The second-largest mineral industry in the world is the mineral industry of Africa. Africa is the second largest continent with 30.37 million square kilometres of land, implying a large quantity of resources. With a population of 1.4 billion, mineral exploration and production constitute significant parts of their economies for many African countries and remain keys to economic growth. These economies commonly utilize exploitative measures on the African people to maximize resource extraction for the benefit of foreign investment.
Africa is richly endowed with mineral reserves and ranks first in quantity of world reserves for bauxite, cobalt, industrial diamond, phosphate rock, platinum-group metals (PGM), vermiculite, and zirconium. Foreign powers have encroached on African land for centuries. Their colonization of Africa was driven by its exploitation of resources and soon mineral mining. Although now independent countries, external powers continue to mine the lands with African laborers against their will. African people and nations receive little to no benefit from the mineral extraction to support the consumption of Global North Nations.
The Central African Mining and Exploration Company (CAMEC), one of Africa's primary mining enterprises, has faced criticisms for its unregulated environmental impact and minimal social stewardship. In the spring of 2009, retired British cricket player Phil Edmonds's assets were seized by the United Kingdom's government due to CAMEC's illicit association with former self-appointed Zimbabwean President Robert Mugabe. CAMEC underwent restructuring and sold 95.4% of its shares to the Eurasian Natural Resources Corporation. Consequently, it no longer operates under the CAMEC brand.ENRC Africa offer for CAMEC has 93.55% acceptance , IBTimes, 8 December 2009.
African mineral reserves hold a significant position globally ranking first or second for bauxite, cobalt, diamonds, phosphate rocks, platinum-group metals (PGM), vermiculite and zirconium.MIA, p1.1 Many other minerals are also abundant in quantity. In 2012, the African soil contributed to the world's production of minerals as follows: bauxite 7%; aluminium 5%; chromite 38%; cobalt 60%; copper 9%; gold 20%; iron ore 2%; steel 1%; lead (Pb) 2%; manganese 38%; zinc 1%; cement 4%; natural diamond 56%; graphite 2%; phosphate rock 21%; coal 4%; mineral fuels (including coal) – 13% and petroleum 8%; uranium 18%;MIA, p1.7 and platinum 69.4%.
Key producers As of 2005, strategic minerals and key producers were: Material Percent of world production Countries Ref Diamond73%Botswana 35%; Congo (Kinshasa) 34%; South Africa 17%; Angola, 8%MIA p1.6 Gold89%South Africa 56%; Ghana, 13%; Tanzania, 10%; and Mali, 8%MIA p1.4 Uranium16%Namibia 46%; Niger 44%; South Africa less than 10%MIA p1.7 Bauxite (for aluminium)9%Guinea 95%; Ghana 5%MIA p1.3 Steel2%South Africa 54%; Egypt 32%; Libya 7%; Algeria 6% Aluminium5%South Africa 48%; Mozambique 32%; Egypt 14% Copper (mine/refined)5%/Zambia 65%/77%; South Africa 15%/19%; Congo (Kinshasa) 13%/0%; Egypt 0%/3% Platinum/Palladium92%South Africa 97%/96%MIA p1.5 Coal5%South Africa 99%
Estimates for the production of major mineral commodities for 2005 and beyond have been based upon supply-side assumptions, such as announced plans for increased production, new capacity construction, and bankable feasibility studies. The outlook sections were based on projected trends affecting 2005 producing facilities and planned new facilities that operating companies, consortia, or governments have projected to come online within indicated timeframes. Forward-looking information, which includes estimates of future production, exploration and mine development, cost of capital projects, and timing of the start of operations, is subject to various risks and uncertainties that could cause actual events or results to differ significantly from expected outcomes.MIA: 2005 Minerals Yearbook.
Historical Context Early colonizers of Africa started as European conquests and soon to modern colonization that suppressed communal autonomy, disrupted local customary practices and irreversible transformations of Africa’s socioeconomic systems due to their exploitation and extraction of natural resources.
In the early 15th century, Portugal was the first to establish trade routes along the Africa coast. Later in the century, Spain established colonies in North Africa and the Canary Islands. France began to colonize West and North Africa in the 17th century. Great Britain expanded influence in the 18th and 19th century, colonizing Eastern and Southern Africa. Belgium, notorious for its exploitation of the Congo, colonized in the late 19th century. Germany established colonies in Southwest Africa and East Africa near the end of the 19th century.
There was remarkable levels of development in Africa before European incursion but, according to academic journalist Oluka, “most of African ancestral heritages were destroyed by colonial imperial powers while other legacies were replaced” leading to the consequence of "imperialist exploitation of the resources of the ‘new states’”.
