The African mining sector is at an exciting juncture in 2025. Three macro trends are converging simultaneously within the industry, creating opportunities for mining operators, African governments and communities alike.

These trends include the west’s growing interest in Africa’s mining resources – aimed at matching the strides made by eastern competitors led by China – the just energy transition and the ever-growing influence of the Agreement Establishing the African Continental Free Trade Area (AfCFTA).

The interaction of these trends creates new complexities for operators and governments to navigate, yet the benefits of shared investment and economic growth across the continent are expected to outweigh the challenges posed by such complexities. The key challenge facing the continent’s political leaders is whether the right environment can be created to capitalise on what may be a generational opportunity to reset the African structure of economies in a manner that fosters industrial development and maximises the benefits accruing to the citizens.

Western nations seek to close the gap with China in Africa

Geopolitics and financing play important roles in influencing the behaviour of key actors in the global mining industry. China’s rapid economic growth was a major driver of the global commodity boom of the early 2000s. While demand for commodities has fluctuated since then, China has continued to strengthen its strategic positioning in key mining jurisdictions on the continent, such as Zambia, the Democratic Republic of the Congo (DRC), Zimbabwe and Namibia.

For example, in 2022, China owned 72% of all cobalt and copper mines in the DRC, with Chinese mining and battery companies investing approximately US$4.5 billion in lithium mines over the recent years, including in Namibia and Zimbabwe. Recognising the gap that exists between themselves and the east, western nations and companies are increasingly competing as a source of investment or finance for operators on the continent as the race for rare earth metal intensifies.

Given the ongoing geopolitical tensions since the entry of Donald Trump into the political stage in 2017 and the evolving political dynamics in Europe, competition for African battery minerals between east and west is likely to increase. Underpinning these manoeuvres worldwide, and the heightened status of the DRC and Zambia in the global mining sector, is the energy transition from fossil fuels to green energy.

Key metals, electric vehicles and policy stability

China correctly identified early on that copper, lithium, nickel and cobalt would be the commodities crucial to the future development of battery and computing technology. The country’s dominance of the electric vehicle (EV) space, for example, is in part due to its preponderant access to these key resources. Production of EV batteries requires cobalt, nickel and lithium, and the creation of large batteries needed to store the energy generated by solar and wind power, likewise requires these minerals.

Based on conversations with operators in the sector, mining investors are not just paying attention to where minerals are located in Africa but the policy environment in the countries housing these resources.

Investors have continued to invest in these countries due to the quality of the deposits located there (for instance, the DRC), but Namibia and Zambia have garnered greater attention partly because of their political stability, policy predictability and lower levels of corruption according to Amnesty International.

A further influence on the behaviour of African governments is that they no longer want to house the extraction and export of commodities. Recognising the crucial role rare earth metals play in the transition from fossil fuels, there is growing sentiment across the continent that Africa’s economies must go beyond that of a supplier of materials and evolve into a participant in the value chains of the future. AfCFTA is fundamental to changing that narrative.

The AfCFTA Agreement and localisation

The objectives underpinning AfCFTA extend beyond mere intra-African trade. AfCFTA addresses a broad milieu of other factors such as trade, including logistics and energy infrastructure, and seeks to ensure predictability at borders to facilitate the movement of goods from one market to another. Crucially, it also emphasises localisation.

Most mining equipment used in Africa is not manufactured in the continent, with a significant portion being imported, particularly from China. The continent’s inability to manufacture its own mining equipment, with a few exceptions, represents a missed opportunity for job creation, skills transfer and locally driven manufacturing.

When a miner purchases Chinese machinery, the manufacturer often sends a team from China to maintain and, depending on the task, operate the machine. This creates a skills dependency that can only be fulfilled by the manufacturers themselves. Western miners followed the same playbook in the past. From an ESG (environmental, social and governance) perspective, such practices represent a missed opportunity.

