African mining – opportunities and challenges
Despite the significant amounts of mineral resources held by the continent, Africa’s production represents only about 8% of the global mineral production. Most of this production is exported in raw form. Thus, in order to unlock its mining potential, Africa should overcome the obstacles that hamper the development of the industry. Revenues generated from mining can help African economies strengthen their comparative advantage and achieve greater economic diversification.The continent hosts about 30% of the world’s total mineral reserves and even a higher share of deposits of diamonds, vanadium, manganese, platinum, cobalt and gold. Investors are seeking expansion to new markets especially in the developing world, which presents a new investment frontier for leading mining firms. In this context, the African mining industry is offering unparalleled opportunities for both local and international investors.