Mining offers significant downstream benefits

Massive investment in renewable energy installations is just one of the broader benefits of a viable mining sector. It is not only to ensure supply and reduce costs. Africa Deployments says renewable energy projects have been integrated into mining operations to meet the requirements of global buyers of minerals like cobalt and copper, which demand full traceability and a low carbon footprint for the materials they purchase. It is estimated there are 130 mining-related large-scale renewable energy projects across the continent progressing through different development phases. The mining sector will be an offtaker for around 90 projects. Investment in renewables is supported by the banking sector. Tania Mandaza, vice president, Mining & Metals, Stanbic Bank Zimbabwe, says the institution is committed to financing renewable energy projects that power mining operations and industrial hubs. “In 2024, the bank’s renewable energy financing was nearly six times higher than non-renewable, underscoring its dedication to clean energy solutions for beneficiation industries,” she states. In Namibia, Standard Bank structured a blended finance solution for a solar-plus-storage project, supplying clean power to a manganese processing plant. Mining also requires manufacturing, transport, and logistics support. The interconnected value chain can extend the benefits of mining far beyond the gate. The American Brookings Institute think tank estimates the number of additional formal jobs in copper, cobalt, nickel and lithium mines may be around 286 000 by 2040. The Boston Consulting Group estimates broader impacts, finding that a $1 billion investment in mining and processing can create 3 000 to 6 000 direct jobs, contribute $210-$280 million to gross domestic product, increase annual incremental government revenue by $70-$100m, and lead to $100m spent on regional infrastructure. Policymakers should therefore be thinking of how to support and maximise these secondary impacts, it states. This is recognised by the South African Critical Minerals and Metals Strategy, which says “Countries with a competitive edge in supplying, manufacturing and processing of critical minerals can influence global market dynamics and secure a dominant role in emerging industries. “Therefore, South Africa’s strategy must prioritise investments in mineral processing, refining, beneficiation and technology development to exploit its comparative advantage fully.” It adds: “Yet without appropriate strategic interventions, mineral producers like South Africa could remain trapped as raw ore suppliers while most value is captured by the major global processing and manufacturing centres.” However, the Minerals Council South Africa has been critical of some aspects of the Mineral Resources Development Amendment Bill and other legislation. Speaking to the media at African Mining Indaba, council CEO Mzila Mthenjane said: “The industry cannot thrive in an environment of policy uncertainty, where Acts are ambiguous and regulations discourage investment or are changed every few years, shifting goal posts, becoming more onerous or placing excessive obligations on ventures and established businesses.” ER