Significant change in the global rare earths market?

African mines are set to become significant players in the global rare earths market. Bloomber and Business Insider Africa informs that by 2029, these mines could account for nearly 10% of the world’s rare earths supply. This would be a large rise from today’s 0%. This growth presents an incredible opportunity to diversify a market currently dominated by China.

Emerging Players

According to Benchmark Mineral Intelligence projects that eight mines in countries like Tanzania, Angola, Malawi, and South Africa will begin production by 2029, contributing 9% to the global supply. This new output is expected to be secured mainly by Western and non-Chinese processing firms, marking a significant shift in market dynamics.

Strategic Shift

It is evaluated that China currently mines about 70% of the world’s rare earths. Furthermore it controls nearly all refining. However, with the US and its allies striving for supply chain independence, Africa’s contribution will be crucial. Although 37% of Africa’s future supply is earmarked for Chinese buyers, the majority remains „potentially available for ex-China and Western rare earths companies,” according to Benchmark.

Expanding Processing Capacities

Europe is at the forefront of developing processing facilities outside China, aiming to leverage Africa’s low-cost pipeline. This strategic move will benefit the EU and US, enhancing their rare earths supply chains and reducing reliance on Chinese production.

Key Players and Investment

Companies like Pensana, Rainbow Rare Earths, and Mkango Resources are leading the charge in Africa. Registered in Western countries, these companies are positioned to drive Africa’s rare earth production forward. However, the report highlights that some miners will still rely on Chinese customers to ensure project viability due to the slow expansion of Western processing capacity.

Sustainability and Growth

Investing in Africa’s rare earths sector not only promises economic growth but also aligns with global sustainability goals. By developing environmentally responsible mining operations, Africa can set new standards in the industry.