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Dryblower looks at Africa as the centre of mining

IF THE mining boom is over, as we were told last week, then Dryblower wonders why the Africa Down...

Tim Treadgold
Dryblower looks at Africa as the centre of mining

With 2500 confirmed delegates, the three-day ADU event takes the title of biggest from its older rival, Kalgoorlie’s annual Diggers & Dealers forum which closed the doors at 2400 delegates earlier this month.

One reason ADU has taken just 10 years to overtake D&D in terms of size is the location.

Kalgoorlie is simply too small to handle anything bigger, a fact compounded by the city’s remote location, high cost and the event’s lack of innovation which makes a visit to D&D feel like Groundhog Day.

Criticising the Kalgoorlie forum does not, however, explain why a conference clearly billed as having an African theme has succeeded in Australia, a question which deserves serious analysis.

Possible reasons include:

  • ADU being more about the future of mining versus D&D being more about the past
  • Australia being seen as a neutral halfway house to Asia, for African governments keen to grow their mining sectors, whereas Australian governments do more to suppress than encourage the industry
  • Mining undergoing a natural migration to destinations where it is most welcome
  • Perth being recognised as a global centre for the mining industry and the development of innovative mining technologies
  • Australia being recognised as a global centre for marshalling mining finance
  • African delegates keen to enjoy a week away from their troubles at home in a reasonably safe city.

Those six points cover most of the reasons for ADU’s success, with each deserving closer analysis and while some are more serious than others they collectively act as the reason for the conference’s success and reason for it to get bigger each year.

With a standing start of 2500 delegates, plus exhibitors, plus layers of government support, it is easy to see the organisers making a subtle change to the name in future years, with Mining Down Under being an easy switch to broaden the appeal of the event and create a truly world-class Australian mining conference.

That suggestion is getting too far ahead but it’s the sort of expansion that could occur because of the rise of Perth as a global mining centre.

Of immediate interest are those six reasons for ADU’s success which start with the point about Africa being seen as the future of mining, an observation which recognises the geological attractions of the continent and the welcome for miners offered by most governments.

There are negatives in doing business with Africa.

Security is a major obstacle, with the recent Marikana massacre of protesting workers at a South African platinum mine a reminder that life is cheap in most African countries.

But, if it’s a case of developing a business with all the problems that exist in Africa versus not developing a business because Australian governments have turned against the country’s most important export industry then miners have no choice but to migrate to Africa, taking their skills and money with them.

Historically, there is nothing new in mining moving as a result of changing government policies and perhaps what’s happening in Australia is part of a natural evolutionary process.

Europe, for example, once dominated mining, until it became easier to for miners to do business elsewhere which, thanks to the safety and security issue, became North America and Australia.

Africa, if it can master the problems of inequality, is the logical future centre of mining, though probably not mining technology which is finding Australia and Canada to be comfortable and secure locations for investment in intellectual property and professional skills.

Peering into a crystal ball, it is easy to see the next generation of mega-mines supplying Asian demand for minerals and metals being located in Africa but with the technology behind those mines sourced from Australia and Canada.

It will take time for the change to take place but of all the reasons suggested for ADU being successful it is the three-way linkage developing between Africa, Australia and Asia that intersects in Perth this week – boom or no boom.

Africa has the geology and the need to encourage mining.

Australia has the skills and technology.

Asia has the markets and capital.

In theory, it is a perfect combination and while there will be hiccups as each player in the game seeks an advantage, there are good reasons to see Perth building its position as an important “African” city – however bizarre that sounds.

This article first appeared in ILN's sister publication MiningNews.net.

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