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While the DRC dominates cobalt mining globally, 60% of cobalt processing occurs in China, while in 2022, Zambia exported US $6.6 billion in raw copper – most of which was sent to China. – Energy Capital & Power

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Sizwe sama Yende

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Africa’s abundant minerals for clean technology will be a talking point of the Critical Minerals Africa (CMA) summit that will be exploring ways of ensuring that the continent derives maximum value through local refining and manufacturing.

According to Energy Capital & Power – an African-focused platform for energy investment – the CMA summit scheduled for November 6 to 7, will also explore how Africa can also increase mineral exploration and extraction.

As a result of the global shift towards green energy technology to curb climate change, Africa stands a good chance of developing new industries and grow its economy because it has the so-called green minerals.

“Africa holds approximately two-thirds of global cobalt reserves, around 30% of lithium and significant shares of other critical minerals, including manganese, copper and iron ore,” Energy Capital & Power said in a statement.

Leading mineral markets on the continent include the Democratic Republic of Congo (DRC), which contributes over 70% of global cobalt production; Gabon, ranking second in global manganese production; and Zambia, recognized as the largest exporter of unrefined copper globally.

Zimbabwe ranks as the world’s third-largest exporter of chromium ore and holds the largest lithium reserves in Africa.

Green minerals, which also include nickel and the platinum group, are used in the making of electric vehicle batteries, solar panels and wind turbines.

The continent holds 91% of platinum group metals, 79% of phosphate rock, 53% of global cobalt reserves, 46% of manganese, 35% of chromite, 25% of bauxite, 21% of graphite and 6% of copper, according to the US Geological Survey.

Global demand for critical minerals essential for clean energy technologies, according to Energy Capital & Power, is expected to grow more than three-fold by 2030.

“For Africa – a continent rich in a variety of minerals – this highlights a strategic opportunity to bolster economic growth through mineral development.”

Despite Africa’s substantial resource base, challenges persist in value addition and processing. China is currently dominating the global mineral processing market, particularly in the production of lithium and cobalt.

China imported approximately US$10 billion (R182 billion) worth of minerals in 2019 from sub-Saharan Africa alone, underscoring the region’s reliance on foreign processing capabilities.

“While the DRC dominates cobalt mining globally, 60% of cobalt processing occurs in China, while in 2022, Zambia exported US $6.6 billion in raw copper – most of which was sent to China.”

Recent developments, however, aim to reverse this trend, with an influx of infrastructure investments and the introduction of policies that support domestic processing capabilities.

Last October, South African mining and minerals advisory firm Q Global Commodities partnered with investment firm F9 Capital Management to invest $1 billion in critical mineral production across southern and eastern Africa.

The venture, targeting lithium, copper and nickel production, aims to develop new processing plants and logistics infrastructure.

From a policy standpoint, Energy Capital & Power said, several African countries were implementing reforms aimed at encouraging local mineral processing and value addition.

“In 2023, Namibia and Zimbabwe banned the export of unprocessed lithium and other critical minerals, leveraging rising global demand for transition metals and minerals. Both countries aim to regulate these exports, with Namibia only allowing small quantities of the specified minerals with the approval of its Ministry of Mines and Energy, and Zimbabwe emphasising local battery-grade lithium production from concentrates.”