Sources: AMHOF, Dulue Mbachu, African Business
Toronto Annual Mining Insight:
The 2024 annual mining conference in Toronto, celebrated as the world’s premier mining event, recorded an unprecedented attendance of 26,926 participants. Critical minerals dominated discussions, spotlighting Canada’s role and Africa’s vast resources.
Africa – A Treasure Trove of Critical Minerals:
Ray Goldie, president of the Prospectors and Developers Association of Canada, emphasized Canada’s strategic position in the green transition, fueled by Africa’s mineral wealth. “It is imperative we bolster our critical mineral wealth,” Goldie stated. Africa, home to 30% of the world’s mineral reserves, leads in the supply of essential minerals like copper, cobalt, and rare earth elements, critical for modern technologies.
The DRC’s Untapped Wealth:
Miguel Kashal Katemb, from the DRC’s Regulatory Authority for Subcontracting in the Private Sector, highlighted the DRC’s untapped mineral resources valued over $20 trillion. The nation is a key player, contributing 70% to global cobalt production, pivotal for electric vehicles and energy storage systems.
Focus on Africa at the Conference:
A special session dedicated to Africa, organized by the Canada-Africa Chamber of Business and Mine Africa, facilitated discussions on mining investments and partnerships across the continent. This platform proved vital for both seasoned players in African mining and new entrants eager to explore the continent’s potential.
Canada’s Investment Footprint in Africa:
Canada hosts nearly half of the world’s publicly-listed mining companies, with significant investments in African mining valued at $37 billion. Notable increases in Canadian mining assets were recorded across several African countries, emphasizing the continent as a prime investment location for Canadian miners.
Challenges and Opportunities for Africa:
Despite its rich resources, Africa captures less than 5% of global mining revenue. Peter Marrone, CEO of Allied Gold, pointed out the necessity for increased investment to match Africa’s demographic boom and burgeoning tech-savvy workforce. “Africa-focused mining enterprises must unite with local governments to unlock these unparalleled opportunities,” Marrone advocated.
Local Content and Value Addition:
The conference also highlighted the critical need for local value addition. Government officials and industry leaders discussed the importance of establishing local processing facilities to create jobs, develop skills, and retain more value within the continent.
Nigeria’s Emerging Mining Sector:
Nigeria, for decades known as Africa’s top oil producer, was also at the Canadian mining event, touting its potential in gold, lithium, uranium and several rare earth metals. Canadian companies have taken up the challenge, including DFR Gold, which is prospecting for gold in a joint venture with PW Mining, a unit of Nigeria’s BUA Group. The reason for the company choosing to invest in Nigeria is that it has a favourable geology for mining, according to DFR Gold chief executive Brian Kiernan. Highlighting its diverse mineral portfolio, Nigeria showcased its gold, lithium, and rare earth potentials. Initiatives like the lithium-battery factory by Shenzen LEMI Technology and exploration by Orosur Mining underscore a shift towards local value creation before export. In a recent policy pivot aimed at bolstering domestic value addition and attracting investment, the Nigerian government declared a new directive that mandates mining companies to commit to local processing of minerals to be eligible for mining licenses.
Indeed, Nigeria isn’t the only country emphasizing value addition within its mining sector. Burkina Faso, Mali, Ghana, and Uganda have all implemented similar policy shifts over the past year, aiming to enhance local processing and increase the retention of benefits from their natural resources. These policy changes are part of a broader trend across Africa, where nations are seeking to boost local industries, improve job creation, and sustain economic growth by adding value to their mined resources before export.
Global and International Perspectives:
The gathering also reflected on global dynamics, with Canada reassessing its Africa strategy in light of new geopolitical realities and the African Continental Free Trade Area. “Despite geopolitical risks, the impressive returns should be our focus,” remarked Marrone, highlighting the enduring allure of Africa’s mineral wealth for global investors.
This year’s conference not only set a new benchmark in attendance but also redefined the strategic dialogues shaping the future of mining in Africa and beyond, reinforcing the continent’s pivotal role in the global transition to a more sustainable and technologically driven economy.
