With
growing emphasize on a greener environment, government may limit mining
activities. Permitting requirements, license negotiations and regulations can also
be complex and unstable, causing delays and rising costs in development.
Furthermore, governments can review licensing agreements and ask for changes to
their benefits (Daniels, 2014). Besides, the negotiations of Brexit will bring
high uncertainty in national policies. Lastly, mining projects are more exposed
to terrorist groups given the remote operation locations. 

Ø  Economic.
Metal and mineral prices are turning bright but some metal prices are less
friendly (Passport, 2017). The demand for development of emerging countries is
hard to imagine. China’s growth moderation (Song, 2016) is happening while
other Asian economies show great growth potential. There is also uncertainty
around the US economy ([email protected], 2017). Fluctuations in global energy
prices influence the running costs and profitability of mining businesses.

Ø  Social.
An aging workforce leaves challenges to mining sectors. Rising awareness of
environment protection bring more cautious consideration on mining projects. Similarly,
the reaction of local communities is worth attention. Furthermore, the rapid
growth of Chinese middle class will bring various demand for commodities.

Ø  Technological.
With the end of silicon’s dominance in the electronics industry (Reuters Staff,
2017), new materials will be in demand to further reducing the size of computer
chips and other electronic devices. The creation of new mining techniques
requires more advanced technologies which can bring additional uncertainties.
Green technologies also demand metals to produce renewable energy facilities.
Furthermore, the rapidly widespread electric vehicles will require new metals,
such as those for battery production.

Ø  Environmental.
Natural disasters such as earthquakes and floods have significant impact on
mining projects (Marsh, 2013), given that mining activities tend to operate in
remote areas. Water shortage is another issue that will place challenges on
costs. Climate change continues to shape the mining industry.

Ø  Legal.
Changes in laws have great impact on business environment of mining, such as
labor laws, environmental laws, safety standards, etc.

on issues above, the author selected 12 most relevant ones in terms of
importance and uncertainty in each part.