Downunder 2008

AFRICA DOWNUNDER 2008

REMARKS BY THE AUSTRALIAN HIGH COMMISSIONER, PRETORIA

MR PHILIP GREEN O.A.M.


“AUSTRALIA AND AFRICA: THE NEXT PHASE ”


4 SEPTEMBER 2008


LADIES AND GENTLEMEN

IT IS ONCE AGAIN A PLEASURE FOR ME TO BE INVITED TO ADDRESS THE ANNUAL AFRICA DOWNUNDER FORUM. THE TRIP ACROSS THE INDIAN OCEAN TO PERTH IN THE FIRST WEEK OF SEPTEMBER IS NOW A FAMILIAR PART OF MY ANNUAL SCHEDULE, AND ONE OF THE ENGAGEMENTS THAT I MOST LOOK FORWARD TO.

OVER THE YEARS, WE HAVE SEEN AFRICA DOWNUNDER FLOURISH. BILL REPARD TELLS ME THAT HE HAS NEARLY A THOUSAND DELEGATES THIS YEAR. AT MY FIRST AFRICA DOWNUNDER, THREE YEARS AGO, THERE WERE BARELY TWO HUNDRED.

IN WHAT IS ALMOST CERTAIN TO BE MY LAST AFRICA DOWNUNDER – I SHOULD WELL AND TRULY BE IN A DIFFERENT POSITION COME SEPTEMBER NEXT YEAR - I WANT TO PAY PARTICULAR TRIBUTE TO THE ROLE OF THIS CONFERENCE, AND THE DRIVING FORCE BEHIND IT, BILL REPARD.

AFRICA DOWNUNDER IS, WITHOUT QUESTION, THE KEY NETWORKING EVENT FOR AUSTRALIANS INVOLVED IN THE MINING BUSINESS IN AFRICA. IT HAS BEEN OF REAL VALUE TOO TO THOSE OF US IN GOVERNMENT OBSERVING, AND ENGAGING WITH, AUSTRALIAN RESOURCES COMPANIES OPERATING IN AFRICA. BILL REPARD AND HIS TEAM HAVE DONE A GREAT JOB IN BUILDING THIS CONFERENCE, AND I JOIN MANY OTHERS HERE, I BELIEVE, IN CONGRATULATING THEM ON THEIR SUCCESS.

NOT ONLY DOES THIS CONFERENCE CONTINUE TO EXPAND IN NUMBERS, BUT ITS SUCCESS IN ATTRACTING HIGH LEVEL ATTENDANCE FROM AFRICA IS NOTABLE. MINISTERS OR THEIR CHIEF OFFICIALS FROM SEVEN AFRICAN COUNTRIES ARE HERE WITH US THIS WEEK.

I WOULD SPECIFICALLY LIKE TO NOTE, AND WELCOME, THE PRESENCE OF:
• THE HONOURABLE CHIEF SARAFA ISOLA, MINISTER OF MINES AND STEEL DEVELOPMENT FROM NIGERIA
• HIS MAJESTY, KING ADO IBRAHIM OF THE KINGDOM OF KOGI STATE IN NIGERIA
• THE HONOURABLE PONATSHEGO KEDIKILWE, THE MINISTER OF MINERALS ENERGY AND WATER RESOURCES OF BOTSWANA
• THE HONORABLE TESFAI GHEBRESELASSIE, MINISTER OF ENERGY AND MINES FROM THE STATE OF ERITREA
• MR ALEM KIBREAB, THE DIRECTOR GENERAL OF MINES FROM ERITREA
• ADVOCATE SANDILE NOGXINA, DIRECTOR GENERAL OF THE DEPARTMENT OF MINERALS AND ENERGY FROM SOUTH AFRICA
• OTHER SENIOR OFFICIALS ARE PRESENT FROM MALAWI, KENYA, AND NAMIBIA

AMONG A WIDE RANGE OF NOTABLE GUESTS, I SEE THAT MY COUNTERPARTS, THE HIGH COMMISSIONERS AND AMBASSADORS TO AUSTRALIA FROM SOUTH AFRICA, ERITREA AND NIGERIA ARE HERE TOO.

LAST BUT NOT LEAST, IT IS VERY GOOD TO HAVE THIS YEAR AT THE CONFERENCE JEFF HART, MY COLLEAGUE, AUSTRALIA’S HIGH COMMISSIONER TO NIGERIA.

BY BRINGING TOGETHER AFRICAN GOVERNMENTS AND AUSTRALIAN COMPANIES, THIS CONFERENCE IS PLAYING A KEY ROLE IN SPREADING THE WORD ABOUT THE EXPANDING AUSTRALIAN MINING INVOLVEMENT IN AFRICA, AND THE SKILLS OF AUSTRALIAN MINERS, THEIR FINANCIAL BACKERS AND SERVICE PROVIDERS.

