The Ashanti region of Ghana is home to an open-pit gold mine. Africa is a major source of minerals that support global industries, ranging from precious metals like gold to high-tech, rare-earth elements. In fact, African mines produced approximately 870 metric tons of gold in 2021, which accounts for about a quarter of the world’s total output.

Ghana, South Africa, and Mali are among the major gold-producing countries, where large-scale industrial mines and artisanal mining operations coexist. Gold extracted from these locations is typically shipped out of Africa as Doré bars (partially refined gold) and is then further refined in major international centers before reaching global buyers. The supply chain for African minerals begins at the mine site, where miners extract ore and process it to concentrate the gold content. Traders or exporters purchase the gold (which may be in its raw ore or unrefined bar form) and transport it to refineries.

Recently, there has been a movement toward enhancing local refinement capabilities. For instance, Ghana, the continent’s leading gold producer, opened a refinery in 2024 capable of processing 400 kg of gold per day, primarily sourced from small-scale miners. This development not only adds value locally but also helps combat illicit gold smuggling by providing a formal market.

Rare earth minerals, such as neodymium and dysprosium, follow a different route. These elements are essential for electronics and green energy, but most processing has traditionally occurred outside Africa. However, new mining projects in countries like Tanzania, Malawi, and South Africa are expected to increase Africa’s share of the global rare earth supply to approximately 10% by 2029.

Typically, rare earth ores are exported for refinement due to the limited local processing facilities; however, partnerships are emerging to build this capacity within Africa. For international buyers, understanding the supply chain is crucial. Companies like Afro Minerals Group Ltd play a vital role in linking African mines with global markets. They ensure that minerals are sourced, tested for quality, and shipped in compliance with international standards. By navigating logistics and export regulations, mineral trading companies help transport African resources efficiently while striving for a transparent and equitable supply chain that benefits local communities.