Fourth Regional Conference on the Development and Utilization of Mineral Resources in Africa

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ECONOMIC COMMISSION FOR AFRICA

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EcA I ^{NR 0/ Fl<} CO~~ftJJ

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FOURTH REGIONAL CONFERENCE ON THE DEVELOPMENT AND UTILIZAnON OF MINERAL RESOURCES IN AFRICA

Ouagadougou, Burkina Faso 18 - 27 March 1991

I. OPENING OF THE CONFERENCE

I. The fourth Ministerial Session of the Regional Conference on the Development and Utilization of Mineral Resources in Africa was held in Ouagadougou, Burkina Faso, from 25 to 27 March 1991. The opening session of the Conference took place under the patronage of Mr.

R.C. Kabore, Minister of State representing captain Blaise Compaore, President of the

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pQPUlaire, Head of state and Head of Government and was officiated by Hon. David Pulkol, Deputy Minister, Ministry of Water and Mineral Development of the Republic of Uganda, Chairman of the Ministerial Session of the third Regional Conference on the Development and Utilization of Mineral Resources in Africa.

2. Hon. Pulkol welcomedallthe delegates and observers to the Conference and thankedthe Government and People of Burkina Faso for their generous contributions which had enabled the ECA secretariat to convene the Conference in Ouagadougou. He pointed out that the contribution of Burkina Faso towards the convening of the Conference was testimony to the country's long cherished commitment to intra-African cooperation in general and to mineral resources development and utilization in particular, cooperation which his country considered to be a major means of achieving self-reliance and self-sustaining development in African.

3. Hon. Pulkol observed that mining industries in Africa had declined during the 1980s because of both external and internal reasons. The external reasons included declining mineral commodity prices, insufficient foreign investment within the mineral industries, high energy prices, the declining intensity of use of minerals in traditional markets resulting from substitution and improved technology and inflation. Among the internal reasons were the depletion of easily accessible and rich mineral reserves, social insecurity in some of the countries, inappropriate mineral development policies in other countries and the lack of integration of the mining industries with other sectors of the economies of several countries in the African region.

4. He expressed the view that during the 19905and beyond, the African mining industries could grow only through their linkage with other sectors of the region's economy. Such a development strategy would promote and sustain industrial growth in Africa based on the region's mineral wealth and enhance mineral consumption in the continent to improve the living conditions of the African people. In order for this strategy to materialize, cooperation by African countries at bilateral, subregional and regional levels was imperative.

5. Mr. Peter N. Mwanza, Chief of the Natural Resources Division of the Economic Commission for Africa (ECA) expressed regret for the unavoidable absence from the Conference of Prof. Adebayo Adedeji, Executive Secretary of ECA, who had been held back in Addis Ababa because of other important engagements. On behalf of the Executive Secretary of ECA, Mr.

Mwanza expressed profound gratitude to the Government and people of Burkina Faso for their immense contributions towards the hosting of the Conference in Ouagadougou. He likewise extended a warm welcome to all delegates and observers to the Conference.

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6. Mr. Mwanza noted that the African mining industry had been experiencing a serious crisis in the last fifteen years. The crisis had been precipitated by such factors as the absence of research programmes to improve mineral reserves in the region, the decline in world prices of mineral raw materials, largely caused by both oversupply and shrinking demand, inadequate local processing and consumption of minerals in the African region, reduced flow of foreign investment in the region, and internal strife in some of the countries of the continent.

7. Recalling the basic objective of the Regional Conference which was to promote cooperation amongst countries of the African region in the development and utilization of mineral resources, Mr. Mwanza stressed the need for increased solidarity among member States in the search for common solutions to the continent's mineral industries. He in particular drew the attention of the ministerial session to the report of the technical session of the fourth Conference and urged African countries to implement the recommendations of all the Regional Conferences in order to enhance the contribution of minerals towards Africa's development process.

8. Speaking on behalf of the President of the Front PQPUlaire, Head of State and Head of Government of Burkina Faso, the Secretary of the Executive Committee of the Front p

opn!aire responsible for industrial development, Mr. Lansane Ouangrawa, first of all, welcomed the participants to the Conference. He then thanked ECA for the confidence shown in Burkina Faso by organizing the Conference in the country and indicated that the geographic situation of the country which appeared to be a handicap was indeed a major asset in that being an excellent crossroads, it had led the country to consider regional and subregional cooperation as a vital and fundamental priority for the economic and social development of member States, and hence as a duty.

9. The presence in Burkina Faso of numerous international and inter-African organizations and groupings from all fields, testified to the will of the country to cooperate. In the area of mineral resources, the Regional Remote Sensing Centre (CRTO) in Ouagadougou provided training in the application of remote sensing in mining research, among other things, and the Economic Community of West Africa (CEAO) and the Liptako-Gourma Authority were engaged in mineral resources-related activities that had benefitted from the fum and active support of Burkina Faso. The country had, for instance, been party to the initiative to establish the E!;Qk des mines et dela 2¢oloCie (EMIG) (The School for mines and geology) of the CEAO based in Niamey, and had been involved in the studies and the establishment of the School. Burkina Faso had also taken the initiative to convene the meeting which led to the founding of the Association of exploration and research geophysicists in Africa in Ouagadougou in 1982.

10. He concluded by stressing that the recommendations of the three previous Conferences and those that would emerge from the current Conference, particularly those related to the strengthening of research structures and organization of the mineral sector, coordination of policies and legislation and multinational mineral resources development centres should be implemented with the utmost seriousness. With regard to the proposed West African mineral resources development Centre, Burkina Faso was ready not only to contribute to the feasibility study but also to support the project till completion. After wishing the Conference success in

II. ELECTION OF OFFICERS II. The Conference unanimously elected the following officers :

Chairman :

First Vice-Chairman:

Second Vice-Chairman:

First Rapporteur:

Second Rapporteur:

Burkina Faso Morocco Zambia

United Republic of Tanzania Chad

III. ADOPTION OF AGENDA

12. The following agenda was adopted:

I. Opening of the Conference.

2. Election of officers.

3. Adoption of agenda and organization of work.

4. Statements of delegations.

5. Consideration of the report and recommendations of the Technical Preparatory Committee.

6. Any other business.

7. Date and venue of the next Regional Conference.

8. Adoption of the report and recommendations of the fourth Regional Conference on the Development and Utilization of Mineral Resources in Africa.

9. Closure of the Conference.

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IV. ATIENDANCE

13. The following twenty-two member States were represented at the Conference: Algeria, Burkina Faso, Burundi, Cameroon, Chad, Cote d'Ivoire, Gabon, Guinea, Guinea Bissau, Libya, Malawi, Mauritania, Morocco, Mozambique, the Niger, Nigeria, Senegal, the Sudan, Uganda, United Republic of Tanzania, Zambia and Zimbabwe.

14. The following international institutions and observers were also represented: the World Bank, the Department of Technical Co-operation for Development (DTCD), United Nations Industrial Development Organisation (UNIDO), Southern African Development Co-ordination Conference (SADCC), International Labour Organisation (ILO), Eastern and Southern African Mineral Resources Development Centre (ESAMRDC), Economic Community of West Africa (CEAO), Autorite du Liptako-Gourma, the Economic Community of West African States (ECOW AS), the International Association of the European Mining Enterprises (EUROMINES) and the Bureau de recherches geologiques et minieres (BRGM).

V. ACCOUNT OF PROCEEDINGS Statements of dele_ns (agenda item 4)

15. Twelve delegations made statements under this agenda item. The countries were, in the order in which the statements were delivered, the Sudan, Uganda, Cote d'Ivoire, Burundi, Chad, Gabon, Morocco, Mauritania, Mozambique, Zambia, Algeria and Cameroon.

