Congo to export copper to Saudi Arabia, UAE with US support
Though the project strengthens supply chains, it is also structured to generate returns on U.S. government investment, the official added.
SEATTLE (Scrap Monster): Congo’s state-owned miner, Gecamines, will supply 50,000 tons of copper cathode through its joint venture with Mercuria, the U.S. International Development Finance Corp. (DFC) said.
DFC, a government agency, is in discussions to finance the venture, which last month agreed to ship 100,000 tons of copper to the United States.
Strategic move against China
A DFC official, speaking on the condition of anonymity, said the U.S. supports the deal to redirect key minerals away from strategic competitors like China, while ensuring a reliable supply for the U.S. and its allies.
Though the project strengthens supply chains, it is also structured to generate returns on U.S. government investment, the official added.
Chinese firms currently dominate the mining and processing of Congo’s copper and cobalt. The agreement also highlights the Trump administration’s unconventional approach to reducing dependence on China.
Africa is increasingly at the center of global competition for critical minerals, as the United States deepens its footprint on the continent.
Business Insider Africa earlier reported that the Democratic Republic of Congo plans to offer the United States a list of priority mining projects for potential investment by American companies.
The DRC, the world’s second-largest copper producer and home to some of the richest cobalt deposits, has offered the U.S. access to mining and infrastructure projects in exchange for assistance in quelling a rebellion in the country’s east backed by neighboring Rwanda.
Courtesy: www.businessinsider.com