Key Points
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African leaders push local mineral processing for jobs.
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Investors demand stability as mining rules tighten.
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Demand for lithium and cobalt raises Africa’s leverage.
The debate over resource nationalism was front and center at the Africa Down Under mining conference in Perth this week.
African officials, diplomats, and legal experts told delegates that governments want more than just taxes from mining companies — they want minerals processed locally to create jobs and industries.
Australian High Commissioner to Ghana Berenice Owen-Jones said this new push is being driven more by economics than politics.
“We’re seeing new mining codes across West Africa with tighter regulation, higher taxes, and stronger local content rules,” she said.
“What’s different this time is the emphasis on in-country value-add and, in some cases, greater government ownership.”
She pointed to Guinea’s Simandou iron ore project as a “nation-building” opportunity and highlighted growing lithium projects in Ghana. But she also warned that tougher rules often lead to more disputes and arbitration.
African governments call for local value-add in mining
Zimbabwe’s Ambassador to Australia Joe Tapera Mhishi tied the value-addition drive to the African Union’s development agenda.
He said African nations want to move away from shipping out raw minerals and instead build industries that process them at home.
South Africa’s Deputy Minister of Mineral Resources, Phumzile Mgcina, agreed. She said beneficiation could help Africa move from being a supplier of raw materials to producing finished products, giving the continent a stronger role in global supply chains.
With demand for lithium, cobalt, and rare earths soaring, officials said Africa could gain more by striking fairer partnerships with investors.
Investors seek stability as rules shift
Some experts cautioned that sudden policy changes risk scaring off investors. Kate Apostolova, a partner at Clifford Chance, said raising taxes or pushing for bigger state stakes after discoveries weakens trust. “Money flows where there is certainty,” she said. “If risks rise, funding declines.”
She recommended bilateral investment treaties as a way to balance government goals with investor protections.
Not everyone agreed Africa is too risky. Zambia’s High Commissioner Elias Munshya said most African countries are politically stable with strong legal systems. “Out of 54 countries, maybe four have problems, but the rest are safe,” he said.
Conference chair Liam Twigger summed it up bluntly: “Capital goes where it is wanted and respected — and leaves in the blink of an eye.”
