China Invests $16.3 Billion in African Mineral Processing

China has invested 16.3 billion in African projects processing critical minerals or manufacturing products from them. A report by Beijing-based consultancy Development Reimagined tracked 41.2 billion in Chinese investment across 32 mining, exploration and development projects in 15 African countries up to June 2026.

Investment and local processing

Nineteen projects involve mineral value addition within Africa. However, processing and manufacturing remain a relatively small share of the total investment; some large mining deals have limited or unconfirmed commitments to domestic processing. The $23 billion Simandou iron ore development in Guinea is one major project in China’s African mining portfolio.

Countries including the Democratic Republic of Congo, Guinea and Zimbabwe have restricted or banned exports of certain raw minerals to encourage domestic processing. The minerals involved in the wider competition include copper, cobalt, iron ore and rare earths, used in advanced manufacturing and clean-energy technologies.

US competition and China’s engagement

In December 2025, the United States secured an agreement giving American companies preferential access to designated mining assets in the Democratic Republic of Congo. In October 2026, Chinese President Xi Jinping met Botswana’s President Duma Boko. Xi offered support for mining development, financing and technology transfers, and said Africa’s resources should not be used for geopolitical rivalry.

Important Facts for Exams

• Critical-mineral lists: Critical-mineral lists are nationally defined: both the materials included and the meaning of “critical” vary between countries and can change over time.
• Supply-risk assessment: OECD supply-risk assessment considers substitutability, recycling rates and concentration of production in politically unstable countries.
• Ore beneficiation: Ore beneficiation raises economic value by removing gangue, producing a higher-grade concentrate alongside a tailings waste stream.
• Simandou infrastructure: Simandou’s mining partners and Guinea formed a dedicated infrastructure company to finance, build and operate its 622-kilometre railway and deep-water port.