16. On behalf of the Minister of Energy and Mining, the delegate of the Sudan assured the Conference of his Government's keeness to cooperate with other African countries in order to enhance the contribution of minerals to the economic development of the continent. He informed the Conference that Sudan possessed diverse geological formations which were believed to contain a wide range of mineral resources. However, due to the existence of large unexplored areas, many potential mineral deposits remained undiscovered. Moreover, the remoteness of some of the mineral deposits already discovered, transport bottlenecks and limited investments constrained the development of some of the mineral resources already discovered. Thus the contribution of domestic minerals towards the country's economic advancement was currently minimal.

17. Based on the current awareness of the important role of minerals in development, the Sudanese Government had issued an investment act in March 1990 to promote mineral development by both public and private (local and foreign) capital. Furthermore, the Government had recently adopted a twenty-year plan for mineral prospecting covering the whole country. The Sudanese delegate concluded his statement by informing the Conference that although the Government of his country had not participated in the biennial Conferences in previous years, it would endeavour to implement the recommendations of the Conferences in order to consolidate cooperation among African countries in their development efforts.

18. The Depufty Minister of the Ministry of Water and Minerals Resources of the Republic of Uganda informed the Conference that his country was making a number of efforts towards the implementation of the recommendations made by of previous Regional Conferences on mineral resources. At the national level, the integration of mineral resources development into the general economic fabric was continuing. Training in various disciplines inearthsciences for mineral resources development was being intensified. In order to strengthen institutional capabilities, the mineral development laboratories which had been destroyed during civil upheavals had been refurbished with the assistance of a World Bank credit, to allow national geoscientists undertake mineral research. The Government was encouraging the establishment of local consulting firms to support mineral development activities in the country.

19. Moreover, the country was in the process of formulating a new mineral resources development policy which would be flexible, pragmatic and functional. The new policy would aim at attracting increased investment for the country's mineral industries, for export and for domestic consumption. Private investors (foreign and local), joint ventures and parastatals would all be encouraged to invest in the mineral industries.

20. At the subregional level, support to the Eastern and Southern African Mineral Resources Development Centre (ESAMRDC) was continuing while the country was increasingly deriving tangible benefits from the mineral development services provided by the institution. He called upon those countries of the Eastern and Southern African Subregion which were not yet members of the ESAMRDC to join the institution in order to both strengthen it and benefit from its expanding facilities and services.

21. Furthermore, the development of the Tororo phosphate deposit in Uganda had been plained to meet the fertilizer needs of the Preferential Trade Area for Eastern and Southern African States (PTA). Efforts for the mobilization of investment resources for this project were continuing. A donors'

conference under the aegis of PTA member States had been held in Kampala in 1990 and some funds had been pledged to commence the project. A cooperation agreement between Uganda and Zaire had also entered into during 1990 to facilitate petroleum exploration and its possible development along their common border.

22. Speaking on behalf of the Minister of industry, mines and energy who had been unable to travel to Ouagadougou because of last minute engagements, the representative of COte d'Ivoire stated that his country whose economy was based mainly on agriculture had not been spared by the economic crisis that was affecting African countries, and that the country was adhering to the objective of the Regional Conference. The restructuring of the Ministry responsible for mineral resources in November 1990 aimed at increasing the allocation of the necessary human, material and financial resources to the mining sector in order to enhance its contribution to the country's economy. The ongoing revision of the mining code with a view to making it more attractive and the existence of an equally attractive investment code, incentives to operators to form associations, the preparation of promotional brochures boost the development of deposits among other things, reflected the political will of the Government of

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Cote d'Ivoire to work towards the effective development of the mining industry. He concluded by expressing the importance that his country attached to cooperation among African countries.

23. The Honorable Minister of Mines and Energy of Burundi, after expressing the commitment of his country to the Conference and to its objectives, stated that although Burkina Faso was by nature an agricultural country, it attached considerable importance to the development of mineral resources in order to enhance the sector's contribution to economic development. He then outlined the significant mineral potential ofhiscountry, emphasizing that the determination of the country to develop those mineral resources had led the Government, among other things, to establish a legal framework for stimulating and organizing artisanal mining where industrial mining could not be envisaged. In that connection, emphasis was put on products that couldspeed up the development of import substitution industries such as those for cement, ceramics and fertilizers. With regard to large-scale industrial operations, the Hon.

Minister informed participants that Burundi had a major nickel deposit and that the possibilities for the development of the deposit was being studied.

24. He further expressed the will of his country ^to develop solid cooperation with neighbouring countries in the Central and Eastern Africa subregion as well as with all African countries. He concluded by expressing the wish that the organization of regional meetings such as the current Conference in Ouagadougou would culminate in the definition of a better framework for effective cooperation among African States.

25. The Hon. Minister of Mines, Energy and Water Resources of Chad informed the Conference that despite the war and the political instability, his country had relentlessly pursued its efforts to develop the mining sector_He then outlined the activities taken to that end since the third Regional Conference. The project relating to the strengthening of the geological and mining research administration, financed by UNDP had been implemented in two phases. The first phase aimed at strengtheningtheinstitutional capacity, with the construction and equipment of a laboratory for the chemical and petrographical control of petroleum products and the reorganization of a computerized documentation centre linked to the Pan-African Geological Information Network. The second phase focused on research in various areas of the country, which had led to the discovery of various geochemical anomalies and ore indices at Pala Lere and Mayo Kebi, an alluvial gold index at Mayo Ndala which was under small-scale exploitation, a deposit of limestone for the manufacture of lime at Louga and Mayo Kebi, which was currently being exploited on artisanal basis, several marble deposits and a major diatomite reserve.

Research had also been conducted on trona in the Lake Chad and Kanem areas and a proposal made for the deposit to be exploited on semi-industrial basis in order to increase production of the mineral. With regard to building materials, the authorities had develped the production of stabilized earth bricks and asbestos cement tiles. Efforts had also beenmade to train the staff of various branches of mineral research. The Hon. Minister concluded by stating that cooperation among African countries should be encouragedand developed.

26. The Honorable Vice-Minister of Mines and Energy of Gabon, after thanking the host country and ECA for organizing the Conference, expressed satisfaction at the quality of the work done by ECA and by the Technical Preparatory Committee.

27. He stated that having been absent from the previous Regional Conferences on the Developmentand Utilization of Mineral Resources, the presence ofhiscountry in Ouagadougou testified to the renewed will of his country (a) to intensify and deepen its cooperation with other African countries; and(b) to have a fruitful exchange of information and experience with them.

28. The Honorable Minister then briefly summed up the long mining tradition of his country as well as its immense potential in mineral resources, as revealed in a large-scale inventory programme which had heen going on since 1979. He concluded by appealing to participants to ensure that the recommendations that would be adopted by the current Conference were fully implemented and stated the firm commitment of Gabon to bepresent at all future Conferences.

29. The representative of the Minister of Mines of Morocco indicated that his country which had a long mining tradition was one of the countries that had regulated the mining activity in a modern context. Mining was governed by the principle of free enterprise, but the Government gave guidelines for the sector on the basis of the requirements for the socio-economic development of the country and for the promotion of the sector through the financing of investments in geological and mineral prospection, establishment of basic infrastructure and staff training.

30. The Government was also gradually instituting fiscal and financial support measures to enable the various mining operators to meet the instabilities in the international economy.

