Charles akong amdc asm workshop april 2016

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Harnessing Opportunities to Transform the ASM

From Mining focus to Minerals for Development:

Akong CharlesEconomic Affairs Officer Linkages, Diversification and Investment

Present

• AMV and Minerals for Development• Development Minerals

Examine

• Dimensions of Neglect• Lessons for the ASM

Identify • Transformative opportunities

Present • Conclusions

Outline of Presentation

AMV Thinking Outside the ‘Mining Box’‘’ Transparent, equitable and optimal exploitation

of mineral resources to underpin broad-based sustainable growth and socio-economic development’’

Optimize knowledge and benefits of finite mineral resources at all levels… for all minerals;

Incorporate both high value metals and lower value industrial minerals at both commercial and small-scale levels’’

Harness the potential of small scale and artisanal mining to improve livelihoods and integration into the rural and national economy’’

But many past interventions in the ASM remains ‘’mainly on mining gold and gemstones and less on industrial minerals, which have greater potential for integration with other sectors of the local economy’’.

Nature and Diversity of industrial minerals

Minerals exploited for their physical and xcal properties and not Metallic

Fairly spread- in across Africa but range limited except for construction minerals

Typical commercial finds in the region- limestones, dimension stones, phosphates, marble, salt and kaolin, gypsum, sand and clay

Uses as old as civilization and mostly artisanal High retained value, requires less skilled, capital

and technology compared to HUVM Create employment and expand technology

capability Potential remains incongruous with exploitation

and policy attention

Pillars of Industrialization and Transformation

Construction Minerals Limestone, Dimension Stones, Marbles, Sand and Clay , dolomite and granite

Manufacturing Clay, Limestone, feldspar and Sand

Agriculture Phosphates and Salts

Mining Kaolin, refractory bricks, Bentomites

Yet Industrial Minerals Remains ASM & Neglected

Market failure

Government failure Society failure N

egle

ct

BUT AFTER THE BOOM: NOT EVERY UNGLITTERED MINERAL ISN’T GOLDEN

AFRICA’S BUOYANT CEMENT SECTOR

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

-10

-5

0

5

10

15

20

Consumption growth in cement year on year average in per -centage terms

Africa(SSA) MENA China World (exclu china)

Source: World Cement Report

STEP-UP DEMAND 4 AGGREGATES IN AFRICA

AGGREGATES BY APPLICATIONS

Consumption underpins transformation

Source: WB

BEYOND MAXIMIZING REVENUES

GoldFis

cal

Ren

t

Diversification/Structural transformation

Lead/Zinc

Iron ore

Construction/agro/indus-trial

Diamond

Bauxite

Source: Authors own conceptualiza-tion

More Than Low ValueFiscal Linkage

Consumption linkage

Production linkage

Lateral Linkage

High Value but Low Linkage Potential

High Average Low High

Low Value but Very High Linkage Potential

Average High High High

Average Value and Medium Linkage Potential

High Average Average High

Source: authors

TRANSFORMATION’S LOW HANGING FRUITS Critical Feedstock –

Demand based Beneficiation

Livelihood opportunitiesInstitutions Building

Social contract Inclusive Environment, health and safety

Frame them as low value or neglected ? Despite potentials, barely recognised in minerals policies Legislative and legal framework weak , unadapted or absent Specific challenges needing specific and supportive institutional

framework Livelihood opportunity, needing a business approach for

sustainability, decent employment and inclusion Promising testing ground to get ASM right

Conclusion Low hanging fruits for achieving the AMVTowards a policy oriented focus of the sector

AMDC has decided to frame this class of minerals as NEGLECTED DEVELOPMENT MINERALS (NDM)

Specific challenges in the sector requires clear and adapted legal and institutional framework

Strengthen capacity building in EHS, business management and vocational training

Research, geological and marketing information

Thank You!

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