Africa: The US-China Rivalry Is Gradually Shaping Pan-African Mining Dynamics

The escalating confrontation between the United States and China is gradually influencing the dynamics of mining in Africa. Both superpowers have been aggressively investing in the continent's mineral resources, with China being the most prominent foreign mine operator and the US following closely behind. However, this intense competition may subject African nations to the geopolitical rivalry between Beijing and Washington.

Concerns have been raised that the US has conditionally tied bilateral health partnership agreements to access to US critical minerals, particularly in cases like Zambia. On the other hand, Chinese companies have faced criticism for poor worker treatment and reliance on Chinese labor for their projects.

African governments are increasingly pursuing partnerships with emerging countries and middle powers that offer financial and technical support, aiming for more equitable and less geopolitically exposed mining ventures. Turkey and the UAE, in particular, have been emerging as attractive partners, with Turkey signing a Memorandum of Understanding (MOU) with Nigeria to help the oil-dependent nation tap into its estimated USD 750 billion mineral potential.

Turkey has also signed agreements with Somalia to develop its uranium deposits alongside gold, copper, lithium, and rare earths.

The UAE, through firms like Emiral Mining and Alphamin Resources, has shown interest in pursuing mining operations in various African countries, including Mauritania, Ghana, Ethiopia, and Mali. Additionally, IRH acquired a majority stake in Zambia's Mopani Copper Mines, and N69 Holding is collaborating with Congo Kipay Energy to build a power plant in the Democratic Republic of Congo.

While the ongoing Middle East conflict may pose some challenges for continental mining investment, Turkey and the UAE remain committed to their involvement in African mining. Both countries view their engagement in Africa as central to their foreign policy and domestic objectives. As a result, foreign capital injection across the mining value chain is expected to continue, benefiting African countries with fairer deals and greater involvement in the mining sector.