Morocco produced phosphates (the largest world exporter and the third largest producer after the USSR and the United States of America), lead, fluorspar, silver, barytes, manganese, etc. as well as other industrial minerals. Mineral resources which were formerlyexportedincrudeform were currently being beneficiated and undergoing a more elaborate processing.

31. Morocco intended to consolidate the position acquired on the international market and strengthen thatposition by promoting the development of research. exploitation and development of mineral resources. The mineral processing policy defined in previousdevelopment plans had remained abasic minerai policy UOtiOIlofthe countrvsince 1%5and was aimed at the maximum local processing of minerals which had been exported in crudeform to date. Traininuactivities in the country had nroduced ^j.400 eneineers. 9.000technicians and 22.000 skilled workers as at I June 1990.

32. The sneaker concluded bv stating that lezislation and reeulation on the mining sector were currentlv beine revised and enforcement bills and decrees had been drafted and submitted to the Government for anoroval. The texts related to the status of miners. the usc of explosives.

ucneral reeulation on the oneratine of mine operations. etc. He finallv stressed the importance of cooneration and the efforts beina made bv Morocco in that rceard.

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33. The representative of Mamitania informed the Conference that his country would spare no effort to implement the various recommendations of the fourth Regional Conference on the Development and Utilization of Mineral Resources in Africa.

34. The delegate of Mozambique informed the Conference about the evolution of mineral development in the country, which commenced systematically commenced in 1983 when the Ministry of Mineral Resources (MlREM) was established with the responsibility of developing the nation's minerals, including hydrocarbons. He reported that the country had since enacted attractive mineral development legislation which had motivated interest by several companiesto develop the country's mineral resources. Among the major minerals of the country were coal, gold, pegmatites, marble, titanium and other heavy minerals, and natural gas. However, the civil war had been a major constraint on efforts to develop the mineral sector. The country considered cooperation among african countries in mineral resources development as a orioritv objective and was a member of the Eastern and Southern African Mineral Resources Development Centre (ESAMRDCl.

35. The Hon. Minister of Mines of the Reoublic of Zambia informed the Conference about the restructuring programme being implemented bv his country under the theme "GROWTH FROM OWN RESOURCES". In the context of that economic recoverv nroeramme. the uation had been challenged to intensify diversification away from dependence on CODPer. In that regard. emphasis had been given to the develonmcru of other minerals such as )::cmslonc!;,.

building materials. fertilizer minerals. and the iron and steel industry.

36. The Honorable Minister of Mines and lndustrv of Algeria after thanking the authorities of Burkina Paso for holding the fourth Regional Conference on the Development and Utilization of Mineral Resources in Africa and for the effort made for the success of the work of the Conference. informed narticinants that Algeria had alwavs attached great importance to raw materials. as regarded their exploration. exploitation and development as well as obtaining fair nrices for them. Since .1966. more than one billion dollars had been invested in mining research and the Government had. for more than 20 vears now. undertaken various activities relating to the svstematic studv of its resources and their maximum nrocessinz locallv. with the mime obiective of meetinz the needs of the national economy and also to benefit from mineral exoort earnings. The HOIl. Minister stated that the Conference was a vantaae framework for concentrating and reflecting on the definition of a programme of action for better management of mineral raw materials. He concluded by srressinc the desire of Algeria to see an end to Africa's nosition as a sunnlier of crude mineral raw materials and for the continent to become a full nartner in the nrocessine of mineral resources and the nroduction of manufactures.

38. The Honorable Minister of Mines. Water Resources and Power ofCameroonsummarized the mineral nolicv of hi:; countrv which comprised a Systematic inventorv of all mineral resources. a rational exnloitation of such mineral resources to ensure the industrial. economic and social development of the countrv and the local transformation of the exploited minerals into semi-finished and finished products so as to increase government revenue from the mineral sector.

gold produced by artisanal miners in the Eastern and Adamaoua Provinces.

40. Cameroon was also in the process of revising its mining law so as to meet international requirements in the mineral sector and those of the J974 decree relative to artisanal gold exploitation and commercialization. The Minister also mentioned that in the field of uvdrocarbons. srccial incentives had recently been granted to oil exploration and production .omnames.

41. He concluded bv stating that Cameroon was a constant promoter of intra-African trade ill minerals and mineral-based products citing. among others. the example of alumina imported from Guinea and transformed into aluminium in Edea. and the exnoit of -ornc ^(Iftil";,luminium manufactures hv Cameroon to Gabon. the Congo. Chad. the Central African Renublic. Cote d'lvoire and Nizeria and stressed the imnortance of information exchanee as a catalvsr to lil,,!

ntomotion of tills trace

42. On behalf of the Minister of Mines. Power and Steel. the delegate of the Federal Republic of Nizeria informed the Conference that solid mineral resources development was accorded high nrioritv in the counrrv. All necessary measures were bein« i,lk('!J to lIJtemilv ^tho;

nm.hJdion of those minerals to nrovide inouts for mineral related industries in the nation with , view to achieving self-reliance and self-sustaining economic develonmem. The country hclieved tbat within tht'framework of intra-state. subrezionaland regional cooneration, increased .ndustrialization, enhanced intra-African trade in mineral cO!n11lod,tics ;\II(! 1,mdW:I' ancj Ih('

emansion of mineral consumntionin the African rezioncould beachieved

Consideration of the renort of the Technical Prenaratorv Session and recomrnendations ^f:w'.:nd~

item ):

43. Mr. EtienneZounerana. Director ofGeolozv and Mines of Burkina Faso and Chairman ot tile Technical Prenaratorv Committee. introduced the renort and recommendations of the fourth Regional Conference to the ministerial session.fhe reoortand recommendation, were adooteJ after mcumoratino the amendments nronosed durinz the discussions. The reoort ami recommendations annear as annexes Iand II to this renort.

Anv other business Iazenda item (,.

44. The renresentative of Morocco stated that his countrv had lame reserves of l!:VDSUm and would he rcadv to co-ooerate with Nizcria in accordance with the wish exnressed bv that countrv ill oarazraoh 203 of the renon of the Technical Prenaratorv Committee.

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Date and venue of the next Re~ionalConference agenda item 7)

45. The Ministers took note with appreciation of the offer madebythe Government of Guinea to host the fifth Regional Conference on the Development and Utilization of Mineral Resources in Africa in 1993.

Ad0!ltion of the report and recommendation of the fourth Regional Conference on the J)eve!opmelll and Utilization of Mineral Resources in Africa (agenda item 8)

~6. As mentioned under agenda item 5 (paragraph 43) the Ministers added the ["pOrI alii.! lilt"

recommendations of the Technical Committee after amendment- Closure of the meeting (agenda item 9)

47. Mr. Francis I.W. Nkurain, the Minister of Mines. Water Resources and Power of Cameroon. gave a note of thanks on behalf of all participants in teh meeting. to the Head of State of Burkina Faso and President of the Front nonnlaire and to the Government and neonle {if Burkina 1^;aSll lor the warm welcome and the tvnicallv African nosnitalitv extended to all oarticioants during their stav in Ouagadougou.

48. Mr. Peter Mwanza. Chief of the Natural Resources Division of ECA expressed the deep zratitude of the Commission to all the Ministers responsible for mineral resources development and utilization for having participated in the Conference. He also thanked the Chairman of the Organizing Committee. Mr. I.H. Yameozo. his entire teem and all other persons who had assisted RCA during the conference and contributed towards making it a success. He then stated that the long-cherished desire of African countries to have a forum for the exchange of information and experience had become a realitv. He stressed he need for participants to maintain contacts between their countries and ECA as well as he need for member states to communicate their information not onlv to ECA but also to each other.

