Legal Provisions on Shared Use of Mining Infrastructure : Rail, Port, and Power

Many developing countries face an infrastructure funding gap: the public sector is unable to finance the construction of vital public works, such as railroads, ports, and power infrastructure. Extractive industry investments in infrastructure can help to narrow the gap. Non-renewable resources serve as a foundation to construct long-term infrastructure assets that support sustainable development. The rub lies in the fact that mining companies have traditionally followed an “enclave model,” building infrastructure for their exclusive use. Although mining infrastructure might eventually be owned by the state, such as through a build–operate–transfer arrangement, the enclave model causes governments to lose the opportunity to take advantage of synergies between the infrastructure and larger national development plans. In turn, shared-use mining infrastructure leverages the investments made in a mining operation’s infrastructure to expand benefits to national and regional communities. This paper looks at legal provisions related to shared-use mining infrastructure to support governments, the private sector, and communities in capitalizing on those synergies