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.  

Nigeria Signs Major Gas Deal with Chinese Company

 The Associated Press published on 13 November 2024 an article titled "Nigeria Signs $1.2 Billion Deal with Chinese State-owned Company to Revamp Key Gas Plant" by Dyepkazah Shibayan.

Nigeria signed a $1.2 billion deal with Chinese state-owned CNCEC and BFI Group to revitalize a gas processing facility.  The deal is intended to revive the 135 million standard cubic feet gas processing facility at the Aluminum Smelter Company of Nigeria.  

How China's CPC and State Actors Secured Bauxite and Iron Ore in Guinea

 The Center for Strategic and International Studies published in June 2022 a study titled "CCP Inc. in West Africa: How Chinese Party-State Actors Secured Critical Minerals in Guinea" by Briana Boland, Lauren Maranto, and Jude Blanchette.

This case study explores how Chinese diplomatic, regulatory, financial and commercial actors worked in concert to secure access to bauxite and iron ore in Guinea.  Chinese diplomatic support and state financing provided conduits to help further favored projects and increase Chinese companies' access to Guinea's mining sector.  The study also highlights the role of the Communist Party of China.  

Will Coup in Guinea Impact Aluminum Production in China?

 Nikkei Asia published on 8 September 2021 an article titled "Guinea Coup Upends China Strategy as Aluminum Prices Soar" by Takeshi Kumon and Iori Kawate. 

China, the leading aluminum producer globally and the biggest consumer of bauxite, obtains much of its bauxite from Guinea, the world's leading supplier.  The question is whether the recent military coup in Guinea will upend the bauxite market.  So far, the impact has been minimal.  

Chinese Resource-Backed Infrastructure Financing in Guinea and Ghana

 The China Africa Research Initiative published in July 2021 an analysis titled "Chinese Resource-Backed Infrastructure Financing Investments: Comparing Governance in Guinea and Ghana" by Qianrong Ding, Hayden Hubbard, Emily Larkin, and Dawalola Shonibare.  

The study examines and compares governance issues in Ghana and Guinea and the social and environmental dilemmas linked to them.  The analysis suggests that improving transparency, regulatory enforcement, and feedback mechanisms between local communities, firms, and government can ensure that mining investments through natural resource for infrastrucutre agreements are socially, economically, and environmentally sound.

Chinese Resource-backed Loans in Ghana and Guinea

The Center for Advanced China Research published on 27 February 2020 an analysis titled "Resource-backed Loans, Revisited: Infrastructure for Aluminum in Ghana and Guinea" by Scott Wingo, PhD candidate at the University of Pennsylvania.

The author looks at major resource-backed Chinese loans for bauxite deals in Guinea and Ghana. He concludes that quantitative and qualitative changes in resource-backed lending show increased caution on the part of Beijing.

China's Consumption-led Growth and Impact on Africa

The New African published on 4 July 2018 an article titled "What Impact in Africa as China Shifts To Consumption-led Growth?" by Regina Jane Jere.

Based on a recent Moody's report, the author says China's shift from consumption-led growth will have mixed credit implications for African states, flattening the trade volumes of oil and iron ore exporters while benefiting the exporters of non-ferrous metals (copper, cobalt and aluminum) and tourist destinations in Africa.

China Makes Major Play for West African Bauxite

World Politics Review published on 22 September 2017 an article titled "China Races into West Africa's Mineral Rush, and the Environmental Costs Rise" by Matthew C. DuPee.

China recently signed a $20 billion loan agreement with Guinea for concessions and access to its bauxite deposits. It is also negotiating with Ghana for access to bauxite. The question is whether these deals can overcome rampant corruption and careless environmental practices.