Press Release

Frontier Strategy Group Introduces the First Global Above-Ground Risk (AGR) Country Ratings for the Mining Industry, Says “Up to 40% of Countries Surveyed Could See a Significant Deterioration in their AGR Climate in 2006.”

Cambridge, Massachusetts, January 17, 2006 – The Frontier Strategy Group, a global consulting and research firm that specializes in analyzing the above-ground risks facing the natural resources industries, has released its 2006 Above-Ground Risk (AGR) Country Ratings Report for the Mining Industry.

The AGR Ratings Report measures the top 50 mining countries across Africa, the Americas, Asia, Europe, and the Former Soviet Union (FSU) on geopolitical, regulatory and business climate, environmental, and social risks.

“The mining industry faces a unique set of above-ground risks which traditional political risk indices do not capture,” said Managing Director Alex Turkeltaub. “Our ratings fill this gap.

Key Insights From the 2006 Report

The Report notes three trends that will define the above-ground risk climate for mining companies in 2006:

High risk volatility as elections across Latin America and Africa redefine the above-ground context facing mining companies.

“For 40% of the countries covered by our research, including Peru, Chile, Ecuador, Ghana, and others, there is substantial possibility for the above-round risk climate to worsen in 2006,” continues Turkeltaub. “Such volatility could impact the projected NPV of projects by as much as 30%.”

The emergence of amajor new source country, such as the DRC ( Congo) or Mongolia, could create a strong impetus to invest heavily in countries whose above-ground risk exposure is poorly understood.

“Companies are eager to find new elephant properties,” noted Alex Gorbansky, Managing Director and head of the Africa Mining & Energy practice at the Frontier Strategy Group. “But in their frenzy to replace reserves, companies need to remember that above-ground risk climates may change over the course of their investment.”

The advent of resource nationalism in the mining sector, as China, India, and others begin treating mineral resources as a strategic source of wealth. Africa could be particularly impacted:

“In 2006, African countries such as Ghana and Angola could begin exhibiting similar levels of resource nationalism we are starting to observe in the oil industry in Africa,” added Gorbansky. “With suitors from China, India, and other countries and increasing commodities prices, African governments know they have enormous leverage. 2006 could be the year they start using it.”

Availability and Pricing

The 2006 AGR Ratings Report is currently available for $14,500 (USD). View a summary abstract.

About Frontier Strategy Group

Frontier Strategy Group is a global consulting and research firm that specializes in analyzing the above-ground geopolitical, regulatory, environmental, and social risks facing the natural resources industries. Frontier Strategy Group advises companies on new ventures & exploration, mergers & acquisitions, and existing operations at the risk frontier. Frontier Strategy Group is headquartered in Cambridge, Massachusetts.

Media Contact:
Alexis Horowitz-Burdick: +1 202 280 2060 or via email at ahorowitz-burdick@frontierstrategygroup.com