Foreign Mining Investment Law: The Cases of Australia, South Africa and Colombia

222 Pages·2016·2.34 MB·English

by  Richard W. Roeder (auth.)

Richard W. Roeder
Foreign Mining
Investment
Law
The Cases of Australia, South Africa and
Colombia
Foreign Mining Investment Law
ThiSisaFMBlankPage
Richard W. Roeder
Foreign Mining Investment
Law
The Cases of Australia, South Africa
and Colombia
RichardW.Roeder
Rosenheim,Germany
ISBN978-3-319-31216-3 ISBN978-3-319-31217-0 (eBook)
DOI10.1007/978-3-319-31217-0
LibraryofCongressControlNumber:2016940845
©SpringerInternationalPublishingSwitzerland2016
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Acknowledgments
ThisbookisaresultofresearchsupervisedbyProfessorDr.StephanHobe,LL.M.
(McGill), chair of Public International Law, European Law, and European and
InternationalEconomicLawandmanagingdirectoroftheInternationalInvestment
LawCentreattheUniversityofCologne,Germany(http://www.iilcc.uni-koeln.de),
betweenJanuary2012andSeptember2015.
ThisvolumeincludesresearchundertakeninBrisbaneandCanberra,Australia,
specifically at the University of Queensland, Brisbane; Donezk and Lugansk,
Ukraine; Johannesburg and Cape Town, South Africa, specifically at the Mining
INDABA and the University of Cape Town; Bogota and Medellin, Colombia,
specifically at the Universidad Nacional de Colombia; and at the International
InvestmentLawCentreoftheUniversityofCologne,Germany.
Iowemyspecialgratitudetomyfather,RainerR€oder,forbeingsuchaconstant
sourceofmotivationtometofinishthisproject.
I owe my gratitude to Stephan Hobe for his quick and candid responses to my
questions and him and Marc Bungenberg for allowing me to present at the Inter-
nationalConferenceonPermanentSovereigntyoverNaturalResourcesinJanuary
2013,whichassessedtheevolutionoftheprincipleofpermanentsovereigntyover
naturalresourcesintoaprincipleofcustomaryinternationallaw,aswellasrelated
developmentsoftheUNGeneralAssemblyresolution1803(XVII)ontheprinciple
of Permanent Sovereignty over Natural Resources. This helped me to frame my
thinking,introducedmetoanacademicenvironmentofresearchersinterestedina
similaracademicrealm,andprovidedanearlymilestoneforthisthesis.
To Joern Griebel of the International Investment Law Centre Cologne, for his
insightsandhelpwiththeacademicresourcesoftheInternationalInvestmentLaw
Centre, and Burkhard Sch€obener of the University of Cologne, Germany, for his
suggestionsforthefuturestudyofInternationalMiningInvestmentLaw.
ToTillmannRudolfBraunoftheFederalMinistryofEconomicsandEnergyof
Germany, for supervising my first internship in the field of foreign direct invest-
mentsandhisdedicationtothecausethatinspiredme.
v
vi Acknowledgments
ToFrankLeschhornofRWEAustralia,whoexplainedthetechnicalaspectsof
mining projects to me in words a lawyer was able to understand. To Chantelle
Doerksen,fortheintroduction.
ToMartinKlapperatHopgoodGanim’sResourcesandEnergypracticegroupin
Brisbane, Australia, who has accompanied the development of this thesis with
challenging suggestions and advice and was willing to dedicate his time in the
veryendoftheprojecttomakesurenoneofmyfindingsgotlostintranslation.To
Jonathan Fulcher at HopgoodGanim’s Resources and Energy practice group in
Brisbane, Australia, who introduced me to the importance of issues around the
social license to operate and native title. To both, to be able to work with
HopgoodGanim’s Resources and Energy practice group in 2012 to gain firsthand
experience.
ToSaleemAli,directoroftheCentreforSocialResponsibilityinMiningofthe
SustainableMineralsInstituteoftheUniversityofQueenslandwhosupervisedmy
final thesis of my master’s of international studies with a focus on the interplay
betweenpublic andprivategovernance ofmining projects andwho offered me to
stay on as a visiting scholar to undertake further research after my master’s
wasover.
To Robert Milbourne, professor of the class mining law at the University of
Queensland,forhisinsightsandforsupervisingmypaper“UNGeneralAssembly
resolution1803on‘permanentsovereigntyovernaturalresources’–anAustralian
perspectiveoftoday”thatbecomethebasisformypresentationattheConference
onPermanentSovereigntyoverNaturalResources.
ToTinaHunter,headoftheCentreforInternationalMineralsandEnergyLawat
theUniversityofQueensland,forherinsightsandforpointingoutcrucialliterature.
To Richard Devetak, head of the School of Political Science and International
Studies of the University of Queensland, whose lecture on the purpose of science
motivated me to attempt to define International Mining Investment Law as a
distinctfieldofstudy.
ToJosephHongohforteachingtheclassresolvingdeep-seatedconflictresolu-
tionandforsupervisingmypaper“Conflictsinminingoperations–achallengeof
fairdistributionofbenefits,impactsandrisks”thathelpedtoframemythinkingon
thevariousstakeholdersinvolvedininternationalminingprojects.
ToDavidEarl,manageroftheInternationalInvestmentandTradePolicyUnitof
theForeignInvestmentandTradePolicyDivisionoftheTreasuryoftheCommon-
wealth of Australia and his team, for the dedication to answer my numerous
questions regarding the foreign investment review process in Australia and for
welcomingmeattheTreasuryinCanberrain2013.ToJonRichardson,Australian
highcommissionertoNigeria,fortheintroduction.
ToBruceHarvey,globalpracticeleaderoftheCommunitiesandSocialPerfor-
