As governments across Africa seek to capture more value from the continent’s vast reserves of critical minerals, beneficiation has become one of the dominant themes shaping mining policy. From copper and cobalt to lithium and graphite, policymakers are increasingly looking beyond extraction towards refining, processing and manufacturing as pathways to industrialisation.
Yet industry leaders, gathering at Invest Africa’s Africa Debate in London to discuss the future of Africa’s critical minerals sector, suggested the conversation may need to be broader. While local processing remains an important ambition, speakers argued that the continent’s greatest opportunity may lie in building the infrastructure, skills, financing ecosystems and large-scale mining projects capable of underpinning a globally competitive industry.
“The question is not whether Africa should move up the value chain,” suggested Rohitesh Dhawan, president and CEO of the International Council on Mining and Metals (ICMM).
“The question is where along that value chain countries can create the greatest and most sustainable value.”
The discussion comes at a pivotal moment. Demand for critical minerals is expected to rise significantly over the coming decades as countries pursue energy transition goals. Electric vehicles, battery storage systems, renewable energy infrastructure and modern power grids all depend on minerals such as copper, lithium, nickel and graphite. Africa possesses substantial reserves of many of these resources, creating a rare opportunity for the continent to strengthen its role in global supply chains.
Looking beyond refining
For many African governments, the instinctive response to decades of exporting raw materials has been to encourage more domestic processing. The logic is understandable. Refining and smelting appear to offer a route towards greater value capture, industrial development and job creation.
But Dhawan argued that the economics are often more complicated. Using copper as an example, he noted that refining and smelting margins are currently under significant pressure globally. In some cases, processing facilities are struggling to remain profitable amid growing global capacity and increasingly competitive markets. That does not mean beneficiation should be abandoned. Rather, it suggests governments should take a holistic view of the entire mining value chain.
“There is sometimes an assumption that refining and smelting are automatically where the value lies,” he observed. “But when you look across the full ecosystem, there may be other opportunities that create more jobs, stronger industries and better long-term returns.”
Those opportunities include manufacturing mining equipment, engineering services, logistics, construction, infrastructure development and downstream industries that utilise refined minerals. For countries seeking sustainable industrialisation, the challenge is identifying where they can compete most effectively rather than pursuing every stage of the value chain simultaneously.
The importance of scale
A recurring theme throughout the discussion was the importance of scale. While much attention has focused on relatively small critical mineral deposits, speakers argued that Africa must continue to prioritise large-scale projects capable of transforming national economies.
Dhawan pointed to the enormous size of global commodity markets such as copper and iron ore, arguing that large projects often generate broader economic benefits through employment, supplier development and infrastructure investment.
“The projects that move economies are the large-scale assets. Those are the projects that create ecosystems around them.”
Major mining developments require roads, railways, ports, power generation, water infrastructure and extensive local supply chains. They often create opportunities for domestic businesses ranging from engineering firms and transport operators to technology providers and financial institutions. For governments seeking economic transformation, these wider spillover effects may prove just as important as revenues generated from the minerals themselves.
Infrastructure remains the missing piece
For Veronica Bolton-Smith, chief executive officer of the Critical Minerals Africa Group, one of the biggest challenges facing Africa’s critical minerals ambitions is infrastructure. Energy is perhaps the most obvious example. Processing facilities, refineries and smelters are highly energy-intensive operations. Without reliable and affordable electricity, many projects struggle to remain competitive.
“We need to be investing in these foundations now,” Bolton-Smith argued, highlighting the importance of power, water and transport networks in enabling industrial development. Water infrastructure is becoming increasingly important as mining companies face growing pressure to improve sustainability and resource efficiency. Digital infrastructure is also emerging as a critical requirement as mining operations become more automated and data-driven.
The challenge is particularly acute because infrastructure projects often require long-term planning and significant capital investment. Yet without them, ambitions to move further up the value chain become difficult to realise.
Critical minerals financing
Securing capital remains another major challenge. Mining projects are expensive, complex and often take years to develop. Exploration alone can require substantial investment long before any commercial returns materialise.
Lawrence Dechambenoit, head of group government relations and civil society at Rio Tinto, highlighted the importance of creating stable investment environments capable of attracting long-term capital.
Dechambenoit highlighted Rio Tinto’s experience in Guinea, where the company is helping develop the vast Simandou iron ore project. The project, which is expected to unlock one of the world’s highest-grade iron ore deposits, illustrates both the scale of Africa’s opportunity and the complexity of delivering it.
Crucially, Simandou is far more than a mining project. It includes hundreds of kilometres of new railway infrastructure and a deep-water port capable of supporting exports from one of West Africa’s most ambitious industrial developments. Together, these investments are expected to reshape Guinea’s economic landscape, creating jobs, improving connectivity and laying the foundations for future industrial activity.
For Dechambenoit, the lesson is clear: attracting transformative investment requires governments to think beyond individual mines. Investors committing billions of dollars need confidence in regulatory stability, long-term policy consistency and a shared vision for economic development. Large-scale projects such as Simandou demonstrate how mining can act as a catalyst for wider infrastructure development, generating benefits that extend well beyond the resources sector itself.
The project also highlights a broader point raised throughout the discussion. While debates around beneficiation often dominate policy conversations, the greatest economic gains may sometimes come from enabling world-class mining projects and the infrastructure corridors that accompany them. Railways, ports, power generation and logistics networks can unlock opportunities across entire economies, supporting agriculture, manufacturing and trade alongside mineral exports.
“These are the types of projects that change countries,” Dechambenoit suggested. “When you get the foundations right, mining becomes a platform for much broader economic transformation.”
Traceability as a competitive advantage
As demand grows, another opportunity is emerging for African producers: traceability.
Consumers, regulators and investors increasingly want to know where minerals originate and how they are produced. Questions around labour standards, environmental performance and supply chain transparency are becoming central to procurement decisions, particularly in Europe and North America.
Several speakers argued that African countries have an opportunity to position themselves as leaders in responsible sourcing. Rather than competing solely on cost, producers could differentiate themselves by offering highly traceable, responsibly produced minerals backed by strong governance systems.
Such an approach would require investment in technology, monitoring systems and institutional capacity. However, it could also allow African producers to command greater confidence from international buyers and investors.
For Ipeleng Selele, Chairperson of Brand South Africa, the ultimate measure of success will be whether critical minerals translate into broader development outcomes. That means ensuring local communities benefit through jobs, business opportunities and skills development. It also means ensuring that women and young people are fully included in emerging value chains. The conversation around localisation, she argued, must focus on tangible outcomes rather than simply headline investment figures.
If managed effectively, critical minerals have the potential to support industrialisation, strengthen regional value chains and create opportunities for future generations. The challenge is ensuring that resource wealth becomes a catalyst for inclusive growth rather than an end in itself.