49. On his part. the secretary of the Executive Committee of the FfQntlIDI!ulaire responsible for industrial development. Mr. Lansane Ouanzrawa, renresentinz the znvernment of Burkina Faso. said that the acceptance by his country to host the fourth Regional Conference on lthe Deveicnmentand Utilization of Mineral ResourcesinAfrica. despite the countrvs modest means.

reflected the importance that the country attached to the mineral sector as a major tool of socio economic development of the countries in teh continent.

50. Burkina Paso was zratified by the large number and level of participation of member states in the Conference and also by the seriousness with which participants had analvsed the continent's mining sector. The conclusions and recommandarions of the Conference anoeared to he a real rescue nlan for the mining industrv in Africa.

51. He emphasized the need for member states to implement the said recommandations and to strengthen cooperation with each other in confermity with the recommendation adopted by the Conference to that effect.

52. After stressing that Burkina, in its capacity as officer of the Conference and member of the monitoring body for the implementation of the recommandations, would do its interest to bring the measures taken by the Conference to a successful conclustion, the secretary of the Executive Committee declared the fourth Regional Conference on the Development and Utilisation of Mineral Resources in AInca closed.

ECA/NRD/FRCDUMRA/9 Annex I

REPORT OF THE TECHNICAL PREPARATORY COMMITTEE

ON THE FOURTH REGIONAL CONFERENCE ON THE DEVELOPMENT AND UTILIZATION OF MINERAL RESOURCES IN AFRICA

Ouagadougou, Burkina Paso 18-23 March 1991

I. The Chairman of the Technical Preparatory Committee for the third Regional Conference on the Development and Utilization of Mineral Resources in Africa, Mr. Bwobi Watuwa of Uganda, called the Conference to order. He thanked the Government of Burkina Paso for having invited the secretariat of the Economic Commission for Africa to convene the fourth Regional Conference on the Development and Utilization of Mineral Resources in Ouagadougou. In addition, he expressed the gratitude and appreciation of the participants to the Government and people of Burkina Faso for the warm reception and excellent facilillcs ",'corded to the Conference

2. Mr. Watuwa noted that although mineral projects took a long time to hear fruit and the economic environment in the African region had been difficult since the last Conference in Kampala in 1988~ some progress had been made in the. irnplcmeuumon of Hit: r:..., ..-?mrrli,'.m_jil;_i\il)'~

,f' ihat Ci ..nfcn:nce as would he revealedat this Conference. He expressed we view, nowcve: ..

mat much remained to be done reeardinz the effective disscnunauon of t.ht: reConUH('n(i~tt;n,h OJ"

rJw RegIonal Confcrem.c 'J! nauoual. slIhrcdonal and reztonal levels as called tor bv the thin;

:<egionai Conference. He stressed that the AfricanPOllUtaUOHh,aJii.' h~; nit-h.le ~:i\~/~ir(:,ot \he n)k'.

.;1'min...:raL-, Hi lk.;·.,t,:\;f'HH::nt inorder hI ....uhancc the deveionment and utilization or" minerals ir 'he continent.

3. On behalf of Professor Adebavo Adedeii, Executive Secretary of the Economic Commission for Africa. Mr. Peter N. Mwanza. Chief of the Natural Resources Division, 'expressed ECA's deepest eratitude to the Government ami l)<,'''llk of Burbn;) LiSO (...,' !lavin"

i.:.Gk:r-L'l\;';!V ofkro.cdt.j h\,~st the Cot1f~rcnc{':. Abo\'{; all, he acknowledgedECA's indebtedness b.:

~_~aotajn Blaise Cornnaore. President of the Front i!cpulali;",. Reali '-it Stlh: ~.:mJ l"'h::ild \"l!

G.;;veuitHt:nL \~ir iw; ~k~dH..a!il.)h in dcvelpuinl! the miniua sector and tor the keen interest he oersonanv showed to ensure that the Conference was convened in UU!KiflH i~'h"

'L Mr. Mwanza observed that minerals were essential for the improvement of the Irvine conditions of mankind. For examnle. the fuel nunerais comnnmeo (}vtr 80 hT cent lot

.ll,',

\":jdds' conlHICf'-.'131 e'ner~v" aHa tht: metals and industrial minerals were necessarv for tne .levetorunent of nhvsical infrastructure to nroduce cllods and :<:.erVl('(',:-; fi.:Wl~rc-I.1 !;" mun. 'i(;I 10:\-::

/\h-;(aH :>::,<!h)O. tn snite ()f 1~'-; huce and diverse mineral resources enuowment. consumed an .nsieniticant nronortion of the worlds nfout'I,Jioo ofluim;~i(ji reSPI.!f;~,~..':S f'k'(l \~n;;~~·ip.L ^In n.::~it.

,,'cP!:l;'lcd the' extreme oovertv ami underdevelonmem inthe continent

», He oointed out that it was in tile liuht ofthe above contradiction stakd ,[,,11 ,he hier",;,,;

t"uHiLn::II~:\;,,\un_H!t~dC1;(k:nmf:nla:Hl utilizationot mineralresources in Africawere convened [y.

me ECA, incollaboration with member States aud JH inteleskd in"h:u,,,,,,,,', ~,i

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the production and consumption of mineral resources by African countries, for the benefit of upgrade the quality of life of its populations.

6. Mr. Mwanza recalled the recommendations adopted by the three previous Regional Conferences on the Development and Utilization of Mineral Resources in Africa which,

inter-

alia, had stressed the need for cooperation among African countries, among African institutions aml relevant \>ij,)i,:s ou;:,idc lh~ African continent and the creation of an enabling investment

'"~anate in the region, in order to increase the developmenr and Utl:i2dhoH til nnnl..'falrC.'1uUi,;;';:S

if1 Hlt.: '..:'JIHlo::nc IV..': ~t1kt.t UHf the rre-sent Conference was expecteu to review progress In tho

-mnlementauon of the .'latd recommcndauons. COn"iUkT nth!:! :,oc(:11H,: ~;{l.f(hc:., Hr·~;nar,;'-;j h\ thl:

\CcfE'\.I:-::H and. ul.!h'r 1tl~;~;Httiun\:ma c'c;lai~jiish iurtner recommendations tor tne improvement o-r

;ne Arncan mineral develonmcm sectors ai TJa1H)1litL sUOrelll(jr.:·d ,ii:a rf:"~HHt,d 't\''-.:h k~·

consideration bv the mmisteriat ^SCSSlOfi of the fourth Conrerenc:

Mr. Mwanza expressed reeret that the detaired stud.. on omsoe"t, Ot'[ wcn',t'~(; \1m ".

·",i{!I.:a:i;r.,mUi3.dt'h: anll tL·.Hkiii[{"Inner r.nti alummumnascunroducrsrecommended bv the third .ceaional Conference could not be undertaken ,n titue fnr the DreSell! Cnnk.h..'ni,.:t; i"tt~.·aH";"'.•.;.r IJi::"ta,','-; in \}hiillIHn:! ;1?f ...'cHltnt; and mOt.llihHcs ()f tinancmu amonuthe various coltaborator-,

:rJNID()~ subreuional and ^reeionat rnsnrunons. member "tates. :ahri(afnr... dill.! ~:onSHBH..r\~

~Ihh~;HJ iu(; t-~{,!\ S-(~Cf('-i.aHat had rcniaced the said studv wun a SlUUV on nunerai resource.

