Africa needs value addition to boost mineral resources

As the global demand for critical minerals surges, African countries find themselves at a pivotal moment in the mining sector. Julius Daniel Mattai, the Minister of Mines and Mineral Resources in Sierra Leone, emphasized the urgency for African nations to seize the opportunity presented by the energy transition and boost their capacity in mineral production. In a conversation with CNBC Africa at the Future Minerals Forum in Riyadh, Saudi Arabia, Mattai underscored the importance of developing critical frameworks to shift from simply exporting raw mineral resources to adding value through processing and manufacturing. Mattai highlighted the necessity of building the capacity of African countries, particularly empowering young men and women, to participate in the entire value chain of mineral production. From exploration to extraction, processing, refinery, and manufacturing, there is a need for comprehensive involvement to maximize the potential gains. Using Sierra Leone as an example, Mattai lamented the current situation where the country primarily engages in upstream extraction and exports raw minerals without any value addition, missing out on job creation and enhanced revenue generation. The discussions at the forum revolved around leveraging last year's outcomes to establish international frameworks for critical minerals, create centers of excellence, and ensure sustainability throughout the mineral value chain. Mattai stressed the critical need for African nations to prioritize human development and capacity building alongside mineral extraction. He pointed out the geopolitical dynamics at play, citing examples of major infrastructure projects led by various global powers to extract raw minerals from African countries, further highlighting the necessity for value addition within the continent. Key Points: 1. Capacity Building for African Nations: Mattai emphasized the importance of empowering young Africans to participate in the mineral value chain, from exploration to manufacturing, to maximize the benefits of mineral resources. 2. Shift from Raw Exports to Value Addition: The Minister highlighted the need for African countries to move beyond exporting raw minerals by investing in processing and manufacturing to create jobs and increase revenue. 3. Access to Finance and Infrastructure: Mattai raised concerns about the lack of access to finance and the critical role of electrification in the mining sector's development, stressing the need for significant investments to meet decarbonization goals. In conclusion, Mattai emphasized the need for Africa to drive its development agenda in the mining sector, aligning national and continental policies to guide interactions in the global stage effectively. He called for a concerted effort to translate existing policies into impactful actions that benefit communities, particularly those in mining regions. As Africa stands at the crossroads of opportunity and challenge in the mining sector, the call for value addition in mineral resources remains paramount for sustainable development.