Investors Looking for Mining Opportunities in Africa

Investors Looking for Mining Opportunities in Africa

Looking for the latest mining investment opportunities in Africa? Here is a broad roundup of some of the many mining investment opportunities in Africa.

Key investment opportunities:

Gold

Gold surged to new record highs in 2020, breaching the $2 000 / oz. mark in early August, after excellent, sustained commodity performance since the end of 2018.

This is welcome news for gold investors and mining companies as the price increase translates to improved profitability of mining companies’ existing assets, and can enable companies to scale up development of new developing gold mines.

Of Africa’s 710 gold mining projects, 289 are in early development (Grassroots through Feasibility). Expect considerable movement across these gold mining projects across the continent in the near future.

Gold miners with strong assets, expansion and exploration opportunities and lower production costs are seen as the most attractive choices for gold mining stock (including royalties, exchange traded funds, etc.). These miners can leverage the highest gains from the metals’ increase in value, and therefore further develop strategic assets faster.

Here is a breakdown of Africa’s mining projects according to projects phase (minimum 10 mining projects):

Rhodium

The value of rhodium soared in the first few weeks of 2020, hitting a spot price of $8 750/oz. on 17 January – the first time it had reached such a high since 2008. There has been a steady increase in value since 2018, with the recent spike beginning in December 2019. It is now 5 times more expensive than gold!

Spot price of rhodium in USD per oz., Jan 2008 – Jan 2020.

Demand for rhodium is being driven by stricter emissions standards in vehicles around the world (rhodium is used in exhaust system to convert toxic gases like carbon monoxide / dioxide and nitrogen oxide into less destructive materials). It’s also extremely rare – over 80% of primary rhodium supply is produced in South Africa, beneficiated from nickel and platinum ores.

Lithium

Experts predict 18% growth per annum in lithium until 2030. With 18 lithium mining projects at varying stages of development, from grassroots to operational, Africa will be a major player in meeting long-term demand.

The mineral’s price is expected to increase over the next eight to 15 months, with market commentators predicting demand to continue rising with major increases expected in 2021 and into 2022.

Longer-term scenarios continue to show strong growth for lithium demand over the coming decade.

Africa’s lithium mining projects, by country.

Africa's lithium mining projects, by country.

Demand is forecast to exceed 1.0 Mt LCE (Lithium Carbonate Equivalent) in 2027, with growth in excess of 18% per year to 2030.

Copper

A staple electrical conductor in many categories for almost 200 years, copper is also seeing increased demand from the alternative and renewable energy markets. Renewable energy harvesting, battery energy storage, electric vehicles, cell phones and towers, computers, cars, smart homes, pipelines and super tankers all rely on copper.

Copper supply in Africa is dominated by the DRC, with 34 mining projects, and producing 1,5 Mt, and Zambia, with 28 mining projects, and producing 950 000 tons in 2019. South Africa is a distant third, with 82 000 tons.

Here is a breakdown of copper mining projects per country, according to project lifecycle:

Grassroots

Grassroots

Pre-feasibility

Pre-feasibility

Feasibility

Feasibility

Active

Active

Palladium

The price of palladium skyrocketed to new records in March 2020, reaching a new high of $2 877.90/oz., up from the previous record high of $2 224.90/oz. in January 2020. Palladium is 80% more expensive than it was a year ago and has seen more than a 400% rise from its $450/oz. in 2016.

It is a primary component used in catalytic converters, where it is used to help turn toxic pollutants into less harmful carbon dioxide and water vapour. Worldwide, governments are tightening their air pollution regulations, which translate to increased palladium in motor vehicles and therefore increased demand. In China, new emissions standards require 30% more palladium per vehicle, leading to substantially higher demand for the mineral in that country.

PGM mines & mining projects, by mining company (minimum of 3 projects).

PGM mines & mining projects, by mining company (minimum of 3 projects).

