Nigeria, AfDB push African control of mineral wealth through value addition

Nigeria and the African Development Bank (AfDB) have called for stronger African control of mineral resources through value addition, regional cooperation, data sovereignty and strategic financing.

The call was made at the Ministerial Forum on Critical Minerals, Value Chain and Beneficiation, held under AfDB auspices in Abidjan.

Minister of Solid Minerals Development, Dele Alake, urged mineral-producing countries to embrace regional cooperation to unlock greater benefits from Africa’s abundant resources.

This is contained in a statement issued by his Special Assistant on Media, Lara Owoeye-Wise, on Sunday in Abuja.

He said African countries must move beyond exporting raw minerals and develop practical strategies for controlling their natural assets through processing and value addition.

“While the mantra of value addition has ushered in an era of economic independence for mineral-producing nations, we need concrete actionable strategies to take charge of our natural assets,” Alake said.

Alake, Chairman of the Africa Mineral Strategy Group (AMSG), said more than 30 member countries were advancing a common continental approach anchored on value addition.

He also called for African sovereignty over the data and technical systems used to assess, classify and report the continent’s mineral resources.

The minister described Africa’s reliance on the Australia-based Joint Ore Reserves Committee (JORC) reporting standard as outdated.

He advocated adopting the Pan African Resource Reporting Code (PARC), developed by the Africa Minerals Development Centre, as the continental reporting framework.

According to Alake, PARC promotes transparency, consistency and ethical reporting while reflecting Africa’s geological, environmental and mineral-resource characteristics.

He also proposed a West African minerals-processing corridor stretching from Lagos to Dakar to strengthen regional processing and reduce development costs.

Alake said participating countries would leverage comparative advantages, share infrastructure, facilitate trade and distribute the risks and rewards of mineral development.

He noted that intra-African trade accounted for about 16 per cent, compared with approximately 60 per cent in Asia and 70 per cent in Europe.

Earlier, AfDB President, Dr Sidi Ould Tah, said Africa’s vast critical-mineral deposits had not translated into corresponding gains in GDP or global influence.

Tah identified inadequate financing and low foreign direct investment as major obstacles preventing Africa from maximising opportunities in its mineral sector.

The forum consequently called for coordinated policies, integrated infrastructure, mineral value chains and capital mobilisation to transform Africa’s mining sector.

Participants adopted the Abidjan Declaration, placing financing at the centre of efforts to transform Africa’s solid-minerals sector.

Under the declaration, AfDB pledged financial instruments, capital mobilisation and technical expertise to de-risk strategic projects and finance critical infrastructure.

The bank also committed support for competitive and sustainable mineral value chains capable of generating greater economic benefits across African countries.

The declaration urged African countries to strengthen national and regional capacities to attract investment, create quality jobs and generate sustainable local value.

The forum attracted more than 20 ministers, AfDB and Afreximbank representatives, the U.S. Export-Import Bank and mining companies.

Mining companies from Germany, Canada and the United States also participated in discussions on Africa’s critical-minerals opportunities.

Participants reaffirmed that stronger African cooperation, regional value addition and greater control of mineral resources were essential for sustainable economic transformation.

(NAN)