China is shifting its focus from trading critical minerals with the US to strengthening its ties with BRICS, a group of developing nations. This move would provide BRICS members with access to a wide range of mineral resources and processing facilities, reducing their reliance on the West. The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, was founded in 2008 as an alternative to the US-led international order. It now accounts for a significant portion of the world’s GDP and population. During the recent BRICS summit, leaders discussed energy, trade, and the expansion of their horizons.
South Africa, as a member of BRICS, emphasized the importance of Africa’s interests within the group. President Cyril Ramaphosa highlighted the opportunities for participating in the African Continental Free Trade Area and promoting local production and services. The African continent is rich in minerals such as gold, chromium, titanium, platinum, cobalt, zinc, copper, oil, and natural gas. Governments have been implementing restrictions on mineral exports to encourage processing and retain profits from finished products.
While several countries have expressed interest in joining BRICS, Nigeria did not attend the recent summit due to administrative delays. However, there is still an opportunity for Nigeria to apply for membership in the future. The ongoing geopolitical tensions between the US and China have led to discussions between the US and Saudi Arabia to secure metals from African countries, reducing China’s dominance in the electric vehicle supply chain.
The expansion of BRICS, particularly with the inclusion of Saudi Arabia and other Middle Eastern countries, has raised concerns about the bloc becoming Middle East-centric. However, the expansion announcement is seen as a significant move that will test South Africa’s diplomatic capabilities and bring more purpose to the coalition. It also allows other BRICS members to participate in the African Continental Free Trade Area.
The energy transition minerals market has experienced significant growth in recent years, reaching $320 billion in 2022. This presents new business prospects, employment opportunities, and the potential for diversifying coal-dependent economies.
In conclusion, BRICS is expanding its influence in the mineral market by strengthening ties among its member countries. This shift away from the US and towards BRICS provides access to a wide range of mineral resources and processing facilities, reducing dependence on the West. The inclusion of Saudi Arabia and other Middle Eastern countries in BRICS raises concerns about the bloc’s regional focus, but it also opens up new opportunities for trade and investment. The growth of the energy transition minerals market presents prospects for economic development and the diversification of coal-dependent economies.