In addition to 31 operational mines in South Africa and Zimbabwe, there are a number of mining projects in various phases of development, including 2 Grassroots projects, 12 Pre-feasibility, 7 Feasibility, 2 Bankable, 9 Active and 6 Completed projects.

A number of mining companies are active in the palladium industry:

Investors, OEMs and suppliers should take advantage of the rapidly expanding business opportunities within this industry.

Nickel

Market experts predict that international demand for nickel will rise in the medium term, calling for investment into the sector. Medium-term prospects are positive with expectations that the market should equalise by 2024 and move to a deficit during 2025.

There are currently 44 nickel mining projects in Africa spread across 14 countries in various stages of development.

Nickel mines, per country.

Nickel mines, per country.

Growth in the stainless steel market (one of the largest nickel processors) and the uptake of nickel in the market for lithium batteries are two important factors that will determine the increase in demand. (Demand from the electric vehicle market alone is expected to increase 1 000% over the next 10 years.) An average annual nickel deficit of 60 kt through to 2027 is forecast, bringing nickel prices close to $25 000 / ton by 2025 and $28 000 / ton by 2027.

Closing in on 2000 mining projects

For investors seeking projects to fund, as of October 2020 there are 30 different minerals mined across 1 947 African mining projects. All of these projects are listed on Africa Mining IQ (AMIQ). The minerals mined are:

  • Aluminium
  • Copper
  • Diamonds
  • Emeralds
  • Fluorspar
  • Gold
  • Graphite
  • Ilmenite
  • Industrial
  • Iron Ore
  • Lead
  • Limestone
  • Lithium
  • Magnesium
  • Manganese
  • Nickel
  • PGM
  • Phosphate
  • Potash
  • Rare Earth Minerals
  • Ruby
  • Rutile
  • Silica
  • Tantalum-tantalite
  • Tin
  • Tsavorite
  • Uranium
  • Vanadium
  • Zinc
  • Zircon

Number of mining projects in Africa, per mineral.

Number of mining projects in Africa, per mineral.

Project Contact Information

Africa Mining IQ is the ONLY African mining intelligence database that guarantees a key contact per mine owner / project engineer or project supplier. All African mining projects are carefully researched and verified by a team of researchers.

 

Africa Mining IQ Reporting

In depth analysis reports delve into African mining project statistics such as number of projects per region per phase, and have been created for you to download and use for tendering and project tracking purposes.

Tracking and reporting on African mines and African mining projects is part of the mining intelligence service available.

Over 170 companies rely on Africa Mining IQ to help them drive business within the African mining industry.

Browse mining in Africa by country:

From South Africa to Morocco, Africa Mining IQ covers the continent’s mining projects with up-to-date intelligence. Our mining in Africa database covers 38 countries, including:

Browse projects by lifecycle

By providing in-depth intelligence about mining projects, categorised according to mine lifecycle or development phase, Africa Mining IQ allows suppliers to hone in on projects requiring their services and equipment in the regions they support or want to grow.

Grassroots:

Services required: “Desktop / Concept” Studies before any groundwork is done and “Grassroots Exploration” through perimeter drilling; reconnaissance and evaluative forays (preliminary geological or engineering survey).

Suppliers providing services to grassroots mining projects should look to South Africa, Mali, Burkina Faso, Ghana and Botswana for new business, although a number of other exciting projects also exist across the continent.

Pre-feasibility

Services required: Aeromagnetic / geophysical surveys, mapping, geochemical and soil sampling, core sample drilling, modelling and infill drilling to confirm resource and grades of the orebody.

The highest number pre-feasibility mining projects are held by South Africa, Namibia, Mali, Tanzania, Botswana, Burkina Faso and the DRC. Together, they account for close to 70% of the continent’s pre-feasibility projects.

 

Feasibility

Services required: Mine, equipment, and best process method planning; funding; Environmental Impact Studies (EIS); engineers/consultants for scoping studies and various types feasibility studies; OEMs, suppliers of goods and service providers.

Approximately 20% of Africa’s mining projects in the feasibility stage are in South Africa, while Senegal, Tanzania, Botswana and Mozambique also have developing projects.

