Client Successes

Existing Asset Above-Ground Advisory – Peru Mining

1. Problem	2. Approach	3. Client Benefits
Large mining company with a core asset in Peru wanted to understand the impact of upcoming elections in the country and region on its investment and development strategy for the project.	Conducted extensive scenario planning around Latin American and Peruvian politics in order to understand likely future developments in Peru and appropriate response strategies by the client.	The client’s senior management team obtained a clear understanding of the possible evolution of the Peruvian political climate and its impact on mining and its investment.
Large mining company with a core asset in Peru wanted to understand the impact of upcoming elections in the country and region on its investment and development strategy for the project. Peruvian mining climate has become more difficult under President Toledo because of weak central control over regional issues and increasing social unrest. The uncertainty surrounding the 2006 presidential and parliamentary elections could impact returns on investment in the country and region. Leftward wave across Latin America suggests the risk of a renegotiation of host government agreements and possible nationalization of assets in many countries, including Peru. Peru’s notoriously unpredictable elections offered little certainty to the company’s management and board of directors.