Tougher Rules for Mineral Value Addition Unveiled at African Mining Summit

By Douglas Jones

In a significant move to enhance the value of Africa's mineral resources, ministers of mining from across the continent convened yesterday at the Ministerial Roundtable to launch the Africa Natural Resources and Energy Investment Summit (AFNIS) in Abuja. The summit, presided over by Dr. Dele Alake, Nigeria's Minister of Solid Minerals Development and Chair of the African Minerals Strategy Group (AMSG), focused on implementing stricter measures to curb raw mineral exports and promote local value addition.

Key points of discussion included revising license fees, royalties, and charges upwards, supporting indigenous miners, and making value addition a prerequisite for granting mining licenses. Dr. Alake emphasized the need for African nations to take control of their mineral resources, particularly in light of the global shift towards green energy, to maximize benefits for their citizens.

"The AFNIS summit provides a platform to consolidate our strategies and set them into motion. We aim to demonstrate our seriousness to Africa and secure the necessary endorsements from our heads of state for policy actions," Dr. Alake stated.

AMSG Secretary-General Moses Engadu from Uganda highlighted the summit's role in fostering dialogue and sharing experiences under the theme "Sustainable Development for Africa's Natural Resources." He stressed the importance of transformative actions for sustainable development.

Malawian Minister of Mining, Monica Chang'anamuno, called for robust infrastructure development plans and advocated for collaboration among African countries based on comparative advantages. Meanwhile, Chadian Deputy Minister of Petroleum, Mines, and Geology, Oumar Moussa, proposed creating an African fund for exploration and centers of excellence for innovation and clean technologies.

Other speakers underscored the need for commitment to agreements and enhanced cooperation to harness Africa's natural resources for shared prosperity. Dr. Alake urged his colleagues to adopt Nigeria's policy of requiring substantial indigenous participation in mining operations.

"In Nigeria, we mandate that licenses are not granted to foreigners without a Nigerian partner. This policy should be adopted by other African nations. Since the inception of AMSG, we've promoted intra-Africa trade, and collaboration with the private sector is crucial," Dr. Alake asserted.

Secretary-General Engadu announced the upcoming "Africa for Africans" initiative, aimed at developing innovative programs for mineral resource development and establishing the Africa Minerals Development Fund (AMDF). Inspired by Nigeria's Solid Minerals Development Fund (SMDF), the AMDF will provide necessary funding to local miners across the continent.

The Ministerial Roundtable saw participation from Nigeria, Uganda, Malawi, Democratic Republic of Congo (DRC), Sierra Leone, South Sudan, Liberia, and Chad, along with Nigeria's Minister of Steel Development, Shuaib Abubakar Audu; Minister of State, Uba Maigari; Minister of State for Environment, Iziaq Salako, and other private sector stakeholders.