Charles akong amdc asm workshop april 2016
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Transcript of Charles akong amdc asm workshop april 2016
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!