World Oil and Gas Industry News’ Post

The article discusses the potential for Sub-Saharan Africa to benefit from its abundant critical mineral reserves amid the global shift towards clean energy. It highlights the significant role of countries like the Democratic Republic of Congo (DRC), South Africa, and Zimbabwe in critical mineral production. The region could see substantial economic growth from rising demand for minerals like cobalt, nickel, and lithium, with estimated revenues totaling $16 trillion over the next 25 years. However, to maximize benefits, the region must move beyond raw material exports and invest in local processing industries to increase value-added, create jobs, and boost tax revenues. This requires regional cooperation to develop larger, more attractive markets, streamline policies, and improve investment environments. Domestic reforms, including structural changes and improved financial access, are also crucial for sustainable development and responsible resource management.

"These mineral rich countries should not just be sources of these resources but should be hubs where processing and manufacturing happens". #Ethiopia #Africa #Energyaccess #PIDAWEEK

Julius Mwale Extra Africa FDI adds no value to the local economy. Africa needs a radical shift in prioritizing local investors. Julius Mwale is spearheading a transformative initiative in Zambia's industrial sector, focusing on enhancing local economies and maximizing the potential of local investors. Collaborating with President Hakainde Hichilema, Mwale's consortium is set to revolutionize Zambia's industrial landscape with a $2.4 billion investment plan. The strategic move to secure $150 million for exploring copper deposits near the DRC border positions Zambia as a key player in the global mineral supply chain, aligned with the energy transition goals. This visionary project aims to establish value-added industries, create job opportunities, and replicate past successes, promising a prosperous future for sustainable economic growth in the region. #FDI #AfricanTradeAgreement #IndustrialDevelopment #SustainableDevelopment

DRC is in the news, this time around, it’s about the role it’s likely to play in Europe’s green energy future given its vast deposits of critical minerals, copper and #cobalt in particular. Allow me to mention here that DRC commands two thirds of the world’s cobalt production and it’s no surprise that many developed nations are looking to the Congo as a suitable supply source of cobalt. As this demand grows, it’s my hope that we will start seeing investment inflows into the country that mirror the country’s development/growth agenda and catalyze local mineral value addition. Currently, DRC’s cobalt finds its way to #China where it’s processed, this for me represents a significant source of #revenue leakage. Perhaps DRC should now start thinking of convincing European investors to set up processing and battery manufacturing plants locally then shipping a finished product, this is where value is. This demand, for me, presents further opportunities for neighboring countries like #Zambia. Given the recent investments we’ve seen going into developing railway #infrastructure especially the Lobito Corridor, a 1300km railway 🚃 line connecting DRC and Zambia to the port in Angola, Zambia is guaranteed of safe and seamless passage of its minerals to Asia, US etc. My only hope is that as this scramble for critical minerals continues, we should prioritize local value addition and infrastructure development. These mineral rich countries should not just be sources of these resources but should be hubs where processing and manufacturing happens. Rafiki Energy 🔋

Insider's view: Transport Thorns and Infrastructure Needles, Zambia Zambia is a key player in the global copper market, ranking 7th in world production and 2nd in Africa. The copper industry is the backbone of the country's economy, generating about 70% of export earnings and 28% of government revenue. In 2023, Zambia produced around 870,000 tons of copper, and the government plans to increase production to 3 million tons by 2031. Most of the copper mines are concentrated in the Copperbelt region in the north of the country. As a buyer of Zambian copper, I want to share my observations on the state of the industry in 2024, focusing on a key aspect - the transportation of copper from mines to ports. The primary mode of transportation is by rail, with the main line running from the Copperbelt through Lusaka to the Tanzanian port of Dar es Salaam. The collapse of a bridge between Livingstone and Chingola in June 2024 exposed the vulnerability of this infrastructure, causing serious disruptions to supply, increased costs, and delays. When rail capacity is insufficient, copper is also transported by road to borders or ports. Up to a quarter of Zambia's copper is transported by road, especially during rail disruptions. The main export routes are: 1. Dar es Salaam (Tanzania) - the primary route with direct rail connection 2. Durban (South Africa) - by road or rail southwards 3. Walvis Bay (Namibia) - a less popular route The trucks used for copper transportation are typically heavy-duty models, such as flatbeds and tipper trucks, capable of carrying up to 30-40 tons of copper cathodes or concentrate. Some of the commonly used truck brands include Volvo, Scania, and Mercedes-Benz. To diversify routes, the Lobito Corridor project is being developed to connect the Copperbelt with the Angolan port of Lobito. However, dependency on a single main rail line remains a risk factor. Infrastructure limitations significantly impact copper transportation. Continuous efforts are being made to improve and expand the transport network, including the Lobito project and upgrades to existing infrastructure. As a buyer, I closely monitor these changes, as they directly influence the stability and cost of Zambian copper supplies to the global market. #ZambiaCopper #CopperIndustry #CopperTransportation #CopperExports #CopperMining #Copperbelt #MiningInfrastructure

