AMDC Africa Mining Vision May 2016 Lilongwe Malawi

1. Communications Workshop
Lilongwe, Malawi – May 2016
Daisy Diamante Leoncio
Communications Officer
African Minerals Development Centre (AMDC)
Africa Mining Vision

2. Presentation outline
I. Africa Mining Vision
II. Background
III. Vision
IV. Challenges and Success Factors
V. AMDC
VI. Work Streams
VII.Activities

3. Africa Mining Vision
• Adopted by African Union Heads
of State and Government in
February 2009
• Understand of value beyond
mineral revenues
• Harness mineral resources to
accelerate development
• Build resilient, diversified, and
competitive economies
Envisioned to:

4. • Botswana – Home to 35 percent of Africa’s diamonds, gem
quality. Produces copper, gold, nickel, etc.
• Democratic Republic of Congo – Estimated to have more
than $24 trillion worth of untapped raw mineral ore deposits.
One of the greatest producers of diamonds (34 percent) and
copper (13 percent) in Africa.
• South Africa - enormous mining industry. World’s largest
producer of chrome, manganese, platinum, etc.
• Tanzania – fourth largest gold producer in Africa, also has
deposits of iron ore, nickel, copper, cobalt, silver, etc.
Africa – a cut above the rest

5. Africa – a cut above the rest
• Namibia – 46 percent of the continent’s uranium stashes
• Mozambique – critical producer for aluminum, with 32
percent of Africa’s supply.
• Zambia - produces 65 percent to 77 percent of Africa’s
copper supply.
• Guinea – more than 95 percent of Africa’s bauxite
production.
• Ghana – export trade is significantly bolstered by its mineral
riches — 37 percent of total exports are minerals. Ghana is
Africa’s second-largest producer of gold after South Africa,
and holds more than 15 percent of the continent’s supply..

6. Africa – a cut above the rest
• Hosts 30% of world reserves of
extractive resources
• Produces over 60 different type of
metals, ores and minerals
• Encompasses the whole continent
• Half of the countries regard mining
as an important economic activity
• Produces minerals for
international market outside the
continent

7. The Paradox
Massive
amounts of
natural
resources
Socio-
economic
develop-
ment
Economic Landscape

8. The Paradox
• Triggered calls for resource-driven development
• Paved way for a new developmental approach in which
mineral resources would play a catalytic role for economic
transformation and development
• AU adopted the AMV as continental framework to drive the
vision

9. .
Enabling mineral resources to play a greater transformative role in the development of the continent

10. AMV – Structural Shift
• Creates sustainable and well-governed mining sector
• Resources to be invested in other forms of lasting capital that
can outlive the currency of mining
• Safe, healthy, gender and ethnically inclusive
• Environmentally-friendly
• Socially responsible
• Appreciated by surrounding communities

11. Critical Constraints and Success Factor
The level/quality of the resource potential data:
Most African states lack basic geological mapping or, at best, are
poorly mapped. This increases the risk for investors who
consequently demand extremely favorable tax regimes for any
operation that may result from their blue-sky exploration.
Contracts negotiating capacity:
Need to improve the capacity of African states to negotiate with
the resource TNCs on the resource exploitation regime.

12. Critical Constraints and Success Factor
Ongoing African resources development and
governance capacity:
Creating African capacity for ongoing auditing, monitoring,
regulating and improving resource exploitation regimes and
developing the resource sector linkages into the domestic
economy.

13. Critical Constraints and Success Factor
Capacity
The key element in determining whether or not a resource
endowment will be a curse or blessing, is the level of governance
capacity and the existence of robust institutions.
However, this could be a “chicken and egg” situation for African
states, in that they are underdeveloped precisely because they
have weak governance and institutions.

