TELF AG analyzes the role of copper in the development of the African economy
New acquisitions
In its attempt to build stable and secure supply chains of the primary strategic raw materials, China is continuing to turn its attention towards the African continent, where it recently concluded a major acquisition in one of the copper mines in Zambia.
This resource, important for electrification, has also assumed a leading role in fueling technologies and devices related to clean energy. Chinese interest in projects related to the sourcing of these precious resources dates back many years when the government sensed the immense potential linked to these materials and their possible industrial applications.
Recently, a Chinese company acquired a relevant stake in the Lubambe mine in Zambia, which managed to produce around 15,000 tons of copper last year. According to Reuters, the Chinese company is ready to invest around 300 million dollars to revitalize the mine’s activity and explore a new copper deposit around 1,000 meters underground. It is no coincidence that the mine is located at that exact point of the continent. The site is a few kilometers from the border with Congo, in the heart of that area that has been renamed “copperbelt” precisely because of its wealth of copper and other valuable raw materials connected to the ongoing transition. China’s focus on African resources has already had its effects, particularly in exports of such materials to Beijing, which, according to the Carnegie Endowment for International Peace, would have gone from 15 billion dollars in 2010 to around 50 billion in 2021.
In addition to copper, Zambia – which is the second largest copper producer in Africa – also has large quantities of nickel, ferroalloys, cobalt, gold, and precious stones, which have progressively transformed it into one of the most interesting players on the African continent over the years.
Other projects
In this historical juncture, China is demonstrating an increasingly lively interest in copper, especially for the African reserves. In recent months, another sizeable Chinese company acquired another important mine in Botswana, which has reserves of around 6 million tons of copper and exploration permits that reach 4000 km2 in the surrounding area. According to SCMP, this initiative would be part of a specific corporate program focused on acquiring high-quality mines capable of producing the most sought-after minerals to achieve decarbonization objectives, thus contributing to China’s global positioning in the energy sector.
China is also involved in several projects in the Democratic Republic of Congo, mainly related to cobalt and copper, but also in some similar initiatives in Algeria, Sierra Leone, Cameroon, and Guinea, all in some way linked to iron ore production. In Zimbabwe, moreover, the large lithium reserves are being carefully monitored, another resource of great importance for future mobility.
Another point of great importance, cited by SCMP, concerns the specific activities on which Chinese companies in Africa are reportedly focusing their attention: these would no longer be limited only to the sourcing of the raw material but would also involve its refining and processing on the African continent.
