Modern Mining December 2024

access—necessary for mining and processing activities; • Collaborate at a regional level to develop shared policies and infrastructure that support the critical minerals sector; • Streamline licensing procedures for mining and processing projects and move towards digitising these processes; • Strengthen anti-corruption measures and increase transparency in the awarding of mining contracts, resource extraction processes, and revenue management; • And support R&D in mineral processing technologies, exploration, and the development of alternative materials to reduce dependency on external sources for critical minerals. Critical mineral influences The supply and demand fundamentals for critical minerals are influenced by a combination of factors, including their essential role in clean energy technologies, geopolitical considerations, and the challenge of securing sustainable supply chains, says Motsoenyane. Lithium, a cornerstone of the global transition to renewable energy, is driven primarily by its use in batteries for electric vehicles (EVs), energy storage systems, and portable electronics. According to Motsoenyane, lithium is abundant, but the supply chain faces challenges. Most lithium production comes from a small number of countries (Australia, Chile, and China, and more recently Zimbabwe, Namibia and the Northern Cape province of South Africa). “The extraction process, particularly in brine-based deposits, can take years to develop and expand, leading to potential supply bottlenecks. Increasing mining capacity and processing facilities is essential to keep pace with demand.” Cobalt is another critical component of lithium-ion batteries, especially in stabilising energy density and extending battery life. The push for EVs and renewable energy technologies has intensified the demand for cobalt. Besides batteries, cobalt is essential in aerospace and industrial applications. “Over 70% of the world’s cobalt is sourced from the Democratic Republic of Congo (DRC), which presents significant geopolitical and ethical concerns, particularly around child labour and environmental degradation. This concentrated supply creates a risk of supply disruptions, and there’s a growing shift toward cobalt-free battery alternatives, but scaling these technologies will take time,” concludes Motsoenyane. n

(AfCFTA), launched in 2021, is also an important framework. “By eliminating tariffs and reducing barriers to intra-African trade, the AfCFTA is set to enhance the movement of goods – including critical minerals – across borders, and strengthening Africa’s position in global supply chains.” Further to this, South Africa, a key player in the critical minerals space due to its significant reserves of platinum group metals (PGMs), manganese, and vanadium, which are crucial for hydrogen energy and other clean technologies, has several policy developments that include among others: • Hydrogen Strategy (2021): South Africa launched its Hydrogen Society Roadmap, aimed at leveraging the country’s mineral wealth (especially PGMs) for hydrogen energy development. “The strategy is designed to position South Africa as a global leader in the production and export of green hydrogen, a clean energy source that relies on critical minerals.” • Beneficiation Policies: South Africa continues to promote mineral beneficiation, ensuring that more value-added processes occur domestically rather than exporting raw minerals. “This policy extends to critical minerals, with the goal of developing local industries around battery production, hydrogen fuel cells, and other clean energy technologies.” Critical Minerals Summit 2024 While some governments are proactive in developing policies related to critical minerals, Motsoenyane says that more can be done, which is why the vision and mission of the African Critical Minerals Summit aims to initiate and drive conversations that will encourage governments to: • Implement a combination of legislative, regulatory, and policy frameworks that boost investment, ensure sustainability, and promote value addition; • Establish clear, transparent, and stable legal frameworks that govern the extraction, processing, and export of critical minerals; • Establish policies that encourage local beneficiation and processing of minerals, rather than just implementing and enforcing strong environmental and social regulations to ensure that the development of critical minerals is sustainable and beneficial for local communities; • Invest in or facilitate public-private partnerships to build essential infrastructure—roads, energy supply, and water

Cobalt is essential in aerospace and industrial applications.

DECEMBER 2024 | www.modernminingmagazine.co.za  MODERN MINING  19