As interest from emerging economies in mining in Africa is said to increase exponentially, countries such as India, China, Brazil, Turkey and the United Arab Emirates continue search for place in the African mining market. Coupled with the fall of a number of dictatorships, the African mining industry is ripe for transformation and innovation in what has been dubbed the “new scrabble for Africa”.
According to Steven De Backer, Director of Africa Mining and Energy Projects at Webber Wentzel, mining developments and trends in Africa are driven by position of resource nationalism. National governments now seek a more active role in reaping the benefiting from their mineral resources and spread this wealth over the long-term. Legislative changes allow for many African countries to leverage Africa mineral potential to their best advantage and ensure transparency, accountability and efficiency.
There is a great need to refurbish and establish infrastructure capable of meeting demands, emerging markets alone are expected to invest six trillion USD over the next three years, according to Merrill Lynch Research Estimates. The new capital requirements have placed mining in a high risk category for banks and there is a move towards unconventional financing, including Strategic Investors such as China and loans from the European Development Fund and the state-controlled share of mining and metal production will most likely increase.
As a result of both the need for infrastructure and skills shortage, the trend is towards increasing obligations and demands for Corporate Social Responsibility and sustainability obligations. Addressing environmental impacts, skills training, community and education trusts, are all areas that facilitate community development within host countries, this according to the International Council on Mining and Metals (ICMM).
As the mining industry moves forward in the future and the rest of the globe continues to search for more sustainable economic development, it is clear that African countries are no longer taking the role of passive producer of natural resource.
Thank you Lesedi Boipelo Setlhatswe for sharing your article with us. Its always refreshing reading something newsworthy that is positive. Lesedi is currently studying Bachelors of Honours at UCT, we here at CA Global wish you all the luck.