India is intensifying plans to acquire key minerals in Africa, challenging China’s dominance

India is keen to increase its critical mineral supplies in Africa as it plays a key role in securitizing resources and disrupting China’s apple cart in the region. There are memorandums of understanding with at least eight African countries on mining cooperation, including access to resources.

Countries include South Africa, Mozambique, Congo, Tanzania, Zambia, Malawi, Côte d’Ivoire and Zimbabwe. Although the main emphasis is still on critical minerals such as copper, cobalt, niobium, graphite, titanium, lithium, among others.

Some U.S. lobbying groups have pointed out that China currently controls about 8 percent of Africa’s resources. They say the numbers are up from 2018 estimates.

Key countries

In fact, the race for critical minerals is focused primarily on cobalt and copper – in addition to lithium – key metals for EV battery production. Congo – Zambia seems to be a key area of ​​interest for countries – Western or Asian.

Few Western mining companies have yet ventured into the resurgent Copperbelt region (northern Zambia and southern Congo), facing political risks, poor infrastructure and, in some cases, artisanal mining issues. Few survived.

American producer Freeport McMoRan launched the Tenke Fungurume copper and cobalt mine in 2009. In 2016, it sold its share to CMOC, allowing the Chinese company to establish itself in Congo for the first time.

India is upping the ante

Meanwhile, India is pushing for an increased presence in the region, primarily through a combination of G2G negotiations – which allow it to mine on a nomination basis – and private interests that allow companies to invest directly in the region.

Discussions concerned aspects such as the exploration of resources or mines in selected countries, analyzing the possibilities of acquiring and subsequent commercial use, including processing of some of these minerals.

Just in February, India signed a Memorandum of Understanding with the Republic of Côte d’Ivoire for cooperation in the field of geology and mineral resources.

“We take advantage of mineral deposits in some African countries. MoUs are being considered for mining, primarily of critical minerals,” said an official aware of the discussions business line.

In Tanzania, for example, India is seeking access to resources such as niobium and graphite; whereas in Zimbabwe it may be lit. Similarly, in Congo and Zambia, copper and cobalt.

China’s presence

In Congo, China is said to control more than 5 percent of cobalt processing plants.

It is estimated that Chinese companies own 80% of shares in the Tenke Fungurume mines, which extract almost 12% of the world’s resources there; while in a recent announcement, about 95 percent of the shares in the pending Kinsafu cobalt and copper project were taken by the Chinese.

There is significant Chinese investment in Zimbabwe to secure lithium.