KEY POINTS
- African nations must increase investment in geoscience to unlock critical minerals.
- Streamlined regulations and funding support are vital for exploration success.
- Partnerships and technology are essential for sustainable mineral development.
As global demand for critical minerals like copper, lithium, and rare earths continues to rise, African countries must address key challenges to attract investment. These minerals are essential for decarbonization and clean energy technologies, presenting a major economic opportunity for the continent.
At a panel hosted by Creamer Media on Nov. 20, experts highlighted exploration and partnerships as fundamental to unlocking Africa’s mineral wealth.
Exploration and strategy: A continental approach
According to a report by Mining Weekly, Council for Geoscience CEO Mosa Mabuza stressed that African countries need a comprehensive understanding of their mineral resources and how they fit into global supply chains.
“A deliberate, continentwide strategy for geoscience surveys could help identify opportunities for collaboration and discovery,” Mabuza said. However, he pointed out that African nations spend significantly less on exploration—about $5 per square meter compared to $65 in developed economies.
South Africa, with its established mining sector, offers valuable lessons. Mabuza noted that ongoing research and continuous investment in geology are crucial for future discoveries and emphasized that policies must align with global demand for achieving net-zero emissions by 2050.
Policy and financing: Easing investment risks
Industrial Development Corporation (IDC) senior specialist Kgashane Mohale highlighted the need for developmental funding to support junior miners. The IDC is finalizing a R160-million grant fund, part of a larger R400-million allocation, to facilitate exploration.
Minerals Council South Africa CEO Mzila Mthenjane added that streamlined regulations are essential for reducing barriers to entry. He urged policymakers to simplify processes, such as exploration license approvals, which should take no more than three months.
“Exploration is a high-risk venture, and regulations must be supportive rather than burdensome at this stage,” Mthenjane said.
Partnerships and technology: Driving sustainable development
Church of England Pensions Board’s Adam Matthews emphasized the importance of partnerships in de-risking investments and fostering stable regulatory environments. He noted that about 300 new mines will be needed globally to meet energy transition goals.
MTN Business GM Sudipto Moitra discussed how technology, particularly connectivity, is transforming the mining industry. “From planning to safety, technology plays a pivotal role in advancing critical minerals projects and achieving ESG benefits,” he said.
Mohale concluded by underscoring the value of partnerships in helping investors navigate the risks of operating in diverse African jurisdictions, making exploration and development more sustainable.
