KEY POINTS
- The increasing global demand for silver, driven by its diverse industrial applications, has spurred renewed interest in African silver mining.
- Mining companies are investing in African projects, recognizing the continent’s rich silver deposits and potential for growth.
- The resurgence of silver mining can lead to economic benefits such as job creation, infrastructure development, and increased foreign exchange earnings.
Over the recent past, the African continent has recorded an impressive rise in the mining of silver.
This revival is as a result of high demand for silver internationally, more and improved investment by firms involved in mining, and abundant mineral resources in the continent.
Thus, Africa is gradually moving to the rank of the essential sources for obtaining silver in the world.
Rising global demand for silver
The global demand for silver has been on the rise due to its multipurpose usage in the electronics industry and power, energy, and solar, as well as a beginner’s demand in jewelry.
According to a 2021 report, global silver production was expected to increase by 8.1% to 918.3 million ounces, with projections to exceed one billion ounces by 2024.
This increased demand has encouraged the mining firms to seek and do invest in areas with rich silver resources; the African continent inclusive.
Strategic investments in African silver mining
Several mining companies have recognized Africa’s potential in silver production and have made significant investments in the region.
For instance, Altus Strategies has been developing its 100%-owned Agdz project in Morocco, located in a highly prospective region for copper and silver.
The project comprises four contiguous license blocks in the Anti-Atlas Mountains, near the Bou Skour copper and silver mine operated by the Moroccan state mining group Managem.
Such investments are revitalizing silver mining activities and contributing to the continent’s economic growth.
Economic implications for African nations
The resurgence of silver mining holds significant economic potential for African countries. Increased mining activities can lead to job creation, infrastructure development, and enhanced foreign exchange earnings.
For example, Nigeria has been leading Africa’s mining sector resurgence, with efforts to forge a common front in projecting the continent’s interest in the global mining industry.
The formation of the African Minerals Strategy Group (AMSG), chaired by Nigeria’s Minister of Solid Minerals Development, aims to ensure that Africa gains maximally from its abundant natural resources.
Challenges and considerations
Despite the promising outlook, the resurgence of silver mining in Africa is not without challenges. Issues such as resource nationalism, political instability, and regulatory uncertainties can pose risks to mining investments.
The resurgence of resource nationalism, particularly in countries experiencing political upheaval, poses a major risk to the ambitions of foreign mining companies.
Addressing these challenges requires collaborative efforts between governments and mining companies to create a stable and conducive environment for mining operations.
Future prospects
Future prospects of silver mining in Africa seem rather favorable due to the present exploring and developing activities in African countries.
Some firms like Fortuna Silver Mines have increased their footprint in West Africa by acquisition including Chesser Resources which holds Diamba Sud gold project in Senegal.
These prospects show the awareness of the silver mining opportunities in Africa and imply that Africa will remain a more influential player in the international silver market.
