I was recently asked what gives me hope for the mining industry. The answer is also the reason I choose to continue to dedicate my career to mining: simply put, mining is foundational to human development.
We all have loved ones and we all want them to enjoy and succeed in life. But what does “success” mean? For most of us, it involves an expectation of access to basic necessities such as shelter and food, the ability to move around and to communicate.
According to a recent World Bank report, almost 3.5-billion people still live on less than $7 (about R130) per day. The mining industry is uniquely positioned to supply the raw ingredients to improve people’s lives — to bring energy and clean water, build homes and transport infrastructure, develop appliances and phones, and of course produce food. It is that simple.
On the African continent, mining is the bedrock of numerous economies and still offers great potential for those countries and their people to thrive. As the world decarbonises, economies develop and populations grow, the demand for critical minerals will only increase. Africa is home to some of the largest deposits of these minerals and therefore has a central role as a driver of the economy of the future.
If we want to improve living standards in the developing world to match those of the developed world, the demand for metals and minerals will be unprecedented. For example, to achieve the UN’s poverty elimination goals requires increasing global installed copper from 61kg per capita today to more than 200kg. That’s a more than threefold increase, and all stakeholders must collectively take responsibility to bring those resources to market in a sustainable way.
Africa’s abundance in critical raw materials positions the continent to be so much more than a supplier in global value chains, and therefore nations must become comfortable working as strategic partners. However, African governments, as is the case anywhere else in the world, also need to provide fiscal and regulatory stability, supported by the rule of law, to attract investment. The reality is we are leaving billions of dollars in mineral value untapped because of a number of such constraints.
The other reality is that the race for critical minerals has sparked resource protectionism among major powers. Countries are imposing tariffs and export bans on critical materials to protect their own industrial sectors. This is not just about country-on-country tension. Western democracies are forming new alliances and financing networks that are designed to direct development capital towards critical minerals projects to strengthen their own positions in the global economy.
This presents both an opportunity and a challenge for the continent: the challenge is for African nations and mining companies to navigate between attractive incentives on the one hand, and risks from geopolitical tensions that could block access to key markets, on the other.
Mining is not just about extracting resources from the earth; it’s about unearthing the potential within us to build, innovate and transform the world for the benefit of current and future generations.
To navigate these complexities we need bold partnerships, innovative funding models and a commitment to reducing red tape, while upholding commitments to responsible mining. Governments can create more conducive environments for investment by streamlining regulatory processes, providing policy certainty and unlocking investment in critical infrastructure — rail, ports and water. As for the private sector, we must not only invest but also act as true partners in development
Integrated industrial strategies and trade partnerships — such the African Continental Free Trade Agreement (AfCFTA) or the African Growth & Opportunity Act (Agoa) — are powerful mechanisms to unlock the competitiveness of the continent and its trading relationships. These are vital frameworks for enhancing market access, reducing regulatory uncertainty and driving industrialisation.
African leaders are rightly advocating for more equitable participation in the mining value chain to create jobs, develop industries and ensure the benefits of mining are experienced locally. However, they must also share revenue and risk fairly for partnerships to succeed. The De Beers-Botswana partnership agreement stands as an excellent example of how these negotiations can work when both parties engage with a deep understanding of what’s at stake and the opportunity on offer.
Likewise, SA’s government of national unity, and successful public-private partnerships like the Business For SA (B4SA) partnership with government, demonstrate what can be achieved when we focus on addressing shared challenges. I am proud that Anglo American catalysed what we now see being delivered by the B4SA. SA is at the heart of Anglo American and the country’s success is deeply intertwined with our own.
In the last year, the country has experienced a vast improvement in energy supply and we have also seen wait-times at ports showing some improvement. The network statement published by Transnet and the establishment of the Public Sector Participation Unit are critical steps towards restoring rail performance and further unlocking SA’s economic potential.
Future-proofing African mining means collaborating like never before to make it happen. Mining is not just about extracting resources from the earth; it’s about unearthing the potential within us to build, innovate and transform the world for the benefit of current and future generations. It is about inspiring each other to succeed.
• Wanblad is Anglo American CEO.
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