Before colonization, African peoples mined using techniques such as “...alluvial mining, panning, shallow and deep pit mining, underground mining, and underwater sand dredging… Modified versions of these ancient mining techniques and practices are still used by artisanal miners in modern Africa”. The colonial nations also enacted “Land Ordinances” to claim African land creating the pathway for them to claim mining as a “public purpose”. According to law and policy scholar Evaristus Oshionebo, this entitled the colonizing nations land and enacted laws that “...compelled native Africans to work for foreign miners in deplorable conditions. In addition, colonial governments subjected Africans to a poll tax which, in times of labour shortage, was arbitrarily increased simply to force Africans from their villages to seek work in the very poor conditions of the mines”.
According to authors Kamara & Bumba, “An estimated 40,000 children are involved in cobalt mining in the DRC, some as young as seven years old, working in unsafe conditions”. In these informal and hazardous mining environments, children work long hours for less than $2 per day. They perform dangerous tasks such as digging tunnels, carrying heavy loads, and cleaning cobalt ores with their bare hands and no protective equipment. Poverty and systemic inequalities are the primary drivers of child labour in cobalt mines. Over 73% of the DRC’s population lives below the international poverty line.
Economics
Organizations promoting exports The mineral industry is a significantly important source of export earnings for many African nations. To promote exports, groups of African countries have formed numerous trade blocs, which included the Common Market for Eastern and Southern Africa, the Economic and Monetary Community of Central Africa, the Economic Community of Central African States, the Economic Community of West African States, the Mano River Union, the Southern African Development Community, and the West African Economic and Monetary Union. Algeria, Libya, and Nigeria were members of the Organization of the Petroleum Exporting Countries (OPEC). The African Union was formally launched as a successor to the Organization of African Unity in 2002 to accelerate socioeconomic integration and promote peace, security, and stability on the continent.
Dependence of African countries Many African countries are dependent on mineral exports. Mineral fuels are carbon-based exports such as coal and petroleum that are essential to economic function for all global powers. Coal is a solid fossil formed from ancient plant matter, primarily used for electricity generation and steel production. Petroleum is a liquid fossil fuel from ancient marine organisms used for fuel, lubricants, and as a raw material for various chemicals. Coal has a higher carbon content, whereas petroleum has a higher energy density per unit volume. Coal is extracted through mining, while petroleum must be extracted through drilling wells. Both have significant contributions to greenhouse gas emissions and environmental degradation. Mining has caused soil and water pollution and deforestation, which also leads to biodiversity and habitat destruction.
Both of these mineral fuels account for more than 90% of the export earnings for Algeria, Equatorial Guinea, Libya, and Nigeria. Minerals account for 80% for Botswana (led by, in order of value, diamond, copper, nickel, soda ash, and gold), Congo (Brazzaville) (petroleum), Congo (Kinshasa) (diamond, petroleum, cobalt, and copper), Gabon (petroleum and manganese), Guinea (bauxite, alumina, gold, and diamond), Sierra Leone (diamond), and Sudan (petroleum and gold). Minerals and mineral fuels accounted for more than 50% of the export earnings of Mali (gold), Mauritania (iron ore), Mozambique (aluminium), Namibia (diamond, uranium, gold, and zinc), and Zambia (copper and cobalt).
The mineral industry's exports make up an important part of the African gross income. Ongoing mining projects of more than US$1 billion are taking place in South Africa (PGM 69%; gold:31%), Guinea (bauxite and aluminium), Madagascar (nickel), Mozambique (coal), Congo (Kinshasa) and Zambia (cobalt and copper), Nigeria and Sudan (crude petroleum), Senegal (iron), and many others.
Although now sovereign nations, African countries continue their dependence on external global powers, who extenuate it for their own benefit. According to National Geographic author Knable, in supporting Africa’s mining economy “privitization”, “foreign countries and international organizations began lending money to African nations for infrastructure and mining development projects in exchange for granting mining rights to outside investors… The World Bank invested more than a billion dollars in loans to Africa” but it continues to only “...benefit foreign investors. African countries were also encouraged to offer tax incentives to foreign investors to increase interest in investing in mines”. This has overall reduced revenue for African nations’ governments and citizens.
Former Congolese President Joseph Kabila continued to make significant corruption for mining in the Democratic Republic of the Congo with his deal with Israeli billionaire and businessman in natural resources, Dan Gertler. Gertler’s means of acquiring and purchasing these large mines through the DRC’s failure to publish one of the sales’s full details to the International Monetary Fund, halted their $225 million loan to the DRC. This led to Gertler’s deal in 2013 to sell back an oil block he previously bought from the DRC for $500,000 to $150 million, leading to the loss of millions of dollars entitled to the people of the DRC.
Investment The Department of Mineral Resources of South Africa reported that investment in newly committed precious metals projects in South Africa—those for which funds had already been committed or were being expended—was $8.26 billion in 2005. An additional $9.56 billion was reported for potential precious metals projects in South Africa (that is, feasibility-level projects for which funds had not yet been committed). PGM accounted for 69% of the investment and gold 31%. Potential investments in iron ore projects was at least $950 million. Investment in newly committed processed minerals projects amounted to $681 million, and potential processed minerals projects is $584 million.