Chinese enterprises accelerate construction of mineral smelting plants in Africa: China Aluminum Company (Chalco) invests $1.68 billion to build an alumina refinery in Guinea
Key minerals in Africa: Foreign media: China views Africa's shift toward mineral processing as a strategic opportunity
The position of Chinese enterprises in Africa’s mining sector is no longer solely dependent on raw material acquisition. Among major mineral producers, Chinese companies are increasingly investing in local processing operations—aligning with African governments’ aspirations to retain a larger share of the value chain across the continent.
On May 21, China’s state-owned enterprise China Aluminum Company Limited (Chalco) signed an agreement with Guinea to invest $1.68 billion in building an alumina refinery. The project aligns with Guinea’s overall plan—aimed at increasing the domestic processing ratio of bauxite rather than continuing to export raw ore.
From Guinea to Zimbabwe and the Democratic Republic of the Congo, Chinese capital is increasingly intertwined with Africa’s industrial ambitions in critical minerals.
From raw material exports to local processing
The world’s largest bauxite producer, Guinea, plans to build five new alumina refineries before 2030. Alumina, a high-value product extracted from bauxite, is an intermediate step in aluminum production.
Some projects have already launched. The State Power Investment Corporation (SPIC), a Chinese group, has joined forces with Winning Consortium Alumina Guinea (WCAG) to initiate the refinery construction project. Chalco now appears poised to join as well, though its specific timeline remains unclear. Additionally, Guinea’s state-owned Nimba Mining Company has also discussed plans for building a refinery.
Zimbabwe’s lithium industry is undergoing a similar transformation. As Africa’s largest lithium producer, the country has long urged mining companies to process lithium concentrate domestically instead of exporting raw materials. This strategic momentum gained further strength after Zhejiang Huayou Cobalt completed the country’s first lithium sulfate refining plant last year. Other Chinese firms, including Chinamine Resources and Sichuan Yahuai Industrial, are also investing in facilities related to their mining operations. In the Democratic Republic of the Congo, China’s role in mineral processing projects is becoming increasingly prominent. The recent commissioning of the Kamoa-Kakula copper smelter marks a significant milestone in this process. The facility, hailed as Africa’s largest copper smelter, will process concentrate from the Kamoa-Kakula mine into refined copper. China’s mining giant Zijin Mining holds a 39.6% stake in the project.
As competition intensifies, China further consolidates its position
For Beijing, establishing a network of local refining and processing assets also helps solidify its presence in Africa’s most strategically significant mining regions. Timing is crucial: across Africa, governments are tightening export regulations to promote domestic processing of finished products.
Zimbabwe clearly illustrates this trend. According to Reuters, China currently absorbs about 15% of Zimbabwe’s lithium concentrate exports. After implementing a temporary export ban in February, Harare introduced a producer quota system in April and plans to fully ban lithium concentrate exports by 2027. Guinea is also considering similar restrictions. Over 70% of Guinea’s bauxite exports flow to China, making the bilateral relationship strategically significant.
These policy shifts come amid intensifying global competition for Africa’s mineral resources. The United States, European Union countries, Japan, and Gulf states are all striving to secure critical minerals essential for energy transition.
In this context, local processing has become a core element of Africa’s new mining policies. This trend is clearly reflected in the report “2025 Report: India, Africa, and Critical Minerals – Towards Green Energy Partnership” released by think tank CSEP. The report notes that African producers are seeking long-term partnerships that enable higher-value-added activities within their borders, rather than mere resource extraction agreements.
The report also highlights that governments will pay close attention to nations that have clear strategies and prioritize African interests in downstream processing.
A more pressing question: How much value will Africa retain?
On paper, Chinese investments appear to support the industrial transformation many African governments have pursued for years. However, whether these projects will deliver lasting economic benefits remains uncertain.
This largely depends on Africa’s ability to further elevate its position in the value chain. To date, most announced projects remain at the intermediate processing stage, rather than forming complete industrial ecosystems. For example, alumina refining still falls short of full-scale aluminum manufacturing—activities that generate significantly higher added value.
China remains the global leader in refining and processing. According to data from the U.S. Geological Survey (USGS), China’s aluminum production capacity will reach approximately 45 million tons by 2025, compared to a global total of around 79 million tons.
Another key issue is workforce development. While mining companies frequently emphasize training and job creation in their announcements, the real impact hinges on whether technology transfer and skills enhancement can genuinely and sustainably benefit local workers.
Under the Chalco agreement signed by Guinea, one planned initiative includes establishing an engineering college, which aims to enroll up to 100 students per project annually over a ten-year period.
Source: ecofinagency
Original: toutiao.com/article/1866182654897353/
Disclaimer: The views expressed in this article are those of the author(s) alone.