23 May 2013

Mining for Development Conference in Sydney, Australia

Representatives from more than 60 countries, including Papua New Guinea, are attending two conferences in Australia this week examining Mining for Development (M4D) and the Extractive Industries Transparency Initiative (EITI).

The M4D Conference in Sydney from 20-21 May examined how mining can lead to better social outcomes, including health and education services, how conflict with local communities can be avoided and the importance of women in decision making.

Australia has a long track record of extracting natural resources and is using this experience through the International Mining for Development Centre to help developing countries make their mining industries more sustainable and efficient.

PNG has rich mineral endowments including gold, copper, nickel and oil, and is host to a number of world scale mining and resource projects.

The mining and petroleum sector accounts for the bulk of PNG’s exports, amounting to 25 per cent of government revenue and 19 per cent of GDP. At the request of the Government of PNG, Australia is providing technical expertise to help PNG ensure the transparent and effective management of resource revenue flows through the establishment of PNG’s Sovereign Wealth Fund.

Since committing to explore the Extractive Industries Transparency Initiative (EITI) in late 2009, the PNG Government has made huge progress in working through the options and elements of EITI. Australia congratulates the PNG Government’s decision to seek candidate status in EITI.

The EITI was established by former UK Prime Minister, Tony Blair, in 2002 and 37 countries have signed up to date. The EITI conference will host representatives from more than 90 countries, including heads of state and resource ministers.

Following the M4D Conference, the EITI global conference from 23-24 May brings together governments, NGOs and representatives from some of the world’s largest mining companies to encourage more transparency in the payments mining companies make to foreign governments.

Australia is one of the top three donors to EITI. The Chair of EITI, Rt Hon Clare Short said: “Australia is demonstrating that extraction of natural resources can be an important vehicle for economic growth where coupled with transparency and good governance.

“Australia's commitment to improving governance in this sector is evident by the launch of the Mining for Development initiative and its strong support of the global EITI transparency standard.

“Australia is also leading by example and implementing an EITI pilot. We greatly appreciate the support from the Australian Government in hosting our 6th Global Conference,” Ms Short said.