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Boris Ivanov, Emiral Resources Ltd, UAE, provides insight into the potential for Africa’s mining industry to drive economic growth and development on the continent, and in the global energy transition.
frica is endowed with abundant mineral resources, including: gold, silver, copper, uranium, cobalt, and many other metals which are key inputs to manufacturing processes around the world. The mining and extractive sector has contributed (and continues to provide) a significant share of Africa’s annual exports, revenue, and GDP. In 2019, minerals and fossil fuels accounted for over a third of exports from at least 60% of African countries.1 Clearly, the mining and natural resources sector is critical in driving economic growth and development on the continent. Africa is thought to have some of the largest remaining untapped reserves. Given the lack of systematic geological mapping and exploration, the full extent of Africa’s mineral base remains unknown, even though the race for the continent’s mineral wealth has been raging for over two centuries. Today, mineral exploration and production are helping to redefine geostrategic relationships between Africa and the rest of the world, as the major emerging markets – namely, China, Brazil, and India – are increasing investments in Africa’s resources. Growth in Chinese investment is particularly visible. Excluding 2020, which was affected by the pandemic, annual Chinese budgets directed to exploration in Africa over the past decade has been an average of US$75.5 million. Africa accounted for 12.3% of Chinese companies' total exploration budget in 2020, up from 8.1% in 2011.2 Furthermore, as concerns about global climate change continue to fuel transitions to renewable energy, Africa is poised to benefit since the continent is home to reserves of many of the metals and minerals critical in clean energy production. Demand for these minerals is expected to increase substantially in the near future, because they are required in the production of batteries, wind turbines, and solar energy. Even though global climate change presents some challenges to the mining industry, it also creates an opportunity for investors to benefit from increased global demand for minerals required for this transition to clean energy.
global mining review // january/february 2022
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