In a remarkable move, billionaires Bill Gates and Jeff Bezos have joined forces to invest in mining ventures targeting rare metals across Africa.
- Bill Gates and Jeff Bezos are investing in mining ventures targeting rare metals in Africa
- KoBold, a US mining startup supported by Gates and Bezos, secured $537 million in funding
- African countries have the opportunity to generate significant revenue by tapping into the demand for rare metals
Africa’s rare metal sector has recently drawn the attention of investors owing to its very important use globally.
From electric vehicles, renewable energy, electronics, smartphones, aerospace and defence, Africa’s rare metals are essential to various industries, and their uses are broad, driving significant global demand.
These metals, which include lithium, cobalt, platinum, and others, are crucial to several emerging technologies and sectors.
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US mining startup targets Africa
KoBold, a US mining startup supported by billionaires like Bill Gates and Jeff Bezos, secured $537 million in its latest funding round.
Recall last year, KoBold Metals announced the discovery of a vast copper deposit in Zambia, a rare find that could play a crucial role in the global race for materials vital to the energy transition.
Copper, essential for renewable energy and electric vehicles, is in high demand.
According to Bloomberg, the firm identified its Mingomba copper mine in Zambia as a key area of focus.
The investment aims to support new exploration, advance “high-potential” projects to production, and strengthen research and development efforts.
Zambia, Africa’s second-largest copper producer after the Democratic Republic of the Congo, stands to benefit significantly from this discovery.
To date, the firm has raised $1 billion as part of its strategy to challenge China’s dominance in the global mineral supply chain.
With significant stakes in major tech companies, these investors are aiming to capture a larger share of the rare metals sector, which plays a key role in their industries.
KoBold employs artificial intelligence, including OpenAI’s generative AI, to analyze historical and scientific data to identify mineral deposits.
Africa’s rare metal sector
Africa’s rare metal industry shows substantial economic potential, though it faces several challenges that may impact its long-term success.
Set to contribute 9% of the global supply, the continent’s rare earth elements (REEs) sector is expanding rapidly, with partnerships between local operators and global investors aimed at speeding up project development.
With abundant reserves of rare metals like lithium, cobalt, gold, and platinum, Africa is well-positioned to become a key player in the global market.
Rising interest in Africa’s rare metals
Africa’s rare metal resources have become a focal point for global powers and investors seeking to secure critical minerals essential for the energy transition and technological advancements.
China controls 60% of global rare earth production and 85% of processing capacity, raising concerns over market concentration.
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Amid growing geopolitical tensions, the US, Australia, and Canada are actively seeking to diversify their sources of rare earth elements, reducing their dependence on China for production and processing.
This has created an opportunity for African nations with abundant rare metals.
By tapping into this demand, African countries can generate significant revenue to support socioeconomic goals and reduce poverty.
