What's Happening?
The European Commission has closed the second application round for strategic project status under the Critical Raw Materials Act, with decisions expected in Q2 2026. This follows the approval of several mineral projects in Africa, including rare earths
and cobalt developments. The Zandkopsdrift project in South Africa, developed by Frontier Rare Earths, is a key focus, expected to produce significant quantities of rare earth oxides and manganese sulphate by 2030. The project is primarily a processing operation, with substantial investment in chemical processing facilities.
Why It's Important?
These projects are part of Europe's strategy to secure critical minerals and reduce dependency on China. By investing in African projects, the EU aims to establish value-added supply chains and support industrial development in the region. The strategic designation of these projects is intended to fast-track permitting and facilitate partnerships with European industrial manufacturers, potentially leading to commercial agreements and financing opportunities.
Beyond the Headlines
The EU's involvement in African mineral projects highlights the geopolitical significance of securing critical raw materials. While the strategic designation offers advantages, such as expedited permitting, the success of these projects depends on securing financing and establishing market demand. The EU's approach contrasts with other countries that have moved more swiftly to address supply chain vulnerabilities, emphasizing the need for systemic solutions and capital investment to achieve long-term goals.
