africa: African Mining Codes Questioned

Ten years ago, in an attempt to improve its understanding of investment decisions in developing countries, the World Bank undertook a survey of 80 mining companies. The survey revealed that the main investment criteria, after mineral potential and existing infrastructure, was a satisfactory legal and fiscal framework. This message was enthusiastically embraced across Africa, and legal reform of the mining sector contributed to a more favourable environment for foreign investment. However, a recent study by Groupe de Recherche sur les Activités Minières en Afrique (GRAMA) at the Faculté de Science Politique et de Droit, Université du Québec à Montréal, concludes that these measures have entailed a redefinition of the role of the state that is so profound that it has no historical precedent. The study warns that the various reforms have the potential effect of driving down standards in areas of critical importance for social and economic development, as well as in protection of the environment in the countries concerned.