China has invested over $120 billion in abroad mining and mineral processing initiatives since 2023, Australian assume tank Local weather Power Finance (CEF) has reported. The investments primarily focused lithium, copper, nickel and uncommon earths, vital minerals important for clear power and decarbonization applied sciences. Nevertheless, whereas these investments have helped enhance clear power industries in creating international locations, they’ve raised critical considerations, together with debt dangers.
Chinese language companies are aggressively investing in abroad useful resource processing and infrastructure akin to ports, rail and power infrastructure, securing long-term useful resource entry and controlling key provide chains whereas decreasing China’s reliance on conventional suppliers. China is the worldwide chief in processing key clear power minerals, together with 90% of uncommon earth refining, 90% of battery elements and 60% of lithium processing.
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China has a very sturdy presence in Africa’s minerals sector. Again in 2023, China’s CMOC Group, in partnership with Modern Amperex Expertise Co. Ltd. (CATL), the world’s largest maker of EV batteries, accomplished the primary section of the Kisanfu cobalt challenge within the Democratic Republic of Congo (DRC), one of many world’s highest-grade copper-cobalt initiatives. CMOC Group Restricted (previously China Molybdenum), first gained a foothold in DRC after it acquired a majority stake of the Tenke Fungurume Mine (TFM) from Freeport-McMoRan (NYSE:FCX) in 2016. In 2025, CMOC achieved a document cobalt output of roughly 117,549 tonnes, and has set a cobalt manufacturing goal of 100,000 to 120,000 tonnes in 2026. CMOC can be quickly rising its copper manufacturing, focusing on 760,000 to 820,000 tonnes in 2026. The 2 high-grade copper-cobalt mines have helped set up CMOC Group because the world’s largest cobalt and copper producer, surpassing Glencore.
In 2023, China’s Zhejiang Huayou Cobalt commissioned a $300 million lithium processing plant on the Arcadia mine in Zimbabwe. Operated by Huayou Cobalt’s subsidiary Prospect Lithium Zimbabwe, the plant can course of 4.5 million metric tons of laborious rock lithium ore yearly, producing roughly 450,000 metric tons of lithium focus. Following the success of the preliminary concentrator, Huayou Cobalt expanded its operations in Zimbabwe, commissioning a second $400 million plant on the Arcadia web site in 2025 devoted to producing lithium sulphate, an intermediate product for battery manufacturing. This new facility is predicted to supply in extra of fifty,000 metric tons of lithium sulphate yearly.
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Two weeks in the past, DRC’s state miner Gécamines and a Chinese language consortium revamped their Sino-Congolaise des Mines (Sicomines) three way partnership that operates large-scale open-pit copper and cobalt mines in Lualaba Province. The JV was initially established in 2008 as a “minerals-for-infrastructure” challenge the place Chinese language traders (68% stake) finance infrastructure akin to roads and hospitals in trade for mining rights, with DRC’s Gécamines holding 32%. Beneath a revised deal, the Chinese language companions dedicated to investing $7 billion in DRC infrastructure via 2040.
In the meantime, China’s CNMC (China Nonferrous Metallic Mining Firm) has invested closely in Zambia’s copper belt. Again in 1998, the corporate acquired the Chambishi Copper Mine in Zambia, turning into the primary Chinese language agency to spend money on Zambia’s copper property following privatization. In 2018, it launched the Southeast Ore Physique, a significant copper-cobalt mine enlargement challenge with almost $1 billion invested. The expanded facility is designed to supply roughly 100,000 to 110,000 tonnes of copper focus yearly. The Chambishi Copper Mine mine is famous for being one in every of Zambia’s most technologically superior, that includes a excessive degree of digitalization and automation via partnerships with companies like Sandvik Mining and Rock Expertise.
Different main initiatives by Chinese language companies in Africa embrace Sinosteel Cam’s Lobé-Kribi Iron Ore Undertaking in Cameroon, Chinalco’s Simandou iron initiatives in Guinea, Jiangxi Ganfeng Lithium’s Goulamina Lithium Undertaking in Mali and the Kamoa-Kakula Copper Complicated in DRC, a JV between China’s Zijin Mining and Canada’s Ivanhoe Mines (OTCQX:IVPAF). China now owns over 70% of the DRC’s energetic cobalt and copper mines. Moreover, Chinese language companies are transferring past extraction to native processing, together with constructing smelters and battery crops, such because the upcoming battery manufacturing facility in Morocco by China’s Gotion Excessive-Tech with a $5.6 billion funding.
China has leaned closely on a easy playbook in Africa: construct the infrastructure, safe the sources. Offers are usually struck on the authorities degree, backed by state financing and executed by Chinese language companies, with China Exim Financial institution typically offering the funding. In return, Beijing locks in long-term provide agreements for vital minerals. The mannequin strikes quick, avoids most of the hurdles Western firms face, and fills actual infrastructure gaps throughout creating economies.
However the trade-offs have gotten more durable to disregard. A number of host international locations are taking up important debt tied to those initiatives, with locations like Djibouti and Angola already carrying heavy exterior debt hundreds linked to Chinese language financing. On the similar time, the financial spillover has typically fallen in need of expectations. Chinese language operators continuously herald their very own labor and supplies, limiting native job creation and slowing expertise switch. With many of those agreements negotiated behind closed doorways, questions round transparency and long-term management over nationwide sources proceed to construct.
By Alex Kimani for Oilprice.com
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