A NEW PHASE IN GOVERNMENT FOCUS ON AFRICA

LADIES AND GENTLEMEN

MY KEY INTEREST TODAY IS TO ENGAGE WITH YOU ON SOME IMPORTANT CHANGES THAT ARE TAKING PLACE IN AUSTRALIAN GOVERNMENT POLICY ON AFRICA. CHANGES THAT WILL HAVE AN IMPACT – A BENEFICIAL ONE – ON THE ENVIRONMENT FOR YOUR BUSINESS ACTIVITY IN AFRICA.

SINCE THE LAST AFRICA DOWNUNDER, THE LEVEL OF AUSTRALIAN GOVERNMENT INTEREST AND FOCUS ON AFRICA HAS BEGUN TO CHANGE – AND THE EMERGING CHANGE IS SUBSTANTIAL. THE GOVERNMENT OF PRIME MINISTER RUDD HAS INDICATED AN INTENTION TO FOCUS MORE CLOSELY ON AFRICA; TO RE-ENGAGE WITH THE CONTINENT.

WHILE THE SHAPE OF THIS EMERGING POLICY IS YET TO BE FULLY SETTLED, KEY MINISTERS HAVE INDICATED THAT A COURSE HAS BEEN SET FOR A MORE INTENSIVE ENGAGEMENT WITH AFRICA, ACROSS A RANGE OF FIELDS.

THIS NEW POLICY DIRECTION IS, IN PART, ATTRIBUTABLE TO THE FOCUS THAT YOU IN THE MINING COMMUNITY HAVE HAD ON AFRICA. TALKING ABOUT AFRICA IN A MAJOR ADDRESS LAST MONTH, AUSTRALIA’S FOREIGN MINISTER STEPHEN SMITH SAID, AND I QUOTE –

“AUSTRALIAN MINERALS AND PETROLEUM RESOURCE COMPANIES DISCOVERED AFRICA LAST CENTURY AND IT IS TIME THAT THE AUSTRALIAN GOVERNMENT CAUGHT UP. WE WANT TO BROADEN AND DEEPEN OUR ENGAGEMENT WITH AFRICA TO REFLECT OUR GROWING TRADE, COMMERCIAL AND INVESTMENT LINKS.” UNQUOTE.

AS I SAID, THE PRECISE CHARACTERISTICS OF THE NEW ENGAGEMENT WITH AFRICA ARE YET TO BE ARTICULATED. BUT SOME PARTS ARE BEGINNING TO TAKE SHAPE. FOR INSTANCE, AND IMPORTANTLY, AUSTRALIA’S DEVELOPMENT COOPERATION BUDGET TO AFRICA IS SET TO INCREASE.

AMONG ITS ELECTION COMMITMENTS, THE GOVERNMENT PLEDGED TO INCREASE AUSTRALIA’S OVERALL AID BUDGET FROM 0.32 OF GROSS DOMESTIC INCOME (THAT’S WHAT IT IS NOW) TO 0.5 PER CENT. THAT CHANGE IS SCHEDULED TO OCCUR BETWEEN NOW AND 2015.

WITH NORMAL ASSUMPTIONS ABOUT THE OVERALL GROWTH OF THE AUSTRALIAN ECONOMY, AND FACTORING IN THE PLANNED INCREASE IN THE PROPORTION OF THE BUDGET THAT IS ALLOCATED TO AID, THE AID PROGRAM GLOBALLY WILL INCREASE FROM ABOUT 3.2 BILLION DOLLARS NOW TO SOMETHING IN THE ORDER OF 8 BILLION BY 2015.

SO WHAT DOES THAT MEAN FOR AFRICA? IF THE GOVERNMENT SIMPLY MAINTAINED THE PROPORTION OF ITS AID OUTLAYS THAT GO TO AFRICA, THE GROWTH IN AID TO AFRICA WOULD BE SUBSTANTIAL. THE QUANTUM OF OUR ASSISTANCE TO AFRICA WOULD INCREASE FROM JUST OVER ONE HUNDRED MILLION DOLLARS A YEAR (WHERE IT IS NOW) TO ABOUT 250 MILLION BY 2015.

BUT THE GOVERNMENT INTENDS TO DO MORE THAN THAT. IT INTENDS TO INCREASE THE PERCENTAGE OF OUR AID BUDGET GOING TO AFRICA. IT IS TOO EARLY TO SAY HOW MUCH THAT PROPORTION WILL INCREASE. BUT IT IS SAFE TO SAY THAT BY 2015 THE PROGRAM TO AFRICA WILL BE WORTH MORE THAN $250 MILLION.

