Cautious optimism in Africa’s mining sectorhttps://www.newtimes.co.rw/business/cautious-optimism-africas-mining-sector
"Barclays believes that Chinese demand for iron ore, copper and bauxite is set to increase on the back of increased infrastructural investment to combat slower growth. China’s National Development and Reform Commission (NDRC) approved 860bn yuan ($127bn) worth of rail projects in the last month of 2018. However, the health of the global economy and demand for mining commodities will depend in large part on whether the US-China trade dispute is settled or intensifies.
Coal and iron ore prices are likely to continue the fluctuating pattern of the past year, but there is reason for optimism for other mining commodities. Demand for the Democratic Republic of Congo’s cobalt should increase as electric vehicle production begins to take off, adding to existing demand from the telecoms sector. The Katanga provinces in the far southeast of DR Congo, which account for 62% of the world’s cobalt production, have been relatively sheltered from events in the rest of the country over many years and so political uncertainty should not impact output.
Fitch Solutions forecasts that global copper demand will increase from 23.6m tonnes in 2018 to 29.8m tonnes in 2027, an average annual rise of 2.6 per cent. This is well above expected production increases, so prices for Zambian and Congolese copper are likely to rise, increasing the pressure for new mine development."