Who Exploits Industrial Metals in Sub-Saharan Africa?

The majority shareholder in Kumba is Anglo-American Ltd., a London-based mining conglomerate, with 69.7 percent of ownership. Kumba is also owned by the South African Industrial Development Corp. and minority shareholders.

Assmang is the second-largest iron ore-extracting company in South Africa, mining a total of 11.5 megatons in 2011. Assmang is owned by a diverse group including Oresteel Investments Ltd., the Bokamoso Mining Trust, the Fricker Road and Assore Employee Trusts and minority shareholders. The companies and trusts behind Assmang are based in South Africa.

South Africa is the continent’s largest economy and the level of ownership by local companies is far greater there than in most other sub-Saharan countries. The only countries that have a greater local stake in their mining industries are those with laws mandating that businesses are primarily owned by locals, such as Nigeria, discussed in part one of this series.

Zambia

Since the country’s independence, Zambia has relied heavily on copper production to stay afloat. Estimates put production of the metal at 40 percent of the Zambian gross domestic product at independence. Production slowed down in the years following independence due to waning demand and rampant mismanagement. In recent years demand has picked up due to industrial growth and a seemingly unquenchable thirst for expansion in China. This is good news for Zambia, which already ranks as the sixth-largest producer of copper in the world.

Ownership of mining companies in Zambia dates back to privatization in 2000. Prior to privatization the majority holder in copper mines throughout the country was Zambia Consolidated Copper Mines Ltd. A large percentage of mining interests were sold to private corporations, but the government held onto a portion through an investment holdings company, the Zambia Consolidated Copper Mines Investments Holdings Plc (ZCCM-IH).

The centerpiece of Zambian mining is the Mufulira mine. Mufulira is owned by a joint venture, Carlisa investments, which in turn owns Mopani Copper Mines Plc., itself a Zambia-based joint venture between Glencore International AG, First Quantum Minerals Ltd and  Zambia Consolidated Copper Mines Investments Holdings.

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