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Mining for Development

Prime Minister launches Mining for Development Initiative

Introduction

Australia's new Mining for Development Initiative is helping developing countries use their natural resources to grow their economies and provide social benefits to their people. The aid program is expanding its mining-related assistance to improve resource governance, sustainability and development.

In resource-rich countries the mining sector has the ability to unlock significant socioeconomic benefits, reduce poverty and support progress towards the Millennium Development Goals. However, countries risk missing out on these benefits if the sector is not well managed and regulated. Already, several resource-rich countries have failed to turn mining wealth into economic and human development.

This is where Australia can help. Many of Australia's developing partner countries have substantial natural resources and are engaged in mining. Australia can provide these countries with the expertise they need to build a sustainable mining sector, making better use of revenues, improving socially and environmentally sustainable development, and growing the economy.

The Australia Government's aid policy, An Effective Aid Program for Australia: Making a real difference—Delivering real results, highlights the importance of mining to economic growth and poverty reduction. One of the Australian Government's ten development objectives is to

"improve incomes, employment and enterprise opportunities for poor people in both rural and urban areas, including the development of sustainable mining industries to boost overall economic development."

 

Australian assistance for sustainable mining across the world

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Global

The Extractive Industries Transparency Initiative (EITI) is a voluntary scheme aimed primarily at resource-rich developing countries. It sets and manages a global standard for the full verification and publication of company payments and government revenue from mining, oil and gas. Australia is a member of the EITI Management Committee and has to date committed $12.7 million to the World Bank administered Multi-Donor Trust Fund. EITI compliant countries include: Azerbaijan, Central African Republic, Ghana, Kyrgyz Republic, Liberia, Mali, Mongolia, Niger, Nigeria, Norway and Timor-Leste.

IMF Topical Trust Fund on Managing Natural Resource Wealth focuses on improving macroeconomic management in resource rich countries. It uses a demand driven mechanism to assist extractive industry fiscal regimes, licensing and contracting; revenue administration; macro-fiscal, public financial management and expenditure policy; natural resource asset and liability management; and statistics for managing natural resources. Australia has contributed $5 million to the fund and is a member of the Steering Committee.

Africa

Mining support in Africa

In Africa, AusAID is:

  • improving resource governance by –
    • supporting three multi-country study tours in 2011 to Australia for senior government officials from 18 African countries on mining regulation and management issues. On-site mine visits were hosted by Rio Tinto, BHP and Newmont; discussion panels included representatives from Western Australian and Queensland natural resources and regulatory agencies.
  • building capacity in geosciences by –
    • inviting nominations for up to 90 African participants to attend the 2012 International Geological Congress in Brisbane, Australia and related workshops to be delivered in partnership with Geoscience Australia.
    • supporting and enabling the Australian mining industry to build the geosciences research and training capacity of four West African universities. Under the initiative training courses have been held on geochemistry, exploration and geology for participants from Burkina Faso, Ghana, Guinea, Liberia, Mali, Niger, Senegal, South Africa, Togo and Zambia.

Ghana

Research with the Minerals Council of Australia is examining the extent to which mining land use agreements facilitate sustainable development outcomes for women and their households.

Liberia

Assisting Liberia to establish a Natural Resources Tax Unit in the Treasury.

Mozambique

Funding the development of a Regional Planning and Integrated Investment Plan for resource rich areas in Mozambique. The aim is to encourage collaboration between investors and government in the planning, prioritisation and future co-financing of infrastructure investment activities, initially in the mining sector.

Afghanistan

From 2012, AusAID will provide 36 Australian Development Scholarships annually to public servants of key Afghan government ministries, including six to the Ministry of Mines, to assist the Afghan Government to improve its capabilities and achieve development objectives.

Laos

AusAID is partnering with the World Bank and the Lao Ministry of Energy and Mines to improve governance of the mining and hydropower sectors and in so doing contribute to more transparent and sustainable developments of these major industries. The program is also reforming relevant engineering and technical education programs to improve the mining career prospects of Lao graduates.

Indonesia

Training and mentoring to improve the Ministry of Finance’s macroeconomic management, leadership of the national
budgeting process and revenue collection capabilities.

Timor-Leste

Training and mentoring to improve the Ministry of Finance’s macro-economic management, leadership of the national
budgeting process and revenue collection capabilities.

