Africa is one of the world’s most dynamic mining frontiers.
The minerals sector stands as the continent’s greatest untapped asset, with Africa widely estimated to hold about 30% of the world’s mineral reserves.
It is a potential engine for diversification, industrialisation and sustainable growth.
Regulatory uncertainty and political complexity remain real considerations in parts of Africa, but that is only part of the picture. A growing number of ASX-listed resource companies are hitting paydirt across the continent — all while maintaining Australian governance standards.
Over the last two decades, Australian mining companies have taken on an increasing role in exploring and developing projects in Africa, with private-sector activity in many markets outpacing Australia’s broader institutional engagement.
Australia’s current commercial mining-related activity in Africa centres around about 170 ASX-listed companies operating across some 35 African countries. The scale of exploration, extraction and processing involving current and potential investment is estimated at more than $40 billion, according to an Australian parliamentary inquiry.
Australia’s unique investment landscape
Marvel Gold (ASX: MVL) executive director Tim Strong says the Australian investor market is currently far stronger than those seen in London and Canada.
“LSE and TSX companies and investors, backed by old money and ‘rinse and repeat strategies’, typically play the stock market compared to ASX companies that seem to be far more interested in actual resource growth and production,” he said.
“Now we’re seeing more TSX or LSE listed companies jumping into the ASX due to the unique investment environment.
“Australians are very aware of mining, it is a major part of the country’s heritage, and much of the general population is also invested in mining — whether it be through superannuation funds or direct ASX shareholdings.
“This is not something that is typically seen throughout the general population in other regions, especially on the LSE, where investing is often deemed as reserved for old money or high-net worth individuals.”
Booming interest
From the established gold and copper belts across Africa’s west to the rapidly evolving critical minerals landscape in the east, domestic governments and mine operators are actively seeking international partners who can deliver efficiency, safety, sustainability and operational excellence to drive industry growth.
Australia’s strength in the extractives sector has allowed Australian companies to develop expertise across the entire resource development timeline.
For Australian mining equipment, technology and services (METS) companies, this is a unique window of opportunity. It is a chance to apply world-leading expertise in markets which are expanding, diversifying and eager for high-quality solutions.
The mining sectors across Africa are entering a new phase of growth, defined by diversification, rising critical mineral demand and a clear shift toward more sustainable, technology-driven operations.
As infrastructure improves in some jurisdictions, regulatory environments mature in others and major projects accelerate, several African mining regions are emerging as stronger opportunities for Australian METS innovation and governance-led partnerships.
West Africa has emerged as one of the most active and resilient mining corridors on the continent, underpinned by countries including Ghana, Côte d’Ivoire and Burkina Faso.
Gold remains the dominant export commodity for the west, with Ghana recognised as Africa’s top gold producer. Gold continues to dominate Ghana’s mining revenues and exports, while the government is also seeking to expand activity in bauxite and manganese. This is broadening the mix of mining services and technologies in demand.
In parts of the region, governments are also looking to deepen mining value chains and attract more technically capable investors as projects become more complex.
Policy throughout the region continues to evolve to facilitate international investment and industry growth. The Ghanaian government has vowed to abolish value-added tax on mineral exploration and reconnaissance, removing a 15% tax deemed to have negatively affected the country’s competitiveness as a mining jurisdiction.
East Africa is rapidly emerging as a strategic hub for traditional and critical minerals, driven by improving political stability and expanding infrastructure backed by an increasing number of international investors.
Tanzania is the cornerstone of the region’s mining activity, with significant production of gold and a growing pipeline of critical minerals projects linked to global battery supply chains.
“Australia has great relationships in Kenya, Tanzania, Zimbabwe, Botswana and Zambia,” Mr Strong said.
“I think it may take a little longer for that to get into the [former French colonies] because that’s where we seem to see quite a lot of anti-West rhetoric.
“But I see it as a great start, and I’ve seen these countries being very receptive to Australian investment as these companies can make a significant contribution to the socio-economic development of host countries.”
Bureaucracy and corruption
Governments across Africa, notably in Kenya, Uganda and Rwanda, are progressing policy reforms to balance resource development with community engagement and sustainable practices to attract investment and diversify their minerals sectors.
“The main difference between the east and the west is that East Africa can be considered very bureaucratic, but it’s a prescribed step-by-step process,” Mr Strong said.
