https://www.miningweekly.com
Africa|Business|Energy|Environment|Exploration|PROJECT
Africa|Business|Energy|Environment|Exploration|PROJECT
africa|business|energy|environment|exploration|project

Africa’s exploration spend is stagnating despite it being ‘rich in minerals'

27th October 2022

By: Nadine James

Features Deputy Editor

     

Font size: - +

Tullow Oil and The Metals Company nonexecutive director Sheila Khama, during her keynote address at the 2022 Council for Geoscience Summit on Wednesday, commented on her unease with the phrase ‘Africa is very rich in minerals’.

She described it as a “dangerous statement” that perpetuated the idea that Africa did not have to compete with the rest of the world for mineral exploration investment.

“While Africa is rich in certain minerals, Africa is not rich in all minerals.” Moreover, other countries on other continents also have these minerals and have fewer drawbacks, in terms of political stability, legislative certainty and ease of doing business. 

However, she stressed that the more people repeated the phrase, “the more we give the sense that the investors coming onto our shores need us more than we need them.” 

And yet, over the last 20 years, the African share of exploration expenditure has declined significantly from what it was. Further, Khama noted that the vast majority of this spend had instead been reallocated to countries and regions where the environment, from an investment policy perspective, was considered more conducive. 

“If you look at the perception of Africa's mineral endowment, and the level of the exploration budgets, African countries underperform, not relative to other countries, but to its potential.”

She noted that Africa should, at the least, be attracting the same level of exploration spend as it had in previous years. “We should be seeing a spike now that there is a greater demand for minerals for transition to clean energy. But, believe it or not, when looking at Africa's capacity to attract investment, the trend is downward.”

Khama also cited a PWC report on exploration expenditure, commenting that even a country as well-endowed as the Democratic Republic of the Congo, had in the last two years seen a drop in expenditure, owing to a perception of risk caused by political instability.

She implored the African geoscientific community to advocate for policies that complement mineral endowment – ones that were not indifferent to market trends, but that helped create an environment that attracted finance and appetite to fund exploration, scientific research, and project development.

Edited by Creamer Media Reporter

Comments

 

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.211 0.247s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: