[ad_1]
Global demand for critical minerals is projected to grow three-fold by 2040, presenting a strategic opportunity for African producers including Zimbabwe to increase output and the development of untapped mineral deposits.
Zimbabwe has been working to grow mining to a US$12 billion industry, supported by its vast mineral resources especially gold, platinum, lithium and ferrochrome, which should anchor economic upturn and the country’s Vision 2030 of becoming an upper middle-income economy.
According to Energy Capital & Power (ECP), a shift in focus by global players towards African projects has created an opportunity for the continent to leverage new and existing regulations to attract foreign investment in mining.
Zimbabwe, for instance, has attracted over US$1,2 billion in new investments in its lithium industry between 2021 and 2023, including a $300 million investment made by Zhejiang Huayou Cobalt into a 450,000 metric ton lithium processing plant at Arcadia Mine in 2023, according to the ECP.
In Ghana, Australian firm Atlantic Lithium announced a US$185 million investment into a lithium processing plant at the Ewoyaa Lithium project in 2023 while China’s Ganfeng Lithium has increased its stake in phase one of Mali’s Goulamina Lithium project and will start production at the project’s spodumene mine this year.
It is in light of these developments that the Critical Minerals Africa (CMA) 2024 Summit – taking place November 6-7 in Cape Town – will host a ministerial panel session, discussing policy frameworks, regulatory reforms and best practices to help African critical mineral producers attract investments and meet global demand.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
“Rising demand has not only highlighted an opportunity for African producers to raise output, but redirect capital towards undeveloped segments of the domestic mineral market. Policy is already being leveraged to achieve this,” said ECP. Notably, Tanzania ended the export of unprocessed lithium last month. The strategic policy aims to attract investments across the midstream sector in a bid to add value to Tanzania’s lithium resources.
“Similar policies have been implemented in Zimbabwe, Mali and Ghana, and have already led to the development of infrastructure across the mining value chain,” added ECP.
In addition to export restrictions, the implementation of regulation has streamlined investments in African minerals, enhancing investor certainty and clarifying contractual terms for foreign companies. Examples include Zambia’s Mineral Regulations Commission Bill of 2023, Angola’s Privatisation Programme, Mali’s Mining Code of 2023, the Democratic Republic of Congo’s New Mining Code of 2018, and many more.
These policies have improved the enabling environment for investment and are poised to attract a fresh slate of regional and global mineral companies.
The adoption of investor-friendly policies has already proven instrumental in attracting capital to African mining projects and the CMA 2024 ministerial panel will further unpack the role policy plays in turning ambition into action.
Titled, Empowering Africa’s Critical Minerals Industry for Global Leadership, the CMA panel will connect African projects with global investors by providing deep insights into attractive policies, national objectives and strategic regulatory practices.
[ad_2]