Australia’s Trade and Investment Relationships with the Countries of

Africa

Driving the Government’s Economic-Diplomacy Strategy further by leveraging off the resources industry

AAMEGSubmissionto

theForeignAffairs,DefenceandTradeReferencesCommittee

oftheAustralianSenate.

18August2017

AAMEG:Allrightsreserved.Nopartofthisworkmaybereproducedinanymaterialformorcommunicatedbyanymeanswithoutpermissionofthecopyrightowner.

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Australia’s Trade and Investment Relationships with the Countries of Africa

Driving the Government’s Economic-Diplomacy Strategy further by leveraging off the resources industry

ThispaperhasbeenpreparedbyrepresentativesoftheAustralia-AfricaMinerals&EnergyGroup(“AAMEG”)toassist theFederalGovernment inunderstandingthe important role that theAustralianResources Industryplays across the African Continent and to support the Federal Government’s efforts to build strong andenduringrelationshipsbetweenAustraliaandthecountriesofAfrica. General Background

Australia and Africa are custodians of great resource endowment. Australia has awell-developedandtechnicallymatureresourcesindustry,whichhasbeenexportingitscapabilitiesandcompetitivestrengthsoverseas for thepast25years,establishinga significantglobal footprint,notablyon theAfricancontinent.TheresourcesindustryinAfrica,withtheexceptionofthatinSouthAfrica,isatamuchearlierstageofdevelopment,asaresultofhistoricalpoliticalunrestandgenerallyunattractiveforeigninvestmentconditions.Favourablechangesinthepoliticalandlegislativelandscapessincetheearly1990s,combinedwiththehistorically low levelsofexplorationactivity,havemorerecentlymademanyAfricancountriesattractiveinvestmentdestinations.Thissituationhasbeenfurtheradvancedbythedegreetowhichthemultilateralinstitutions(UN,IMFandWorldBank)haveengagedwithAfricanGovernments,andthe degree to which World Bank agencies (MIGA, IFC and AfDB) have engaged with resourcecompanies. Nevertheless, in Africa there are great differences to be found in thematurity of theindustry from one country to another that is reflected in the political and social conditions, thewillingness to conformwith internationally accepted norms of governance, and how the benefitsflowtothevariousstakeholders.Ofthe54Africancountries,35arestill listed1asLeastDevelopedCountriesandyetAfrica isgenerallyacknowledgedashavingsome30%oftheworld’smineral,oilandgasreserves.ResourcedevelopmenthasbeenamajorcontributortoAustralia’seconomicprogress,anditisnowalsocontributingsubstantiallytoanimprovingeconomicoutlookformanyofthecountriesofAfrica.Overthepastdecade,realpercapitaincomeshaveincreasedbymorethan30%percentandthreeofthetoptenworld’sfastestgrowingeconomies2arelocatedinAfrica.Lookingfurtherahead,resourcesdevelopmentwillremainacornerstone,ifnotthecornerstone,ofAfrican economic development for the remainder of the twenty-first century - and perhaps wellbeyond.TheAfricanUnion (“AU”)hasrecognisedthis reality in launching itsAfricanMiningVision(2009)3andActionPlan(2011),tosupportAUmember’seffortstouse“transparent,equitableandoptimal exploitation ofmineral resources to underpin broad-based sustainable growth and socio-economicdevelopment”.Resourcecompanieshaveanobligationtosupportthisworthyaspiration,enabling the people in the local communities surrounding their operations to be engagedmeaningfully to reach their full potential. Such an approach is becoming widely accepted inAustralianandWesterncompanies,asfundamentallygoodforbusiness.

1http://www.un.org/en/development/desa/policy/cdp/ldc/ldc_list.pdf2https://www.weforum.org/agenda/2016/04/worlds-fastest-growing-economies/3http://www.africaminingvision.org

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In response to the Senate’s call for public submissions on Australia’s trade and investmentrelationshipswiththecountriesofAfrica,AAMEGoffersthefollowingcommentsthatareintendedtorespondtoaspectsofitems(a),(f)and(g)oftheTermsofReferencelistedonthewebsiteat:http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Foreign_Affairs_Defence_and_Trade/TradeinvestmentAfrica Australian Resources Industry Engagement in Africa

It is not surprising that the Australian resources industry has found its way to Africa, led by theminers, and followed by oil and gas companies and major service industry providers. Australianmining is genuinely entrepreneurialwith a “cando” attitude,with a capability in assessing, and apreparednesstotakeon,unfamiliarrisks.Australianresourcecompaniesalsogenerallyunderstandthat,tobesuccessfulinAfricainamannerthatwill be sustainable, theymustbeable todealwith anumberofnon-technical risks includingpolitical and social risk, institutions that often lack the capacity to function, security and healthissues,extremepoverty,briberyandcorruption,host-governmentactionorinactionthatadverselyimpactsinvestmentconditions,theoccasionalunpredictableactionsofhost-countrysecurityforces,andmanyotheroften-unfamiliarrisks.TheminingindustryhasledthewayinAustralia’sre-engagementwithAfricasincethe1990s,andithasdonesowithnotablesuccessasdemonstratedbythenumberofAustralian-operatedminesthathavebeenbrought intoproduction (seeFigure1onpage4),aswellas themanner inwhich localcommunitiesandhostgovernmentshavebeenappropriatelyandmeaningfullyengaged.Sub-SaharanAfricahasthehighestconcentrationofAustralianresourceprojectsintheworld,withsome36%ofthetotalnumberoutsideAustralia,comparedwiththatintheAsia-Pacific(22%),LatinAmerica (17%)andUSA/Canada (14%).4Sub-SaharanAfricaalsoaccounts for48%ofallAustralianresourceprojects indevelopingcountries.The involvementof theAustralian resources industry inAfricaisverysignificant.The longhistoryandscaleof theAustralianmining industry, coupledwith its focuson innovation,has resulted inworld-leadingexpertise inminingandmining services.This strength shouldnotbedismissed as being part of Australia’s “old economy”. Rather it should be embraced for its globaltechnical leadership across theboard, in resource science and all associated technologies, projectdevelopment and sustainability practice. It has also provided the means to enable thecommercialisation of large low-grade mineral deposits, which were previously considereduneconomic.The Australian Mining Equipment, Technology and Services (“METS”) sector comprises a diverserange of companies that produce technologically advanced, globally competitive products andservicesforminingcompaniesworld-wide.TheMETSsectorisonagrowthtrajectory,havinggrownfive-foldinthelastfifteenyearsandnowexportingtovirtuallyeverycorneroftheglobe.Some84%ofthecompaniesintheMETSsectorareAustralianowned.During2012,itwasestimatedthattheMETSsectoremployedmorethan385,000people,spentinexcessof$1.6bnonresearchanddevelopment(“R&D”),andearnedrevenuesofalmost$90billion,

4http://www.cet.edu.au/knowledge-base/publications/133506_sharing-the-benefits-report

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including $15 billion in exports derived from the minerals and mining business5. Much of thisAustralian-sourcedexpertiseprovidestheAustralianMETSsectorwithacompetitiveadvantageandis available for the continued discovery and development ofmineral deposits in the countries ofAfrica6(seeAppendixIV).

