The client, a private sector body drawn representing international mining companies, was looking for evidence to support its government engagement strategy.
Specifically, they wanted to better understand the economic potential of mining, best practices in relation to responsible and sustainable mining, and the impact of national governmental policy and regulation on mining sector investment.
In this context, CRU were engaged to help understand the following issues and questions:
- What is the current and potential of hard rock and bulk commodity mining, including resource endowment, production and investment?
- What is the direct and indirect economic contribution of the sector across key Asia Pacific countries?
- What are current best practices in for responsible and sustainable mining, both socially and environmentally?
- How has policy and regulation shaped investment in the sector?
Methodology
Drawing on CRU’s expertise in both the mining industry and related public policy spheres (and employing a sophisticated mix of qualitative and quantitative research techniques), we undertook a comprehensive review of the mining sector across a wide sample of countries region.
CRU studied a list of major mining projects in the region – past and future – to understand the historical and potential contribution of the sector in terms of investment and export earnings and the role of different fiscal and regulatory public policies in shaping outcomes.
We analysed, in detail, the wider economic impacts of mining sector activities, including, for example, through an informed assessment of site level production and employment together with wider “multiplier” effects for the local economy.
CRU also undertook a series of case studies into key best practices in socially responsible and sustainable mining. These provided key insights across a diverse range of operational practices including environmental, social and health impact assessment frameworks and management systems.
Outcomes and recommendations
We identified substantial opportunities to increase the economic benefits from mineral resources across a broad sample of countries in the Asia Pacific reason, and a series of key issues holding back stronger performance in the sector, including mining sector policies and infrastructure constraints.
Our research showed, for example, that restrictive licensing regimes relating to exploration, as well as unstable and – in some cases – highly burdensome fiscal and regulatory regimes bearing on mineral extraction were materially impeding industry investment.
Our specific recommendations included a programme of education for host governments on fundamental aspects of mining; and a more tailored set of policy approaches to managing developmental and operational issues which accounts for project specific issues, risks and opportunities (rather than adopting a one-size-fits all template for the industry).
