Perspective. Written for mining sponsors, trade-finance desks, resource funds and strategic investors. Data current as of September 2025.
Why Skipping African Battery Metals Mining Is a Strategic Mistake
Founder’s Candid View
“A lot of mining funds with USD 200 million or more under management still treat Africa like a no-go zone. I think that’s lazy risk analysis. Many of the scary expropriation stories come from companies that cut side deals—tax holidays, royalty dodges, sweetheart concessions—with a government that later changed. When the state tried to fix those old mistakes, the same companies called it ‘asset seizure.’ That’s not political chaos; that’s the rule of law catching up.
Look at the reality: Chinese and Indian groups have poured billions into copper and cobalt in the DRC and Zambia, building smelters, roads and power infrastructure. They wouldn’t do that if the ground was as risky as some Western memos suggest. Add the Lobito Corridor rail link, EU critical raw materials initiatives and serious reforms by governments like Zambia’s—these are game changers for logistics and investor protection. Our Battery Metals Fund is built for this reality. Fortune favors the bold, and in African mining, the bold are already making money.”
— Kenny Kayembe, Founder, FG Capital Advisors
1. Energy Transition Metals Are Not Optional
Global electrification needs copper, nickel, cobalt and lithium in volumes far beyond today’s production. Africa holds some of the richest undeveloped deposits of these critical minerals. Ignoring this supply base while chasing scarce resources elsewhere is a structural bet against the energy transition itself.
2. Ground Reality vs. Risk Narratives
Expropriation headlines usually leave out key context—hidden concessions, aggressive tax avoidance, or lopsided agreements made with past regimes. When those privileges expire, normal contract rebalancing is portrayed as political upheaval. Meanwhile, producers like Anglo American, Glencore, Ivanhoe Mines and diversified mid-tier operators have mined in Africa for decades with stable tenures.
3. Proof in Capital Flows
Asian Long-Term Capital
Chinese and Indian investors back large-scale projects in the DRC and Zambia, bringing processing plants, hydropower links and port upgrades. These projects are structured with bankable offtakes, confirmed LCs and political risk insurance.
Western Strategic Corridors
The Lobito Corridor, co-financed by the EU, U.S. and African partners, connects Angola’s Atlantic coast with Zambia and the DRC Copperbelt, cutting export times and shipping risk.
4. Policy And Market Shifts
New mining codes in Zambia, Botswana and Angola cut red tape and provide clear royalty frameworks. The EU’s Critical Raw Materials Act and clean-energy supply-chain mandates add strong downstream demand for responsibly sourced African metals.
5. Exploration Economics: Low Entry, High Upside
Many African copper, cobalt, nickel and lithium prospects need less than USD 5 million to secure licenses, drill and produce NI 43-101 or JORC resources. History shows that once resources are defined, listings on TSX or TSXV can yield several multiples of the initial outlay, often before production begins.
6. Takeaways for Mining Funds and Private Investors
- Country risk is frequently overstated relative to structured finance realities.
- Inspection and collateral management standards match global best practice.
- Geology and demand fundamentals for battery metals are unmatched.
- Undeployed capital in many mining funds is missing asymmetric upside.
Discover the Battery Metals Fund
See detailed asset selection, exposure breakdown, and partner portfolio via our Battery Metals Fund. This is where we deploy capital in African battery metals—copper, cobalt, nickel, lithium—with structure and discipline.
View Battery Metals FundDisclaimer. All investments and trade finance facilities are subject to KYC/AML, geological due diligence and regulatory approvals. FG Capital Advisors does not guarantee returns. Third-party costs are separate from our fees.
