Wednesday, 31 Aug 2011
Australian Foreign Affairs Minister Kevin Rudd said on Wednesday that there was significant opportunity for Australian companies to increase their presence in the African resources sector.
In a prerecorded message to the Africa Downunder conference, in Perth, Rudd said that while Africa was estimated to host around 30% of the world's mineral resources, the continent only accounted for around 5% of global exploration expenditure.
"Australia is at the forefront of this exploration expenditure, and there is opportunity to expand this even further."
Australia's investment into the African mineral resources sector currently amounted to around $20-billion, with "billions more in the pipeline", Rudd said.
At least 230 Australian companies have more than 650 projects in 43 countries and territories. Over 40% of Australian miners' overseas projects are located on the continent.
"This investment has absolutely transformed Australia's relations with its African counterparts. It has built unshakable foundations, has brought governments and people closer together, and has provided new opportunities for trading goods and services," the former Australian prime minister said.
He noted that Australian companies were well sought after by African governments to invest in the resources sector, as Australian firms not only had a history of clear and responsible operations, but were also well versed in dealing on the African continent.
"African countries consistently request more Australian investment or assistance in their natural resources sector to deliver the economic benefit that we in Australia have enjoyed for years. And we are responding to this," Rudd said.
He noted that the Department of Foreign Affairs and Trade had recently reviewed its aid programme, for the first time in 15 years, and had outlined changes to increase the effectiveness of the programme. For the first time, this aid programme would include the development of sustainable mining industries on the continent, Rudd noted.
"For the first time in our history, mining will be a significant objective of the Australian aid programme. We are already working on this."
He noted that while the challenges of working on the African continent was not lost on the aid unit, several of the African countries had shown improvement on matters of democracy, accountability, as well as infrastructure and technology infrastructure.
Special Minister of State, Gary Gray told delegates that around 70% of the top-ten growth companies in Western Australia over the past decade had resource assets in Africa.
"Moreover, the amount of potential and prospective investment in Africa has increased enormously: the projected capital expenditure in feasibility studies alone by Australian mining companies totals over A$17-billion," Gray said.
He added that the federal government believed that well-managed mining could improve employment, access to education, enterprise and income opportunities and, importantly, government revenue flows, which in turn could support poverty reduction.
"Responsible development of the natural resources of Africa will play an important role in the story of the development of a new Africa," Gray said.
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