A Global Mining Group Learned that Dealing with Governments can be Tricky

CLIENT

A global mining group was part of an industry facing a proposed Super Tax by its host government.

PROBLEM

The industry claimed the tax would damage financial performance. It could also lead to companies moving their skills and operating bases to other countries, reducing investment in the country. It viewed the tax as unfair, being targeted at the mining sector.

OPPORTUNITY

The industry felt that if it did not oppose the proposed tax, further government legislation could continue to impact its business.

DELIVERABLES

A First Principles consultant was part of a corporate team developing a communications strategy in line with the industry position to oppose the tax.

Briefs and presentations were prepared for the C-suite, with platforms carefully chosen to reach the broadest global audiences. Advertisements were taken out in high profile media. Lobbying the government became part of the company’s contribution to the industry approach.

RESULTS

Under this pressure, the government dropped the proposed tax. However, not far down the road, it began considering raising a further but different tax.

The lesson learned by the company and industry was:  never underestimate the political agenda and gather intelligence before legislation becomes a potential reality.