Africa’s mining sector should be reference for optimum use of resources in other sectors – Immongault

The Gabonese Minister of Mines has called on African countries to use the mining sector as a reference for the optimum use of resources in other sectors.

Regis Immongault, noted that African governments are facing challenges when it comes to reaping the benefits of resource exploitation.

The Minister was speaking at the Plenary 1 Session  Roundtable on Governing and Harnessing Natural Resources for Africa’s Development at the Eighth African Development Forum in Addis Ababa, Ethiopia, last week.

The session deliberated on the issue of equity of resources, industry consolidation and encouraging sustainable development drawing a plethora of experiences from the continent and beyond.

Immongault explained that Gabon like any other African country has rich natural resources but this potential is not always in tune with the benefits that the nation is gaining. Pointing to the notion which economists call the ‘Dutch disease’ where increase in exploitation of natural resources leads to a decline in the manufacturing sector.

“The mining sector should be a reference for an optimum use of resources in other sectors as well,” he said.

He cited the February 2009 summit of the African Union that had proposed a credible framework for resource management to serve the sustainable development of African economies.

“We would like the total transformation of the raw materials, the diversification of the economies of our respective countries as well as enhancing our infrastructure sector to help build linkages within the economy,” said Immongault.

To this effect he noted that his government since 2009 has been working towards reinforcing its economy apart from oil by trying to increase the value chain in production.

In addition he said that the government has started working towards equitable sharing of resources within the economy and is partnering with the private sector to allow the private sector partake in infrastructural development to bolster the export sector.

From the business sector Richard Duffy, of AngloGold Ashanti, said that there is an emerging risk to industry players in terms of resource nationalization.

Citing an industry surveys conducted in 2008 and 2011, he said the top three risks to the sector mining were listed as skill shortage; industrial consolidation and Infrastructure access. However the 2012 survey indicted resource nationalization as the top risk to the industry.

“The fact that resource nationalization has jumped to the top of the chart I think expresses the dissatisfaction of how societies towards the contribution of mining to the development of Africa,” said Duffy.

Duffy also  pointed to the need for regulators to work and ensure the continuity and sustainability of the businesses while balancing the needs of the countries, businesses and the communities.

Dr. Frene Ginwala, former speaker of the South African Parliament on her part drew experiences from South Africa where in the past mining companies have argued that they guaranteed exploitation of resources but claimed they did not know about providing benefits to communities.

“They have exhausted the mines. With the resources out they leave behind environmental degradation, acid mine water is there, there is never any control… they leave behind communities which are living in dust. That is very much what will happen across the continent as resources are exploited, the benefits exploited and Africa would be a depleted resource,” warned Dr. Ginwala.

Dr. Ginwala also called on governments to make sure that benefits are guaranteed across the value chain backed by policies that guarantee social, environmental and economic protection.

To this Lisa Rauter, the AusAID Assistant Director General, Africa and Middle East Branch., drew experiences from Australia.

“In Australia we had had the experience where mining towns have been created as a result of minerals being exploited. And then over the years as that mine is finished the town has no purpose any more but what we found from our experience that it is really important to have strong collaborations with the government where the mine is being mined, the community that is being affected on how we can come up with a better infrastructure development and other collaborations,” said Rauter.

By Samson Haileyesus