PRESENTATION ON THE ECOWAS FEDERATION OF CHAMBERS OF MINES. by Sulemanu Koney Execu0ve Director EFEDCOM
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1 PRESENTATION ON THE ECOWAS FEDERATION OF CHAMBERS OF MINES by Sulemanu Koney Execu0ve Director EFEDCOM
2 The ECOWAS Federa7on of Chambers of Mines (EFEDCOM) q The EFEDCOM is a federa0on of Chambers of Mines and Mining Associa0ons in member States of the Economic Community of West African States (ECOWAS). EFEDCOM had its inaugural mee5ng on 3 rd November, 2016 in Accra, Ghana. q Mission: The Mission of the ECOWAS Chamber of Mines is to advocate for effec0ve policies to promote sustainable and responsible mining, and to use the resources and capabili0es of the Members to serve the needs of its stakeholders within the Community.
3 The ECOWAS Federa7on of Chambers of Mines (EFEDCOM) Brief History q In June 2010, the Chambers of Mines of Ghana and Mali agreed to collaborate with the view to harmonise the mining industry in West Africa, led by the private sector. q Subsequently, the ECOWAS Secretariat requested the Ghana Chamber of Mines to lead in the forma0on of the regional mining associa0on. q Various mee0ngs and discussions were held between the countries with significant interest in minerals between 2011 and q Despite the ini0al boulenecks, the founding States commiued to ensure that the regional mining associa0on is created to set a common plavorm for unified advocacy for the sector in the West African sub- region.
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5 KEY OBJECTIVES OF EFEDCOM q Sensi0ze Member States, through campaigning and advocacy for the enactment of effec0ve policies to promote mining across the Community; q Promote mining interests in the Community, in par0cular, the image of the industry and its Members; q Communicate with, and exchanging informa0on on mining mauers among members and with other non- member Chambers of Mines, relevant Government departments and organiza0ons, including civil society connected with mining, generally in Africa and elsewhere; q Ensure effec0ve membership- governance; q Provide informed- leadership for effec0ve solu0ons on mining industry- related issues; q Promote, par0cipate in, or support the establishment and improvement of facili0es in the Community for educa0on and technical training, and to give scholarships and grants aimed at benefi[ng the mining industry
6 CURRENT MEMBERSHIP OF EFEDCOM The Federa7on is currently made up of five (5) Chambers of Mines and Mining Associa7ons in the ECOWAS sub- region. They include: Abuja Chamber of Commerce & Industry, Nigeria Chambre des Mines du Burkina Faso Chambre des Mines de Guinée Miners Associa0on of Nigeria The Ghana Chamber of Mines
7 POTENTIAL ULTIMATE MEMBERSHIP OF EFEDCOM Countries Burkina Faso Liberia. Guinea Nigeria Ghana Niger Sierra Leone Mali Minerals Mined Gold Gold, Iron ore, Diamonds Gold, Bauxite Gold, iron ore, coal Gold, Bauxite, Manganese, Uranium Diamonds, Bauxite, Iron Gold Senegal Gold, Lime stone West Africa is the next fron5er for mining
8 Gold Produc7on in Selected African 200 Countries Tons Source: GFMS
9 IMPORTANCE OF MINING TO WEST AFRICAN COUNTRIES q Beyond direct fiscal receipts, the sector has great capacity when it is optimally integrated into the rest of the economy. It includes: Job Crea5on inputs provision for other sectors research and development activities technology transfers contribution to the state of development of sectors like banking, financial services, transport, logistics, amongst others. q Mining also contributes to development through implementation of Corporate Social Investment (CSI) programs for host Communities and the general public at large; q Supply and value chain development and linkages into nonmineral economy; q Harnessing the economic transformation potential of mining for sustainable development.
10 MINERAL PRODUCTION IN WEST AFRICA Mineral Produc0on in West Africa between 2010 and 2013 was dominated by Ghana, Mali, Burkina Faso, Guinea and Niger. 100,000 90,000 80,000 70,000 Produc0on (kg) 2010 Produc0on (kg) 2011 Produc0on (kg) 2012 Produc0on (kg) ,000 50,000 40,000 30,000 20,000 10,000 0 IRON ORE DIAMONDS BAUXITE DIAMOND IRON ORE COAL BAUXITE MANGANESE URANIUM COAL DIAMONDS BAUXITE IRON ORE B. FASO LIBERIA GUINEA NIGERIA GHANA NIGER SIERRA LEONE MALI
11 AMV & LOCAL CONTENT q The African Mining Vision advocates for the integra7on of the mining industry into the non- mineral economy as a means of crea7ng value for host countries, besides the fiscal payments mining companies make to government. q Entry Points to Realize AMV Downstream Value Addi0on ü Processing industries that provide feedstock for manufacturing and industry Upstream Value Addi0on. ü To develop resource supply/inputs sector (Capital Goods, Consumables and Services) Technology/ Product Development ü To incubate niche technological competencies in the resource inputs sector that can migrate laterally to other sectors to produce new products for other non- resource markets
12 The ECOWAS Mineral Development Policy (EMDP) Vision: To harness mineral resource capital to facilitate sustainable economic growth and integrated socio- economic development in the region. This is in line with: The African Mining Vision 2050 adopted in Addis Ababa, Ethiopia in February The Yaoundé Declara0on adopted on 22 November 2002 by UNECA concerning Ar0sanal & Small- scale Mining Sector. The Durban Declara0on of 22 November 1997 on the sub- regional and regional coopera0on for the development and efficient u0liza0on of mineral and energy resources in Africa. Main Objec7ve: To promote the development of an efficient Mineral Sector in the region.
13 The ECOWAS Mineral Development Policy (EMDP) Major Areas & Programmes: q Improve geological and mineral informa0on at the na0onal and regional level; q Improve and efficiently manage mineral revenues; q Implement local content policy to guide mineral opera0ons; q Build ins0tu0onal, human, technical and financial capaci0es; q Improve the ins0tu0onal, legal and regulatory frameworks q S0mulate sustainable development and corporate social responsibility; q Develop infrastructure for improved access to mineral sites; q Regulate and develop Ar0sanal and Small- scale Mining. q Strengthen regional coopera0on in the mineral sector;
14 The Way Forward For West Africa q Consider West Africa as a common market: ü Individual markets may be too small to jus0fy investment in mining value chain ü Assess the compe00veness of each country to produce inputs to determine which country produces each input. However, decision should have built in risk mi0ga0on measures; q Formulate and implement key policy instruments within West Africa: ü For instance, ECOWAS places a 5% levy on all goods that are imported from outside the sub- region; ü An inherent margin of preference and compe00ve tool; q However, challenges remain: ü Par0cularly transporta0on of goods within the sub- region; ü Leverage and promote private shipping line being proposed by Chambers of Commerce in the sub- region;
15 THANK YOU (S5mula5ng Economic Growth Through Responsible Mining) Sulemanu Koney Execu&ve Director THE ECOWAS FEDERATION OF CHAMBERS OF MINES
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