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An Update from Roger Staley – CEO

The urgency and competition to implement robust engagements with African countries grows by the day. In previous newsletters, I have argued that the Canadians are eating our lunch, illustrated by the significant number of their global economic treaties. Now, South Korea is following suit.

South Korea joins forces with African Leaders

Just this week, South Korea hosted a first-ever summit with leaders of 48 African nations, where South Korean President Yoon Suk Yeol said South Korea would increase development aid for Africa to $10 billion over the next six years, as it looks to tap the continent’s rich mineral resources and potential as a vast export market.

Reuters covered the Korea-Africa Summit in an article titled “South Korean, African Leaders pledge deeper ties, critical mineral development.” It reported that Yoon Suk Yeol said in his closing remarks that “The Critical Minerals Dialogue launched by South Korea and Africa will set an example for a stable supply chain through mutually beneficial cooperation and contribute to sustainable development of mineral resources around the world.”

Impressively, the South Korean President also pledged to offer $14 billion in export financing to promote trade and investment for South Korean companies in Africa. It is obvious, that if Australia wants to achieve greater economic stability, it needs to follow the Canadian – and now the South Korean – examples of embracing economic ties with key partner countries.

AAMEG Steps Up Advocacy Work with DFAT

In a meeting with the Department of Foreign Affairs and Trade (DFAT) during the 2023 Africa Down Under (ADU) conference, AAMEG Directors, members and I raised the issue of government level inter-country support and investment protection.

In response, DFAT encouraged AAMEG to develop a Submission to the Australian Government, suggesting the means by which Australian companies operating in Africa could be better supported. Subsequent discussions with DFAT and the Australian Critical Minerals Office highlighted that the AAMEG submission needed to focus on the benefits to Australia.  Accordingly, we ensured that our submission focused on delivering against the objectives of Australia’s Critical Minerals Strategy 2023-2030.

I am pleased to announce, that after considerable effort by AAMEG’s Legal & Tax Working Group, we lodged our Submission “Strategic Partnerships for Critical Minerals: Advancing Australia’s 2023-2030 Goals through African Investment,” this week with the Department of Foreign Affairs and Trade (DFAT) on June 4th.

It was gratifying to submit this body of extensive work and research. It marks a significant step forward in AAMEG’s advocacy efforts for the enhancement of Australia’s investment and economic relations with African nations, specifically calling for more Investor-State Dispute Settlement backed Bilateral Investment Treaties with African countries.

A copy of the submission is available at our website, with the back story and strategy below in this newsletter. We welcome comments and suggestions for continuing the momentum of this initiative.  Please email me: [email protected].

A Few Comments on the Federal Budget 2024-25

The Federal Budget 2024-25, and the Future Made in Australia strategy released May 14, acknowledge the contribution made by the Australian resources sector to the Australian economy and, to some extent, they address the major structural and strategic challenges that the Australian economy faces.

However, in my opinion, the Federal Budget and what I interpret as the “Make Australia Great Again” strategy fell well short of what might have been:

• Unsurprisingly, being an Australian budget, it was solely inward looking.
• Even the mentions of foreign investment only refer to other countries investing in Australia, not the other way around.
• This puts us alongside every emerging economy in the world and misses the opportunity to support the EXPORT of Australia’s expertise in mining and mineral processing and our high desire to do the right thing.  Just look at the world-leading ESG programs Australian companies provide in their host communities – they’re on display year after year at the Africa Awards.
• Sadly, the other big focus of the Budget speeches, taxes paid in Australia and what Minister King has delivered, have little or no relevance to Australian explorers and miners whose investment and work is beyond our shores.

We look forward to changing this myopic perspective through our efforts with our Submission to the Australian Government.  In it we recommend the implementation of Bilateral Investment Treaties backed by Investor State Dispute Settlements as a solution to closer political, economic and diplomatic support for all Australian critical minerals businesses, whether they be operating in Australia or overseas.

Africa Awards

We are excited to advise that the Africa Awards are back for 2024. We launched the nomination campaign in April and have already received expressions of interest. If your company or client has implemented or  has continued innovative ESG engagements in their country/s of operation, please let us know so we can start a dialogue towards a nomination and recognition.

Well done, AMEC

Congratulations and thanks to our partner, the Association of Mining and Exploration Companies (AMEC), for its successful campaign to government for the implementation of Critical Minerals Production Tax Credits (PTCs).  To quote AMEC, PTCs will “help make Australia more competitive in the global race to secure critical minerals required for the energy transition.”

The news of the Production Tax Credit scheme approval is an excellent adjunct to our advocacy work for the reinvigoration of Australia’s ties with Africa via Bilateral Investment Treaties with African nations. Together they will indeed “help companies become more competitive on a global scale” as AMEC states.

In Closing

Welcome to our new members, I look forward to seeing you at our upcoming Sundowners and events. If you know anyone within your own network who is interested in becoming a Member, please let us know. Membership types include: Unlisted, Listed, Platinum Partner, Industry Partner and African Country Associate Membership.

The more members we have, the more we can achieve through our pillars of Advocacy, Insights and Connections.

To see the full newsletter, including information on more events in 2024 and an insight into the the 2024 submission to the Australian Federal Parliament, CLICK HERE

Roger Staley
AAMEG CEO