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Press ReleaseFrontier Strategy Group Managing Director Alex Turkeltaub Discusses How Resource Nationalism is Impacting the Global Mining Industry on the BBC World Business Review CAMBRIDGE, Mass. – (BUSINESS WIRE) – April 18, 2006 – Frontier Strategy Group Managing Director and mining industry expert Alex Turkeltaub appeared on the BBC Radio Program “World Business Review” on April 18, 2006 to discuss the impact of resource nationalism on the global mining industry. “While resource nationalism is increasing, to be a successful mining company today, whether you are BHP Billiton, Newmont, Barrick, Rio Tinto, or anybody else, you have to use the resources of your home country - diplomatic and otherwise - and understand how to use new market circumstances like the emergence of Chinese and Indian competitors to reduce downside risk,” said Turkeltaub “The companies that are able to do this successfully are going to do very well in the new environment.” Commenting on the reasons for the rise in resource nationalism, Mr. Turkeltaub cited the emergence of China and India as drivers of commodities demand. “Particularly around the base metals, you are seeing a lot of resource nationalism happening in the mining sector because these metals are so critical to the economic growth of developing countries like India and China,” observed Turkeltaub. “One of the reasons you are seeing so many countries like Angola and Nigeria drive hard bargains, is that they understand if Western companies leave, Chinese companies will step into the breach.” Mr. Turkeltaub also highlighted the upside potential around the new market conditions, “The irony is that the participation of Chinese companies in markets often lowers the risk for western mining and oil companies operating in places like the Democratic Republic of the Congo because executives understand that if things don't work out for them, they can always sell out to a Chinese company, which reduces risk on the downside.” An archive of the “World Business Review” broadcast can be found at: http://www.frontierstrategygroup.com/media/index.php About Alex TurkeltaubAlex Turkeltaub heads the Former Soviet Union and Middle East Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a global consulting and research firm that specializes in the above-ground geopolitical, regulatory, environmental, and social risks facing the natural resources industries. Frontier Strategy Group is based in Cambridge, Massachusetts, and has offices in New York and Washington DC. Media Contact:
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