The Mining on Top: Africa conference begins this week, with over 400 international delegates attending the event in London. Profits and perils of Africa’s mining boom will be discussed along with the growing demand for a fairer spread of its economic returns to communities across the continent.
Following hard on the heels of the G-8 debate on transparency in the global mining sector, the Mining on Top conference, which is run in partnership with the Commonwealth Business Council and UK Trade & Investment, brings together African Ministers and senior officials, mining companies, bankers, investors and service providers to address tensions between stakeholders. IntierraRMG Managing Director, Peter Rossdeutscher said; “At a time when the biggest risks to mining are financial, it’s important that social licence to operate is still high on the agenda.”
Despite a relatively optimistic final quarter of 2012, this year looks like remaining difficult for the mineral exploration sector. This situation is reflected in Africa, where drilling activity has been sharply down for the past nine months. According to data from IntierraRMG’s IntierraLive database, total drilling reports from the continent had fallen to 790 in 2010 before climbing to a cumulative 1,127 in 2011, and increased again last year (to an overall 1,240 reports). However, the trend has clearly been down, and drilling reports have slumped so far this year to just 250.
Whatever the absolute level, gold has retained a remarkably consistent share of the African total; 61% in 2010 and 2011, 56% in 2012 and 65% over the first five months of this year. Drilling reports for African gold peaked in October 2011 at 83 prospects (and 80 the following month) but touched a nadir of 23 prospects last month. This represented over 85% of the drilling reports for May, with barely any exploration on the continent for other metals.
The economic impact of these trends on communities across Africa will be highlighted at Mining on Top; with the governments of Ghana, Kenya, Zambia, Rwanda, Cameroon, South Sudan, Botswana and South Africa among those represented at the conference. The event, which takes place over June 25 and 26, and will be opened by Lord Marland, the UK Prime Minister’s Trade Envoy. Former UK International Development Minister, Clare Short, will participate in her capacity as Chair of the Extractive Industries Transparency Initiative (EITI).
“It is exciting and encouraging that Mining on Top has gathered together so many of the key players associated with African mining at such a crucial time for the industry.” Mr. Rossdeutscher concluded.
