Engineering & Mining Journal

JUN 2014

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During mid-May, Sam Walsh, CEO, Rio Tinto, spoke at Infrastructure Week in Washington, D.C. The weeklong event discussed solutions, approaches and best practices being developed nationwide to modernize the aging infra- structure in the U.S. Walsh was the keynote speaker at a forum hosted by the International Finance Corp. (IFC), where he discussed the power of innovative partnerships in building infrastructure projects that create growth. "Big infrastructure investments in transportation, power, energy, communications and water are daunting," Walsh said. "They are difficult to achieve in the U.S. and they are even harder in the developing world. Aid alone can't eradicate extreme poverty; broad-based economic growth is its only certain end. To achieve that, we must invest in infrastructure that facilitates trade and commerce." As a global business leader with operations in both the developed and develop- ing world, Walsh has an informed perspective on the need for infrastructure invest- ment and its ability to generate economic growth. He is also a strong advocate for the power of partnerships to achieve mutually beneficial outcomes. That's why he was asked to lead a panel discussion on how development banks, financial markets, the private sector and civil society can bring vital infrastructure to the poorest coun- tries while contributing to global economic growth. Rio Tinto faces many tough engineering challenges in terms of safely getting minerals out of the ground, but it also confronts equally tough challenges in terms of getting minerals to markets. In some cases, there is no existing infrastructure. As a result, the company is one of the leading private investors in, and operators of, infrastructure. This infrastructure brings wider benefit to the communities and busi- nesses that can share it, which unlocks broader-based economic activity that ben- efits entire regions as a whole. Walsh cited Rio Tinto's Simandou iron-ore project (See Leading Development, p. 4) in Guinea as a prime example of where an innovative partnership will also address infrastructure challenges. Rio Tinto is working with the government of Guinea, Chalco, and the IFC to build the mine and establish a consortium to finance, build and operate the infrastructure along what the company is calling the Guinea Growth Corridor. "No single institution can develop Simandou alone," Walsh said. "But an innovative partnership will." The key ingredient to successful partnerships is trust and mutual benefit. Guinea's government recognized that companies like Rio Tinto need regulatory and legal certainty to risk shareholders' money. They have implemented a number of legal changes that substantially improve the country's investment climate. In addition to Guinea's ownership stake in the mine, Rio Tinto will pay a total annual income tax and royalty payments of approximately $1.2 billon, essentially doubling the country's annual revenue intake. It's safe to say that the Simandou project represents a paradigm shift for Guinea—a nation that ranks 178 out of 187 countries on the UNDP's Human Development Index. Without new approaches, Guinea's wealth would remain untapped, and infrastructure for broader economic development would remain unbuilt. Readers can listen to the 1-hour-long panel dis- cussion at: http://live.worldbank.org/infrastructure-week-goes-global. Steve Fiscor, E&MJ; Editor-in-Chief, sfiscor@mining-media.com www.mining-media.com ENGINEERING AND MINING JOURNAL Engineering & Mining Journal , Volume 215, Issue 6, (ISSN 0095-8948) is published monthly by Mining Media, Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining- media.com). Periodicals Postage paid at Englewood, CO, and additional mailing offices. Canada Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: circulation@mining-media.com. Current and back issues and additional resources, including subscription request forms and an editorial cal- endar, are available on the World Wide Web at www.e-mj.com. SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, $82.00, 2 year, $139.00. Outside the USA and Canada, 1 year, $134.00, 2 year, $249.00 sur- face mail (1 year, $191.00, 2 year, $352.00 airmail delivery). For subscriber services or to order single copies, write to E&MJ; , 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of select- ed archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com. POSTMASTER: Send address changes to E&MJ; , P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at copyright.com. EXECUTIVE OFFICE: Mining Media, Inc., 8751 East Hampden, Suite B1, Denver, CO 80231 USA phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com COPYRIGHT 2014: Engineering & Mining Journal, incorporating World Mining Equipment, World Mining and Mining Equipment International. ALL RIGHTS RESERVED. Harnessing the Power of Partnerships 2 E&MJ; • JUNE 2014 F R O M T H E E D I T O R Editor-In-Chief—Steve Fiscor, sfiscor@mining-media.com Managing Editor—Russ Carter, rcarter@mining-media.com European Editor—Simon Walker, simon.emj@btinternet.com Latin American Editor—Oscar Martinez, omartinez@mining-media.com South African Editor—Gavin du Venage, gavinduvenage@gmail.com Australian Editor—John Miller, john@asiaminer.com News Editor-Mining—Joseph Kirschke, jkirschke@mining-media.com Assistant Editor—Jennifer Jensen, jjensen@mining-media.com Graphic Designer—Tad Seabrook, tseabrook@mining-media.com Mining Media International—Editorial Office 11555 Central Parkway, Suite 401; Jacksonville, Florida 32224 USA Phone: +1.904.721.2925 / Fax: +1.904.721.2930 Mining Media International—Corporate Office 8751 East Hampden, Suite B1; Denver, Colorado 80231 USA Phone: +1.303.283.0640 / Fax: +1.303.283.0641 President/Publisher—Peter Johnson, pjohnson@mining-media.com VP-Sales and Marketing—John Bold, jbold@mining-media.com Midwest/Eastern U.S. & Canada, Sales—Victor Matteucci, vmatteucci@mining-media.com Western U.S. & Canada, Sales—Mary Lu Buse, mlbuse@mining-media.com Scandinavia, UK & European Sales—Colm Barry, colm.barry@telia.com Germany, Austria & Switzerland Sales—Gerd Strasmann, info@strasmann-media.de Australia & Asia Sales—Lanita Idrus, lanita@mining-media.com Japan Sales—Masao Ishiguro, ishiguro@irm.jp Indonesia Sales—Dimas Abdillah, dabdillah@mining-media.com Classified Advertising—Norm Rose, nrose@mining-media.com Production Manager—Dan Fitts, dfitts@mining-media.com Steve Fiscor/Editor-in-Chief EMJ_pg02_EMJ_pg02 6/4/14 9:51 AM Page 2

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