Mining in Africa is plagued by negative perceptions despite the major role it plays in the growth and development of the continent, according to Prof Gavin Keating, a mining analyst and economist from Rhodes University in Grahamstown. He said with the continent’s people not always benefiting from the rich resources with which Africa is endowed, the nationalisation debate has regularly raised its head over the years, impacting negatively on perceptions of mining. “The historical relationship between high commodity prices and resource nationalism is well known,” he said. Keating explained that when commodity prices were high, the distribution of mining profits was perceived to be unfair and therefore the calls for nationalism increased. The same goes for local ownership calls that increase significantly during the boom times. According to Keating, communities are deeply involved with mining activities in their regions. “The matter is further complicated when the mining companies are foreign.” He said managing these perceptions – along with the negative belief that mining continues to have a major environmental impact – was crucial for the sector if it is to truly grow its activities in Africa. “When calls for local ownership increase – along with more fair profit distribution - there are also more attempts to try to force mining companies to sell product below market prices to encourage domestic beneficiation. All of these challenges exist and it would be very short-sighted of mining companies to think they have gone away.” He said mining executives needed to work harder at selling the positive mining story to communities and to change perceptions around the business. At the same time Keating said renewed calls for new and improved infrastructure were necessary to grow the mining sector. “The lack of ports, railways and roads remains one of the biggest challenges facing this industry. What is being done and where is it being done needs to be on the agenda of companies,” he said. “Infrastructure investment will be crucial in the next few years and already we can see the Chinese investing heavily in the continent’s infrastructure. One way to access raw materials is to provide the money to build the infrastructure needed to get to them.” INSERT One way to access raw materials is by providing the money to build the infrastructure needed to get to it. – Prof Gavin Keating
