The Investing in Africa Mining Indaba in Cape Town emphasized the need for African nations to prioritize the processing of their mineral resources domestically. Experts argue that this shift is crucial to counter the impacts of de-globalization and potential trade wars, ensuring economic prosperity and control over Africa's vast mineral wealth.
Africa must prioritize the processing of its mineral resources domestically, according to experts at the Investing in Africa Mining Indaba in Cape Town. The call for local beneficiation comes amidst growing concerns about the impact of de-globalization and potential trade wars, particularly with the United States, on raw material exports.
Speakers at the forum emphasized that Africa needs to shift from simply exporting raw materials to transforming them into finished products to fully capitalize on the growing global demand for critical minerals. This shift is essential to ensure the continent retains economic value and control over its mineral wealth, securing its future prosperity.The urgency for local beneficiation is heightened by the challenges facing the mining sector. Last year, the South African mining industry contributed 6% to the nation's GDP, a slight decline from 2023. Despite exporting goods worth approximately R800 billion ($42 billion), accounting for 45% of all merchandise exports, the industry faces pressure to reduce costs and increase exploration to remain competitive. South Africa's Minister of Mineral and Petroleum Resources, Gwede Mantashe, stressed the economic imperative of local beneficiation, urging investors to consider the long-term benefits over the immediate allure of exporting raw materials. He acknowledged the challenges, including high export taxes and unreliable power supply, but emphasized the need to reverse the trend of exporting unprocessed resources. Mantashe called for a collective effort from the government, state-owned enterprises, and the private sector to overcome these obstacles and create a more industrialized and sustainable economy.The forum highlighted practical reforms aimed at attracting investment and fostering local beneficiation. Mantashe announced the finalization of a new mining licensing system, designed to streamline approvals and encourage investment. He also stressed the government's commitment to providing reliable and affordable power, a crucial factor for local processing. Mantashe directly appealed to investors, urging them to invest in Africa, profiting from its mineral wealth while simultaneously reinvesting in local communities through infrastructure development and social programs. He emphasized that mining, while contributing significantly to the national economy through taxes and employment, has the potential to do even more by driving inclusive growth and empowering communities.The forum also showcased positive economic indicators for the mining sector. Data from the Minerals Council South Africa (MCSA) revealed that despite logistical challenges and lower non-gold commodity prices, the industry continued to contribute significantly to the national economy. The MCSA CEO, Mzila Mthenjane, highlighted future milestones aimed at further growth and global relevance, such as the launch of an online mining cadastre system, the publication of a critical minerals list and strategy, and the revision of the Minerals and Petroleum Resources Development Act.The potential for local processing was further underscored by Mantashe's emphasis on Africa's dominance in key minerals. South Africa supplies 73% of global platinum group metals, 30% of global palladium, and produces 7.2 million tonnes of manganese annually, representing 36% of global output. While gold mining in South Africa has faced challenges, with production declining to 96 tonnes in 2023, the demand for other critical minerals presents a new opportunity for growth and diversification. Samaila Zubairu, CEO of the Africa Finance Corporation, echoed the sentiment, stating that local processing could stimulate various industries, create jobs, and foster skill development.
Mining Economics AFRICA MINING LOCAL BENEFICIATION MINERAL PROCESSING ECONOMIC GROWTH GLOBAL TRADE CRITICAL MINERALS SOUTH AFRICA INVESTING IN AFRICA MINING INDABA
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