Mining and Infrastructure
This chapter argues that the provision of reliable, accessible and affordable infrastructure is one of the main challenges facing mining projects in the Asia-Pacific Region. Infrastructure is one of the most important features of a mining project, as it is the means for transporting minerals and metals to market, and for maintaining access to a mine by staff. However, the high cost of infrastructure and its associated economic, social and political risks means it can strongly influence the feasibility of a mining project. Infrastructure provision is an even bigger problem for junior mining companies, who may not have the budget or experience to implement the infrastructure they need to progress a mining project. The chapter begins by explaining infrastructure and the growth of infrastructure investment in the Asia-Pacific Region in recent years. The chapter looks at the risks associated with infrastructure investment, along with the ways in which governments seek to attract this type of investment. The chapter concludes with an analysis of the present and future challenges of infrastructure investment in the mining industry of the Asia-Pacific Region.
Asian Financial Crisis
Asia-Pacific Economic Cooperation
Chief Executive Officer
Fortescue Metals Group
State Owned Enterprise
- Addison, T., Anand, P. (2012). Aid and infrastructure financing: emerging challenges with a focus on Africa. United Nations University, Working Paper No. 2012/56, Helsinki. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2524546. Accessed 9 June 2013.
- AECOM (n.d.) Tampakan Copper-Gold Project, Philippines - Asia - AECOM. http://www.aecom.com/Where+We+Are/Asia/Mining/_carousel/Tampakan+Copper-Gold+Project,+Philippinespercent3E. Accesed 7 May 2015.
- Asia-Pacific Economic Cooperation. (2014). Annex D - action agenda on promoting infrastructure investment through public-private partnership (PPP). APEC Ministerial Meeting, Beijing. http://www.apec.org/Groups/Committee-on-Trade-and-Investment/~/link.aspx?_id=AFC4C880508F440180F2155C6E29CECD&_z=z. Accessed 6 October 2015.
- Asian Development Bank. (2009). Infrastructure for a seamless Asia. Tokyo. http://www.adb.org/publications/infrastructure-seamless-asia. Accessed 7 March 2015.
- Australian Broadcasting Corporation. (2014). Brockman Mining wins legal bid to access Fortescue Metals Group’s rail infrastructure. http://www.abc.net.au/news/2014-09-27/brockman-wins-legal-bid-to-access-fmg-rail-infrastructure/5773538. Accessed 7 May 2015.
- Bailey, H. (2008). Anvil Hill mine modification to project approval: environmental assessment, Xstrata Mangoola. http://www.mangoolamine.com.au/EN/approvals/Earlypercent20workspercent20modificationpercent20documentation/06_0014_mod1_anvil_hill_ea_mainreport.pdf. Accessed 7 October 2015.
- Bland, B. (2013, January 2). Environment protests hit Sumatra gold mine. Financial Times. http://www.ft.com/intl/cms/s/0/7bce1a92-37a7-11e2-a97e-00144feabdc0.html#axzz44r7o4VFn. Accessed 12 March 2015.
- Dagge, J. (2014, July 17). Rio boss Sam Walsh says business leaders must find how to fund more projects. Herald Sun. http://www.heraldsun.com.au/business/rio-boss-sam-walsh-says-business-leaders-must-find-how-to-fund-more-projects/story-fni0dcne-1226992772849. Accessed 27 February 2015.
- Das, A. (2015, February 18). CIL willing to increase capex for infrastructure investment. Mining Weekly. http://www.miningweekly.com/article/cil-willing-to-increase-capex-for-infrastructure-investment-2015-02-18. Accessed 27 February 2015.
- Duffy, A. (2012). Mining infrastructure: from pit to port. Mining Australia. http://www.miningaustralia.com.au/features/mining-infrastructure-from-pit-to-port. Accessed 27 February 2015.
- Ernst & Young. (2014). Business risks facing mining and metals 2014-2015. London. http://www.ey.com/Publication/vwLUAssets/EY-Business-risks-facing-mining-and-metals-2014percentE2percent80percent932015/$File/EY-Business-risks-facing-mining-and-metals-2014percentE2percent80percent932015.pdf. Accessed 30 June 2015.
- Esteves, A., Ogorodnikova, V., Putz, C. et al. (2014). Increasing domestic procurement by the mining industry in Central Asia. World Bank. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/06/18/000470435_20140618091347/Rendered/PDF/ACS88340WP0P1331680Box385243B00PUBLIC0.pdf. Accessed 21 March 2015.
- Flyvbjerg, B., Rothengatter, W., Bruzelius, N. (2003). Megaprojects and risk: an anatomy of ambition. New York: Cambridge University Press.Google Scholar
- Fortescue Metals Group. (n.d.). Port and rail infrastructure http://www.fmgl.com.au/our_business/Port_and_Rail_Infrastructure. Accessed 5 March 2015.
- GHD. (n.d.). Infrastructure for the mining industry. http://www.ghd.com/PDF/InfrastructurefortheMiningIndustry.pdfpercent. Accessed 5 March 2015.
- Heber, A. (2013). Mining sector community spending exceeds $34 billion. Australian Mining. http://www.miningaustralia.com.au/news/mining-sector-community-spending-exceeds-$34-billi. Accessed 12 March 2015.
- Helm, D. (2009). Infrastructure investment, the cost of capital, and regulation: an assessment. Oxford Review of Economic Policy, 25(3), 307-326.Google Scholar
- Hepworth, A. (2014, November 12). BHP boss urges investment in trade-related infrastructure. The Australian. http://www.theaustralian.com.au/business/bhp-boss-urges-investment-in-traderelated-infrastructure/story-e6frg8zx-1227119989213. Accessed 27 February 2015.