mancebranchofRioTinto,forhisinsightsonissuesregardingthesociallicenseto
operateandcorporatesocialresponsibilitypoliciesinAustralia.
To Tim Foote for his insight on foreign mining activities of Australian mining
companies.
Acknowledgments vii
To Jon Womersley, former director of the Regulatory Support and Practice of
the Queensland Department of Environment and Resource Management, and his
wife, John Simpson and his wife, and Graeme Lewis and the Rotary Club of
Cleveland,Australia,fortheiradviceandhospitality.
To Mark Leeman and Adrian Deitz of Skadden, Arps, Slate, Meagher & Flom
LLPfortheirinsightsoncurrentlegaldevelopmentsintherealmofforeignmining
investmentsinAustralia.ToLutzZimmerandBerndMayerandmycolleaguesat
Skadden,Arps,Slate,Meagher&FlomLLPwhoallowed metotaketimeforthe
finalizationofthisproject.
To Hanri Mostert of the University of Cape Town for explaining to me the
changes of the mineral ownership and mineral rights ownership from the Mining
Law1991totheMPRDA2002.ProfessorMostert,Ididmybesttogetitright.To
Richard Cramer and Janine Howard for their help with accessing South African
academicresources.
To Eberhard Gschwindt of the European Investment Bank for his insights and
thematerialonAfrica’sminerallawregimes.
ToOtsileMatlouofEdwardNathanSonnenbergsLawFirmforhisinsightson
legal developments in the realm of international mining investments in
SouthAfrica.
To Lisa Chamberlain and Megan Geldenhuys of the University of the Witwa-
tersrand, Johannesburg, for their insights on governance issues relating to natural
resources.
ToJessicavanOnselenofAngloGoldAshantiforherinsightsonissuesregard-
ing the social license to operate and corporate social responsibility policies in
SouthAfrica.
ToSureiyaAdamforherinsightsintheICSIDnegotiationsoftheSouthAfrican
governmentintheearly1990s.
To Michael Schroeder of Old Mutual South Africa for his insights on the
political and business landscape for international mining investments in
South Africa. To him and his wife, the Rotary Club of am Kap, and the Rotary
ClubofCapeTownfortheirhospitality.
To Guillermo Parada of the Radio Universidad Nacional de Colombia for
inviting me to his radio show to discuss International Mining Investment Law
and the introductions that followed. To Thomas Dittrich, alumni of the German
NationalAcademicFoundation,fortheintroduction.
ToMar´ıadelPilarofGestionAmbientalEstrategicaforherinsightsonartisanal
mining.ToDianaArbela´ez-RuizoftheCentreforSocialResponsibilityinMining
fortheintroduction.
ToAna Maria Rodriguez Contreras forher insightson theexecutivebranchof
themineralregulatorsinColombia.
ToTamaraRomeroRestropoofthelawfirmAlianzaW.J.S.A.,forherinsighton
currentlegalissuesforforeigndirectinvestmentsinColombianminingprojects.
To Nathan Monash, vice president, Sustainability of AngloGold Ashanti
Americas,Inc.,forhisinsightsonAngloGoldAshanti’scorporatesocialresponsi-
bilitypolicies.
viii Acknowledgments
To the Rotary Club of Cartagena and the Rotary Club of Bogota Occidente,
specificallytoBeatrizLizarazuforthehospitality.
ToManuelaDollinger,ofthenewspaperM€unchnerMerkur,forherinsightson
naturalresourcesavailableinGermany.
ToOliverKlossforhisinsightsondouble-taxtreaties.
To Raimonda Miglinaite, Astrid Schaffland, Aura Gariela Negret, and Marina
Caldero´nfortheirfeedbackandhelpwithtranslations.
To Thomas Gutschlag and Titus Gebel of the Deutsche Rohstoff AG for a
firsthand mining experience at the Camp Wolfram mine opening in Queensland,
Australia.
To Vladimir Polienko of the Renova Group for his insights from an investor’s
perspective.
To Rotary International for the fellowship that funded the master’s of interna-
tionalstudiesfocusedonconflictsaroundinternationalminingprojectsthatallowed
metoundertakeresearchforpartsofthisthesis.
ToallthosewhoIcouldnotmention.
Tomyfamily,foreverything.
Rosenheim,Germany RichardW.Roeder
February2016
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 SubjectMatterandHypothesis. . . . . . . . . . . . . . . . . . . . . . . 1
1.2 PurposeoftheStudy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.3 Scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.4 Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.5 TheChoiceofAustralia,SouthAfricaandColombia
asJurisdictionstobeAnalysedinDepth. . . . . . . . . . . . . . . . 4
1.5.1 Australia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.5.1.1 OverviewOvertheRegulatoryRegime
forMininginAustralia. . . . . . . . . . . . . . . 5
1.5.1.2 ImportanceofAustraliaintheGlobal
MiningLandscape. . . . . . . . . . . . . . . . . . 6
1.5.2 SouthAfrica. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.5.2.1 OverviewOvertheRegulatoryRegime
forMininginSouthAfrica. . . . . . . . . . . . 7
1.5.2.2 ImportanceofSouthAfricaintheGlobal
MiningLandscape. . . . . . . . . . . . . . . . . . 8
1.5.3 Colombia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.5.3.1 OverviewOvertheRegulatoryRegimefor
MininginColombia. . . . . . . . . . . . . . . . . 9
1.5.3.2 ImportanceofColombiaintheGlobal
MiningLandscape. . . . . . . . . . . . . . . . . . 11
1.5.4 AcknowledgedExemplaryNatureofCaseStudies. . . 12
1.6 Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.7 LineofInquiryandOutlineoftheStudy. . . . . . . . . . . . . . . . 14
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
ix