WeeklySA_AdminGrow: Demand for critical minerals projected to grow by up to 500 percent in 2050…
By Isaac Moledi
Investing in South Africa’s critical mineral resources will not only trigger economic opportunities including job creation , revenue generation but will be key for diversifying global supply chains and reduction of prices.
This is the view of experts who announced that billions of dollars worth of investments was being directed towards critical minerals making South Africa an investment destination of choice as investors turn to the country amid diversification efforts.
South Africa accounted for 60% of the world’s manganese supply; 75% of platinum and 40% of palladium. Besides these rare minerals that South Africa has, the country boasts significant quantities of rare earth elements (REE) as well. According to experts, South Africa is well positioned to seize the opportunity as investment has begun to accelerate towards the mining and green mining industries with global players making strides towards transitioning to a cleaner energy future.
They believe that the demand for critical minerals – which are essential for the production of lithium-ion batteries and associated technologies behind solar and wind components and renewable power systems – is projected to grow 500% by 2050.
As such, investment has begun to accelerate towards the mining and green mining industries, with South Africa well positioned to seize this opportunity.
“The ground has already been laid for deal making with South Africa in this sector,” James Chester, senior director of African Critical Minerals Summit (ACMS) said during an interview with a South African TV station about the upcoming ACMS to take place in Johannesburg from November 6 to 7 this year.
“There is a group of 11 countries – the Mineral Security Partnership (MSP) – which was announced in 2022. This is a group of developed countries that are looking for projects across the world so that they can diversify their supply chain.
There are billions of dollars waiting to be invested in South Africa and across Africa. We need to create the environment where that money can come in and those projects can be executed,” according to Chester, who is also the organizer of Energy Capital & Power (ECP).
Representing a US-led initiative that aims to bolster supply chains while catalyzing investment from government and the private sector, Chester said the MSP was seeking alternative investment opportunities, focusing on minerals such as cobalt, nickel, lithium as well as the 17 REEs, and all attention have turned to South Africa.
Amid concerns over market overreliance and supply bottlenecks, he said the MSP is looking at investing in Africa’s entire mineral value chain.
Stepping into this picture, Chester says the ACMS will connect private sector investment with public sector stakeholders, laying the foundation for new deals to sign across the market.
The ACMS was officially launched in Johannesburg on April 14 this year at a networking event that united high–level public and private sector stakeholders. The Summit, organised by African investment promotion and events producer (ECP), will be hosted by South Africa’s Department of Mineral Resources and Energy, and will welcome African and global delegates to discuss the role that Africa’s mineral resources will play in accelerating the global energy transition, while addressing energy security concerns and advancing socioe-conomic growth across Africa.
“It is the department of Mineral Resources and Energy that is really driving this initiative. They want to put forward that they have a plan for critical minerals and want to articulate that further in November,” according to Chester.
“The energy transition is here and it is the role of the private sector, together with the public sector, to ensure that people and businesses are ready for that, and that South Africa takes advantage and is not in the position of following the rest of the world, but actually leading the rest of the world.”
