In pursuit of the sustainable development of mining
——Focus on Mining Ministers and Mining Development forum of CHINA MINING 2012
As an annual feature, Mining Ministers and Mining Development Forum of CHINA MINING 2012 was held at Tianjin Meijiang Convention and Exhibition Center on November 5, 2012. Mining leaders from all over the world regard the forum as a superexcellent mining investment fair to persuade Chinese investors into developing mining to their countries every year. The forum was almost like a fair of investing in Africa. There were 13 mining ministers making speeches, and 6 of them were from Africa. Except Canada and Greenland, the other countries such as Papua New Guinea, Ecuador, Mongolia, and Cambodia are all developing countries.
Mining is the backbone of economy in these countries. With the increasing development of mining, the concept of mining development in the less developed countries is changing quietly-----they no longer gain the economic growth at the cost of resources consumption, but pay more attention to the environmental protection and sustainable development.
The constant theme----Welcome Chinese mining investors
The mining ministers endeavored as always to describe the rosy perspective of developing mining in their countries for Chinese investors in Ministers and Mining Development Forum of CHINA MINING 2012.
Actually there is many a Chinese investor in Africa, South America or Asia. Their continuing to attract investment is mainly attributed to two aspects: for one aspect, they believe Chinese investors can bring changes for their countries’ mining economy; for another aspect, they appreciate Chinese investment power. Most basically, such cooperation will be mutually beneficial and result in a win-win result. Therefore, we have enough reasons to believe that these countries will continue to open arm to Chinese investors in the following decade---the gold time of rapid mining development.
The sufficient resources are the key to attract investment. During Ministers and Mining Development Forum of CHINA MINING 2012, the mining ministers gave a detailed description of the plentiful mining resources of their countries, which are greatly attractive to Chinese investors, such as oil, natural gas, gold, precious stones, iron, copper, lead, zinc, potassium, lithium ore, etc. 翁科卡梅•莫凯拉, Minister for Mineral Resources, Energy and Water Resources, The
Republic of Botswana, even prepared national mineral resources distribution map, and showed the audiences superior geological conditions, widely distributed Kimberlite and rich copper resources in Zambia extension zone, and 70% coverage of coal mine belt of national land. This was his first time to China to attend CHINA MINING. He showed real sincerity and enthusiasm to Chinese investors.
Whether the political situation is stable or not is a significant factor to be considered for foreign investors. Especially in parts of Africa, war and regime shift are not rare. Even Argentina, a country with comprehensive power could suddenly announce the nationalization of oil without alert, which no doubt greatly harmed the interests of foreign investors. Therefore, almost all the nations will announce strongly the stable political situation, and also announce that they will give benefits and securities for foreign investors on politics and service, for example Nigeria puts forward that 95% profits of foreign investors can pass in and out freely, enjoy 3-5 years of exemption period depending on different minerals and regions, and also can speed up the examination and approval procedure on occasions of meeting the requirements. Botswana said that they could provide one-stand service of applying for mining right. The term of exploration right in Botswana is three years and can be extended twice, each time for two years. The term of mining right is usually 25 years and can also be extended. Botswana is not allowed to transfer the mining right, but has no limitation for transferring the exploration right to new investors.
Increasingly perfect infrastructures have become undeveloped countries’ new chip to attract investors. They have already realized the significance of infrastructures for the development of mining. The president of South Africa said that the constructions of mineral resources surrounding was one of the primary tasks. Thus, they have specially established the committee to coordinate this deal. At present, they can introduce the national infrastructures confidently, such as highway, railway, and port. Carlos Federico Aunquilla, Deputy Minister of Mines, The Republic of Ecuador, said that the transportation, power supply, and information communication in Ecuador had already formed a whole network.
They attract investors by means of showing the projects that has already begun or will be begun. For example, Byron James Chan, MP, Minister for Mining, Papua New Guinea introduced projects that will be invested in the next five years, including gold and copper project in a large scale, and some projects that has been operated and created comprehensible profits.
Besides, they introduced the vast local mining market, which can save the expensive cost of transportation for Chinese investors. Musa Mohammed Sada, Minister of Mines and Steel Development, Nigeria, said that African countries are under the period of developing the infrastructures and have a large demand for minerals. And Nigeria owns rich resources like stone. From this perspective, Africa reserves a large business opportunity.
Furthermore, the ministers also indicated the increasingly development of geological work could help investors. Esperanza, the minister of mineral resources of Mozambique, said that Mozambique is experiencing the new period of the development of minerals and geological exploration has been improved greatly. Moreover, Esperanca Bias, Minister for Mineral Resources, The Republic of Mozambique said that Mozambique is experiencing a new period of mineral resource exploitation and information about geological prospecting has been greatly improved. He also said Mozambique government had adopted new mining method which took society and international environment into consideration. It is also beneficial to secure the rights of investors.
