Today BRR Media speaks with Eric Fethers, he’s a Partner in the Energy and Resources team at Middleons in Perth, but he’s dialling in all the way from Cape Town in South Africa where he’s attending the INDABA Conference.  Welcome to BRR Media Eric.

Thanks David.

And Eric just to kick off, first day at INDABA, what are you hoping to achieve at the conference?

David as a corporate lawyer based in Perth, with a focus in the mining, energy and resources sectors, many of my clients have investments in Africa, or are looking to invest in Africa, so INDABA’s an excellent opportunity for me to meet up with existing and potential clients, sharpen my knowledge on the current issues and trends of investment into the various jurisdictions in Africa.

Well just looking at those issues and trends, what are the major challenges that you’re seeing for Australian mining companies that wish to invest in Africa?

David the non-legal challenges are well documented and known, there’s obviously political risk, infrastructure constraints, security, fuel and equipment shortages in various countries.  From a legal perspective, to give tenures of real issues that investors often face when initially negotiating an acquisition of an interest in mining assets, so unlike in the Australian jurisdictions, many African jurisdictions don’t have a register of mining tenements that can be easily searched to ascertain ownership and whether a tenement’s in good standing.  Also negotiating the regulatory structure is a real challenge in each of the jurisdictions.  Investors need to understand the regulatory structure for a deed of operations and what it says about the rights and obligations, so investors by way of example need to understand whether the conduct of exploration or mining activity to regulate it by way of an agreement, with a relevant African government, and the tenement holder and if so what the terms and conditions that apply.  Also whether or not the relevant African government is able to acquire a commercial interest in mining tenements or in any mining projects.

Well in terms of the conference itself, what are the major trends or themes that are in discussion?

I’m sure David that the global economic outlook will be a key theme, I’m particularly looking forward to hearing from Barry Eichengreen, who’s a former senior policy adviser to the IMF and US and China economist David Hale.  Of course when advising in the mining industry, particularly producers or near term producers as Middletons does it’s really important to understand demand drivers for minerals, so these macro-economic presentations, together with separate presentations on outlooks for the various minerals are a great source of information.

And just finally you’re taking part in Austrade’s Australia Lounge, can you tell us what that’s all about?

So from an Australian perspective there’s about 230 Australian mining and oil companies, three quarters of them from Western Australia or based in Western Australia, holding around 650 projects spread across 43 African nations, for a combined investment of more than $20 billion, so Austrade’s recognised this and created the Australia Lounge is a way for Australian companies doing business in Africa to group together in one place.  The important thing as an Australian Lounge participant I’ve got the opportunity to network with African policy makers in the African countries where my clients have interests or are seeking to invest, so access to the Ministerial lounge, so this means when advising clients investing into Africa we have people on the ground that we can speak to.

Well some good insights there and all the best at the conference Eric.

Thanks David.

That was Eric Fethers, Partner in the Energy and Resources team at Middletons in Perth.  Listeners if you have any questions for Eric, please send a message using the panel on your screen or otherwise email through to brr@brrmedia.com.