Figure1:LocationofAustralian-operatedexplorationandresourceprojectsinAfrica,2015.

5https://www.cmewa.com/policy-and-publications/policy-areas/economic-competitiveness/preview?path=Industry-growth-centres-METS-sector.pdf6MiningEquipment,TechnologyandServicesReport,AustradeMarch2016

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AustraliaisoneofthetopinvestorsinmineralexplorationinAfrica.Therearecurrentlymorethan170 Australian Stock Exchange-listed mining and other resource companies operating over 400advancedprojectsinsome35Africancountries(AAMEGresearch2016).Australian-listedcompaniescontrolmorethan48miningoperationsinAfrica.

Figure2:SectorinvestmentbyASX-listedcompaniesinAfrica,2015(SNLMetals&Mining).Therangeofmineralsisextensiveandthescaleofexploration,extractionandprocessinginvolvingcurrentandpotentialinvestmentisestimatedtobeworthmorethan$40billion.Inaddition,therearehundredsofAustralianbased,non-ASX-listedcompaniesinvolvedinexploration,operationsand

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developmentprojects inAfrica. Furthermore,aboutone in20companies listedon theAustralianStockExchangehasan investment inAfrica.Nowhereelse in theworlddoAustralianmining firmshavesomuchinvested.TheuseofAustralianexplorationandminingsoftwareandothertechnologies in thesediscoveriesandinongoingmineoperationshasalsobeenimportant.Some60%oftheworld’sexplorationandminingsoftwarehasbeendevelopedinAustralia.Thissectorgenerates$600millionayearofminingrelatedrevenuesandmorethan$240millioninexports7.TheAustralianpipelineofinvestmentandprospectiveinvestmentinAfricaremainssubstantial–andcompanies involved range from the largest companies (BHP Billiton and Woodside Energy), tomedium sized companies (including Resolute Mining, Base Resources, and Perseus Mining) tosmaller sized companies (such as Tiger Resources, OreCorp, Kibaran Resources, Graphex Mining,Sarama Resources8 and Regal Resources); the great majority of which have their head offices inPerth.Australian service companies (Ausdrill, Barminco, PricewaterhouseCoopers, International SOS,CapitalDrilling,ClaytonUtz,etc)alsohaveaverysubstantialpresenceandinvolvementinAustralianoperatedprojectsinAfrica.Thepotentialforfuturegrowthisdemonstratedbythefactthatjust5%ofcurrentminingprojectsareproducingassets,withthebalance invariousstagesofexplorationanddevelopment(source–AAMEGresearch2016).Forexample,thespreadofAustralianprojectsinNamibiademonstratesthis(see Appendix I). Should even a small proportion of the development assets in the countries ofAfricamoveintoproduction,thescaleandimpactoftheAustralianfootprintcouldbeexponentiallylarger.Beyond the technical aspects of exploration and project development, the Australian resourcesindustryhasmadeasignificantimpactinsocialandcommunitydevelopmentprojects.TheAustralia-AfricaMineralsandEnergyGroupisactiveinprovidingsupporttomembercompaniesacrossmanyoftheseaspects.Importantly, Australian resource industry operators understand that industry cannot help peoplepermanentlywithnever-endinghand-outs,orbydoingforthem,thingsthattheycould,should,andwant to do for themselves. Bi-lateral and multi-lateral aid programs, although an extremelyimportant component, will not lift impoverished African communities out of poverty sustainably.Businessenterprise,capacitybuildingandopeningthedoortoopportunityareabsolutelyessentialingredients.ThesectiononBicyclesforHumanityinAppendixIisbutonesmallexampleofhowthiscan be done. There aremany examples of Australian resource companies engagingmeaningfullywith the communities surrounding their operations, and incorporating them, to the maximumextent,inthebusinessactivity,enablingallinvolved,theopportunitytoreachtheirfullpotential.Inbringingtherequisitetechnicalandsocial-developmentcapabilitytoAfrica’s“neweconomy”,andwitha largeandexpandingfootprint,theAustralianresources industryprovidesauniqueplatformfortheefficientprogressionofAustralia’snationalinterestinAfrica.Australia’seconomicdiplomacyinitiativeisthereforewellplacedtoleverageoffthesubstantialandmeaningfulfootprintestablishedbytheAustralianresourcessector.

7MiningSoftwareandSpecialisedTechnologiesReport,AustradeSept20138TSX-listedbutheadquarteredinPerth.

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AAMEG – Australia-Africa Minerals & Energy Group

The Australia-Africa Minerals & Energy Group (“AAMEG”) was established in 2010, followed byformal incorporationinApril2011.AAMEGcurrentlyrepresentsandsupportsalmost80Australianmining, oil & gas, exploration, service and supply companies, and individual consultants active inAfrica.AAMEG has been working to build strategic relations with Governments (both in Australia andAfrica),NGOs,industryandacademia,andencouragingmorecollaborativeapproachestoresources-driven socio-economic development, including the establishment of effective Public-PrivatePartnershipstopromotecommonAustralianpoliticalandstrategic interests inAfrica. Werecentlyproduced an updated document - “Australia and Africa: Assessing the scale and potential ofAustralian engagement in Africa”, 2017 (located on the AAMEG website) which highlights theimportance of the Australia–Africa relationship and begs the question regarding future Australiangovernmentengagement.AAMEGispartytoongoingdiscussionswiththeAfricanDevelopmentBankandAustralianHeadsofMissionbasedacrossAfrica, to identifypossibilities foranAAMEGcontribution, including throughAAMEGmembers running or participating in training courses. Domestically, AAMEG is partneringwithourlocaluniversitiestodevelopandpresenttrainingmodulesforAustralianresourceindustrycompanies operating or contemplating operations in Africa and also for Australian AwardsparticipantscomingtoAustralia.AAMEG has undertaken investment climate reviews of Ghana and Liberia, providing the industryfindings to both the Australian and the host country governments. AAMEG is currently activelyworkingwithitsmembersoperatinginTanzania,giventherecentlegislativechangesannouncedinearlyJuly2017.AAMEGiscontinuouslyintouchwithDFATasitformulatesaresponseonthisissue.AAMEGhasbeenengagedsince2012,withtheCentreonGlobalHealthSecurityatChathamHouseandUSAID (Emerging Pandemics Threats Program) in the Extractive Industries InfectiousDiseasesRisk Assessment and Management Initiative (“IDRAM Initiative”). Activities around extractiveindustry operations in tropical hotspots frequently bring humans and animals into closer contact,which can potentially modify virus transmission patterns. Prior to this work, there was noestablishedframeworkforevidence-basedriskassessmentandriskmanagementofoutbreakswithpandemic potential related to human activities in tropical hotspots. The IDRAM Initiative wasdesigned to study these issues, as seen from amining development activity aspect in Africa (seeAppendixV).AAMEGconductsworkshopsaddressingavarietyofissuesincludingforeignbriberyandcorruption,cybersecurity,personnelsecurity. Ithasactivelypromotedamongst itsmembers,supportfortheOECD Convention on Combating Bribery of Foreign Public Officials in International BusinessTransactions (ratifiedbyAustralia in1999), theExtractives IndustryTransparency Initiative (“EITI”)(implementedbyAustraliainMay2016)andtheVoluntaryPrinciplesonSecurityandHumanRights(“VPSHR”).Inaddition,AAMEGsupportstheSustainableDevelopmentGoals(“SDGs”)9,particularlyGoal 17, to “Implement effective and targeted capacity-building in communities within themineimpactareainordertosupportthenationalimplementationplansforthesustainabledevelopmentgoals”.

