Top 5 Investments Made in Africa’s Critical Minerals in 2023
The surge in global interest in critical minerals, essential for sustainable energy technologies and electric vehicles, has unleashed a wave of investments across Africa, home to 30% of the world’s mineral reserves.
This year witnessed an influx of deals, cooperative agreements, and strategic investments aimed at fortifying the continent’s role in the global critical mineral supply chain. Here are the top five transformative investments that reshaped Africa’s critical mineral landscape in 2023.
1.Japan and UK Forge Joint Investments in African Critical Minerals
Announced in September, Japan and the UK unveiled plans for joint investments in African critical minerals to stabilize supply chains.
The collaboration aims to develop mines in several African nations, establishing frameworks for economic and energy security. With a focus on acquiring mining sites and local refining facilities, this partnership seeks to diversify supplies and empower mineral-rich African countries.
2.South Africa’s Q Global Commodities: $1 Billion Investment in Southern and Eastern Africa
In an alliance with investment fund manager F9 Capital Management, Q Global Commodities committed a staggering $1 billion last October.
This investment targets critical minerals such as lithium, copper, and nickel across South Africa, Botswana, Zambia, Tanzania, and Namibia.
The endeavor involves setting up processing plants and logistics infrastructure, with plans for a public listing once the mines are operational.
3.Sinomine Resource Group Acquires Zimbabwe’s Bikita Lithium Mine
Last July witnessed the Chinese conglomerate Sinomine Resource Group securing the Bikita Lithium Mine, Zimbabwe’s largest, through a $180 million acquisition.
The ambitious plan includes the development of a dual lithium processing plant that is poised to produce significant amounts of spodumene concentrate and petalite annually.
This move reinforces Zimbabwe’s role as a regional lithium hub and signals China’s foray into new mining supply chains in Africa.
4.AfDB Joins Multilateral Efforts for Lobito Corridor Project
In a significant move, the African Development Bank (AfDB) signed a memorandum of understanding (MOU) last October with Africa Finance Corporation, the European Commission, and governments of Angola, DRC, Zambia, and the US.
This collaboration aims to mobilize resources for the Lobito Corridor and Zambia-Lobito transit projects. It supports the establishment of resilient critical mineral value chains, facilitating transport from Congo and Zambia to regional ports, showcasing the US’ strategic interest in African mineral resources.
5.Atlantic Lithium’s Ewoyaa Project: Ghana’s Premier Lithium Venture
Atlantic Lithium secured an exclusive 15-year mining lease in Ghana last October for the groundbreaking Ewoyaa Project. Financed by Piedmont Lithium and Ghana’s Minerals Income Investment Fund, the $185-million processing plant targets a significant yield of spodumene concentrate.
This endeavor cements Ghana’s status as a critical minerals hub and promises to be among the world’s top spodumene concentrate-producing mines.
