A shift in focus by global players towards African projects has created an opportunity for the continent to leverage new and existing regulations to attract foreign investment in mining.
According to Energy Capital & Power, global demand for critical minerals is projected to grow threefold by 2040, highlighting a strategic opportunity for mining producers in Africa to increase output and develop untapped mineral deposits.
Amid this backdrop, the Critical Minerals Africa (CMA) 2024 Summit will be taking place 6-7 November 2024 in Cape Town with a focus on policy frameworks, regulatory reforms, and best practices to help African critical mineral producers attract investment and meet global demand.
Rising demand has not only highlighted an opportunity for African producers to raise output, but redirect capital towards undeveloped segments of the domestic mineral market.
Tanzania has ceased the export of unprocessed lithium from 31 May 2024. The strategic policy aims to attract investment across the midstream sector in a bid to add value to the region’s lithium resources. Similar policies have been implemented in Zimbabwe, Mali, and Ghana, and have already led to the development of infrastructure across the mining value chain.
Zimbabwe has attracted more than $1.2 billion in new investment in its lithium industry between 2021 and 2023, including a $300 million investment made by Zhejiang Huayou Cobalt into a 450,000 metric ton lithium processing plant at Arcadia Mine in 2023.
In Ghana, in 2023 Australian company Atlantic Lithium (ASX:A11) announced a $185 million investment into a lithium processing plant at the Ewoyaa Lithium project in 2023. And China’s Ganfeng Lithium has increased its stake in phase one of Mali’s Goulamina Lithium project from Leo Lithium (ASX:LLL) and will start production at the project’s spodumene mine this year.
In addition to export restrictions, the implementation of regulation has streamlined investment in African minerals.
CMA 2024 seeks to discuss the adoption of investor-friendly policies with one panel seeking to connect African projects with global investors by providing deep insights into attractive policies, national objectives\, and strategic regulatory practices.
Organised by Energy Capital & Power, CMA is touted as the largest gathering of critical mineral stakeholders in Africa.
Write to Adam Orlando at Mining.com.au
Images: Leo Lithium
