what is above ground risk and it's connection with a mining commodity price?

[darexgeorgieviya04]

in mining industries we know the word above ground risk, can you describe what is above ground risk really and will it effect the price and supply of a mining commodities?

[PALM]

Abover Ground Risk: This term refers to the non-technical risks and security risks that can badly affect the mining companies. It is the type of risk which is used in mining companies. Since above the ground security risk is very critical and nowadays companies required assurance from the government to provide security in hostile areas like Iraq and other similar countries.

Policy and regulatory uncertainty, it also remains there as in the countries with greater scope government do not know about the process and new requirements so they tend to make policies without consultation of big players and this cause a serious risk. Managing community expectations is also fall within the above ground risk criteria as it hard and companies need to allocate spending for this purpose as well.

[sashavich04]

Above ground risk refers to non quantifiable risks that can adversely affect a project or investment. Above ground risk is generally used in the energy industry to refer to non technical risks such as environmental issues and the regulatory climate. For broader understanding, above ground risk refers to a wide range of somewhat nebulous risks such as political risk, corporate risk, security and corporate governance whose impact is difficult to quantify but could be significant should one or more of these risks become a real threat.

Above ground risk is connected to the price of mining commodity price because it is a significant factor in mining sectors, exploration and production. Above ground risk are often greater and more difficult to mitigate, it can expose international companies of reputational risk due to petty corruption and bribery and corruption which has been a big problem for energy and mining industries. Such above ground risk can lead to a collapse in investment in mining products such as oil production capacity, there by exposing a lot of international oil companies to large losses and thereby affecting the price of that product.

[sashavich04]

Above ground risk refers to non quantifiable risks that can adversely affect a project or investment. Above ground risk is generally used in the energy industry to refer to non technical risks such as environmental issues and the regulatory climate. For broader understanding, above ground risk refers to a wide range of somewhat nebulous risks such as political risk, corporate risk, security and corporate governance whose impact is difficult to quantify but could be significant should one or more of these risks become a real threat.

Above ground risk is connected to the price of mining commodity price because it is a significant factor in mining sectors, exploration and production. Above ground risk are often greater and more difficult to mitigate, it can expose international companies of reputational risk due to petty corruption and bribery and corruption which has been a big problem for energy and mining industries. Such above ground risk can lead to a collapse in investment in mining products such as oil production capacity, there by exposing a lot of international oil companies to large losses and thereby affecting the price of that product.