M&A activity reflects growing interest in African mining
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M&A activity reflects growing interest in African mining
Foreign investment in African mining is poised for significant growth in 2025
Recent research by the Economist Intelligence Unit indicates that foreign investment in Africa’s mining industry is poised for significant growth in 2025, building on strong momentum established in 2024.
Transactions in Botswana
Several key transactions highlight this trend. Earlier this month, UK-based Altona Rare Earths finalised its acquisition of an 85% stake in Botswana’s Sesana Copper-Silver Project from Ignate Minerals, committing significant capital to accelerate exploration and mine development.
Transactions in Zambia
In December 2024, Australian mining firm Patriot Lithium acquired a 90% stake in Zambia’s Kitumba Copper Large Scale Exploration License from Newlight Nominees Zambia, enabling increased funding for exploration and production activities.
Similarly, in October 2024, Jubilee Metals, a UK-based company, acquired Project G, its second open-pit copper asset in Zambia, as part of a strategy to boost investments and raise copper output to 25,000 tons per year.
The UAE-based International Resource Holdings entered the market acquiring Zambia’s Mopani Copper Mines for USD1.1-billion in May 2024, enhancing exploration and production capabilities at one of the country’s largest copper facilities.
M & A activity in the rest of Africa
In South Africa, M&A activity reached USD10-billion between June 2023 and 2024, with 32 deals closed, compared to 24 year-on-year, according to PwC.
Among the notable deals, Kenya’s Marula Mining secured a 51% stake in South Africa’s Mansera Kruisrivier Cobalt Holding Company in July 2024, funding feasibility and aerial studies to advance the project.
Meanwhile, China’s Baowu Steel Group acquired stakes in Guinea’s Simandou Project, the world’s largest untapped iron ore deposit, in June 2024.
In Mali, Ganfeng Lithium secured an operational stake in the Goulamina Lithium Mine in a USD342.7-million deal with Australia’s Leo Lithium in May 2024.
The upcoming African Mining Week (AMW), taking place in Cape Town this October, will spotlight mergers and acquisitions (M&A), offering African projects a platform to showcase opportunities and providing global investors the stage to present growth strategies for Africa’s expanding mining sector.
M&A activity reflects growing interest in African mining
