• OPERATIONS
well as for strategic partnerships. As a result, the value of Indonesia’ s nickel exports grew enormously, from USD1-billion in 2015 to USD20-billion in 2022, reinforcing its importance in the global EV battery supply chain. Domestically, expansion of the industry has created more than 150 000 jobs.
We have identified seven critical ingredients to make mineral hubs successful. These are:
• Stable mineral supply, which need not be based on domestic resources. It can be sourced through partnerships and government-to-government agreements.
• Access to downstream markets, which may be through developing domestic demand or forging bilateral relationships or free trade agreements with large markets like the US and EU.
• High processing capacity: large-scale facilities can maximise efficiency and reduce costs, making them more competitive.
• Integrated infrastructure, i. e. well-developed transportation networks.
• Affordable, low-carbon energy supply.
• Access to low-cost capital.
• Government support: streamlined regulation, a hospitable business environment, and investments in education, training and R & D.
It is essential for companies and governments to work together to develop the infrastructure, regulatory frameworks, and workforce necessary to sustain operations. More broadly, such partnerships fuel technological innovation and help to attract the investment needed for long-term growth and global competitiveness.
Countries with ambitions to establish themselves as a force in mineral processing must carefully assess their competitive positioning. They cannot rely solely on their domestic assets and capabilities.
Global mining companies need to be able to engage with multiple hubs in low-cost, geopolitically stable regions. In this way, they can preserve their global reach, ensure steady offtake and minimise the risk of market-access distortions such as those caused by import bans. Mineral hubs present a welcome opportunity for junior miners, given the challenges in raising finance and developing projects that they face. Hubs enable juniors to bring projects online more efficiently, while mitigating risks through stable offtake agreements that enhance their ventures’ viability and sustainability.
As global trade flows become increasingly fragmented, major manufacturers and end-users are having to re-evaluate their security of supply. But they do not need to develop domestic processing hubs. If they can actively engage with mineral hubs, they can secure cost-effective mineral supply. Their governments can support the competitiveness of these manufacturers by strengthening bilateral critical mineral trade relationships and building global, multilateral alliances.
Whether between nations, between corporations or between industries, collaboration will be key to building resilient supply chains, unlocking investment, and ensuring access to the resources necessary for a sustainable future. The top priority today is to take swift, decisive action, as competition is intensifying. •
* To view the report: https:// www. bcg. com / publications / 2025 / mineral-shortage-growing-problem-hubs-offer-solution
28 • African Mining • May 2025 www. africanmining. co. za