‘Massive shift ahead for mining in Africa as bans on unprocessed mineral exports surge’ 30 September 2023

The recent announcement of a US$500 million lithium refining facility in Ghana is the latest sign that moves by African nations to restrict the flow of unprocessed minerals from the continent may be bearing fruit. Ghana has known lithium reserves of some 35 million tons. Earlier this year, the country passed its Green Minerals Policy, which, amongst other things, restricts raw mineral exports. A consortium led by CAA Mining Ltd, Luxembourg-based Livista Energy and Livista's local subsidiary, Livista Ghana Ltd. has secured a 200-acre plot for the project, according to mining news publisher, Africa Mining Market. CAA Mining's CEO expects the facility to open in 2026, according to Africa Mining Market with the establishment of the refinery linked to a license to explore for further lithium deposits.

…"There will battery producing companies, vehicle assembly plants and many other job opportunities," said the UK-based mining executive, who has deep experience in the mining industry in West Africa as well as in Zimbabwe. In July, Prospect Lithium Zimbabwe, a subsidiary of the Chinese mining company Zhejiang Huayou Cobalt, inaugurated a US$300 million lithium processing plant in Zimbabwe. The facility boasts the capacity to process 4.5 million metric tons of hard rock lithium into concentrate for export annually. Chikohora expects lithium from Zimbabwe to be amongst the feedstock refined in Ghana. Other regional producers include the Democratic Republic of Congo, Sierra Leone, Mali, Namibia and South Africa. "There are only two places where lithium is refined in the world, and that is China and the US. In Africa, there is no refinery for lithium," Chikohora said. The Ghana refinery is to be powered by locally-secured natural gas.

…With an eye on the future, more mineral processing facilities are on the horizon, with Mozambique, South Africa, Namibia, and the DRC poised to witness the most activity. A report by the World Bank titled ‘Africa’s Resource Future’ sheds light on the economic potential of Africa’s resources, indicating that these nations currently capture only about 40% of the revenue they could potentially derive from natural resources. “Maximizing government revenues in the form of royalties and taxes paid by private natural resource industries, alongside attracting new investment, would offer a double dividend for countries,” James Cust, a senior economist and co-editor of the report by the World Bank, explained.