African governments are stepping up efforts to process more of their minerals domestically, drawing increased investment interest from China, the US, and multilateral lenders.
Reuters reports that countries, including Guinea, are pushing beyond raw-material exports into refining and processing, using mining rights, tax incentives, and export restrictions to encourage investment. However, inadequate and expensive power remains a major constraint.
Guinea, the world’s largest bauxite exporter, is targeting as many as five alumina refineries by 2030 as part of plans to retain more value from its mineral production.
The broader push comes as China and the US expand their involvement in African mining and critical-minerals supply chains.
Chinese President Xi Jinping said during talks with Botswana President Duma Boko on 13 October that African resources should primarily support African development and should not become tools of geopolitical rivalry.
Xi called for greater local value-add, technology transfer, new financing models, and mining development plans tailored to African economies. China would also encourage its companies to expand green technology and processing capabilities across the continent, according to China’s Ministry of Foreign Affairs.
Meanwhile, the US International Development Finance Corporation (DFC) is also increasing its exposure to African critical minerals.
DFC has more than US$3 billion ($4.30 billion) committed to critical-minerals projects and related infrastructure in Africa and plans to expand direct equity investment in the sector, Reuters reported earlier this month.
Its portfolio includes rare earths, graphite, and infrastructure such as the Lobito Corridor, which links copper and cobalt-producing regions in Zambia and the Democratic Republic of the Congo with Angola’s Atlantic coast.
Multilateral development banks are also increasing support for mineral-rich developing countries to move further into processing, refining, and manufacturing rather than relying solely on raw-material exports.
(with files from Reuters)
Write to France Pinzon at Mining.com.au
Main image: Ministry of Foreign Affairs People’s Republic of China