 

Bankable

Services required: Balance of funding; architectural planning, design and consulting through Engineering, Procurement, Construction Management (EPCM) / Engineering, Procurement Construction (EPC); OEMs, suppliers of goods and service providers.

South Africa, Eritrea and Tanzania lead the continent in bankable projects, with 12, 10 and 10 respectively. These account for over 60% of Africa’s projects in this phase.

 

Active

Services required: Civil works, construction, infrastructure, shaft-sinking, process plant construction, accommodation, roads, etc.

The Democratic Republic of Congo and Mozambique feature several active projects, while South Africa has the lion’s share with over 30.

 

Operational

Services required: Expansion, refurbishment and aftermarket, including maintenance, repairs or replacements services or goods/products.

South Africa accounts for over half the total projects on the continent in this phase, while Zambia, Namibia, Botswana, the DRC and Ghana also feature a number of operational projects with a growing need for equipment and services.

 

Regional summary

Africa offers a wide range of valuable minerals, making it a region of interest to international mining investors. All regions across the continent differ with regards to ore deposit types and quantities.

Southern Africa

The Southern African development Community produces two-thirds of Africa’s mineral exports by value. South Africa has almost all commodities essential for international competition except for crude oil and bauxite. Zimbabwe and South Africa combined hold the majority of the world’s PGM reserves. Botswana is the world’s largest diamond producer by value, followed by Angola. Other key mineral producers in southern Africa are the DRC, Namibia, and Zambia, producing copper and cobalt, uranium, and copper respectfully.

East Africa

Tanzania is the largest regional miner of tanzanite and gold, the latter being East Africa’s biggest resource, with exploration for nickel and uranium also conducted. Gold reserves in the country are estimated at over 30 million ounces. Burundi also offers gold reserves, as well as copper, cobalt, nickel and uranium deposits. Kenya, another country in the East African Community, is focused on gold.

Central and West Africa

Considered boom areas for iron ore exploration and mining, the region is also host to gold and diamonds. The revival of rail ports has seen mines opening in Guinea, Liberia and Sierra Leone among others, although the percentage of export generated by minerals is negligible compared to that of petroleum and crude oil.

North Africa

North Africa is host to almost 85% of global phosphate reserves, with Morocco holding the lion’s share of high quality phosphate rock on the continent. The region’s mined phosphate contributes about a quarter of the world’s output, and is used in fertiliser production.

Mining projects per country

Investors looking to invest in mines or suppliers interested in mining projects benefit from the high number of projects across most African countries.

Number of mining projects in Africa by country.

 

Want to get leading mining project investment insights, analysis and intelligence? You need Africa Mining IQ!

Africa Mining IQ is Africa’s largest online mining information service, with approximately 2 000 mining projects tracked. It’s used by over 3 000 subscribers to identify new business opportunities; track the latest investment trends and commodity performance; and establish contact with mine owners and suppliers. With access to the latest African mining intelligence, investors, Original Equipment Manufacturers and service suppliers can identify and react to new opportunities quickly and competitively.

 


Benefits of being an AMIQ subscriber

  • Current, relevant and accurate mining information on over 2 000 African mining projects and unlimited access to regularly updated mining intelligence.
  • Real-time mining intelligence on mining projects with advanced reporting, graphs and regional statistics, mineral types and development phases.
  • Detailed project updates that follow the progression of a mine, or any other mining project listed, from grassroots phase right through to the operational phase.
  • Key contact details of mine owners, project engineers and contracting agents for every project listed.
  • Customised solutions for information relevant to your line of work including daily or weekly alerts and notifications on mining projects you track.
  • Multiple user access for mining project tracking – from pre-feasibility through to completion.
  • Built-in currency converter for accurate values on mining projects in the currency of your choice.
  • Capital value estimates updated daily.
 
  • Track and target over 2 000 projects

  • Key contacts – guaranteed

  • Critical insight to your key markets

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