9http://search.dfat.gov.au/s/search.html?collection=dfat&form=simple&query=SDGs&profile=dfat

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AAMEGhascoordinatedworkingsessionsforitsmembersthathaveincludedrepresentativesfromtheFederalAttorney-General’sDepartment,theAustralianFederalPolice(“AFP”)andtheBusinessLiaisonUnitoftheAustralianSecurityIntelligenceOrganisation(“ASIO”).AAMEGisanactivememberoftheUNGlobalCompactNetwork-Australiaand inthiscapacity, itrecentlyassistedtheDepartmentofForeignAffairsandTrade(“DFAT”)withthedevelopmentofaset of model clauses under the VPSHR (ratified by the VPSHR Plenary Session in June 2016), forindustrytouseinsecurityagreementsbetweenGovernmentSecurityForcesandcompaniesintheextractivessector.AAMEG has taken a lead role in responding to current security concerns across Africa. It hascoordinatedaSecurityWorkingParty,withsupportfromDFATandASIOtoaddresstheseissues.InFebruary2017,AAMEGlaunchedapackageofinitiativestoassistinrespondingtosecurityconcerns,includingasecurityapplicationcalledD-Risk10(seeAppendix III). This isavailabletomembersandwill track recent security incidents or concerns in the areas where their workforces, includingAustralianexpatriates,areoperating (further informationregarding this initiative is locatedontheAAMEGwebsite).OneAAMEGmemberhasbeenresponsibleforthedevelopmentofa55-pageAAMEGSocialAspectsManagementHandbook(July2015),whichisavailabletomembercompanies,andwhichincludesaforewordwrittenbytheHon.JulieBishop,Australia’sForeignMinister.AnAAMEGmember company, in collaborationwithMIGA (WorldBank agency) and aUSmilitaryconsultantexperiencedinsuchissues,developedaVPSHRImplementationToolkitforMajorProjectSites11,whichwasbasedonanactualfieldexperienceinAfrica.AAMEG has provided two submissions to the Federal Government (Dec 2011 & Aug 2015)addressing ForeignBribery andCorruption issues and a submission to the FederalGovernment inFebruary2017 titled “TheEconomicandPolitical Significanceof theAustralianResources IndustryPresenceacrosstheAfricanContinent”.AAMEGalsoworkscloselywiththeorganisersoftheAfricaDownUnderConferenceinPerthwhereit has conducted workshops and information sessions on a variety of issues relevant to thechallengesofoperatinginAfrica.An AAMEG member company12 has developed guidance for member companies on how toincorporateelementsoftheSustainableDevelopmentGoals(“SDGs”)intothecorporatestrategyinawaythatmeetstheoverlappingobjectivesandexpectationsofa)thecompany’sbusinessplan,b)the community’s needs and aspirations and c) the SDGs. Given that the SDGs are a set of 17individualgoalsand169specific targets thatseek toaddressawiderangeofdevelopment issues,theguidance identifiesanappropriatenumberofachievabletargets (seeAppendix II)within11ofthe SDGs, deemed appropriate for smaller resource companies to focus on and deliver positiveoutcomes.Astheguidancestresses,itisimportanttofocusonthenatureofthecompanyactivitiesandthepeopleinthelocalcommunitiesandtofindthesweetspotwherethereisoverlapbetweenthe business drivers, the SDG targets and local development needs. The approach will varydependingoncircumstancesfromonelocationtoanother,aswellasonthesizeofthecompanyandscaleofthespecificminingoperation. 10https://www.d-riskalert.com11 http://www.miga.org/documents/VPSHR_Toolkit_v3.pdf 12http://socialaspectssolutions.com

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AAMEGhasdevelopedanAssociateMembershipcategoryforAfricanGovernments. This initiativeprovidestheopportunityformeaningfulengagementandlearningsacrossanumberofissues.Wearecurrentlyusingthisplatformtodiscusssecurityissuesandthekindofresponsethatneedstobedeveloped.AAMEGhasregularliaisonwithDFATinrelationtoprogressingareasofcommoninterest.Whilethishasresultedinanumberofsuccessfulinitiatives,thereismutualrecognitionthatsignificantlymorecan be achieved to the benefit of Australia’s national and economic interests, with an explicitlyintegratedstrategicapproach that ismorecollaborativewith industry inorder tomoreeffectivelyengagewiththeindividualcountriesinAfrica.The Role for Government as a Partner of the Resources Industry

