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Hindustan Times
09-07-2025
- Business
- Hindustan Times
Africa Wants Its Critical Minerals to Yield Jobs, Not Just Dollars
KAMPALA, Uganda—Trump administration officials seeking deals for critical minerals in Africa are in for a surprise: Governments here are increasingly reluctant to export raw ore, betting instead they'll keep more jobs and revenue if they insist on processing the material at home. Nearly half of Africa's 54 countries—from Angola to Zimbabwe—have restricted or banned raw-material exports over the past two years, according to the Organization for Economic Cooperation and Development. Zimbabwe, Africa's top producer of lithium, a key electric-vehicle battery component, says it plans to ban exports of the raw mineral in 2027. Already its government has been pressuring mining companies to build processing plants there, creating 5,000 new jobs and increasing export earnings from the mineral to $600 million in 2023, from $70 million in 2022, according to the mines ministry. 'Our ultimate objective is to produce batteries and solar panels,' Zimbabwe's mining minister, Winston Chitando, said in a speech last month. 'In the long term, we will get there.' Global demand for lithium tripled between 2017 and 2022, while the appetite for cobalt swelled by 70% during the same period, according to the International Energy Agency. In the U.S., the market for lithium batteries is projected to rise nearly sixfold by 2030 to reach $52 billion, according to a Boston Consulting Group analysis. Such strong demand gives African raw-material exporters new leverage, and they are trying to use it to jump-start domestic industries. Gabon, home to 25% of the world's manganese reserves, plans to stop exporting the raw mineral starting in 2029. 'More and more African countries are keen to secure the benefits of the global demand for critical raw materials,' said Thomas Reilly, a former British diplomat now a senior adviser with the Washington-based law firm Covington & Burling. 'Resource nationalism, if done right, will help these countries to move up the value chain, creating jobs, attracting more international investment and developing local economies.' Countries such as Guinea, Uganda and Namibia have introduced new rules outlawing the export of mineral ores. Others, including Ghana, Rwanda and Zambia, are expanding factories to process minerals within their borders. In Rwanda, which last month signed a U.S.-brokered deal to stop sponsoring rebel groups in the lawless eastern regions of the Democratic Republic of Congo, officials say they'd like to serve as a processing hub for Congolese minerals. Export restrictions have already disrupted the flow of unprocessed minerals including manganese, lithium and bauxite to smelters in Asia and Europe, and the process-it-at-home trend could disrupt the Trump administration's drive to secure more of Africa's critical minerals for the U.S. The U.S. has been seeking deals to invest into critical minerals sectors of a number of African countries. Its role in brokering the deal between Congo and Rwanda was motivated in part to improve American access to critical minerals. But while restrictions on the export of unprocessed minerals may not deter the Trump administration's push for mining deals, the trend may complicate negotiations with some producing countries, said François Conradie, an analyst with South Africa-based Oxford Economics Africa. 'I don't think the U.S. will slow down,' he said. 'The big question is: What can the U.S. offer that will justify a change of position for the producing countries?' A State Department spokesperson didn't answer questions about whether the raw-material export bans would affect Trump's commercial aspirations. 'We are open to mutually beneficial economic partnerships on critical minerals to complement our domestic-production goals,' the spokesperson said. With more export bans on the horizon, Chinese and Western companies are rushing to set up new mineral-processing plants across the continent. These new plants will test whether investors, who usually locate processors in Asia, can succeed in Africa, where skilled labor is in short supply and much of the infrastructure is creaky. Indonesia, which banned unprocessed nickel exports in 2020, has since attracted huge investments from China and now dominates global nickel production. But much of the value was captured by Chinese companies, according to Commodities Research Unit, a London-based business-intelligence firm. Some analysts believe African nations stand to benefit more from the investments. 'Investors who bring not just money but also technical know-how and align with local development goals may find strong opportunities in this new landscape,' said Nj Ayuk, head of the African Energy Chamber, a South Africa-based energy think tank. Sinomine Resource Group, a Chinese state-owned mining company, is building a $300 million lithium-processing plant in Zimbabwe. In Ghana, China's state-owned Ningxia Tianyuan Industry Co is building a $450 million refinery to produce high-grade manganese. Zambia and Congo are on the lookout for investors to bankroll a plant to manufacture electric-vehicle batteries. African policymakers say if they play it right, they can use their countries' mineral wealth to improve the living standards for some of the world's poorest people. Africa's copper belt, for instance, which straddles the border between Congo and Zambia, holds 50% of the world's cobalt deposits and significant deposits of copper and platinum, yet more than 70 million residents in the two countries live in poverty. Africa exports 75% of its crude oil, which is refined elsewhere and often reimported at significantly higher prices as petroleum products. The continent exports 45% of its natural gas, while 600 million Africans have no access to electricity, according to the International Energy Agency. A mining operation in Zimbabwe run by Sinomine Resource Group, a Chinese state-owned company. During the launch of construction of a joint Russian-Malian gold refinery in Mali's capital, Bamako, last month, the country's military leader, Gen. Assimi Goïta, said Africa as a whole had to break this long dependence on exporting raw materials. 