Investment in African critical minerals is on the rise, with global entities acquiring assets, funding upstream projects and developing midstream and logistics facilities.
Over the past three years, Zambia – Africa’s second-largest copper producer – has recorded $10 billion in investments in its mining sector. These investments are pushing the country closer to its goal of increasing copper production to one million tonnes by 2026 and three million tonnes by 2030, with several new projects coming online.
To promote opportunities and drive fresh investment across African markets, the upcoming Critical Minerals Africa (CMA) Summit will feature a dedicated Investment Forum. This forum will delve into investment opportunities across the spectrum of critical minerals and rare earth projects, highlighting how African governments are partnering with global stakeholders to create an enabling environment for market expansion.
Zambia introduced the Mineral Royalty Tax Reform in 2022 – reducing mineral royalty rates for investors – resulting in a surge of fresh investments.
In June 2024, mining firm Jubilee Metals Group acquired two operational copper mines to support efforts to increase activities at its Sable Refinery in Zambia.
Canadian mining firm Ivanhoe Mines also announced it is investing in the expansion of a concentrator at the Kipushi Copper Mine, aiming to increase output to 960 000 tonnes of copper annually by 2030, up from 140 000 tonnes in 2024.
The UAE’s International Resources Holdings is providing $300 million to enhance copper production at Mopani Mines, following its acquisition of a 51% stake in a $1.1-billion deal in April 2024.
The Investment Forum will showcase lucrative prospects for global investors within Zambia’s copper value chain.
Meanwhile, Zimbabwe banned the export of raw lithium in 2022 in a bid to attract investments across the midstream sector to value add its lithium output. The regulation aims to help the country account for 20% of global lithium demand, build a $12-billion economy by 2030 and has resulted in an influx in new investments and project launches. As a result, mining revenue has grown from $3.5 billion in 2020 to $9.77 billion in 2023.
Mining firms including Rwizi Rukuru, Shengxiang Investments, Chengxin Lithium Group, Zhejiang Huayou Cobalt and Sinomine Resource Group have invested in large-scale lithium processing facilities in 2023 and 2024.
The Investment Forum will feature stakeholders from Zimbabwe’s critical mineral sector in panel discussions and exclusive networking sessions, highlighting investment opportunities across the mining value chain.
With the global demand for critical minerals set to increase by four times by 2030 – driven by increasing adoption of clean energy technologies – Africa, which holds 30% of the world’s total critical mineral reserves, is well positioned to attract global investors. South Africa holds 80% of the world’s platinum group metals, Morocco 70% of total phosphate, the Democratic Republic of Congo the world’s largest cobalt reserves, Guinea-Conakry the world’s second-largest bauxite reserves, and Gabon the world’s second-largest manganese resources. CMA will spotlight these resources and partnership opportunities available for global stakeholders as African countries unlock their full mineral potential for gross domestic product growth.
“Africa’s critical mineral resources present an opportunity for the continent to forge partnerships on infrastructure development and economic growth with global investors. We hope to see an increase in investments flowing into Africa as global mining stakeholders capitalise on the continent’s vast resources and strategic locations to feed the global demand,” states Rachelle Kasongo, project director at CMA organiser, Energy Capital & Power.
The Critical Minerals Africa 2024 Summit on 6 and 7 November serves to position Africa as the primary investment destination for critical minerals. The event is held alongside the African Energy Week: Invest in African Energy 2024 conference on 4 to 8 November, offering delegates access to the full scope of energy, mining and finance leaders in Cape Town. Sponsors, exhibitors and delegates can learn more by emailing sales@energycapitalpower.com.