MEDIA RELEASE
Released By:
Downer
I am pleased to announce that Australia will support the Extractive Industries Transparency Initiative (EITI).
EITI is a 'world first' initiative which promotes better governance in resource-rich
developing countries through the publication and verification of company payments from oil, gas and minerals. It represents an international coalition of developing countries, donors and multilateral organisations, extractive industry companies, investors, and civil society.
Through EITI, Australia will work with other international donors and multilateral organisations, including the World Bank, to provide funding and support for greater transparency and accountability in extractive industries. This is a practical example of how the Australian aid program will work in future to reduce corruption in our region.
Resource-rich countries which are subject to weak governance and conflict often fail to realise the benefits of their resource endowments. However, as the examples of Australia, Botswana, Chile and Canada show, natural resource revenues can be a force for sustained economic growth and social development.
Good governance and revenue transparency play an important role in improving the overall business climate in developing countries. It is appropriate that many resource sector companies have already committed to EITI including BHP Billiton, Anglo American, Chevron Texaco, ExxonMobil, Newmont, Rio Tinto, Shell, TOTAL and Woodside.
In the four years since its launch in 2002, more than 20 governments of resource-rich developing countries in Africa, Asia, Latin America, and Central Asia have signed up to the Initiative. Resource-rich developing countries in the Asia-Pacific, including Papua New Guinea, Indonesia and East Timor also have huge potential to benefit from EITI.
Australia will provide an initial contribution of $250,000 to the Extractive Industries Transparency Initiative this year.
Media contacts:
AusAID Public Affairs 0417 680 590
Tony Parkinson (Mr Downer's Office) 02 6277 7500