'The establishment of this gold refinery is a reaffirmation of our economic sovereignty,' Goïta said at the construction site of the 200-ton-a-year plant, jointly owned by the Malian government and Russia's Yadran. 'It enables us to better capitalize on revenues from gold and its byproducts.' Gabon, home to 25% of the world's manganese reserves, plans to stop exporting the raw mineral starting in 2029. Manganese is critical in the manufacture of steel and electric-vehicle batteries, and Gabon's President Brice Oligui Nguema senses an opportunity to build its economy by processing its reserves domestically. Export restrictions, however, sometimes backfire. When Zimbabwe initially announced a ban on the export of unprocessed ore in 2022, mineral smuggling across the country's porous borders soared. Many small-scale miners, struggling to keep afloat, started selling stockpiled ore to bigger Chinese players at giveaway prices. Zimbabwe, which says it loses $1.8 billion every year to mineral smuggling, eased the ban after a few months. There are also risks for investors. Last month, Niger's government took over the Somaïr uranium mine from its French majority shareholder, Orano, following months of disputes over the size of its stake. In neighboring Mali, the government took over ownership of a gold mine from Canada's Barrick Gold in April, following a longstanding tax dispute. 'The downside of this kind of new scramble for African mineral resources for Western companies is that they may end up losing out,' said Reilly, the Covington & Burling lawyer. 'The stakes are already high and they will get higher.' Write to Nicholas Bariyo at
Mint
09-07-2025
- Business
- Mint
Africa wants its critical minerals to yield jobs, not just dollars
KAMPALA, Uganda—Trump administration officials seeking deals for critical minerals in Africa are in for a surprise: Governments here are increasingly reluctant to export raw ore, betting instead they'll keep more jobs and revenue if they insist on processing the material at home. Nearly half of Africa's 54 countries—from Angola to Zimbabwe—have restricted or banned raw-material exports over the past two years, according to the Organization for Economic Cooperation and Development. Zimbabwe, Africa's top producer of lithium, a key electric-vehicle battery component, says it plans to ban exports of the raw mineral in 2027. Already its government has been pressuring mining companies to build processing plants there, creating 5,000 new jobs and increasing export earnings from the mineral to $600 million in 2023, from $70 million in 2022, according to the mines ministry. 'Our ultimate objective is to produce batteries and solar panels," Zimbabwe's mining minister, Winston Chitando, said in a speech last month. 'In the long term, we will get there." Global demand for lithium tripled between 2017 and 2022, while the appetite for cobalt swelled by 70% during the same period, according to the International Energy Agency. In the U.S., the market for lithium batteries is projected to rise nearly sixfold by 2030 to reach $52 billion, according to a Boston Consulting Group analysis. Such strong demand gives African raw-material exporters new leverage, and they are trying to use it to jump-start domestic industries. Gabon, home to 25% of the world's manganese reserves, plans to stop exporting the raw mineral starting in 2029. 'More and more African countries are keen to secure the benefits of the global demand for critical raw materials," said Thomas Reilly, a former British diplomat now a senior adviser with the Washington-based law firm Covington & Burling. 'Resource nationalism, if done right, will help these countries to move up the value chain, creating jobs, attracting more international investment and developing local economies." Countries such as Guinea, Uganda and Namibia have introduced new rules outlawing the export of mineral ores. Others, including Ghana, Rwanda and Zambia, are expanding factories to process minerals within their borders. In Rwanda, which last month signed a U.S.-brokered deal to stop sponsoring rebel groups in the lawless eastern regions of the Democratic Republic of Congo, officials say they'd like to serve as a processing hub for Congolese minerals. Export restrictions have already disrupted the flow of unprocessed minerals including manganese, lithium and bauxite to smelters in Asia and Europe, and the process-it-at-home trend could disrupt the Trump administration's drive to secure more of Africa's critical minerals for the U.S. The U.S. has been seeking deals to invest into critical minerals sectors of a number of African countries. Its role in brokering the deal between Congo and Rwanda was motivated in part to improve American access to critical minerals. But while restrictions on the export of unprocessed minerals may not deter the Trump administration's push for mining deals, the trend may complicate negotiations with some producing countries, said François Conradie, an analyst with South Africa-based Oxford Economics Africa. 'I don't think the U.S. will slow down," he said. 'The big question is: What can the U.S. offer that will justify a change of position for the producing countries?" A State Department spokesperson didn't answer questions about whether the raw-material export bans would affect Trump's commercial aspirations. 'We are open to mutually beneficial economic partnerships on critical minerals to complement our domestic-production goals," the spokesperson said. With more export bans on the horizon, Chinese and Western companies are rushing to set up new mineral-processing plants across the continent. These new plants will test whether investors, who usually locate processors in Asia, can succeed in Africa, where skilled labor is in short supply and much of the infrastructure is creaky. Indonesia, which banned unprocessed nickel exports in 2020, has since attracted huge investments from China and now dominates global nickel production. But much of the value was captured by Chinese companies, according to Commodities Research Unit, a London-based business-intelligence firm. Some analysts believe African nations stand to benefit more from the investments. 