106 - The International Resource Journal

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60 RISK The Chinese are catching on and catching upIn the relaTIvely few years since China movedout into the international arena, its companiesand investors have become global players in theresource industries, notably mining. Unquestionably,they have been and continue to be voraciousin acquiring assets in all corners of theworld. Their reputation is, however, somewhatmixed. In the mining sector, they represent potentialclients for discoveries made by the juniorcompanies, and a source of venture capital in anotherwise depressed market. On the other hand,the Chinese have become a source of concerndue to questionable labour practices, possiblehuman rights violations and dubious environmentalpractices. There is also a pervasive perceptionthat they do not participate in local developmentand fail to contribute to social sustainabilityin the communities where they operate. Collectively,these attributes have created a stereotype:Chinese mining companies as opportunistic and,from a socio-economic and environmental pointof view, ‘bad actors’ seriously out of line with thenorms of corporate behavior adopted by othermembers of the international mining industry.The stereotype is based in large part on ahistoric reality created in Africa, which appearspoised to change.There is increasing evidence that Chinesecompanies and investors are recognising that“Investors have started to askquestions beyond how much is inthe ground, the tax regime and ifthere is government support for aproject. They now want to knowthe level of social risk, its characterand what is being done to manage ormitigate the risk”they have to be seen as responsible social actorsor face serious problems. The best examplesseem to come from Latin America, where a pushback against mining has been underway sincethe 1990s and created difficulties for westerncompanies long before the Chinese arrived onthe scene. It has also been the region that hasprovided some of the most important learning experiences.Peru, in particular, continues to be thecountry with both a high level of social conflictand the source of examples of how social issuescan be successfully managed.Chinese companies have bought intonumerous mining projects in Peru and Ecuadorand found that they could not turn to governmentto resolve social and socio-environmental issues,as it seems had been their expectation. Atprojects such as Rio Blanco and Morococha inPeru, and Mirador in Ecuador, they have had to
FEBRUARY 2013 The International Resource Journal61Ian Thomson Principal and Co-Founder of On Common Ground Consultants Inc.rely on the abilities of non-Chinese managerswho honed their skills in the inherently conflictiveenvirons of the Andes. This has not alwaysbeen an easy experience. Initially, the Chinesestruggled to understand why they could not justmove ahead and build a mine. On the otherside, local managers faced communicatingthe complexity of the issues and how they arebest managed across the barriers of culturaldistance and linguistic difference. However, itis apparent that the Chinese have been quick to“Full social due diligence is emergingas a new norm for Chinese investmentbrokers, putting them ahead of manyof the established western brokerageand finance houses”learn what is required and have swung behindprograms of communications, social investmentand stakeholder participation designed byqualified practitioners. These address projectspecificchallenges and opportunities and are
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EDITOR’S NoteAs our readers will
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IRJ TeamJuliet Langton | Editor | j
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Table of ContentsFEBRUARY 2013 | VO
Page 10 and 11: 10 SECTION TitleNEWS in FOCUS
Page 12 and 13: 12 SECTION TitleNEWS in FOCUS“de
Page 14 and 15: 14 SECTION TitleNEWS in FOCUSminer
Page 16 and 17: 16 COVER FEATURE Mining in Latin A
Page 24 and 25: may del24 Brazil Political impasse
Page 26 and 27: 26 Brazil Political impasse may de
Page 28 and 29: 28 BRAZIL Miners under the spotlig
Page 30 and 31: 30 BRAZIL Miners under the spotlig
Page 32 and 33: 32 THE RESOURCE CHANNEL Is obesity
Page 40 and 41: 40 MINERALS Lithium in 2013040Lith
Page 42 and 43: 42 MINERALS Lithium in 2013Chris B
Page 44 and 45: 44 MINERALS Lithium in 2013covery
Page 46 and 47: 46 MINERALS Lithium in 2013
Page 48 and 49: 48 MINERALS Cobalt Development Inst
Page 58 and 59: 58 RISK The Chinese are catching o
Page 62 and 63: 62 RISK The Chinese are catching o
Page 64 and 65: 06Alara ReShifting64 AUSTRALIA Ala
Page 66 and 67: 66 AUSTRALIA Alara Resources
Page 68 and 69: 68 AUSTRALIA Alara ResourcesAll th
Page 70 and 71: Chinalco YCopper ResDeeper undergro
Page 72 and 73: 72 AUSTRALIA Chinalco Yunnan Coppe
Page 78 and 79: 0778 AUSTRALIA Red Mountain Mining
Page 82 and 83: 82 AUSTRALIA Red Mountain MiningRe
Page 86 and 87: 86 AUSTRALIA Red Mountain Miningth
Page 88 and 89: GoldplatUncoveunexpe088
Page 90 and 91: 90 africa Goldplat
Page 92 and 93: 92 africa GoldplatRecover Gold and
Page 94 and 95: 94 africa Goldplat
Page 97 and 98: AFRICAHelvetic SolarContractorsSunn
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FEBRUARY 2013 The International Re
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oalews rollCANADA
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144 CANADA MarathonOwned by a numb
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146 CANADA MarathonDiscover Marath
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148 CANADA MarathonOur experienced
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150 CANADA MarathonPremierServiceT
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152 CANADA MCW Energy Group152MCWE
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154 CANADA MCW Energy GroupOil san
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156 CANADA MCW Energy GroupUTAH’
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158 CANADA MCW Energy GroupShovel-
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160 CANADA MCW Energy GroupMCW has
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Rio VerdeNutrient richFertiliser mi
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164 CANADA Rio Verde
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166 CANADA Rio Verdestates current
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What'shAPPENING 2014-7 Investing in
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Mar20133-6 PDAC 2013 International
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May20135-8 CIM Conference & Exhibit
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July20131-3 The Australian Mine Ven
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176 EVENTS What's Happening 2010Se
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178 EVENTS What's Happening 2010No
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AT THE FOREFRONTOF THE GRAPHENEREVO
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106 - The International Resource Journal

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