South Africa hosted this month the annual conference of the Mining Indaba, a large gathering of actors in the African mining sector, in the city of Cape Town. Key topic of the discussions: the metals that will be essential to ensure the energy transition and green technologies. According to the International Energy Agency (IEA), the demand for lithium, cobalt, and other key minerals could increase up to six times within 20 years.
From our correspondent in Johannesburg,
Despite a decline in recent years in investment for exploration on the continent, experts are confident that the trend will reverse, given the appetite for minerals essential to the energy transition.
Colin Hamilton is a Commodities Analyst for BMO Capital Markets. For him, ” security of supply is crucial. And Africa has tremendous geological resources that are coveted, whether by Japan, China, the United States, Europe », Explains the analyst. ” One thinks above all of cobalt, lithium, nickel, but also copper, of course, which has been exploited for a long time: Africa has always had good copper resources. And in the last 20 years, most of it goes to China. So there will be attempts to redirect this to the economies of developed countries “, continues Colin Hamilton.
Have a more diverse supply chain
The United States, particularly present during this Mining Indaba, expressed their interest. Jenna Diallo is regional investment director in Johannesburg for “Prosper Africa”, an American initiative that aims to strengthen cooperation with the continent:
« With the energy transition, the United States and the whole world need greater quantities of these crucial minerals “says Jenna Diallo. “ And with recent events, namely Covid and the war in Ukraine, we are all looking to have more gateways and a more diverse supply chain. “, she adds. “ We believe that increased trade and investment will not only be good for business on both sides, but also for the development of the African continent.. »
All players in the sector are now highlighting their “ESG”, environmental, social and governance criteria, to promise that African mining development will take place under good conditions.
Developing the processing sector on the African continent
But to avoid a new curse of raw resources, it will be necessary to ensure that they are really applied according to Boubacar Bocoum, mining specialist for the World Bank:
« All this must ensure that operations take place normally, but also ensure that income is paid as it is due, and as provided for in the agreements. ”, emphasizes Boubacar Bocoum. « So it will not happen naturally, it requires that the States mobilize to seize the opportunity but also to ensure that all the benefits that are expected are actually realized.. »
And for this, many African countries are counting on an improvement in their processing chain for these strategic minerals, a sector for the moment mainly in the hands of China.