WE SHOULD NOTE THAT EVEN A SUBSTANTIAL INCREASE ON THIS SCALE WILL STILL NOT MAKE AUSTRALIA A MAJOR DONOR IN AFRICA. TOTAL AID FLOWS FROM ALL SOURCES TO AFRICA ARE AROUND $40 BILLION ANNUALLY. BUT THE PROPOSED INCREASES WILL CERTAINLY CHANGE THE SCALE OF AUSTRALIA’S AID INVOLVEMENT – AND, I AM CONFIDENT, BE WARMLY WELCOMED BY AFRICAN GOVERNMENTS. THOUGH THE GOVERNMENT IS DOING THIS FOR DEVELOPMENT REASONS, NOT TO FACILITATE TRADE AND INVESTMENT, THE GOVERNMENT’S ENHANCED ENGAGEMENT IN AFRICA SHOULD HAVE SPIN-OFFS FOR THOSE OF YOU DOING BUSINESS THERE.

SO, THE GOVERNMENT PLANS A NEW LEVEL OF ENGAGEMENT WITH AFRICA, ACROSS A RANGE OF SPHERES. THE AID COMPONENT OF THIS EMERGING POLICY IS IMPORTANT, BUT WILL NOT BE THE ONLY ONE. AND I WOULD URGE YOU TO LOOK OUT FOR FURTHER ANNOUNCEMENTS IN WHAT IS AN EXCITING POLICY DYNAMIC FOR AUSTRALIANS INVOLVED IN AFRICA.

JUST BEFORE I LEAVE THE ISSUE OF AUSTRALIA’S AID TO AFRICA, I WOULD LIKE TO GIVE YOU AN UPDATE ON ONE SUB-COMPONENT OF THE PROGRAM SPECIFICALLY RELEVANT TO YOU.

AT THE TIME OF AFRICA DOWNUNDER LAST YEAR, IT WAS ANNOUNCED THAT, AS PART OF THE AID PROGRAM, AUSTRALIA WOULD BE OFFERING A NUMBER OF SHORT-TERM FELLOWSHIPS TO GOVERNMENTS IN EASTERN AND SOUTHERN AFRICA, IN THE FIELD OF NATURAL RESOURCE GOVERNANCE.

THAT WAS DECIDED BECAUSE IT WAS CLEAR THAT THE RESOURCE SECTOR IS ONE OF THE ENGINES FOR GROWTH IN AFRICA. THE WAY THAT THE CONTINENT MANAGES ITS RESOURCE ENDOWMENT IN THIS PHASE IN ITS HISTORY WILL BE ONE OF THE KEY DETERMINANTS OF ITS SUCCESS IN GENERATING ECONOMIC GROWTH AND ROLLING BACK POVERTY.

I AM PLEASED TO SAY THAT THIS FELLOWSHIP PROGRAM IS NOW AN ACTUALITY. OFFERS OF FELLOWSHIPS WERE TAKEN UP BY THE GOVERNMENTS OF KENYA, MALAWI, MOZAMBIQUE, TANZANIA AND ZAMBIA. SENIOR PUBLIC SERVANTS INVOLVED IN MINING MINISTRIES FROM EACH OF THOSE COUNTRIES ARE CURRENTLY UNDERTAKING THEIR FELLOWSHIPS AT THE UNIVERSITY OF SYDNEY. I UNDERSTAND THAT AT LEAST ONE OF THE FELLOWS IS ALSO HERE AT AFRICA DOWNUNDER.

THE GOVERNMENT IS TAKING A GREATER INTEREST IN AFRICA. BUT OTHERS ARE TOO. THE LOWY INSTITUTE IS PERHAPS AUSTRALIA’S FOREMOST FOREIGN POLICY THINK TANK. IT RECENTLY RELEASED A MAJOR PAPER – ITS FIRST - ON AFRICA.

THE PAPER FOCUSES ON YOUR BUSINESS - THE ROLE OF AUSTRALIAN MINING COMPANIES IN AFRICA. IT CONCLUDES THAT – BECAUSE OF THEIR COMPARATIVE ADVANTAGE - AUSTRALIA RESOURCE COMPANIES FIGURE PROMINENTLY IN THE AFRICA’S RESOURCES BOOM.

THE PAPER CALCULATES THAT, FROM VERY LITTLE AT THE TURN OF THE DECADE, ACTUAL AND PROSPECTIVE INVESTMENT BY AUSTRALIAN MINING COMPANIES IN THE SUB SAHARAN AFRICA RESOURCES SECTOR HAS NOW CLIMBED TO 20 BILLION US DOLLARS.

AFRICA: A FAST GROWING REGION FOR AUSTRALIA’S TRADE

THAT INVESTMENT FLOW IS MASSIVE, BUT IT IS NOT THE ONLY DYNAMIC IN THE COMMERCIAL WORLD BETWEEN AUSTRALIA AND AFRICA.