Papua New Guinea

Provision of technical assistance for the establishment of a sovereign wealth fund to receive and manage anticipated revenues from the LNG project, and assistance with modelling economic impacts.

Nauru

The Nauru–Australia Compact of Settlement (NACOS) supports phosphate mining and land rehabilitation programs. Nauru’s phosphate mining operations recommenced in 2007 with the support of NACOS funding.

Philippines

Integration of sustainable development into minerals education at the University of the Philippines, to modernise the mining curriculum.

Mongolia

Australia provided funding to enable the start-up of a mining sector think-tank in Mongolia to build indigenous policy research and analytical capacity in this critical sector for Mongolia’s future.

 

Mining and Australia's development

Man operating machine

Mining has been an important part of Australia’s development. Photo: Peter Garside, GarsideImages WA

Mining has been an important part of Australia's development for many years. The Australian sector benefits from a stable regulatory environment backed by a highly-skilled workforce, with quality education and training, and policies that promote environmental responsibility and sustainable development. The success of Australia's mining sector has been further enhanced by world-class geological information that has encouraged investment.

Australia's laws, policies and regulations balance the interests of miners with other land users, ensuring the environment is handled responsibly and with respect for the rights and wishes of Australia's Indigenous people.

The Mining for Development Initiative

The Mining for Development Initiative is a new initiative by the Australian Government. It will draw on expertise from leading Australian academic institutions, the mining industry and non-government organisations (NGOs) who work in partnership with developing countries and other donors, and development institutions. AusAID will work in collaboration with academic institutions and NGOs to help developing countries use their minerals to grow their economies and provide social benefits to their people.

The Mining for Development Initiative has the following components:

International Mining for Development Centre

The International Mining for Development Centre provides assistance on a broad range of issues in the mining, oil and petroleum sectors. Through the centre, developing countries have access to education and training, as well as technical and other advice.

More on the International Mining for Development Centre

Engaging with communities

Two miners talking

The Mining for Development Initiative draws on Australian expertise to help developing countries use their minerals to grow their economies and provide social benefits to their people. Photo: Peter Garside, GarsideImages WA

A Community and Social Development Program is being finalised in early 2012. Extensive consultations have occurred with government, industry, non government organisations and academia in 2011 to determine the activities where all stakeholders can work together to achieve win-win situations.

Bringing international best practice to the table

Through an Economic Capacity Building Program, Australia will provide technical assistance to developing countries to strengthen their mining approvals, regulations and policy frameworks.

Supporting partnerships

Australian government authorities and universities will work with counterparts in developing countries to improve their skills in core government areas such as mining regulation and administration and geosciences for long term development. In December 2011, a concept paper from Geosciences Australia for a three year engagement with up to six developing country counterparts was successfully peer reviewed leading to a full design exercise being conducted in early 2012.

Building skills and knowledge

As part of the broader Australia Awards scholarships program, Australian Mining Awards will provide scholarships to postgraduate and undergraduate students in fields such as engineering, geosciences, public administration and finance, community and environmental management, resource economics, and regulation and governance.

Promoting transparency

Australia will continue to support developing countries to implement the Extractive Industries Transparency Initiative (EITI) [external website] which increases the transparency of transactions between governments and companies operating in the mining sector.

Brochure: Mining for Development

International Mining for Development Centre

The International Mining for Development Centre [external website] provides assistance on a broad range of issues in the mining, oil and petroleum sectors. Through the centre, developing countries have access to education and training, as well as technical and other advice, including through:

  • short courses in Australia and overseas
  • fellowships in Australia
  • mentoring and capacity building of local institutions
  • publishing guides and tools
  • conference and alumni events and support.

The centre will build developing country capacity in three core areas:

  • Governance and regulation—using resources in a safe, healthy, and socially and environmentally responsible way.
  • Community and environmental sustainability—to contribute to local and regional development, before, during and after mine operations.
  • Operational effectiveness and safety—including exploration information and management of exploration processes by partner governments using cutting edge technology and tools.

The centre is hosted by the Energy and Minerals Institute [external website] at the University of Western Australia in partnership with the Sustainable Minerals Institute [external website] at the University of Queensland.

 

Last reviewed: 30 January, 2012