.ievelomnent and the environment in Africa which. ct:msi"k.nrH.' th~ CU1Tt'ot \~:(jfid\VHj(.' \nh~'\'\1

J" enC'l"omm:n1a! owkdlil!L '''MJei.'iaHv at a nmc ^when the world was nrenanna ^tor the unue;

>iations Conference on Environment and Devclonmcnt h. tit; (OU·)-~,.;.\~_:,,-~ til Gt'(izH tn Jcnc t~?;...~

1,\·(H.,ld he'i\l(iW.i u\dl!ll.u111;,.; i.~\:mli;Tt':n((,. Tnc studv on conoerralummum recommended bvUl:.~

.nird Reeional Conferencewould he submitted toi11Cliihi...'l-r \t·,k:~ and {_~Hk'! i.ntcn;..··q;,~.,J jh"'fll.uL~H'~

at a later o,,'~

8. Mr. Mwanza concluded his statement hv exoressmz the none that the oresencc of rcnrcscntauvcs ⁰¹ African Governments. the mineral industries. the rmvate sector. research -nstitutions. universities.laboursrounsaridother relevantvri!~1nl£3U{h~.•at(h~': ~_.,i{~lc.i..':-:"~~_· \;",T:::id

~'.::h~if;C~~ tht; u~J.i~iiiV dWt ttw nH.t.: ofHnni~fn~ntationotrecommendanons ansinz from ^{r ,}

., Next. the Minister of Promotion economioue. IEcul10mic PrOIIiO\iUlH 01 burkina laxo.

;.1.1:. Ti""n;D

:,>",,,,,1.

\'¥"~korfl~ \>i aU n;.:tH~ciDaHt+; and exorcssed the crantude 01 the revolutionary Governmem 01

;1urkina to theEel\.secretariat tor thatch,,~i...c. aHd tortile ed.Jrt" lild'.':.·.:i;'J ~':r~;Jn~',H'- ~hr::{;;f."-;:..l"ls·.

10. The Minister further stated that . in view of the ooor climatic condiuons tna, comnromised azro-nastoral devetoement. the countrvs authorities hall taken measures which, tooav. was C'IVhll.' [i.e mimno sector an increasmztv nnoortant oiace !II the nation's economy, :le explained that.this had led the Front oonular. the hiehcstr~obli(il.l;Jnia.lU/:.ll.;I..nI,'; _{}i.~:l ~}.._\}uni~'...

i;,:-t.::;1.lblj~:!ij :--,1f\!":L.;.{~:·; ;n,:,'hJd;n:dine ,'-ll.~( r~tunatit'Etataux rnlues {Sec.r~tariai ofStite t(,rMinc~:.

'(Iaeal WIth the sector.

II. At this juncture, H.E. Sanon paid tributeto the friendly countries of France, Germany, Holland, etc. and international organizations including UNDP, the World Bankand the Islamic Development Bank whose combined assistance had made it possible to identify many mineral resources.

12. In that regard, he emphasized that gold, which had led to the establishment of various companles tur mining (SOREMIB, SEMTCOB, SMG), research and evaluation (BUMICEB) and small-scale and semi-industrial production (Gold Corporation), hHdhec'ome th,~ "X'(-'!lU e,p"r:

c" ,..,;lUi.! ,,; flU!?,'r",. ,<lkl'^c,.Hol1. He also lfid.lioned the special case of the Perkoa zinc deoosi.

~4.5 million tons with a 17.5% zinc content).:3 pfqicd cUTf;:nU\' heiDi"' l~l!i~P\· ~;~mk(n'-:~ik:i ^P,

i,Ui',1!C1H and \3UUDEN. which had much orosnectsfor Burxm•.

:\. The Ministerartirmed thatWIththeeood oertormanceof theminincsector. matcneo

wun

,; ir"mci,urk ,;I in:;,! C\fHj lfi,,,i\!thm~l incentive" Burkina Faso was strivme to establish a new .vstem tor mineral resources t.hat would h~ aH-ractl\\:.' to H}\'C:-.tun; ~UH( ^DC:!-tt,:iLt.., IL[ U1::': \f!lh:.

!4, In conclusion. tile Ministercmnnasizedthat the Conference whose themes laidemnnasi-

Oil cooperation amone countries of the African re210". was in nerrect hurmonv with the

\" it·\.'dhnnt ofHHrkma ^{J:;.1 ....l I} Heal<~1cxnrc'·;Sf.;I,.tWe 'tvlsh that narticinants would discuss them with

.ne anoronnate seriousness in order h} reacn L"nnc.lll::;~('iL, lh;it -"hEi!;.; !'td:.' ~''':':\'H_Jli/\, HW·L\i"rlC;t'c

In1niJ1': ~~C(.;lOl throuzh rceronai ana sunrezronat coooerano..

. S. He then declareAi the exnerts meerinc t>'t the Juu:H~ Re::"Hm:~! t 'p:::'c.!"{'n;';- ,in n\~_'.

:'\'veiu1J:ncnl and Utilization of Mineral Resources in Africa oner, :1. ELECTl.ON OF OFFICERS i6.. The COliterence unanimously elected the tollowina officers:

Chairman:

First Vice-Chairman:

Second VIce-Chairman:

First Ranoorteur:

Second Raonortcur:

Burkina Faso Morocco Zambia Tanzania Chad

III. ATTENDANCE

17. The Conference was attended bv reorcsentatives of 20 Airican Governments: Alzeria, Burkina Faso, Burundi. Cameroon. Chad. Cote dIvoirc, Gabon. Guinea. Guinea Bissau.

~,,1flt~'~\L \Lji:~·ic:a;-na. t;-1t.;rUCU.i, "MD:/.mnbwu\.:. the Niuer. Niecria. Sencaal. Uzanda. United

«eoubuc of Tanzania. Zamtna and ZHul~~1h\',·,,-~.

> •

5

18. The following international institutions and observers were also represented: the World Bank, Department of Technical Cooperation for Development (DTCD), United Nations Industrial Development Organization (tJNlDO), Southern African Development Co-ordination Conference (SADCC), International LabourOrganization (ILO), IiasternamiS'.lulhL'I"fl''-fric:m

'\"nw'~; !(··,,'.1"",·'." Dc'"..-hn",;o;1' eU;!"; (f-:Cii\MRDC), Economic Community of West Afric;

('EAOL Autonte du LintakoGuurma H;c L.\.:i.Hh"'l'lik (\,;r:F7:Ui!;;, i~( \'V..':~. ·\h!.'."~H! '~t:iiV\

J_!~,(~?\\i:\·...^j_ ~n'-. int"fU1i.T;-'-'Od,j /\,\\..,....liHH;:~ ",1 UK1.-w~JP\.:an l\1i{:HH~Enternrrscs ([UROMINES-

.. :ua tne Bureau de re';':',hen:hc-:;, i~t~n!:J:ju:-I[_~'" l~i rrn;:~~:.: n·)l~( ~;,,'1 ~,

rv.

L Onemna session, 2. Electionofofficers.

3. Adonuon of the acenda and orzanization of work.

4. Consideration of oroeress achieved in imnlementation of the recommendations made IlV the three. nrevious il.eielOl1,,1 C,_,uhH n:.. .:', ~jc'/;"'!ovmt'ni\ lh~t altccted the mminzsector durm>

:be lJcriod ~98R-It)90 '-tnd !rn\~~lK'Z:b ittr OF' ~I.-!~~U,·

:1. Consideration of conditions for increasing the nroduction 0;

vemsroncs and senn-nrecious stones a, \Yell :.\.\ rn..·,:ii.-'u'~ ~TII':Clh :.'\

'HnH^:;',('i\'c ,ninwp' (lot:tatloHs in Arnca in SUCH a wav as ^H'

-nnance their contribution to the !"z.:drh:.tj,,)H (,Ii Al"nCi1 "'-.hdbn...: ('l

tJhile ;j,jJCjl, un th....:- Lmi::· hand and tu the econom.c and socra.

ucveionment of the rcvinn. on rue other: fa) :.nraH~.~·;n("': ,-'n1i,!

