The AU Commission created the Africa Mining Vision in 2009 that says it is "Africa’s own response to tackling the paradox of great mineral wealth existing side by side with pervasive poverty".
Many governments in Africa have made major progress over recent years – mining companies are working hard to "put back" into society through skills development and environmental protection policies. The African mining industry has matured.
Kenya’s 2016 mining act sets out the country’s aim of attracting up to 20 new mining companies. It provides for simplified permits for small-scale operations and simplified licences for larger companies.
And the Angolan government is working on a new special tax regime for the sector that may include new incentives on tax-deductible costs and losses.
Commodity prices are an important factor. After several years of unstable, low prices, the World Bank’s April 2017 Commodity Markets Outlook report forecasts that metal prices will rise 16% by the end of 2017.
There are opportunities to invest across the continent including in Angola, Ghana, Kenya, Mauritania and Senegal.
The Angolan ministry of geology and mining confirmed in February that it had secured funding for the Angolan national geology plan, described by Geology and Mining Minister Francisco Queiroz, as "the main instrument of the government’s strategy for protecting the geology and mining sector".
The plan has identified more than 200 priority targets for the prospecting of iron, base metals, copper, manganese, titanium, gold, lead and aluminium among others.
But challenges remain and illegal mining is one of them. In 2016, Ghana lost $2.3bn in revenue due to illegal mining and it continues to be a major issue in SA.
As commodity prices rise, the problem will worsen — unless governments and other stakeholders deal with it.
The South African government has identified illegal mining as a national threat, with illegal syndicates employing about 30,000 people, many of whom are illegal immigrants.
The problem is not only a threat to the industry and national economies, but to the health, safety and wellbeing of those working in unsafe mines with poor access to basic services — including clean drinking water. Infrastructure is often poor, working conditions usually dangerous and salaries are low.
Women earn as little as R100 a day by grinding up a 20-litre bucketful of rock.
In addition to the need for greater levels of policing and law enforcement, is the need for sustainable mining practices, right across the value chain. Support services are a crucial element — access roads, potable water services and operation and maintenance facilities provide for resource optimisation, a better quality of life for workers and safer working conditions.
Of these, health and safety is one of the most important day-to-day operational objectives, which is why third-party companies are increasingly becoming important logistical partners. They provide life support, facilities management and health and safety services to mining companies in some of the most challenging terrain.
Fully functional, remote and self-sufficient prefab camps have been established in the desert to the north of Khartoum. These megaprojects require the laying out of roads and waypoints, life-support facilities, accommodation and maintenance for hundreds of people. Creating safe, comfortable camps that place health and safety at the core of every logistical decision taken is also important in meeting the various legal and regulatory requirements.
Kenya’s mining legislation spells out important sustainability and environmental policies that include technology transfer, local equity participation, labour laws and incentives for local investments.
This is an attempt to strike the right balance between deregulation and environmental and social protections.
If mining in Africa is to grow responsibly, mining companies must adopt and enforce sustainable practices.
Companies must take personal responsibility for the natural environment they operate in, and respect the health and wellbeing of those working for them — often in very difficult conditions. Mining companies can also benefit from teaming up with specialised logistics, life support and maintenance companies that are able rapidly to deploy teams of experts that understand the local communities.
Responsible energy and water management, innovative approaches to community engagement and compliance with health and safety regulations are crucial in commercial success and the development of a sustainable mining sector.
The journey towards achieving environmental accountability, social responsibility and commercial success will help to prevent illegal mining and lead to more foreign investments.
• Mitchell is director of operations at RA International, remote site construction and service specialists.
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