How should institutional investors price sovereign risk and asset volatility when targeting critical mineral investments? Where do the geopolitics play out in this area in relation to the United States, China and other interests? In this latest episode of the Improving Alpha podcast, we welcome Nicholas Niarchos to discuss his perspectives on the control of critical metals, the green paradox, and more. Tune in now.
Michael Oliver Weinberg, co-founder, Improving Alpha Podcast Series
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Institutional investors seeking strategic opportunities around the world today need to be aware of how extreme political shifts, government corruption, asset volatility, and other factors can affect their portfolios. Taking the center stage of this discussion is the play on critical minerals and mining, and what sort of innovations or alternative ecosystems can be developed to help improve investment strategies.
In this episode of the Improving Alpha podcast, host Michael Oliver Weinberg welcomes Nicolas Stavros Niarchos, Journalist and Author of The Elements of Power. In this discussion, Nicolas covers his observations on conventional sovereign risk models and what happens when you get on the wrong side of the wrong person in these macro-political crisis environments.
Additional points of investor interest in this discussion include:
- What level of caution should institutional investors take when any rule of law is minimized in assessing investment targets?
- How can investors balance gatekeeper risk in critical-mineral mining, and is it better to avoid gatekeepers entirely?
- What does Nicolas see across the Congo and the treatment of their critical mineral operations? How can investors efficiently deploy capital into these supply chains, and what are some of the investment innovations that exist today?
- For critical mining operations in general, is it better to keep costs low and give up control to Chinese miners, or take on a higher cost and have a higher control level for the future?
- If institutional capital does continue to flee from these mining jurisdictions due to perceived risk, governance risk, ESG risks, and FCPA liability, will it then equate to lighter sets of legal constraints and more unscrupulous actors gaining ground in these areas?
- What exactly is the “green paradox”?
- Based on Nicolas’s research, will technology substitution and innovation change the way we look at battery chemistry, resulting in the destruction of demand for cobalt and nickel?
About Nicholas Stavros Niarchos
Nicolas Stavros Niarchos is a journalist and author whose work focuses on global supply chains, critical minerals, conflict, energy, and international affairs. He has reported from regions across Africa, Europe, and the Middle East, bringing attention to the economic, political, and human impacts of resource extraction and global trade. A former fact-checker at The New Yorker, Nicolas has built a reputation for deeply researched reporting and on-the-ground investigations. He is the author of The Elements of Power, a book that examines the critical minerals driving modern technology, clean energy, and geopolitical competition, with a particular focus on cobalt production in the Democratic Republic of Congo.
About Our Host: Michael Oliver Weinberg, CFA
For three decades Michael has invested directly at the security level and indirectly as an asset allocator in traditional and alternative asset classes. Most recently he was a Managing Director, Head of Alternative Alpha, on the Investment Committee, and a board member at APG, a Dutch pension provider. Previously he was the Chief Investment Officer at MOV37 and Protege Partners. Michael is also an Adjunct Professor of Economics and Finance at Columbia Business School, where he teaches Institutional Investing, an advanced MBA course that he created.
Michael is a published author, having written for The New York Times, international investment books, and other publications. Michael has been interviewed by the Wall Street Journal, Financial Times, CNBC, Bloomberg and Reuters. He is a frequent panelist, moderator and lecturer for investment banks, institutional and family office organizations, and business schools.
The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Vidrio Financial, and/or our host, Michael Oliver Weinberg. The Content has been made available for informational and educational purposes only. The Content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.