The Investing in African Mining Indaba is a great forum to highlight the strong and growing links between Western Australia and many African countries, whose abundant natural resources have put them in the mining spotlight, Western Australia Premier Colin Barnett tells Mining Weekly.

“Western Australia is the world’s largest mining economy, with resource exports worth more than $100-billion a year. In 2012, the State – which occupies the entire western third of Australia – produced more than a quarter of the world’s iron-ore, which equates to about 26%, and produced about 14% of the world’s aluminium and nickel,” he highlights.

Barnett notes that iron-ore is a major export commodity for Western Australia and was worth about A$61.2-billion in 2012. This was followed by gold, at about A$15.6-billion, and liquefied natural gas (LNG), at about A$10.8-billion.

He adds that Western Australia’s export-orientated economy has fostered the development of successful long-term business relationships with major customers in Japan and China, among other Asian countries, for minerals and LNG, which is regarded as a growing industry.

“We also have a long and proven record in establishing and maintaining productive business partnerships with mining companies that have greatly benefited the state of Western Australia in terms of investment and jobs for its citizens,” states Barnett.

Western Australia–Africa Collaboration

Barnett tells Mining Weekly that many Western Australian companies that have established their businesses in South Africa are also turning their attention to opportunities in the African mining industry.

He says that, according to Western Australian state figures, 197 Western Australian mining companies were operating 880 projects in 30 African countries as of August 2013.

“More than 150 of those companies are listed on the Australian Securities Exchange,” he notes.

Barnett further points out that Western Australian companies are active across the gold, diamond and iron-ore industries in African countries, including Ghana, South Africa, Liberia and Tanzania.

“Western Australian mining equipment, technology and service providers also have several thousand employees across Africa,” he highlights.

Barnett tells Mining Weekly that Africa presents various opportunities for Western Australian businesses and he believes that the experiences Western Australian companies have had in developing “what is now a mature and well developed mining industry” will also benefit Africa.

“We face many of the same issues as operators do in Africa, such as complex negotiations with mining companies. However, Western Australia’s long history in mining has enabled us to put in place transparent rules and regulations to ensure the sustainable development of what has become a modern and sophisticated industry,” he states.

Moreover, Barnett notes that the Western Australian government has also developed individually tailored legislation for all major mining projects.

“These state agreements, enacted through Acts of Parliament, provide certainty for operators and government in areas as diverse as environmental responsibility, rail and port access and royalties. Further, Western Australia welcomes the opportunity to share its experiences at the indaba,” he enthuses.

Barnett further points out that sub-Saharan Africa countries, such as Tanzania and Mozambique, are also becoming major players in developing offshore gasfields.

“Western Australia would like to assist these countries in their endeavours by offering them the benefit of our experience, world-class education and training programmes, technologies and specialised services,” he says.

“I look forward to working with the various African diplomatic and consular representatives to strengthen our growing ties. I wish all Mining Indaba participants a successful conference,” Barnett concludes.

The 2014 Investing in African Mining Indaba will take place at the Cape Town International Convention Centre from February 3 to 6.