An exciting example of how the AfCFTA can drive trade and economic beneficiation, driven by the finance of western and eastern investors, is the rules of origin. In simple terms, goods or parts manufactured on the continent receive preferential tariffs when moved across borders to markets within Africa, as well as to the United States and the European Union.

As a result, eastern and western investors have a greater incentive to establish manufacturing facilities on the continent, which provides an opportunity to use local commodities as inputs for these goods.

If localisation can be achieved at scale across the continent, new supply chains, subsidiary economies and manufacturing bases can develop, which can drive economic growth across entire countries, benefiting hundreds of local communities. Getting there requires governments and operators to recognise the opportunities created by AfCFTA and foster an enabling policy and regulatory environment.

It is in the interest of the mining countries to consider what it would take to establish mineral trading platforms on the African continent. The design of such platforms should ensure a significant portion of revenue from trade conducted on such platforms remains on the continent to support the economic development and value addition on battery and other minerals.

The theme of the 2025 Mining Indaba, “Future-proofing Mining Today”, underscores the urgency of aligning policy, investment and community development to secure sustainable growth. By leveraging the opportunities presented by the west’s growing interest in Africa’s resources, fostering localisation through AfCFTA, and embracing innovation, African governments and operators can not only navigate the complexities of these trends but also position the continent as a global leader in the value chain for critical minerals.

The steps taken today to build resilient and inclusive economies will shape the mining sector’s ability to thrive in a dynamic and competitive global landscape for generations to come.

Jonathan Veeran

Meluleki Nzimande

Tobia Serongoane

Webber Wentzel

Image credit: Freepik

600SA, a division of CFAO Equipment, has secured the sole distributorship of the PESCI® COPMA® range of truck-mounted cranes in South Africa and sub-Saharan Africa.

Sonia Pretorius, national sales manager for 600SA, says the business has built, imported and distributed cranes for more than 50 years and is well-known for its truck-mounted equipment.

“The PESCI-COPMA crane range was the obvious choice for us because of the cranes’ unique knuckle-boom feature, which makes them more flexible than any other cranes on the market. This type of product is also what our customers have specifically asked for,” she adds.

The flexible knuckle-boom feature of the PESCI-COPMA truck-mounted crane allows operators to lift loads that are directly alongside the vehicle – something other cranes’ boom configurations don’t allow them to do.

The PESCI-COPMA cranes can lift loads ranging from 2 tonnes per metre to an impressive 75 tonnes per metre, and to a maximum vertical height of 29m, depending on their size and functionality.

The mobile nature of these cranes makes them attractive in a host of contexts such as mining, construction, logistics, municipal infrastructure projects, rescue services, road utility services, agriculture and rigging.

600SA’s strategic focus for PESCI-COPMA will be to strengthen its established market share while driving growth into the sub-Saharan African market.

“Our dealer network across the regions and decades of experience servicing cranes in South Africa and the broader sub-Saharan Africa ensure our role as a trusted partner. We offer comprehensive servicing and repair solutions seven days a week, ensuring minimal downtime and maximum efficiency for our customers,” says Pretorius.

“We are excited about this new opportunity: Five decades of experience, combined with our expertise, footprint and reputation for reliability, mean we are perfectly positioned to effectively support this unique and high-performing brand.”

Erika Montuschi, CEO of CPS GROUP S.P.A., says the partnership between CPS GROUP S.P.A. and 600SA marks the launch of the PESCI-COPMA knuckle-boom brand, a groundbreaking synergy of COPMA’s cutting-edge mechatronic technology and PESCI’s legacy of hydraulic innovation. “As one of Italy’s pioneering crane brands, established in the late 1800s, PESCI now embarks on a bold journey to deliver unparalleled lifting power and flexibility.

“We are thrilled to partner with 600SA to bring the PESCI-COPMA brand to life. Together, we are confident in our ability to not only meet the rising demands of the South African and sub-Saharan markets but also to showcase advanced heavy lifting machinery that sets a new global standard for innovation and performance.

