Skip to main content

WIM (UK) Investing in and Developing Metals and Mining Assets in Emerging Jurisdictions

By 08/10/2013March 9th, 2018News

On the evening of 10 September, some 70 WIM(UK) members gathered at Latham & Watkins’ London offices to tackle one of the most pertinent challenges facing mining developers and financiers alike.

The panel, comprising long-term WIM(UK) supporters and noted experts in their respective fields, featured Judith Mosely, Business Development Director, Mining, Rand Merchant Bank; Jennifer Maxwell, Counsel, Blake, Cassels & Graydon LLP; Victoria Salem, Senior Associate, Latham & Watkins; and, Philippa Spence, Partner, ERM.

Attendees voted on a number of questions posed by the panel and the results of this are below.

Topic: Risks of Resource Nationalism

By Jennifer Maxwell

Q1: Between 2008-2012, how many jurisdictions saw governments undertake resource nationalism type action targeting mining assets?

a) 11 12%

b) 37 49%

c) 78 39%

Q2: In your view, what is the most effective way to protect against resource nationalism?

a) make use of investment and double taxation treaties 11%

b) sign a comprehensive investment agreement with the host government 35%

c) give the state a piece of the pie through equity ownership 35%

d) involve local investors 10%

e) invest in local infrastructure 9%

Q3: With the changed economic landscape, do you think that resource nationalism risks will

a) Increase 27%

b) Decrease 25%

c) Stay the Same 48%

Topic: Mining Infrastructure

By Victoria Salem

Q1: How much investment in transportation infrastructure will be required to exploit all of Sub-Saharan Africa’s (SSA) known iron ore deposits?

1. $100 billion 49%

2. $50 billion 42%

3. $30 billion 7%

4. $25 billion 2%

Q2: According to the World Bank, one of the keys to achieving Africa’s development goals is?

1. Multi-user development corridors? 82%

2. Increased free-carried state interests? 14%

3. Single owner/operator mines and infrastructure? 4%

Q3: Do you think that SSA governments should implement open access on?

1. No projects? 2%

2. All existing and new projects? 33%

3. All existing projects only? 18%

4. All new projects only? 47%

Topic: Sustainability Challenges and Opportunities

By Philippa Spence

Q: Do you think the Equator Principles have resulted in more sustainable mining practices where EPFIs have provided funding to mine developers?

1. Yes, there is material improvement 27%

2. To some extent, but not as much as expected 71%

3. No, they have not made a material improvement 2%