TRADE TYPICALLY FOLLOWS INVESTMENT. AUSTRALIAN INVESTORS TEND TO CONTRACT THE SERVICES OF AUSTRALIAN PROVIDERS, PURCHASE AUSTRALIAN MADE OR SOURCED EQUIPMENT, AND HIRE AUSTRALIAN LABOUR. THAT’S CLEARLY HAPPENING IN THE RESOURCE SECTOR IN AFRICA.

AS A RESULT, AUSTRALIA’S TRADE AND INVESTMENT RELATIONSHIP WITH AFRICA IS GROWING FAST.

IN FACT, OVER THE PAST FIVE YEARS, THE GROWTH IN AUSTRALIA’S TRADE WITH AFRICA HAS OUTPACED ITS GROWTH WITH JUST ABOUT EVERY OTHER REGION IN THE WORLD. SINCE 2003, OUR TRADE WITH AFRICA HAS GROWN BY AN AVERAGE OF MORE THAN TEN PER CENT EACH YEAR. ONLY WITH ASIA HAS OUR TRADE GROWN FASTER – THAT HAS GROWN BY NEARLY TWELVE PER CENT. THE INCREASE IN TRADE WITH AFRICA COMPARES VERY FAVOURABLE WITH THE INCREASES WITH OTHER REGIONS. THE NEXT PLACE REGION IS EUROPE, WITH TRADE GRWOTH OF SEVEN PER CENT GROWTH. GROWTH HAS BEEN SLOWER IN OTHER REGIONS.

CUMULATIVELY, IN THE YEARS SINCE 2003, AUSTRALIA’S EXPORTS TO AFRICA HAVE GROWN BY FIFTY-THREE PER CENT – A BIG BENEFIT TO THE AUSTRALIAN ECONOMY. IT’S HARD TO TRACK HOW MUCH OF THAT BENEFIT IS ATTRIBUTABLE TO MINING. BUT I AM CONFIDENT THAT A SUBSTANTIAL SHARE OF THAT FIFTY-PLUS PER CENT INCREASE IN EXPORTS IS A RESULT OF THE INCREASING INVESTMENT BY AUSTRALIANS IN THE AFRICAN MINING SECTOR.

MINING INVESTMENT IS BRINGING NEW VIGOUR TO THE COMMERCIAL RELATIONSHIP BETWEEN THE TWO CONTINENTS; OPENING UP NEW STRANDS IN BILATERAL RELATIONSHIPS; AND DELIVERING BENEFITS TO THE AUSTRALIAN ECONOMY.

GOVERNMENT SUPPORT FOR AUSTRALIAN MINING IN AFRICA

A KEY REASON WHY I AM HERE TODAY IS TO DEMONSTRATE AGAIN THAT THE AUSTRALIAN GOVERNMENT RECOGNISES THE CONTRIBUTION THAT AUSTRALIAN MINING IS MAKING TO OUR RELATIONS WITH AFRICA, AND INDEED TO THE ECONOMIC BENEFIT OF AUSTRALIA AND AFRICA.

IN TURN, WHERE WE CAN ADD VALUE AND WHERE IT MEETS AN AUSTRALIAN INTEREST, THE GOVERNMENT’S REPRESENTATIVES ARE READY TO PROVIDE SUPPORT TO AUSTRALIANS INVOLVED IN MINING AND OTHER COMMERCIAL ACTIVITIES IN AFRICA.

SPECIFICALLY, OUR NETWORK OF AUSTRALIAN EMBASSIES AND HIGH COMMISSIONS ARE AVAILABLE, IN MOST CIRCUMSTANCES, TO SUPPORT AUSTRALIAN MINING AND OTHER COMPANIES.

ALTHOUGH THERE ARE A RANGE OF WAYS IN WHICH WE MAY BE ABLE TO ASSIST, THE KEY AREA IS IN ACCESS TO SENIOR GOVERNMENT OFFICIALS AND MINISTERS IN AFRICAN COUNTRIES. KNOWING DECISION-MAKERS IN OUR COUNTRIES OF ACCREDITATION IS A KEY PART OF OUR TRADECRAFT AS DIPLOMATS. OFTEN THE ACCESS THAT WE HAVE CAN AUGMENT THE CONTACT WITH GOVERNMENT FIGURES THAT AUSTRALIAN MINERS AND THEIR LOCAL PARTNERS CAN ACHIEVE.

IT IS PART OF OUR BRIEF TO USE THAT ACCESS TO ADVOCATE FOR GOOD MINING AND OTHER PROJECTS IN OUR COUNTRIES OF ACCREDITATION.

MANY OF YOU WILL HAVE SEEN THIS AT WORK, IN A VERY PROMINENT WAY, AT THIS YEAR’S MINING INDABA IN CAPE TOWN. INDABA IS THE WORLD’S SECOND LARGEST CONFERENCE OF ITS KIND AND ATTRACTS SEVERAL THOUSAND DELEGATES FROM ACROSS THE CONTINENT AND AROUND THE WORLD.

