Africa is estimated to hold about 30% of the world's critical mineral reserves. While discussions often focus on metals like graphite, lithium, or rare earths, the continent's resources are broader, including other strategic minerals such as niobium.

Kula Gold, an Australia-based mining company, announced in early July it secured an exploration permit from the Malawi Mining and Minerals Regulatory Authority (MMRA) for its Wozi Niobium project. This approval allows Kula Gold to join other companies active in this strategic metal in East Africa, a region positioned to help diversify global supply.

Currently, Brazil largely dominates global niobium production. According to the U.S. Geological Survey, Brazil accounted for about 90% of the supply in 2023, producing 75,000 tonnes. While Africa’s output remains modest at 730 tonnes, primarily from the Democratic Republic of Congo and Rwanda, several East African projects could boost this supply in coming years.

Though Wozi Niobium is still in its exploration phase, the region is home to Malawi's Kanyika deposit. This project, developed by Australian company Globe Metals & Mining, is set to become Africa’s first industrial-scale niobium mine. It has the capacity to produce 3,267 tonnes of niobium pentoxide annually over a 27-year lifespan.

In neighboring Tanzania, the Panda Hill project, led by Cradle Resources and Tremont Investments, is also part of this trend. A 2016 feasibility study indicated the asset could deliver an average of 5,400 tonnes of niobium pentoxide annually for 30 years.

Beyond these relatively advanced projects, a broader movement is emerging around niobium in the region, with additional exploration projects on the horizon. Besides Kula Gold’s Wozi, a consortium of RareX and Iluka Resources has applied for a permit on the Mrima Hill project in Kenya, which also targets niobium. In Malawi, DY6 is leading the Machinga project, a site that has already revealed several rare earth targets, along with niobium.

The development of niobium projects in East Africa comes as the market's concentration around Brazilian supply sparks debate. A March 2024 study by the Center for Strategic and International Studies (CSIS) raised alarms on this issue. "Diversifying niobium sources is a critical strategic concern. The current overreliance on a limited number of suppliers presents a significant vulnerability in the supply chain," the CSIS explained. These structural constraints could be mitigated with East Africa’s help, provided the announced projects materialize. However, this remains uncertain for some initiatives in the region.

For instance, Kanyika’s construction phase, initially slated for 2024, has been postponed by a year in Malawi due to delays in finalizing key steps such as financing. This delay is expected to continue, as Globe Metals & Mining indicated that completing the bankable feasibility study will take more time. A similar situation exists in Tanzania, where the Panda Hill project has been stalled for several years. Cradle is still negotiating with local authorities to finalize the terms of the framework agreement and secure a special mining license. In an update published this month, the company acknowledged that the timeline for this formalization remains uncertain.

The reality differs for a project like Wozi, which still requires exploration to determine the presence of potential deposits. Kula Gold plans to launch a field program on the site soon, ahead of a first drilling campaign by late 2025.

East African niobium projects also emerge amid an increasingly diversified demand for this strategic metal. While steelmaking remains its primary market, niobium is finding more applications in electronics and aerospace due to its corrosion and heat resistance. It is attracting growing interest in the electric vehicle industry as a material capable of improving battery stability and durability. According to market research firm Dataintelo, these developments should support the growth of the global niobium market, with an 8.7% compound annual growth rate through 2032. This would bring its valuation to $4.8 billion by that time, up from $2.3 billion in 2023.

Aurel Sèdjro Houenou