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Trevor Manuel

Australian minerals and resource companies have more projects in Africa than in any other region of the world with total current and projected investment estimated to be well over US$50 billion.

Australia's Senior Trade Commissioner in Africa, Greg Hull, says there are at least 230 Australian companies with approximately 650 projects in mining exploration, extraction and processing spread across 42 countries in Africa.

"This is a terrific growth story and one that reflects not only Africa's growing political stability and economic resilience but also the pioneering, result-oriented nature of Australian mining and mining services companies," said Hull.

Hull said these companies bring advanced technology and high standards of occupational health and safety. "Above all, they are committed to working in partnership with local communities, including through upskilling local workforces," he said.

According to the Australian High Commissioner to SA, Ann Harrap, not only are Australian companies expanding the size and geographical spread of their natural resource interests on the continent but so too is the Australian Government.

"Australia has diplomatic relations with all 54 countries in Africa. Over two-thirds of those countries have mining activities underway and there is plenty of untapped potential in the sector. As a resource-rich country with substantial experience in both mining and development, Australia wants to assist African countries derive real and sustainable benefit from their mining sectors", Harrap said.

Under the Australian Government's Mining for Development Initiative, launched in October 2011, Africa will be a focus of Australia's expanding work in this area. The initiative is aimed at improving the governance of mining resources, transparency and ensuring the benefits support sustainable development in Africa.

"We are keen to work closely with African countries that are committed to effective development of their mining industries and to focus on strengthening the capacity of governments to manage and regulate the sector", Harrap said.

Harrap was at the indaba with six other Australian High Commissioners and Ambassadors posted in sub-saharan Africa, their Senior Trade Commissioner, the head of AusAID in Africa, and several hundred Australian companies.

"This visible and active presence at Indaba by team Australia is not only a reflection of our international leadership in the resources sector but also of Australia's growing engagement with the continent," she said earlier this week.

And the enhanced engagement comes at a time when Africa is 'on the move' and the environment has never been better to realise Africa's opportunity, she noted.

"Africa continues to experience a significant resource boom - about two-thirds of African countries have mining activities underway; more than half the countries on the continent regard mining as an important economic activity and are producing minerals for an international market outside Africa; and there is plenty of untapped potential in the sector," she said.

Africa contains around 12 per cent of the world's petroleum and 30 per cent of global mineral reserves. Commercial exploration expenditure in Africa has outstripped global increases, rising from US$300million in 2000 to more than US$2 billion in 2008.

"This positive resources picture is coupled with more stable political environments and a greater openness to foreign investment. It also comes at a time of strong economic turnaround. African economies have shown strong resilience to the global economic and financial crisis and the IMF still predicts that four of the world's top 10 fastest-growing economies in the next five years will be from Africa," she noted.

As the World Bank has pointed out, she said, Africa could be on the brink of an economic take-off, much like China was 30 years ago and India 20 years ago. "Even the Economist magazine, which a decade ago described Africa as the 'hopeless continent', recognises that Africa is 'rising'," she added.

She said, however, managing a booming mining sector has its challenges.

"Without effective financial management and macroeconomic planning and without appropriate environmental standards, labour laws and social responsibility standards, the boom can be short-lived and benefit few.

"Australia brings a unique perspective relative to most countries looking to engage in Africa and we know about managing booms and busts! We have over 100 years experience in harnessing natural resources to promote our own economic growth. Starting with the gold rushes of the 19th century, through the iron ore and nickel booms of the 1960's, the growth of the coal industry and the current high demand for minerals, particularly from China, mining has played an important part in my country's development," she said.

"The vast majority of Australian mining companies are responsible and committed to the highest standards of occupational health, safety and the environment. They bring advanced technology and corporate responsibility. Above all, they deliver partnerships with local communities, including through the upskilling of local workers.

"Of course, Australian companies want to make a profit for their business. But they have built a strong reputation on the continent, including for the open and transparent way in which they deal with African governments."

She said while gold is the main mineral of interest, there is also considerable interest in uranium, copper, coal, platinum, diamonds and iron ore. A number of Australian companies are on track to begin production in mines across the continent in 2012. Australian companies are also active in delivering a range of mining services, including engineering, consulting and analysis.

"Following discussions with our African partners it is clear there are real opportunities for Australia to share its experience in managing mineral wealth effectively and sustainably. Working to deliver the real benefits from mining is now an important part of Australia's growing development cooperation program in Africa," she said.

"Mining can be a tough game - we have learnt that in Australia from experience. But we have also reaped the rewards from effective, equitable and sustainable management of our mineral resources sector. We want to see the same happen in Africa and we are willing to offer our practical support to ensure it does," she concluded.