The change of tone ----Sustainable development becomes the new objective of each country and new responsibility of investors
The whole world is developing. The mining investment in the past has changed the nation a lot no matter in poor African countries or in backward South American countries. After experiencing the period of distress resources, they have adopted the more advanced concept and target to measure the development of mining. Ministers and Mining Development Forum of CHINA MINING 2012, the sustainable development, green mining, reclamation, and environmental protection have become popular words. Mining development in these countries has begun to have different requirements from the purely increase of economy, so the requirements to the investors are more.
Susan Shabangu, MP, Minister of Department of Mineral Resources of the Republic of South Africa, said that during African mining minister forum in 2009 they had determined to take measures to realize Africa’ hope which was that they would practice the sustainable development and system development during the process of mining. The core of this hope was to combine mining with economic development. The expected to increase the national economy by developing mining and realizing the economic balance in every field, such as solving employment and inequality. Moreover, Susan Shabangu said African countries were under economic reform and used the positive and developing notion to guide reform. They hoped to make better use of resources and pay more attention to environmental protection, local people, surrounding soil, etc. She appealed, “The industrial development and the increase of South Africa economy had experienced hard time, but if we cooperate together, we will be better and bring fortune to every country.”
Kamel Abdel Latif, Minister of Mines, The Republic of Sudan, said that Sudan paid more attention to the protection of environment. Minister of Mines in Sudan supervises the mining companies and requires them to be subject to rules and regulations and guarantees their work satisfy national standards . “Sudan’s government will make its contribution to protect the environment according to the related charter and convention. In the meantime, they will make better use of mining profits to serve sustainable development, improve social development level and people’ s life condition in its own and neighboring countries.” From last year, Sudan requires companies to reduce the use of quicksilver.
Mozambique is positively developing mineral resources in the long term. They aim to improve the management abilities of mining and ensure that the development of mining have a positive influence on improving communities condition and living standard. “The mining industry is one of the cornerstones of economic development in Mozambique, but it must develop in a sustainable way. Investors should take the social responsibilities and put them into practice.” said Esperanza.
They have requirements on the sustainable development to themselves. For example, in Papua New Guinea, all websites are required to have the content of environmental protection of mining development and should try to avoid the ambiguous information and improve the transparency.
As a country seldom attended Mining Minister Forum, the developed country, Canada, also pays attention to the environmental protection. They own many advanced technologies in ore dressing, mining, mining exploitation, etc. Moreover, they have advanced technologies in green production, reclamation and environment risk management etc. They expect to promote these technologies.
Besides, Ecuador emphasized that any mining investor must respect and fully abide by the constitution, local mining law and mining investment regulations etc. and mining exploration must be subject to the local law procedure. Federico reminded Chinese corporations especially that there are many illegal small mining in Ecuador.” Be careful of this kind of mining, I hope that we all invest in our nation in a legal way.”
Deeper trend--- Increasingly widen the cooperation field
Foreign investment improved the mining development in undeveloped countries. With the development of local mining, the demand of the investment field is increasingly expanding.
Mineral processing is the important appeal to investors for undeveloped countries. During these years’ minister forums, it has been a hot issue. This year, South Africa put forward clearly that investors should take more additional value into account other than simple products. South African government hoped that mining development should be combined into the economic development strategies. The investment should not only just explore the raw material but also the construction of smelting plants. Moreover, the nation will set different tax rates according to different investment field.
Developing mining and upgrading the standard of national mining is common pursuit for undeveloped countries. They hoped that investors could not only bring capitals but also technology, and help to train mining talents of their own country. Therefore, they hope to cooperate in a wider field, such as samples analysis, specimen preparation, exploitation and mining consultant, mining design and development, etc. “They are all good opportunities of investment. Welcome companies with the strength to invest.” said Musa Mohammed Sada, Minister of Mines and Steel Development, Nigeria.
Sudan put forward that mining cooperation is greatly important to the international relationship, which needs countries’ cooperation, especially those who own the same geological conditions.
The secretary of state of Argentina said in his speech that CHINA MINING is one of the most successful mining conferences in the world. Obviously, they expect a lot to the platform of CHINA MINING. They want to contact more investors and realize the sustainable development in their own country. In the future’s mining investment, Chinese investors will bear more responsibility which is the inevitable result brought by the development. (Liu Wei)（translated by TLRHVC）
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2012 is held at Meijiang Convention and Exhibition Center in Tianjin on November 3rd-6th, 2012 (Expo is opened on 3rd pm Nov., 2012). We invite you to join the event and to celebrate the 14th anniversary of CHINA MINING with us. For more information about CHINA MINING 2012, please visit: www.chinaminingtj.org.