“This collaboration marks an important step for CPS GROUP S.P.A., a globally recognised manufacturer of high-quality lifting equipment such as truck-mounted knuckle-boom cranes, loader cranes and hook-lifts. With a focus on innovation, reliability and advanced hydraulic technology, the group continues to raise industry standards through cutting-edge solutions and strategic partnerships – driving progress in heavy machinery worldwide,” concludes Montuschi.

Vale and Caterpillar have signed a new, five-year global framework agreement, to strengthen the collaboration between the two companies. Among the objectives are increased focus on productivity and innovation, including carbon reduction initiatives.

The companies also reaffirmed their commitment made in April 2024 to cooperate towards development of a dual-fuel haul truck, powered by diesel and ethanol. Vale also intends to test a battery electric haul truck and the Cat© Dynamic Energy Transfer System (DET) under development by Caterpillar.

“The framework agreement represents an evolution in our relationship with Caterpillar, amplifying our focus on maximizing the performance of Vale’s assets and allowing us to advance on our decarbonization path in an economically responsible way,” says Marco Braga, Vale’s Procurement Director.

“The agreement with Vale reflects our commitment to developing solutions that support our customers’ operational and sustainability goals,” says Denise Johnson, group president of Caterpillar’s Resource Industries segment.

Access Bank PLC is set to host its first-ever Africa Trade Conference (ATC), a landmark event focused on advancing Africa’s economic transformation under the theme, ‘Empowering Africa Through Trade, Innovation, and Sustainable Growth’.

Scheduled for March 12, 2025, in Cape Town, South Africa, the conference is poised to bring together the most influential voices in trade, finance, and policy to address the future of commerce across the continent.

With Africa’s trade finance gap estimated at $81 billion annually, the conference aims to tackle the systemic challenges hindering trade, particularly for SMEs and domestic firms. By fostering collaboration among key stakeholders, the Conference will explore innovative solutions, sustainable trade practices, and strategies for expanding African economies into global value chains.

Roosevelt Ogbonna, Group Managing Director/Chief Executive Officer, Access Bank PLC, emphasised the importance of the Africa Trade Conference, in addressing these pressing issues. “The Africa Trade Conference represents a crucial step in redefining Africa’s trade potential. By creating platforms for dialogue, innovation, and actionable solutions, Access Bank is enabling African businesses to connect and thrive in the global economy.”

Benefiting from South Africa’s role as a global pioneer in Proximity Detection Systems (PDS), other countries in the region are embracing this safety and monitoring technology to great effect.

“South Africa is leading the drive for PDS deployment due to its legislation, but the country is also probably the most experienced in the world on this topic,” says Anton Lourens, CEO of Booyco Electronics. “We have seen that most Southern Africa mines are adopting technology and solutions that have been deployed and proven in South Africa.”

Lourens notes that most of Booyco Electronics’ solutions and products are suitable for rollout in neighbouring countries, as they can meet local compliance standards. At the same time, the company drives a continuous improvement programme to meet global best practice.

“The flexibility in our offering – facilitated through firmware optimisation on a universal hardware platform – ensures that we can effectively meet new customer demands without re-inventing the wheel for specific needs,” he explains.

Controlling dust during material transfer has become a pressing challenge in mining and industrial operations, particularly as environmental regulations tighten and safety standards rise.

Dust emissions can pose significant health risks to workers, affect local communities and damage nearby ecosystems. In response to these concerns, Weba Chute Systems has emerged as a leader in the design and manufacture of advanced transfer chutes, with solutions specifically engineered to minimise dust generation while improving overall operational efficiency.

Mark Baller, Managing Director of Weba Chute Systems, explains how traditional chutes were once seen as basic components, designed simply to move material from one point to another. “Early chutes were often little more than boxes,” he says, “with minimal attention paid to the broader implications of their design, such as dust control or material degradation.” Over time, however, as industries have prioritised safety, efficiency and environmental responsibility, the role of transfer chutes has transformed. Now, they are considered essential tools for controlling dust and optimizing material flow.