Notwithstanding the strength of the Australian private resources sector engagement in Africa,Australiangovernmentsupportandengagementisvitallyimportant.Australia’smaincompetitorsintheAfricanminingspaceoftendohavesubstantialgovernmentbacking(particularlytheCanadians,British and Chinese) and with models more integrated with industry, in what is recognised as achallengingandoftenunpredictableoperatingenvironment.The Australian diplomatic and trade network in Africa plays a vital role in supporting Australianbusinesses on the ground, including through their honest-broker rolewith host governments, butmuch more could and should be done, given the size of the footprint of Australian commercialinterestson theAfrican continent.Australia is considereda global leader in resource governance,which also enhances the reputation and investment climate for the Australian resources industrybackhome.TheminingsectorhasappreciatedtheopportunitytopartnerwithGovernmentincapacity-buildingefforts(throughtheDirectAidProgram)andtosupporttechnicalassistanceprograms(investmentclimate reviews and revisions of mining codes), but there is much opportunity to expand thiscollaboration. SenatorLindaReynolds,whoparticipated in the IndabaMiningConference inCapeTowninFebruary2017expressedthiswellinherspeechtotheSenateon28March2017whenshesaid,“..itisclearthatthereissomuchmorethatAustralia[AustralianGovernment]candointheseareas with relatively modest but well targeted development investment that I think wouldseamlesslyintegratewiththeworkbeingdonebycompaniesandNGOsinlocalcommunitiesandatminesites”.Nevertheless, the Australian Government has established a notable beachhead from which toexpand its collaboration. Last year, the very well targeted Australian Award scholarship programresulted in 268 Australian Award scholarships being provided to African students, withapproximately50%ofthosegoingtofemalestudents.Asaresultofsuchprograms,therearenowmore than 6,000 Australian Awards alumni across the African Continent. In addition to skills andknowledge development, this collaboration builds an influential network of thought leaders whohaveastrongreasontopromotefurtherengagementbetweenAustraliaandAfrica.ThebenefitofsuchcooperationtobusinessisthatitaddstothestandingofAustraliancompanieslocally,aswellas at central government level. Australian industry benefits from more stable operating andlegislativeconditions,thereby improvingreturns. Inaddition,significantpoliticalcapitalcanaccrueto Australia as a result of the type of engagement that is viewed as a “helping hand” to a hostcountryanditscitizens,whichinturnresultsinagreaterwillingnessofhostgovernmentstoacceptgovernment-to-governmentadviceandguidance.

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Too often in the past, aid has been viewed as a “hand out”, with the subsequent “sense ofdependency” that attaches to that approach. The required focus now is more on collaborationamongstthevariousstakeholders,capacity-building,sharedvaluesandsharedbenefits.Africangovernmentswantthedevelopmentofresourceprojectstocontributeto,ifnottokick-start,broader based economic development and are looking atmeaningful government-to-governmentrelations to be the facilitator for improvements in the investment climate and attractiveness todirectforeigninvestment(“DFI”).One notable example of effective support for foreign governments in this regard has been thehandbook called “50 pieces of advice to an official who is engaged in the negotiation of miningcontracts”, by Professor Fabien Nkot, Senior Advisor to the Prime Minister of Cameroon. Thisimportant work13 was produced with the support of the IM4DC, a joint venture between theUniversity ofWesternAustralia (UWA) and theUniversity ofQueensland (UQ) and fundedby theAustralianGovernmentthroughanAustralianAidInitiative.Anotherexampleofeffectivesupport for foreigngovernmentsandAustralian resourcecompaniesinvolvedinAfricaisthehandbookproducedbytheAustralianGovernment,academiaandindustryrepresentatives, titled “Social Responsibility in the Mining and Metals Sector in DevelopingCountries”. This handbook draws on examples of Australian leading practice and has beendevelopedasaguideforarangeofaudiences;miningcompanymanagers(especiallythoseinsmalland medium-sized companies) who operate in developing countries, governments of developingcountries,NGOsandcommunities.Australian companies in Africa have a well-deserved reputation for ethical dealing and a well-developed sensitivity to Social Licence to Operate issues. When that is set alongside Australiantechnical resource industryexpertise,Australiabecomesaverydesirablepartner formanyAfricangovernments–infacta“partnerofchoice”andan“employerofchoice”.AscommentedbySenatorReynolds in her Senate speech following the Indaba Mining Conference, “....now is the time todeepenandbroadenourtiesacrossthiswonderfullyvibrantanddiversecontinent–withalmostabillionpeople,millionsofwhomarenowmovingintothemiddleclassandlookingformanyofthegoodsandservicesthatwecanprovidethem”.TheAustralianGovernment’sengagement,particularlyinrecentyears,hasgreatlystrengthenedthehandof industryandaneffectivegovernmentroleremainscrucial intheperiodahead.Overall,anincreasingnumberofAfricangovernmentswantwhattheAustralianresourcesindustryhastooffer,including the training opportunities at both technical and governance levels. However, dramaticfluctuationsinAIDfundingandtechnicalassistanceprograms,aswehavewitnessedinrecentyears,have the potential to develop a sense of scepticism from foreign governments as to the actualintendedpurpose.Asteadyandsustainedlevelofeffortandengagementislikelytodeliveramuchbetterresult.Current Situation and Future Opportunities

AAMEGhasbeencloselyengagedwithgovernmenteffortstouseresourcedevelopmenttopromotebroaderbasedsustainabledevelopmentinAfrica.AreasofaidfocusinAfricaincludingminingskillsdevelopmentandmininggovernanceareareasinwhichAustraliahasexpertisetoshareandwherebothAfricanGovernmentsandbusinessseeopportunitiesforeconomicgrowthanddevelopment.

13http://im4dc.org/wp-content/uploads/2013/07/Negotiation-Handbook.pdf

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AAMEGhasalsoworkedactivelytoengagetheWAGovernmentoncooperationforminingrelatedactivityinAfrica.PremierBarnett’s2014visittoLusakaandhismeetingswithMinistersandseniorofficialsofCOMESA(theCommonMarketforEasternandSouthernAfrica),culminatedinthesigningofaMemorandumofUnderstanding,followedbyhisattendanceattheInvestinginAfricanMiningIndabaConferenceinFebruary2014.ThisisanindicationoftheWAGovernment’sgrowinginterestand involvement in the African mining scene. Senator Fierravanti-Wells’ visit to Addia Ababa inJanuary 2017, in her role as Minister for International Development and the Pacific, furtherenhancedAustralia’sconnectionwithAfrica.AAMEG believes that it is ideally placed to add greater substance to resource industry skillsdevelopmentandcapacity-buildingprogramsinAfrica.AAMEGmembershavealreadyparticipatedin and supported government fundedmining study tour events, but unfortunately so far this hastendedtobeonasomewhatadhocbasis.AAMEG has the capacity through its members to organise work experience placements both inAfrican and Australian-based offices for mining/engineering students and resource governancepersonnel. There has also been discussion about participation in the Australia Awards Scheme;however,thereiscurrentlynoprocessforsubstantiveindustryinvolvement.It is felt that a lack of in-depth understanding of the extent to which the Australian resourcesindustry has established an enviable beachhead on the African continent has resulted in widefluctuationsinthelevelofengagementandGovernmentpolicydecisionsthatarenotsupportedbywell-informed discussion. The Australian resources industry, including its METS sector, is clearlyworldclass,notonlyintermsoftechnicalachievements,butalsointermsofitsfocusonresponsiblecorporate business conduct. The position that the Australian resources industry has developedduringthepast25yearsontheAfricancontinentprovidesawonderfulopportunityfortheFederalGovernmenttoleverageitseconomic-diplomacyinitiative.Recommendations

