According to the Sydney Morning Herald, Globe Metals and Mining has discovered significant rare earths deposits at its exploration site Mount Muambe in Mozambique. This positive exploration result will likely further strengthen China’s quasi-monopoly position when it comes to rare earths, as the Chinese state-owned East China Minerals Exploration and Development Bureau only two months ago became the majority shareholder of the African-focused resource company.
It also illustrates the geopolitical nature of the global race for resources – a fact well-understood by China. Africa, which has vast, but largely unexplored mineral deposits, has been the target of increased Chinese investment in an effort to gain access to these mineral riches for more than a decade. The continent may well become the next battle ground in the global resource wars, as other emerging powers, including India, are looking to strategically position themselves here.