This blog was first published by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF)
As global demand for critical minerals surges due to the energy and technology transitions, resource-rich countries are seeking to harness more economic benefits from their critical minerals. While exporting mineral ores or concentrates can provide significant revenues if taxed effectively, governments are increasingly interested in value addition by processing and refining minerals in country to maximize economic returns through manufacturing and industrial development.
The topic of value addition often extends beyond domestic conversations into international forums, such as the principles and recommendations of the UN Secretary-General’s Panel on Critical Energy Transition Minerals and the Fourth International Conference on Financing for Development. However, many resource-rich countries have struggled to translate this ambition into sustained success. For example, an important action item in the 2009 Africa Mining Vision was the promotion of local mineral processing for use in manufacturing.
Although processing facilities for minerals and metals exist throughout Africa, many African countries continue to export minerals that have undergone little processing and virtually no downstream manufacturing. When it comes to critical minerals, processing and especially large-scale refining and manufacturing capacity remains highly concentrated in select countries.
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