1. Industryknowledgeandunderstanding

It is recommended that theAustralianGovernment engages a data collection service,well-versedand active in the Australian resources sector, to collect the data necessary to have a betterappreciation and understanding of the scope and depth of the Australia resource industry’scomparative advantage globally, and the scale of its involvement on the African continent,comparedwiththat inotherpartsoftheworld.ThisresearchshouldincludeanassessmentoftheeconomicbenefitgeneratedfortheAustraliangovernment,employeesandcompanies.Thiswouldprovide a better basis for policy decisions and lead to amore steady, sustainable and productivegovernment-to-governmentengagement.2. Supportfortheresourcessectorcomparativeadvantage

It is recommended that the Australian Government develops a level of engagement with thecountriesofAfrica,consistentwiththeAustralianresourcesindustry’scommercialengagementandlevel of operating challenges, recognising that the Australian resources industry probably has thegreatest comparative advantage of any Australian industry, in becoming a global player. TheopportunitytoestablishanintegratedstrategicapproachtoengagementwithindividualcountriesinAfrica, which both leverages and reinforces Australian resource industry activities, is consideredsignificant.

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3. Economicdiplomacy

It is recommended that the Australian Government and industry engagemore collaboratively oncapacity-building initiatives (resource policy, administration training, governance, health andsecurity), in order to take advantage of obvious synergies, reduce the overall costs of specificinitiatives and better support both the Government’s and industry’s overlapping diplomatic andsocio-economicinterests.TherecentpilotundertakeninKenya,Ethiopia,Zambia,Zimbabwe,andNigeriawasacosteffective,capacity-buildingprogramthatwasconductedin-countryandwasagoodexampleoftheAustralianGovernment, the Western Australian Government, African Governments and industry workingtogether for positive outcomes. This program, for limited costs, has the potential to expand andAAMEGwouldbekeentobepartofthisprocess.4. Targetedsupport

It is recommended that Australian Government focuses initially on those resource-rich Africancountries in which the Australian resources industry already has a substantial interest andinvolvement. By working collaboratively with industry, a better understanding of the issues thatnegatively impact host-country investment climates can be achieved, leading to better-directedcapacity-building initiatives thatnotonlybenefitAustralian resource companies, but also improvetheoverall attractivenessof thehost country as a foreign investmentdestination for all potentialinvestors.ThecurrentsituationinTanzaniaisanexampleofwhereimprovedcollaborationislikelytodeliver abetteroutcome for all stakeholders. Industrymembershave first-handknowledgeoflocalissuesandarewellplacedtoassistinplanningoutcomes.Tothisend,theadditionofindustryrepresentativesonGovernmentpanelswouldbeadvantageous.Australiacompaniesarealsowellplacedtoconsiderinternships,mentoringprogramsandinputintothe content of the Australia Awards program, particularly the Australian Awards short courseprogram. Built into theethosof thisprogram isprivate sectorengagement,howeverweneed tomakethisaworkingreality.5. More-steadyhost-countryengagement

It is recommended that the Australian Government endeavours to achieve a steady level ofengagement with host governments underpinned by a well-informed, long-term strategy, ratherthananapproachthat fluctuateswildly.Dramatic fluctuations in levelsofengagementcan leadtoscepticismastotheunderlyingpurposeofthatengagement,damagingthereputationofboththeAustralianGovernmentandtheAustralianindustry.Concluding Comments

AAMEGstronglybelieves that tradeand thedevelopmentof goodbusinesspracticeswill assist inalleviatingpovertyacrossthecontinentofAfrica,enablingcountriestoreachtheirfullpotential.AAMEGalsobelievesthat theresourcessector isuniquelyplacedto facilitaterelationshipbuildingandinnovativeprogramdevelopmentinvolvingGovernments,theprivatesector,not-for-profitsandacademia.Closerandmoreeffectivecooperationandcollaborationamongstthesekeysectorscanenhancetheachievementofcommonobjectives inacost-effectiveway.Wesupportworkingwithinnovativeagentsofchangefortruechangetooccur.Inmanyparts ofAfrica, sustainable economicdevelopment is alreadyunderway, underwrittenbyresourceindustrydevelopment,withtheAustralianminingsectorplayingaverysignificantrole.Theway remains open to forge a more active and balanced Public-Private Partnership between the

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mining industry and Government in the pursuit of common sustainable development objectives,includingpovertyreduction.Australia is uniquely placed to benefit from Africa’s economic potential through its activeinvolvement in resource development. Australia supports African governments in their efforts tounlock the growth potential of the continent and doing so in a socially and environmentallyresponsible manner. The benefits provided to the people of African nations include the jobscreation,skillsdevelopmentand“openingthedoortoopportunities”thatresultfromdirectforeigninvestment.Lookedatfromabroaderperspective,AustraliaalsohasimportantsecurityandstrategicinterestsinAfrica. These will be addressed in a range of contexts, but the fact is that many of Australia’sinternational security interests in Africa and elsewhere can be advanced via transformative (andsustainable) economic development, which in turn can best be achieved only through activeengagementwiththeprivatesector.Australiahasafar-reachingfootprintinAfricawithinvestmentandtradeincreasingsignificantlyoverthepast25years.However,thedevelopmentofAfrica’smineralpotentialhasreallyonlyjustbegun,and Australia should aim to have its resources sector play an ever-increasing role. Australia isrecognised as a global leader in resource industry investment overseas, technical competence,managerial capability and ethical business conduct as evidenced by the degree to which it hassuccessfully exported its capabilities to the world. We must work collaboratively to positionourselvescommerciallyanddiplomaticallytoplayakeyroleasthisAfricanCenturyunfolds.AfricaisanimportantpartnerforAustraliaandwebelievetheresourcessectorisuniquelyplacedtofacilitatethefuturedevelopmentandgrowthofthispartnership.

oOOo

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RelatedAAMEGReferencematerial:AAMIG14(Mar2010):ReviewofAustralia'sRelationshipwiththeCountriesofAfrica.SubmissiontotheJointStandingCommitteeonForeignAffairs,DefenceandTrade.(26pp)AAMIG(Dec2011): Australia’sOverseasRepresentation–Punchingbelowourweight?SubmissiontoinquiryintheForeignAffairsSub-CommitteeoftheJointStandingCommitteeonForeignAffairs,DefenceandTrade–Africa.(5pp)AAMIG(Aug2012):WhetherAustraliashouldjointheAfricanDevelopmentBank(“AfDB”)Group–theAfricanDevelopmentBank(AfDB)andtheAfricanDevelopmentFund(AfDF).SubmissiontoMultilateralPolicyandPartnershipsBranch,AustralianAgencyforInternationalDevelopment(AusAID).(3pp)AAMEG (Jul 2015):A Social AspectsManagement Handbook – Increasing Shared Value throughbetterBusinessPractices.(55pp)AAMEG(Feb2017):TheEconomicandPoliticalSignificanceoftheAustralianResourcesIndustryPresenceacrosstheAfricanContinent-LeveragingofftheresourcesindustryfootprinttodrivetheGovernment’seconomic-diplomacystrategy.SubmissiontotheAustralianFederalGovernmentforconsiderationinthedevelopmentofaForeignPolicyWhitePaper.(19pp)

14SubsequentlyrenamedAAMEG.

