| Africa holds significant deposits of mineral wealth alongside a significant proportion of the world's violent conflicts. Nearly every African country has preconditions for conflict, including poverty, high populations and ethno-linguistic diversity. Canadian junior resource companies are attracted to African resource wealth and are willing to accept the higher risks associated with operations in conflict-prone African states. Awareness and analysis of open or latent conflict is not widely considered within Canadian junior resource companies. Conflict analysis must be integrated into a resource company's investment decision process, resulting in the early understanding of the conflict risk of proposed mining operations. By adopting proactive conflict analysis and clearly understanding the conflict risk posed to exploration and mining operations, Canadian junior resource companies can reduce costs associated with destructive company/community conflict, and implement strategies to prevent conflict. |
