Africa Pushes Back: Challenging China's Dominance in the Mining Sector
UPSC Relevance
Prelims: International Relations (India-Africa relations, China in Africa), Economy (Critical Minerals, Global Supply Chains), Geography (Mineral resources in Africa).
Mains:
GS Paper 2: Effect of policies and politics of developed and developing countries on India’s interests; Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth (resource security).
GS Paper 1: Distribution of key natural resources across the world.
Key Highlights from the News
Main Trend: African countries are strongly pushing back against China's long-standing dominance in the African mining sector.
Reasons for this change: Increasing scrutiny and opposition from African governments and civil society activism.
Failure of the old model: The Chinese model of exporting raw resource extraction in exchange for infrastructure failed to deliver the promised benefits.
New moves by African countries:
Democratic Republic of Congo (DRC): Reviewing mining contracts with Chinese companies.
Zimbabwe, Namibia: Banned the export of unprocessed lithium and other critical minerals.
Goal: To compel investors to process raw materials within the country (local beneficiation) to add value.
Environmental and Social Issues: Environmental and social concerns are increasing against Chinese mining projects in countries like Zambia and Cameroon.
Major Impact: African countries are reclaiming sovereignty over their natural resources. This has the potential to reshape the global supply chain for critical minerals.
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