‘US must boost Africa ties to secure key minerals’

THE US must boost commercial ties with African countries to curb reliance on China for supplies of critical minerals, a Washington-based think tank said on Tuesday.

“US economic and national security depends on securing a reliable supply of critical minerals, including from Africa,” the United States Institute of Peace said in a report.

The US is almost 100 percent reliant on “foreign entities of concern,” mainly China, for key critical minerals, it said, and must come up with its own sources of supply to avoid being shorthanded and vulnerable to China’s export curbs.

Western mining companies are lagging Chinese rivals in the race to tap Africa’s abundant mineral resources, key to sectors from electric vehicle manufacturing to defence industries.

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 US would 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 is heating up as cash-rich Middle 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 to help reduce the risk of investing in countries including Congo that some investors still perceive as high risk. — CNBC Africa.