How China is tightening its grip on critical minerals with $16 billion mining push in Africa amid US rivalry

China is stepping up its investments in Africa’s critical minerals sector, backing more than $16 billion worth of projects in mineral processing and manufacturing as Beijing seeks to consolidate its influence over resources vital to the global economy.

The push comes amid intensifying competition with the United States for access to critical minerals, including copper, cobalt, iron ore and rare earths.

These resources are essential to advanced manufacturing, clean energy technologies and defence industries, making control over their supply chains an increasingly important geopolitical lever.

A report by Beijing-based consultancy Development Reimagined, cited by the South China Morning Post, found that Chinese investments in Africa are moving beyond mining and extraction to encompass processing, refining and manufacturing.

The report tracked $41.2 billion in Chinese investments across 32 mining, exploration and development projects in 15 African countries up to June 2026. Of these, 19 projects involved mineral value addition — processing or manufacturing resources within Africa — attracting investments worth $16.3 billion.

The scale of the investments highlights Beijing’s ambition to extend its reach across the mineral supply chain, rather than remain limited to securing access to raw materials.

While this could help African countries develop local industries, it also risks reinforcing China’s influence over the infrastructure, technology and manufacturing networks needed to turn those resources into higher-value products.

How China is expanding its influence beyond mining

Africa is a major supplier of minerals such as copper, cobalt and iron ore. Several countries, including the Democratic Republic of Congo (DR Congo), Guinea and Zimbabwe, have introduced export restrictions or bans on certain raw minerals to encourage domestic processing and manufacturing.

Chinese-backed investments in these activities could help African economies retain a larger share of the value generated from their resources, create jobs and build industrial capacity.

However, the figures also expose a gap between investment in extraction and commitments to local value addition.

The report noted that processing and manufacturing projects account for a relatively limited share of overall Chinese investment, partly because some of the largest mining deals have limited or yet-to-be-confirmed commitments to domestic processing.

The $23 billion Simandou iron ore development in Guinea, described as the world’s largest project of its kind, illustrates the scale of China’s involvement in Africa’s mining sector.

But the broader question is whether such large investments will translate into lasting industrial benefits for host countries or primarily strengthen external players’ control over the supply chain.

Why the US is challenging China’s position in Africa

China’s expanding footprint comes as Washington seeks to reduce its dependence on concentrated critical mineral supply chains and secure access to alternative sources.

In December 2025, the US secured an agreement granting American companies preferential access to designated mining assets in DR Congo.

US-linked bidders are also competing for development rights at Kenya’s Mrima Hill, which contains significant deposits of rare earths and niobium.

The growing contest has put African mineral resources at the centre of a wider strategic rivalry.

Both powers are seeking access to materials that underpin industrial competitiveness, technological development and military capabilities.

Xi’s message on Africa’s mineral wealth

Chinese President Xi Jinping has sought to frame Beijing’s expanding engagement as support for African countries’ efforts to develop their own industries.

During a meeting with Botswana’s President Duma Boko last month, Xi offered support for mining development, financing and technology transfers.

“Africa’s resources belong to Africa,” Xi said, warning that they should not be used for “geopolitical rivalry”.

The remarks appeared to push back against Washington’s efforts to expand its access to African mineral assets.

The intensifying competition could give African governments greater leverage to negotiate better mining agreements, attract investment and secure technology transfers.

China’s $16.3 billion push may be presented as an opportunity for African industrialisation.

Yet, as Beijing expands its presence across more stages of the critical minerals supply chain, the central question is whether Africa will gain greater control over its mineral wealth or simply become more deeply embedded in a supply chain shaped by Chinese interests.