US, Saudi Arabia in talks over massive mining eyeing Africa metals

By Al Mayadeen English
Source: The Wall Street Journal
10 Sep 2023 18:56
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The US and Saudi Arabia are discussing strategic investments in African metal resources, signaling a move to secure a competitive edge in the global metal markets.

Miners working under harsh conditions carry sacks of ore at the Shabara mine near Kolwezi, Democratic Republic of the Congo, on October 12, 2022. (AFP)

The United States and Saudi Arabia plan to purchase large amounts of metals in Africa to aid their "green" energy transitions, The Wall Street Journal said on Sunday.

The newspaper, citing people informed on the matter, said a Saudi State-backed enterprise will invest $15 billion in several African countries, including the Democratic Republic of Congo, Guinea, and Nambia. American companies are then expected to be awarded rights to buy some of the extracted metals, WSJ said.

The US is in fierce competition with China for supplies of cobalt, lithium, and other metals essential for various products. The battery market alone was worth upward of a hundred billion US dollars in 2022 and is projected to continue its steady growth in the future, according to Statista.

In July, Saudi Arabia's mining company Ma'aden and the Saudi Public Investment Fund bought 10% of Brazill's Vale base metal unit, while US investment firm Engine No.1 acquired 3%.

According to WSJ, the PIF contacted officials in Congo in June to discuss a possible investment in cobalt, copper, and tantalum through a $3 billion joint investment with Ma'aden called Manara Minerals, with the latter focused on iron ore, nickel, and lithium.

The US is looking to secure backing from several other state funds in the Gulf; however, talks with Riyadh have progressed the most, according to WSJ.

US looks to ally with Saudis to curb Chinese industries

Washington's recent mobilization efforts are driven by its strategic goal to shift battery supply chains away from China. This move is aimed at safeguarding the US electric car industry's supply chains against growing international competition.

The American newspaper's report comes just one day after the Saudi Press Agency (SPA) revealed that Riyadh and Washington had signed a memorandum of understanding to establish a protocol aimed at creating intercontinental green corridors.

The transit corridor, which would connect Asia and Europe by train through Saudi Arabia, intends to allow the flow of renewable power and clean hydrogen via cables and pipes, according to SPA.

The project is allegedly aimed at helping efforts to create sustainable energy, improve the digital economy through data transfer through fiber optic cables, strengthen commercial commerce, and increase commodities transit by connecting trains and ports.