Patience is a virtue: Problems of regulatory governance in the Indonesian mining sector

Mining investment in Indonesia has been at a standstill for a decade. Clearly. international mining companies regard the country as a high risk destination for capital. Yet Indonesia is one of the most highly mineralised countries in the world and has expressed a desire to increase investment in the sector in the coming years. As a first step in this direction the government has introduced a new mineral and coal mining law to replace the highly regarded Contract of Work system. The government argues that this new law will reinvigorate mining investment in the country. This paper suggests that the new mining law will do little to improve the situation. Indeed, it is unlikely that Indonesia will become a preferred destination for mining investment in the foreseeable future. Poor regulatory architecture, endemic corruption, and a lack of institutional capacity continue to be of concern to investors.     

Corporate Social Responsibility and development in Africa: Redefining the roles and responsibilities of public and private actors in the mining sector

This paper revisits the role of Corporate Social Responsibility (CSR), suggesting the usefulness of adopting a holistic and historical perspective. It underlines the importance of taking into account the evolving regulatory frameworks within which mining activities take place in order to consider the changing roles played by the various actors involved, whether multilateral, national or local, public or private. In this broad context it then becomes possible to revisit issues of legitimacy, responsibility, and accountability, which CSR strategies aim to address. The article draws attention to the shortcomings of strategies, whether bilateral or multilateral, public or private, which, in an attempt to respond to problems of risk and legitimacy faced by mining companies, have put forward measures in the name of CSR that do not address the origins that give rise to such problems and, in so doing, tend to mask the very nature of the difficulties at hand. The analysis leads to quite different conclusions as compared to those that result from the adoption of a shorter term and investment-led perspective.     

Metalliferous sediments in the Atlantis II Deep—Assessing the geological and economic resource potential and legal constraints

Projected increases in demand and thus increasing metal prices have brought the exploration and exploitation of marine mineral resources back into focus. The Atlantis II Deep, located in the central Red Sea between Saudi Arabia and Sudan, is one of the largest marine sulfide deposits known, with high concentrations of metals such as zinc, copper, silver and gold. However, little is known about the economic potential of marine minerals as well as the legal constraints. Our geological assessment shows that the deep is similar in grades and scale to large land-based deposits. Its economic potential is far from negligible. The total present value of possible gross revenues for the four metals zinc, copper, silver and gold ranges from 3.03 to 5.29 billion US$, depending on the assumptions made concerning future price development, mass calculation and discount rate. From a legal perspective, a general duty to cooperate in the exploration and exploitation of non-living resources located in disputed maritime areas is identified in both customary international law and in UNCLOS. It is submitted that a joint development agreement is one means of ensuring compliance with this duty in general and in the case of the Atlantis II Deep in particular.     

Pork knocking in the land of many waters: Artisanal and small-scale mining (ASM) in Guyana

The growth of artisanal and small-scale mining (ASM) in Guyana has received little attention in the literature, despite its rapid growth and now central importance in this small country's socioeconomic fortunes. Although the activity in Guyana shares commonalities with ASM activity elsewhere in the world, it also displays some unique characteristics. This article builds upon existing debates and current issues surrounding Guyanese ASM. A lack of baseline data and research on the dynamics, underlying forces and various outcomes of the ASM sector has acted as a significant constraint on the regulation and development of the sector in a completely desirable fashion. This has been the result of, but has also been exacerbated by, the ineffective nature of intervention, enforcement and assistance. This paper aims to demonstrate and argue for the need for developing much clearer understandings of and effective interactions with the ASM sector in Guyana. Such all developments are the more pressing given future policies, which may represent potentially sizeable challenges for the continued vibrancy of ASM operations.     

