Africa: Australian Mining Investment Booming

6 FEBRUARY 2012

PRESS RELEASE

Pretoria — Australian minerals and resource companies have more projects in Africa than in any other region of the world with total current and projected investment estimated to be well over US$50 billion.

"This is a terrific growth story and one that reflects not only Africa's growing political stability and economic resilience but also the pioneering, result-oriented nature of Australian mining and mining services companies," said Australia's Senior Trade Commissioner in Africa, Mr Greg Hull.

"There are at least 230 Australian companies with approximately 650 projects in mining exploration, extraction and processing spread across 42 countries in Africa. Those companies bring advanced technology and high standards of occupational health and safety. Above all, they are committed to working in partnership with local communities, including through upskilling local workforces," Mr Hull said.

According to the Australian High Commissioner to South Africa, Ms Ann Harrap, not only are Australian companies expanding the size and geographical spread of their natural resource interests on the continent but so too is the Australian Government.

"Australia has diplomatic relations with all 54 countries in Africa.

Over two-thirds of those countries have mining activities underway and there is plenty of untapped potential in the sector. As a resource-rich country with substantial experience in both mining and development, Australia wants to assist African countries derive real and sustainable benefit from their mining sectors", Ms Harrap said.

Under the Australian Government's Mining for Development Initiative, launched by the Prime Minister, Julia Gillard in October 2011, Africa will be a focus of Australia's expanding work in this area. The initiative is aimed at improving the governance of mining resources, transparency and ensuring the benefits support sustainable development in Africa.

"We are keen to work closely with African countries that are committed to effective development of their mining industries and to focus on strengthening the capacity of governments to manage and regulate the sector", Ms Harrap said.

Australia provides both long-term masters-level and short-term training opportunities in the mining sector under the Australia Awards for Africa program. In 2012, Australia will offer 135 short and long-term scholarships in the fields of geospatial information systems, occupational health and safety, regulation and resource management, sustainable management of revenue flows and managing corporate community relationships. Over 120 Africans have visited Australia on study tours in 2011.

African professionals will also be able to access support and assistance from the International Mining for Development Centre in Australia. The Centre is based in the University of Western Australia's Energy and Minerals Institute, and supported by the University of Queensland's

Sustainable Minerals Institute. The Centre will support Australia's mining for development work in Africa through partnerships and capacity building; publishing guides and tools; and by hosting conferences and alumni events.

The Australian Government, through the Department of Foreign Affairs and Trade, the Australian Trade Commission (Austrade) and AusAID, is staging a significant national presence at Mining Indaba 2012 in Cape Town, 6-9 February 2012. Ms Harrap emphasizes the true 'Australia Incorporated' nature of the endeavour. "What started as a small business networking opportunity for ten or so Australian mining companies at the event some seven years ago, now has over fifty companies utilizing two hosted locations: the large commercial 'Australia Lounge' and an official 'Minister's Lounge'.

The Minister's Lounge provides a great space for Australian companies discuss investment projects with African mining ministers and senior officials. The Australia Lounge is also an important platform for Australian officials to inform important stakeholders about the Australian Government resources being devoted to create sustainable mining models."