As Albania tries to better develop its mining and natural resources sector, there are lessons and investment opportunities in Australia’s successful example, says Australian Ambassador Jenny Bloomfield in speech to Conference on Albanian Natural Resources.
By: Jenny Bloomfield
Tirana, April 19 – I am honoured and pleased to be addressing this important conference today on developing Albania’s mining and natural resources sector, key for ensuring Albania’s ongoing economic and social development.
Australia and Albania share longstanding community links and a joint commitment to regional and international peace, security and prosperity. Australia acknowledges the significant progress Albania has made in recent years, including as a NATO member with a strong record of contribution, and as a nation committed to its full European integration and to ongoing political, economic and social development and reform.
I would also like to acknowledge the positive contribution of the Australian-Albanian community to Australia’s society. Many came to our country with very little and have succeeded and prospered in all areas of life – in business, in politics, in the law, in community work, even in sports. They are an important bridge between our two countries and both of us can be proud of their achievements.
(a) The importance of Australia’s mining and resources sector to economic development
Mining has been integral to the development of Australia – from the gold rushes of the 19th century, through the iron ore and nickel booms of the 1960s, and the later growth of the coal industry, to the current booming demand for minerals to fuel the industrial growth of much of the rest of the world. Mining has been a driving force for much of the exploration of Australia’s remote inland and for Australia’s industrial development.
Australia has benefited greatly from the current resources boom, reflected in high rates of economic growth, record low levels of unemployment and increasing incomes for Australians. The mineral resource sector contributes significantly to national GDP and export earnings (47.5 percent of all exports in 2010 – AUD135 billion) and is a major Australian employer, both directly and indirectly.
Australia’s vast mineral endowment, productive efficiency and cutting edge, innovative support industries allow Australia to remain at the forefront of the minerals sector globally.
Australia has: 2.4 percent of the world’s proven energy resources; the world’s largest economic demonstrated resources of mineral sands, brown coal, uranium, nickel, zinc and lead, and top six worldwide in bauxite, black coal, copper, gold, iron ore and industrial diamonds.
Mining companies operating in Australia benefit from a stable regulatory environment with low sovereign risk and access to a highly skilled workforce and world leading technologies. These factors have allowed mining operations in Australia to remain amongst the lowest cost in the world.
A series of major investments – such as the AUD43 billion Gorgon Liquid Natural Gas project on the west coast of Australia, and projects totalling AUD240 billion of committed capital investment – will significantly expand Australia’s resources and energy sector.
(b) Policy framework for Australia’s energy and resources sector
The Australian Government is committed to increasing the international competitiveness of our energy and resources sector, consistent with the principles of environmental responsibility and sustainable development.
Australia’s laws, policies and practices reinforce the message that wealth distribution, community development, environmental protection, health, education and human rights is the business of both governments and mining companies.
A commitment to leading practice sustainable development is critical for a mining company to gain and maintain its “social licence to operate” in the community.
The Leading Practice Sustainable Development Program for the Mining Industry, developed in consultation with the Australian mining industry, is a practical guide to ‘leading practice’ sustainable development that integrates environmental, economic and social aspects through all phases of mineral production from exploration through construction, operation and mine-site closure. The LPSD is a valuable reference tool used in a number of countries and translated into several languages.
Put simply, the concept of leading practice is about identifying and implementing the best way to do things for a given site. Leading practice is therefore as much about approach and attitude, as it is about a fixed set of practices or a particular technology.
At the Commonwealth Heads of Government meeting in Perth in October 2011, the Australian Government launched the Mining for Development Initiative to help developing countries use their natural resources to improve their economies in a sustainable manner. The centrepiece of the initiative is the International Mining for Development Centre which will be based in the University of Western Australia’s Energy and Mineral Institute.
The Australian Government also announced $12.5 million to the World Bank Trust Fund in support of the Extractive Industries Transparency Initiative (EITI), a voluntary initiative that drives improved governance through the full publication and verification of company payments and government revenues from oil, gas, and mining. Australia also announced that it will undertake a pilot of the EITI from July 2012 to assess the transparency of its financial reporting arrangements for the resources sector against EITI principles.
Building effective long-term relationships with local communities and in particular Australia’s indigenous communities, is part of core business for the resources industry. The Working in Partnership (WIP) program supports and encourages cultural change in relations between indigenous communities and the mining industry and promotes long term, effective partnerships which benefit all stakeholders – noting that the resources sector is one of the few providing employment and business development opportunities for remote communities.
(c) Opportunities for cooperation
Energy and resources underpin all economic activity – from powering industry to creating and maintaining high-skilled jobs at home. At a time of increasing global demand, environmentally responsible and sustainable development of the resources sector is an investment in jobs, high-level knowledge and skills, and long-term economic and social prosperity. Australia stands ready to strengthen cooperation with our partners, including Albania, to support this development – including by promoting trade and investment and by sharing experiences, policies and practices that have underpinned Australia’s successes in this sector.
