Leveraging Mining-Related Infrastructure Investments for Development
To be beneficial for a country’s development, non-renewable resource extraction should be leveraged to build long-term assets, such as infrastructure, that will support sustainable and inclusive growth. This is especially critical for countries facing an infrastructure-funding gap (e.g. the World Bank’s Africa Infrastructure Country Diagnostic has estimated that Africa faces an annual infrastructure funding gap of US$31 billion); leveraging extractive industry-related investment could help fill this gap. Historically, natural resource concessionaires have adopted an enclave approach to infrastructure development, providing their own power and transportation services to ensure that the basic infrastructure needed for their operations is reliably available.
The initial phase of this project consisted of a worldwide survey of case studies of shared use of mining-related infrastructure. Four Policy Papers deliver the findings for 1) mineral railways and ports, 2) power infrastructure, 3) water infrastructure, and 4) internet and telecommunications.
World Bank collaboration on mine-power synergies study in Sub-Saharan Africa
In 2012-2013, CCSI collaborated with the World Bank to systematically assess the potential and challenges of power-mining integration in Sub-Saharan Africa (SSA). To that end, CCSI built a new database, the Africa Power-Mining Database 2013: it contains 455 projects in 28 SSA countries with a minimum of USD 250 million gross value of ores reserves, in all project phases, spanning the years 2000-2020. This database estimates the demand for power in 2000, 2012 and 2020 and identifies the range of past, present and future power sourcing arrangements for the 455 projects. The study also includes an assessment of the different institutional settings and policy instruments that have the potential to lead to better integration between mines’ investment plans in power infrastructure and governments’ plans for national power development. The World Bank final publication is available here, and the database is available here. Both were launched at Mining Indaba 2015 (see press release).
Australian Government grant to develop a shared-use framework for mining-related infrastructure
In April 2013, CCSI was then awarded a grant from the Australian Government to develop an economically, legally and operationally rational framework to enable shared use of mining-related infrastructure, including rail, ports, power, water, internet and telecommunications. The framework was obtained by distilling best practice principles from infrastructure developments around the world, guided by expert opinion. It has most recently been refined through in-depth case studies in Liberia, Sierra Leone and Mozambique, although its principles aim to be of general relevance to all resource rich African countries. The Framework to Approach Shared-Use of Mining Related Infrastructure was finalized in March 2014.
In November 2013 an expert workshop co-hosted by CCSI, the Natural Resource Charter and the Sustainable Development Solutions Network, was held to get feedback on the framework from mining-related infrastructure experts from academia, mining companies, governments, and donors and to discuss ways on how it could be improved. A summary of the discussions at the expert workshop is available here. The presentations from the workshop, revised to reflect the feedback, are available here: introductory slides, power, internet and telecommunications, rail and ports, and water.
World Bank grant on cross-border resource corridors and regional integration
In 2014, CCSI was awarded a grant from the World Bank to determine to what extent cross-border resource-based transport and energy corridors can be a catalyst for regional integration. The report explores in depth whether four African corridors have/can lead to regional integration. These consist of the Nacala railway corridor (Mozambique-Malawi), the Northern Corridor (Great Lakes Countries – Kenya), the Simandou /Nimba railway corridor (Guinea-Liberia) and the Lapsset pipeline and railway corridor (Uganda-South Sudan-Ethiopia-Kenya). Lessons learned from international experiences are also highlighted, including from the Arctic rail corridor (Sweden-Norway), Antofogasta rail and port corridor (Chile-Bolivia), the GSBOL gas pipeline (Brazil-Bolivia), the Baku–Tbilisi–Ceyhan oil pipeline (Azerbaijan-Georgia-Turkey), Maputo rail and road corridor (South Africa-Mozambique) and the China-Kazakhstan interconnection at the Korgas Pass. The World Bank published the report in February 2016. In this article, the importance of the implementation of cross-border corridors for the participation of resource rich countries in the Global Value Chains is highlighted.