Canadian firms dominate mining activities in Africa – and have a bad human rights record

Few issues have generated as much heat in recent African affairs as China’s foray onto the continent.

Much has been made of the dragon’s insatiable hunger for the continent’s mineral wealth.

The breadth of Chinese involvement has focused minds in the West and provoked much media hyperbole.

However, at the same time, the Middle Kingdom’s great rival from North America has been active as well, though its activities seem not to attract as much attention.

No, I’m not talking about the US. Rather, the other North American superpower — Canada.

Yes, Canada. Soft, unassuming Canada dominates mining and mineral exploration on the continent.

According to the Ministry of Natural Resources Canada (NRC), only South Africa has more mining assets and investments.

And while the Rainbow Nation’s interest is concentrated, it is just ahead of Canada in the African mining industry.

While South Africa’s gold pot is to be found largely within its borders, by 2007, Canadian companies were active in 35 African countries and Africa represented 17 per cent of the total $85.9 billion in cumulative Canadian mining assets.

This year, the total value of Canadian mining assets in Africa is expected to surpass $21 billion compared to just $233 million in 1989.

The Canadian government has actively supported this expansion.

Since the 1990s, under the influence of industry associations, the Canadian state has implemented a comprehensive strategy to support the expansion of investments and activities abroad.

Fiscal measures designed to attract mining interests include tax deductions for expenditure incurred abroad and exemptions for profits repatriated to Canada.

According to its 2007 annual report, Export Development Canada, the government’s export credit agency, has supported projects totalling $22 billion worth of exports and investments in Canadian companies in the extractive sector.

Endowed with both minerals and a long mining tradition, Canadians are not exactly lacking in expertise.