By Africa Links 24
Published on 2024-04-12 09:42:56
The 2024 annual mining conference in Toronto was a record-breaking event with a turnout of 26,926 participants. The hot topic of discussion at the conference was critical minerals, and Ray Goldie, the president of the Prospectors and Developers Association of Canada, highlighted Canada’s potential to lead the green transition as a responsible supplier of critical minerals.
One striking fact that caught the attention of participants was that many of these critical minerals are abundant in Africa. Africa boasts 30% of the world’s known mineral reserves and is a major source of minerals such as copper, cobalt, bauxite, manganese, graphite, coltan, and rare earth minerals essential for energy-transition technologies. Miguel Kashal Katemb, managing director of the Regulatory Authority for Subcontracting in the Private Sector of the Democratic Republic of Congo (DRC), estimated that his country alone holds over $20 trillion worth of unexploited mineral reserves, including significant deposits of coltan, copper, and lithium.
While the main conference discussions unfolded, a special sub-conference focused on Africa, organized by the Canada-Africa Chamber of Business and Mine Africa. This platform allowed for in-depth conversations and deal-making opportunities centered around African mining opportunities, showcasing established players as well as emerging talent from across the continent.
Canada, home to nearly half of the world’s publicly-listed mining and mineral exploration companies, is a significant investor in African mining. With $37 billion in Canadian mining assets in Africa, the continent ranks as the second-largest investment destination for the Canadian mining industry after the Americas. In the period between 2021 and 2022, Canadian mining assets in Africa saw a 4.9% increase in value, with countries like the DRC, Mali, South Africa, Tanzania, and Zambia witnessing notable growth in Canadian investments.
Despite Africa’s vast mineral wealth, the continent lags behind in global mining revenue, accounting for less than 5% of the total revenue in 2022. Industry experts like Peter Marrone, the CEO of Allied Gold Corporation, emphasized the need for increased investment and collaboration to unlock Africa’s mining potential. Marrone highlighted Africa’s young and tech-savvy demographic as a valuable asset that could drive the mining sector forward.
To address the disparity in mining revenue distribution, there is a growing emphasis on promoting local content in mining operations. African governments are implementing policies to ensure that processing facilities employ local workers, provide skills training, and add value to minerals before export. This approach aims to create local value chains that benefit communities and reduce poverty.
Several African countries, including Nigeria, are showcasing their mining potential to attract international investment. Canadian companies like DFR Gold are exploring opportunities in Nigeria for gold mining, highlighting the favorable geological conditions and business-friendly environment in the country. Nigeria’s focus on adding local value before export is attracting foreign investors, with initiatives like lithium-battery factories and exploration projects gaining traction.
As global powers vie for access to critical mineral resources in Africa, Canada is also reassessing its Africa strategy to align with the emerging African Continental Free Trade Area (AfCFTA). Canadian companies, like Allied Gold, acknowledge the geopolitical risks but remain focused on profitable opportunities on the continent.
In conclusion, the mining industry in Africa presents vast opportunities for growth and development, with the potential to drive economic prosperity and sustainable development on the continent. Increased investment, collaboration, and a focus on local content are essential to unlocking Africa’s mining potential and ensuring equitable benefits for all stakeholders involved.
