Madam Anita Marangoly Geogre delivered a speech on the keynote session of CHINA MINING 2015
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| (Photo:Zhao Xinhao, Edit: Xu Xiaojing) |
| On the morning of October 21, 2015, the keynote session of CHINA MINING Congress and Expo 2015 was held at Meijiang Convention and Exhibition Centre of Tianjin. Leaders of the industry and economists gave speeches centering on New Normal, New Opportunities, New Development. This is a scene that Madam Anita Marangoly Geogre, Senior Director of Energy and Extractives of the World Bank Group, delivered a speech with the topic “Global trends in mining and contribution of sustainable mining practices to international development”. |
The Hon. Ministers, H.E. Ambassadors, Leaders of Tianjin Municipal Government,
Distinguished Guests, Ladies and Gentlemen,
Good morning!
I am grateful for being invited to the CHINA MINING 2015. This is my first CHINA MINING, so I feel very happy.
Concerning New Normal, New Opportunities, New Development, we, the World Bank, mainly focuses on New Development, because new development could release the potential of mining industry and realize sustainable development. In the coming days, we will have chances to exchange our views, compare experience and reach consensus on regional mining development. There are several billion people in the world who only had less than 2 dollars every day for life. As we all know that good mining management would release huge development potential. If the management is poor, it will hinder economic development. Therefore, our goal is that we should ensure mining industry as a promoting power which will increase development speed instead of lagging it behind.
There are over 6,000 mining enterprises, including several Fortune 500 enterprises. As a global industry, it hires 2.5 million people. According to the survey of International Council on Mining and Metals, if low and middle income countries have rich natural resources, mining will cover 60% to 90% of their FDI. 30% to 60% of exports are mining products, and sometimes 20% of national income come from mining industry and even 30% of the GDP come from mining in some countries. More importantly, about 1% to 2% of people are employed by mining industry. So, mining industry should not be neglected when concerning sustainable development.
Nowadays, facing climate change, we regard sustainable development as the most important topic. Seeing the low price of goods, we will ask a question that what is mining industry? Mining industry is a booster of sustainable development as well as an obstruction. I am pleased to participate in this discussion in which people shares best and practical measures. It is especially important for 1.5 billion people who only had less than 2 dollars every day for life. We discuss here about how to give better education and employment, how to start small and micro businesses. Mining industry also provide employment, health and sustainable environment for women. I am glad that if we make mutual effort, we will eliminate poverty. Eliminating poverty is the mutual goal of the World Bank Group, meanwhile, for developing countries we are an unique partner.
The World Bank Group contains five organizations, 189 members as directors, including China. Established in 1944. The head-quarter of the World Bank is located in Washington, DC, USA, with more than 10,000 staffs and 120 offices. As a bank who provides loan services, we give loans with low interests, even without interests. We offer international development aid loan or grants for developing countries in order to support investment in public education, administration, infrastructure, agricultural and environmental management and management about natural resources. Some projects are co-invested by local governments or other multilateral organizations, banks, export organizations, and private investors. In the morning, Mr. Minister mentioned this kind of partnership. The World Bank believes that the realization of New Development and sustainable development should rely on this partnership. This is the second function that the World Bank offered consulting service for our member countries. Research, cooperative and technical support and guidance are offered to developing countries. We provide investment chances, support development priorities of developing countries, and assist them in improving construction ability. We also host relevant conferences, so we ae a supporter of CHINA MINING 2015 as well.
In order to ensure countries with the best measures and the newest technologies, the World Bank Group is searching for different methods and changing ways of sharing technologies from the perspective of countries and peoples. The World Bank was told by many countries that although they were in demand of capital, they starved for support and successful experiences. Therefore consulting opinions given by the World Bank are of value. We are making effort to improve our service, for example how to design project, how to give information and support, and how to meet the requirement of member countries. We have a focal project, an open development, which offer free and easy-to-get instruments for people to search and solve development challenges. For instance, there is an open data website which contains related successful experiences of different countries. Countries can download those experiences from the Internet. Outcomes of annual conferences of countries and monetary funds are conveyed on time to every part of the globe through the World Bank Online. This is what we can do better. It meant that if we offer more information we will gain better partnership and share more important and practical experiences so as to give better service.
We endeavor to realize two goals of the World Bank. First, we will eliminate poverty and enhance mutual prosperity. The World Bank quests for development in many aspects. Currently, 39 countries have this kind of projects which strengthen management in terms of mining industry. How can we do? In principle, we supply consulting service to governments. First of all, their payment should be transparent and the right of mining given to them should be fair and just. We will help them to manage their income, so the income can share with local residents and the poor. Mining industry should respect the need of local community and the surroundings. As an assistant of the World Bank, International Financing Company offers loans or participated in investment as participation unit to re-develop the potential. International Financing Company has 500 million dollars, located in many countries. Together with the United States, the World Bank forms a group which mainly consider how to share resources when serving member countries. We give suggestions in communications to many governments, at the same time, we learn experiences from them and take advantage of chances.
Ladies and gentlemen,
China spend 34 billion dollars, a shocking number, to support mining industry. After listening to the speech of Ambassador of Peru to China, we find that 54% of Peruvian products are mining products and Chinese enterprises take 37% of their mining right. China’s investment which is closely related to the life of Peruvian people in macro scale or in single field is very important to this country. It is also important for many other developing countries. Chinese investments are dynamic in those countries. Many Chinese mining companies are taking steps which will be beneficial to the improvement of people’s life and better management. As least 90 Chinese companies will pay related governments.