;n,rn~t::. ^fl';l ,-~.'>f}s!d\.:ntntJnor /\lnca Sootenuat m uernstones ant:

.enu-nrecroos stones.

o. Consideration of Iron ore production in Africa and future nrosnects.

7. Mineral resources develonment and environmental nrotection ill Africa,

8. Consideration of conclusions and recommendations of the meetinz d tnc f<:dllHcal Prenararorv Committee of the fourth Reeional Conference on the Dcvclounrent and 1.Jl!1'/;I:L~,n ::: \lmual Resources in AIm;·

9. Any other business.

10. Establishment of the agenda for the ministerial session of the fourth Regional Conference.

II. Venue for the fifth Regional Conference.

12. Adoption of the report ofthe Technical Preparatory Committee . 13. Closing of the Conference.

•

7

V. ACCOUNT OF PROCEEDINGS

AlWraisal of progress made within the framework of the implementation of recommendations of the three previous Regional Conferences. developments that affected the sector during theperiod 1988-1990 and prospects for the 1990s (Agi'n(j" li',m·1)

cU. " ,,'\'f{"L"!ii)it<ve \it_'J1t~b:Ch.\(:Xlelari~t introduceddocument (ECAINRDiFRCDUMRAIt:

',latinl! to the above topic.

2 L It emerzed trom the nresentation that the recommendations of the first Recional '. ""(u;l",,,'l;cid in Aru,ha 'rsnzama in 1981 were addressed. on the one hand. tomemberStates .iDO African insutuuons and on u),~ otn.-r hand to tl«. LC!\ "'(,Tc\,,".,\.

22. With rezard to mineral resources. member States ana Atrican msntunons. taken individuallv or collectIveiv. were requested: (a) to acquire and increase their techrucat

~.n.!''.!-,_h~~L:::.;. :;',1 to cn':;ltl: ,md "",Lf;.:.:nQt!)l"H the _.\i~rvices resnonsibte for rnimna anti extraction

:-lrOC·CSSln~and marxcun«. (cl to {k'\"~l~H\ \.~iJUir'H-:;'::tH ~:H.m:·.~:'i(':,:n,:'! ~J! \.~-' ~:~r~'T>II~:: ff1:~\:1'-'.:'~'''!

traininu and runner course.

23. To the ECA secretariat it was recommended mamlv to: (a I conduct certain sllldw' and

pri:.:lJtl::~: \',:~,:rk·;II~m'"" \('';]In<.rf:;; ;md \ludv ~liD~ anu <hi U'iSl:st the institutions rcsnonsible to;

:-mnerat resources.

24. Within the framework of the imnlementauon of those recommendations. the secretariat.

in addition to ensurine their wide dissemination. had nreoared various thematic mans with the assistance of the USSR. orzanized a seminar 1in Krivov-Rov. USSR) as well as studv Inp, It' rL't' ~ ^,;t(ln i\;T.U~\'.,":tL ·::~'u;·;tnc::^::WJ nr(,~'..>~/^..kd a-.;:;ist~UlC(~ to the mineral resources develoomern :'emres nne existing ^one in Dodoma an\l the one currentlv ^bt')1ltt e~;~~it)h~:tV::I.!'j!1 f~r;.tr/:H;dk:~

2). The second Reuional Conterence held in Lusaka. Zamhia in 1985. in recommendinz R·

member States. African institutions ami ECA to pursue the irnnlcmcntation of the recommendation of the first Conference. further invited them to out emnhasis on: la) small- and medium-scale mininz in rural areas. (b) the estahlishment 01 Atricau mmerab ,md -:l'OUO,\ l:!

n:!j::.r:!i\;}';"~:·i..:iJ.t',\n':;.k'l the '.;,:,;tdi~ll~lH:ll:lJt\~lli',rKclai Iinancmv mechanismwith A,DIi. and(u}

-ne invemorv of conner and aluminum Tnanul~inu,:nm! iplfn~tri.-..~,:;

26. Within the framework of the imnlementation of those recommendations. the secretarial had undertaken various studies uncludins those on nnosnhatic raw materials. the incidence of d<:en-sea minme. the evaluation of Arrican mineral resources and an inventorv of manufacturinz industriesr. conducted nezouations with ADB on sneciat unancinv mCtXI'H'l~~~m\. !:}r~al.l/ed

~\l..;n1\n,!~'\ ^111' -"",=:'-':';I!i:~, 3~'\!. fn^l_·"'<~:':'::~Ji. ,i~:\i·:L;d !.rh'mbcr St~t(~"\ (Hotxwanaand Mozamtncuci ant;

"':'i.lfiUIlUeU its assistance Hi the !)!.'Jo!":l(.l ;~!~.J H~ ~i./L;!'·:;i,:.,_, ~'.~,;;.l:'.: •

27. The document dwelt much longer on the recommendations of the third Regional Conference organized in Kampala, Uganda in 1988 by separately underscoring the specific recommendations addressed tomember States, the ECA secretariat and the specialized agencies of the United Nations or other international organization."

~8 \'.,W E~~~nj to m,mber States. emphasis was put on the recommendation made to them

.l) strenethen the mulunauonat f(;iH~ldi fi:~,\ln\,:.\ ~,t-,<-,(,'Int:rm'~'d :_\.':~,i\^{.. '_ :;H!,.J} t:: '~'\'UU,·i:!>.: til.::;

,:._'i;Hn\~ (;\';\'~:iC" :':i;U pi<~;I!. ',-, li~ "i~~,,'l t:~ H',,;,~-".: 1_{~i'., ~'n} In.,:ic ,-;-lnductvi..~ {O promOOH";.( ana _cnsunn:~

.-,~nDermion aml)HF :;tal:..::::,

~9. On its Dart. the ECA secretariat was invited: ^(a) to studv the nos,ihihi",·; :,; cr,'ati""

:""~-_'.i\,-'lL ^,Ho,d ~-';;'J~h,_:{l_~ :\l"ri\.:"Hi ,-'".:,i€i\'-': (},~ to ',}12dfiUe xeminarv ;uKl torrnulate strateuics ^or

ruau-scatcoreciou-ano ~Ulfl- :HC~_^iU1..hl>l;;l ....;;~!"'., C";'U,"'~;lIH,n ^{!C; [" .:} ~,.;,^...it". I. '.; ...'\~r<~::' '~'~li ^t"!\"'j,t;;

,,,'['''~', ^{")\ i}~!^"Jr.!\~ ;-:"'< '-',_... !,LI"\~;;^1:,-(1"-JU:,i ... ,,ndl:~ ~; l~, '~'n:·.:'d t..;:d~\mot rnanuJi.H.1uffOi! andmtra-Atrica..

1In;fnl'liill\' \WHi:'~T; mtiTi:li~ nrOl~:1;1~, ~'.' li.; '; lH ..i'n1H\' Hk~ ;J';;VCHmmem Of onosnnarc ana nOlaSSHIT!

it~nosus, tl~ to IDVOl\'C rc,nrc'\eH'd!E'C\ ('1 lrh:no.;.~r'i,.'\,. ~Ifq',. !·.'~E·':. .·HLi ',~J,\;'l<:~t'... iJ~ E.~:"::H.);j";i

li:,icrc'r,.:(..::~ :nuj t·.:. ';'.1 dj>::';i,;nHn<!f(~ Ui\.~ reonnmcnuanons 01 Inc v.onrercnc.

