Conference Explores African Mining Possibilities

Africa is rich in natural resources, much of which remain untapped. Despite that, international mining companies have largely stayed away from the continent due to political instability in many countries, lack of infrastructure and the inability to gain control of mineral deposits. Today, optimism is growing concerning African mining. Many of its nations are moving toward privatization of their mining industries. They see it as a way to improve the lives of their populations and become politically stronger. Ministers from 22 African nations were Denver, CO in June for the World Bank's Multilateral Investment Guarantee Agency's Fourth Annual African Mining Investment Symposium. The three-day symposium drew more than 400 mining executives and government representatives. Foreign mining investment in Africa is on the increase. In 1996, international mining companies spent about $418 million on exploration. That is more than double the $190 million spent in 1994. Mining executives say the mining climate in Africa is improving because countries are privatizing the industry and rewriting mining laws that encourage natural resource development. They estimate that private mining firms now control about 80% of mining today. Mine development will help lift the living standards for Africans, the ministers said. The average income for ordinary Africans is about $500 a year. If this new mining boom continues, citizens of nearly all African nations will reap the benefits of better infrastructure and government services, as well as more higher paying jobs, the ministers said. They also issued a word of caution to mining companies attempting to join in the African boom. Concerns are being raised about the treatment of villagers and the environment. In the past, foreign companies would "behave about like colonial masters," said Gerald Ssendaula, natural resource minister for Uganda. Africa is in a different position now, he said. "Now we are solving our own problems." Mining companies must respect local communities or risk creating unrest that will threaten fragile new governments, said Akolang Tombale, chief geologist for Botswana. On the other hand, he said villagers must accept that mining development will benefit them. "They feel these are their natural resources. There must be a mutual interaction between the companies and the people."