Navigating a political transition for an anchor investor
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An international mining company faced roadblocks in implementing its mining development agreement following a government change in a post-conflict country. The new government lacked capacity and understanding of the existing legal framework between the country and the company, and suffered from rent-seeking behavior from disrupters who sought to halt operations.
The KRL approach
Instead of adopting a reactive response to the new administration, KRL devised a three-prong approach to facilitate a productive relationship with the company. KRL mobilized our expansive network in the country to map the key players and spoilers in the new government, focusing on the underlying motivations of each.
Working with the company, KRL deployed an outreach campaign to educate key influencers within the government, including the presidency, on the legal framework with the company, their historic relationship with the country, and the local and international implications if relations with an anchor investor were to sour.
The campaign served as an essential basis for a successful series of consultations between the company, the government, and third-party stakeholders. The company and the host government agreed on the underlying vulnerabilities within the mining agreement and settled on mutually beneficial terms for the future. The newly elected president publicized his tour of the company’s operations, signaling the shift in the government’s relationship with the company from one of antagonism to one of partnership.