The global race for critical minerals such as lithium, cobalt, nickel, and rare earths is escalating conflicts in resource-rich nations, particularly in Africa, but also presents a transformative opportunity if managed correctly, according to World Trade Organization Director-General Ngozi Okonjo-Iweala. Speaking at the United Nations Security Council on Wednesday, she described the surging demand as a 'once-in-a-lifetime chance' for countries like the Democratic Republic of Congo, Zambia, and South Africa to harness their mineral wealth and improve living standards for millions. Yet, she cautioned that without proper governance and international cooperation, this demand could exacerbate violence and poverty.

The remarks come amid intensifying competition among major economies—including the United States, China, and the European Union—to secure supplies of minerals essential for modern technologies, from smartphones and electric vehicles to fighter jets and renewable energy systems. Okonjo-Iweala emphasized that critical minerals are increasingly treated as strategic assets rather than mere commodities, driving interstate rivalry. She warned that developing economies risk being trapped at the lowest rung of the value chain, exporting raw materials while higher-value jobs, technologies, and profits flow elsewhere.

UN Secretary-General Antonio Guterres echoed these concerns, noting that armed groups in eastern Congo are profiting from illegal mining and smuggling of minerals like cobalt, which accounts for over 70% of global production. The resulting conflict has devastated civilian populations. In Sudan, the exploitation of natural resources—particularly gold and gum arabic—has fueled a brutal war between government forces and paramilitaries, leading to atrocities and mass displacement. 'The minerals beneath Africa or any developing region's soil should never help to finance the conflicts above it,' Okonjo-Iweala said.

Historical Context of Resource Exploitation

The link between mineral wealth and conflict is not new. For decades, the 'resource curse' has plagued countries rich in oil, diamonds, and metals, where abundance has often correlated with corruption, authoritarianism, and civil war. In Africa, the exploitation of minerals like coltan and diamonds in countries such as Sierra Leone, Angola, and the DRC has funded rebel groups and fueled devastating conflicts. The current scramble for critical minerals risks repeating these patterns unless systemic changes are implemented.

Critical minerals are defined as those essential to economic and national security, with supply chains vulnerable to disruption. The International Energy Agency projects that demand for lithium could increase 40-fold by 2040 under net-zero emissions scenarios, while demand for rare earths used in magnets and electronics could grow by 5-7 times. This shift is driving a geopolitical race reminiscent of the 19th century 'scramble for Africa,' but with modern implications.

Opportunities for Transformation

Despite the risks, Okonjo-Iweala sees a path forward. She proposed three priorities for resource-rich developing countries:

• Demand local processing and refining: Instead of exporting raw ores, countries should insist on value-addition within their borders. For example, processing cobalt in the DRC or lithium in Zimbabwe could create jobs, build technical expertise, and capture more revenue.
• Strengthen the international rule of law: Transparent contracts, anti-corruption measures, and dispute resolution mechanisms are essential to ensure that mineral wealth benefits local populations rather than fueling conflict.
• Leverage collective bargaining power: Resource-rich nations should collaborate to negotiate better terms with multinational corporations and importing countries, reversing the historical pattern of exporting low-value raw materials and importing high-value finished goods.

These recommendations align with broader efforts to reform global supply chains. The WTO has been facilitating discussions on trade in critical minerals, aiming to reduce barriers and promote sustainable development. Okonjo-Iweala stressed that the world cannot achieve energy security, the green transition, or digital transformation without these minerals. Africa alone holds roughly 30% of global critical mineral reserves, and less than half of its deposits have been explored, indicating vast untapped potential.

Regional Specifics

The DRC accounts for over 70% of global cobalt production, a metal crucial for batteries in electric vehicles and electronics. However, much of the mining is artisanal and informal, with human rights abuses and child labor documented in some operations. Zambia and the DRC are also major copper producers, while South Africa holds the world's largest reserves of platinum and manganese—both vital for catalytic converters and steel production. Between 10 and 12 African countries have commercially exploitable lithium reserves, including Zimbabwe, Namibia, and Ghana. Additionally, 15 to 20 African nations have rare earth deposits needed for magnets, lasers, and precision-guided munitions.

Beyond Africa, other regions face similar challenges. Latin American countries like Chile and Bolivia, which hold vast lithium reserves in salt flats, are grappling with environmental concerns and indigenous rights. In Southeast Asia, the Philippines and Indonesia are major nickel producers, but extraction often leads to deforestation and water pollution. Okonjo-Iweala's warnings apply globally: without proper frameworks, the green transition could perpetuate exploitation.

Call for Global Cooperation

The UN Security Council session highlighted the need for international coordination. Several council members called for binding agreements to ensure ethical sourcing and conflict-free supply chains. The WTO, UN, and other bodies are working on guidelines for responsible mining, including the 'Due Diligence Guidance' from the OECD, which helps companies avoid financing conflict through mineral purchases. Okonjo-Iweala urged member states to support the development of local industries in resource-rich countries, such as battery manufacturing in Africa, which could create a more diversified global economy. 'The minerals are a gift, but they must be managed wisely,' she concluded.

Source: MSN News