US and Saudi Arabia Discuss African Metal Deals
The United States and Saudi Arabia are reportedly in discussions to secure vital metals from African sources as part of their energy transition efforts, according to sources cited by the Wall Street Journal.
A Saudi state-backed venture is exploring the acquisition of mining stakes valued at $15 billion in African nations like the Democratic Republic of Congo, Guinea, and Namibia. This arrangement would grant US companies the option to purchase a portion of the production.
This development comes as the US races to compete with China for access to cobalt, lithium, and other metals crucial for electric vehicle batteries, laptops, and smartphones.
In a similar deal in July, Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) acquired a 10% stake in Brazilian Vale’s base metal unit, while US investment firm Engine No. 1 secured a 3% stake.
The Wall Street Journal also noted that in June, PIF initiated discussions with Congo regarding investments in cobalt, copper, and tantalum through their $3 billion joint venture with Ma’aden known as Manara Minerals. Manara Minerals is also focusing on iron ore, nickel, and lithium.
Although the White House is seeking support from other sovereign-wealth funds in the region, talks with Saudi Arabia have made the most progress, as reported by the Journal.
At the time of reporting, neither the Saudi government nor the White House had responded to requests for comment.
SOURCE:mining.com
