Mining Indaba: Global mining faces uncertainty amid U.S. protectionism

At this year’s Investing in African Mining Indaba in Cape Town, industry leaders highlighted a critical challenge: U.S. protectionist policies and trade uncertainty threaten to delay much-needed investments in mineral processing, potentially exacerbating global supply shortages.

Key takeaways

• Trade Policy Uncertainty: Richard Horrocks-Taylor of Standard Chartered Bank warned that new U.S. tariffs might stall projects essential for bridging production gaps, particularly in electrification metals.
• Supply Shortfalls Loom: Copper demand is projected to surge nearly 30% in the next decade, creating a 6-million-tonne gap if new mines don’t come online soon.
• Africa’s Growing Role: With 14% of global mining investment, Africa has vast potential, yet inconsistent trade policies discourage investors from seizing these opportunities.
• Mineral Self-Sufficiency: South Africa’s Minister of Mineral Resources, Gwede Mantashe, urged African nations to resist exploitation and leverage their resources for sustainable development.
• Investment Challenges: Inflation, high-interest rates, and volatile commodity prices have delayed decisions across metals like lithium, nickel, and aluminum, despite growing demand for electrification materials.
• The world needs $20 billion annually just to maintain current production levels for key metals and an additional $20 billion annually to meet net-zero goals by 2050, according to Wood Mackenzie.