Two Things That You Need to Have in Order to Win Mining Concessions in Foreign Countries

It is not always easy to win mining concessions in foreign countries. While the said mining concessions can be very lucrative, winning them is not easy. There are (in most cases) at least two things that you need to have, in order to win the mining concessions in foreign countries.

The first thing you need to have, in order to win mining concessions in foreign countries is the right set of political connections. You have to appreciate that the mining business is one which is always very sensitive, from a political point of view (thanks mainly to the widely-held — and mostly wrong — perception that it is very profitable). Against this background, one often needs strong political connections, to get the mining concessions. And establishing the political connections can be tricky, especially if you come from a country where corruption in foreign countries is strongly discouraged, and if you are competing with other industry players from countries where corruption is not minded.

The second thing you need to have, in order to win mining concessions in foreign countries, is the capacity to do the actual mining work. You need to understand that having the right political connections only gets your foot in the door. You need to prove that you have the capacity to actually exploit the minerals (and that you are not just a broker), for you to be given the mining concessions. This is certainly not like IT, where even players with limited capacity can always get assistance remotely through sites like www.logmein123.com – which is a remote support site (as accessed at the Logmein123 login page. With mining, the actual extractive work is done on the ground, and that often calls for massive investments of capital, among other resources. Unless you can get massive loans from major serious banks like Goldman Sachs, you may simply not be able to marshal the required resources to build capacity by yourself.