Africa – which holds 30% of the world’s critical mineral reserves – is witnessing a flood of investment, business and partnership agreements in the sector as the world’s largest economies vie for strategic control of critical minerals value chains. Here are the top five major critical mineral investments on the continent in 2023.
Japan and UK jointly invest in key African minerals
In September last year, Japan and the UK announced plans to jointly invest in Africa’s Critical mineral reserves to stabilize existing supply chains. The two countries will cooperate to develop mines in various African countries while developing a framework for establishing economic and energy security. In addition, Japan and the UK will acquire mines and develop local refining facilities, and work with mineral-rich African countries to diversify reserves and build local processing capabilities.
Q Global Commodities invests US$1 billion in South Africa
Independent commodities, logistics and investment firm Q Global Commodities last October partnered with investment fund manager F9 Capital Management to invest $1 billion in major mineral production in southern and eastern Africa. The new company aims to produce lithium, copper and nickel – critical minerals for the energy transition – in South Africa, Botswana, Zambia, Tanzania and Namibia. The companies plan to develop facilities and associated logistics infrastructure to allow the new company to go public once the mine is operational.
- EV watershed year paving way for billions in new investment: Champagne
- Eramet and Vibrantz announce manganese supply agreement
- Petra Diamonds Implements Board Restructuring to Enhance Efficiency and Cut Costs in 2024
- AngloGold to subscribe for G2 shares
- Metso to Deliver a High-Capacity Grinding Mill to Bomboré Gold Mine
China Mining Resources Group acquires Bikita lithium mine in Zimbabwe
In July last year, Chinese mining group China Mining Resources Group completed the US$180 million acquisition of the Bikita Lithium Mine, Zimbabwe’s largest lithium mine. The company will build a dilithium processing facility at the mine, which is expected to produce up to 300,000 tons of spodumene concentrate (a pyroxene mineral composed of lithium aluminum chain silicate) and 480,000 tons of lithium feldspar (a species of layered lithium aluminum silicate) mineral – per year. The acquisition furthers Zimbabwe’s efforts to cement its position as a regional lithium hub and China’s ambitions to develop new mining supply chains in Africa.
African Development Bank joins global partners to advance Lobito Corridor project
The African Development Bank signed a memorandum of understanding last October to mobilize resources for the implementation of the Lobito Corridor and Zambia-Lobito Transport Project, in partnership with the African Finance Corporation, the European Commission and the governments of Angola, the Democratic Republic of Congo, Zambia and the United States. .
The multilateral partnership will support the development of sustainable and resilient value chains for critical minerals and facilitate the movement of copper and cobalt supplies from Congo and Zambia to regional ports. The project is also significant because it underscores the U.S.’s strategic interest in Africa’s critical minerals as the country supports rail expansion in the corridor with an initial $250 million in funding.
Atlantic Lithium secures mining lease for Ewoyaa project in Ghana
Last October, lithium exploration and production company Atlantic Lithium secured an exclusive 15-year mining lease to develop Ghana’s first lithium project: the Ewoyaa project. The project, funded by Australian mining company Piedmont Lithium and Ghana’s sovereign wealth fund Minerals Income Investment Fund, includes a $185 million state-of-the-art processing facility.
The plant is expected to produce 2.7 million tonnes per annum of spodumene concentrate, with peak production reaching 2.6 million tonnes per annum over a 12-year mine life. The project supports Ghana’s efforts to establish itself as a leading critical minerals hub and is expected to become one of the top ten spodumene concentrate producing mines in the world.
