African leaders, mining experts, and global investors have gathered in South Africa for the annual mining indaba, where discussions center around Africa’s vast mineral reserves, comprising 30% of the world’s total, yet largely untapped.
South Africa’s President Cyril Ramaphosa highlights the continent’s potential to drive the global energy transition through mining.
Talks will focus on the race for critical minerals such as lithium, nickel, cobalt, manganese, and graphite, crucial for renewable energy technologies like solar panels and wind turbines.
Despite being the largest greenhouse gas emitter in Africa, mainly due to coal-fired power plants generating 80% of electricity, South Africa aims for a just energy transition. President Ramaphosa emphasizes balancing affordability, energy security, and creating new opportunities. The energy crisis complicates efforts to phase out coal-fired plants, making the transition challenging.
Many African countries export crucial mineral resources as raw ores, missing out on maximum value and contributing to exploitative labor practices. A lack of infrastructure further hampers efficient and cost-effective transportation of minerals to markets. The mining industry’s contribution to government revenues in the 15 most mining-dependent African economies stands at only 8%, according to the Natural Resource Governance Institute. African governments aim to negotiate for greater value and assert more bargaining power during the conference.