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Resource- rich countries can’t miss the opportunity of mining – related infrastructure !. Resource-driven countries need. $ 1.3 tn / year. Resource - driven countries have a huge funding gap that extractives industries can help fill. By 2030:. Could meet 9% of the funding gap !.
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Resource- rich countries can’t miss the opportunity of mining – related infrastructure !
Resource-driven countries need $1.3 tn / year Resource - driven countries have a huge funding gap that extractives industries can help fill By 2030: Could meet 9% of the funding gap ! 1 Source Reverse the curse: Maximizing the potential of resource-driven economies, McKinsey Global Institute, December 2013 : Extractive industries will invest $2tn (cumulated)
Closer look to SSA: Funding gap at $31bn / year…. US $ billion annually Source: World Bank
….While in the context of iron-ore mining alone, private investment expected: $45 bn , 2013
“Shared-use” can result in a win-win situation Infrastructure gap in a resource-driven country Opportunities for: • Economies of scale • Economies of Scope • Developmental impacts Shared use allows parallel development of both the mine and the host country Onerous infrastructure development for mines
Whereas the traditional enclave model is costly for all Country
Example: Power self-supply is a loss for all Adequacy of National Supply Extent of Trans. Infrastructure Cost of Grid Power Reliability of Supply Mine self supply is a loss to all In Africa: Source: WB- VCC 7
Of course nuances are needed: costs for sharing infrastructure vary 8
Of course nuances are needed: not all commodities present the same opportunities
Taking all those nuances into account, the potential for shared use is tremendous ! Extractive industries will invest $2tn (cumulated) by 2030 30%shareable between mining industry and other users 70% shareable between operators 1 Source Reverse the curse: Maximizing the potential of resource-driven economies, McKinsey Global Institute, December 2013 : 10