{"id":22226,"date":"2022-11-08T08:41:02","date_gmt":"2022-11-08T08:41:02","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/?p=22226"},"modified":"2022-11-08T08:41:02","modified_gmt":"2022-11-08T08:41:02","slug":"us-looks-to-africa-to-diversify-supply-chain-for-critical-minerals","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/us-looks-to-africa-to-diversify-supply-chain-for-critical-minerals","title":{"rendered":"US looks to Africa to diversify supply chain for critical minerals"},"content":{"rendered":"

Africa-Press – Mauritius. <\/strong><\/span><\/a>The US is turning to Africa in its quest to diversify the supply chain for the strategic minerals critical to the green energy revolution.<\/p>\n

Increasingly concerned over their vulnerability to China and Russia, Western powers and their allies banded together this spring to ensure that critical minerals are mined and processed in a way that promotes high environmental, social and governance standards.<\/p>\n

Launched at the Prospectors and Developers Association of Canada convention in Toronto this June, the Minerals Security Partnership brings together the US, Australia, Canada, Finland, France, Germany, Japan, South Korea, Sweden, the UK and the European Commission.<\/p>\n

On 22 September, on the margins of the UN General Assembly, the US gathered these partners together along with mineral-rich countries looking to benefit from developed countries\u2019 funding and know-how in order to step up the processing of rare earths domestically.<\/p>\n

Five African countries made it to the invite list: The Democratic Republic of Congo, Mozambique, Namibia, Tanzania and Zambia. \u201cWe\u2019ve got to diversify our supply chains, and for them it\u2019s a development opportunity,\u201d Jose Fernandez, the under secretary of state for economic growth, energy, and the environment, tells The Africa Report.<\/p>\n

At the same time, he said, the US is determined to avoid a race to the bottom in its competition with China and other rivals. \u201cWe will not support an investment from a consuming country into a producing country, unless they follow the highest standards,\u201d he said.<\/p>\n

\u201cIf we do this right, everyone wins.
\nJoining Fernandez at the event were Secretary of State Antony Blinken and the president and chairwoman of the Export-Import Bank of the United States, Reta Jo Lewis. The bank is playing a key role in the partnership by helping fund supply chain resilience.<\/p>\n

\u201cToo often, the relationship between minerals-producing and minerals-purchasing countries has been extractive and characterised by abusive working conditions,\u201d Blinken said in opening remarks.<\/p>\n

\u201cOften, it has left behind environmental degradation and devastated communities.
\nBlinken said the partnership doesn\u2019t only want to improve mining practices, but also ensure that developing countries start benefiting more fully from the transformation of their raw resources.<\/p>\n

\u201cWe aim to make sure that minerals-rich countries benefit from all stages of the value chain, from extraction to processing to recycling,\u201d Blinken said.<\/p>\n

\u201cThat\u2019s ultimately how we can make sure that each project actually serves your communities and uplifts your citizens.<\/p>\n

\u201d It\u2019s a message that resonates with African countries.<\/p>\n

\u201cWe are not so particular about who helps us,\u201d Zambian Minister of Commerce, Trade and Industry Chipoka Mulenga tells The Africa Report after the meeting.<\/p>\n

\u201cOur focus is about who helps us [and do they] share the vision of my people and our country, because for a very long time, we\u2019ve sent our minerals in their raw form all over the world.<\/p>\n

\u201d Mulenga said the US could be a valued ally as Zambia partners with its neighbour, DRC, to develop an electric battery plant at the border.<\/p>\n

The mineral-rich belt that straddles Zambia and the DRC produces more than 70% of global cobalt, more than 95% is exported in raw form, depriving both countries of crucial revenue.<\/p>\n

Mulenga said he met with Fernandez on 21 September along with his Congolese counterpart. The US appears keen on the project, he said. \u201cThere were very good takeaways from that meeting.<\/p>\n

[Fernandez] said some things that g[a]ve me a lot of insight and opened [our] minds on how we should do things.
\nI think America wouldn\u2019t be a bad partner to do business with.
\nfinancing was definitely mentioned and not just by the US, but by Australia and the European Union as well<\/p>\n

Likewise, Namibia is interested in domestically processing its ample reserves of rare earths such as dysprosium and terbium to create magnets used to power wind turbines. The coastal nation is looking to deploy renewable energy assets in mass to incubate a synthetic fuels industry.<\/p>\n

Participation in the Minerals Security Partnership could improve African countries\u2019 access to capital and arrangements with buyers (off-take markets) and present \u201cinteresting opportunities to collaborate on technology sharing\u201d, said James Mnyupe, economic advisor to President Hage Geingob and one of the ministerial meeting participants. I think now they are taking interest to see how they can partner, but also help us, in terms of leveraging technology in this sector.<\/p>\n

\u201cFor countries like us, that\u2019s very important because deploying blended financing in a manner that reduces the cost of capital for these endeavours is a big part of the process of de-risking the production of the minerals that are needed, so financing was definitely mentioned and not just by the US, but by Australia and the European Union as well,\u201d Mnyupe said.<\/p>\n

For Tanzanian foreign minister Liberata Mulamula, the partnership represents America\u2019s biggest involvement in the African minerals sector since passage of the 2010 Dodd-Frank Act requiring US-listed companies to disclose their use of \u201cconflict minerals,\u201d that is, tin, tungsten, tantalum and gold.<\/p>\n

\u201cI think now they are taking interest to see how they can partner, but also help us, in terms of leveraging technology in this sector,\u201d Mulamula said.<\/p>\n

\u201cThey are saying it\u2019s important to have the link between the mineral production and the energy sector transition, the green economy, so they\u2019re looking at the issue of value addition, recycling, processing, that adheres to the standards, the benchmarks,\u201d she said.<\/p>\n

Zambia\u2019s Mulenga said he\u2019s convinced \u201cbeyond a reasonable doubt\u201d that the US is serious about developing an African minerals processing industry. \u201cWe just want to thank Secretary Blinken for bringing this meeting together,\u201d he said.<\/p>\n

\u201cIt just shows exactly that they are thinking ahead, and seeing where they can tap opportunities and support countries like mine.<\/p>\n

For More News And Analysis About Mauritius<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mauritius. The US is turning to Africa in its quest to diversify the supply chain for the strategic minerals critical to the green energy revolution. Increasingly concerned over their vulnerability to China and Russia, Western powers and their allies banded together this spring to ensure that critical minerals are mined and processed in […]<\/p>\n","protected":false},"author":84,"featured_media":22225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[242,233,245,241],"class_list":["post-22226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa","tag-africa-press","tag-africa-press-mauritius","tag-mauritius"],"yoast_head":"\nUS looks to Africa to diversify supply chain for critical minerals - Mauritius<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mauritius\/all-news\/us-looks-to-africa-to-diversify-supply-chain-for-critical-minerals\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US looks to Africa to diversify supply chain for critical minerals\" \/>\n<meta property=\"og:description\" content=\"Africa-Press – Mauritius. The US is turning to Africa in its quest to diversify the supply chain for the strategic minerals critical to the green energy revolution. 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