Allen & Overy’s new report Mining in Africa and its role in the global energy transition explores the significant opportunities and challenges for mining companies and their stakeholders in backing African critical minerals projects.
Allen & Overy analyse key drivers for successful and sustainable critical minerals developments in Africa – including the global financing gap to Net Zero, a just and fair energy transition, managing ambitious decarbonisation goals, resources nationalism and the long-term outlook for critical minerals, the impacts of AI and new technology and, importantly, the ESG imperative and associated dispute and litigation risks.
Allen & Overy provide industry-leading insights into the opportunities and challenges for resources companies, investors and stakeholders operating in Africa, and the benefits of implementing effective frameworks for sustainable development for African nations, governments and their people.
Matthew Townsend, partner and co-head of Allen & Overy’s International Environmental, Climate and Regulatory Law Group said:
“To ensure a just and fair energy transition, Africa must develop clean energy infrastructure and utilise its critical minerals to improve living standards, abate power shortages and reduce emissions.
“For companies operating in Africa, the challenge is to refocus their strategies on critical minerals and adress operational aspects of sustainability such as supply chain transparency, and good risk governance and reporting. Businesses should not underestimate the scope and importance of this task.”
Matthew Johnson, partner and co-lead of Allen & Overy’s global mining practice said:
“The African continent holds much of the promise of the world’s transition to a clean energy future.
“Critical mineral supply is already a key focus of business agendas and will continue to be for decades to come. It has already affected the profile of assets being sought for acquisition and targeted for development, together with capital allocation going forward.
“Australia’s resources sector is in a unique position to back strong African projects that will deliver on this global promise. The Western Australian mining industry in particular has good access to capital and, importantly, the talent pool required to bring projects online, operate mines and navigate jurisdictional differences.”
Gerhard Rudolph, partner and co-lead of Allen & Overy’s global mining practice said:
“A pro-active approach to, and keen awareness of, juristictional differences across Africa is crucial for mining companies to minimise the risk of legal challenge on ESG grounds.
“The major implications for mining companies operating in Africa have created an imperative to pivot practices and principles that will ensure the sector’s viability and sustainability into 2050 and beyond.”