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AppendixI:AustralianExplorationandMiningCompaniesinNamibia

Namibia isacountry thathasattractedanumberofAustralianexplorationandminingcompaniesovertheyears,anditisoneforwhichsomeorganiseddataisavailablethankstoS&PGlobal15.

The purpose of including information on Namibia is to give a picture of the scale of AustralianexplorationandminingactivityinoneofthecountriesofAfricaforwhichthedataareavailable.

Australiancompanieshave26activeprojectsinNamibia;14early-stageexploration,tenlate-stageexplorationandtwooperatingmines.AustraliancompaniesspentUS$403.2milliononcommercialnon-ferrousexploration inNamibia in the10years (2007-2016).Thatwas40.5%of the total (US$994.3million)forallcompaniesactiveinNamibiaduringthatperiod.

ThetwominingoperationsofAustraliancompaniescombinedspentonaverageUS$247.2millionperyearongoodsandservicesfromNamibian-registeredsuppliers(2007-2015).Namibiansuppliersaccountedforanaverage77%totalprocurementexpenditureoftheseoperations.

The two Australian mining operations in Namibia combined had on average 1,556 permanentNamibian employees (2007-2015). This equated to 21% of the total employees in the country'sformal mining sector. Average number of contractors employed annually during this period was1,342.

US$5.2millionwasinvestedintocommunitydevelopmentbythetwoAustralianminingoperationsbetween2007and2015.ThisinvestmentwasUSD1.2millionmorethanAustraliaprovidedNamibiain Overseas Development Aid in the same period (US$ 4 million). The majority of this CSRexpenditurewasfocusedoneducationalandteacher-trainingprogrammesinthecountry.

Australian companies contributed US$ 201 million of tax revenue to the Namibian government(2007-2015).Thisfigureequatesto18%ofthegovernment’stotaltaxrevenuefromminingactivityinthesameperiod. ThetypesofAustralianCompanieswithactiveprojects inNamibia(asatMay2016)were16juniorexplorers,1intermediate,1major.

BicyclesForHumanity16Bicycles for Humanity is a volunteer-run, grass-roots charity organisation focused on povertyalleviation throughsustainable transport– in the formofabike.ThePerthchapter is ledbyDaveTucker,aPerth-basedresourcescompanyboardmember.OtherchaptersoperateinMelbourneandAdelaide,aswellasasisterorganisation,BicyclesforChangeinSydney.

Abicycleinthedevelopingworldcanbelife-changing.Itcanallowaccesstohealthcare,education,economicopportunityandthewidercommunity.Abicycleprovideshuge leverage inbreakingthepovertycycleasonecantraveltwiceasfar,twiceasfastandcarryfourtimestheload.

Each of the shipping containers that Bicycles for Humanity sends to Africa, becomes a BicycleEmploymentCentre(“BEC”)–acontainerisedworkshopprovidingemployment,skillsdevelopment,businessopportunityandeconomicdevelopmentforthecommunityinwhichitisplaced.EachBECbecomesaself-sustainingentity–amodelofmicro-financedsmallbusiness,whichislatelyseenasoneofthewaysforthedevelopingworldtomoveawayfromdependenceonaid.

The fourBicycles forHumanitycharitieshaveshippednearly14,000bikes in36containers to fourAfricancountriesandestablished14newBicycleEmpowermentCentres;somethingofwhichtobeproud.

15https://marketintelligence.spglobal.com16http://www.bicyclesforhumanity.com

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AustralianExploration&MiningCompaniesactiveinNamibia (FromS&PGlobal)

PropertyPrimary Development Activity

CompanyCommodity Stage Status

Abenab Vanadium AdvancedExploration Active AVZMineralsLimited(Owner)95%

Brandberg Tin Grassroots Active AVZMineralsLimited(Owner)95%

Caprivi Coal Grassroots Inactive InstinctEnergyLimited(Owner)85%

Chungochoab U3O8 Exploration Inactive ToroEnergyLimited(Owner)100%

Dome U3O8 TargetOutline Active ManicaMineralsLtd(Carried)10%

Epembe Tantalum Exploration Active InternationalBaseMetalsLimited(Owner)31%

Erongo Tantalum TargetOutline Inactive MagnaMiningNL(Owner)100%

Erongo Graphite Exploration Active ArgosyMineralsLimited(Owner)100%

Etango U3O8 FeasibilityStarted Active BannermanResourcesLimited(Owner)100%

Grootfontein Copper Exploration Active GoldenDeepsLimited(Owner)80%

Guchab Copper Exploration Active SabreResourcesLtd.(Owner)80%

Hammerhead IronOre ReservesDevelopment Active AVZMineralsLimited(Venturer)95%

Hoarusib Lanthanides Grassroots Inactive AVZMineralsLimited(Owner)95%

Hoasib U3O8 Exploration Inactive AfricaUraniumLimited(Venturer)70%

Huab U3O8 Exploration Active GoldenDeepsLimited(Owner)80%

Huab Coal Grassroots Inactive InstinctEnergyLimited(Owner)85%

KalahariCopperbelt Copper Exploration Active InternationalBaseMetalsLimited(Owner)100%

Kamanjab Zinc Exploration Inactive InternationalBaseMetalsLimited(Owner)100%

Kaoko U3O8 Grassroots Active ManicaMineralsLtd(Owner)29%

Karibib Lithium Exploration Active AurochMineralsLimited(Owner)100%

Kuiseb Copper ReservesDevelopment Active TakoradiLimited(Venturer)70%

LangerHeinrich U3O8 Operating Active PaladinEnergyLimited(Venturer)75%

Marenica U3O8 Prefeas/Scoping Active MarenicaEnergyLtd(V)75%;MillenniumMins,(P/L)Ltd5%

Mile72 U3O8 ReservesDevelopment Active MetalsAustraliaLimited(Owner)100%

Nakop U3O8 Grassroots Inactive ManicaMineralsLtd(Owner)100%

NovaEnergyJV U3O8 Exploration Active DeepYellowLtd(Owner)65%;ToroEnergyLtd(V)25%

Omahola U3O8 Prefeas/Scoping Active DeepYellowLimited(Owner)100%

Omitiomire Copper FeasibilityComplete Litigation InternationalBaseMetalsLimited(Owner)100%

Ongava Zinc ReservesDevelopment Active SabreResourcesLtd.(Owner)

