Africa’s ambitions to process critical minerals face headwinds
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Africa’s ambitions to process minerals face headwinds
Ambitions to process critical minerals in Africa face challenges as reality kicks in.
Complex permitting processes, weak or non-existent infrastructure, lack of sufficient energy, high energy and labour costs and tariffs are just some of the reasons why mining companies say they are hesitant to invest in beneficiation in Africa.
The issue of adding value to raw materials extracted in Africa has been on the agenda of a generation of African leaders.
But geopolitics, tariff wars and on-the-ground realities are blasting holes in these noble ambitions.
A bridge too far
Building, maintaining and operating large processing plants and smelters at a time when the world’s superpowers are hungry for raw materials now, is proving to be a bridge too far.
This week two graphite operations in Africa announced that they will be shipping raw material from their mines in Namibia and Madagascar to the Middle East for downstream processing.
Earlier this week Canadian miner Northern Graphite announced that they will supply 50,000 tons of graphite concentrate per year to a new USD200-million battery anode plant in Saudi Arabia.
Northern Graphite is reviving the Okanjande graphite mine in Namibia.
According to Hugues Jacquemin, CEO of Northern Graphite, cheaper power, abundant water, and industrial infrastructure make production more viable in Saudi Arabia.
Middle East attractive for beneficiation
The company signed a binding agreement with the Saudi based Obeikan Group.
“Saudi Arabia is an attractive location for our battery anode materials plant due to its low energy and labour costs, close proximity to Namibia, strong government support, favourable financing conditions, and trade advantages that include low tariffs into the US and efficient access to European markets,” says Jacquemin.
Meanwhile NextSource Materials, another Canadian based company, signed agreements with potential investors for a processing plant in the United Arab Emirates (UAE)E that would treat graphite mined in Madagascar.
NextSource says that simplified permitting processes, excellent infrastructure and the 10% tariffs imposed by the United States on products from the UAE makes that part of the world more attractive.
Image: Raw materials from Africa being extracted and shipped to the Middle East. Image credit: Leon Louw for WhyAfrica.
Read more about critical minerals on the WhyAfrica website, your one-stop- shop for on the ground information and business intelligence about Africa.
WhyAfrica specialises in the sustainable use and responsible development of Africa’s natural resources.
African ambitions to process critical minerals face headwinds