The delegates attending the annual Investing in African Mining Indaba 2025 event in Cape Town, South Africa have raised concern over the recently announced United States (US) trade tariffs saying they could stall African metals investment, deepening the supply gap.

According to Richard Horrocks-Taylor, Standard Chartered Bank’s global head for metals and mining, the new trade measures have created uncertainty and could delay projects needed to close a widening production gap.

“Uncertainty in trade policy will cause investors to delay capital commitments,” he said.

Gwede Mantashe, South Africa’s Minister of Mineral and Petroleum Resources, commented on the U.S.’s recent decision to restrict foreign aid based on certain African political policies. He emphasized that Africa should not allow industrialized nations to dictate its decisions.

“They want to withhold funding, yet still seek our minerals,” he said. “It’s time for us to withhold minerals. Africa must assert its power and take control of the rising demand.”

He urged African nations to use their minerals and resist global trade practices that exploit their countries.

He pointed out that China’s dominance in chromite undermines local mining companies that supply it, hindering sustainable development.

As a result, South Africa’s income from chromite mining remains low. Meanwhile, China’s advancements in beneficiation have driven down chrome prices, negatively impacting African miners.

“This is what I call a race to the bottom,” he said. “We compete with each other to reach the bottom by failing to capitalize on our resources, and in doing so, we become victims of what we have. We can’t let that continue indefinitely.”

The conference noted that strong long-term trends remain intact, with electrification, renewable energy, and global infrastructure spending set to drive demand for base metals.

For example, copper prices are expected to rise to an average of $9,900 per tonne this year, and aluminum could see a 10% increase over the next three years. However, these positive fundamentals are being overshadowed by the threat of U.S. tariffs, making investors more cautious, the conference heard.

A panel featuring representatives from Geneva-based trading houses Mercuria Energy Trading, Trafigura, and Canaccord Genuity from Vancouver urged policymakers to establish clear and stable trade guidelines.

They highlighted that macroeconomic risks are hindering mining investments in Africa, a trend that could exacerbate supply shortages as demand increases and deprive the continent of crucial opportunities.