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The SMM Africa Critical Minerals Conference 2026 (ACM2026) , hosted by Shanghai Metals Market (SMM), wrapped up with great success in Lusaka, Zambia on September 15‑16. Focusing on the development of strategic minerals such as copper, cobalt, lithium, and tin in Africa, local deep-processing transformation, green mine construction and energy infrastructure upgrading, this premium event has brought together 400+ industry representatives from Chinese and African government agencies, top miners, commodity traders, investors, and technical service providers to jointly explore high-quality development paths for Africa's critical minerals industry chain. Huawei presented its mine microgrid solution at this conference. Joseph Yao, President of Mining Micro-Grid Business at Huawei Digital Power , delivered a keynote speech titled "Eco‑Partnerships for Green African Mines: Huawei's Mine Microgrid Practices under the IPP‑PPA Model". Huawei's delegation also held business talks with ZESCO, Zambia's national power utility, covering mine energy supply, new‑energy deployment and collaborative power‑infrastructure build‑out. As the global energy transition continues to advance, the new energy industry is steadily boosting demand for critical minerals such as copper and cobalt. Africa is rich in strategic mineral resources and is accelerating its upgrade from exporting mineral raw materials to a high-value-added industry chain encompassing local smelting and deep processing. Mines, as power-intensive sites, require stable and low-cost green power supply, which has become a core factor constraining the implementation of mining projects and the release of capacity in Africa. Leveraging the IPP-PPA (independent power producer investment + long-term power purchase agreement) cooperation model, distributed new energy microgrids can provide reliable power nearby for open-pit mines and smelter sites, helping mines reduce electricity costs and carbon emissions, and supporting the implementation of Zambia's strategy for local copper ore processing. (Joseph Yao, President of Mining Micro-Grid Business at Huawei Digital Power) Joseph Yao shared an overview of Huawei and its Digital Energy business, introducing Huawei as a leading provider of ICT infrastructure and smart terminals, a technology-driven enterprise with operations across many countries worldwide, focusing on core business segments such as smart PV and grid-forming ESS. He noted that Africa's mining sector is generally plagued by power shortages. High diesel costs erode mine profit margins, unstable power supplies risk production disruptions, while ESG requirements also impose constraints on mineral exports. He proposed a three-step path for the sustainable development of African mining: Firstly, supply green electricity to mines through digital energy infrastructure to reduce carbon emissions; Secondly, electrification transition of mining equipment; Thirdly, reshape production processes through AI platforms and intelligent management systems, optimize equipment scheduling, and improve mine capacity and production efficiency. He also highlighted Huawei's mine microgrid system. Rather than a standalone piece of equipment, it is a complete energy solution integrating photovoltaic‑storage systems, intelligent dispatching, diesel backup power supplies, control systems and management software. It breaks the conventional single‑power‑source model to enable energy self‑sufficiency and efficient energy management at mining sites. Citing the large‑scale microgrid project for Saudi Arabia's Red Sea Global as a case study, he explained that this city‑level microgrid achieved major technical breakthroughs underpinned by Huawei's robust in‑house R&D capabilities and power‑simulation laboratories. Huawei possesses independent R&D capacity for core power‑electronic components such as IGBTs, and delivers one‑stop services covering design, simulation and project delivery. Together with ecosystem partners, it also provides full‑lifecycle engineering consultation and on‑site implementation support. The successful delivery of this project has laid a solid foundation for microgrid deployment in mining scenarios. He specifically addressed the widespread funding pain points confronting African mining projects. Under the IPP‑PPA ecosystem model, domestic and international investors can be brought in to finance mine‑energy projects. Mining companies, as power purchasers, sign long‑term power‑purchase agreements to secure stable mine operations, while investors obtain steady returns, forming a sustainable commercial closed‑loop. In his speech, Joseph cited several African mine microgrid implementation cases. Among them, after the completion of the Kamoa-Kakula mining microgrid project in the DRC, green electricity will replace a large amount of diesel power generation, significantly reducing mine electricity costs and carbon emissions, and delivering a good return on investment. For this Chinese-funded miner's copper mine project in the DRC, microgrid upgrades sharply reduced electricity costs and significantly improved the mine's capacity utilization rate, verifying the practical value of green electricity microgrids in African mine scenarios. He summarized Huawei's three core capabilities: a globalized business platform, end-to-end one-stop microgrid solutions, and a diverse ecosystem partner system that includes investors, EPCs, and design consulting agencies. He added that Huawei is looking forward to establishing partnership with more investors to develop energy projects across Zambia and wider Africa, secure power supplies for critical‑mineral industries including copper and lithium, jointly foster green mines in Africa, and build a low‑carbon and sustainable industrial future. During the conference, the Huawei delegation held a business meeting with representatives from Zambia's national power utility ZESCO. Against the backdrop of accelerating green transformation in African mining and continuously growing power demand in mining areas, the two sides exchanged views on topics of common concern such as power infrastructure construction and new energy support, and expressed their intention to jointly explore potential areas for cooperation. Africa's mineral industry is at a critical window for industry chain upgrading. Huawei, drawing on its technological strengths in new energy and smart power, will partner with IPP investors, local power authorities and mining operators to build an open‑cooperation ecosystem. Leveraging its proven mine microgrid solutions, Huawei aims to deliver green, reliable power supplies for African mining and smelting projects, advance the low‑carbon transition of Africa’s critical minerals industry, and deepen practical China‑Africa cooperation across the mining and energy sectors.

[SMM Analysis] No U.S. refined copper tariff announcement emerged by midday on September 29, but policy risk remains. As the COMEX-LME spread narrowed, near-term arbitrage and the U.S. pull weakened. Yet COMEX stocks have risen from 320,000 to nearly 770,000 short tons, while China’s social inventories fell to 78,300 mt and SMM #1 cathode premiums approached $205/mt (RMB 1,400/mt). Could tariff uncertainty revive the longer-term U.S. pull?

