commonwealth mining network peter longworth director-general & ceo, cbc november 2012
TRANSCRIPT
Commonwealth Mining Network
Peter LongworthDirector-General & CEO, CBC
November 2012
About CBC
• The Commonwealth Business Council (CBC) was established in 1997 with a direct mandate from Heads of Commonwealth Governments to promote trade and investment amongst 54 member nations and increase economic linkages with non‐member countries.
• CBC’s goal is to achieve economic empowerment for shared global prosperity through the enhancement of private sector contribution to social and economic development.
Commonwealth members in international groupings:• 1 permanent member of the UN Security Council• 2 members of the G8• 3 members of the EU• 5 members of the G20• 20 members of the AU• 2 members of ASEAN• 5 members of SAARC• 12 members of CARICOM• 1 member of OPEC
• 54 member countries account for 30% of the world’s population and about 20% of international trade• IFC Doing Business Report 2010: 5 Commonwealth countries in world top 10: Australia , Canada, New
Zealand, Singapore, UK• IFC Doing Business Report 2010: 17 of the top 20 places to do business in Africa are in the
Commonwealth
The Commonwealth in the Global Economy
Top 10 Mining Companies
Out of the top 10 mining companies in the world, 8 of them are listed in Commonwealth countries.
Company Market Cap (USD) Listed
BHP Billiton 182.0 B UK & Australia
Rio Tinto 97.2 B UK & Australia
Vale 56.8 B Brazil
Xstrata 46.5 B UK & Switzerland
Anglo American 41.7 B UK
Glencore 39.3 B UK & Switzerland
Barrick Gold 39.0 B Canada
Freeport - McMoRan
37.0 B USA
PotashCorp 35.0 B Canada
Goldcorp 34.6 B Canada
• Canada is a global mining giant and is one of the world’s leading mining nations.
• 58% of the world's public mining companies are listed in Toronto.
• In 2011, 90% of all mining equity financings were completed on the Toronto Stock Exchange (TSX) and its sister Venture Exchange (TSX-V), representing 40% of all mining equity capital raised worldwide.
Commonwealth Mining Potential
Canada
Australia• The number of small cap IPOs on the
Australian stock exchange increased by 10% in 2011 to 92 listings (of which 78 were from junior mining companies).
• Last year export earnings from minerals and energy commodities reached $175 billion and accounted for 60% of Australia’s total goods and services exports.
• In 2012 they were forecast to reach $215 billion – an increase of 21%.
Commonwealth Mining Potential
London
• London is the world’s biggest centre for investment in the minerals industry.
• Nearly 40 mining companies are listed on the Main Market, London Stock Exchange, including some of the world’s largest mining corporations.
• Approximately 160 mining companies are quoted on the AIM. • Over US$ 28 billion was raised on LSE markets by mining companies in
the last five years, including $10 billion by Glencore in 2011.
Commonwealth Mining Potential
Africa
Africa produces more than 60 metal and mineral products and is a major producer of several of the world’s most important minerals and metals including Gold, PGE’s, Diamonds, Uranium, Manganese, Chromium, Nickel, Bauxite and Cobalt.
Source: http://africaanswerman.com
Mining Potential in Commonwealth Africa• Botswana• Cameroon• Ghana• Kenya• Malawi• Mozambique• Namibia• Nigeria
• Rwanda• Sierra Leone• South Africa• Swaziland• Tanzania• Uganda• Zambia• (Zimbabwe)
Case Studies on the Development Impact of the Mining Industry in Africa
Ghana
• Increased mining investment since mid 1980’s contributed to the advancement of the national economy.
• Income poverty levels were reduced at national and local levels. The greatest poverty reduction was in the four mining regions – lower than the remaining 112 districts in Ghana, outside of Accra.
Tanzania
• Research indicates that by 2017, 6 -8 % of all government tax revenue will be made up of five major gold mines.
• Gold mining is responsible for US$750 million of Tanzania’s export earnings. Botswana
• Mining contributes 34.2% of the country's GDP and 50% of its tax revenues, representing a dramatic growth in the mining industry since Botswana’s independence, where mining contributed just 1% to GDP.
• Botswana’s mining industry provides employment for approximately 13 000 people.
Canada in Africa • Africa accounts for about 17 % of
Canadian mining assets abroad. • Next to South African investments,
companies registered on Canadian stock exchanges now represent the most important source of investment in mining in Africa.
• Canadian mining investment in Africa nearly quadrupled between 2005 and 2010, from C$6.0 billion to over $23.6 billion.
Source: http://crossedcrocodiles.wordpress.com
Australia in Africa
• Committed and planned investment by Australian companies in African resources projects is more than $50 billion
• There are now at least 230 Australian companies with approximately 650 projects in mining exploration, extraction and processing, spread across 42 countries in Africa.
• Australian mining companies are the third-largest group of miners in Africa.
Source: http://www.bdlive.co.za
The Commonwealth Mining Network
• Founded at the Perth Commonwealth Business Forum in October 2011. • Welcomed as an “important initiative” by the Australian Prime Minister,
Julia Gillard, and endorsed by other Commonwealth Heads of Government at the Perth Commonwealth Heads of Government Meeting.
CBF Mining Sponsors
The CMN’s Aims• To provide a Commonwealth-wide platform to support cooperation
between mining and mining service companies, mining chambers, Governments and NGOs with mining interests.
• To provide a bridge between the major mining and financial centres of the Commonwealth.
• To provide a platform for engagement between developing countries and NGO’s on mining development matters.
• To raise pan-industry standards for safety, sustainability, value addition,
technology transfer, training and skills and local content development.
Role and ImplementationCommonwealth Mining Network services: • Top Level Policy Dialogue - facilitating discussion on policy issues of interest to
the public and private sector.
• Market-led Approach - Business Development and Matching - development of structured partnerships between companies and institutions through country mining missions, investment roundtables and a managed project database.
• Facilitating access to a range of services provided by members including: – Capacity Development– Sharing knowledge of best practice– Advisory and technical services for all aspects of mining
Founding Supporters of CMN
What We Are DoingCBC is currently developing an active programme for theMining Network: • During 2012 we have held investment promotion activities with the Heads of
Government and Mining Ministers from Ghana, Kenya, Mozambique and Zambia.
• Algy Cluff addressed a Commonwealth Mining Network Breakfast in London
on opportunities in Africa. • CBC hosted a delegation of Australian Rare Earth exploration companies and
research institutions led by the Chamber of Minerals and Energy from Western Australia.
• CBC is supporting the work of the International Mining for Development
Centre in Australia.
• We are working with a number of Indian companies looking for coal assets.
What We Want to Do in 2013 • Establish a mining training centre in Mozambique.
We are working with the Curtin School of Mines on this.
• The Mozambique Government have asked us to organise a delegation of Mining Service companies to visit in early 2013.
• The Nigerian Government have asked for our help in encouraging more exploration companies to invest in Nigeria.
• We want to hold a high level African Mining Summit in London in July 2013.
• Look beyond Africa to other Commonwealth Mining
Centres.
What We Need• CBC has unrivalled access to governments
and many of the major Commonwealth mining companies. But we need stronger relationships with the wider industry and mining financers.
• To make the CMN fully operational we are seeking seed funding from Commonwealth governments and looking at other options.
• We would be grateful for any ideas you had on how we could develop the CMN..............?