Ongombo Copper Prefeas/Scoping Inactive NamibianCopperLimited(Venturer)80%

Opuwo Cobalt TargetOutline Active CelsiusResourcesLimited(Optionee)76%

Otjozondu Manganese Operating Inactive ShawRiverManganeseLimited(Owner)100%

Paresis Copper Grassroots Inactive AVZMineralsLimited(Owner)95%

PavianTrend Zinc Prefeas/Scoping Active SabreResourcesLtd.(Owner)70%

Rossing U3O8 Operating Active RioTinto(Owner)68.6%

Shiyela IronOre Prefeas/Scoping Active DeepYellowLimited(Venturer)95%

SkeletonCoast Diamonds LimitedProduction Inactive MagnaMiningNL(Owner)100%

Steinhausen Copper Exploration Active InternationalBaseMetalsLimited(Owner)100%

Tumba Copper Grassroots Active AVZMineralsLimited(Owner)95%

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AppendixII:SustainableDevelopmentGoals AAMEG provides guidance on 6 Key Goals and 18 Specific Actions for small and medium sizedresource companies, aimed at making a positive impact on the Sustainable Development Goals(“SDGs”):SDG1&2:NOPOVERTYandZEROHUNGER

Ø Employasmanypeopleaspossiblefromwithinthecountryandthemineimpactarea,Ø Purchaseasmanyproductsandservicesaspossiblefromwithinthecountryandthemineimpact

area,Ø Minimisetheimpactsoflandacquisitionforprojectinfrastructure,Ø Supportthedevelopmentofnon-mininglivelihoodswithinthemineimpactarea,andØ Paytaxesandroyalties.

SDG3:GOODHEALTHANDWELL-BEINGØ ReducetheincidenceofAIDS,TB,malariaandcombathepatitis,water-bornediseasesandother

communicablediseaseswithinthemineworkforceandcommunitieswithinthemineimpactarea,

Ø Reducetheincidenceofearlydeathfromnon-communicablediseaseswithinthemineworkforce,

Ø Activelytargetthepreventionandtreatmentofdrugandalcoholuseandabusewithinthemineworkforce,

Ø Achievezerodeathsfromroadaccidentsinvolvingcompany,contractorandsuppliervehicles,&Ø Strengthenthein-countrycapacityforearlywarning,riskreductionandmanagementofnational

healthrisks.

SDG6:CLEANWATERANDSANITATIONØ Minimisemine-relatedpollutionbyeliminatingdumpingandreleaseofhazardouschemicalsand

materials,avoidingthereleaseofuntreatedwastewaterandsubstantiallyincreasingrecyclingandsafereuseofprocessandfreshwater,

Ø Maximisewater-useefficiencyandensuresustainablewithdrawalsandsupplyoffreshandprocesswatertoavoidaddingtowaterscarcityinthemineimpactarea,and

Ø Supporttheparticipationofcommunitieswithinthemineimpactareainimprovingwaterandsanitationmanagement.

SDG16:PEACEANDJUSTICEØ Minimisemine-relatedconflictandviolence,Ø Promotetheruleoflawatthelocalandnationallevels,Ø Adoptazero-toleranceapproachtocorruptionandbriberyinallmine-relatedtransactions,Ø Supportthedevelopmentofeffective,accountableandtransparentinstitutionsatcommunity,

localandnationalgovernmentlevels,Ø Ensureresponsive,inclusive,participatoryandrepresentativedecision-makingwhenaddressing

mine-relatedissues,andØ Ensurepublicaccesstomine-relatedinformation.

SDG17:PARTNERSHIPSFORTHEGOALSØ Implementeffectiveandtargetedcapacity-buildingincommunitieswithinthemineimpactarea

inordertosupportthenationalimplementationplansforthesustainabledevelopmentgoals,and

Ø Developeffectivepublic,private-publicandcivilsocietypartnershipswithinthemineimpactarea,buildingontheexperienceandresourcingstrategiesofpartnershipswheneverdoingsowillimprovetheefficiencyandeffectivenessofachievingthesustainabledevelopmentgoals.

Source:ASocialAspectsManagementHandbook–IncreasingSharedValuethroughbetterBusinessPractices,55pp,Jul2015writtenbyAAMEGmemberRobinBudden(http://socialaspectssolutions.com)

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AppendixIII: D-RiskLiveSecurityAlerts17

AFRICAN FOCUSED SECURITY INTELLIGENCE SERVICE – D-RISK

Sahara Mining Services (Sahara) in strategic partnership withMS Risk, has created the D-RiskSecurityalertservicewithcoverageover tencountries inWestAfrica;Ghana, IvoryCoast,Nigeria,Mali,Niger,Senegal,BurkinaFaso,SierraLeone,TogoandLiberia.D-RiskhasbeendevelopedwiththedirectinputofAAMEGmembersoperatinginWestAfrica.The D-Risk Live Security Alert is an African focused security intelligence service that provides livesecurity alerts to smartphones and computers as they occur. Alerts are accurately located on aninteractivemap and are classified as either Terrorist Attacks, Civil Unrest, Kidnappings or ArmedRobbery.

Figure 1 - Four types of Security Alerts reported on D-Risk

D-Riskenablescompaniesandtravellerstoaccuratelyassesstherisksanddangersassociatedwiththeirbusinesses,investmentsandtravelplans.WhyD-Risk?

The motivation for creating a mobile app “D-Risk Alerts” was born out of operational necessity.SaharaoperatesinremotepartsofWestAfrica,andtheirfieldpersonnelhadbeensubjecttoarmedrobbery attacks whilst on assignment. Additional terrorist attacks at the Splendid Hotel inOuagadougou, (Jan2016 / 25people killed) andRadissonHotel inBamako (Nov2015 / 20 killed)were literally kilometers fromwhere Saharahasoffices andemployeesworking. Sahara took thesteps of forming a joint venture with MS Risk. The combined skills of MS Risk (Intelligencecollection)andSahara(GISanddatabasemanagement)resultedinthedevelopmentoftheD-RiskApplication. The D-Risk application has been entirely developed within West Africa. Softwareprogrammers fromGhanawereemployedby Saharaandare still fully employed indevelopingD-Risk.Conclusions

With thedeteriorated security situation acrossNorthAfrica, specifically since the LibyanWar andthefalloftheGaddafiregime,WestAfricahasseenamarkedincreaseinterrorismandotherhigh-riskincidentstrackedbytheD-Riskapplication.CompanieswantingtooperateinWestAfricaneedtobeclearlyawareofthehistoricalandfuturethreatswithwhichtheywillbepresented.D-Riskprovidesacommonplatformthatcanseesubscriberscontributetoeveryone’ssafety. It isnearlyimpossibletopreventthenextattack,butitisnowpossibleforcompaniesandindividualstobewellpreparedwiththelatestinformationattheirfingertipstotrack,trendandmitigatesecurityexposurestomeetdutyofcareobligationsandachieveimprovedoperationalconfidence.MoreinformationonD-Riskcanbeaccessedon:www.d-riskalert.com 17 https://www.d-riskalert.com

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AppendixIV:METSSectorEngagementofAfrica(theAusdrillLtdexperience)The AustralianMining Equipment, Technology and Services (“METS”) sector had a gross value of$65.4billion18 for2013-14,employed385,000peopleandhadexportsof$11.4billion.The sectorrecordedagrowthrateof6.3%duringthesameperiodcomparedwiththenationalaverageof3.6%.Ausdrill Ltd (“Ausdrill), an ASX-listedcompany, is one example of the companiesin this sector, working in Africa throughsubsidiariesandjointventurepartnerships.

