IMPORTANCE OF THE MINING SECTOR FOR THE ECONOMIES OF THE ACP COUNTRIES ACP MINING MINISTERS CONFERENCE BRUSSELS, DECEMBER 13-15, 2010 Patrice Christmann,

IMPORTANCE OF THE MINING SECTOR FOR THE ECONOMIES OF THE ACP

COUNTRIESACP MINING MINISTERS CONFERENCE

BRUSSELS, DECEMBER 13-15, 2010

Patrice Christmann, Manager of the Mineral Resources Strategy Division

Corporate Strategy Division BRGM – The French Geological Survey

p.christmann@brgm.frTel.: +33 2 38 64 37 14

www.brgm.fr

Strategy Directorate

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Minerals are essential to any economy…

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Strategy Directorate

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… and the demand for the services they provide will further grow as the world’s

population progresses towards the 9 billion mark, to be reached about 2050

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Strategy Directorate

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Minerals are an important asset to many ACP countries

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ACP COUNTRIES: 2005 MINERAL EXPORTS IN % OF THE TOTAL EXPORTS F.O.B. (Except Burkina Faso: 2004 data) – Data sources: World Bank, IMF, National Banks of Sudan, Tanzania and Uganda

Mineral exports are over 20% of total exports in 20 ACP countries

Strategy Directorate

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… while they could play a much greater quantitative and qualitative role in support

to the sustainable development the ACP Group of States …

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0

10

20

30

40

50

60

70

80

90

100

AFRICA USA LATINAMERICA

S-EASIA/PACIFIC

CANADA AUSTRALIA

23

4555 59

7993

Average yearly investment in mineral exploration from 1991 to 2009 inclusive, selected regions of the world, in constant US$/ km2

US $ 2009 value based on the US Consumer Price Index Data source: Metals Economic Group, Canada

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Strategy Directorate

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… but are, from a sustainability perspective, mineral resources endowments a blessing

or a curse?

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Strategy Directorate

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Naturalcapital

Physicalcapital

FinancialcapitalSocial

capital

Institutions

Codes

StandardsLaw

DataKnowledge

Technologies

Ad

de

dvalu

eLife

supportingsytems

NaturalcapitalNaturalcapitalNaturalcapital

Physicalcapital

Physicalcapital

Physicalcapital

Financialcapital

Financialcapital

FinancialcapitalSocial

capitalSocialcapitalSocialcapital

InstitutionsInstitutions

Codes

StandardsLaw

Codes

StandardsLaw

DataKnowledge

Technologies

DataKnowledge

Technologies

Ad

de

dvalu

eA

dd

edv

alu

eLife

supportingsytems

How long will mankind be able to use the natural capital base without seriously harming the life supporting systems?

Strategy Directorate

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… protracted partnership support is needed to address the many issues ahead …

Les enjeux du développement durable: cas du secteur des ressources minérales Les enjeux du développement durable: cas du secteur des ressources minérales

-mauvaise utilisation de ressources non renouvelables

ECONOMY ENVIRONMENT SOCIAL

- création de capital, y compris pour les générations futures

-recettes budgétaires-création de valeur ajoutée, y compris dans d’autres secteurs de l’économie

Short-term vision

-déstructuration économique

-inflation

-corruption

-dilapidation de la rente

- réduction de l’empreinte environnementale

- pollution de l’air, des sols et des eaux- subsidence- impacts négatifs longtemps après la fin de la mine

création du capital humain: développement de compétences, accès amélioré à la santé, l’éducation, à l’eau, aux infrastructures

- déstructuration du tissu social

- génération de conflits (utilisation du sol, accès à l’eau, propriété, partage de la richesse)

- Budget income- Added value generation, including in other sectorsof the economy- Development of various forms of capital, for the benefit of several generations

SUSTAINABLE DEVELOPMENT & MINERAL RESOURCES INDUSTRY

- Economic destabilisation

- Inflation

- Corruption

- Minerals rent squandering

- Low environmental footprint

-Creation of new habitats (old quarries)

- Risks of air, soils and/or water pollution

- Risk of subsidence- Possibly

lasting impacts, evenafter mine closure

- Human capitaldevelopment via access to education, health, water, Infrastructure

- Skills development

- Weakening of socialLinkages

Development of conflicts (access to land, to water, Property rights, sharing of wealth)

-GO

VE

RN

AN

CE

Strategy Directorate

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PRIVATE SECTOR

PUBLIC SECTOR

EnvironmentEconomy

Society

SustainableDevelopment

RESEARCH RESEARCH

GOVERNANCE

GOVERNANCE

Data > Information > Knowledge > Expertise > Solutions

Elements for a sustainable ACP minerals industry development strategy

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> Training;

> Capacity building;

> Institutional strengthening;

> Geological data acquisition, modelling;

> Good practice sharing (AEGOS, OAGS…);

> Environmental impacts mitigation;

> Research;

> Data and knowledge dissemination;

> Support to the development of local entrepreneurs;

> Integration of geology and mineral resources in land-use planning and infrastructure development strategies are needed over periods in line with mining project cycles (10-20 years)

Strategy Directirate

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> This requires the setup of a ring-fenced partnership funding (1 bn € over 10 years) based on the commitment to sustainable development ethics, including accountability, transparency and good governance.

> Twinning with EU Geological Surveys, research

and training centers could play an important role

> Follow-up and monitoring (Steering Group?) of this Ministerial meeting should be organised. A role for the African Union, Caricom and SOPAC?

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It all begins with geology !

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Thank you for your attention