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Raw Materials Co-operation: A Win-Win for Africa & the EU

Raw Materials Co-operation: A Win-Win for Africa & the EU. First meeting of the ACP Ministers in charge of the development of mining resources Brussels, 13-15 December 2010. Abraão de Carvalho HOU, ENTR/G/3 Metals, Minerals, Raw Materials. European Commission Enterprise and Industry.

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Raw Materials Co-operation: A Win-Win for Africa & the EU

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  1. Raw Materials Co-operation: A Win-Win for Africa & the EU First meeting of the ACP Ministers in charge of the development of mining resources Brussels, 13-15 December 2010 Abraão de Carvalho HOU, ENTR/G/3Metals, Minerals, Raw Materials European CommissionEnterprise and Industry

  2. Raw Materials • A new challenge for the EU and for the World • Population growth • Industrialisation of the emerging and developing economies • New technologies • Increased pressure on natural resources

  3. Raw Materials • This challenge: • is structural, not short-term • is global and is not limited to the EU • No country in the world (developed, emerging or developing) can be considered self-sufficient in all materials • We all depend on others

  4. Raw Material Initiative (started 2008) • Integrated strategy aimed at fostering sustainable supply and use of raw materials • Founded on three pillars (external, internal, efficiency) • Coherent approach in that all pillars are inter-related and need to be tackled in unison • Therefore, RMI not wholly ‘external’ as we are also acting within the EU and on efficiency • i.e. not just about trade • The large scope creates complex challenges • Covers many areas (environment, development, land use, financial markets etc) the challenges are numerous • …no silver bullet

  5. Raw Materials Initiative II. Right framework conditionswithin the EUin order to foster sustainable supply from European sources III. Boosting resource efficiency and recycling to reduce the EU's consumption of primary raw materials I. Ensuringsustainable supply of raw materials from International Markets

  6. Development Section of Pillar I Overall aim: to increase coherence between EU development policyand the EU's need for undistorted access to raw materials in order to create “win-win” situations Main Objectives from Communication from 2008: Strengthening States Promote a sound investment climate that helps increase supply (including transparency in mining revenues) Promote sustainable management of raw materials

  7. Turning Objectives into RealityFuture EU-Africa Co-operation on Raw Materials • African Union Commission / European Commission agreement in Addis Ababa, June 2010, to launch co-operation on raw materials in three areas: • Governance • Infrastructure / investment • Geological knowledge / skills • New co-operation within EU-AU Joint Strategy 2011-2013 • Within Africa-EU partnership on regional integration, trade and infrastructure • Aim is to work toward a coherent vision on development, mining and raw materials • Based on AU’s African Mining Vision & EU’s RMI • A holistic & pragmatic approach bringing together issues important for both continents

  8. Turning Objectives into RealityFuture EU-Africa Co-operation on Raw Materials • Several actions to be included in next Joint Strategy • Focus on getting right balance between: • Having a long term positive impact • Agreeing & defining concrete goals to be achieved in short-, medium- and long-term • However, to maintain momentum and involvement, seeing what actions can be done or started in next 3 years • This is why we are happy to see three ‘areas’ identified with 3/4 actions per area • Mostly based on what AU has identified in AMV paper

  9. 1. Governance in the mining sectorAreas for co-operation • Promote natural resources governance • including special focus on increasing revenue transparency • applying appropriate fiscal regimes; and • involving relevant stakeholders including the civil society • Promote & provide training on best practices to negotiate mineral contracts • Assist in developing policy scenarios for promoting trade and the sustainable development of the mining sector

  10. 2. Infrastructure & Investments relating to miningAreas for co-operation • Getting materials to market • Developing analytical tools for mapping mining development corridors for investment promotion • Fostering diversification • assess opportunities for increasing local content and value-added • namely through local processing of African mineral resources, particularly by SMEs • Improving investment climate through clear and stable mineral policies • including clarity relating to land use planning for minerals and authorisation processes • Promote CSR at all levels

  11. 3. Geological Knowledge & SkillsAreas for co-operation • Foster further co-operation between African and European geological surveys • Making the most of what is already known • Facilitate exploring mineral resources potential in Africa • For example, by using technologies to help identify new potential • Improve material stewardship & environmental protection • Support capacity building in such areas as rehabilitation of mining sites and management of secondary raw materials (recycling).

  12. EU-Africa Business Forum ( Tripoli) on 26-27 November 2010 Raw materials: create a win-win for Africa and the EU Business leaders call on Heads of State and Governmentof the EU- Africa Summit, based on the African mining vision and the EU raw material initiative, to: • Strengthen EU-Africa relations in the area of raw materials through partnerships with a particular focus on improving governance (fighting corruption and promoting transparency notably through EITI), exchange of best practices, setting up raw materials databases and enabling industrialization in Africa. • Work together with international partners to increase transparency in setting up of contracts and government-payments principles and practices to enable a level-playing field for industry worldwide.

  13. Set up the right investment climate in African countries to enable industrialisation, up-stream value-creation and transparency. Exchange of best practices between the EU and AU on extractive industry policies is encouraged. • Leverage private sector investments with EU aid, for example to improve infrastructure, including roads and ports. • Launch a partnership that is pragmatic, focused on deliverables and encourages participation from European and African companies, including reliable NGOs where appropriate.

  14. Next Steps • First time that raw materials have been included: • Co-operation will be a work-in progress • We should amend actions where necessary • Don’t want to reinvent the wheel • Will build, where possible, on existing measures • We will work within EU to: • (Further) identify available instruments • Increase awareness and participation of active MSs • Will fully engage over coming months with African partners to agree common goals for each action agreed

  15. Next Steps • Would welcome feedback from African states, in particular ACP Countries, on areas they consider a priority • Would welcome involvement of private sector from both continents in making this a success • We suggest to keep regular meetings between the European Commission and the Secretariat of ACP Countries

  16. Thank you for your attention !

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