The United Arab Emirates (UAE) has emerged as a major player in Africa's critical minerals sector, driven by the global shift towards clean energy and the need to diversify its economic portfolio. The UAE has made significant investments in Africa's mining sector, particularly in copper-rich Zambia and the Democratic Republic of the Congo (DRC). This article highlights the UAE's recent mining transactions, its growing presence in Africa's critical minerals sector, and the potential challenges it faces due to its role as a global financial hub.
The United Arab Emirates ("UAE") has shown significant interest recently in participating in Africa's critical minerals industry. Other Gulf nations have expressed interest in acquiring African mines, but the UAE was the first to actually begin acquiring them.
The interest from the UAE is primarily driven by the global shift towards clean energy and the need to diversify the country's revenues away from such heavy oil dependency.
Previously, most of the UAE's investments in Africa were concentrated in infrastructure and logistics. State-owned companies like Dubai Ports World ("DP World") and AD Ports (formerly Abu Dhabi Ports Company) have established a significant presence by taking control of a network of ports across the continent, including ports in Somaliland, Tanzania, Senegal, Egypt, Algeria, Mozambique, Kenya, and Nigeria.
UAE Recent Mining Transactions Focused on Copper in Zambia and the DRC
In 2022, a joint venture named Primera Gold was established by the UAE (55%) and the Democratic Republic of the Congo (45%) to export gold from the DRC to the UAE. In just 45 days, the venture exported 207 kg of gold.
In 2023, Zambia's government agreed to sell 51% of the Mopani copper mine to Abu Dhabi-based International Resources Holding ("IRH") for $1.1 billion. The deal closed shortly thereafter in February 2024.
Shortly after acquiring Mopani, IRH made a bid for another copper mine in Zambia, the Lubambe Mine. An Australian firm owns the mine and agreed to reopen bidding for IRH to purchase 80% of the mine, which had previously been under contract to be sold to a Chinese mining company, JCHX Mining.
"IRH's commitment (at Mopani) has opened doors for additional investment opportunities in Zambia, including an intention to bid for a stake in the Lubambe Copper Mine," the company said in an email response.
According to statements made by the company, IRH intends to move beyond copper into other critical minerals. "In the forthcoming years, our goal is to seek diversification opportunities beyond copper... (with) targeted investments in other pivotal energy transition minerals, such as cobalt, nickel, rare earth elements, manganese, graphite, and the 3T minerals - tin, tungsten, and tantalum," it said.
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International Resources Holdings
IRH, headquartered in Abu Dhabi, UAE, is a natural resources extractive company involved in the entire mining value chain, including upstream, midstream, and downstream processes. The company operates in 15 countries with a diverse portfolio of metals and minerals, employing around 10,000 people and serving approximately 2,000 customers.
It is a publicly listed entity in the UAE and is the region's second most valuable listed company with a market cap of around $23 billion. IRH is managed by the influential Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and deputy ruler of Abu Dhabi.
Primera Group
Primera Group is involved in several mining ventures in the Democratic Republic of the Congo (DRC). They have signed a $1.9 billion deal with the state-owned mining company Sakima to develop at least four mines in the provinces of South Kivu and Maniema. In the deal, it also secured a 25-year contract to export artisanally mined ores from the DRC.
Five tonnes of gold were dispatched in the first year of operation, valued at nearly $300 million. The company plans to move between one to two tonnes per month, eventually.
Primera Group has substantial operations in Tanzania, positioned in the Lupa gold fields and Lake Victoria greenstone belt. It has set up in-house testing and smelting facilities in these centers.
UAE's Political Baggage in Africa
The UAE's critical mineral ambitions in Africa carry some baggage. Ranked 10th on the Tax Justice Network's Financial Secrecy Index in 2020, Dubai has become a hub for illicit financial activities, including money laundering and evasion of international sanctions. These revelations, particularly those involving Africa, cast a shadow over the UAE's financial dealings.
In 2018, Somali authorities seized a UAE-owned plane carrying $10 million in cash. The Somali government claimed the money was intended to bribe Somali officials, a charge the UAE denied.
Any reputational challenges the UAE may have in Africa have less to do with overt actions and more to do with its role as an international finance hub, amplified by its close proximity and the sizable role it already has in logistics in Africa through companies such as Dubai Ports World.
