Enabel commits to sustainable and inclusive mining in Africa

The Belgian agency for international cooperation wants to participate in the development of responsible industrialisation through mining, with a focus on decent work, local added value, and mutually beneficial partnerships. Not only to diversify the supply of critical raw materials in the EU, but also to ensure that mining countries themselves obtain as much benefit as possible.

We have previously highlighted how our FPS plays an important role in securing access to critical raw materials, including by diversifying supply. In so doing, we respond to the EU's Critical Raw Materials Act, and more recently the RESourceEU Action Plan which aims to further accelerate this access.

In order to facilitate access to crucial raw materials, we rely on a range of tools and partners. One of these is Enabel, which already has various mining-related activities to its credit.
 

Tax revenue from mining

In DR Congo, for example, Enabel is assisting the Ministry of Finance to prepare a roadmap 2025-2027 for the financial management of mining and oil reserves. Traditional mine workers there were given training on their labour rights and safety. In addition, Enabel has supported the labour inspectorate and strengthened trade unions.

In the Katanga region in Congo, Enabel jointly set up training centres that provide technical training, internships, and dual apprenticeship programmes focused on the mining sector. Local governments in Uganda have received support to manage tax revenues from mining royalties.

And in Tanzania, Enabel wants to encourage responsible investment in the mining sector, within a European framework. The focus is on bringing local mining companies, investors, and European buyers together.

Environmental and social problems

All this mining experience is worth its weight in gold today. The EU has no rich sources of raw materials to rely on. At a time when raw materials are in huge demand: for the green and digital transition, for defence and space.

Africa - where Enabel is primarily active - has a tremendous amount to offer in this regard. The only problem is the numerous environmental and social problems associated with mining and trading ores. Not to mention the management challenges - especially financial and others - that come with mining. Moreover, trade in raw materials should be organised within the framework of solid, transparent, and mutually beneficial partnerships.
 

Sustainable mining clusters

Enabel can draw on its experience to help build sustainable and inclusive mining clusters that leverage responsible industrialisation. Responsible in the sense that industrialisation goes hand in hand with local added value and respects ESG values: Environment (as environmentally friendly as possible), Social (no child labour, decent employment with dignified working conditions, etc.) and Governance (good governance, transparency, inclusiveness, and efficient tax collection).
 

Recommendations

In a recent position paper, Enabel identified a number of areas of action where an agency for international cooperation could add value to mining as a driver of economic growth and sustainable development. The agency identifies 4 domains that can make a contribution in this regard.

• Good governance, regulatory framework, and transparency
  
  The exporting country must be able to 'collect more, spend better' when it comes to tax revenue. On the one hand, tax authorities must be able to tackle tax evasion, better control trade prices, and so on. On the other hand, better development planning, budgetary transparency, and suchlike mean that revenues can be better spent.
  
  A stronger legal framework can also help. For example, to establish public-private partnerships and issue public contracts. Better geological expertise means that the subsurface can be accurately assessed, strategic resources are more easily identified, and extraction is as sustainable as possible.
   
• Structuring the economic fabric and supporting the private sector
  
  Partner countries deserve support if they want to start up mining and local processing projects. Part of this could involve looking at opportunities to supply goods and services locally. In any case, there is a need to carefully screen mining companies participating in projects (due diligence): environmental aspects, good governance, creditworthiness, etc.
  
  Traditional and small-scale mining can be supported, with a view to higher productivity, higher incomes for miners, better working conditions (health and safety, etc.), and so on.
   
• Sustainable development and social responsibility
  
  This section includes aspects such as support for remediating mining sites - to restore ecosystems, reduce environmental impact, etc.-, strengthening the circular economy in mining - including battery recycling-, better social protection for mine workers, etc.
   
• Infrastructure
  
  A well-functioning mining industry also needs transport and energy infrastructure. That means there also needs to be a focus on developing ports, roads, and railways - the so-called corridors - in addition to expanding energy production and distribution networks.

With this holistic approach, Enabel profiles itself as an interesting partner to secure and diversify the European and Belgian supply of critical raw materials. At the same time, the agency makes every effort to ensure that the mining countries themselves also obtain as much benefit as possible from mining activity.

In a subsequent article, we will discuss other mechanisms that can help ensure access to crucial raw materials.