Speaking at the second Latin America Down Under conference in Sydney today, Carr said mining was a common tie between Latin America and Australia.
“Mining is providing traction and substance in our relationship with Latin America countries,” he said.
“The growth has been phenomenal.”
Merely four years ago there were an estimated 20 Australian mining companies operating in Latin America. The figure has jumped to 80, with activity placed on 200 projects.
But as metal prices decline and mining investment slows, Carr says the strong ties built up between the countries can stay in place and enable a reassessment of investment opportunities.
“We’ve got a lot to learn from each other about managing times when prices are down and investment contracts,” he said.
“That gives us a chance to gather our breaths, gather our energy, take pause and be prepared to see that when the next surge of investment comes we’ve learnt lessons and we go for quality.
“We can refine policy, look at broader questions like managing surging investment in a way that provides sustenance during times of contracting investment.”
Carr said tougher times could provide a good opportunity to address issues like challenges of budgets and sovereign wealth.
Speaking about the re-emergence, as opposed to the emergence of Latin America as a mining hub, Carr said you need look no further than the facts.
Brazil, already the second largest iron ore producer, is growing rapidly.
In 2011, Brazil overtook the UK economy. PricewaterhouseCoopers expects it to be the sixth-biggest economy by 2030 and the fourth-biggest by 2050.
Chile, the world’s largest copper producer, is a melting point for mining investment, with Australia the largest direct investor in Chilean mining.
Peru is the second-largest copper producer and the sixth-largest gold producer.
Mining investment in Latin America is still on the rise, with a predicted $A150 billion worth of potential investment opportunities over the next decade.
“From Australia’s perspective, Latin America is a region of vast potential on the rise – our mining industry has shown it understands that as clearly as any industry,” Carr said.
“Our job, in government, will be to make the most of the links we have, to set a stage in which new ties can be built and encourage the interaction that will be to our mutual benefit.”
Highlighting the strategies the government is putting in place to strengthen ties between Latin America and Australia, Carr said sustainable mining workshops in Peru and Mexico were undertaken last year with participants from across the region.
Just last week, Ausaid ran a mining for development conference.
With Australia and Latin America having similar resource endowments and common environmental issues, Carr said it provided a good catalyst to foster strong relationships over numerous sectors.
“This gives us an opportunity to work together to advance multilateral interests, including trade liberalisation, food security and climate change,” he said.
Nearly 300 delegates from business, government and academia have descended on Sydney to attend the two-day event at the Sheraton on the Park.
Speakers include former Xstrata Copper chief executive Charlie Sartain, Rio Tinto Peru project director Ian Woods and PCF Capital Group managing director Liam Twigger.
