What Is the Concept of “Geopolitical Risk” in Relation to Mining Locations?

Geopolitical risk in mining refers to the potential for adverse events, such as sudden regulatory bans, nationalization of assets, or political instability, to disrupt mining operations. Miners in regions like Kazakhstan or China experienced this when governments imposed sudden bans or restrictions.

This risk is a major factor driving large-scale miners to politically stable regions like North America, even if electricity costs are slightly higher, prioritizing security over marginal profit.