While Africa is incredibly rich in resources, including oil, gold, and rare earth minerals, the continent has not yet reached its full economic potential, according to the International Monetary Fund.
Benchmark Mineral Intelligence says eight mines in countries like Tanzania, Angola, Malawi, and South Africa are expected to begin production by 2029, contributing 9% to the global supply.
This new supply is likely to be secured predominantly by Western and non-Chinese processing firms, the London-based industry consultant noted in a recent analysis, Bloomberg reported.
China mines approximately 70% of the world’s rare earth elements and refines nearly all of these materials. This group of 17 elements is essential for making magnets used in electric vehicles, wind turbines, and military equipment.
Beijing wields significant influence by controlling both production and exports. For instance, in December, China banned overseas sales of a range of rare-earth technologies.
The US and its allies are striving to establish supply chains independent of China. Despite 37% of the future African supply being earmarked for Chinese buyers, most of the production is “potentially available for ex-China and Western rare earth companies,” according to Benchmark.
Europe is currently leading in the development of processing facilities outside of China.
“China will not be the only beneficiary of Africa’s active, low-cost pipeline, which will also become strategically valuable for the EU and US,” it said.
None of the companies developing the African rare earth mines covered in Benchmark’s research—such as Pensana, Rainbow Rare Earths, and Mkango Resources—are Chinese-owned; all are registered in Western countries.
However, China’s customers will remain vital for some miners to ensure their projects’ viability, as Western processing capacity is not expanding quickly enough, the report added.
Notably, there is rising anticipation that Africa may emerge as one of the world’s wealthiest continents if it can properly harness the potential of its vast mineral reserves, some of which are the rarest in the world, according to the International Monetary Fund.
