Edo State has surpassed Ogun and Kogi in the mining sector as the Dangote Group has increased its market control to 54.2%, according to the 2023 Solid Minerals Industry Audit by NEITI. The audit highlights a surge in licences issued, increasing by 114% compared to the previous year. Nigeria possesses substantial mineral reserves, yet remains largely underdeveloped due to challenges such as lack of infrastructure, funding issues, and a weak regulatory framework.

During the audit period, mineral production rose to 95 million tonnes, an increase of 34.4%. Key contributors to this production were major companies like Dangote, BUA, and Lafarge, which collectively produced over 51 million tonnes and paid significant royalties. NEITI emphasises the need for improved monitoring and enforcement within the sector to counteract non-active operators and illegal mining, recommending penalties for non-usage of licences and enhanced governmental support for the mining industry.

The mineral sector in Nigeria, notably overshadowed by oil, is beginning to garner attention as new reports reveal significant activity from companies like the Dangote Group. NEITI’s audit report highlights both the increase in licences and the production of minerals, indicating a shift towards more robust mining operations. However, numerous issues still hamper growth, including inadequate infrastructure and lack of government support, which need addressing to realise Nigeria’s full mineral potential.

The latest NEITI report underscores a pivotal moment for Nigeria’s mining sector, showcasing rising production figures and increased licence issuance. With Dangote’s dominant share and significant contributions from other major companies, there is potential for substantial growth. However, resolving infrastructural deficits and regulatory challenges will be critical in fostering a sustainable mining environment and attracting foreign investment.

Original Source: www.thisdaylive.com

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Zambia’s mining sector faces significant upheaval due to proposed government reforms that threaten investors’ rights, according to the Chamber of Mines. The planned establishment of a state-owned enterprise intends to take control of at least 30% of future production from critical minerals like copper. The Chamber criticises the government for not sufficiently consulting with mining firms, risking setbacks to investment efforts that have boosted the economy since 2021.

Zambia’s economy heavily relies on copper, contributing approximately 70% to its export revenues. The government aims to boost copper production from less than 700,000 tonnes last year to three million tonnes by the next decade. These ambitious targets will require substantial investment in the mining sector, which could be jeopardised by new governance laws that purportedly allow regulators excessive discretionary powers, risking corruption.

The proposed reforms in Zambia’s mining sector represent a significant challenge for investors, with the Chamber of Mines expressing concern over possible corruption and a lack of meaningful government consultation. These developments could undermine past efforts to attract investment and drastically impact the country’s mining industry and economic growth.

Original Source: africanminingmarket.com

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In August 2024, Lobito Atlantic Railway shipped its inaugural copper export from the Democratic Republic of the Congo (DRC) to the U.S., highlighting Africa’s vital role in meeting rising global copper demands. With predictions of a 10 million metric ton shortfall by 2030, African initiatives aim to bridge this gap. The Critical Minerals Africa (CMA) 2024 summit will present lucrative opportunities within Africa’s copper sector, with discussions focused on enhancing production and supporting economic growth in line with the global energy transition. The DRC, now the third-largest copper producer globally, has partnered with Canadian firm Ivanhoe Mines to enhance output at the Kamoa-Kakula Copper Complex, aiming for an additional 150,000 tons annually. Furthermore, Ivanhoe resumed operations at Kipushi mine, contributing a further 140,000 tons to the DRC’s copper supply. Chinese company CMOC is also investing $2.5 billion in the Tenke Fungurume and Kinsafu mines to double production within four years, while Swiss firm Glencore targets 300,000 tons annually at its KTO Copper and Cobalt Mine through innovative technologies. Zambia, the second-largest producer in Africa, seeks to expand its copper output to 3 million tons by 2030 by engaging global investors. Recent resumption of production at Mopani Mine adds 140,000 tons to its annual yield. Beyond DRC and Zambia, emerging projects in Zimbabwe, South Africa, Mauritania, Namibia, and Morocco will also be pivotal. At the CMA 2024 summit, collaborative efforts among policymakers and investors will be discussed to reinforce Africa’s position in the copper market.

The article focuses on the urgency of addressing a looming global copper supply crisis, projected to reach a gap of 10 million metric tons by 2030. Africa, particularly the DRC and Zambia, is highlighted as a crucial player in the copper sector, with various initiatives aiming to bolster production. The Critical Minerals Africa summit serves as a platform for showcasing these opportunities and fostering discussions on strategies to expand the continent’s copper production capacity.

In summary, Africa, notably the DRC and Zambia, is at the forefront of addressing the global copper supply shortage through significant expansions and investments. The CMA 2024 summit aims to further enhance these efforts, promoting collaboration between African nations and global investors to secure sustainable growth in copper production. This concerted approach demonstrates the continent’s commitment to becoming a leader in the critical mineral sector.

Original Source: africanminingmarket.com

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Tanzania is positioning itself as a frontrunner in Africa’s strategic mineral sector, with expectations of a significant surge in global demand for critical resources by 2050. During a stakeholder meeting, Minister for Minerals Anthony Mavunde highlighted the country’s abundant mineral reserves, particularly in nickel, lithium, and graphite, vital for clean energy. Currently, global graphite demand is estimated at 6.5 million tonnes annually, but production is only at 1.2 million tonnes, with China dominating at 64% of the total. In Africa, Madagascar leads with 13%, Mozambique with 10%, and Tanzania follows in third place, contributing 0.6%.

The increasing global demand for strategic minerals, particularly for clean energy technologies, makes countries with rich mineral reserves crucial in shaping the future market. Tanzania’s mineral resources, especially in graphite—which is essential for batteries and other technologies—provide it with a competitive edge in the evolving landscape of the mining industry. The projected rise in demand by 2050 magnifies the importance of African nations in the global market.

Tanzania is actively working to enhance its status in the mining sector by leveraging its rich mineral resources. With strategic minerals like nickel, lithium, and graphite in high demand for clean energy, the country aims to increase its market share significantly. As the global demand for these minerals rises, Tanzania’s position as a significant contributor could reshape mining dynamics in Africa and beyond.

Original Source: africanminingmarket.com

The post Tanzania’s Ambitious Plans to Lead Africa in Mining Sector first appeared on Nigerian Mining News.