Australia releases report on mining development in developing countries

The Australian government has released a report on how developing nations can be assisted to sustainably develop their mineral and energy resources, the ministry for resources and energy announced Friday.

The study, conducted by Geoscience Australia and commissioned by AusAID, details the mineral and energy resources of 138 developing countries, including insights about other factors that can influence investment such as political, operational, security and terrorism risks.

The report provides crucial background information for Australia's Mining for Development Initiative, initiated in October 2011 to help developing countries use their natural resources to provide economic and social benefits to their people.

Many of Australia's development partners are endowed with substantial mineral and energy resources that could propel them on a path to inclusive and sustainable development, said Resources and Energy Minister Gary Gray.

"Supporting the progression of this sector in developing nations assists poverty reduction and accelerates economic development by increasing government and community revenues and this revenue can generate jobs and improve infrastructure," Gray said.

"Poor management of resources can initiate a wave of economic stagnation, corruption, and conflict -- resulting in what is known as the 'resource curse'," he added.

Australia wishes to share its skills and knowledge to help developing countries to utilize the wealth buried under their feet, stimulating growth and leading to a reduction in aid dependence, said Gray.

"Australia is a world leader in using environmentally responsible mining practices, and one of the world's largest exporters of minerals and energy commodities."

"Australian development assistance can assist developing countries grasp the opportunities afforded to them through mining, " the minister said.

"When developing nations have improved understanding of their often substantial mineral and energy resource potential, better skilled workforces and stronger governance practices, the likelihood of attracting mining exploration and investment is vastly improved," Gray added.