THE DEPARTMENT OF FOREIGN AFFAIRS AND TRADE, ITS AMBASSADORS AND HIGH COMMISSIONERS AND AUSTRADE AGAIN MOUNTED AN ‘AUSTRALIAN LOUNGE’ IN A HIGH PROFILE LOCATION AT THE CONFERENCE VENUE TO UNDERLINE THE AUSTRALIAN ROLE IN THE RESOURCE INDUSTRY IN AFRICA, AND TO SUPPORT THE ENGAGEMENT BETWEEN AFRICAN GOVERNMENTS AND AUSTRALIAN COMPANIES. HIGHLIGHTS OF THE LOUNGE INCLUDED THE MINISTERS’ AND AMBASSADORS’ LUNCHEON, WHERE WE ENTERTAINED A LARGE NUMBER OF AFRICAN MINISTERS AND SENIOR OFFICIALS IN STYLE, AND BROUGHT THEM INTO CONTACT WITH KEY AUSTRALIAN MINING FIGURES. PERHAPS EVEN MORE MEMORABLE WERE THE ‘FOSTERS AT FOUR’ NETWORKING SESSIONS.

THE SENIOR TRADE COMMISSIONER FOR AFRICA GREG HULL AND I ARE ALREADY WELL INTO THE PLANNING FOR THE NEXT AUSTRALIAN LOUNGE IN 2009. OUR EXPECTATION IS THAT IT WILL BE BIGGER THAN THIS YEAR, AND BETTER ABLE TO ACCOMMODATE THE NEEDS OF AUSTRALIAN SPONSORS FOR QUIET AREAS FOR MEETINGS, AS WELL AS HOST EVENTS OF THE SAME CALIBRE AS IN PREVIOUS YEARS. MOREOVER, WE HAVE SECURED WITH THE CONFERENCE ORGANISERS BETTER ACCESS TO INFORMATION ON THE AFRICAN DELEGATIONS TO INDABA, WHICH WILL ALLOW US TO BETTER HELP YOU NETWORK WITH THEM.

TO RETURN TO OUR ROLE AS GOVERNMENT REPRESENTATIVES IN AFRICA, WE CAN HELP IN OTHER WAYS, BEYOND BILATERAL ENGAGEMENT WITH HOST GOVERNMENTS:

• AUSTRALIAN BUSINESS FIGURES OFTEN APPROACH ME FOR ADVICE ON POLITICAL AND ECONOMIC CONDITIONS IN OUR COUNTRIES OF ACCREDITATION;
• AND THE ORGANISATION THAT MANAGES OUR OVERSEAS REPRESENTATION, THE DEPARTMENT OF FOREIGN AFFAIRS AND TRADE, IS RESPONSIBLE FOR BILATERAL AND MULTILATERAL TRADE NEGOTIATIONS. THIS INCLUDES WTO NEGOTIATIONS, WHICH EMBRACE A RANGE OF DISCUSSIONS SUCH AS TRADE IN SERVICES. IN THESE DISCUSSIONS, OUR NEGOTIATORS ARE SEEKING TO MAKE IT EASIER FOR AUSTRALIAN SERVICE PROVIDERS IN AFRICA AND ELSEWHERE.

OVERALL, MY MESSAGE IS THAT YOU SHOULD FACTOR AUSTRALIA’S DIPLOMATIC RESOURCES INTO YOUR STRATEGY FOR DEALING WITH GOVERNMENTS IN AFRICA, AND NOT HESITATE TO SEEK OUR SUPPORT.

THE DEPARTMENT OF FOREIGN AFFAIRS AND TRADE, WHICH MANAGES AUSTRALIA’S OVERSEAS DIPLOMATIC PRESENCE, HAS ITS HEADQUARTERS IN CANBERRA. APPROACHES CAN BE MADE TO THE AFRICA SECTION OF THE DEPARTMENT OR TO EMBASSIES AND HIGH COMMISSIONS DIRECTLY.

THE DEPARTMENT ALSO HAS AN OFFICE IN EACH STATE CAPITAL, STAFFED BY FOREIGN AND TRADE PROFESSIONALS, SPECIFICALLY RESPONSIBLE FOR LIAISON WITH AUSTRALIAN BUSINESS. THESE OFFICES, INCLUDING THE ONE HERE IN PERTH, HEADED BY PHIL ALLARS (A FORMER HIGH COMMISSIONER HIMSELF), ARE ANOTHER POINT OF CONTACT AVAILABLE TO YOU.

