Complementary Development between China and Sub-Sahara Africa: Examining China’s Mining Investment Strategies in Africa

China’s recent national and international regional development strategies emphasize both the deepening of the domestic market and the exploration of new markets and resource suppliers to support China’s industrialization. The cooperation with, and investment in, Africa has become an integrated part of China’s international regional development strategy. Investment in Africa is often the result of a decision process that requires balance among local complex political, economic, social, and geological conditions. Proper decision support analysis is the key for success or failure of complementary development. Based on location theories, the current study analyzes China’s mining investment in Africa and derives a set of indicators to form the basis for evaluating China’s investment strategies in the mining industries in Africa. A multi-criteria decision making (MCDM) approach, the VIKOR method, is applied to evaluate six African countries based on this set of indicators. Results suggest that while resource abundance and value are important factors for mining investment decisions, political stability and local legal system restrictions are weightier in the decision-making process. China’s outward foreign direct investment (OFDI) in mining industries in Africa is more inclined to countries with stable political environment, resource endowment and greater value advantage so that both parties can maximize the benefits from such investment.

Defining Uncertainty: Comparing Resource/Reserve Classification Systems for Coal and Coal Seam Gas

Transparent, objective, and repeatable resource assessments should be the goal of companies, investors, and regulators. Different types of resources, however, may require different approaches for their quantification. In particular, coal can be treated both as a solid resource (and thus be mined) as well as a reservoir for gas (which is extracted). In coal mining, investment decisions are made based on a high level of data and establishment of seam continuity and character. The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) allows deposits to be characterised based on the level of geological and commercial certainty. Similarly, the guidelines of the Petroleum Resource Management System (PRMS) can be applied to coal seam gas (CSG) deposits to define the uncertainty and chance of commercialisation. Although coal and CSG represent two very different states of resources (i.e., solid vs. gaseous), their categorisation in the JORC Code and PRMS is remarkably similar at a high level. Both classifications have two major divisions: resource vs. reserve. Generally, in either system, resources are considered to have potential for eventual commercial production, but this has not yet been confirmed. Reserves in either system are considered commercial, but uncertainty is still denoted through different subdivisions. Other classification systems that can be applied to CSG also exist, for example the Canadian Oil and Gas Evaluation Handbook (COGEH) and the Chinese Standard (DZ/T 0216-2020) and both have similar high-level divisions to the JORC Code and PRMS. A hypothetical case study of a single area using the JORC Code to classify the coal and PRMS for the gas showed that the two methodologies will have overlapping, though not necessarily aligned, resource and reserve categories.

“This Mine is for the Entire Casamance Coastline”: The Politics of Scale and the Future of the Extractive Frontier in Casamance, Senegal

As evidenced by the widespread controversy surrounding an otherwise small-scale mining investment pending in Casamance, Senegal, uncertainty shapes the extension of the extractive frontier. Fent argues that amid this uncertainty, different actors are able to politicize or depoliticize extractive investments through the work of scaling. Opponents cast the project as part of larger-scale, longer-term extraction, linking it with regional narratives. By contrast, state and corporate actors depoliticized the mine by emphasizing its limited extent and downscaling conflict to the local level. This demonstrates the conflictual processes through which extractive frontiers are realized—and resisted—through both space and time.

Environmental risk evaluation of overseas mining investment based on game theory and an extension matter element model

Taking into account the limitations of the single weighting method presently used for the environmental risk evaluation of overseas mining investment, an improved extension evaluation method based on game theory was developed. The method was then applied to real data from the Philippines and used to establish the congener element object and classical domain of the environmental risk of mining investment in the Philippines, based on extension matter element theory. The optimal index weights, based on a balance of subjective and objective results, were obtained from game theory, the analytic hierarchy process, and entropy weight theory. This enabled calculation of the association function values of evaluation indexes in the Philippines and the environmental risk level of overseas mining investment. Finally, given the weighting and association function values, the environmental risk level of mining investment in the Philippines was determined to be level II (higher risk). These results show that the proposed model is effective for evaluating the environmental risk of overseas mining investment.

State policies may discourage Mexico mining investment

Significance The government claims the mining firm and its Mexican subsidiary, Primero Empresa Minera, owe around MXN11bn (USD534mn) in taxes; First Majestic claims the government is violating the terms of its Advance Pricing Agreement and failing to follow procedures established in double taxation treaties. Impacts The economy minister has voiced support for mining, but is unlikely to contradict AMLO’s stance in such a high-profile case. The government accuses the firm of using the US-Mexico-Canada Agreement to avoid its tax obligations, but will not seek amendments. Some congress members have called for lithium industry nationalisation, but nationalisation of other areas of the sector remains unlikely.

New Peru mining investment hopes may bring conflicts

Significance Opposition to mining, sometimes violent, has proved a deterrent to investment. As mineral prices, especially for copper, have increased substantially, the mining ministry hopes to raise the threshold for new investment this year and next. Impacts The offer of cash will do little to resolve existing disputes over mining. The scale of new investment will be determined primarily by anticipated patterns of demand. In the medium term, there will be a shortfall in new mining projects once those under construction come on stream.

IMPLEMENTATION OF ARTICLE 3 LAW NUMBER 4 OF 2009 CONCERNING MINERAL AND COAL MINING IN THE GRANTING OF EXPLORATION MINING BUSINESS LICENSE

Indonesia is a country rich in natural resources. Therefore, the Government isexpected to be able to manage these natural resources with the aim of people's welfare in accordance with the mandate of the Constitution of the Republic of Indonesia 1945 as stipulated in Article 33 paragraph (3) which reads "The Earth, water and natural resources contained therein are controlled by the state and used for the greater prosperity of the people ". Article 3 of Law Number 4 Year 2009 concerning Mineral and Coal Mining provides guidelines for the government in the implementation of mining business activities and to support the implementation of licensing of mining business activities. The issue of how to implement the granting of exploration mining business licenses based on Article 3 of Law No. 4 of 2009 on Mineral and Coal Mining in Lampung Province and how to supervise mining business activities in Lampung Province. The method used uses normative and empirical juridical research. The implementation of the granting of exploration mining business licenses based on Article 3 of Law No. 4 of 2009 on Mineral and Coal Mining in Lampung Province has been running but not yet maximal because the permit process is too long so that the purpose of the implementation of mining business activities is not achieved. The suggestion is that the license for exploration mining activities must be carried out by one government agency / agency, in order to facilitate the process of obtaining the permit in order to support the effectiveness of mining activities and the cycle of domestic mining investment, especially in Lampung Province.