Invest more in energy transition minerals
The African mining sector is at a critical crossroad. It can no longer rely on minerals that have traditionally generated revenue, like coal, iron or even gold. Africa needs to pivot and invest more in the minerals needed in clean energy technologies. And there is no shortage of those on our mineral-rich continent.
The demand for such minerals are expected to triple by 2030 and quadruple by 2040. Demand for lithium is set to increase fivefold by 2040. Cobalt demand will double by then. The total market value of key energy transition minerals is projected to more than double in 15 years’ time.
It is likely to surpass revenue from coal production by more than 50%. This while coal output in Africa is expected to decline by 12.5% between 2024 and 2029 because of reduced investment.
Africa can play a key role in the energy transition, but in order to capitalise on this advantage, it must invest in not only the mining but also the processing of these minerals. By adding value through processing it will ensure that it can exchange its begging bowl for a seat at the table with those who have traditionally and are currently exploiting its natural resources for their benefit and their benefit alone.
