Mining and metals companies’ exposure to fraud and corruption is now higher as a result of cost cutting and expansion into new territories, says a new Ernst & Young report.
An Ernst & Young report made public Tuesday asserts, “The global financial crisis has weakened mining and metals companies’ defenses against fraud” as mining and metal companies must expand their operations to territories “that provided increased exposure to corruption.”
While the recovery in metals prices has encouraged mining companies to reactive capital projects and exploration activities, those activities are being undertaken in environments slimmed down by cost reductions brought on by the recent global financial crisis.