Imperatives for attracting investment and technology in the Indian mining sector

In India, the mineral resource inventory and the production of a large number of important minerals have registered significant increases during the last few decades. Yet the country continues to be a net importer of many high value and scarce minerals and metals, like gold, diamond, and several base metals. Exploration and development of the resources of these minerals are technology- and capital-intensive. To bring technology and capital through foreign direct investment (FDI) into the Indian mineral sector, it is imperative to lay stress on: accurate resource estimation and categorization, as well as realistic projection of the true values; rationalization of legislative measures based on R&D studies and reorganization of the implementation machinery; conducive tax structure; notification of acts and rules applicable to offshore mineral resources; time-frames for granting licences and leases; encouragement to labor productivity by rationalizing labor laws; reforms in the monetary system to increase market competitiveness of Indian minerals; and judicial reforms. FDI in the Indian mineral sector is important to firm up the knowledge-base of mineral resources and their optimum exploitation.     

Resource abundance and financial development: Evidence from China

In this paper, we extend the debate on the resource curse by focusing on a new mechanism. Theoretically, resource abundance may have a negative influence on financial development by impacting trade openness, the demand for financial reforms, social capital accumulation and productive investments. Using provincial panel data of China, the empirical analysis confirms such a negative link between mineral resource abundance and financial development. The resource-rich regions tend to have a slower pace of financial development than resource-poor ones. Since the positive relationship between financial development and long-run growth is also confirmed by the analysis, our findings suggest that financial development constitutes an important mechanism through which resource abundance can impact economic performance.     

Promoting ecological sustainable planning for natural stone quarrying. The case of the Orosei Marble Producing Area in Eastern Sardinia

This paper presents an analysis of the main environmental impact factors (noise, vibration, fumes, dust, vehicle traffic) associated with marble quarrying and processing in the Orosei industrial area and their effects. Solutions are also proposed to prevent, mitigate and, where possible, eliminate the impact on the environment. Using three-dimensional topographic models, the authors simulated quarry and industrial processing development, with projections over the next 10, 30 and 50 years. The aim of these simulations was to establish land management planning guidelines for the optimal and environmentally sustainable development of the Orosei Marble industrial area. Lastly, careful quarry development planning is important both for enhancing LCA and for improving production processes through sustainable technologies that yield green label products meeting environmental performance standards.     

Aggregates in England—Economic contribution and environmental cost of indigenous supply

Aggregates represent one of the largest material flows in the UK economy; however, the importance of these minerals in underpinning economic activity is frequently not recognised. Features such as the spatial imbalance between resources and demand centres, exacerbated by changes in demographics and public perception, are placing increased pressure on the planning system to maintain supply. This paper sets out the direct and indirect economic contributions made by the indigenous aggregates industry to the English economy through Gross Value Added and employment sustained. It describes the key role of aggregates in construction activities, assesses the links between infrastructure development and economic growth. In 2005, aggregates extraction directly contributed £810 million of Gross Value Added to the English economy. Primary aggregates are, however, extracted at a cost to the environment and this cost, based on amenity value reduction, is estimated by updating previously published contingent valuation data. Estimates for the costs associated with carbon dioxide emissions are derived from values published by the European Union and, separately, by the UK Government. These two elements combined result in an environmental cost of indigenous extraction of £445 million in 2005. Additionally, an examination of the potential for a significant increase in the level of aggregate imports into England is made and the consequences assessed. This includes an evaluation of shipping costs and port capacity, and concludes that there are significant barriers to any substantial increase in the level of aggregate imports into England. As a consequence, indigenous supply is likely to predominate into the foreseeable future.     

Sustainable development in the Clean Development Mechanism: the role of Designated National Authority in China and India

The Clean Development Mechanism (CDM) emerged under the Kyoto Protocol to facilitate collaboration between developed and developing countries in order to mitigate greenhouse gases. The CDM allows developed countries to receive credits towards meeting their obligatory targets by investing in emission reduction projects in developing countries. The countries are required to set up a Designated National Authority (DNA) to approve the CDM projects. This paper examines the role of the DNA in ensuring sustainable development, using the empirical case of China and India. Three aspects of the DNA's role are examined: the institutional structure, the policy context and the CDM project market. All three aspects highlight the important role of the DNA in meeting the countries' sustainable development priorities.