Players within Africa’s energy transition sector highlighted innovative financing mechanisms which can help drive the industry maximize value addition and beneficiation to local economies during the Leaders Forum at Critical Minerals Africa Summit on Thursday.
Marie-Chantal Kaninda, President, Glencore DRC announced that the firm contributed approximately $1 billion in revenue for the Democratic Republic of Congo (DRC) through royalty taxes in 2023.
She said the firm invested in processing facilities at two of its operational mines in the DRC (https://apo-opa.co/3AvKgjI) to enhance value addition of copper and cobalt resources.
“We export hydroxide cobalt, which is an intermediary product, and produce copper cathodes ready for cable manufacturing,” Kaninda explained, adding that 95% of Glencore’s workforce in the DRC is sourced locally, with many employees holding senior positions.
Speaking on the challenges facing Africa’s mineral value addition efforts, Carlos Lopes, Professor at the Nelson Mandela School of Public Governance, University of Cape Town, noted that a lack of adequate funding is a primary barrier.
Despite Africa’s GDP having doubled since 2000, he said, the continent is still perceived as a high-risk market by some investors. Lopes called for innovative local financial solutions to meet capital needs for value-addition projects.
“Africa pays the world’s highest interest rates, yet our potential is undervalued. We must be strategic in policy-making to fully capitalize on our resources,” he stated, emphasizing the drawbacks of exporting raw minerals for overseas processing.
Mfikeyi Makayi, CEO of KoBold Metals, underscored the role of innovation in reducing the high costs associated with critical mineral exploration and value addition. She highlighted the company’s AI-enabled exploration efforts backed by Silicon Valley investment, stating, “With 60 projects across 40 countries, including flagship initiatives in Zambia and new ventures in Namibia and Botswana, we’re focused on leveraging digital mining solutions to drive industrialization across the continent.”
Makayi added that the data generated through digital mining is vital for attracting investment and creating a more competitive and inclusive sector.
Sietse van de Woude, Senior Executive of Modernization and Safety at the Minerals Council South Africa, discussed the Mandela Mining Precinct initiative, a public-private partnership designed to fund and support mining sector innovation.
“Innovation is essential for critical minerals mining,” van de Woude said, adding that the initiative offers a platform for industry stakeholders to share best practices and collaborate on advancing operational efficiency and safety.
Distributed by APO Group on behalf of Energy Capital&Power.