'Investors who bring not just money but also technical know-how and align with local development goals may find strong opportunities in this new landscape," said Nj Ayuk, head of the African Energy Chamber, a South Africa-based energy think tank. Sinomine Resource Group, a Chinese state-owned mining company, is building a $300 million lithium-processing plant in Zimbabwe. In Ghana, China's state-owned Ningxia Tianyuan Industry Co is building a $450 million refinery to produce high-grade manganese. Zambia and Congo are on the lookout for investors to bankroll a plant to manufacture electric-vehicle batteries. African policymakers say if they play it right, they can use their countries' mineral wealth to improve the living standards for some of the world's poorest people. Africa's copper belt, for instance, which straddles the border between Congo and Zambia, holds 50% of the world's cobalt deposits and significant deposits of copper and platinum, yet more than 70 million residents in the two countries live in poverty. Africa exports 75% of its crude oil, which is refined elsewhere and often reimported at significantly higher prices as petroleum products. The continent exports 45% of its natural gas, while 600 million Africans have no access to electricity, according to the International Energy Agency. During the launch of construction of a joint Russian-Malian gold refinery in Mali's capital, Bamako, last month, the country's military leader, Gen. Assimi Goïta, said Africa as a whole had to break this long dependence on exporting raw materials. 'The establishment of this gold refinery is a reaffirmation of our economic sovereignty," Goïta said at the construction site of the 200-ton-a-year plant, jointly owned by the Malian government and Russia's Yadran. 'It enables us to better capitalize on revenues from gold and its byproducts." Gabon, home to 25% of the world's manganese reserves, plans to stop exporting the raw mineral starting in 2029. Manganese is critical in the manufacture of steel and electric-vehicle batteries, and Gabon's President Brice Oligui Nguema senses an opportunity to build its economy by processing its reserves domestically. Export restrictions, however, sometimes backfire. When Zimbabwe initially announced a ban on the export of unprocessed ore in 2022, mineral smuggling across the country's porous borders soared. Many small-scale miners, struggling to keep afloat, started selling stockpiled ore to bigger Chinese players at giveaway prices. Zimbabwe, which says it loses $1.8 billion every year to mineral smuggling, eased the ban after a few months. There are also risks for investors. Last month, Niger's government took over the Somaïr uranium mine from its French majority shareholder, Orano, following months of disputes over the size of its stake. In neighboring Mali, the government took over ownership of a gold mine from Canada's Barrick Gold in April, following a longstanding tax dispute. 'The downside of this kind of new scramble for African mineral resources for Western companies is that they may end up losing out," said Reilly, the Covington & Burling lawyer. 'The stakes are already high and they will get higher." Write to Nicholas Bariyo at
Business Insider
11-06-2025
- Business
- Business Insider
Africa's largest lithium producer to ban concentrate exports by 2027
Zimbabwe will ban the export of lithium concentrates starting January 2027, as part of a broader strategy to boost local value addition in the mining sector. Zimbabwe will ban the export of lithium concentrates starting January 2027, as part of a broader strategy to boost local value addition in the mining sector, Mines Minister Winston Chitando announced on Tuesday. The move builds on the southern African nation's 2022 ban on raw lithium ore exports and shows its commitment to developing a domestic lithium processing industry. Most lithium miners operating in Zimbabwe, primarily Chinese companies, have been exporting concentrates to China for further processing. Chitando revealed that two lithium sulphate processing plants are currently under development: one at Bikita Minerals, owned by China's Sinomine Resource Group, and the other at Prospect Lithium Zimbabwe, owned by Zhejiang Huayou Cobalt, Reuters reported. Lithium sulphate is an intermediate product that can be further refined into battery-grade lithium hydroxide or lithium carbonate, critical components in the battery manufacturing supply chain. "Because of that capacity which is now in the country, the export of all lithium concentrates will be banned from January 2027," Chitando said during a press briefing. Chinese firms bet big on Zimbabwe's lithium Zimbabwe, Africa's largest producer of lithium, a key mineral used in batteries for electric vehicles and renewable energy storage, has emerged as a critical player in the global lithium market, especially after prices surged in 2021 and 2022. Although spot prices have since plunged by nearly 90% due to oversupply and weaker-than-expected EV demand, Chinese companies continue to invest heavily in Zimbabwe's lithium sector to secure feedstock for their domestic refineries. Leading firms such as Sinomine, Huayou Cobalt, Chengxin Lithium Group, Yahua Group, and Canmax Technologies have collectively invested over $1 billion in acquisitions and project development since 2021. Across the broader continent, lithium mining and exploration activity is gaining momentum in countries like Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC). However, these projects are still small relative to the number of projects developed in the Americas, Australia and Europe.
