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Australian miners warned to deal with economic imbalance

SUSTAINABLE MINING IN AFRICA
The Australia-Africa Mining Industry Group believes every person in and around a modern mine development in Africa should have the opportunity to reach his or her own potential

SUSTAINABLE MINING IN AFRICA The Australia-Africa Mining Industry Group believes every person in and around a modern mine development in Africa should have the opportunity to reach his or her own potential

8th August 2014

  

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Strategic facilitation group the Australia-Africa Mining Industry Group (AAMIG) has warned Australia’s mining industry that it cannot be sustainable in Africa unless it deals with the economic imbalance between miners, which are associated with modern mine development, and the surrounding local community.

Speaking at last year’s Africa Down Under conference, in Perth, AAMIG chairperson Bill Turner told delegates that Australia could also not succeed with Africa-based mining operations unless it was prepared to deal with a wide range of Africa-specific issues.

Turner highlighted political and social risks, institutions that often lack capacity, health issues, bribery and corruption and the occasional unpredictable behaviour of security forces as some of the challenges facing African operations.

Turner added that the mining industry could not keep helping communities with “never- ending handouts” or by doing things for them that they could, and should, be doing for themselves.

“Building self-esteem is a great enabler, which results in significant economic benefits to a business enterprise. In short, enlightened approaches to corporate social responsibility (CSR) create and protect value,” said Turner.

He added that bilateral and multilateral Australia-sponsored programmes alone would not lift impoverished African communities out of poverty and that business enterprises, capacity building and opening the door to opportunity were essential ingredients to stimulate growth in host communities.

“Every person in and around a modern mine development in Africa should have the oppor-tunity to reach his or her potential. We need to continue to move the social development approach in Africa away from a ‘handout’ approach and more towards the ‘helping hand up’ approach; away from a sense of dependence and more towards a strong sense of ownership, empowerment and self-reliance,” he said.

However, Turner also noted that Australian business could not solve and pay for all of the complex challenges faced by African govern-ments and local communities.

“As an industry, we need to identify and focus on opportunities to create shared value – where social development and CSR have meaningful benefits for society but are also valuable to business.

“Australian mining in Africa is all about the basic business case – contribute meaningfully to the local communities in which we operate, build and maintain a social licence to operate, reduce investment and operating risk and make our shared business activities and growth into the future sustainable,” he said.

New Initiatives Highlighted at AGM
The AAMIG held its second annual general meeting (AGM) in November 2013, where Turner briefed members about initiatives that the group had under way.

He noted that the AAMIG was rapidly becoming the peak industry support for Australian mining companies currently active in Africa. The organisation aims to enhance the industry’s capacity to become a world leader in best mining practice and, in doing so, to contribute to the economic development of Africa.

He added that several important initiatives would add significant value for AAMIG members.

“The AAMIG membership has grown to more than 100 members and we expect that, as market sentiment recovers, we will quickly grow to 200 members, which will enhance our ability to represent the industry and deliver real value to our member companies,” said Turner.

The AAMIG provides a variety of informative workshops for its members, where key topics of interest to the industry are discussed, such as antibribery and anticorruption strategies; personal safety training; corporate security management; free prior and informed consent; and investing in Africa.

The AAMIG ran its first set of workshops – the Celtic Club networking seminars – in 2013 on Australia’s east coast, in Melbourne, Sydney and Brisbane, to extend the reach of the organisation.

The seminars continue to be well attended, providing a forum for discussion on issues that are topical to AAMIG members.

Turner revealed at the AGM that the group was currently developing collaborative pro-grammes with Curtin University, the Global Health Alliance of Western Australia, Chatham House and the US Agency for International Development, which are expected to address issues specific to operating in Africa.

Further, the AAMIG continues to build on efforts to establish a ‘Team Australia’ approach, which includes building meaningful relationships between the mining industry and African governments, nonprofit organisations and tertiary institutions.

AAMIG members receive trimonthly news-letters and monthly emails relating to industry news, which, with a well-developed and informative website, provide a relevant resource base for Australian explorers, miners and related service providers in support of their activities on the African continent.

Further, the AAMIG is developing an associate membership for African governments and African regional associations to engage more meaningfully with their African counterparts.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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