As globalization continues, sustainability and social responsibilityhas become essential in foreign mining investment. However thisglobal trend and the increasing acceptability toward the globalizationprocess, viability and sustainability are not always achieved.Viability and sustainability of mineral projects is dependant onthe social and political environment of the region where the miningventure is located and is based on the interaction between the miningentrepreneurs, national-local government representatives, communities,grass-roots groups and independent civil organizations.These are the organizations, which play the acting roles on the viabilityof mining projects and are the main source of socio-politicalrisks for the project.Throughout the decision-making process to invest in a mineralproject, socio-political risks are quantified using a set of measurablevariables. Nevertheless, these risk measures should be dependenton specific industries. Two mineral projects, even in the same miningdistrict, may have significantly different political risk profiles based ontheir own socio-political variables. This paper describes a methodologythat takes into account local social and political variables in defininga project-specific's political risk profile. This contrasts with moretypical political risk measures that focus on the country's overall riskprofile. Mining operations must operate on a local scale necessitatingthe development measure that considers more local variables.
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