- Khan, S. (2014, March 5). Tricky to decide, easy to keep hanging. Daily Star. http://www.thedailystar.net/tricky-to-decide-easy-to-keep-hanging-37401. Accessed 25 May 2014.
- KPMG. (2015). Future of procurement in Asia-Pacific: keeping pace with challenges in the energy & natural resources sector. https://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Documents/future-of-procurement-in-asia-pacific.pdf. Accessed 3 May 2016.
- Lannin, S. (2014, May 16). First tracks laid in Roy Hill project in WA’s Pilbara. Australian Broadcasting Corporation. http://www.abc.net.au/news/2014-05-16/first-tracks-laid-in-roy-hill-project/5457764. Accessed 13 March 2016.
- Larson, A. (2015). Cambodia’s largest hydropower plant begins operation. Power Magazine. http://www.powermag.com/cambodias-largest-hydropower-plant-begins-operation/. Accessed 6 March 2015.
- Levy, B., Spiller, P. (1994). The institutional foundations of regulatory commitment: a comparative analysis of telecommunications regulation. Journal of Law Economics and Organisation, 10(2), 201-246.Google Scholar
- Manning, P., Remeikis, A., (2013, March 13). Single rail deal to Galilee Basin. Sydney Morning Herald. http://www.smh.com.au/business/single-rail-deal-to-galilee-basin-20130311-2fwcn.html. Accessed 5 March 2015.
- McKellar, R. (2010). A short guide to political risk. Surrey, England: Gower.Google Scholar
- Messenger, B. (2015). Major new waste to energy & biowaste projects for Everbright in China. Waste Management World. http://www.waste-management-world.com/articles/2015/01/major-new-waste-to-energy-biowaste-projects-for-everbright-in-china.html. Accessed 6 March 2015.
- Mindoro Resources. (2013). TVI Pacific Inc. and Mindoro Resource Ltd. announce robust economics for the Agata High-Iron DSO project. http://www.mindoro.com/s/PressReleases.asp?ReportID=602317. Accessed 15 September 2015.
- Minerals Council of Australia. (2013). Submission to the Productivity Commission’s inquiry into public infrastructure. http://www.pc.gov.au/__data/assets/pdf_file/0020/131735/sub070-infrastructure.pdf. Accessed 5 May 2015.
- Om, J. (2010, June 10). Taxpayer funds sought from new rail owner. Australian Broadcasting Corporation. http://www.abc.net.au/worldtoday/content/2010/s2923550.htm. Accessed 6 March 2015.
- Peña, Z. (2015, March 5). P370-B PPP projects up for P-Noy OK. Philippine Star. http://www.philstar.com/business/2015/03/05/1430021/p370-b-ppp-projects-p-noy-ok. Accessed 6 March 2015.
- Public-Private Infrastructure Advisory Facility. (2009). 2009 Annual Report. Washington. http://documents.worldbank.org/curated/en/2009/01/11362156/public-private-infrastructure-advisory-facility-ppiaf-annual-report-2009. Accessed 6 March 2015.
- Ramamurti, R., Doh, J. (2004). Rethinking foreign infrastructure investment in developing countries. Journal of World Business, 39(2), 151-167.Google Scholar
- Rathbone, M., Redrup, O. (2014). Developing infrastructure in Asia-Pacific: outlook, challenges and solutions, PricewaterhouseCoopers, Singapore. http://www.pwc.com/sg/en/capital-projects-infrastructure/assets/cpi-develop-infrastructure-in-ap-201405.pdf. Accessed 4 January 2015.
- Sader, F. (2000). Attracting foreign direct investment into infrastructure: why is it so difficult? Occasional Paper No. 12, Foreign Investment Advisory Service. http://elibrary.worldbank.org/doi/abs/10.1596/0-8213-4602-4. Accessed 5 February 2014.
- Stern, J., Holder, S. (1999). Regulatory governance: criteria for assessing the performance of regulatory systems. Utilities Policy, 8(1), 33-50.Google Scholar
- Sturmer, J. (2015, February 15). Protestors chain themselves to land clearing equipment at Maules Creek coal mine site. Australian Broadcasting Corporation. http://www.abc.net.au/news/2015-02-15/activists-disrupt-maules-creek-coal-mine/6109164. Accessed 12 March 2015.
- The Government of the Philippines (2013). The Philippine Amended BOT Law R.A. 7718 and its revised implementing rules and regulations (IRR). http://ppp.gov.ph/wp-content/uploads/2015/01/BOT-IRR-2012_FINAL.pdf. Accessed 5 April 2015.
- The Heritage Foundation. (2015). Country rankings: world and global economy rankings on economic freedom. http://www.heritage.org/index/ranking. Accessed 11 March 2015.
- Transparency International. (2014). 2014 Corruption Perceptions Index. http://www.transparency.org/cpi2014/results. Accessed 11 March 2015.
- Validakis, V. (2013, May 31). FMG puts $576m price tag on rail access. Australian Mining. http://www.miningaustralia.com.au/news/fmg-puts-$-576m-price-tag-on-rail-access. Accessed 27 February 2015.
- Vernon, R. (1971). Sovereignty at bay: the multinational spread of U.S. enterprises. New York: Basic Books.Google Scholar
- Woods, G. (2015). Maules Creek protestors blockade to stop mine construction. Greenpeace. http://www.greenpeace.org/australia/en/mediacentre/media-releases/climate/Maules-Creek-protestors-blockade-to-stop-mine-construction1/. Accessed 7 October 2015.
- World Bank. (2014). East Asia and Pacific Region - private infrastructure projects. http://ppi.worldbank.org/explore/ppi_exploreRegion.aspx?RegionID=2. Accessed 4 March 2015.
- World Bank. (2013). Worldwide governance indicators. The World Bank DataBank. http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=Worldwide-Governance-Indicators. Accessed 11 March 2015.