US must boost Africa ties to secure key minerals, report says
The USmust boost commercial ties with African countries to curb reliance on China for supplies of critical minerals, a Washington-based think tank said on Tuesday.
“USeconomic and national security depend on securing a reliable supply of critical minerals, including from Africa,” the United States Institute of Peace (USIP said in a report.
The USis almost 100 percentreliant on “foreign entities of concern”, mainly China, for key critical minerals, it said, and must come up with own sources of supply to avoid being shorthanded and vulnerable to China’s export curbs.
Western mining companies arelagging Chinese rivalsin the race to tap Africa’s abundant mineral resources, key to sectors from electric vehicle manufacturing to defence industries.
Read:UAE raises stakes in competition for Africa
To counter China’s head start in Africa, Washington must roll out “more vigorous commercial diplomacy with a keen eye toward building critical minerals partnership in Africa,” the 76-page report said.
One option for the USwould be to increase commercial diplomacy in countries such as Democratic Republic of Congo, the world’s No. 1 cobalt supplier, and Zambia, Africa’s second-largest copper producer, it said.
The competition for securing minerals in Africa isheating up as cash-richMiddle East firms join the race.
While Western mining companies still see hurdles in investing in countries such as Congo, which lacks vital infrastructure such as roads and adequate electricity, Chinese miners have strengthened their grip in the country and are broadening investment throughout Africa.
The International Development Finance Corporation said in February it could scale up project financing in Africa tohelp reduce the risk of investing in countries, opens new tabincluding Congo that some investors still perceive as high risk.
Unlocking USinvestment in Congo could be helped by reopening its consulate in Lubumbashi that closed in the 1990s after the end of the Cold War, Tuesday’s USIP report said.
The government also needs to prioritise full development of a memorandum of understanding with Congo and Zambia which could help guide USprivate investors across the battery metals supply chain, it said.
Read:Blinken showcases projects for Africa as US plays defence
The UShasstepped in to back the Lobito Corridor, a rail link from the central African copper belt that’s key to export of metals through Angola’s Lobito port.
The USis “simply not on, or even near, par in competing with China” for critical minerals investment and diplomacy in Africa, and needs to take a vigorous approach, USIP said.
Jose Fernandez, the USState Department’s under-secretary for economic growth, energy, and the environment, said last month the USholds regular talkswith Congo state miner Gecamines.
Still, the USgovernment is unlikely to match the resource levels and the mining ecosystem that China wields in winning mining contracts, USIP said, though “concerted USefforts to land USmining investment in Africa can succeed.”