New York, 11 September, 2023 (GNP): In a bid to secure crucial metals for their energy transitions, the United States and Saudi Arabia are engaged in discussions regarding investments in African mining assets.
Sources with knowledge of the talks have revealed that a state-backed Saudi initiative is contemplating purchasing stakes in mining assets valued at $15 billion across African nations such as the Democratic Republic of Congo, Guinea, and Namibia.
This strategic move would grant the U.S. based companies the rights to procure a portion of the production from these assets.
The race to acquire essential metals like cobalt, and lithium has intensified, as they are vital for electric car batteries, laptops, and smartphones.
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This initiative mirrors a similar arrangement in July when 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 3%.
In June, PIF initiated discussions with Congo to explore investments in cobalt, copper, tantalum, and more through their $3 billion joint venture, Manara Minerals, established with Ma’aden, which also has its sights set on iron ore, nickel, and lithium.
While the White House seeks support from other sovereign-wealth funds in the region, talks with Saudi Arabia have made significant progress, according to the Journal. Neither the Saudi government nor The White House has issued an immediate response for comment.
