The Mining for Development Initiative

This article has been reproduced with the permission of the author.

Issue: The AusIMM Bulletin, February 2012 edition
Feature: Africa
Images: 1

The Mining for Development Initiative
by Robin Evans MAusIMM, Deputy Director, Education and Australian Capability, International Mining for Development Centre

Introduction

In October 2011, during the lead up to the Commonwealth Heads of Government Meeting (CHOGM), Prime Minister Julia Gillard announced a new four year A$120 million Mining for Development Initiative as part of Australia’s overseas aid program. The initiative is recognition of the significant role that mining operations can play in providing developing countries opportunities to generate economic growth to underpin their development objectives. At the same time, it emphasises the importance of governance of all aspects of resource developments, and the involvement of a range of stakeholder groups in order to achieve the desired outcomes.

There has been a long-standing debate about the factors that affect the ability of countries to use their mineral resources to achieve development outcomes, including the ‘resource curse’ hypothesis (eg Davis and Tilton, 2005). More recently the International Council on Mining and Metals has undertaken a project on Resource Endowment (ICMM, 2004-2011), which has focused on governance regimes and frameworks and their application in various countries in a series of case study analyses. Much of this work will be familiar to AusIMM members, many of whom have worked at some point of their careers in developing country contexts. It is also noteworthy that many Australian educational institutions, including the principal mining industry-related universities, have been actively involved in developing linkages and teaching in this area, as highlighted by David Laurence in his article in the October 2011 edition of The AusIMM Bulletin. Several universities are currently delivering AusAID-funded short courses on a range of mining governance issues.

Against this background of existing activity and capability, the new initiative provides additional recognition and funding for various groups in Australia to increase their efforts in this area.

The Africa Mining Vision

The announcement of the new initiative at the Commonwealth Business Forum led to significant engagement with the African delegates present, and the continent is likely to be a priority target for activities under the Mining for Development banner. Australia has already been involved in supporting the development of the Africa Mining Vision, adopted by Heads of State of the African Union countries in February 2009 following the October 2008 meeting of African Ministers responsible for Mineral Resources Development. ‘It is Africa’s own response to tackling the paradox of great mineral wealth existing side by side with pervasive poverty.’ (African Mining Vision, 2011)

During 2011, several AusAID-supported initiatives were designed to align with key themes of the vision. Various Australian universities ran mining related short programs under the Australia Awards for Africa program for delegates from a range of countries. Topics included governance of resource developments, application of GIS systems, environmental regulation, and management of safety and health. In addition, four shorter study tours offered participants from Africa the opportunity to understand aspects of the Australian resource sector’s approach to relevant topics through engagement with government, industry, community and academic stakeholders.

The Africa Mining Vision, its themes and associated work plan recently addressed during the December 2011 meeting of AU Ministers at Addis Ababa, represent a useful framework for considering the factors which impact on the ability of different countries to realise positive development outcomes from their mining sectors.

The components of the Mining for Development Initiative

The Mining for Development Initiative provides funding to augment existing activity and bring it together with new activities. The different elements will be coordinated by a new, specialist mining task force working within AusAID:

• • At the centre of the initiative is the new International Mining for Development Centre (IM4DC). This joint venture between the University of Queensland’s Sustainable Minerals Institute and the University of Western Australia’s Energy and Minerals Institute will be headquartered in Perth, and will coordinate a program of activity focused on education and training in the areas of mining governance, social and environmental sustainability and operational effectiveness.

• • The existing Australia Awards will be strengthened with a specific Australia Mining Awards stream covering undergraduate and postgraduate scholarships in diverse fields including geosciences, engineering, community relations and environmental management, resource economics and governance. To complement these awards, the existing Linkages program will provide a focus on partnerships between federal and state government authorities and universities and their overseas counterparts in order to strengthen capacity in mining regulation and administration.

• • A new Community and Social Development Program has been established to support nongovernment organisations and multilateral approaches to building partnerships that encourage social and environmental responsibility in developing countries. A particular focus of this program will be on community engagement and participation.

• • Australia will also continue to work with overseas countries on the implementation of the Extractive Industries Transparency Initiative (EITI), which focuses on the publication of payments made by companies in the resources sector to host governments. Further to this work, Australia has also committed to a trial of the implementation of the EITI framework within the Australian context.

• The Economic Capacity Building Program will focus on the provision of direct, technical advice to overseas governments in the area of mineral policy, regulatory and macroeconomic policy frameworks. Much of this work will be carried out through existing partnerships with organisations such as the World Bank.

While there has been activity in these individual areas over the years, the increase in funding and formal alignment of activity within the Mining for Development framework represents a significant step in Australia’s approach to overseas development assistance.

The International Mining for Development Centre

Within this program, the new IM4DC will play a key role in delivery of education and training activity, as well as identifying and highlighting the broad range of activity in which Australian-based stakeholders are currently engaged. This includes educational institutions, industry groups, government agencies and civil society organisations, many of whom have already been active in different ways in encouraging capacity building activities in overseas locations. The themes that the centre will address include governance and regulation, social and environmental sustainability and operational effectiveness and safety. Specifically, the activities that the IM4DC will undertake include the following:

• • Delivery of training courses on these themes both in Australia and in overseas locations;

• • Coordination of fellowship awards for senior officials to participate in a program that provides exposure to government, academic and industry environments related to relevant themes for their country;

• • Support for scholarship recipients to extend their projects with additional research activities and linkages; and

• Generation of publications and advice to government on specific matters as requested.

During the first half of 2012 the centre will be engaging with a wide range of stakeholders on the development of its program, and welcomes input and suggestions from AusIMM members in this regard.

The role of The AusIMM and its members

As indicated previously, there is already much activity that focuses on the governance of resource operations in various contexts around the world. Australian experience and expertise in this regard is valued by many overseas countries. The new initiative will provide further opportunities for AusIMM members to participate in this area, through involvement with short courses run by Australian institutions, multilateral initiatives involving different stakeholder groups in developing countries, involvement of overseas participants in AusIMM conferences and associated activities and hosting of overseas visitors at Australian operations and organisations.

Further details of the overall Mining for Development program can be found at the AusAID website at www.ausaid.gov.au/keyaid/mining.cfm. While the logic behind the initiative will be familiar to many in the industry, it nevertheless represents a significant and very public recognition of the opportunities that the resources sector can provide, and of the importance of the role of good governance in realising these opportunities. Industry professionals, including the AusIMM membership, have a key role to play alongside other stakeholders in guiding and assisting these processes, both in Africa and other parts of the world.

References

Davis, G and Tilton, J, ‘The Resource Curse’, Natural Resources Forum, 29(3):233–242.

International Council on Mining and Metals, ‘Work Programs – the Resource Endowment Initiative’. Available from: www.icmm.com/page/1409/our-work/work-programs/articles/resource-endowment-initiative.

Laurence, D, 2011. ‘Sustainable minerals education – we care, but do you?’, The AusIMM Bulletin, October, pp 76-84.