Securing Minerals for the Energy Transition 2025

Challenges Effect on financing Potential “unlock” Solution theme Policy measuresPolicy uncertaintyAmbiguity in regulations decreases investor confidence Investment de-riskingInvestment risksDirectly affects project stability and can make it unattractive for investments Energy strategy Energy accessDestabilizes mining operations and reduces project viability Transportation infrastructureTransportation barriersConstrains procurement and logistics, leads to sub-optimal mining operations Innovation promotionInnovation lagLag in adopting latest technologies leads to operational inefficiency Industrial cluster developmentPace of industrializationSlow industrialization and focus on only raw material exports lowers value-add Human capital developmentSkill deficitUnskilled workforce leads to inefficient operations, lowers project attractiveness Demand certaintyDemand volatilityAffects revenue stream predictability and lowers project attractivenessLaying out stable, clear and consistent regulations Innovative financing structures and partnerships for de-risking Strategic investments to enable stable power for mining operations Building new transportation networks and upgrade existing ones Implementing latest technologies for enhancing operational efficiency Developing industries for local value-add and beneficiation Preparing local workforce with market-ready skills to boost operational efficiency Ensuring predictable revenue streams for the mining projectKey challenges and potential “unlocks” identified through multistakeholder consultations FIGURE 3 Consultations and workshop sessions focused on financing challenges and the missed opportunity from limited local beneficiation, as most processing occurs outside the region. Developing downstream capabilities could better integrate SAR into global low-carbon value chains, supporting local decarbonization, energy security and industrial growth. The challenges surfaced by the community have been classified into the following eight themes:1.3 Key challenges Source: Consultations and workshops conducted with stakeholders. Securing Minerals for the Energy Transition: Finance for Southern Africa 11