African Continent's Critical Minerals: After the United States, China Begins to Focus on Madagascar's Critical Minerals

¬ Chinese Ambassador Seeks "Close Cooperation" with Madagascar's New Government, China Expresses Interest in Madagascar's Mining Sector.

¬ The US Energy Fuels Company Already Controls the Toliara Sand Project, Which Can Deliver 21,800 Tons of Monazite Annually Over 38 Years

¬ Madagascar's Political Transition and Its 5% Share in GDP from Mining Have Created Opportunities for Foreign Major Powers to Compete for Critical Minerals

After Energy Fuels Company Regained Control, the Toliara Project in Madagascar Reverted to the US in 2024. The Project Has a Large Amount of Sand and Rare Earth Reserves, Highlighting the Richness of Madagascar's Subsoil, Continuing to Attract Foreign Major Powers.

While Seeking to Develop Madagascar's Mineral Resources, China Is Quietly Expanding Its Engagement with the New Authorities in Madagascar. On Wednesday, November 26, Chinese Ambassador Ji Ping Met with Minister of Mines Carl Andriampanini, Requesting "Close" Cooperation to Enhance the Attractiveness of Madagascar for Mining Investment. His Request Was Made While the US Energy Fuels Company Pushed the Development of the Toliara Sand Project.

China and Madagascar Have Maintained a Modest Mining Partnership, Including a Memorandum of Understanding on Training for the Mining Department at Antananarivo University. The Ambassador Aims to Deepen This Cooperation, Especially in Geological Mapping. According to a Statement from the Ministry of Mines, Mr. Ji Also "Expressed His Desire to Encourage Chinese Investors to Invest in Madagascar."

This Meeting Did Not Result in Any Specific Agreements. However, China's Interests Came at a Sensitive Period of Political Transition. The Elected President of the Democratic Party, Andry Rajoelina, Was Overthrown by the Army Led by Colonel Mike Randrianarison in October. The New Regime Is Seeking Investors to Unleash the Potential of Madagascar's Mining Sector. Although the Energy Transition Requires a Large Amount of Mineral Reserves, the Mining Sector Only Contributed 5% to GDP in 2023.

Madagascar is the Second Largest Producer of Graphite in Africa, It Also Extracts Nickel, Cobalt, and Rare Earths, Which Have Spurred Competition Among Major Global Powers. Chinese Mining Companies Have Been Actively Developing Cobalt and Copper in the Democratic Republic of the Congo, and Lithium in Mali, and Can Use Madagascar to Further Consolidate Their Influence Over Important Minerals in Africa. This Influence Is Increasingly Being Challenged by the Trump Administration, Which Seeks African Partnerships to Reduce U.S. Dependence on China as Part of a Broader Trade Conflict with Beijing.

Because the Energy Fuels Company Project Can Supply 21,800 Tons of Monazite Annually Over 38 Years, the U.S. Already Has a Strategic Advantage. The Company Expects to Make a Final Investment Decision in 2026 and Plans to Start Commercial Production in 2028, Waiting for Regulatory Approval.

The Progress in Toliara Has Been Faced with Setbacks. From 2019 to 2024, Social Opposition and Environmental Issues Halted Development. At the End of 2024, Energy Fuels Company Signed a Memorandum of Understanding with the Now-Overthrown Rajoelina Government, Including a Commitment of $8 Million in Community Investment. The Future of This Emerging Partnership Depends on the Existence of Madagascar, Depending on the Decisions of the New Authorities in Madagascar.

Source: ecofinagency

Original: www.toutiao.com/article/1849932296337923/

Statement: The article represents the views of the author himself