Africa Must Know True Value of Its Minerals Before Negotiating with Investors – Liberia’s Vice Prez

Liberia’s Vice President, Jeremiah Kpan Koung, has urged African countries to determine the true value of their mineral resources before negotiating investment agreements, arguing that proper valuation is essential to securing fair returns from the continent’s natural wealth.

Koung’s remarks highlight concerns about the terms under which African governments grant mining concessions to foreign investors and whether such agreements adequately protect national economic interests.

Africa is endowed with substantial deposits of gold, diamonds, bauxite, iron ore, copper, cobalt and lithium. However, many resource-rich countries continue to face challenges in translating their mineral wealth into sustainable economic growth, industrial development and improved living standards.

A lack of reliable geological data, technical expertise and negotiating capacity can put governments at a disadvantage when dealing with multinational mining companies. Without a clear understanding of the quantity, quality and commercial potential of mineral deposits, authorities may struggle to determine whether proposed taxes, royalties and other contractual terms reflect the resources’ true worth.

Koung’s position underscores the importance of investing in geological surveys, independent mineral assessments and training specialists in mining economics, law and contract negotiation.

African governments can also strengthen their bargaining power through transparent bidding processes, independent legal advice and mining agreements that clearly define revenue obligations, environmental protections, local employment and community benefits.

Beyond securing better financial terms, accurate mineral valuation can help governments plan for the long-term management of finite resources and explore opportunities for local processing and manufacturing.

However, securing fair returns requires more than establishing a mineral deposit’s value. Governments must also consider extraction costs, infrastructure needs, fluctuating global commodity prices and environmental risks.

Koung’s call adds to broader discussions about economic sovereignty and responsible resource governance across Africa. His message highlights the need for African countries to negotiate mining agreements from an informed position, ensuring that mineral extraction delivers meaningful and lasting benefits to their citizens.

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