Building Human Capacity in Mining-related Governance and Management

1. Supporting sustainable resources development Building Human Capacity in Mining-related Governance and Management Ian Satchwell, Director Briefing of AusIMM, Perth11 February 2013

2. Australia’s development assistance agenda Community Aspects in Resource Developments program • Australian development assistance budget is ramping up to OECD standard of0.5% of Gross National Income • $5.3 billion in 2012-13 • >$8 billion by 2015-16 • 2010 Australian Review of Aid Effectiveness led to new policy framework An Effective Aid Program for Australia • Five strategic goals include effective governance and sustainable economic development • AusAID sustainable economic development objective • improving incomes, employment and enterprise opportunities for poor people in both rural and urban areas, including the development of sustainable mining industries to boost overall economic development Occupational Health and Safety Management course 2

3. Mining and private sector strategies • Mining for Development Initiative launched October 2011 • Strategic approach: supporting developing countries to translate their resource endowment into significant and sustainable development • Provides resource-rich developing countries with the expertise they need to build a sustainable mining sector, make better use of revenues, improve social and environmental outcomes, and grow their economies. • AusAID Private Sector Development Strategy (1) and Business Engagement Agenda (2) launched September 2012 • (1) approach to the development of the private sector in partner countries to catalyse economic growth • (2) working together with Australian business, with business playing a greater role in development Indonesian Training Agency Visit to IM4DC for MoU Signing 3

4. Australia’s comparative advantage Community Aspects in Resource Developments course • Minerals and energy resources, responsibly developed, offer pathways to economic growth and poverty reduction • Australia is a world leader in mining and processing technologies, knowledge and practices • Australia is also a leader in mining governance and administration • Australia is a major offshore investor in mining in Africa, Asia and Latin America • Australia is well-respected and looked-to by many developing countries as a leading mining nation and as a partner • “We are not American, we are not European…” • Australians’ ability to work well in diverse environments Occupational Health and Safety course 4

5. Elements of the mining for development initiative Development of Indonesia mines inspectors training program • International Mining for Development Centre • African mining short courses and study tours • Advanced degree scholarships • Government to government partnerships • Support for revenue transparency – EITI • Economic and technical capacity building • Support for community and social development Delivery through AusAID central and country programs, and partnerships with World Bank and others Industry-government-NGO Mining for Development Advisory Committee provides guidance Uganda extractives study tour for parliamentarians and officials 5

6. What IM4DC does Geodata in GIS course, Burkina Faso – 24 participants, 11 countries Build skills within government, universities, research institutions and civil society organisations to bring about: Improved policies, practices and legislation Improved knowledge of resources base An ability to continue to build local capacity in mining governance Through short courses, fellowships, research, advice, institutional partnerships Grant funded – initially AUD 31 million from October 2011 to June 2015 Life of mine management of large volume waste course, Australia – 16 participants, 9 countries 6

7. IM4DC activities Australia-Africa Local Supplier Development Forum, Perth WA In first 15 months of operation to end January 2013, IM4DC has: Delivered 18 courses and workshops to 580 participants from 28 countries • Approx25% female, 60% ESL Commissioned 14 Action Research projects from universities and supported research by 10 PhD students from developing countries Appointed Distinguished Fellows and Development Fellows Established linkages with universities and research institutions in both developed and developing countries Laos officials’ bauxite-alumina study tour to Western Australia 7

8. IM4DC works closely with: Indonesia mines inspectors Africa: Australia Africa Partnerships Facility (AAPF) and Australia Africa Short Course Awards Other country mining programs – Indonesia, Mongolia, Afghanistan, Philippines Government Partnerships for Development Australia Awards – Scholarships and Fellowships Extractive Industries Transparency Initiative Sierra Leone mine rehabilitation 8

9. Where IM4DC is working United Kingdom Canada Mongolia USA Afghanistan Myanmar ? West Africa Laos The Philippines Liberia Colombia Ghana ? East Africa Pacific Ecuador Indonesia Zambia Peru Mozambique South Africa Chile Uruguay Southern Africa Deep, multi year engagement African countries serviced by IM4DC include: Congo, Mali, Morocco, Niger, Nigeria, Burkina Faso, Ethiopia, Guinea, Cote d’Ivoire, Gabon, Uganda, South Africa, Kenya, Malawi, Tanzania, Sierra Leone, Senegal, Namibia, Madagascar Participation in courses, research Possible future engagement Locations of prospective peer partner institutions 9

10. Themes and courses Geodata in GIS course, Burkina Faso • Governance and regulation • Sustainable mining and governance frameworks • Legal frameworks and agreements for resource development • Negotiation fundamentals and strategies • Agreement-making with indigenous peoples • Community and environmental sustainability • Resource regions, development and infrastructure • Resources development and local content • Community engagement and community relations • Life of mine management of large volume waste • Mine closure frameworks • Minesite water management and accounting • Operational effectiveness and safety • Mines inspection frameworks and training • Occupational health and safety management 10

11. Tailored programs Latin American indigenous agreement-making study tour • Development Fellowship programs for Afghanistan, Ghana • Development of Indonesia mines inspector training competencies, curriculum and training program • Professional development partnership with Indonesia Ministry of Energy and Mineral Resources, including co-funding • Support for triangular partnerships linking Australia and two or countries (eg, Indonesia, Mongolia, Colombia) Life of mine large volume waste management course 11

12. IM4DC management, interactions and growth • Small core team – leverage university capability and capacity • Growing links with other universities in Australia and offshore • Expand and enhance capability • Enhance capacity-building • Flexible and responsive: potential to expand activities • In Africa, Asia, Pacific • Expanded courses and cooperative program development • Institutional partnerships (eg, developing country universities) • Foster “South-South” interaction Mining for Development Roundtable 2012 12 12

13. Experience and learning so far Demand and supply • Huge demand for mining capacity-building services • Australia has very strong mining and services brand • Challenge is to build course delivery capacity • Careful scoping of country needs and priorities is required Delivery • Identification and selection of participants is challenging • More in-country courses relative to in-Australia • Tailored courses / capacity-building progressively implemented Needs assessment • Participants are identifying specific capacity-building needs • Strong global coordination required for effective and efficient delivery Interaction with industry • Companies host course participants on-site • Some co-attendance at courses by government/NGO and industry personnel

14. What’s in it for Australia and its mining industry? • Reinforcing Australia’s reputation as a leader in resources sector governance and industry practice • Building capacity of countries to host exploration and mining and to derive sustainable benefits • Help countries to build economic activity and lift people out of poverty Occupational Health and Safety course, Perth, December 2012