With the rising global demand for environmentally friendly minerals such as lithium, copper and cobalt, countries in Africa are developing policies to regulate the exploitation and export of these vital resources.
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According to Conrad Onyango at the Bird Story Agency, Ghana has recently unveiled its own green minerals policy, aiming to oversee the responsible extraction and production of lithium while facilitating local business involvement in this lucrative industry.
Samuel Jinapor, Ghana’s minister of lands and natural resources, revealed that the policy has secured approval from the country’s cabinet and is awaiting final endorsement by the parliament before year-end.
‘The overarching goal of the policy is to ensure that the exploitation of these critical minerals inures works to the benefit of the people of Ghana, the true owners of these resources,’ Jinapor said in an official statement published by Ghana’s Land Ministry.
Jinapor emphasised that the primary objective of the policy is to ensure that the exploitation of these essential minerals benefits the people of Ghana, the rightful owners of these valuable assets.
Once ratified, this policy will serve as the foundation for all agreements, licences, permits and leases related to the utilisation and extraction of green minerals within the country.
Notably, Namibia and Zimbabwe, two other mineral-rich African nations, have already taken steps to regulate the export of unprocessed critical minerals. Namibia’s information ministry announced a ban on the export of unprocessed lithium ore, cobalt, manganese, graphite and rare earth minerals.
However, it will allow the controlled export of these minerals following approval by the mining ministry. Similarly, Zimbabwe enacted measures to restrict exports of processed concentrates, accompanied by plans to impose taxes on lithium concentrates intended for overseas markets.
Zimbabwe’s approach, guided by the Base Mineral Export Control Act passed in December 2022, encourages local processing of these minerals.
The spotlight is on five high-demand minerals – lithium, cobalt, manganese, nickel and graphite – found in these countries, with Zimbabwe alone capable of satisfying 20% of global lithium demand, according to data compiled by Energy, Capital and Power.
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The Democratic Republic of the Congo (DRC) currently contributes 43% of the world’s mined lithium supply, underscoring Africa’s potential for increased influence in controlling these essential resources.
The International Energy Agency’s (IEA) Critical Minerals Policy Tracker has identified almost 200 policies and regulations worldwide addressing critical minerals, with over 100 enacted in recent years. These measures often carry trade and investment implications, including import and export restrictions.
The IEA further highlights that global export restrictions on critical raw materials have risen fivefold since 2009.
‘Many of these interventions have implications for trade and investment, and some have included restrictions on imports or exports. Globally, export restrictions on critical raw materials have seen a fivefold increase since 2009,’ it said.
Among African countries, South Africa and the DRC have been proactive in implementing policies related to critical minerals since 2018. The DRC revised its Mining Code in 2018 to encompass strategic minerals, which are defined based on their significance in the current international economic landscape and geopolitical context.
These minerals are subject to a unique taxation framework requiring producers to pay 10% of the gross commodity value, the highest rate compared to other mining sectors.
South Africa, on the other hand, has developed an exploration strategy to attract mineral investment, stimulate mineral development, hasten new mineral discoveries and promote sustainable utilisation of mineral resources. This strategy includes streamlining regulatory procedures to expedite the processing of prospecting rights.
Looking ahead, the IEA’s Critical Minerals Market Review 2023 projects a more than tripling demand for critical minerals by 2030 under a ‘net zero’ scenario. The expanding market for electric vehicles, wind turbines, solar panels and related technologies has propelled investments and demand for these crucial minerals.
According to the review, significant investment growth in recent years has caused the market value of important energy transition minerals to reach $320 billion in 2022.
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Picture: Albert Hyseni / Unsplash