Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Can China’s US$16.3 Billion Africa Mining Push Reshape the Global Critical Minerals Race?
China is expanding its influence over Africa’s critical minerals industry through a multibillion-dollar investment drive targeting mineral processing, refining and manufacturing. The strategy could strengthen Beijing’s position in global resource supply chains while intensifying competition with the United States for access to strategically important minerals. Highlights:
China Strengthens Its Mining Presence Across Africa
Research published by Beijing-based consultancy Development Reimagined shows that Chinese investors were associated with 32 mining, exploration and development projects spanning 15 African nations, with a combined investment value of US$41.2 billion as of June 2026. Among these initiatives, 19 focused on adding value to extracted resources through further processing and related industrial activities, representing approximately US$16.3 billion in investment.
The distinction is significant because the strategy extends beyond acquiring mining assets and extracting raw materials. It increasingly encompasses processing, refining and manufacturing activities within Africa, allowing more stages of the mineral supply chain to develop closer to the source.
The projects cover strategically important resources, including copper, cobalt, iron ore and other minerals required for industrial production, electric vehicles and clean-energy technologies.
Africa’s Mineral Processing Ambitions Gain Momentum
The investment expansion also reflects changing priorities among African resource-producing nations. Countries such as the Democratic Republic of Congo (DRC), Guinea and Zimbabwe have introduced restrictions or export controls on certain unprocessed minerals to encourage companies to establish domestic processing facilities.
The US$23 billion Simandou iron ore development in Guinea is among the major projects within the broader investment portfolio. Its scale demonstrates the importance of infrastructure and long-term partnerships in developing Africa's mineral resources.
For African governments, greater domestic processing capacity could create employment, support industrial development and increase the economic benefits retained from natural resources. However, achieving these objectives will depend on infrastructure investment, technology transfers and stronger local participation.
US-China Rivalry Adds a Geopolitical Dimension
China's expanding presence comes as Washington intensifies efforts to diversify critical mineral supplies and establish partnerships with African resource producers. Both economies require reliable access to these materials for advanced manufacturing, defence applications, electric vehicles and renewable energy infrastructure.
The competition could provide African governments with greater negotiating leverage when securing investment, financing and industrial development commitments. Nevertheless, a larger foreign investment footprint does not automatically translate into technology independence or stronger domestic industries.
What Lies Ahead?
China's US$16.3 billion commitment to African mineral processing highlights a strategic shift towards securing influence across the entire resource value chain. The expansion could strengthen supply security for Chinese manufacturers while accelerating industrial development in resource-rich African economies.
However, the long-term benefits will depend on whether projects deliver operational processing capacity, meaningful technology transfers and sustainable economic participation. For global mining companies and investors, developments in Africa could influence future mineral supply, processing competition and investment opportunities across the critical minerals sector.
Note- All data presented is based on information available at the time of writing.
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