The US is in talks to provide more than $1 billion for two critical minerals and railway projects in central Africa as it seeks to secure supplies deemed crucial for national security.
The US International Development Finance Corp. plans to support a new copper and cobalt venture between the Democratic Republic of Congo’s Gecamines SA and Mercuria Energy Trading, as well as a rail project linking Congo and other central and southern African nations to Angola’s coast.
“These projects will help to secure vital supply chains, expand private sector opportunity, and strengthen America’s global competitiveness, while supporting peace, prosperity, and dignity in central Africa,” DFC chief executive officer Ben Black said in a statement.
President Donald Trump has made securing minerals that are crucial for military and high-tech applications one of his priorities, with several deals with African countries emerging. Chinese companies dominate the mining and processing of many of these metals, and Washington is looking to loosen the Asian powerhouse’s stranglehold over the trade.
The DFC announcement follows the signature on Thursday of a strategic infrastructure and minerals partnership between Congo and the US.
Congo is rich in multiple critical minerals including copper, cobalt, lithium, tantalum and manganese.
Switzerland’s Mercuria and Gecamines announced their copper and cobalt trading tie-up on Friday.
“The partnership would grant US end users a right of first refusal, providing US industries with access to critical minerals essential for economic growth and competitiveness,” Gecamines said about the possible DFC investment in an emailed statement.
Under the US-Congo strategic partnership, Congo has committed to shipping more of its minerals west toward the Atlantic Ocean over Angola’s Lobito railway corridor. Currently most of Congo’s exports move south or east along the road or railway.
The DFC is proposing up to $1 billion in financing to Portugal’s Mota Engil SGPS for “the rehabilitation, operation, and transfer of the Dilolo–Sakania railway line” in Congo, which would connect to the Lobito corridor.