Chinese control over African and global mining\u2014past, present and future

Magnus Ericsson,Olof Löf,Anton Löf

doi:10.1007/s13563-020-00233-4

Magnus Ericsson, Olof Löf + Show 1 more

Open Access

https://doi.org/10.1007/s13563-020-00233-4

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Abstract

Chinese companies are far from taking control over African or global mining. In 2018, they control less than 7% of the value of total African mine production. Chinese investments in African mining of non-fuel minerals between 1995 and 2018 have contributed to production growth but it has also increased Chinese control over African mineral and metal production. There is evidence pointing to a continued Chinese expansion in African minerals and metals but at a slower pace than in the past decade. Through a detailed analysis of every mine, fully or partially controlled by Chinese interest in Africa and all other parts of the world the paper also measures total Chinese control over global mine production to be around 3% of the total value.

Highlights

Africa’s resources have been a tempting target for adventurers, kings, traders, governments and companies for centuries
A maximum in Chinese mining foreign direct investment (FDI) came in 2013 one year after the global peak and reached a 7% share of total global mining investments, in most years the share was below 5%
In 2018, Chinese companies controlled less than 12% of the total value of minerals and metals produced in Zambia

Summary

Introduction

Africa’s resources have been a tempting target for adventurers, kings, traders, governments and companies for centuries. The European imperial powers dividing Africa at the end of the nineteenth century spurred a scramble for African resources with horrifying consequences for Africans and their societies (Diogo and van Laak 2016). Africa has a mining and metallurgy tradition going far back, it was only with the diamond and gold rushes in southern Africa that Africa’s minerals resources came into focus (Yachir 1988). European and North American interests dominated African mining, with a short interlude of increased national control following independence and nationalisations in the middle of the century. In the early twenty-first century, a new scramble for Africa seemed to start (Southall and Melber 2009).

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