Weba Chute Systems evolution

Weba Chute Systems has been at the forefront of this evolution. Its chute designs incorporate sophisticated features such as the “supertube” principle, which regulates the flow of material and reduces the turbulence that typically leads to dust generation. By creating a smoother, more consistent stream of material, Weba chutes can significantly limit the escape of fine particles at transfer points. This, in turn, reduces the amount of dust that can be carried by the wind, helping to protect nearby communities and ecosystems from pollution.

Since its official introduction earlier this year, the Weir Modular Wheeled Plant (WMWP) has generated a lot of interest amongst customers in southern Africa. This was particularly apparent at Electra Mining Africa, where the first commercial unit on display was one of the major attractions on the company’s stand.

From inception, the introduction of the WMWP concept was aimed at addressing specific customer needs in the market. Based on Weir’s feedback collection, the most relevant and useful aspects of the design were always going to be mobility and ease of deployment – parameters of paramount significance to contractors who seek to easily move their plants on and between production sites.

“Given that the design of the WMWP concept addresses these specific customer needs, we have seen immediate acceptance in the marketplace. In addition to mobility and ease of deployment, the concept offers the flexibility of a mobile plant and the productivity of a static plant. From an economic point of view, customers can also enjoy the mobility of the plant without the complexity associated with additional maintenance obligations for components such as diesel engines and tracks related to mobile tracked units,” says Hakan Karlsson, Director Crushing and Screening at Weir.

Weir Modular Wheeled Plant

Weir used Electra Mining Africa to showcase its first commercial unit, the Weir Modular Cone/Screen WMWSC36-5162, a combination of a TRIO® TC36 cone crusher and a TRIO® TIO 5162 double-deck screen on a single trailer. The plant can be operated as a standalone unit or as part of an existing plant. It can also be integrated as a fully mobile solution, highlighting the versatility of Weir’s wheeled modular plant offering.

Driven by its MissionZero strategy, FLS invests in sustainable technology development to underpin increased mining output – especially of those minerals in growing demand by economies moving toward a lower carbon future.

One such mineral is copper, which is essential for a vast array of decarbonising technologies, according to Alistair McKay, FLS Vice President for Capital Sales in Europe, Arabia and Africa. The European Union has recognised the importance of these commodities in its Critical Raw Materials Act, which defines both strategic and critical minerals.

“In the category of critical minerals, there are 16 commodities which are vital,” says McKay. “A shortage of these minerals could derail economic activity, so we have put our weight behind industry efforts to raise levels of sustainable production.”

FLS therefore commits over 50% of its substantial research and development budget to technology that will have a noticeable impact on reduction of carbon emissions, as well as on water and energy consumption whilst improving plant performance. Among its innovations is the rail-running belt conveyor, which has proved itself to be a gamechanger in energy efficiency and operational flexibility. It can reduce the carbon footprint of operations by between 20% and 90% – with commensurate savings in energy costs.

Leading dewatering pump solutions provider, IPR (Integrated Pump Rental) is taking a significant step forward in its service offering following its acquisition by Atlas Copco’s Specialty Rental Division. With this strategic move, IPR is poised to bring the same rapid-response service that its South African customers have come to rely on, to mining sectors across Southern Africa.

Mining operations across Southern Africa are often challenged by heavy rainfall, groundwater infiltration and operational water management issues. Efficient and reliable dewatering solutions are critical for minimising disruptions, safeguarding operational continuity and maximising productivity. IPR’s newly expanded footprint, supported by Atlas Copco’s vast resources and regional presence, ensures that mining clients in neighbouring countries will now have easier access to high quality pump rental services, faster response times and broader technical support.

Leveraging Atlas Copco’s Strengths

Atlas Copco’s Specialty Rental Division is known globally for its comprehensive service offerings, providing critical equipment for various industries including mining. Through this acquisition, IPR is now able to leverage Atlas Copco’s extensive regional footprint, advanced logistics and strong presence in Southern Africa’s mining hubs. This allows IPR to provide rapid service responses to customers in remote mining locations with greater efficiency.

