The Mining Sector in West Africa 2023

Challenges

Due to a lack of infrastructure, mining companies are in some cases required to construct railways and ports to export their products, while inadequate and inconsistent electricity supply is also a challenge. Mining companies operating in Burkina Faso, southern Mali and western Niger are vulnerable to attacks by militants.

Introduction

West Africa contains known deposits of various minerals, and many more deposits are still to be discovered as the region is generally underexplored. Mineral production is growing, and dozens of companies are actively exploring the region due to increasing demand for gold and critical minerals needed for the energy transition, developed countries’ desire to reduce their dependence on China for many critical minerals, and China’s need for minerals to feed its manufacturing industries. Challenges include security risks, especially in Burkina Faso, southern Mali and western Niger, and a general lack of infrastructure.

Opportunities

Large iron ore deposits are available to be developed. Many countries are trying to develop their mining industries. Several countries are underexplored. West Africa contains deposits of various minerals, including critical minerals.

Outlook

The World Bank expects prices of most minerals to decline in 2023 due to weaker demand and ample supply. Critical minerals will be the exception as the global energy transition advances. West Africa’s gold production is expected to increase due to the commissioning of new mines and expansions at existing mines. Guinea’s bauxite production is expected to increase from 2023 to 2025, while aluminium prices are expected to decrease in 2023 before rising in 2024 and 2025. The region’s mining industry is expected to grow over the next few years due to higher production and prices, as several bauxite, gold and iron ore deposits, and a few graphite, lithium and uranium deposits are developed.

Report Coverage

This report covers mining in West Africa, including the countries comprising the Economic Community of West African States (Ecowas). It includes information on mining, exploration and deposits in each country, developments, notable players, corporate actions, trade and influencing factors such as the economic environment and security risks. There are profiles of companies mining in the region such as major global companies AngloGold Ashanti, ArcelorMittal, Barrick Gold, Newmont, Orano and Rusal, and regional Simfer, Marampa Mines, Leo Lithium and Firefinch.

Trends

Artisanal and small scale mining forms a large part of the industry. Most gold mines are being constructed by junior and mid-tier companies. Numerous companies, especially Australian and Canadian, are exploring for minerals, mainly gold.