By John Humphrey, His Majesty’s Trade Commissioner to Africa, UK’s Department for Business and Trade
The United Kingdom has long been a proponent of global economic development and sustainable resource management. In light of the increasing global demand for critical minerals, the UK is strategically positioning itself as a key partner in Africa’s mining sector. This move is not only a testament to the UK’s commitment to fostering international partnerships but also an essential step toward achieving the global net-zero targets and promoting sustainable practices across the mining sector.
John Humphrey, His Majesty’s Trade Commissioner to Africa, UK’s Department for Business and Trade. Supplied by UK’s Department for Business and Trade
A Growing demand for critical minerals
The global pursuit of a low-carbon economy has amplified the demand for critical minerals. These minerals, essential for the development of clean energy technologies, are increasingly sought after by the world’s largest economies. The World Bank’s prediction that the production of minerals such as graphite, lithium, and cobalt could surge by nearly 500% by 2050 underscores the urgency of securing reliable sources for these materials. Similarly, the International Energy Agency’s “Net Zero by 2050” scenario highlights the necessity of significantly increasing mineral inputs by 2040 to meet global sustainability goals.
Africa’s wealth of resources
Africa, with an estimated 30% of known global mineral reserves, is poised to play a crucial role in supplying the world with critical minerals . The continent is rich in essential resources, including platinum group metals, cobalt, copper, bauxite, ilmenite, rutile, titanium, iron ore, manganese, and graphite. Notably, nearly 70% of the world’s cobalt is currently mined in the Democratic Republic of Congo (DRC). This abundance of resources presents a unique opportunity for African nations to leverage their mineral wealth to foster economic growth and development. However, the potential of these resources can only be fully realised through strategic partnerships and investments that prioritise sustainability and governance. Recent changes in leadership roles in countries such as Zambia, the DRC, Angola and Tanzania demonstrate a renewed commitment to attracting foreign investment and promoting positive policy changes across the mining sector.
Strategic partnerships and investments
In July 2021, the British Geological Survey identified 18 minerals that are vital to the UK’s net-zero ambitions. International collaboration, particularly with resource-rich partners like Africa, will be key to supporting achieve these ambitions The UK’s mining sector is already deeply embedded in Africa, with numerous British companies actively exploring and developing mining projects across the continent. These companies adhere to global best practices, working in full consultation with local governments and communities to ensure sustainable and responsible mining operations. Prominent UK firms such as Anglo American, De Beers, Rio Tinto and First Quantum Minerals are at the forefront of this collaborative effort, showcasing the UK’s expertise in driving sustainable mining practices. To further bolster these efforts, the UK is focusing on establishing robust environmental, social, and governance (ESG) frameworks that are fundamental for all mining projects moving forward. Companies with well-established ESG strategies are increasingly attracting investor attention, highlighting the importance of integrating these principles into all aspects of mining operations. The UK’s expertise in ESG represents a significant opportunity for both investors and African countries to enhance their mining sectors sustainably.
Recent policy changes and leadership shifts in African nations have created a favourable environment for foreign investment. Positive developments in regions such as Zambia, the DRC, Angola, and Tanzania have opened new avenues for collaboration, with British companies taking the lead in fostering these partnerships. Notable achievements in 2023/24, include direct investments totalling hundreds of millions of pounds of investment from British businesses into Africa’s mining sector. These successes underscore the UK’s commitment to supporting Africa’s mining sector through strategic investments and collaborations.
Meeting Africa’s mining needs
Africa’s mining sector presents a myriad of development-ready opportunities that require substantial capital investment. Many of these opportunities are in the critical minerals space and offer significant job creation potential along the value chain. However, understanding the quantum and quality of mineral resources is essential, necessitating expertise in geological surveying across various national geographies. Project finance and capital requirements are generally high for mine projects, further highlighting the importance of robust ESG frameworks to secure financial closure. Additionally, there is a growing need for mining and processing equipment, environmental, engineering, and project management consulting services, as well as risk, legal, financial, and corporate advisory.
Linked to the flourishing ambition of African governments to transform their critical mineral wealth into economic growth is the recognition of the need to simultaneously increase renewable energy and infrastructure capacity. This holistic approach ensures that mineral extraction and processing are aligned with broader sustainable development goals, fostering long-term economic resilience.
UK support for Africa’s mining sector
UK businesses are at the forefront of supporting Africa’s mining needs, providing a wide range of expertise and services. British exploration and mining companies are actively engaged in sustainable mining practices, working closely with local governments and communities. These companies are involved in numerous community initiatives, promoting job creation and skills transfer to ensure that the benefits of mining extend beyond the extraction of resources.
UK consulting, engineering, and project management firms are instrumental in various stages of mining projects, offering services that adhere to strict ESG frameworks. These firms provide essential support in areas such as lender-compliant environmental and social assessments, tailings and water management, net-zero disclosures, climate impact modelling, biodiversity rehabilitation, and the provision of clean energy. Their involvement ensures that mining projects are conducted responsibly, with a focus on environmental and social governance.
The UK’s investment community continues to seek opportunities within Africa’s mining sector, particularly in countries with strong corporate governance and stable policy regimes. Regular consultations with local governments help to increase investor confidence and create solid policy frameworks that attract further investments. As clean growth technologies continue to develop, the demand for critical mineral investment opportunities will only increase, reinforcing the importance of strategic collaborations.
In conclusion, the UK’s strategic commitment to Africa’s mining sector is a clear indication of its dedication to fostering sustainable economic development and securing critical mineral supplies for the future. Through robust partnerships, investments, and the promotion of best practices, the UK is poised to play a pivotal role in the global transition to a low-carbon economy. By harnessing Africa’s rich mineral resources and supporting sustainable mining practices, the UK is not only contributing to its own net-zero ambitions but also working together with African nations to achieve long-term economic growth and development.