Customers will benefit from faster access to dewatering pumps and solutions as the acquisition enhances IPR’s ability to deliver both diesel-driven surface and electric submersible pumps quickly across borders, minimising downtime for mines experiencing water management challenges.

CAPE TOWN, February 2025 – An engagement at the current Investing In African Mining Indaba event came to a heartwarming climax when a major mining company committed to enhance its local procurement in DRC in response to insights from a local community organiser.

The incident came at the end of a session titled “Disruption required – time for a new deal for local communities”, which discussed how communities in Africa too often fail to gain the full economic benefits of having mining companies invest in their areas.

Speaking during the panel discussion, activist Emmanual Umpula Nkumba, Executive Director of African Natural Resources Watch, said that the news that a mining company was to begin mining in a community often brought hopes for development and jobs, but the outcomes were often far less than promised, while the negative impacts of mining – poverty, pollution, resettlement and human rights violations only came to light later.

“It’s a grave issue,” noted panel moderator David Sturmes-Verbeek, Co-Founder and Director of Partnerships & Innovation at the Impact Facility. “In many ways, the system has failed.”

In response, Daniella Savic, Head of International ESG Compliance at Eurasian Resources Group – and the only mining-company representative on the panel – described her company’s approach to involving communities in its operations, which employ 69 000 employees in 12 countries.

“We work to ensure that host communities are enabled to have early and continued participation in decisions that affect them,” she said. “We are here to take decisions together. We take a multi-stakeholder approach, working closely with NGOs and ensuring workers have access to collective bargaining.”

Omaojor Ogedoh, Executive Director of the Ziva Communities in Nigeria, described the situation in his home country, where the mining industry is experiencing a recovery driving by artisanal and small-scale mining, after becoming moribund during the oil boom.

“There have been some positive impacts – such as job creation, increased revenue and skills development, but the negative effects have been perhaps more significant, which is worrisome,” he said.

Ogedoh mentioned mass displacements, fatal accidents and the Zamfara lead-poisoning disaster, which led to the deaths of hundreds of people.

“Another major impact is climate change,” he said.

Sturmes-Verbeek noted that the elephant in the room was that governments were the stakeholders who were supposed to be regulating the sector for community benefit.

In response, Nkumba said that the challenge was not just the mining laws but the way they were implemented.

“For me, the problem in DRC is not about the law,” he said. “We have one of the most improved mining laws in Africa. The challenge is state agencies have problems of capacity, and conflicts of interest, and companies sometimes circumvent those laws.”

Savic replied that because ERG operated in 12 jurisdictions, it avoided the complexity of multiple regulatory regimes by choosing to adhere to the highest community and environmental standards at all times.

“We are committed to the Copper Mark assurance framework in Congo, and we understand that ESG compliance is a must, if you want to integrate your mines into global supply chains.”

Nkumba next raised the issue of how effectively mines were able to generate quality job opportunities.

“Yes, mines do create jobs. But what kind of jobs?” he asked. “How much are local people earning? Also, the people who are getting paid well are often not Congolese, and don’t even live in the county.”

Savic noted that her company her company had a strong compliance requirement to give back to communities.

“In 2023, ERG distributed $7.3bn in value, compared to $6.8bn of revenue generated,” she indicated. “And 97% of our workforce are nationals of the country we operate in.”

Sturmes-Verbeek noted that while building local capacity was often on the agenda, there was no clarity on how that should happen, or at what pace.

Nkumba agreed, asking, “In practice, how are we investing to change that situation of not having enough skilled people available? We need to make sure that we have those skills, and invest to meet the shortfall by a certain time.”

At this point, Savic agreed to make a commitment for ERG to enhance its local procurement in DRC.

“I am proud to say that ERG commits to enhancing our local procurement strategy,” she said. “But we will need help from civil society to ensure there is also community ownership.”

The panel discussion ended with the two mining stakeholders shaking hands on the stage in Hall 1, to applause from the delegates attending the session.

• Investing in African Mining Indaba 2025 runs until February 6 at CTICC 1 and 2.