Nigeria recently concluded a three-day conference celebrating National Mining Week, highlighting its commitment to enhancing its mining sector. With a focus on attracting investments, the Nigerian government aims to leverage the global increase in mineral demand to diversify its economy. This initiative is part of broader efforts to reduce reliance on oil and tap into the potential of the mining industry to foster economic growth.

The Nigerian economy has been historically reliant on oil exports, making it vulnerable to fluctuating global prices. In light of this, the government is actively seeking to diversify by investing in various sectors, including mining. The National Mining Week conference underscores the government’s dedication to this goal, providing a platform for stakeholders to discuss opportunities and strategies to enhance the mining sector’s contribution to the economy.

In summary, Nigeria’s focus on expanding its mining industry is a strategic move aimed at economic diversification. By capitalising on the global demand for minerals, the country intends to shift its economic dependence away from oil, ultimately fostering sustainable growth and investment in the sector.

Original Source: www.voaafrica.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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Nigeria’s ambition to establish a valuable supply chain for critical minerals, particularly lithium, is receiving an important boost from Sabi, a Lagos-based e-marketplace startup. Sabi has formed partnerships with Italy’s Snowball Holdings and US-based Transition Resources to set up lithium processing plants in Nigeria. Chief Executive Officer Anu Adasolum noted that Sabi will facilitate regular supplies from small-scale lithium miners and provide logistics and quality control services required for mineral exports. Each plant is projected to process up to 1,000 tons of lithium daily, with the US as the primary export market. The drive to move up the value chain in mineral processing also reflects a region-wide effort among African countries to secure better economic returns from their natural resources. The International Energy Agency anticipates that lithium demand could surge 13-fold by 2040, prompting Nigeria to bolster its local processing capabilities. This year, Nigeria has seen the opening of two local processing plants by Chinese firms, indicating a growing foreign investment interest in Nigeria’s lithium sector. Sabi’s role as a facilitator harnesses its experience as an intermediary in other sectors, seeking to generate substantial revenue through mineral exports. Through its proprietary software called TRACE, Sabi can provide exporters with compliance data essential for meeting international ethical sourcing standards. The company operates without physical assets, relying instead on its digital platform to facilitate transactions. Financially, Sabi earns revenue through shares of the processing plant’s exported mineral value, while also offering the option for them to purchase inputs directly from local miners. The growing focus on lithium in Africa parallels similar developments elsewhere, such as Chile’s SQM collaborating with Andrada Mining in Namibia to create a vertically integrated lithium industry.

Nigeria aims to transform its economy through the development of a value-added supply chain for critical minerals such as lithium, cobalt, and copper used extensively in renewable energy technologies. With an expected increase in lithium demand due to the transition to clean energy, African nations like Nigeria are keen to ensure they reap more benefits from their resource wealth. Companies are keen on establishing local processing plants, which could significantly increase the value of exports, doubling Nigeria’s economic returns.

Nigeria’s push to develop its lithium processing capabilities is symbolised by Sabi’s partnerships with international companies, aiming to boost local supply chains while creating economic opportunities. As global demand for lithium surges, Nigeria is strategically positioned to enhance its mineral processing sector, contributing to both job creation and greater economic returns. With further investments and innovations in technology, Nigeria could achieve significant advancements in its mineral industry, ensuring a more sustainable economic future for its citizens.

Original Source: www.semafor.com

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