WiM-Africa: Africa Must Control Mineral Pricing, Value Determination

• WiM-Africa advocates for African nations to gain greater control over the global pricing and value determination of their mineral resources.
• Janet Adeyemi, President of Women in Mining in Nigeria (WIMIN), highlighted that Africa holds 30% of global mineral reserves but receives only a small fraction of the revenue due to raw material export.
• The organization calls for policies promoting local processing, regional value chains, and robust legal frameworks to ensure fair pricing and equitable benefit sharing.
• These statements precede the 8th African Mining Summit in Abuja, where WiM-Africa will host a side event focused on women's empowerment in mining.
• Empowering women and fostering collaboration among African nations are seen as crucial for sustainable development and maximizing mineral wealth.

Janet Adeyemi, President of Women in Mining in Nigeria (WIMIN), underscored the critical need for the continent to enhance its market intelligence, develop robust processing capabilities, and improve its mineral data collection to achieve this objective.

Women in Mining Africa (WiM-Africa) has issued a significant statement from Abuja, advocating for African nations to assert greater control over the global pricing and value determination of their extensive mineral resources. Janet Adeyemi, President of Women in Mining in Nigeria (WIMIN), underscored the critical need for the continent to enhance its market intelligence, develop robust processing capabilities, and improve its mineral data collection to achieve this objective. This push highlights a growing sentiment that Africa must move beyond its current role as primarily an exporter of raw materials.

Adeyemi's remarks emphasized that despite Africa holding a substantial 30% of the world's mineral reserves, including vital critical minerals such as cobalt, manganese, and platinum, the continent currently reaps only a minimal fraction of the total revenue generated from these resources. The prevailing practice involves African countries exporting raw materials, which are then processed in other regions. This outsourcing of value addition significantly diminishes the economic benefits that could otherwise accrue to African economies, prompting WiM-Africa's call for a strategic shift in the African mineral pricing paradigm.

The organization's stance is rooted in the economic imperative for African nations to capture more value from their natural wealth. Adeyemi pointed out that Africa's mineral resources are indispensable for the global energy transition, positioning the continent as a crucial player in future industrial development. However, the current model of exporting unprocessed minerals means that the substantial economic gains from refining and manufacturing are realized elsewhere, depriving African economies of potential revenue, job creation, and industrial growth.

To counteract this, WiM-Africa urges African governments to implement policies that actively promote local processing of minerals. Furthermore, the development of regional value chains is seen as a vital step, enabling countries within the continent to collaborate and collectively enhance the value derived from their resources before they enter international markets. This strategic approach aims to transform Africa from a mere supplier of raw materials into a significant participant in the global mineral value chain, thereby influencing African mineral resources pricing control.

WiM-Africa's President stressed the importance of collaborative efforts among African nations to formulate a unified strategy for mineral resource management. This unified approach is deemed essential for effectively negotiating global mineral prices and ensuring equitable benefit sharing. Adeyemi specifically called upon African leaders to prioritize the establishment of robust legal and regulatory frameworks that can guarantee fair pricing for their minerals and ensure that the benefits are shared equitably among all stakeholders.

Such frameworks are critical for fostering transparency, attracting responsible investment, and safeguarding the interests of local communities and national economies. The development of these policies is central to WiM-Africa's vision for a more just and prosperous mining sector policy Africa, where the continent's vast natural resources governance translates into tangible socio-economic development for its people.

These significant pronouncements were made during a press briefing held in anticipation of the 8th African Mining Summit, scheduled to take place in Abuja in June 2024. The summit's theme, "Harnessing Africa's Mineral Resources for Sustainable Development," directly aligns with WiM-Africa's objectives. The organization plans to host a dedicated side event at the summit, titled "Women in Mining: Driving Value Addition and Sustainable Practices."

This side event will serve as a platform for WiM-Africa to advocate for policies that support women's active participation and leadership roles within the mining sector. The organization firmly believes that empowering women is not only a matter of gender equality but also a fundamental component for achieving sustainable development goals and ensuring that Africa fully capitalizes on its mineral wealth, thereby enhancing the overall Women in Mining Africa mineral value contribution to the continent's economy.

This statement from WiM-Africa indicates a growing push for African nations to exert greater control over mineral pricing and value. Lawyers advising clients in the mining, natural resources, or international trade sectors should monitor for potential legislative and policy changes across African jurisdictions that could impact mineral export terms, local processing requirements, and revenue sharing models, affecting investment and operational strategies.

Source: Original reporting via Leadership Newspaper