Madagascar ended a 16-year ban on new mining permits while steelmaker ArcelorMittal extended a minerals deal with Liberia, as competition for Africa’s natural resources intensifies.
The lifting of the moratorium in Madagascar applies to most minerals other than gold. The world’s second-largest island nation, where the military seized power last year, has long relied on its exports of nickel, cobalt, graphite, and ilmenite, critical minerals used to produce items such as electric-vehicle batteries and aerospace alloys. Around 1,650 mining permit applications were pending as of 2023, Reuters reported.
Meanwhile, Luxembourg-headquartered ArcelorMittal negotiated an agreement with Monrovia to retain mining rights until 2050, saying it will pay the government $200 million for the extension and reserved access to railroads. The growing global scramble for critical minerals creates “new economic opportunities” for governments but also adds “political pressure” to renegotiate contracts, increasing regional tensions and security risks, the Bloomsbury Intelligence and Security Institute noted.
