Unlocking Africa’s Role in the Mining and Metals Transition

The mining and metals industries are at the forefront of the global decarbonization movement, as detailed in KPMG’s 2024 Global Metals and Mining Outlook. The report emphasizes not only the industry’s critical role in reducing carbon emissions but also its potential to transform operations through strategic decarbonization. This evolution carries profound implications for Africa, where resource-rich landscapes and rising demand for sustainable practices converge.

The global energy transition has brought Africa’s role into sharper focus. The continent’s wealth of natural resources holds the potential to significantly influence international markets. However, decarbonization demands more than just technological innovation—it requires a bold reimagining of mining operations that aligns with global environmental objectives. The urgency of this transition is clear, but so too are the opportunities it presents for economic growth and sustainability across Africa.

Decarbonization as an Economic Catalyst for Africa

Africa’s abundant reserves of critical minerals—including cobalt, lithium, and copper—position the continent as a cornerstone of the global energy transition. The Democratic Republic of Congo, Zambia, and South Africa lead in supplying minerals essential for renewable technologies and electric vehicles. However, traditional mining’s high carbon intensity presents both challenges and opportunities.

South Africa’s Sibanye-Stillwater exemplifies leadership in sustainability, developing a 600 MW renewable energy portfolio combining wind and solar projects. These initiatives not only reduce emissions but also lower operational costs, proving that profitability and sustainability can go hand in hand. As KPMG’s survey reveals, 57% of executives consider integrating decarbonization into corporate strategy a vital pathway to resilience and growth.

Moreover, the potential for similar projects in other parts of Africa—including Kenya, Tanzania, and Ghana—illustrates the wider applicability of renewable energy partnerships. By leveraging solar and wind power to meet mining’s energy-intensive needs, companies across Africa can take significant steps toward reducing emissions and securing long-term profitability. These projects highlight the dual benefits of sustainable practices: environmental stewardship and enhanced economic competitiveness.

Transforming Operations Through Innovation

Technology is the backbone of operational transformation in mining. Advanced analytics and artificial intelligence (AI) are optimizing resource extraction, reducing waste, and boosting productivity. For example, AI-driven mine planning and blasting solutions deployed in Tanzania have lowered energy consumption while enhancing equipment efficiency. Similarly, predictive maintenance programs enabled by AI are reducing downtime and costs across the continent.

A notable innovation involves electric smelting furnaces, as seen in Australia’s iron production. Africa, with its vast renewable energy potential, could adopt similar technologies to decarbonize industries locally. According to Andrew McHardy of KPMG, aligning decarbonization with enterprise strategy is essential for achieving both environmental and economic goals.

The use of automation and machine learning in extraction processes is accelerating. By implementing AI models capable of real-time decision-making, mining firms can achieve significant operational efficiencies. These innovations are vital in reducing the carbon intensity of mining operations while meeting the demands of global supply chains. AI not only enhances operational precision but also allows for predictive analysis, ensuring efficient resource allocation and minimal environmental impact.

Collaboration to Address Market Volatility

Despite advancements, African mining operations face challenges including price volatility, geopolitical risks, and supply chain disruptions. The concentration of critical mineral supply chains outside Africa further exposes the continent to external shocks.

Collaboration among governments, private enterprises, and international organizations is crucial to addressing these vulnerabilities. Strengthening supply chain resilience and ensuring equitable resource management will require coordinated efforts. Kenya’s integration of renewable energy into mining operations illustrates how ecosystem partnerships can mitigate risks and advance sustainability.

Moreover, regional partnerships could enable the development of a unified strategy to negotiate better terms in global markets. Collaborative frameworks like the African Continental Free Trade Area (AfCFTA) could amplify Africa’s bargaining power, ensuring that critical mineral exports generate equitable economic returns. Such collaboration also enhances capacity-building efforts, helping local firms meet international standards for sustainability.

Paving the Way for Sustainable Growth

As global demand for critical minerals is expected to quadruple by 2040, Africa has a unique opportunity to lead the mining and metals sectors toward a sustainable future. Aligning decarbonization with operational excellence will be pivotal. By embracing advanced technologies, fostering public-private partnerships, and investing in renewable energy, Africa can solidify its role in the global energy transition.

Initiatives such as the Africa Mining Vision emphasize the importance of regional cooperation in developing sustainable mining practices. Prioritizing skills development and infrastructure investment will enable the continent to meet global demand while generating long-term economic benefits for its people.

Furthermore, enhanced corporate accountability measures could ensure that mining activities contribute meaningfully to local communities. The development of frameworks that prioritize social responsibility and environmental stewardship would cement Africa’s position as a leader in sustainable resource management.

As Ugo Platania, KPMG’s Global Sector Leader for Steel, states, “Decarbonization is not just a compliance measure; it is a business opportunity that can redefine the way mining operates globally.” For Africa, this opportunity represents a transformative pathway to sustainable development, positioning the continent as a pivotal player in the decarbonized future.