Why Is the Geopolitical Stability of a Mining Location a Financial Consideration?

Geopolitical instability, including sudden regulatory changes, political unrest, or government crackdowns, poses a significant financial risk to mining operations. Such events can lead to immediate shutdown, asset seizure, or forced relocation, resulting in massive stranded capital expenditure and lost revenue.

Miners must factor this risk into their location decision, often paying a premium for stable jurisdictions.