Africa attracts only US$1.2 billion annually in mineral exploration spending, equivalent to just half the amount invested each year in either Australia or Canada.
Infrastructure deficits and regulatory instability across Africa mean that fewer than 10% of mining projects progress beyond the feasibility stage, leaving a quarter of the world’s critical mineral reserves—essential for the energy and digital transitions—untapped, according to a report by consultancy McKinsey.
This bottleneck comes at a time when global demand for strategic minerals is expected to grow by an average of 4.5% per year through 2035. The increase is being driven by substantial public and private investment in artificial intelligence infrastructure, electric vehicles, renewable energy and advanced manufacturing.
Rising geopolitical tensions and the need to secure supply chains are also prompting industrial powers to diversify their sources of critical minerals, placing Africa at the center of the global strategic landscape.
Africa attracts just US$1.2 billion in annual exploration spending—half the level invested in either Australia or Canada. This represents a significant imbalance, given that Africa’s landmass is larger than those of China, Europe and the United States combined.
Available investment has largely been concentrated in a small number of large-scale mining assets capable of absorbing high operational and political risks, leaving many commercially attractive deposits undeveloped due to chronic challenges such as unreliable electricity supply, bureaucracy and outdated railway infrastructure.
Artificial Intelligence Emerges as a New Driver of Productivity
McKinsey argues that the adoption of artificial intelligence (AI) could help address many of the mining sector’s longstanding challenges across the continent.
The use of AI-powered algorithms in geological exploration can improve the accuracy and success rate of drilling campaigns, reducing wasted capital and increasing exploration efficiency.
Likewise, the deployment of intelligent mining systems, automated fleets and predictive maintenance models has the potential to significantly lower operating costs while improving asset performance.
The consultancy estimates that the widespread adoption of generative AI could generate between US$5.3 billion and US$8.5 billion in direct economic value for Africa’s mining industry.
At a time when the sector is seeking to shorten project development timelines and maximize returns on invested capital, the report concludes that AI is becoming an indispensable tool for positioning Africa at the forefront of the global critical minerals value chain.
Source: Economia & Mercado
