African leaders, mining experts, and global investors have gathered in South Africa for the annual Mining Indaba, aiming to discuss and enhance the mining industry in Africa.
Africa possesses around 30% of the world’s mineral reserves, according to the United Nations. However, a significant portion of this wealth remains untapped.
South Africa’s President Cyril Ramaphosa, speaking at the opening ceremony of the four-day event in Cape Town, highlighted Africa’s potential to be a central player in the global energy transition, with mining playing a crucial role.
Discussions at the conference will revolve around the competition for Africa’s critical minerals, including lithium, nickel, cobalt, manganese, and graphite. These minerals are essential for renewable energy technologies like solar panels and wind turbines.
Despite being a leader in mineral wealth, South Africa faces challenges as the largest greenhouse gas emitter in Africa, mainly due to emissions from coal-fired power plants, which generate 80% of the country’s electricity. The energy crisis complicates efforts to transition away from coal-fired power.
President Ramaphosa emphasized South Africa’s commitment to a just energy transition, balancing affordability, energy security, and new opportunities for affected communities.
Many African countries export crucial mineral resources as raw ores, with limited value addition locally, resulting in missed opportunities for maximising the value of these resources. This practice has also contributed to exploitative labour practices in the continent’s mining industries.
Inefficiencies in transportation infrastructure have further hindered countries from getting their minerals to markets in a cost-effective manner. The lack of infrastructure and limited value addition have led to African countries receiving a smaller share of the total government revenues from the mining industry.
African governments are expected to use the conference as a platform to negotiate better terms and demand increased value for their resources.