“Whereas in West Africa you could often just do all the steps in one by paying someone some money. From a moral viewpoint, we shouldn’t be operating in countries where we’re expected to pay under the table and potentially negatively impact the local community.
“Bribes and corruption do not help countries develop and we want to have a positive impact on the regions we operate in by paying taxes, paying fair wages to employees and developing their skills — you can’t do that under a corrupt regime.”
Getting a grip on governance
The impacts of colonialism remain embedded in parts of Africa’s resource economy, with some foreign governments, institutions and investors continuing to exploit political weaknesses to secure resources through investment-led projects.
During the 19th and 20th centuries, colonial powers and transnational resource companies imposed heavy costs on local communities in environments where modern social and environmental safeguards were weak or absent.
In many mineral-rich jurisdictions, governments struggle with corruption and ongoing conflict dynamics, which continue to complicate their ability to ensure that miners, both domestic and international, comply with existing legislation and that operations benefit local communities.
China’s rise as a financier across Africa has become another key part of the story.
In 2006, China released its Africa Policy as it moved to deepen trade and investment ties and secure long-term resource access.
China later launched its Belt and Road Initiative (BRI) in 2013, expanding its infrastructure and investment links across more than 150 countries throughout Africa, Asia and Europe.
China remains the largest bilateral creditor to Africa, providing the continent with extensive infrastructure, mining and energy financing. According to Green Finance and Development Centre, Africa was the top region for BRI investment in 2025, which reached $86.6b [US$61.2b].
Despite this, Chinese resource companies have been heavily criticised for exploiting Africa’s resources without sufficiently contributing to the socio-economic development of the region.
Research published by the German Institute of Global and Area Studies found mixed social impacts around Chinese-controlled mines — while nearby communities showed higher unemployment risk and stronger anti-Chinese sentiment, they also had access to better infrastructure such as paved roads and piped water.
The DRC dilemma
According to the Cobalt Institute, the Democratic Republic of Congo (DRC) accounted for roughly 75% of global cobalt supply in 2024.
China now owns or holds stakes in 15 of the largest copper and cobalt mines in the DRC, according to the Center for Strategic and International Studies (CSIS).
In 2023, the DRC Government renegotiated its cobalt-for-infrastructure deal with China to increase its share in a cobalt and copper joint venture with Chinese companies from 32% to 70%.
Following the negotiation, the DRC and Chinese investors reached an agreement under which China would invest $7b in infrastructure projects across the DRC.
Despite this, the DRC remains one of the world’s poorest countries by income measures, even as mining exports continue to underpin growth.
Chinese corruption
There is growing concern around Chinese companies exploiting weak institutions, policy gaps and lack of regulatory enforcement across West Africa.
Chinese entities — including individuals and private corporations — are expanding both legal and illegal mining activities across the region. These activities often go unchecked and have significant repercussions for local communities and the surrounding environment.
While some operations have created jobs and significantly contributed to infrastructure development in mining communities, inadequate policy and enforcement mechanisms have allowed many projects to negatively impact already limited water resources, biodiversity and community health.
These dynamics are visible in countries including Nigeria, where illegal mining has become a growing security and governance challenge.
Nigeria’s mining sector faces significant threats from illegal mining operations and, according to the Institute for Security Studies, has seen growing foreign involvement, particularly from Chinese nationals.
The persistence of illegal operations continues to undermine the region’s already weak regulatory authority and expose gaps in security that allow foreign stakeholders to exploit Nigeria’s resources with little to no consequence.
Chinese involvement in mining across West Africa, in countries including Burkina Faso, Mali and Niger, is also linked to organised crime and has become a funding source for armed groups and terrorists, such as Boko Haram and bandits in the Nigerian state of Zamfara, according to the Atlantic Council.
Resource nationalism and anti-West rhetoric
Following postcolonial African independence, ideological policies and regime changes led to the nationalisation of resource exploitation that allowed governments to obtain complete control over resources to gain political power under the guise of centralised economic planning.
A wave of military coups has also led to several states, namely Burkina Faso, Mali and Niger, to be governed by military juntas. The military-led governments often approach the issue of resource nationalism combatively, and sometimes violently, leading to clashes between governments and mining companies.