_,J. HI the case of the Hltt:rnanon;:,l F!S-PUl~Hff!>.lh·..l'(i.'!.THTP""!tt!;1U"'''!'.:,"·'en: ;Hl\~T;. '."'.",! :~:1 ~!1~

,:i~:' i!~1,d. tu (,"1-"-;:' Umil.'d ~'·;:.Hjll\!" rJ;:'fH..:<: i~;r {)i..:c-:,r: f\ffarr'i and the Law of the Sea and on th.

.:\ l . On the ouestion of activities undertaken. the document indicated Ihat ther.cc'(m&lt:ilJ'lllUh

;';_'I?UP'2 ,,', c.h'::·,.:~'nin~"!.L, 'n <,~ 'I -.'Il~P1lE~n(h.3J/^,ili:,;. lh:: mldh rntHll}~Ilmineral resoun~csdevelonmen.

,_t:nrres. Small-scale !lH.\OlPU"; fPP!r~T;ji ;'7,,!)~!y~~qlDB ~l1iO (;.~, 1"rfh~:)i~rl(~k ^;..md nnL.~".':iH;:;; 'H~hJ ~~,~,~.;l.

-)frw;",,! °iti!' H"~':··.~1,'1 ':'-', :\~d~',i!j''':, W~!!l~: rJ:~- :-('.:lli~~:;Wf\,~k~L~~lon 1!1enl:.Jnul(tcUtrtnl! indusmesrr:,:

"nOOC""f anu aIUtllmUm-t)J\i..x1 u{'iHjHn, \-\.';1\ w~;jl'r V':.t'V

fV~.::T;r"CT SttiF:~; mid the in~jltutions would QIVC account of therecommendanons madeK

;-nem In the course of the odibcrattuns^o

33. Finallv. the document analyzed deveionments mat had artccted theAt..canaWii"" ,,,el'"

tH1I1it.:: Hli.' r";~:i'. ⁽ⁱ lLldl"::!:.'t,:;! 1t:::: In :.::;""n':''f":~i !h<~ minin: indusuv in Africa had decnned 0:- -taenareo uuruur tha[ t)erj\~{i,

34. Examnles of aluminium. conner. iron, nhosnhaies. dianlUn:j:-; ~n;l l:nk!. t;~ven W !l';.

'~. -r . _~k',;:;'m-!J~" ~~i:')k~' ⁱil[~' \r~,::~: tf1~" t~'!.~!~J~; in irffJ{,ht<..~tlOH.OfOCCSStn\!. ronSUffiouon ar.;_'

9

35. The document emphasized that those trends could continue in the 1990s, particularlyin view of the new constraintsimposed by socio-political developmentsin Eastern Europe, onthe one hand, and the Persian Gulf crisis, on the other hand.

36. Itwas therefore recommended that besides gold which had bright growth prospects in the

i'll;{ IS I.ith- l:J tH,' ~'tJ~;ni^(1;.', C~i' ^'1';'-'/,' m;n(:~~i the rcxtrurtuting offormal mines and the increase in .man-scale and serni-industriat nnHHh,,:lT(!iL .\fn.· ..ir~ ~~r~ih~'; -';;\_':.:H ~·-r:';~".~ ~.fl'.__:i; n-;.,'~^..~;~". r;,~ ~;.~.,.

:"tr~n~..'i:t i1i.:a::;iIl"'::'"1 i1_HJ::'~' ;nkndetl to reverse Ow above trend-

in conclusion. it was stated that in addition to lh" information k' k fur;mnc(l h'",i,,:

Sti!-C'"" ;1:1d Hi:.'!ifUlt\)H:'; tIl"v.: mr:;1S11n..~~·; shrHtid. inter-alia. seck to: (a', imorove and co-ordmar

-~llnln2: ueveronmem noiicies: IO~ SleO Hf)- DOS~;li~HIr!H.~" h~ nrpi.'v):,- nnfll."fJi !.{\!': nutt'!lJ!'''" ~ni.: 1'.' nJ.:i.quhdn:'~- ~vude\ rUtin th>.:nI: H:~ e~;u1'1.h~:h :.rnd ensure cnective functioninz of larze Atncar .narketx so as to increase consumnuon:

«n

',~^..---s:~~.:. 'Tn~,.· :v\n:t~ :..'rc".H'li!\'~,", d,rHtUk'-ref<l(f;l:1i m.~:HrutH.m,< and teleJH:onraEC memncrStatesanF

UnrC2JOna; erounines to iOlfl e;-:istm:.::or tilton' mHr.T;~{ H.':'·;·~:,~1'L:~". U',·\":t,;~,;.·:n·h'nt ,_·.:!·l\'::~.

.iK. Follmvm!' We seeretanar:s nresentauon. the representative ofMauritania intormed mr meetine 01his country's mineral index which C(Hlrpr,\'~ed'\i;i)O'i..:(.Hnt::h'\"~: n.{rnHKi.ai ~~W'\,"',l~!H""";;

,',;J':J rrnt".:!'''! Ll":W;.il'.~rul"·\ ..lJ1~;~1!L ~h:,U1WJ,1 W':C\lh"<It!!...,n~, in vu-w(~fH1Cshortaeeotf1nancl.o~

In" hunlan resoun'C's. tnt" ,:'Jlxol:r'V :.; l!H'iI:r:q Pi:l\h...· b,Hi net·", r(·,.'t,",' ..\1:.). '.-i\t· 1{-'L'l~,!~P!.. :n :.,,'1 111/nHl" :.li!U tt.i'~:r:':::!i'~' !;·;,":·-·m.!\-·t~·, ^!1\lU (HP.'dn;(-ll.~~>iur m';t:s{nr,-:, ^'j re H,~,2J~tanDnconcerneu wer

DC mmlO\:? coue wuun 'v.'::t:, r~\'t,.cu. \11 :966. W~ TK'U':'ll.'.!:l}', L::'f'::U~~"(, ^{,d1\i Hil; );)\}:.<,i~;;:'fE ^',...1- t~le m\t unc navmz neen revised in i9b-

dL'1Y.NI winc.h dill flm reuuirc soonisucatc.

uranium. sulfur. and iron. Rezardina iron. m.

tlt,nel"i<:t:uion methods had neen discovered^I.

cxniorauon OJ wnicn startccr Ht ,"lUi \vltD ii'll. H(-"\·hPII!ilt.JH ,:\ {'-,r.'d.J'~ d 1'1.;\; j n(--1'.' dl.ljt~'d.~ ^·-:,·)\tl.

Il\-:.J \ J -t: : :InlefH : P' -.' '. . i ::au 1~:",l;;f^'.~"'~ d111'lL!,'\1 ; n:..:hi b(i ^!liti \ii,J11. l,liiS {Idl'hi:.CH discovereu ⁱⁿUi'.