Ausdrill manages its drilling operations inAfrica through a wholly owned subsidiary,African Mining Services (“AMS”). Duringoperations that had rather humblebeginnings in Kalgoorlie in 1987, thecompanyhascontinuedtogrowfor27yearsand has generated revenues of over $6.5billion.

Thecompany’sundergroundminingservicesinAfricaarecarriedoutbyAfricanUndergroundMiningServices (“AUMS”), a joint venture between Audrill and Barminco Pty Ltd. This joint venture hasbeeninoperationforthepast10years.

AMSandAUMShaveoperatedinGhana,Mali,BurkinaFaso,GuineaandSenegalinWestAfrica;inZambiaandTanzaniainEastAfrica;andinSouthAfrica.Companiestowhichithasprovidedservicesinclude–AnglogoldAshanti,Goldfields,Newmont,Randgold, Perseus, Kinross, EndeavourMining,ResoluteMining,HummingbirdResources,ToroGold,RoxgoldandSemafo.

Both AMS and AUMS have always strived to operate in a way that demonstrates a strongcommitmenttothepeopleandthecountryinwhichtheyareoperating.Goodcorporatecitizenshipis a fundamental elementof the companies’ corporate strategies. The companyhas trainedmorethan20,000peopleintheartofsurfaceandundergroundmining.

Aswellastrainingthelocalworkforceandenablingthemtoreachtheirfullpotential,thecompanieshavesupportedanumberofsocialdevelopmentprogramsincludingparticipationinthebuildingofschoolsandhospitalsinthelocalvillagesinthevicinityoftheiroperations.Thecompanyisproudofthework ithasdone in supporting theGraceMasakFoundation,anorphanage inEwutuSenya inCentralGhana.

ThecompanywasquicktoactduringtheEbolacrisisinWestAfricainearly2014,initiatingtheEbolaHandWashSoapProjectattheiroperationsinGuinea.AnAMSseacontainerwasconvertedintoasoap-makingenterprise,mannedbytheAMSEmployeesWives’Association.Thisinitiativeandtheawarenesstraining,resultedinsignificantlyimprovedbasichealthandhygienepractices,particularlyinlocalcommunities.

LocalstaffwhohavebeentrainedbyAMSsupervisorshavegoneontoassumerolesinoperationsthattheyoncecouldnotevencontemplate.Somehavegoneontobecomeexpatriatesintheirownright,workingallover theAfricanContinent,and insomecases,elsewherearoundtheworld.ThelegacyofthiscapacitybuildingworkissomethinginwhichAMStakesgreatpride.

18IndustryGrowthCentresandtheMETSSector,ElizabethLewis-GrayApril2015https://www.cmewa.com/policy-and-publications/policy-areas/economic-competitiveness/preview?path=Industry-growth-centres-METS-sector.pdf

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AppendixV:InfectiousDiseaseRiskAssessmentandManagementInitiative(“IDRAM”)

The InfectiousDiseaseRiskAssessmentandManagementInitiative(“IDRAM”)wassetupin2012bythe Centre for Global Health Security at Chatham House, under the leadership of Prof. DavidHeymann, Professor of Infectious Disease Epidemiology at the London School of Hygiene andTropical Medicine. The aim of the initiative was to increase awareness of Emerging InfectiousDisease (“EID”) in the extractives industry, particularly zoonotic diseases emanating from animalhabitatdisturbanceasaresultofminingactivities.

AAMEGwasinvolvedfromthestartofthisinitiativeinOctober2012.Theinitiativewasalsoaimedat facilitating the extractives industry contribution to national preparedness and responsecapabilities.ThevalueofthiskindofworkwassubsequentlyemphasisedwithanoutbreakofEbolainWestAfricainlate2013-14.

The PilotPhase of the IDRAM Initiative,whichwas run in theKatangaProvinceofCongo (DRC) in2014,wasdevelopedasa“proofofconcept”toexplorethefeasibilityofestablishingcollaborationsamongmultiplestakeholderstomanageEIDrisks.ThepartnersinvolvedinthePilotPhaseincluded:

o ChathamHouse&theCentreforGlobalHealthSecurity(London),(convenedthefirstmeeting,engagedpartnersandledtheinitiative),

o International SOS (who managed the project, the field program and provided technicalassistance),

o FHI360andEcologyandEnvironment(whoprovidedsubjectmatterandtechnicalexpertise),o USAIDviatheirEmergingPandemicThreat(“EPT”)Program(theprincipalfundingagency),o LondonSchoolofHygieneandTropicalMedicine(technicalexpertise),ando AAMEG(whoassistedinthecoordinationofmemberminingcompanies).

The mining companies with operations inKatangathatparticipatedincluded:

o Freeport McMoran (Tenke FungurumeMine),

o TigerResources(KipoiMine),o MMG(KinsevereMine),ando MawsonWest(DikulushiandPwetoMine).

The local authorities andotherorganisations inKatangathatparticipatedincludedtheprovincialgovernment and health authorities, provincialand regional academia and professional bodiesfromLubumbashiUniversityandothers.

Theresultsofthiscollaborativeworkconfirmedthattheprivatesector,particularlytheminingsector,canbeanimportantpartnerinEIDprevention,preparedness,andresponse.Themainrationaleforcollaborationsamongstmultiplestakeholdersisbasedonthehigheconomiccostassociatedwithuncontrolledepidemics.

Inaddition,desktopexerciseswereconductedtwicein:·Lubumbashi(DRC)for28participantsinAugust2014,and·AfricaDownUnderConferencefor39participantsinSeptember2014.

Participants in the activities of the IDRAM Initiative gained a better understanding of the socio-ecologicalimpactsofminingprojects,howthesecaninfluencediseaseemergenceandtransmissionthat result from animal habitat disturbance, and how collaborative efforts can lead to a moreeffectivemitigationoftheassociatedhealthrisks.