WORKING CLOSELY WITH AUSTRADE

WHILE THE TRADE AND INVESTMENT RELATIONSHIP WITH AFRICA IS A KEY PART OF THE WORK OF OUR AMBASSADORS AND HIGH COMMISSIONERS, WE ARE BY NO MEANS ALONE IN THIS TASK. THE AUSTRALIAN TRADE COMMISSION, TRADING AS AUSTRADE, IS A VITAL PARTNER IN OUR WORK GLOBALLY, NOT LEAST IN AFRICA.

AUSTRADE IS MOST CLOSELY FOCUSSED ON PROVIDING ADVICE TO AUSTRALIAN BUSINESS ON MARKET CONDITIONS, AND CONNECTING THEM TO LOCAL BUSINESS-PEOPLE IN AFRICA. MY DIPLOMATIC COLLEAGUES AND I ARE MORE FOCUSSED ON WORK WITH GOVERNMENTS – ACCESS TO DECISION-MAKERS, AND GOVERNMENT-TO-GOVERNMENT TRADE NEGOTIATIONS.

LESS IMPORTANT THAT THE DIFFERENT TASKS THAT WE SPECIALISE IN IS THE FACT THAT AUSTRADE OFFICIALS AND MY COLLEAGUES – AMBASSADORS AND HIGH COMMISSIONERS – WORK VERY CLOSELY TOGETHER IN ALL THAT WE DO. MOST LIKELY, YOU WILL FIND US WORKING TOGETHER TO SECURE AN OUTCOME FOR AUSTRALIAN BUSINESS.

AUSTRADE LAST YEAR UPGRADED ITS REPRESENTATION IN AFRICA. A SENIOR TRADE COMMISSIONER, GREG HULL, WHO IS WITH US TODAY, WAS APPOINTED. AND ONE OF GREG’S FIRST ACTS WAS TO HIRE A BUSINESS DEVELOPMENT MANAGER SPECIFICALLY FOCUSED ON THE NEEDS OF THE MINING INDUSTRY.

IN ANOTHER FIRST, AUSTRADE WILL BE NEXT WEEK PROMOTING AND SUPPORTING A DELEGATION OF THIRTEEN AUSTRALIAN MINING SERVICE AND EQUIPMENT PROVIDERS AT AN AUSTRALIAN NATIONAL STAND AT MINING ELECTRA. GREG ALSO PLANS TO MOUNT AN AUSTRALIAN DELEGATION OF SERVICE AND EQUIPMENT SUPPLIERS TO SELECT COUNTRIES IN AFRICA BACK-TO-BACK WITH MINING INDABA NEXT YEAR.

CORRUPTION, ETHICS AND REPUTATION

BEFORE I MOVE ON FROM THE ISSUE OF GOVERNMENT SUPPORT FOR AUSTRALIAN BUSINESS IN AFRICA, THERE IS ONE FINAL KEY POINT THAT I WANT TO MAKE.

THERE IS AN OVER-RIDING CONCERN THAT DRIVES AUSTRALIA’S GOVERNMENT REPRESENTATIVES IN MAKING DECISIONS ON WHETHER, AND HOW, TO SUPPORT AUSTRALIAN BUSINESS. THAT IS ETHICS.

BOTH IN AUSTRADE AND DFAT, WE SUPPORT AUSTRALIAN MINING IN AFRICA – AND BY THAT WE MEAN GOOD MINING PRACTICE IN AFRICA. OVERALL, AUSTRALIA HAS A DESERVEDLY HIGH REPUTATION IN MINING CIRCLES IN AFRICA. IT IS VERY MUCH IN THE INTERESTS OF EVERYONE AT THIS CONFERENCE THAT THAT IS MAINTAINED.

CORRUPTION IS A SERIOUS GLOBAL PROBLEM. IT STIFLES ECONOMIC GROWTH AND SLOWS DEVELOPMENT.

AUSTRALIA CONSISTENTLY SCORES WELL IN INTERNATIONAL SURVEYS OF BUSINESS INTEGRITY. THE RESPECTED NGO TRANSPARENCY INTERNATIONAL RATES AUSTRALIA THE 11TH LEAST CORRUPT (OUT OF SOME 180 NATIONS) IN ITS CORRUPTION PERCEPTION INDEX.

BUT WE ARE NOT COMPLACENT. THE AUSTRALIAN GOVERNMENT CONTINUES TO TAKE CORRUPTION VERY SERIOUSLY.

WE ARE DEEPLY COMMITTED TO INTEGRITY IN THE WAY IN WHICH OUR COMPANIES DO BUSINESS – AND ARE KEEN TO MAINTAIN AND ENHANCE OUR REPUTATION.

AUSTRALIA HAS STRONG ANTI-CORRUPTION LAWS THAT HAVE EXTRA-TERRITORIAL EFFECT, MEANING THAT CORRUPT ACTS COMMITTED BY AUSTRALIANS OR AUSTRALIAN COMPANIES ABROAD CAN BE PUNISHABLE IN AUSTRALIAN LAW. I AM PLEASED TO SAY THAT THOSE LAWS HAVE NOT NEEDED TO BE ACTIVATED IN RELATION TO MINING ACTIVITIES IN AFRICA.

