Africa is a continent blessed with abundant natural resources, making it one of the most naturally endowed regions in the world. According to our recent article, the United Nations Environment Programme estimates that Africa holds approximately 40% of the world’s gold deposits and is a significant source of about 90% of global chromium and platinum deposits.
However, despite the vast wealth of mineral resources present on the continent, Africa continues to face significant economic challenges, with many countries struggling as some of the world’s poorest or least developed economies. Regrettably, a considerable portion of the natural resources remains untapped, stuck in their underdeveloped stages.
Ironically, even those African nations that have successfully exploited their mineral wealth often do not reflect the expected prosperity. Instead, they find themselves heavily indebted to foreign lenders who provide financial aid in exchange for access to these valuable resources.
Africa’s potential is vast, with its rich mineral resources offering tremendous opportunities for growth and prosperity. Fostering transparent governance and fair trade practices can help ensure that Africa benefits more equitably from its vast natural wealth. More so, by embracing responsible and inclusive development practices, the continent can unlock its true potential and pave the way for a brighter future. Below is an inexhaustive list of leading countries in natural resource production in Africa:
#Ghana, Gold
Ghana is the largest gold producer in Africa, followed by South Africa. Last year, the West African country reclaimed its position from South Africa as the top producer on the continent after recording a 32% increase in gold production. Also, Ghana’s gold output totalled 3.74 million ounces, up from 2.82 million ounces in 2020.
Gold accounts for 37% of the country’s total exports and nearly 90% of total mineral exports. traditional companies and artisanal miners contributing to Ghana’s gold production, some of the largest include Kinross Gold (Chirano mine), Newmont Goldcorp (Akyem and Ahafo mines), AngloGold Ashanti (Obuasi and Iduapriem mines), Gold Fields (works the Tarkwa gold mine) and Asanko Gold (Asanko mine).
Ironically, Ghana does not have the largest gold revere on the continent. Algeria is the African country with the largest gold holding, at 174 metric tons. The North African country was followed by South Africa, with official gold reserves reaching 125 metric tons. Moreover, Libya and Egypt ranked next, with 117 metric tons and 80.73 metric tons, respectively.
#South Africa, platinum and iron ore.
South Africa is abundant with natural resources. It is the largest producer of some of the key natural metals, including Platinum Group Metals (Platinum or PGM) and Iron Ore. As of last year, South Africa produced about 140 metric tons of platinum, according to a Statista estimate. Russia comes in a distant second place for world platinum production, having produced some 20 metric tons that same year.
While South Africa stands as the world’s largest producer of platinum, it is Africa’slargest producer of Iron Ore, a metal used in construction, transportation, the development of energy infrastructure and the production of household appliances. Mauritania and Algeria are other key producers of Iron Ore in Africa.
Platinum has a wide range of uses but it mostly catalyzes conversion processes. It helps to speed up chemical reactions and reduce the energy needed to convert a substance. Although it is used extensively for jewellery production, it also serves as a catalytic converter for the electronic and automotive industries, It is also used in the production of medical equipment.
Leading producers of PGM and Iron Ore in South Africa are Anglo American, Sibanye Stillwater, Impala Platinum, Northam Platinum, Rio Tinto, Afrimat Limited, Anglo Gold Ashanti and African Rainbow Minerals.
#Nigeria, Oil
Nigeria is Africa’s largest oil-producing country. Nigeria reclaimed the top spot on Africa’s largest producers list, surpassing Libya and Angola after reporting 1.18 million barrels per day, bpd for May 2023. Its crude volume rose by 185,000 barrels from 999,000 in April to 1.18 million.
But the battle for the top position lies between Nigeria and Angola. In 2022, Nigeria had the highest crude oil production, followed by Angola and Algeria. The West African country had maintained the top spot for decades until 2022 when it succumbed to the second position due to low output in the first half of the year. However, a few months later, production increased and Nigeria reclaimed its spot.
Last April, Angola displaced Nigeria at the top to become Africa’s largest producer. According to the Organisation of Petroleum Exporting Countries (OPEC), the West African country lost the spot to Angola due to poor outputs. While Angola recorded a 1.06 million barrels per day (bpd) production capacity in April, Nigeria recorded an oil output of 999,000 bpd.
#Botswana, Diamond
Botswana is the largest diamond producer in Africa and the second largest in the world, net only to Russia. Diamond exploration is performed solely by Debswana, a joint venture between the Southern African nation and De Beers- a top global diamond producer and a subsidiary of London-based Anglo America.
In 2021, diamond production in Botswana amounted to a total of 22.9 million carats. Last year, production in Debswana increased by 11% (5.8 million carats), primarily driven by strong plant performance, particularly at the world’s richest diamond mine, the Jwaneng mine. Sales of rough diamonds by Debswana jumped 54% in the first six months of 2022. By the end of 2022, diamond sales from the joint venture stood at $4.588 billion compared to $3.466 billion in 2021.
The Democratic Republic of the Congo is the second-largest diamond-producing country in Africa.
#DR Congo, Gold (copper and cobalt)
The Democratic Republic of Congo (DR Congo) is the global largest producer of cobalt, the fourth-biggest producer of copper and the second-largest producer of diamonds. As of 2021, the Central African country accounted for over 60% of the world’s cobalt production. Mining usually takes place in the Tenke Fungurume Mine (TFM), one of Congo’s key mines for copper and cobalt and one of the biggest cobalt mines globally.
Located in Lualaba Province (formerly Katanga Province), the Tenke Fungurume Mining SA (TFM) is 80 per cent owned by China Molybdenum Co. Ltd (CMOC) and 20 per cent by Gécamines, Congo’s state-owned mining firm. According to a report, the mine accounted for about 14 per cent of global cobalt production last year and is also a significant foreign earner for Kinshasa.
As of December 2020, the mine is estimated to hold 176.8 million tonnes (Mt) of recoverable ore reserves grading 2.1 per cent copper and 0.30 per cent cobalt. It is also projected to sustain 32 years of mining operations at an annual ore production rate of 5.54 Mt.