Chinese Steel Investment in Africa

 The Diplomat published on 7 April 2025 a commentary titled "How Chinese Investments Are Reshaping Africa's Steel Industry" by Sena Voncujovi.

For China, investing in Africa's steel industry is a strategic move to relocate surplus production and address slowing domestic demand.  China is acquiring and developing iron ore mines and steel production facilities across Africa.  This may help African nations move from being passive buyers of Chinese steel to active producers. 

China-Africa Cooperation in Critical Minerals

 Development Reimagined published in November 2024 a study titled "Africa-China Cooperation in Critical Minerals: Centering Africa's Development in a Global Race."

Critical minerals account for almost 20 percent of Africa's total exports and contribute 28 percent of its GDP.  By 2022, critical minerals represented about 24 percent of China's total FDI stock in Africa.  Chinese mining companies account for 8 percent of Africa's total mining output and China ranks 5th in terms of mine ownership.  China has substantial stakes in Africa's lithium, copper, and cobalt mining projects--key minerals for EV batteries.  

It is essential that Africa develops strategies to protect and maximize the benefits from its critical minerals.  Despite the significant role mining plays in Africa-China relations, Development Reimagined says China should specify and enhance its commitments to the minerals sector to include geoscience and geology cooperation, research and development in mining technologies, human resource training, infrastructure development, value addition, and supply chain upgrading.  

Liberia: Chinese Company Causes Environmental Problems

Allafrica.com posted on 11 April 2017 a story titled "Liberia: Locals Demand Environmental Cleanup - China Union Plans Restart" by Mae Azango.

This is a case study of environmental damage caused by China Union at an iron mine in Liberia. Drinking water and agricultural land were adversely affected. When the price of iron ore dropped, China Union shut down the operation. Now that the price of iron ore has risen again, it wants to resume operations but local Liberians are insisting it first resolve the environmental damage.

Mineral Prices Drop Sharply and Impact Africa

Mining.com published an article on 7 July 2015 titled "China Panic Crushes Mining Stocks" by Frik Els.  The value of base and precious metals fell to multi-year lows following a stronger dollar, turmoil in the Eurozone, and especially the stock market crash in China.  Gold, silver, copper, iron, nickel, tin, zinc, lead, platinum, and palladium were all on the downside.  African countries are major suppliers of most of these metals and have have been impacted negatively.

Mining Projects in West Africa: Cooperation by Chinese and Western Companies

Critical Resource published in December 2013 a brief article titled "Iron Clad: Partnerships with Chinese Firms in West Africa" by Henry Hall.  The author argues that partnerships between Chinese and western firms in mining projects in West Africa could prove beneficial for companies and host governments, but only if the partners are a good fit. 

In recent years, there has been an increasing trend whereby western multinational companies have turned to Chinese partners to seek investments.  West Africa has been particularly popular for these relationships.  The author looks at four partnerships that have enjoyed varying degrees of success.