Enhancing Value Addition in Mineral-Rich Developing Countries

Enhancing local and regional value addition can contribute to the economic development of mineral–rich developing countries, while reducing supply disruptions and global resilience. Increasingly, global initiatives recognize the need for greater participation of Global South countries in mineral value chains, emphasizing the need to move up the value chain to achieve economic equity and stability. 

However, turning this approach into viable and beneficial value addition projects that foster more inclusive economies requires clear and realistic strategies based on economic feasibility and cost– benefit analysis, robust industrial policy and participatory approaches. 

Latin America faces several challenges in refining, processing, and manufacturing its rich transition minerals resources, as well as socio–environmental conflicts and governance gaps that have disproportionately impacted marginalized groups, including women and indigenous communities. Addressing these challenges requires clear policy priorities, strong socio–environmental protections, and enhanced policy tools and expertise.

This policy brief outlines key strategies to promote equitable value addition, drawing on recent Latin American examples. It provides recommendations for G20 countries to support realistic and beneficial value–addition policies by facilitating technical assistance to strengthen strategic planning capacities in low– and middle–income mineral–producing countries; advocating for deeper community inclusion, strong governance and socio–environmental protection; and committing financing to value addition projects that deliver local benefits. Regional cooperation in Latin America is crucial to foster resilient value chains, while elevating the region’s influence in strategic sectors and global sustainability effort. 

This policy brief was originally published as part of the Think 20 (T20) series ahead of the 2025 G20 Summit. Read it on the T20 website: Enhancing Value Addition in Mineral-Rich Developing Countries.