The UAE Increases Efforts to Steal African Mineral Wealth
The UAE is increasing its efforts to obtain African mineral resources, engaging in competition with China, Saudi Arabia, and other nations to secure lucrative contracts.
Its latest endeavors took place in Zambia, where the Gulf country reportedly took control of a copper mine on Thursday and is rumored to be involved in a proposed Chinese agreement to acquire another mine.
Copper, cobalt, lithium, and nickel are critical minerals for battery performance, which is essential to supporting the global green transition.
Wealthy Middle Eastern countries, which have historically relied on oil for a large portion of their revenues, are now turning to minerals critical for clean energy, as countries look to capitalize on this transition.
Citing three sources familiar with the matter, Reuters reported that International Resources Holdings Limited (IRH), a unit of International Holdings, Abu Dhabi’s most valuable company, is interested in acquiring Zambia’s Lubambe copper mine, although China’s JCHX has already approved on the acquisition of the Lubambe copper mine in Zambia.
The location is highly desired due to its potential to become one of the largest copper mines in the country. The Zambian government, holding a 20% stake in the company, must authorize the facility’s sale. According to a source speaking to Reuters, the current status of any potential sale remains uncertain.
The International Holding Company, which has a market value of about $238 billion, is managed by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE National Security Advisor and Deputy Ruler of Abu Dhabi.
IRH has informed EMR Capital – the private equity manager that owns 80% of the mining project up for sale – that it is considering bidding for its stake, Reuters sources said. Two of the sources said that UAE interest could complicate the sale to JCHX.
These recent actions follow IRH’s achievement in acquiring another mine in Zambia.
Zambian President Hakainde Hichilema said IRH had acquired a 51% controlling stake in the Mopani copper mines, which was sold that day. The Zambian government retains 49%.
According to its website, the Lubambi mine’s production has dropped below the required level for sustainability. Hichilema announced that the Emirati company would aid in rejuvenating the mine’s operations. IRH plans to infuse fresh capital into the mining company and also alleviate a substantial portion of its debt.
The UAE is the fourth largest investor in Africa, after China, the European Union, and the United States, respectively. Saudi Arabia is racing to catch up and develop its local mining sector, while also investing heavily in Africa to take advantage of its mineral resources.
