2024-02-20 23:00:05
We will not be able to do without the minerals of the African subsoil if the world wants to initiate the energy transition as it is currently conceived. But these ambitions come up against a paradox: investments in exploration – or research to discover new deposits – are failing to take off sufficiently in Africa.
From our correspondent in South Africa,
Demand for the critical mineral could increase up to 3.5 times by 2030 under one of the International Energy Agency’s (IEA) scenarios. And yet, investments in Africa remain insufficient to allow supply to catch up. Because it is difficult to find the necessary financing to launch new exploration operations.
10% of exploration spending for Africa
Al Cook, head of the diamond company De Beers, describes the situation educationally: “ Let’s imagine that I take this 10 rand note to invest it in Errol’s exploration activities… Errol says to me: “In return, I will give you R1,000! Except I won’t give you that R1,000 for 20 years“. And he even adds that “there is only a 1 in 10 chance that I will return any money to you“. So at that moment, I take my 10 rand back and put it back in my pocket ! »
Only 10% of global exploration spending goes to Africa, according to the Standard&Poor’s agency, and the majority goes into the gold sector. However, these investments will be decisive for developing the mines of tomorrow, since it generally takes ten to twenty years before they are put into operation.
« What is interesting in the exploration phase is that we have a small idea of what is under the ground, but it is not quantified. And so that’s why the exploration phase is always more complicated, admits Fawzi Abi Saleh, sales manager for southern DRC for RawBank. What we see is that they are financed by start-ups, fundraising of around $50 million… These are “educated guess”. »
Negative perceptions
Negative perceptions around risks in Africa, in terms of regulations, infrastructure, and transparency, can also put off investors. In South Africa, for example, the question of energy is just one problem among others, according to Hugo Pienaar of the South African Mining Council : « Our system for applying for permits is very outdated, so it takes way too long to get them. There are investments, but they are used to support ongoing operations, not to expand capacity. »
For his part, Josh Goldman, president of the company KoBold Metals, insists on the need to make the data already known about the subsurface accessible: “We have to start from what exists, otherwise we spend our time collecting data that may have already been collected by someone else. A very important thing that countries can do is to mandate the disclosure of this data and make it public and free. »
The American start-up, which uses artificial intelligence, recently announced the discovery of a large copper deposit in Zambia.
Ultimately, the intensification of exploration operations, then exploitation, will also raise environmental questions in the areas concerned.
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