Europe’s efforts to secure supplies of critical minerals are increasingly linked to mining and processing projects in Africa and the Middle East, but much of the early-stage capital is coming from Japan, the United States, China, Gulf investors and regional development banks. European companies remain involved as operators, technology providers and potential customers, but foreign institutions are often taking the initial financial risk needed to advance strategically important projects.
Japan Backs Namibia Rare Earths
In Namibia, Namibia Critical Metals, JOGMEC and Toyota Tsusho have completed a C$23 million earn-in for the Lofdal heavy rare-earth project, giving the Japanese partners a 50% participating interest. JOGMEC has also committed up to C$47.7 million for feasibility studies, engineering, testing and pre-development work. Lofdal contains dysprosium, terbium and yttrium, minerals used in permanent magnets for electric vehicles, wind turbines, defence equipment and industrial machinery.
US Funding for Madagascar Processing
In Madagascar, the US International Development Finance Corporation has committed up to US$4.84 million to advance pilot processing, metallurgical testing and environmental work at the Ampasindava rare-earth project. The wider development could require around US$150 million and potentially produce about 4,000 tonnes of rare-earth oxides annually, including 1,700 tonnes of magnet-related material. Production is targeted from mid-2028, with Solvay among potential refining and commercial partners.
Development Banks Support African Industry
In Morocco, the African Development Bank approved a US$110 million loan for Gotion Power Morocco’s lithium-iron-phosphate battery project, with up to US$162.6 million potentially available from other development partners. The first phase is planned at around 10 GWh of annual capacity, with a long-term target of 100 GWh and approximately 70% local industrial integration.
In Senegal, French mining group Eramet is rebuilding the wet concentration plant at its Grande Côte operation following a fire. Interim dry-mining operations have restored around 30% of nameplate output, while the rebuilt facility is expected to restart near the end of 2026 and return to full capacity in Q1 2027.
Gold Projects Require Major Capital
In Côte d’Ivoire, Endeavour Mining is progressing toward a final investment decision on the Assafou gold project, which requires around US$1.061 billion in upfront capital. The planned processing operation would handle 5 million tonnes per year and produce about 320,000 ounces of gold annually during its first eight years, with a 16-year mine life. In Guinea, Predictive Discovery is assessing on-site refining for its Bankan gold project after new regulations introduced in July require exported gold to be refined domestically to at least 95.5% purity. Bankan’s development estimate stands at around US$463 million.
Middle East Expands Mineral Processing
Egypt is considering a potential US$930 million integrated phosphate project in the New Valley Governorate. Long-term targets include mining up to 20 million tonnes of ore annually, producing 4 million tonnes of beneficiated concentrate, around 500,000 tonnes of phosphoric acid and roughly 500,000 tonnes of fertilizer and other downstream products.
In Jordan, Arab Potash Company and Jordan Phosphate Mines Company are developing plans for an integrated industrial complex linking potash and phosphate with specialty fertilizers and chemicals. A proposed US$1 billion JIFCO expansion could consume more than 2 million tonnes of additional Jordanian phosphate annually. Oman is also attracting foreign capital. Solidcore Resources can earn up to 60% in the Khabiyat copper-gold project through an initial investment of about US$8 million, with another US$20 million potentially available for exploration and resource definition.
Processing and Technology Become Strategic
In the Democratic Republic of Congo, Ivanhoe Mines’ Kamoa-Kakula is expanding its integrated infrastructure. Its on-site smelter operated at around 60% capacity in Q2, producing 112,307 tonnes of sulphuric acid. The operation is also developing a hybrid power system combining 433 MWp of solar capacity with 1,107 MWh of battery storage, designed to provide about 60 MW of continuous baseload power.
Meanwhile, Zijin is taking a different approach after ending its proposed C$5.5 billion acquisition of Allied Gold. Instead, Zijin plans to acquire a 9.2% stake for about US$295 million, supporting projects in Ethiopia, Mali and Côte d’Ivoire as well as exploration.
Europe Risks Losing Influence
The growing number of projects highlights a broader shift in mineral supply chains. African and Middle Eastern governments are increasingly seeking local processing and higher-value industrial activity, while foreign investors are providing the capital needed to build those capabilities. For Europe, the challenge is not simply securing future supplies. Early financing can also determine processing technology, commercial partnerships, offtake agreements and long-term influence over supply chains. European companies remain active across the region, but Japan, the US, China, Gulf investors and development institutions are increasingly helping shape the projects that could supply European industry in the future.
