China's Current Gold Rush in Africa

From The Chinese Question: The Gold Rushes and  Global Politics, by Mae Ngai (W. W. Norton, 2021), Kindle pp. 304-305:

The contours of Chinese small-scale gold mining in twenty-first-century Ghana and other gold-rich areas of West and Central Africa bear some uncanny resemblances to Chinese gold-mining and migration practices in the mid-nineteenth century: small companies with partners pooling resources; network-based migrations and brokers that pave the journey from home to foreign goldfields; and uneasy relations with citizens and governments in destination countries. These economic and cultural patterns are remarkable for their persistence and adaptability.

But the Chinese gold rush to Ghana is quite different from the gold rushes of the nineteenth century. Gold is no longer the money-commodity and hence does not generate the same kind of global fever that it did in the past. Nevertheless, gold remains a premier store of value and is highly sought during economic recessions. Thus, Chinese mining entrepreneurs rushed to Ghana between 2008 and 2013 because the world price of gold hit historic highs after the 2008 financial crisis. Gold remains valuable, furthermore, for use in some industrial applications and especially for ornament. China and India are the two largest consumers of gold in the world, nearly all of it for jewelry. China is actually the world’s largest producer of gold (400 tons in 2018), but its declining reserves cannot keep up with domestic demand.

Chinese participation in small-scale gold mining, while not insignificant, is just one aspect of China’s mining interest in Africa. China also engages in industrial gold mining, with investments in South African mines, which are still producing after 150 years on the Witwatersrand but now at nearly two miles below the surface. In addition, copper, cobalt, manganese, bauxite, coltan (used in electronics and mobile phones), and dozens of other minerals and metals are critical elements in Chinese manufacturing, especially in top sectors like electronics, vehicles, and steel production. Africa’s rich mineral reserves and China’s voracious industrial appetite have made China the largest importer of minerals from sub-Saharan Africa.

Still, mining ranks but third in China’s African interests, after infrastructure (roads, railroads, ports) and energy (oil and gas). China’s annual foreign direct investment in Africa is enormous, growing from $75 million in 2003 to $5.4 billion in 2018. Approximately one-half of the capital comes from the central government’s state-owned enterprises and banks. Other Chinese investors and contractors include provincial-level state-owned enterprises and private companies and, at the bottom of the hierarchy, small entrepreneurial ventures like those in artisanal mining.