14. Critical Constraints and Success Factor
Addressing Africa’s infrastructure constraints:
Lack of the requisite infrastructure (especially transport and
energy) to realise the natural resources potential.
• Africa’s relative logistics costs are about 250% of the global
average because Africa is the highest continent (has few
navigable rivers) and 93% of Africa is in the tropics (ITCZ16,
high precipitation), resulting in a greater cost of infrastructure
provision
• Incoherent European balkanisation resulted in many African
states being landlocked (14);

15. Critical Constraints and Success Factor
Addressing Africa’s infrastructure constraints:
Lack of the requisite infrastructure (especially transport and
energy) to realise the natural resources potential.
• Africa has only 10% of land within 100km of coast (cf. 18%
OECD & 27% Latin America); and Only 21% of its people live
within 100km of coast (cf. 69% OECD & 42% Latin America).
• Due to this constraint, the resources of many African states
are “stranded” and cannot currently be exploited, as individual
projects cannot afford to absorb the huge costs of the
necessary infrastructure due to insufficient rents.

16. Critical Constraints and Success Factors
The case of artisanal and small-scale mining (ASM):
• ASM provides 13 to 20 million jobs worldwide while a further
80-100 million depend on it for their livelihoods.
• In Africa, about 3.7 million are directly engaged in this sub-
sector and about 30 million depend on it. It is an expanding
sub-sector predicted to triple by 2012. ASM is labor-intensive
and provides more employment than large-scale mining.
• Between 15 to 20% of the world’s non-fuel minerals,
approximately 18% of Africa’s gold and almost all of the
Africa’s gemstones, except diamonds, are produced by ASM.

17. Country Mining Vision

18. CMV – Migrating AMV at the Country Level
Tool to facilitate domestication of the AMV
• Alignment of national policies to the AMV
• Restructuring of legal and regulatory
frameworks
• Involvement of broad range of stakeholders
(civil society, parliamentarians, communities,
business, government, journalists)
• Bottom-up, top-down process rooted in
collective national ownership

19. CMV – Guided by the AMV Action Plan
Key Focus Areas
• Fiscal regime and revenue management
• Geological and mineral information systems
• Building human and institutional capacity
• Artisanal and small-scale mining
• Mineral sector governance
• Linkages, investment and diversification
• Environment and social issues
• Communication and outreach strategy

21. AMDC was launched in 2013

22. Implementing Partners

23. .
Enabling mineral resources to play a greater transformative role in the development of the continent

24. AMDC Mission
Working with member States and their
national and regional organizations to
enable mineral resources play a greater
transformative role in the development of
the continent through increased economic,
social linkages and improved governance.

25. Priority Areas
• Technical support
• Gap analysis and alignment of Member
States policies, regulations and institutions
with AMV
• Policy research and recommendations for
implementing AMV
• Advocacy, communication and information
dissemination around the AMV
• Think tank capacity for embedding the
AMV in Africa’s long-term development
agenda

26. • Lack of awareness about
AMV and ownership by
countries
• Multiplicity of partners and
lack of coordination in
countries
• Transition of AMDC to an AU
Specialized Agency
Challenges and Opportunities

27. Work Streams or Pillars
1. Policy and licensing
2. Geological and mining
information systems
3. Governance and
participation
4. Artisanal and small-scale
mining

28. Work Streams or Pillars
5. Linkages, investment and
diversification
6. Human capital and
institutional capacities
7. Communication and
advocacy

29. Policy and Licensing: to enhance policy design within
institutional frameworks.
Kingdom of Lesotho
• Technical support drafting process for Lesotho’s new
mining legislation.
• The consultative process and national stakeholders’
workshop.
• The draft bill is now ready and will be subjected to
national consultations, then presented for
parliamentary deliberation.
AMDC’s Work

30. Policy and Licensing: to enhance policy design within institutional frameworks.
Review of policy and regulatory frameworks in EAC African countries
• The study to review policy and regulatory frameworks in the East African Community
for alignment with the AMV, was completed and submitted to the member states for
review.
• Rwanda’s Ministry of Natural Resources has agreed to host an expert group meeting
to review the findings of the study and draw out a framework to support EAC member
countries to align their mining laws
AMDC’s Work

31. Harmonizing the governance framework of the extractives sector
Addis Ababa, March 2016
AMDC’s Work

32. Policy and Licensing: to enhance
policy design within institutional
frameworks.
Regional Sharefair on Gender
Equality in Africa’s Extractive
Industries Sector
• AMDC provided support on sharing
knowledge, promoting innovation,
good practices, legal frameworks
and policies and exploring
opportunities for networking,
advocacy and capacity building in
support of women in the EI.
AMDC’s Work