WE ARE ALSO COMMITTED TO PROMOTING BETTER GOVERNANCE AND TRANSPARENCY IN RESOURCE-RICH DEVELOPING COUNTRIES. AUSTRALIA PROVIDES FUNDING SUPPORT FOR THE EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE – AN INTERNATIONAL COALITION OF PRIVATE AND PUBLIC SECTOR REPRESENTATIVES. THE COALITION, WHICH STARTED FIVE YEARS AGO, AIMS TO PROMOTE GREATER ACCOUNTABILITY IN EXTRACTIVE INDUSTRIES BY PUBLISHING AND VERIFYING COMPANY PAYMENTS FROM OIL, GAS AND MINERALS. A NUMBER OF INTERNATIONAL COMPANIES ACTIVE IN MINING HAVE COMMITTED TO THE INITIATIVE, INCLUDING BHP BILLITON, RIO TINTO AND WOODSIDE.

THE KEY MESSAGE IS THAT AUSTRALIAN INDIVIDUALS AND COMPANIES SHOULD ENSURE THAT THEIR ACTIONS ARE ALWAYS IN STRICT COMPLIANCE WITH AUSTRALIAN LAWS. I SHOULD ALSO SAY THAT I, LIKE ALL AUSTRALIAN GOVERNMENT OFFICIALS OVERSEAS, AM UNDER A DUTY TO REPORT IMMEDIATELY AND WITHOUT EXCEPTION ANY INFORMATION THAT COMES TO ME ABOUT THE BREACH OF AUSTRALIAN LAW BY AUSTRALIAN BUSINESSES ABROAD.

THIS VIGILANCE AIMS TO SAFEGUARD THE REPUTATION OF AUSTRALIA. THAT REPUTATION IS HIGH, AND IS AN ASSET TO ALL OF YOU WHO DO BUSINESS ABROAD, AS IT IS TO ME IN DEALING WITH AFRICAN GOVERNMENTS. AUSTRALIA’S HIGH REPUTATION IS AN ASSET WHICH IT IS VITAL FOR ALL OF US TO PROTECT AND ENHANCE.

SAFETY OF AUSTRALIANS IN AFRICA – THE CONSULAR ROLE

FINALLY, I WANT TO TOUCH ON A TOPIC THAT IS OF KEEN INTEREST TO THE DEPARTMENT OF FOREIGN AFFAIRS AND TRADE, AND TO ALL OF OUR DIPLOMATIC REPRESENTATIVES IN AFRICA. THAT IS THE SAFETY AND SECURITY OF AUSTRALIANS LIVING AND WORKING IN AFRICA. I’M SURE IT IS IMPORTANT TO YOU TOO.

WE ARE CONSCIOUS THAT MINING ACTIVITIES OFTEN TAKE AUSTRALIANS TO OFF-THE-BEATEN TRACK LOCATIONS, AND POTENTIALLY DANGEROUS ENVIRONMENTS.

WE WOULD STRONGLY URGE YOU TO TAKE PROPER CARE AND PRECAUTIONS IN UNDERTAKING YOUR WORK. THE AUSTRALIAN MINING COMMUNITY HAS A TOUGH CAN-DO APPROACH TO ITS WORK, AND THAT IS ONE OF THE FACTORS THAT MAKES IT SUCCESSFUL. BUT THAT NEEDS TO BE TEMPERED BY A PROPER APPRECIATION OF THE RISKS THAT OPERATIONS IN CERTAIN LOCATIONS ENTAIL, AND SENSIBLE PRECAUTIONS AND COUNTER-MEASURES.

ONCE AGAIN, WE AT AUSTRALIAN MISSIONS AND IN THE DEPARTMENT OF FOREIGN AFFAIRS AND TRADE ARE AVAILABLE TO ASSIST YOU IN UNDERSTANDING AND MANAGING THE RISKS.

WE URGE YOU TO CAREFULLY DIGEST THE TRAVEL ADVISORIES WHICH DFAT PREPARES ON OUR RECOMMENDATIONS. WE URGE YOU AND YOUR STAFF, WHEN TRAVELLING - AND PARTICULARLY WHEN TRAVELLING (IF YOU NEED TO) TO REMOTE AND INSECURE LOCATIONS - TO REGISTER WITH THE NEAREST DIPLOMATIC MISSION. THAT CAN BE DONE AT SMARTRAVELLER.GOV.AU.