DRC is in the news, this time around, it’s about the role it’s likely to play in Europe’s green energy future given its vast deposits of critical minerals, copper and #cobalt in particular. Allow me to mention here that DRC commands two thirds of the world’s cobalt production and it’s no surprise that many developed nations are looking to the Congo as a suitable supply source of cobalt. As this demand grows, it’s my hope that we will start seeing investment inflows into the country that mirror the country’s development/growth agenda and catalyze local mineral value addition. Currently, DRC’s cobalt finds its way to #China where it’s processed, this for me represents a significant source of #revenue leakage. Perhaps DRC should now start thinking of convincing European investors to set up processing and battery manufacturing plants locally then shipping a finished product, this is where value is. This demand, for me, presents further opportunities for neighboring countries like #Zambia. Given the recent investments we’ve seen going into developing railway #infrastructure especially the Lobito Corridor, a 1300km railway 🚃 line connecting DRC and Zambia to the port in Angola, Zambia is guaranteed of safe and seamless passage of its minerals to Asia, US etc. My only hope is that as this scramble for critical minerals continues, we should prioritize local value addition and infrastructure development. These mineral rich countries should not just be sources of these resources but should be hubs where processing and manufacturing happens. Rafiki Energy 🔋

Somebody said: When nature and corruption collide. The country #Zambia has an electricity deficit of 700 MW, severe drought and widespread corruption that is threatening the mining sector viability, massive debt that is a threat on bankable projects. #Energy is a key enabler that Zambia must sort out once and for all. Diversifying the power generation is key going foward. #EnergyDiversification #EnergyGeneration #EnergyPoverty #Zambia 12k eMobility Zambia | 12k Energy Southern Africa

AFRICA, WE MUST ACT NOW. Have a conversation with any big players on the buy-side and you will quickly realize that most of them are willing to sign long term extraction, processing contracts with mine owners, governments etc. It is however still an African mentality that we want our money now rather than later. We must realize and act quickly by taking advantage of available technologies, signing the right contracts, in order to benefit from the mineral boom

In case you missed it: The critical-minerals BOOM is HERE. Can AFRICA take advantage? Also see TOP mineral by Africa country (infographic). Technology is increasingly influencing the way people around the world live, creating opportunities in some cases and introducing new challenges in others. Just as important as a technology’s impact is the technology’s origin—or origins. Any given #technology can be traced back, through its individual components and #materials, to a number of sources. And the question about where those components and materials come from matters. Modern technology, economies, #livelihoods, and weapons depend on #criticalminerals such as #magnesium, #cobalt, #lithium, or even #copper. Where countries source these minerals makes a difference for national and strategic #security. Since #AFRICA is home to 30 percent of the world’s known critical minerals, the #continent is at the forefront of conversations. But currently, African nations aren’t getting their fair share of the benefits of the critical-minerals boom and buzz generated by the evolution of modern technologies. For that to happen, Africa will need more investment in its capacities to refine or add value to minerals within the continent; such investment could fuel a long-awaited boost in development. Africa is home to many critical-mineral reserves, but it is not home to industry that adds value to the minerals, such as the #processing and #refining of them. While Africa does have some processing and refining capacity for certain minerals, substantial value-additive steps across the sector remain absent. To be blunt, Africa will only reap the benefits from the critical-minerals boom associated with mineral extraction. Concrete action toward the goal of the development of long-awaited value chain enhancement and investment in the continent remains elusive.

While #Africa does have some #processing and #refining capacity for certain #minerals, substantial value-additive steps across the sector remain absent. To be blunt, #Africa will only reap the #benefits from the critical-minerals boom associated with #mineral #extraction.