Strategic and Critical Minerals: Overthrowing the neo-colonial model

A recent article by Ayesha Abrar discusses Africa's role in the global green technology revolution, particularly in the supply of critical minerals essential for renewable energy technologies. Despite abundant mineral reserves, Africa's mining industry operates under a traditional "pit-to-port" model, limiting its involvement in the value chain. The paper argues for Africa's potential to shift from being a raw material supplier to a strategic production hub, intensifying global competition. There is a need and an opportunity, the author says, to move beyond mere extraction by investing in local processing capabilities.

Key rare earth elements concentrated in Eastern and Southern Africa make the continent crucial for the energy transition. However, China's dominant position in mineral production raises geopolitical concerns, prompting the US and EU to seek partnerships with African nations. Australia, Japan, and other global players are also actively engaging in Africa's rare earth market.

The paper explores challenges associated with Africa's current mining model and how diversifying partnerships can reduce dependence on a single global power. The theoretical framework examines the geopolitical dynamics of strategic minerals and their impact on global power relations.

The US-China competition for critical minerals is highlighted, emphasizing the strategic importance of African nations like the Democratic Republic of Congo. Other global players, such as the EU, Australia, and Japan, are also making efforts to secure access to critical minerals and enhance their presence in Africa.

The traditional "pit-to-port" model in Africa faces challenges, including logistical hurdles and limited value addition within the continent. The text proposes strategic investments in infrastructure and local processing to reshape Africa's role in the global mining landscape.

African nations are diversifying partnerships to enhance economic resilience and negotiate favorable terms for resource extraction. This shift introduces nuanced dynamics to global power relations and may lead to strategic alliances and rivalries.

The theoretical framework adopts the dependency theory of the supply chain, combining qualitative and quantitative methods to analyze historical data, trade patterns, and relations with African nations. The conclusion emphasizes the need for collaborative efforts to address challenges such as historical exploitation, corruption, inadequate infrastructure, and geopolitical conflicts.

In summary, Africa's mineral wealth holds geopolitical significance in the global transition to renewable energy. The continent faces challenges, but strategic shifts in partnerships and investments could reshape its role and contribute to sustainable development.

The author's argument in favor of increased local mineral beneficiation contrasts with more mainstream publications denouncing a trend of rising resource nationalism in several resource-rich countries. To them, “state ownership can almost certainly exacerbate the instability of the world’s critical minerals supply” (see Richard Mills’ paper “A vicious cycle of rising resource nationalism”, 11 August 2023 in Mining.com).

Although resource nationalism does present a significant risk for the supply of critical minerals to countries that need to meet their targets on climate neutrality, one should perhaps also consider that most resource-rich countries do not have the capabilities to process their minerals fully; they will need outside expertise.