1. "Minerals for Development” (M4D) a Finnish initiative for transferring good practices to producing countries Prof. Elias Ekdahl, Director General Geological Survey of Finland TAIEX workshop on mineral resources Kyiv 19-20 May 2011

2. Elias Ekdahl 19 May 2011 Positive cycle Productive Capacities Economic Growth Poverty Reduction

3. Elias Ekdahl 19 May 2011 Transforming of natural resources to physical and intangible capitals: a #1 problem to solve Intangible Capital Physical Capital Natural Resources Capital SUSTAINABLE NON-SUSTAINABLE

4. Elias Ekdahl 19 May 2011 Value of metals, diamonds and uranium: local value-addition is necessary

5. Elias Ekdahl 19 May 2011 Terms of trade improvement 1980-2002: growing mineral production – reducing terms of trade !

6. Elias Ekdahl 19 May 2011 Flows of Seaborne Iron Ore Trade in 1960 - 2007: 121- 725 million tons Source: ThyssenKrupp Steel, Eurostat 11 exports in million tons 1 8 2 18.5 8.5 11 6.2 30 270 95 21.5 255 Three companies are controlling 71% of the seaborne iron ore trade: BHP Billiton, CVRD, Rio Tinto

7. Elias Ekdahl 19 May 2011 Iron ore: growing employment through refining Applied from: DTI South Africa (2010) workers/ton of iron

8. Elias Ekdahl 19 May 2011 Minerals value chain: 1-extractive, 2-value added Resources base Physical infra Capital Technology Fiscal revenues and reinvestment Employment Environmental & social performance Profits & New capital MOTORCATALYZER PUBLIC OBJECTIVES BUSINESS OBJECTIVES G ood governance Industrial policy Regulatory regime Information infrastructure Service institutes Human resources

9. Elias Ekdahl 19 May 2011 Finnish knowledge supply vs. partner countries´ demand

10. Elias Ekdahl 19 May 2011 … continued

11. Elias Ekdahl 19 May 2011 Supply of M4D: three segments Environment Licensing Laws & regulations Sector S&T+I strategy and link to NIS Code of Conduct Service capacity Geo-environmental information Mineral policy (part of industrial policy) Diffusion of lessons learned ”Cluster building” Economic linkages Fiscal opportunities Geo-information (map, lab & IT (”public good”) Demand and enable Governance: enhance social capital and infra OwnershipRegulationsSocial benefits modes: R&D, projects, analyses, recommendations, education & training which target:

12. Elias Ekdahl 19 May 2011 ZAMBIA / TANZANIA rich incentives, low fees limited benefits ZAMBIA / TANZANIA rich incentives, low fees limited benefits Improvents in mineral policies required ”converge but fit to local conditions” PERU/CHILE moderate incentives / considerable fees many benefits PERU/CHILE moderate incentives / considerable fees many benefits BOLIVIA/MONGOLIA demanding regulations benefit expectations high and rapid BOLIVIA/MONGOLIA demanding regulations benefit expectations high and rapid

13. Elias Ekdahl 19 May 2011 LOBITO DEVELOPMENT CORRIDOR NAMIBE DEVELOPMENT CORRIDOR MILANGE DEVELOPMENT CORRIDOR BAS-CONGO DEVELOPMENT CORRIDOR CENTRAL DEVELOPMENT CORRIDOR NORTHERN DEVELOPMENT CORRIDOR Fe ore Cu, Co, Mn Au, Ni, Co Fe ore Energy (HEP, oil, gas) diamonds Source: AU/NEPAD (2006) SDIs currently under consideration with AU/NEPAD mining is the planned “anchor industry”

14. Elias Ekdahl 19 May 2011 Thank You !