Tag Archives: africa

Challenges in #US – #Congo Mineral Agreements Amid Conflict

An abstract illustration depicting a mining scene focused on cobalt and copper extraction, featuring trucks and workers amidst piles of mined minerals, with flags of different countries visible and an aerial view in the background.

The U.S. has made progress in its push to prise Congo’s strategic minerals from China’s orbit, but conflict, contested licences and compliance demands are still slowing Washington’s advance into a region its rival dominates, diplomats and ​industry officials said.

Democratic Republic of Congo, which hosts the world’s largest cobalt supply and rich copper and lithium reserves, is central to the U.S. push to cut the West’s reliance ‌on China for rare minerals.

One ​U.S. diplomat said Kinshasa is deliberately slowing new deals to push Washington to increase pressure on M23 before any further steps are taken. Reuters could not ⁠independently verify the claim.

The Congolese government did not immediately respond to requests for comment. On background, a senior government official described the allegations as “speculation”.

“The agreement has its own rhythm: a period for receiving offers, a ​period for negotiation,” the official said. Rwanda, which denies backing M23, did not immediately respond to requests for comment.

The U.S. State Department told Reuters the U.S. remains “deeply concerned” by violence in eastern Congo and is pushing ​regional partners to reinforce the ceasefire, urging Rwanda to end M23 support and withdraw in line with December’s peace deal.

The department said Washington hopes to see swift progress on key deals, including a proposal for Glencore to sell copper and cobalt assets to the U.S.-backed Orion consortium, U.S.-based Virtus Minerals’ bid for Congo-focused Chemaf, and the extension of the Lobito Corridor railway line.

Kinshasa’s inclusion on the shortlist of the Rubaya mine, which supplies about 15% of global coltan and sits under M23/AFC control, signals Congo wants stronger ​U.S. action on M23, said Joshua Walker of NYU’s Congo Research Group.

Investment is unlikely while the group holds territory, he said.

U.S. influence on security has already been seen at some mines. Alphamin Resources, opens new tab restarted its Bisie ​tin mine only after U.S. diplomatic pressure helped ease fighting in territory around the site, though it warns that renewed clashes could threaten access and operations.

Read more at: https://www.reuters.com/world/africa/us-struggling-de-risk-congos-war-zone-minerals-even-after-pact-sources-say-2026-03-02/

A millennial is building #America’s first #Nickel-#Cobalt refinery

America had no nickel-cobalt refineries of its own.

The promise of the largesse doled out by the Inflation Reduction Act (IRA), Joe Biden’s signature bill to catalyse America’s clean-energy transition. Subsidies for electric cars attracted $110bn in investments in green manufacturing and battery-making within a year of the IRA’s passage in 2022. But as firms boosted production it became clear that China’s grip on the world’s mineral mines and refineries could prove perilous for its political foes. If China decides not to export refined metals tomorrow, as it has threatened to do, dozens of brand-new American gigafactories could soon sit idle.

Even with subsidies, mining and refining in America are not for the faint of heart. Regulations can make both activities uncompetitive. But the maths flipped in refiners’ favour in December 2023 when the tax agencies charged with implementing the IRA made it more protectionist. Their new rules clarified that companies selling electric cars made with materials processed by firms with at least 25% Chinese ownership are ineligible for subsidies. For makers of batteries and cars this was bad news—their inputs got pricier overnight.

Read more at: https://www.economist.com/united-states/2024/02/29/a-millennial-is-building-americas-first-nickel-cobalt-refinery

#Congo’s #Gecamines to push for #Copper, #Cobalt trading share

Congo’s state mining group Gecamines said it will push to secure the rights to buy copper and cobalt at mines it has holdings in, as it attempts to build its own stocks and trade the metals.

To do so, Gecamines needs to amend some terms of its joint venture agreements in Democratic Republic of Congo, which is the world’s top supplier of battery-grade cobalt and the third largest copper producer after Peru and Chile.

Read more at: https://www.reuters.com/markets/commodities/congos-gecamines-push-copper-cobalt-trading-share-2023-12-01/