Jersey government-owned organisation Locate Jersey will use the 2015 Investing in African Mining Indaba, which will take place at the Cape Town International Convention Centre from February 9 to 12, to promote Jersey to the mining community and raise its stature “as an exciting and credible location for global mining businesses”.

Locate Jersey’s inward investment and international trade director Wayne Gallichan tells Mining Weekly that mining firms will find the Channel Island British Crown dependency of Jersey, off the coast of Normandy, France, an appealing location to operate for several reasons.

He says these include the island’s progressive corporate and personal tax regimes, a straightforward regulatory framework, a “no-nonsense approach” to business support, financial services expertise and the island’s strategic geographic location.

“Jersey is located between the time zones of major investment markets, namely the US and Canada, as well as the operating regions of Eastern Europe, Africa, Asia and Australia, thereby offering mining firms convenience at an operational level,” Gallichan states.

Further, he avers that several experts from Jersey’s “world-renowned” finance industry will attend the Mining Indaba as part of the company’s delegation.

“They will inform delegates who visit our stand [number 4105] about how Jersey is geared to efficiently handle cross-border transactions, often in multiple currencies,” Gallichan states.

He adds that Jersey has a workforce of about 12 500 highly skilled workers across its finance industry – the largest of any British offshore centre. The island can, therefore, deliver the kind of services that mining firms demand, from corporate structuring and accountancy services to specialist legal advice.

Additionally, he says the Locate Jersey delegation will also demonstrate the success achieved by several mining firms that have established operations on the island.

“The ease with which mining firms were able to relocate to Jersey, owing to the progress it has made in all aspects of the mining sector over the past ten years, will be on show at our stand,” notes Gallichan.

He says Locate Jersey is well aware that business relocation often involves the executives and their families moving somewhere else and will, therefore, emphasise the quality of life Jersey has to offer to executives at the indaba.

“In addition to the low rate of personal income tax of 20%, we want executives [to realise] the stress-free environment for living and working, the excellent work/life balance, the broad selection of properties, and the first-class health and education systems Jersey can offer. . .”

Moreover, Gallichan states that Jersey has emerged as a centre for the headquarters of a growing number of exploration and mining companies over recent years, as the island is increasingly being selected as the preferred jurisdiction of choice for the European headquarters of global mining firms.

“There are currently 19 mining, natural resources and associated businesses located in Jersey,” he points out.

Gallichan stresses that a key achievement for the dependency has not only been the increasing number of extractive industry-related businesses but also the diversification within the sectors in Jersey over the past year, such as firms offering ancillary services – including advisers, brokers and specialist consultants – to mining companies.

“In the past three years, mining firms have moved to or expanded into Jersey from Africa, the Cayman Islands and Australia,” he says.

Consequently, 2014 was a successful year for the island, as an increasing number of locals, including well-qualified students and graduates, were recruited by Jersey’s growing range of mining and ancillary companies.

Jersey-Africa Relations

Gallichan cites UK-based economic research consultancy Capital Economics’ ‘Jersey’s Value to Africa’ report, which was published in November 2014, stating that the extractive industry firms with some presence in Jersey are responsible for about £50-billion worth of investment in Africa through the construction of mines, equipment and related infrastructure in the countries in which they operate.

The report also “conservatively estimates” that Africa’s entire economy could grow by an average of 5% each year until 2040 and that the continent’s gross domestic product will rise from $2.3-trillion to $8.7-trillion at current prices, or $15-trillion at current prices in terms of purchasing power parity terms by 2040.

“This is an almost fourfold increase and will push Africa to the top of the global growth leader board. “Across the continent, some nations will perform better than others, but the potential for marked improvement is widespread,” states Capital Economics in the report.

The report notes that, although Jersey’s direct trade links with Africa are currently minor, the island’s financial and legal services firms, therefore, have a lot to offer the continent.

“Jersey can provide a platform to give local entrepreneurs in Africa the safety and security needed to take commercial risks, re-invest and grow businesses. It also offers the legal certainty and corporate structures that global investors and philanthropists need to make investments across the continent,” Capital Economics notes.

Indaba Interactions

Locate Jersey has attended the Mining Indaba for the past three years, during which the island has been a government sponsor for the event. The size of the Jersey delegation has also grown considerably.

“We have exhibited the benefits that the island offers mining houses and brought sizeable delegations of industry experts from Jersey with us, including a broad cross-section of professionals with varying interests in the mining industry, including accountants, law firms, corporate service providers and information technology specialists,” notes Gallichan.

Further, he says the company’s experience at previous indabas has always been positive.

“We have secured many new contracts for Jersey through our attending the Mining Indaba. Locate Jersey has also recorded a significant growth in the number of business firms enquiring about making Jersey their new European operating base.

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