“Peru’s Mining and Energy Ministry recently projected a 30% increase in mining investment in the county in 2019, from US$4.6 billion to US$6 billion, eventually reaching US$7.8 billion by 2020. Ecuador enacted plans to grow mining from 1.55% of GDP to 4% of GDP by 2021…”
In terms of “the bad”, 2019 can expect economic and political volatility in LATAM. Brazil’s Bolsonaro administration will likely confront tension with Congress, as the party lacks a stable legislative majority.
Additionally, the report claims
“the firm position defended by Bolsonaro against indigenous communities and environmental regulations will also embolden NGOs. Stronger scrutiny from international media is to be expected, which in turn will increase reputational risks for investors.“
Opposition from local communities and security concerns will be a rising challenge for LATAM infrastructure in 2019.
In the case of Mexico, the Morena party, holding a majority in Mexican legislature, “has proposed to amend the country’s mining law, calling for increased social impact studies and giving the Ministry of Economy the power to cancel mining concessions in case of ongoing conflicts” (Reuters).
Moving forward, security risks must be confronted in Colombia, Brazil, and Central America to ensure sustainable development on investment and increase profitability for infrastructure and natural resources companies in both the short and long term.