South Africa does not possess the world’s largest rare earth reserves, yet it is arguably the most undervalued African node in the Western supply chain. Its value does not lie in the sheer size of its deposits, but in the synergistic combination of high‑grade monazite, phosphogypsum tailings recycling, magnetic rare earths, and battery‑grade manganese. This unique mix gives South Africa a distinctive positioning in the global rare earth landscape. Policy Shift: From Raw Ore Exports to Value‑Chain Participation In 2025, the South African Cabinet approved the Critical Minerals and Metals Strategy , designating rare earths as a medium‑high critical mineral alongside gold, vanadium, palladium, and rhodium, while platinum, manganese, iron ore, coal, and chromium were classified as high‑criticality minerals. The policy direction is unambiguous: South Africa aims to move beyond simply exporting ores and instead integrate exploration, local processing, R&D, infrastructure, financial support, and regulatory coordination to become an active participant in the critical minerals value chain. Three Core Projects Driving Market Expectations What truly excites the market are three projects: Steenkampskraal, Zandkopsdrift, and Phalaborwa. Steenkampskraal: Pioneer of High‑Grade Monazite Located in the Western Cape, Steenkampskraal is a typical high‑grade monazite deposit with approximately 665,000 tonnes of resources at 14.5% TREO, and associated thorium. Construction of the monazite processing plant began in 2026, with initial concentrate output of around 6,600 t/a, ramping up to 13,400 t/a at full capacity; concentrate TREO content can exceed 50%. The next steps involve producing mixed rare earth carbonate and separated oxides. Its core selling point is “high grade + South African local separation narrative,” but thorium and radioactive waste management will ultimately determine how fast and how far it can go. Zandkopsdrift: A Model of Magnetic Rare Earths and Battery Manganese Synergy Developed by Frontier Rare Earths, Zandkopsdrift is the “magnetic rare earths + battery manganese” project most favored by Western capital. It hosts proved and probable reserves of 789,000 tonnes REO at an average grade of 1.92%, with a mine life exceeding 45 years. Over the first 25 years, it is expected to produce approximately 3,038 t/a of NdPr oxide, plus 114 t/a of Dy and 25 t/a of Tb, alongside 100,000 t/a of battery‑grade manganese sulphate. By‑product manganese revenue can cover about 90% of rare earth production costs. The 2025 Pre‑Feasibility Study delivered an after‑tax NPV10% of ~USD 2 billion and an unleveraged IRR of 28%. Crucially, it has already secured Carester’s solvent extraction technology and a 7‑year offtake for heavy rare earth carbonate from Carester’s Lacq plant in France. Korea’s KOMIR holds an 8.9% stake, South Africa’s Industrial Development Corporation (IDC) has invested USD 20 million in the DFS, and the project has been listed as an extra‑EU strategic project under the EU Critical Raw Materials Act, with first production targeted for 2030. Therefore, it is more of a “South African mining + European refining” template than a project to manufacture magnets locally in South Africa. Phalaborwa: Green Rare Earths from Phosphogypsum Tailings Advanced by London‑listed Rainbow Rare Earths, Phalaborwa takes a completely different approach: instead of opening a new mine, it processes phosphogypsum tailings left by a phosphate plant in Limpopo Province. Resources total approximately 35 million tonnes at 0.44% grade, with annual processing capacity of 2.2 million tonnes of phosphogypsum, yielding around 1,900 t/a of magnetic REO and SEG+ heavy rare earth carbonate containing Sm, Eu, Gd, and Y, including about 213 t/a of yttrium oxide. In 2025, solvent extraction was confirmed as the definitive separation route, involving roughly 75 mixer‑settlers. Construction is planned for 2027, with first production in 2028. It has a lower capital intensity, easier social license, and an ESG narrative around “remediating historical pollution,” making it the South African project closest to generating near‑term cash flow. Supply Outlook: Poised to Become Africa’s Largest by 2034 Aggregating the three projects, Fitch Solutions projects that South Africa could supply approximately 12.4 kt REO/a by 2034, making it the largest producer in Africa and the seventh globally. However, a note of caution is warranted: Africa had no scaled rare earth production between 2021 and 2026, and project “announcement timelines” typically run two to four years ahead of actual cash flow. Electricity, rail, ports, financing, radioactive regulation, and solvent extraction talent could each push schedules back. Industrial Chain Reality: Making Money on Intermediates in the Short Term Therefore, the true positioning of South African rare earths is not to “replace China,” but to serve as a portfolio alternative within the non‑Chinese supply chain: Steenkampskraal supplies high‑grade monazite concentrate and MREC; Zandkopsdrift provides NdPr and Dy/Tb exposure; Phalaborwa offers NdPr plus Y/Sm/Eu/Gd. European, South Korean, and Japanese buyers lock in “non‑Chinese oxides” via offtake agreements, while metals, alloys, and magnets remain predominantly in Europe, the US, Japan, and South Korea. South Africa has yet to build a scaled separation‑to‑metal‑to‑magnet chain domestically; in the short term, it profits from concentrates and intermediate products, with the premium accruing to qualified oxides after separation, not to run‑of‑mine ore. Conclusion South African rare earths are neither the next China nor just another African junior miner. Rather, they represent the African piece of the puzzle that most resembles a “financeable, separable, and ESG‑packagable” asset in the West’s China‑plus‑one strategy. If Zandkopsdrift secures construction financing, Phalaborwa delivers oxides in 2028, and Steenkampskraal resolves its thorium issues, then beyond 2030 the market will say that non‑Chinese rare earths are not just about MP Materials and Lynas — they are also about South Africa.