Yahoo
11-06-2025
- Business
- Yahoo
Zimbabwe to impose export ban on lithium concentrates from 2027
Zimbabwe will enforce a ban on the export of lithium concentrates starting in 2027, aiming to bolster local processing capabilities, according to Mines Minister Winston Chitando, reported Reuters. This decision follows the country's prohibition of lithium ore exports in 2022 and is part of a broader initiative to encourage domestic processing within Africa's leading lithium-producing nation. Lithium sulphate plants are currently under development at Bikita Minerals and Prospect Lithium Zimbabwe, owned by Sinomine and Zhejiang Huayou Cobalt, respectively. These facilities will produce an intermediate product that can be refined into battery-grade materials such as lithium hydroxide or lithium carbonate, essential for battery manufacturing. 'Because of that capacity, which is now in the country, the export of all lithium concentrates will be banned from January 2027,' Chitando was quoted as saying during a media briefing after a cabinet meeting. Despite the ambitious local processing plans, Zimbabwe had to adjust its policies after lithium prices fell in 2023, the report said. Lithium miners were initially given until March 2024 to submit plans for local refineries, but the government softened its stance due to market conditions. Chinese companies including Chengxin Lithium Group, Yahua Group and Canmax Technologies have invested more than $1bn (7.19bn yuan) since 2021 in acquiring and developing lithium projects in Zimbabwe. Meanwhile, Zimbabwean miners, represented by Zimbabwe Lithium Exporters, which counts Chengxin Lithium Group among its members, are seeking a postponement of the newly imposed export tax on lithium concentrate. They argue that the 5% levy should be delayed until 2027, aligning with the expected operational date of the lithium sulphate production facilities, as per a document submitted to the mines and finance ministries. "Zimbabwe to impose export ban on lithium concentrates from 2027" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Time of India
11-06-2025
- Business
- Time of India
Zimbabwe to ban export of lithium concentrates from 2027
Zimbabwe will ban the export of lithium concentrates from 2027 as it extends its push for more local processing, mines minister Winston Chitando said on Tuesday. Africa's top producer of lithium, used in batteries to power renewable energy technologies, banned the export of lithium ore in 2022 and has been pushing miners to process more domestically. Lithium miners in Zimbabwe, who are mostly from China, have been exporting concentrates to their home country. Chitando said lithium sulphate plants were currently being developed at two Zimbabwean mines, Bikita Minerals, owned by Sinomine and Prospect Lithium Zimbabwe, owned by Zhejiang Huayou Cobalt. Lithium sulphate is an intermediate product which can be refined into a battery-grade material such as lithium hydroxide or lithium carbonate used in battery manufacturing. "Because of that capacity which is now in the country, the export of all lithium concentrates will be banned from January 2027," Chitando said during a media briefing following a weekly cabinet meeting. In 2023, Zimbabwe gave lithium miners up to March 2024 to submit plans for developing local refineries, but softened its stance after prices of the metal collapsed. Sinomine and Zhejiang Huayou Cobalt are part of a group of Chinese firms, including Chengxin Lithium Group Yahua Group and Canmax Technologies, which have spent more than $1 billion since 2021 to acquire and develop lithium projects in Zimbabwe.