In Mali, this conflict led to the incarceration of three Resolute Mining (ASX: RSG) executives in 2024 following a tax dispute. The Australian company agreed to pay $160m to Mali’s military-led government to secure the release of the three employees.
In 2025, Mali intensified pressure on Barrick over tax and code disputes, with reports that the government had demanded about US$500m in taxes and fines.
Late last year, more than 90 mining exploration permits, including those held by major international company Harmony Gold, were revoked with the Malian government citing non-compliance.
One of the main reasons for these conflicts is the adoption of the anti-colonial or anti-Western rhetoric shared by the military juntas in these countries which has become a means to legitimise the military coups that have multiplied throughout the region since 2020.
“No one would say any country in Africa is an easy jurisdiction to operate in, you just don’t know what’s going to happen overnight in any of these jurisdictions,” Mr Strong said.
“However, it is very high risk but comes with extremely high reward.”
Marvel Gold first entered the market through Africa’s west with operations in Mali but has since shifted its focus to Tanzania and has now divested its Mali portfolio due to conflicting governance standards, including political corruption, with stakeholders.
“Marvel had three projects in Mali, and we found it impossible to work there,” Mr Strong said.
“The relationship with the government was bad, they didn’t want to work with us and it was impossible to renew licences. Obviously if you can’t renew a licence, you can’t do any work.
“The government in Mali is extremely corrupt. We were asked for money just to sit down in the Ministry of Mines to conduct normal business — it was just impossible to do legitimate business in the country.
“In Tanzania the mining industry is backed by the government, and they want to work with Australian companies to encourage investment.
“We’re helping these governments to actively rewrite their laws in order to improve not just investment from Australian companies, but also all international investors.”
In 2010, Tanzania’s mining sector underwent major legal reform with the Mining Act 2010.
After facing several challenges, further amendments were made to the act in 2017 to strengthen compliance and local benefit mechanisms.
Simultaneously, additional legislation was introduced including the Natural Wealth and Resources Act and the Natural Wealth and Resources Contracts Act.
Despite the uncertainty brought by these reforms, Tanzania has seen significant interest and investments returning to the mining sector. Miners and governments now appear to have a mutual understanding that mining should benefit all stakeholders, from surrounding communities to shareholders.
“Marvel Gold entered Tanzania when it was still considered a poor investment,” Mr Strong said.
“Since Tanzania has overhauled its policies, we’ve seen nothing but benefits for all stakeholders. We’re proud that we’re doing things in Tanzania the correct way.
“Some countries in Africa are struggling with reforms, particularly those in West Africa — Mali, Burkina Faso — where the anti-West rhetoric is relatively strong. It’s a regression from what we’ve seen generally on the continent, especially in Tanzania.”
Guinea: turning the tide
Mining projects in Guinea are changing the rhetoric for foreign investors operating in West Africa.
The Simandou iron ore project — the new poster child for mining in West Africa — is one of the largest iron ore developments in the world and has the potential to increase Guinea’s GDP by 26% by 2030, according to the International Monetary Fund.
After decades of development delays, corruption inquiries and layered international negotiations, the first shipments from the project left Guinea in December 2025.
Simandou’s success marks a shift from potential to realised economic impact for West Africa. Extensive transport infrastructure has been developed to support the project and has the potential to benefit the broader development of the country by creating multiuse transport networks.
“We thought that Guinea had a reasonable chance of ending up in the same place as Mali and Burkina Faso following the coups as the Guinean Government was very supportive of those coups,” Mr Strong said.
“There are some major ASX players operating in Guinea, and we thought there was going to be a concern.
“However, it seems that in the last 12 months, the Guinean Government, even though they had a coup and it’s now run by the military, seem to understand that Western mining influence is important to development.
“It’s still one of the riskier jurisdictions, particularly for western companies, but I don’t think it’s going to go the same way as Mali and Burkina Faso.”
Investing in African resource operations is layered with complexity. There is far more to consider than the typical boom and bust cycles associated with operations in major western mining jurisdictions.
“Investors also have to deal with the geopolitical cycles of changing regimes and military coups as well as shifting domestic and foreign policy,” Mr Strong said.
“You still have to pick and choose your countries of interest wisely. However, governments across Africa are working harder to encourage further foreign investment — and Australians have stepped up from a trade delegation point of view.”
