Australia has a role to play in ensuring resources growth in Africa becomes one of the future engines for rolling back the continent’s poverty, according to one of Australia’s foremost diplomats, Philip Green. Addressing the first day in Perth today of the record breaking Paydirt 2008 Africa Downunder Resources Conference, Green, Australia’s High Commissioner in Pretoria, said the way Africa now managed its resource endowment would be critical at this time in its history to generating economic growth while rolling back poverty.

“Australia’s resources companies already figure prominently in Africa’s resources boom,” he said. “In less than a decade, Australia’s actual and prospective investment in the sub-Saharan African resources sector has now soared to $20 billion. This is a massive investment flow. It is fuelling in turn greater trade dynamics between Australia and Africa.”

“Australian investors in the continent tend to contract the services of Australian providers, purchase Australian made or sourced equipment and hire Australian labour. As a result, Australia’s trade and investment relationship with Africa is growing at a very fast rate.” Green said this growth had outpaced Australia’s growth with just about every other region in the world, up by more than 10% annually for the past five years.

“Only with Asia has our trade grown faster – about 12% per annum – and our exports to Africa have grown 53% in that same period.

“It is hard to track just how much of that is attributable to mining but it is fair to say a substantial share of that 50+% exports increase is a reflection of increasing investment by Australians in the African mining sector.”

Green reminded the Australian resources sector that Australia’s embassies and High Commission were more than equipped and willing to open the political doors in Africa that would further add to Australia’s mining involvement in Africa. “Australia’s explorers and miners need to factor Australia’s diplomatic resources into their strategy for dealing with governments in Africa,” he said.

“However, we will only support good mining practice in Africa and it is essential Australia maintains its deservedly high reputation in mining circles on the continent. Corruption is a global problem. It distorts economic activity and retards growth. Australia consistently scores well in international surveys on business integrity, and that high reputation is an asset which Australian companies, and the Government, should protect.” He reminded delegates that that corrupt acts committed by Australians or Australian companies abroad can be punishable under Australian law.

“We have a clean slate so far in Africa in this regard but with the growth in mining investment and trade between the two, it is essential we keep this positive record intact.”

However, Africa’s extraordinary mineral endowment is being increasingly targeted by competitors such as China – bringing a warning today to Australia’s mineral leadership there to lift their game to meet any competitive advantage. Addressing the conference, General Manager – Coffey Mining, Rick Yeates, said Australia’s mining fraternity had achieved an admirable pioneering position with African partners in developing the continent’s resources wealth.

“Australian and African mining attitudes and culture are similar and Australia’s African focused explorers and miners are similar to Australia’s and we feel culturally aligned with the African psyche,” Yeates said. “Australian mining companies are also world leaders in responsible social engagement and environmental standards applying to mining projects. We have contributed to bringing these standards to Africa’s mining sector and I call on Australia’s mining players to persist with this approach. Australia should not be a party to jeopardising the legislative reforms around these issues which have been introduced into the African mineral sector.”

Yeates said Australia’s resources sector had undersold its environmental and social development gains and “needed to drop its quiet achiever status and get up and shout about them” as it was a major positive against competitors wanting to encroach on Africa’s forward mining projects.