Why China is investing heavily in African push to bring mineral processing home
Chinese investors have backed mineral processing and manufacturing projects worth more than US$16 billion across Africa, a new report has concluded, amid an increasing push by countries to secure a greater share of the earnings from their natural resources. The continent is a major international supplier of key minerals such as copper, cobalt and iron ore, and countries such as the Democratic…
Chinese investors have poured over US$16 billion into mineral processing and manufacturing projects across Africa, according to a recent report by Beijing-based consultancy Development Reimagined. The continent is a significant supplier of essential minerals such as copper, cobalt, and iron ore, prompting countries like the Democratic Republic of Congo, Guinea, and Zimbabwe to impose export bans or restrictions to encourage domestic processing.
The study analyzed China's commitments under a 2024 action plan, finding that US$41.2 billion has been invested in 32 mining, exploration, and development projects in 15 African countries since June. Of these, 19 projects focus on mineral value addition, accounting for US$16.3 billion. These projects often involve processing, refining, or manufacturing in Africa, with the Simandou iron ore development in Guinea being the largest at US$23 billion.
Washington is also seeking greater access to critical minerals in Africa, with a December deal granting American companies preferential access to mining assets in the DRC. US-linked bidders are vying for rights to develop Kenya's Mrima Hill, which is rich in rare earths and niobium. Chinese President Xi Jinping has endorsed the push for more processing operations in Africa, offering support for mining development, financing, and technology transfer during a meeting with Botswana's President Duma Boko.
Chinese Foreign Minister Wang Yi stated that the implementation of the 2024 summit outcomes had nearly reached 100%. While competing investor interest could benefit African governments by attracting investment and technology at more favorable terms, stronger bargaining power may not necessarily translate into those advantages, as governments could still lose control over where their resources are processed and the value generated.
The report emphasizes the need for enforceable commitments on local processing, skills, and technology transfer to prevent governments from losing control over their mineral wealth.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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