CONTINGENCY PLANNING IN THE EVENT OF A CRISIS SHOULD BE AN IMPORTANT FOCUS FOR ALL OF YOU; AND ONE ON WHICH YOU SHOULD ENGAGE US. AUSTRALIAN MISSIONS AND THE REGIONAL CONSULAR OFFICER WILL BE AVAILABLE FOR MINING COMPANIES TO DISCUSS THEIR CONTINGENCY PLANS AND TO SEE HOW THEY FIT INTO OUR MISSION’S BROADER CONTINGENCY PLAN FRAMEWORK.

CONCLUSION

LADIES AND GENTLEMEN, THE PAST DOZEN YEARS HAVE SEEN A RAPID INCREASE IN AUSTRALIA’S MINING ACTIVITY IN AFRICA – A FACT THAT GOVERNMENT RECOGNISES AND SUPPORTS.

AS WE ALL KNOW, THAT HAS, TO A LARGE EXTENT, BEEN DRIVEN BY AN INCREASE IN GLOBAL DEMAND FOR RESOURCES AND THE PROSPECTIVITY OF MANY PARTS OF THE AFRICAN CONTINENT.

BUT THERE ARE OTHER FACTORS TOO, THAT RELATE SPECIFICALLY TO AUSTRALIA. I DO NOT DISCOUNT THE SHEER SKILL OF AUSTRALIAN MINERS AND THEIR SERVICE PROVIDERS, THE FLEXIBILITY OF AUSTRALIAN FINANCIERS, AND THEIR READINESS TO SUPPORT SMALL, ENTREPRENEURIAL JUNIOR MINERS.

CHARACTER IS ALSO IMPORTANT. WE SHOULD NOT UNDERESTIMATE THE CAN-DO APPROACH OF AUSTRALIAN MINERS, WHO FAIL TO BE PUT OFF BY CONDITIONS THAT WOULD DETER OTHERS.

AND, FROM TWENTY YEARS OBSERVING AUSTRALIAN MINERS IN AFRICA, I AM CONVINCED THAT AUSTRALIANS OVERALL WORK WELL IN AFRICA. WE INSTINCTIVELY UNDERSTAND THE VALUE OF PERSONAL CONTACT WITH OUR AFRICAN COUNTERPARTS. WE ARE FLEXIBLE TO THE NEEDS OF LOCAL COMMUNITIES, AND ARE PREPARED TO WORK COOPERATIVELY WITH THEM; WE ARE ALERT TO THE ISSUES THAT WILL DRIVE THE INTEREST OF AFRICAN GOVERNMENTS.

THIS WILL PROBABLY BE MY LAST AFRICA DOWNUNDER. THAT IS A MATTER OF SOME REGRET TO ME, BUT MY TERM IN PRETORIA IS ALREADY LONG BY THE STANDARDS OF AUSTRALIAN DIPLOMATIC POSTINGS, AND WILL SOON BE UP.

FOR ME, THE END OF THIS ASSIGNMENT WILL CLOSE A CHAPTER ON TWO DECADES OF WORK, MUCH OF WHICH HAS FOCUSED ON AFRICA. A SUBSTANTIAL PROPORTION OF THAT HAS BEEN ASSOCIATED WITH THE MINING INDUSTRY.

THERE HAVE BEEN MANY HIGHLIGHTS.

I STILL VIVIDLY REMEMBER OPENING, WITH PRESIDENT MKAPA, RESOLUTE RESOURCES’ GOLDEN PRIDE MINE IN TANZANIA IN THE LATE 1990S – I THINK THE FIRST MAJOR AUSTRALIAN MINING OPERATION IN EAST AFRICA; AND CERTAINLY A LANDMARK MOMENT FOR THE DEVELOPMENT OF THE MODERN TANZANIAN ECONOMY.

IN MORE RECENT YEARS, IN MY ROLE IN SOUTHERN AFRICA, I WAS PRIVILEGED TO UNDERTAKE THE FIRST BLAST AT THE INTERNATIONAL FERRO METAL PROJECT IN SOUTH AFRICA; AND TO SPEAK AT THE OPENING OF PALADIN’S HISTORIC LANGER HEINRICH PROJECT IN NAMIBIA.

WITH THE HELP OF MANY OF YOU, WE PIONEERED THE AUSTRALIAN LOUNGE CONCEPT AT MINING INDABA, WHICH HAS PROVED SUCH A SUCCESS. AND I HAVE BEEN PLEASED TO BE PART OF THIS CONFERENCE, AND WITNESS ITS GROWTH, FOR THE LAST FEW YEARS.

MAY I TAKE THIS OPPORTUNITY TO THANK THE MANY OF YOU WHOM I HAVE HAD THE GOOD FORTUNE TO WORK WITH OVER THESE YEARS. IT HAS BEEN A PRIVILEGE TO BE INVOLVED WITH THIS INDUSTRY, AND I WISH YOU ALL THE SUCCESS THAT YOU DESERVE FOR THE FUTURE.