African Development (1/3): Africa's Access to Mineral Resources Compared

Mineral deposits in your country are seen as a signal for prosperity. There are examples of countries like Norway and Saudi Arabia getting rich from effectively employing their mineral fuels. But overall, rich mineral deposits in Africa have not led to the expected wealth. The concept of the “Resource Curse” describes how there is a tendency for some resource-rich regions to in fact have poor economic growth. This seems to fit Africa’s case. No it isn’t just a concept; economists have found a correlation between large natural resource deposits and a lack of development. Look at the paper: Natural Resource Abundance and Economic Growth by Jeffrey Sachs and Andrew Warner.

The Resource Curse is likened to the Lottery Winner’s Curse, where the winning individual fails to cope with the sudden complications brought about by their sudden fortune. In a future article we will see if developing nations manage their wealth individually. Anyways the issues that arise from managing Mineral deposits are complicated. So, let us compare resource allocation to see how much Africa has won in this Lotto:

What Minerals do we want and do we have them?

First of all what Minerals would a country want, and what are they used for:

Oil and Gas: These are the world’s primary energy resources and are used for transportation, electricity generation, heating, and the production of numerous chemical products, including plastics and fertilizers.
Coal: While its use is declining in many countries due to environmental concerns, coal is still a significant energy source, especially for electricity generation.
Iron Ore: Iron ore is used to produce steel, which is fundamental for infrastructure and construction, automotive production, and various other industrial applications.
Copper: This metal is used in electrical wiring, electronics, construction, and the renewable energy sector.
Aluminum (Bauxite ore): Used in construction, transportation (cars, planes, etc.), packaging, and consumer goods.
Gold: Apart from its use in jewellery and as a store of value, gold has industrial applications in electronics and is also used by central banks as part of their reserves.
Rare Earth Elements: These are used in various high-tech applications, including smartphones, electric cars, and defence technology.
Lithium: This is a key mineral in producing batteries for electric vehicles and renewable energy storage.
Nickel: Used in stainless steel and batteries for electric vehicles.
Cobalt: Another essential element in the production of batteries for electric vehicles.
Potash: This is used to produce fertilizers, which are critical for agriculture.
Diamonds: Used for both jewellery and industrial applications.
Uranium: Used to fuel nuclear power plants.

Here is a table of minerals, showing where they can be found and the companies mining them:

Mineral	Countries	Companies
Gold	South Africa, Ghana, China, US	Newmont (US), Barrick Gold (CA), AngloGold Ashanti (ZA)
Silver	Mexico, Peru, China, Australia	KGHM Polska Miedź (PL), Fresnillo (MX), Pan American Silver (CA)
Copper	Chile, Peru, China, US	Codelco (CL), Freeport-McMoRan (US), BHP (AU)
Iron	China, India, Australia, Brazil	Vale (BR), Rio Tinto (UK/AU), BHP (AU)
Aluminum	Australia, Brazil, China	Chalco (CN), Rio Tinto (UK/AU), Alcoa (US)
Nickel	Philippines, Indonesia, Australia, Canada	Vale (BR), Norilsk Nickel (RU), BHP (AU)
REEs	China, Madagascar, Australia, US	MP Materials (US), Lynas (AU), China Northern Rare Earth (CN)
Lithium	Chile, Argentina, Australia, China	Albemarle (US), SQM (CL), Ganfeng Lithium (CN)
Cobalt	DR Congo, Canada, Australia	Glencore (CH), China Molybdenum (CN), Vale (BR)
Uranium	Kazakhstan, Niger, Australia, Canada	Kazatomprom (KZ), Cameco (CA), Orano (FR)
PGMs	South Africa, Canada, Russia	Anglo American Platinum (ZA), Impala Platinum (ZA), Norilsk Nickel (RU)
Diamonds	Botswana, DR Congo, Russia, Australia	De Beers (UK/ZA), ALROSA (RU), Rio Tinto (UK/AU)
Phosphates	Morocco, US, China, Saudi Arabia	OCP Group (MA), Mosaic (US), PhosAgro (RU)
Oil	Saudi Arabia, Russia, United States, Iraq, Canada	Saudi Aramco (SA), ExxonMobil (US), Rosneft (RU), BP (UK), Chevron (US)

Abbreviations: US (United States), CA (Canada), ZA (South Africa), PL (Poland), MX (Mexico), CL (Chile), AU (Australia), UK (United Kingdom), BR (Brazil), CN (China), CH (Switzerland), KZ (Kazakhstan), FR (France), MA (Morocco), SA (Saudi Arabia), RU (Russia), DE (Germany), and DR Congo (Democratic Republic of Congo).

Access to Mineral Resources is always changing for a variety of reasons. We will discuss these soon. Looking at the table above, do you think Africa has competitively its natural resources? Has Africa neglected Entrepreneurship? Is there more money and control in extracting resources yourself?

Issues Affecting Mineral Resource Access

Geological Availability – Mine depletion
Technological Constraints – Superior extraction means that some of the biggest suppliers have the smallest deposits.
Economic Structure – Lack of support industries, Lack of Finance. Diversified Economies are more resilient to skittish funding; they find it easier to pursue exclusively national interests.
Environmental and Social Factors – Environmental health, labour and population Conditions.
Political Stability
Global Trade Policies

So what are Africans doing about this? Today Africa has better frameworks for managing its resources. There is more welfare, institutions of bureaucracy, and better governance. Most importantly as a community, we are all interested and believe it will be different this time. Even individuals are contributing to the Future. How do you plan on contributing to effectively using your country’s resources? Are you interested in developing a business? Do you have practical or scientific skills? Are you a subject matter expert in a resource? You can do consultations or engage in media.

An Example of Positive Change

Did you know the Democratic Republic of Congo is seeking to adjust its mining deal with China for more favourable terms? “China and this particular deal have become a major issue in this campaign,” said Paul Nantulya from the Africa Center for Strategic Studies, talking about President Tshisekedi ahead of December Elections.