Regional Mining Situation in Africa

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Gabriel Sheanopa Manyangadze

Transcript of Regional Mining Situation in Africa

Page 1: Regional Mining Situation in Africa

 Gabriel  Sheanopa  Manyangadze  

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African  Response  to  Mining  � The  Africa  Mining  Vision’s  action  plan  comprises  nine  program  clusters  of  activities.  These  include  prudent  management  of  mineral  rents,  building  human  and  institutional  capacities,  mining  sector  governance,  promoting  research  and  development,  dealing  with  environmental  and  social  issues  as  well  as  linkages  and  diversification  

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Mining  Companies  Opera4ng  in  Africa  �  Colonialism-­‐to  supply  resources  for  home  economies,  this  set  the  trend  that  continues  today.  

�   BHP  Billiton,  the  world’s  largest  mining  group,  has  canceled  about  USD40  billion  projects  in  Australia  mainly  due  to  high  costs,  including  labor-­‐related  expenses.  Such  costs  have  led  to  an  increased  presence  of  multinational  mining  companies  in  Africa.  This  includes  the  world’s  biggest  companies  such  as    

�  BHP  Billiton,    �  Rio  Tinto,    �  Anglo  American    �  and  Xtrata  

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Mining  Companies  Opera4ng  in  Africa  � Nevsun-­‐  Canada  � Barrick  Gold-­‐Canada  � Anglo  American-­‐  UK  � Vale  from  Brazil  � Anjin  –China  �  Lonmin-­‐UK  

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Minerals  Mined  

• Gold • Platinum

• Diamonds • vanadium

• chromium • manganese

• uranium • coal

• Iron ore • Copper

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Impact  on  communi4es,  �  Displacement  �  Pollution  of  water  sources  that  are  sources  of  livelihood  �  Social  impact  from  labour  supplying  communities  and  host  communities-­‐  diseases  like  HIV  and  AIDS  that  has  killed  ma  

�  Loss  of  land  with  little  or  no  compensation  e.g.  in  Zimbabwe  the  mining  Law  was  enacted  in  1961  at  the  height  of  the  contestation  of  political  power  hence  it  took  away  all  the  rights  from  the  indigenous  communities  

�  It  has  promoted  corruption  

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   �   leaders  spoke  of  Barrick  Gold's  tactics  in  "suppressing  dissident  voices,  dividing  communities,  and  manipulating  local  and  national  politics".  They  also  related  stories  about  "lack  of  free,  prior  and  informed  consent  for  local  people".  

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impact  on  the  environment  � Environmental  degradation  � Damaging  the  river  ecosystem  �  “  After  using  excavators  and  heavy  machinery  to  scoop  sand  from  the  river  and  dumping  it  on  the  river  bank,  Mecassi  Engineering  is  using  mercury,  among  other  chemicals,  to  search  for  gold,  before  channelling  the  polluted  water  back  into  the  river.”  ZBC  News  

� Poisoning  the  rivers  � Decimation  of  rare  plants  and  small  animals  

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� The  companies  defy  local  laws  and  pay  a  few  corrupt  top  officials  so  that  they  are  protected"We  found  them  guilty  but  they  have  not  paid  the  fine  and  two  dockets  have  been  opened  with  the  police,"  EMA  Education  and  Publicity  Manager,  Mr  Steady  Kangata  said.  ZBC  News  12  July  2015  

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peoples’  resistance  �  In  most  of  Africa  the  colonial  laws  are  still  operational  and  this  makes  it  very  difficult  to  resist.  Howeverthe  following  have  been  done:  

�  Formation  of  community  development  trust  that  deal  with  issues  surrounding  diamond  mining  in  Marange  

� We  now  have  provincial  mining  Indabas/  meetings  that  challenge  the  powers  that  be  that  include  Traditional  Chiefs  and    ministry  of  mines  

� National  Alternative  Mining  Indabas  � Alternative  Mining  Indaba  in    Cape  

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Alterna4ve  Mining  Indaba-­‐Hosted  by  Economic  Jus4ce  Network  �  It  runs  parallel  to  the  Mining  Indaba  (Mining  Companies,  Financiers,  insurers  and  suppliers)  

� The  Alternative  Mining  Indaba  brings  together  host    from  Africa,  Latin  America,  Canada  and    Mynmar  communities,  activists,  faith  based  organisations  who  are  concerned  

� Marches  against  the  Mining  Indaba  each  year  and  sends  communique  

� Have  started  direct  engagement  with  communities  that  started  this  year  

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Regional  trends  in  the  strategies  of  mining  companies  

�  In  dealing  with  government  and  people’s  resistance  to  mining,  and  identifying  which  pose  a  threat  to  people’s  communities  and  people’s  movement  

�  Pushing  for  lower  tax  regimes  and    tax  holidays  e.g.  BHP  had  a  five  year  tax  regime  and  it  closed  siting  uneconomic  ore  production  when  it  had  shipped  millions  of  tonnes  of  unprocessed  ore    

�  Paying  token  royalties-­‐Barrick’s  threat  to  suspend  operations  once  Zambian  government  trebled  level  of  royalties  to  be  paid  

�  Declaration  of  losses  in  host  country  through  intricate  accounting  systems  

�  Corruption  in  dealing  with  government  officials    where  ownership  is  not  declared  

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Mining  struggles  in  the  region  –  which  ones  have  been  successful,  and  lessons  in  the  struggle  (strengths)    � The  highlighting  of  the  archaic  laws  that  have  been  used  in  the  mining  sector  that  has  led  to:  

� Africa  mining  Vision  �  SADC  Protocol  on  Mining  � Revision  of  mining  laws  in  various  countries,  there  is  a  bill  in  the  parliament  of  Zimbabwe  

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Iden4fy  key  issues/challenges  to  be  resolved  (weaknesses)  �  Laws  have  to  be  revised  so  that  they  are  made  in  favour  of  the  host  communities  

�  Contracts  have  to  be  made  public  so  that  they  are  scrutinised  by  the  public  

�  Informed  of  the  host  communities  has  to  be  sought  before  operations  begin  

�  Communities  need  to  be  involved  in  deciding  those  that  are  given  licences  to  mine  

�  Rehabilitation  fund  has  to  be  paid  during  operations  and  has  to  be  published  and  known  by  the  communities  

�  Strict  environmental  monitoring  and  publishing  of  environmental  status  

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Thank  you  Obrigado