They joined in EITI, a payment transparency project. We would like to take this opportunity to praise new policies of Chinese government. I believe that these policies will encourage investors and companies to operate in foreign countries so as to decrease their environmental pressure, including green-credit policy and environmental protection guideline. The green-credit policy requires Chinese banks not to invest in heavy pollution and high energy consumption industries but support companies with low emissions and high efficiency. We believe that this policy will guide Chinese companies to sustainable investment so as to generate sharable benefits, including domestic benefit and benefit from emerging economies.
Dear guests, considering your operation, you will see that sharing interest will help to general development and poverty elimination. Over the years, we cooperated with Chinese banks and international banks. The World Bank Group raise awareness and understand global standard, including the principle of fair. The World Bank makes efforts to help banks evaluate environmental effect of their investment projects. Industrial and Commercial Bank of China became the first participant in 2008, and we hope that other Chinese banks will join this project. Internationally, banks from 80 countries and regions joined this project.
Talking about the situation of global mining industry, New Normal means that mining products are decreasing in price, which brought difficulties to developing countries with rich resources. Many projects which are going to start are cancelled or postponed. Projects that are going to be expanded are stopped. Many projects in Malawi and Peru are suspended. It brings great influence to the economy and to people’s life. They relies on this income, but many jobs are cancelled. Relevant infrastructure construction is stopped too. It deserves our careful survey. We will analyze the future, conduct reform, manage efficiently, benefit local communities under the circumstances of low income. It is high time that we focus on innovation, cost decrease, and recycling. We will adhere to long-term goals, and stick to good public management which would boost better investment from private sectors.
With low returns, the capital target expectation is low too. Presently, companies and countries awere the same. Stable investment is beneficial to them. Clear mining right is advantageous, and transparent management is important. With weak, imperfect, unstable management and without honesty, the risk will be high. The World Bank is in favor of this kind of effort, and we hope that there will be sound managerial arrangement. We will make reasonable and transparent rules as well as accountability system. Working as a bridge, the World Bank gives suggestion to governments, provides private sectors with stable and predictable background. It will enhance the prospect of all shareholders. We work together with countries to promote transparent principle and constant policy. Good taxation and national financing policies are constant and transparent measures that will attract the society.
This morning, Mr. Minister and Mr. Ambassador both mentioned that citizens should participate in the fair share of interest, which is beneficial to strengthen the relationship between communities and companies. Transparency will decrease the risk of private sectors so that a more stable environment can be built. For example, in Myanmar we developed an effective and transparent framework with local government to manage mining right. EITI holds open talks in many aspects and offers a platform for discussing mining. The other example is that in order to ensure civilian participation in mining industry, local suppliers should invest in local people for joining mining. It not only gives job opportunities to local citizens but also decreases the cost. Investing in the skills of local people help to find better workers in the future and at the same time brings benefit to communities. The World Bank is pleased to make it come true together with mining companies.
In Guinea, private industrial sectors and financing companies are conducting a local supplier development project which will bring better management and cultivate working skills of workers. In the future small companies will become suppliers for big companies. Because infrastructure in community level can bring huge benefits, such as water or education, if they are improved, local economy will be improved too. As we can see that many Chinese investors cooperate with local governments in developing infrastructure. Infrastructure is of great importance to local people and is beneficial to the development of mining companies. We have experience in this aspect. According to recent research conducted by the World Bank, some documents that contain experience in terms of investing in infrastructure can be shared with you.
In Sub-Saharan Africa, we pay special attention to infrastructure built by mining companies. Mining industry in Africa requires electricity, and in the process of electricity supply, local communities and people gain access to electricity too. In this way, these companies become important power suppliers for national economic development and obtained great trust from citizens and governments. It is beneficial to overall development, and this kind of partnership can be copied. With interest, both mining companies and governments would like to improve local electricity supply when establishing grid.
A practice which I think it is advisable is that mining projects will give consideration to women. With low income from mining industry, women usually can not enjoy this industry. In some countries, women can not get 90% of the profit. If women in mining areas are helped with awareness, children are educated and provided with good healthcare, it will bring huge benefit. Furthermore, if the employment is balanced in gender, the company will gain profit. The World Bank, mining companies, private sectors, and governments have several projects in many countries, including Papua New Guinea and Congo. Women will have equal saying in community’s decision making and sharing mining achievement.
Interestingly, if you pay attention to 17 sustainable development goals which are newly approved in the global community you will find that the mining industry will exert positive influence on these goals. Reducing water deficiency and carbon footprint will be more efficient in energy utilization. By 2030, the realization of sustainable development will require close cooperation between public and private sectors. I think it is a challenge for countries and the mining industry. Please regard it as an opportunity which will be a promoter and booster for sustainable development and sharing outcomes with mankind.
At last, I would like to reclaim important information to this majestic conference. Establishing just and good managerial structure will guarantee sustainable achievement of investment and production of private sectors. I notice that several African ministers participate in CHINA MINING. In building up public management, we can cooperate with each other. It not only contributes to their resources development, but also produces healthy and prosperous communities. In my opinion, doing business is good because it generates profit and bring wellbeing. It is a future prospect. We are looking forward to cooperation and eliminating poverty from the most vulnerable group of people.
Thank you!
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2015 will be held at Meijiang Convention and Exhibition Center in Tianjin on October 20th-23rd, 2015. We invite you to join the event and to celebrate the 17th anniversary of CHINA MINING with us. For more information about CHINA MINING 2015, please visit: m.balanzskin.com.
