Scott is Counsel and Solicitor Advocate in the Hogan Lovells International Arbitration team focusing on public international law and, in particular, dispute settlement under investment treaties.
Scott advises clients on international economic law, including sanctions, and acts for States, international organisations and businesses in international disputes, primarily international arbitrations under the ICSID, SCC, UNCITRAL, LCIA and ICC rules in addition to ad-hoc arbitrations and arbitration-related litigation before the English courts. He has experience of dispute settlement in the mining, oil and gas, renewable energy, aviation, media, telecommunications, and life sciences sectors.
Scott also has experience of conducting advocacy in a number of investment arbitration hearings and he regularly delivers training and lectures on international investment law and dispute settlement. He has Higher Rights of Audience (Civil Proceedings) before the English courts.
Protecting foreign investments in the mining sector from political risks in a rapidly changing geopolitical world
Political risk is a major factor influencing boardroom decisions on whether to invest, and it has a real effect on those investments. As the competition for critical metals and minerals intensifies, what is in the ground does not align with international borders. To meet forecasted demand, mining companies are increasingly having to look beyond tier one jurisdictions and source materials from States that have a higher degree of political risk.
Certain Governments in resource rich States want to ensure that more of their natural resources are allocated to the State, rather than to foreign investors. States increasingly are changing mining regulations, and laws concerning taxation, local content, revenue distribution, and environmental stewardship. All of these issues can directly impact the risk profile and economic viability of projects.
My presentation will focus on how an investment in mining in a foreign State can be protected from these risks. While mining companies are leaders in building effective relationships with the government in the States in which they operate, relationships can falter. For example, during an election cycle, a strong relationship with a foreign investor may be a distant second to populist policy.
I will recommend that while mining companies should of course continue to prioritise and foster relationship building and diplomatic solutions to disputes, it is essential that – where possible – they prepare for the worst case scenario. This can be done through ensuring that their investments are protected under investment treaties. This is a route used increasingly by mining investors to protect themselves in today's geopolitical climate, and mining cases against States are the growth area in investment disputes today.
