Exporting an ore or a fibre in raw form pays quickly, but poorly. Capturing part of the processing locally changes the equation, provided three recurring obstacles are cleared.
- Continuous electricity at a competitive price
- Training centres matched to the processes involved
- Long-term offtake contracts with industrial buyers
Niche strategies win out
The projects that are progressing give up on volume and target specific segments: certified products, short runs for the regional market, or vertical integration with a local brand rather than subcontracting for export.
Recent mining agreements increasingly include local-processing clauses. Whether they are actually enforced remains hard to verify, in the absence of independent monitoring mechanisms.