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%