African mineral resources attract global interest

African countries are being looked at by international traders as potential sources of critical minerals, which are essential for technologies like smartphones and electric vehicles. Traders are interested in regions like Central and Eastern Africa, where minerals such as tantalum, tungsten, and nickel are found.

Traxys explores new supply routes

The international commodity trader Traxys is evaluating new supply routes in Central and Eastern Africa, focusing on minerals like tantalum, tungsten, and nickel. While the company is already active in South Africa and Zimbabwe, it is now looking at other regions to support the global effort to diversify supply chains for critical minerals.

African countries hold significant mineral reserves

According to the US Geological Survey, the Democratic Republic of the Congo produced about half of the world’s tantalum in 2024, and Rwanda is also a major producer of tantalum and tungsten. These figures highlight the importance of African countries in the global supply of these minerals, but they do not guarantee that these countries will become new suppliers for Traxys.

Diversification efforts target China's dominance

Governments around the world are investing heavily in critical minerals to reduce their reliance on China, which currently dominates the processing and refining of many strategic raw materials. Traxys is one of the traders involved in managing the supply of these materials for the US strategic reserve, which is valued at $12 billion.

African producers face challenges beyond exports

African countries export about 10.6% of the world’s critical minerals, but these exports are mostly raw or semi-processed materials. This means that even if new buyers like Traxys enter the market, it may not lead to more local processing or increased economic benefits for the producing countries.

Traxys expands globally with different strategies

Traxys has been expanding its operations globally, opening an office in Tashkent, Uzbekistan, and establishing a presence in Riyadh, Saudi Arabia. The company is also exploring opportunities in South America, particularly in Bolivia and Argentina, and sees the Middle East as a favorable region for processing semi-finished products due to lower energy costs and better infrastructure.

Traceability and due diligence are key

Traxys emphasizes the importance of traceability and due diligence for minerals sourced from regions affected by conflict or considered high risk. This means that the origin of raw materials and the associated controls are important factors in the relationships between producers and traders.