33. Geology & Mining Information Systems workstream is “to improve geological and
geospatial information and its use in mining and broad development processes in
Africa.”
Desktop Review of African Geological Survey Organization Capacities and Gaps
- a publication prepared by the AMDC to provide key insights on the relationship between
minerals and development. The review assessed the effectiveness of geological support
and illuminated potential traps.
GMIS Strategy Development
- proposed to facilitate the strengthening of the African production, management and
dissemination of geological and mineral information (GMI).
AMDC’s Work

34. Geology & Mining Information Systems workstream is “to improve geological and
geospatial information and its use in mining and broad development processes in
Africa.”
Deep-sea Mining
- assisted the International Seabed Authority in preparing its Mining Code for the
exploitation of mineral resources from the international seabed area.
African Blue Economy Policy Handbook
- technically assisted and co-sponsored the elaboration of the African Blue Economy
Policy Handbook. It covers all maritime spaces and shows the underwater mining and
related activities as essential for African broad-based development.
AMDC’s Work

35. AMDC as premiere expert on Geological Mineral Information Systems
Dar es Salaam, Tanzania, March 2016
AMDC’s Work

36. Governance & Participation workstream is “to create a mining sector that is
environmentally and socially responsible, and appreciated by all stakeholders
including surrounding communities.”
AMDC’s Work
Country Regional Global
Ghana
Guinea
Kenya
Lesotho
Malawi
Mali
Niger
Sierra Leone
Support to COMESA’s mineral
beneficiation agenda through
beneficiation study initiated in
the SADC region (15 member
states).
SADC mining sector skills
mapping.
Exploring options for
collaboration with the ICGLR
Secretariat and OECD
African Mining Law Atlas
(AMLA).
Strengthening Assistance for
Complex Contract Negotiations
(CONNEX) - and the G7-led
initiative.
OECD Natural Resources
Dialogue Initiative.

37. AMDC’s Work
0
1
2
3
4
5
6
7
8
9
10
Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015
Figure 2: AU Member States where CMV initiatives are ongoing
Countries with AMV as the leading mineral sector governance framework Countries with non-AMV policy actors as leading mineral sector governance framework
Countries requesting AMV/CMV as overarching mineral sector gov't framework

38. AMDC providing technical assistance to Sierra Leone Government
African Union, Addis Ababa, Ethiopia, December 2015
AMDC’s Work

39. The Linkages, Investment & Diversification workstream aims “to create an
investment-friendly mining sector that is a key component of a diversified, vibrant
and globally competitive industrial African economy”.
Mineral beneficiation studies
Finalized multi-country study reports on the challenges and opportunities for leveraging
the potential of linkages along the mineral value chain.
Finalized a technical proposal on Engaging the Private Sector for Inclusive Extractive
Industries and Sustainable Value Chain.
Fiscal Linkages
Finished a study on the impact of illicit financial flows on domestic resource mobilization
from the minerals sector.
AMDC’s Work

40. The Human and Institutional Capacities workstream aims “to create a mining sector
that is knowledge-driven and is the engine of an internationally competitive African
industrial economy”.
Development Account Project on Contract Negotiation in the Extractive Sector
Implemented a project “Strengthening the capacities of African governments to negotiate
transparent, equitable and sustainable contracts in the extractive industries (IE) for broad-
based sustainable growth and socio-economic development"
CONNEX Initiative
Worked with various stakeholders to align global initiatives with AMV principles, in
particular the G7 led CONNEX initiative.
AMDC’s Work

41. The Communication & Advocacy
workstream aims “to improve social
and economic development options
through a free flow of information
among all stakeholders around the
AMV, AMDC and mineral-based
transformation”.
Increase access to information and
knowledge packaging
- CMV communications workshops
- Integrated knowledge management
and communications strategy
AMDC’s Work

42. Mining Indaba
Cape Town, South Africa, February 2016
AMDC’s Work

43. Mining Indaba
Cape Town, South Africa, February 2016
AMDC’s Work

44. For more information:
www.uneca.org/amdc
www.africaminingvision.org
Africa Mining Vision