The United States is utilizing agreements for purchasing goods and government-supported funding to rival China in the immediate term in obtaining resources of African copper, cobalt, and other vital minerals, according to diplomats, industry leaders, and analysts before the upcoming Indaba conference.
The focus of Washington is on Zambia, Guinea, and the Democratic Republic of Congo, which is a major supplier of cobalt globally and produced about 3.3 million metric tons of copper in 2024.
Rather than deploying American operators in risky regions, the US is favoring agreements such as offtake deals and other trading structures, like the one with Mercuria and arrangements with the Congolese state-owned miner Gécamines. This strategy aims to direct production into US-aligned supply chains dominated by Chinese refiners.
Offtake involves a country or company securing a portion of a mine’s output in exchange for financial support or other assistance.
Thomas Scurfield, a senior analyst with the nonprofit NRGI, emphasized that US involvement is already reshaping mineral exports from Africa. He added that while the US is backing its intentions with financial investments, it remains to be seen if it can match China in terms of scale and speed.
Both the US and China are anticipated to make new commitments during the Indaba mining conference in Cape Town this week, with the US discussing its minerals strategy with officials.
Gécamines is central to this shift, planning to deliver approximately 100,000 tons of its Tenke Fungurume copper allocation to US purchasers this year following expanded marketing rights secured in a 2023 renegotiation with China’s CMOC.
The US strategy extends beyond copper, with potential impacts on China’s cobalt supply chain due to export restrictions in Congo conflicting with growing US-DRC collaboration.
Pensana, based in London, shifted its rare earth refinery project from Britain to the US, citing stronger incentives and price assurances. This move reflects the US’s financial approach rather than establishing a physical presence.
Chinese firms still hold significant copper and cobalt assets in Congo, but new offtake agreements are positioning Gécamines as a key zinc exporter and primary purchaser of germanium and gallium concentrates.
KoBold Metals, emphasizing governance standards, has refrained from advancing projects mired in disputes in Congo, in contrast to Chinese operators moving swiftly despite contentious issues.
In Guinea, the China-backed Winning Consortium Simandou progressed with infrastructure development at the Simandou mine, prompting Rio Tinto to align with the ongoing work despite ownership disagreements.
