Running discussion on SP, page-50361

*To Remind,

Trend toward green energy, decarbonization is an opportunity for African mining

Africa’s minerals sector should seize the opportunities presented by the global transition towards green energy, experts discussed during a virtual workshop on the future of mining in Africa post-COVID-19.

The webinar, organized by the African Natural Resources Centre and the African Legal Support Facility, both entities of the African Development Bank, in partnership with Nordic Africa Institute, was part of a series that is examining the impact of the pandemic on Africa’s extractives sector, particularly minerals, oil and gas.

The ongoing global transition towards green energy and rapid decarbonisation holds significant potential for Africa’s extractives sector, the participants heard.

One opportunity lies in growing demand globally for lithium, which is used in batteries for electric vehicles, smartphones and off-grid energy storage.

“Africa is strategically positioned to derive maximum benefits from the growing global lithium-ion batteries (LIB) industry,” said Dr. Cosmas Ochieng, Director of the ANRC, who moderated the event on 9 December.

In 2018, Zimbabwe and Namibia were among the top 10 global producers of lithium,(link is external) with Zimbabwe alone holding 11 million tonnes of lithium ore (link is external)in its Bikita mines in the country’s Masvingo region.

*African leaders must step up and include battery production as a continent-wide development priority, participants urged.

Among other themes discussed by the participants was the Africa Mining Vision (AMV), a policy framework created by the African Union in 2009 to ensure Africa utilizes its mineral resources strategically for broad-based, inclusive development.

“The realization of the Vision hinges on strong political will and a commitment to developing strong capable mineral management systems and institutions.

It requires an astute understanding of Africa’s relative advantages in the global mineral value chain,” said Dr. Antonio Pedro, Director of the Economic Commission for Africa’s sub-regional office for Central Africa.

In a presentation on drivers of the sector in the post-pandemic period, Dr. Kwasi Ampofo, metals analyst at Bloomberg New Energy Finance, said “adoption of renewable energy is rising in the mining sector.

Investments in renewable energy have increased significantly in the last ten years,” he said.

Ampofo urged African mining companies to take a lead in decarbonization of their operations and the transition to clean energy to attract ‘green’ funds.

About ANRC and ALSF

The African Natural Resources Centre (ANRC) is a non-lending department of the African Development Bank with a mandate to assist African countries to maximize development outcomes from natural resources.

The African Legal Support Facility (ALSF) is a public international institution hosted by the African Development Bank Group.

The Facility provides legal advice and technical assistance to African countries in the negotiation of complex commercial transactions, creditor litigation and other related sovereign transactions.


Lithium-Cobalt Value Chain Analysis for Mineral Based Industrialization in Africa


The world is about to witness a revolution in the transport system as countries and developmental organizations, at global and regional levels, ratify a raft of new laws and guidance on the adoption of the Electric Vehicle (EV).

Electrical vehicles offer an alternative to the internal combustion engine (ICE) in a bid to reduce the use of fossil fuel.

The solution to reducing fossil fuel emissions lies in the production of Lithium ion batteries (LIB), which use several mineral, among them lithium and cobalt (Li-Co), manganese, nickel, aluminium, graphite, rare earth elements (REE), iron, copper, as well as phosphate.

Though Li-Co metals and REE are relatively scarce, they are the core enablers of this transport revolution.

The African Natural Resources Centre (ANRC) of the African Development Bank interrogates natural resources management in Africa.

The mandate of the ANRC is to boost the potential for African governments to maximize development outcomes derived from Africa’s natural resources and thus achieve inclusive and sustained growth

The work covers both renewable (water, forestry, land, and fisheries) and non-renewable (oil, gas, and minerals) resources.

Currently, the ANRC is running a local content and value addition flagship which seeks to support the Bank’s regional member countries in developing policies, investment plans, governance frameworks and effective implementation strategies for local content and value addition in the extractive sector.

In a bid to industrialize Africa, which is one of the Bank’s ‘high five’ priorities, the ANRC is conducting value chain studies on selected minerals.

Lithium and cobalt were chosen because they are critical raw materials for the manufacture of rechargeable batteries, which are termed as Lithium Ion Batteries (LIB).

Most countries in Central and Southern Africa have significant lithium resources.

On the cobalt front, the Democratic Republic of Congo, has the largest mineral reserve of 3.6 million tonnes, equivalent to 51% of the global cobalt reserve.

Countries producing cobalt in Africa include DRC, Madagascar, South Africa and Morocco, with DRC alone producing 100,000t in 2019, equivalent to 70% of global production.

The study on the Lithium-Cobalt (Li-Co) value chain is intended to identify opportunities and challenges for value addition to the Li-Co resources in Africa.

The study will also explore policy options for establishing end-to-end industries in Africa which could produce finished products such as Electric Vehicle batteries, among others potential outputs.

The ANRC’s local content and value addition flagship is therefore designed to address the challenges that hinder value addition and deepen the domestic linkages in the economies of African countries.

This aligns with the Bank’s industrialization strategy, which aims to support the natural resources sector to contribute strongly to the industrialization of Africa.

Industrialization is important as an engine for economic growth, leading to technological innovation, job creation, trade and laying the foundation for the services sector.

The availability of diverse mineral wealth in Africa is one of the region’s strongest advantages and a significant lever to industrialize
Africa.

Among other knowledge products in the local content and value addition flagship in Africa’s extractive sectors that the ANRC is undertaking include: Rare earth elements value chain analysis for mineral-based industrialization in Africa


www.afdb.org/en/documents/lithium-cobalt-value-chain-analysis-mineral-based-industrialization-africa













Food for thought on the Road to Mining Manono


Frank