Grant Thornton International, a global accounting and consulting firm, is warning that the worldwide mining sector faces an uncertain future in the shadow of increasing and unpredictable government intervention.
The consultancy, which issued a report on the subject this week, warned that government interventions are raising sector uncertainty and complexity to acute levels, complicating decision making and heightening risks.
It also said such action increases risk for investors, clouds corporate valuations and make it harder to raise capital.
Finally, the consequence of unpredictable government intervention is to negatively affect project viability by reducing supply, disrupting demand and limiting overall profitability.
Without clarity over the type and extent of government interventions, the development of the mining sector is in danger of stagnating, ultimately threatening global economic growth, GTI said in a statement.