\11 naoudai area. Uti.!er dt:no~ll\ .!l:·HJ L,\.-....:fi hlU!'lJ W ul;.' : i. -\Utd ~i.t";;'-:L "lFi~:,--', ;j~Hl: ^{,11'H,' h ' u l} '.,JllH-::·U ::01 tHI 'o;,d;j, Ie! ,!Ill";, ,.\~-~'\"",-j; .\,-Hll".·~~Jl ~li~... (l\'\:lVG in ·"),,-1.,~ha>1 orancmcnar. neavv sartu.

evnsu.:

40. He conciuced ov sraunz that til(~, llhntrcH _~CClOl wnicn h(i~i he.ent'n.~. P~'~fIH tlf\;·~U r..'1 'l.;!"

t.::.\;Hi.lilh' ir'.,'i-iJ "-/1.,..:. i,'; ;~;~;u '~'i,1;1:~ ^i,,:Ui11:;;:f1I,j'\,: j;lLlflt' :'(i,He nrOD~e(nS and its contribution t:

;';.'lauriIania·s Gut' had i'C1ht..,fih',a 111-:';" ^>':,;!;, ,(\ i'}'hr. ~.ild(L, ,~d.. h. dlY~':" r"t:it\{,' ,;l<.\'.I( iI" i,n'I,';Pl('

smaii-scale minil;

4.1. The reorcsenr.ative of Zambia Slrcsscu thatl!'it.:.nCi:fU-Hii~( '..'hki'::;;1(:G~^dB t.1IL:iJi:~'~'\.'h.li^iiJfUH

a,r,d \,fP,'ii'.I\lb "'1 I.-jd',c..iin l{\,::"iljfl:t.~. it!. :·titil;~ '1o\'i.-:IC Ih'u)ortanl events where reV'lCWS an~,

sustaining socio-economic development inthe African region, based on the use of indigenous factor inputs tosupply regional needs. He noted thatinspite of Africa's huge mineral resources endowment, the contribution of mineral sectors towards the region's development was proportionately small due toinappropriar« rniHL'r:d !h'v:"h~pn;!',;i P~\~~"·;~·· :tHd i·t<. ·,~ldnjlih:".

·:L~iOn:.I! t.~onh.·r\..·n(·("~ t~n r:r';l\~~-:H~~ f,;'!P~tH::':' 11:1-.": r,l ·,,;:p:,:r:h;~,:{ :l:';~.lth~·I· ^',f·l~~f:\]'.;~n·;:·^.. Hii(>1U.:"i. t~,

"T:. . .' :~i:\' ;.nmn:'-I!'j:,.ll, "1 II ,fkld'" ; -, '.'/;i!':J~; ^'rh' ;';::...1. '<]l -, '_'" "r;,i~1.11· o:",.i\!fm~t;nJ~~nL'I 1\C /,arnlHti!'

;, .."

..

coumrv runn.:

\- ,iLri,,:;,; ;., '..\,;,'-, -". 'id~\;,' '_,~i'<~illi;,t~-" "j'~"'_! r~l:lfkjlri~,H"iiU1 !llhJiDal (,~.li1SUn)mh)fiana cxnofL.'., c,

·\rncr AlncanCOUOtfH.'.S. ,~~'X,rh.HlS 0, rHi.'1C;~~_l i:-i~':_';'~'. f'- "",.'". ";' _{,"'~., ,-~-,;.,}

C ..-'fili.,:Dl. anu t:.olUVi were ncme cuenca 10t\..cnVil. tiurumlt ana1anzama resnccuvcn

··_::'~vnsnlns.

'D. in orucr to renuce ococnccncv on conner, me countrv was mtensuvmz uivcrsmcauon to

,_-,

....l,~"

. " -, .

'....

'.

: .," . ;~;:r.,

11

46. A gemstone organization to be operated by the producers themselves was in the process of being established. Conditions for marketing, cutting and polishing of gemstones locally or abroad were being liberalized. Anauction system for all gemstones was being introduced. Plant hire schemes in all major gemstone producing areas were in the process of implementation. As an incentive to gemstone producers, their sales would be paid for 50 per cent in foreign currency and 50 per cent in local currency. Mineral export tax had been reduced from 20 per cent to 5 per cent of sales revenue. A revolving fund was being set up to assist miners overcome their short-term liquidity problems. The Mines and Minerals Act was currently under revision in order to cater for the new perspectives of the gemstone industry.

47. With regard to industrial minerals, the Zambian Government was promoting the development of construction, manufacturing, chemical and agricultural minerals to meet increasing internal demand. Likewise the existing coal mining company - Maamba Collieries Limited - was undergoing rehabilitation under the African Development Fund Credit Agreement to expand coal production for local consumption and export to neighbouring countries.

48. The representative of the United Republic of Tanzania informed the Conference about the historical evolution of mineral development policy in the country which foreign and local private investors had shunned in the past several years, but had been increasingly returning to since the last five years, to do business.

49. Itwas reported that the country had a good geological environment with promising prospects for the increased discovery of economic minerals such as gold, diamonds, gemstones, nickel, base metals, coal and a wide variety of industrial minerals. However, with the introduction of a state-directed development strategy and nationalization of several sectors of the economy a few years after independence (1961), private investment (local and foreign) in the mineral industries had declined to a point where the contribution of the mining industry to GDP had fallen from about 10 per cent in 1961 to 0,4 per cent in 1989. Moreover, the structure of the mining industry had shifted from predominantly industrial-scale to partially uncontrolled small-scale with little impact in terms of fiscal revenue.

50. The Conference was informed that since 1985 the investment climate in the country had improved remarkably, leading to the increased flow of private investment in the mining industry.

Placer Dome (Kahama) Limited (gold), Kabanga Nickel Company (nickel), De Beers (diamonds) and several other companies with both local and foreign sbareholding were reported to be currently active in mineral resources development in the country.

51. Among the policy changes which had brought the recent increased private investment in the mineral development sector of Tanzania were: the Mining Act of 1979, the Government papers on "Small Scale Mining Policy" and "Large-Scale Mining Policy" of 1983, the "Model Agreement" of 1988, and the "National Investment Promotion Policy" (NIPP) of February 1990.

52. The Mining Act of 1979 incorporated the legal right of the Government to discretionary intervention in some aspects of mining operations. It set out the framework governing the

53. Conversely, the Model Agreement of 1988 eliminated the obligatory requirement of Government majority ownership in mining ventures. Ina move towards further liberalizing the economy, the Government issued the NIPP in February 1990. While the basis for economic . development continued tobethe policy of socialism and self-reliance, the NIPP emphasized the increased importance of private investment. Foreign and local private investors, including those in mining, were protected against nationalization. Further property guarantees were provided under the Multilateral Investment Guarantee Agency (MIGA) of which the United Republic of Tanzania was a member. Furthermore, under this investment policy, the country would soon join the International Centre for the Settlement of Investment Disputes (lCSID).

54. The NIPP established clear and transparent rules with respect to the rights and obligations of the Government. It had been established that, notwithstanding the level of Government shareholding in a company, mine operations would remain the responsibility of the investors.

Moreover, the NIPP did not require Government participation to be mandatory and it eliminated the previously existing predetermined proportion of equity holding between local and foreign investors. An Investment Promotion Centre (IPC) had now been established to process investment proposals.

55. Fiscal arrangements affecting mining operations were covered under corporate taxation, royalty, customs duty and sales tax. Under the Income Tax Act of 1973, corporate income tax was 45 per cent and 50 per cent for residents and non-residents respectively on all taxable income. For mining companies a variety of tax incentives did exist and lead to lower effective tax rates. For example in mining, for the first four years of positive taxable income, the rate of tax was 22.5 per cent per armum.

56. All mining investors benefitted from generous incentives including capital expenditure deductions and free import duty for all exploration and development eqnipment. All pre- operational expenditure for exploration and development were deductible at a rate of 40 per cent in the first year of mining operations and 10 per cent in each of the following six years. Royalty payment was levied according to rates set out by established regulations.

57. Payment of dividends, interest on loans and management fees were subject to tax. The current rates were 10 per cent and 20 per cent for residents and non-residents respectively.

Withholding tax rates for dividends were 5 per cent and 10 per cent for residents and non- residents respectively. Other incentives provided for mining operations included retention schemes on off-shore accounts which permitted an export-oriented mining venture to operate without constraints on foreign exchange obligations.