Scott Ludlam (WA, Australian Greens) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Trade, upon notice, on 4 April 2011:

With reference to uranium mining in Africa by Australian mining companies:

(1)   Did any departmental officers attend the Indaba mining conference held in Cape Town in February 2011; if so, who attended and with what purpose and outcome.

(2)   What further discussions or correspondence has the department had with representatives of the Australia-Africa Mining Industry Group or mining industry representatives in relation to possible partnerships between Australian mining companies operating in Africa and AusAID.

(3)   What companies, bodies and officers have been involved in this discourse and with what outcomes.

(4)   Can an outline be provided of the process for the sale of the Australian mining company Mantra Resources Limited to the Russian nuclear company ARMZ Uranium Holding Co.

(5)   What role does the department play in any assessment or approval of such a sale.

(6)   Has the department provided any advice to any party or agency, for example, the Foreign Investment Review Board, on this sale.

(7)   (a) What government assessment, due diligence or approval is required in such a case; and (b) what are the mechanisms for realising this.

(8)   Does the department expect or require Australian mining companies operating in Africa to abide by standards comparable to those that apply in Australia and to observe responsible international practice; if so, how is this expectation or requirement given effect.

(9)   What is the department's position on the current situation of the Bannerman Resources Etango Project in Namibia, particularly in relation to the public comment period on the project being completed prior to the public release of the environmental and social impact assessment and the environmental and social management plan (both key environmental assessment documents).

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The Minister for Trade has provided the following answer to the honourable senator's question:

(1)   Yes. The Mining Indaba conference was attended by Assistant Secretary, Africa Branch, and Director, Western Australia State Office, Department of Foreign Affairs and Trade, as well as the Heads of Mission of Australia's diplomatic missions in sub-Saharan Africa: High Commissioner, Abuja; High Commissioner, Accra; Ambassador, Harare; High Commissioner, Nairobi; High Commissioner, Port Louis; and High Commissioner, Pretoria. Also in attendance were Second Secretary, Australian High Commission, Accra; and Australian High Commission, Pretoria.

DFAT officers participated in a number of events at the Indaba conference designed to promote the Australian mining sector and to facilitate its contacts with African governments and companies.

The DFAT presence at Indaba helped to facilitate access to African government decision-makers for Australian businesses, demonstrate support for Australian commercial interests in Africa and enhance existing Government-to-Government linkages.

All the DFAT staff listed above also participated in a consultative meeting between Australian Government agencies and the Australia Africa Mining Industry Group (AAMIG).

(2)   As noted in response to question 1, DFAT chaired a consultative meeting between Australian Government agencies and the AAMIG, held in the margins of the Mining Indaba conference in Cape Town on 9 February 2011. The question of potential cooperation between Australian mining companies and AusAID in the area of corporate social responsibility in Africa, as well as in capacity building for African governments, was discussed at the meeting. This was the second such consultative meeting between AAMIG and Government agencies. The first meeting was held in the margins of the Africa DownUnder mining conference in Perth on 2 September 2009.

(3)   Representatives of the following companies on the interim committee of AAMIG participated in the industry-government consultative meeting in Cape Town on 9 February: Adamus Resources, Anvil Mining, Chalice Gold, Middle Island Resources, Paydirt Media, Platinum Australia, Resolute Mining, Sundance Resources. Representatives of Curtin University and Unity Mining also attended the meeting. In addition to DFAT, government agencies participating in the Cape Town meeting were AusAID, Austrade, the Export Finance Insurance Corporation and the Department of Immigration and Citizenship. The DFAT officers participating were those listed in the answer to question 1 above.

At the 9 February meeting, Government representatives advised that that co-funding of social responsibility programs of mining companies in Africa will not be a focus of the Government's mining-related development assistance to Africa. AAMIG was invited to provide input to government on the direction of future capacity building assistance to strengthen the governance of the resources sector, which is the focus of Australia's aid program in relation to extractive industries in Africa.

AusAID is seeking to promote further consultation on how Australian stakeholders (Commonwealth and State government agencies, the mining industry, academia, non-government organisations) can work together to contribute towards improved mining governance; improved social responsibility in mining; and improved research and teaching capacity in selected countries

(4)   This question should be referred to the Foreign Investment Review Board (FIRB) which is responsible for examining proposals by foreign persons to invest in Australia and makes recommendations to the Treasurer on those subject to the Foreign Acquisitions and Takeovers ACT 1975 and Australia's foreign investment policy.

(5)   The Treasury, as the Secretariat for FIRB, consults relevant agencies, including DFAT, to seek comment or information on the investment proposal in order to prepare advice for the Treasurer.

(6)   DFAT provided advice to FIRB on 28 January 2011.

(7)   This question should be referred to the FIRB.

(8) The Government expects Australian mining companies operating in Africa to abide by local laws and standards and to conduct themselves in accordance with internationally recognised standards for corporate social responsibility, including the OECD Guidelines for Multinational Enterprises, the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones and the UN Global Compact.

This expectation is conveyed through regular industry outreach in Australia (including seminars targeted at the mining industry) on "trading with integrity", to highlight Australian laws applying to Australian companies trading internationally (including laws prohibiting bribery of foreign public officials). The outreach activities also encourage companies to adopt best practice principles, including the OECD Guidelines. Offshore outreach activities on the expectations and obligations of Australian companies also occur.

When providing assistance to Australian companies overseas, the Department reminds companies of their obligations to comply with local laws and Australian laws with extraterritorial effect. It also encourages Australian companies to seek legal advice in the jurisdiction in which it operates to help ensure companies properly observe the local laws.

(9)   The Australian Government expects all Australian mining companies to comply with the relevant laws of foreign jurisdictions.