$1.$ Commodity Price Volatility:

This risk stems from the market volatility of key commodities like coal, platinum, and diamonds. Such fluctuations lead to unpredictable costs and revenues. As a result, there is significant uncertainty within the supply chain.

$2.$ Supplier Reliability:

Contractual risk in mining exploration occurs when companies depend on specific manufacturers for inputs or equipment. If a supplier fails to meet delivery schedules or faces operational issues, production can be significantly delayed. This reliance creates vulnerabilities in the production process.

$3.$ Regulatory and Environmental Compliance:

Mining is a highly sensitive industry where firms must diligently comply with environmental and safety regulations. Government regulations can lead to suppliers or transport partners halting operations while they address permit issues. This can slow down the entire supply chain significantly.

$4.$ Transportation and Logistics Disruptions:

Many mining operations involve transporting commodities and equipment over long distances, often in challenging conditions. Factors such as strikes, inadequate transportation infrastructure, and regional political instability can complicate these logistics$.$ These issues pose significant risks to the efficiency of mining activities.

$5.$ Geopolitical Risks:

Anglo American operates facilities in countries with occasional political instability, exposing the organization to risks such as social unrest, boycotts, and trade barriers. These factors can lead to limited access to materials and disruptions in the delivery of goods. For the risks identified in question $1\mathrm{.}2,$ demonstrate the

strategies and contingencies that should be considered when

responding to these risks. Make use of relevant examples and

illustrations.