Australian investments on African mining projects have already reached a high of $20 billion while local resource firms with exploration interests in the continent and listed in the stock exchange had jumped from 2003's level of 54 into its present size of 160.

According to Department of Foreign Affairs and Trade Secretary Dennis Richardson, 20 companies with ASX listings entered the African mining operations this year as he added that "the growth of this investment has been impressive, both in absolute numbers and in geographical spread."

Speaking before the Paydirt Africa Down Under conference held in Perth on Wednesday, Mr Richardson added that some 170 Australian firms are now conducting mining projects in about 40 African countries, resulting to a total of 500 mining and exploration projects.

He attributed the rising Australian investment to the relative political stability seen in the continent for the past few years but more improvements must be implemented by its governments to attract further infusion of mining funds.

Mr Richardson said that more works would be required of the continent "in order to raise capital and bring projects to fruition, legal and regulatory clarity and transparency will be essential, especially when it comes to mining titles, leases and licences."

A global survey of mining companies conducted by the Fraser Institute in Canada showed that Botswana, Ghana, Tanzania, Namibia and Zambia came on top of the list of preferred destinations for mining investments.