Australia targets Africa's mineral sector joins the race to invest in continent's solid minerals sector

AUSTRALIA has become the latest country to focus its attention on Africa as major investment destination and has decided to restructure its foreign policy to facilitate participation in the continent's mineral sector.

Despite being the world's poorest continent, Africa is mineral rich and accounts for a high percentage of raw materials which have not been developed to the benefit of its citizenry. Africa's share of the world's mineral resources can be broken down as platinum 69.4%, cobalt 60%, diamonds 56%, mineral fuels and petroleum 47%, manganese 38%, chromite 38%, phosphate rock 21%, gold 20%, uranium18%, copper 9%, bauxite 7%, aluminium 5%, coal 4%, cement 4%, iron ore 2%, lead 2%, graphite 2%, steel 1% and zinc 1%.

Traditionally, most African nations have been investment destinations for their former colonial masters, although of late, China has stepped up its presence across the continent. Conscious of the opportunities that Africa is now offering, Australia is seeking to join China, and Europe in the race to increase business footprints across the continent.

Australia's new position is aided by a new look foreign policy that emphasises partnerships with mutual benefits. Last week, Australia held an Africa Week in Perth, where it announced that it will push for mining, trade, education and cultural exchanges and technological advancement programmes in the coming years.

With the US, UK, China and India all making huge financial offers for projects, Australia is touting joint ventures. Under proposals being planned, Australia intends to share its technology with African countries that have mineral resources.

Arguably, Africa's mining sector holds the key for important technological developments as areas such as renewable energy, battery storage and communication technologies all rely on a robust mining sector to provide the raw materials. Western Australia’s mineral minister Bill Johnson, said that the country will now look closely at possible openings across Africa.

He added: “We are hoping to create greater economic and social opportunities for African countries and the people living in them. These opportunities can be made easier and more accessible through the increased access to technology that the world is creating.”

Former solid minerals minister Kayode Fayemi made it clear that his sector is a key area of expansion with regards to diversification. Since assuming office in 2015, the current government has said it wants to diversify the economy and end the dependence on crude oil as the sole source of government revenue.

Minerals contribute around 35% of Australia's exports as it is the world largest exporter of coal, accounting for 35% of international trade and also the number one supplier of iron ore, lead, diamonds, rutile, zinc and zirconium. Australia is also the world's second largest exporter of gold and uranium and the third largest aluminium exporter.

Mining accounts for about 5.6% of Australia's gross domestic product although in 1901 when the federation was formed, the figure was as high as 10%. Also, Australia ranks among the top four nations in economic resources for 21 primary industrial minerals, more than any other nation on earth.