International interest in Africa’s mining industry is surging, with key players expanding their reach through joint ventures, acquisitions, and stakes in local projects. As the continent’s mineral wealth becomes an even greater draw for global investors, African countries are strategically leveraging these partnerships to boost capital, accelerate project development, and meet ambitious production targets.
The upcoming African Mining Week (AMW) in Cape Town this October will highlight the significant role mergers and acquisitions (M&A) play in the mining sector. It will provide a platform for African projects to present opportunities while also offering global investors the chance to share growth strategies aimed at expanding the continent’s mining industry.
According to the latest research from the Economist Intelligence Unit, foreign investment in Africa’s mining sector is expected to grow substantially in 2025, building on the momentum seen in 2024. Several high-profile transactions have already set the tone for this shift. Earlier this month, UK-based Altona Rare Earths acquired an 85% stake in Botswana’s Sesana Copper-Silver Project from Ignate Minerals, investing heavily in exploration and development.
In December 2024, Australian company Patriot Lithium bought a 90% stake in Zambia’s Kitumba Copper Large Scale Exploration License, facilitating increased funding for exploration and production. Additionally, UK-based Jubilee Metals expanded its presence in Zambia with the acquisition of Project G, its second copper asset, as part of a strategy to increase copper output to 25,000 tonnes annually.
These recent mergers and acquisitions are reshaping the mining landscape in Africa, driving operational efficiencies and fostering innovation. The influx of foreign investment is also creating new opportunities for job creation, infrastructure development, and access to global markets, thereby supporting economic growth across the continent. Moreover, the capital and expertise brought by international partners are helping African countries better utilise their natural resources, addressing challenges like limited financing for exploration and underdeveloped supply chains.
In South Africa, M&A activity reached a remarkable $10 billion between June 2023 and June 2024, with 32 deals completed, up from 24 the previous year, according to PwC. Noteworthy transactions include Kenya’s Marula Mining securing a 51% stake in South Africa’s Mansera Kruisrivier Cobalt Holding Company in July 2024, with funding directed towards feasibility and aerial studies to advance the project.
China’s Baowu Steel Group made significant moves in June 2024 with its acquisition of stakes in Guinea’s Simandou Project, the largest untapped iron ore deposit in the world. In Mali, Ganfeng Lithium acquired an operational stake in the Goulamina Lithium Mine, in a $342.7-million deal with Australia’s Leo Lithium in May 2024. Meanwhile, the UAE-based International Resource Holdings entered Zambia’s market by acquiring Mopani Copper Mines for $1.1 billion in May 2024, enhancing exploration and production at one of the country’s largest copper facilities.
As African countries continue to focus on increasing mineral production to fuel economic growth, M&A activity is expected to intensify. Global players are eager to secure larger stakes in Africa’s vast resources, with the upcoming AMW providing a vital platform to showcase projects, foster partnerships, and facilitate deals that will shape the future of the mining industry.
