Key Minerals in Africa: Nickel – The Rising Strategic Metal in Côte d'Ivoire After Gold

¬ The European Bank for Reconstruction and Development (EBRD) is supporting a $180 million financing package to drive the development of Côte d'Ivoire's nickel industry.

¬ Nickel has become one of the country's fastest-growing mining sectors, attracting increasing investor attention.

¬ Côte d'Ivoire is striving to capture greater value from mining activities and is continuously expanding its influence in this sector.

The European Bank for Reconstruction and Development (EBRD) announced on Monday, June 29, that it will participate in a $180 million syndicated financing plan supporting Polynickel West Africa Holding, based in Côte d'Ivoire. This move highlights the rapid growth of the country’s nickel industry—despite its late start in the mining sector, its strategic importance is increasingly evident.

Polynickel, a subsidiary of CoreX Holding, has acquired a majority stake in Côte d'Ivoire’s leading nickel producer, Compagnie Minière du Bafing (CMB). The financing will convert bridge loans used for the acquisition into long-term debt while providing operational funding for the company. The transaction also underscores the growing appeal of Côte d'Ivoire’s nickel industry to international investors; the EBRD’s $30 million loan marks the bank’s first mining investment in Côte d'Ivoire and across sub-Saharan Africa.

The rising status of the nickel industry stands in stark contrast to gold’s continued dominance in Côte d'Ivoire’s mining sector. The country continues to bring new gold mines into production, with gold output more than doubling over the past decade and reaching approximately 60 metric tons in 2025. While gold thrives, the nickel industry has enabled Côte d'Ivoire to secure a foothold in industrial supply chains serving stainless steel production, heavy industry, and clean energy transition.

An Emerging Industry in Less Than a Decade

Côte d'Ivoire’s industrial-scale nickel mining began in 2017, with output reaching 379,800 metric tons. By 2023, six years later, production had surged to 2.48 million metric tons. During this period, the annual growth rate averaged 36.7%, reflecting the industry’s rapid expansion—despite attracting far less investment than gold mining. In 2023, nickel exports exceeded 2 million metric tons, making it the country’s second-largest mineral product after gold. The sector generated revenue of 55.992 billion CFA francs (approximately $100 million).

This growth is underpinned by an estimated 260 million metric tons of laterite nickel resources, primarily located in western Sipilou and northwestern Foungbesso. However, 2024 highlighted the vulnerability of this still-integrating industry. Output dropped to 1.48 million metric tons—a decline of 40.2%. The drop was mainly due to two factors: the suspension of operations at the Foungbesso mine for over two months during the rainy season, and an unfavorable market environment marked by a downward trend in nickel prices in recent years.

Government Aims for Greater Role

Despite challenging market conditions, Côte d'Ivoire’s nickel mining sector remains attractive to both private investors and the government. Earlier this month, the Côte d'Ivoire government approved an increase in its stake in Compagnie Minière du Bafing (CMB). Under the agreement, the government will acquire 1,500 shares from CMB’s controlling shareholder, Polynickel, valued at 3.5 billion CFA francs. Upon completion of the transaction, the government’s direct ownership in CMB will rise from 10% to 25%. Combined with SODEMI’s existing 5% stake, public sector ownership will reach 30%, leaving private operators with 70%.

Increasing its shareholding enables the government to exert greater influence over an industry whose strategic importance is growing. This move reflects a broader trend across West Africa, where governments are seeking to capture a larger share of value created by mining. However, in the medium term, Côte d'Ivoire’s nickel industry must contend with weak pricing driven by global oversupply—particularly from Indonesia—which continues to squeeze producers’ profit margins. Nevertheless, long-term demand for nickel remains promising, fueled by rising demand from electric vehicle batteries and industries related to energy transition. The current challenge lies in transforming the industry’s current rapid expansion into a sustainable mining sector capable of withstanding commodity price cycles while generating greater local value.

Source: ecofinagency

Original: toutiao.com/article/1869487397008587/

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