Africa (commonwealth) _The US and Saudi Arabia are in talks to secure metals in Africa needed to aid them with their energy transitions, according to the Wall Street Journal, citing persons familiar with the talks.
According to the article, a state-backed Saudi enterprise would buy holdings in mining assets worth $15 billion in African countries such as the Democratic Republic of the Congo, Guinea, and Namibia, allowing US corporations to buy some of the produce.
The United States is racing to catch up with China in terms of cobalt, lithium, and other metals used in electric car batteries, laptop computers, and cellphones. In a similar deal in July, Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) bought 10% of Brazilian Vale’s base metal segment, while Engine No. 1 bought 3%.
According to the journal, the PIF approached Congo in June about investing in cobalt, copper, and tantalum in the country through Manara Minerals, a $3 billion joint venture with Ma’aden. Manara’s other interests include iron ore, nickel, and lithium.
The White House is seeking financial support from other sovereign wealth funds in the area, but conversations with Saudi Arabia have advanced the most, according to the Journal. The Saudi authorities and the White House did not react quickly to requests for comment.
Africa has a multitude of very valuable and extractable natural resources buried beneath the surface, making its mining sector one of the most important in the world. Africa is a major producer of several critical mineral commodities, having vast reserves of metals and minerals such as gold, diamond, cobalt, bauxite, iron ore, coal, and copper. African mining countries include the Democratic Republic of the Congo (DRC), South Africa, Namibia, and Zimbabwe.
It is believed that Africa contains around 30% of known global mineral reserves, and these valuable commodities have been harvested, and frequently exploited, for ages. The region remains extremely appealing for foreign investment, particularly from China, whose outward FDI stock in Africa’s mining industry is expected to exceed 8.9 billion US dollars in 2020. China, as a major electronics manufacturer, has a strong demand for raw materials.
Most electrical items we use today rely on a variety of minerals, many of which may be found in Africa, such as tungsten, gold, tin, and cobalt. Cobalt is largely used in the manufacture of lithium batteries, and it is frequently a byproduct of the copper and nickel mining industries. DR Congo’s copper belt contains over half of the world’s cobalt reserves, and the country’s cobalt production is expected to total 120,000 metric tons in 2021.
Tantalum is another material that is employed in electronic devices. Tantalum capacitors are found in devices such as mobile phones and laptop computers, as well as automotive electronics. DR Congo is the world’s greatest producer of tantalum, yet it is a contentious commodity. While these commodities are useful in everyday life, they have frequently been used to support brutal conflicts, earning them the moniker “conflict minerals” in the same way that “blood diamonds” have.
Gold and diamonds are two of the most lucrative minerals mined in Africa. Africa has a number of key diamond producing countries, including South Africa and Botswana. The top producer, however, is DR Congo, whose diamond mine production is expected to surpass 12.7 million carats in 2020.
As a result, DR Congo is now one of the world’s top five diamond producers. Africa also hosts the majority of the world’s platinum reserves, with South Africa having 63,000 metric tons of platinum reserves. South Africa’s expected platinum production in 2021 is 130 metric tons.
