Xuan-Ce Wang’s Post

Africa is letting its critical and strategic minerals escape without being able to add value to them. China, through the Belt and Road Initiative, has built the critical infrastructure ( ports and railways) necessary for the transportation of many of them. Its projects on the east coast reach Tanzania, Kenya, Uganda, Rwanda, Burundi, Ethiopia, Djibouti, South Sudan...China seems to be the natural alternative to the IMF or the WB for many countries. But given the growing relevance of critical minerals, Washington rolls up its sleeves and announces the agreement to develop one of the largest railway projects on the west African coast. Can the Chinese projects of the Belt and Road Initiative, the American Build Back Better or the European Global Gateway coexist in Africa? Will African countries be abale to ensure that part of the value added to minerals and the jobs to transform them are retained in their soil? https://lnkd.in/d3X925Tq

As global competition for critical minerals intensifies, the US-backed Lobito Corridor is poised to revolutionize access to African copper resources. This ambitious project, linking Angola to the mineral-rich Democratic Republic of Congo (DRC), challenges China’s dominance in critical mineral supply chains. With an estimated investment of $10 billion, the Lobito Corridor encompasses more than just railway construction....https://lnkd.in/d24GJ4p7

AFRICA'S CURRENT UNDERGROUND RESOURCES 🎯 🗺️ On June 10, 2024, about one mistake after the South Korea-Africa 2024 Summit, an updated underground resources map showing Africa's mineral and mineral abundance was published. ✔️ Many energy and natural resource cooperation agreements were signed at this summit. ✔️ African states are satisfied with these agreements. Around 50 important agreements were signed. ✅ Most underground minerals are exported with zero processing on the continent. South Korea's biggest difference is that it has committed to export these underground resources by processing them on the continent. #Sarenolia #Colonialism #ConstructionPolicies #GlobalConstructionPolicies #AfricanUnion #AfricanCommunity #VedatÖzkan #SouthKorea #Energy #Investments 

I give some brief thoughts in this article on what happens to the upgraded Lobito Railway if copper output doesn't rise as expected. Will there be enough demand? This is the problem that hampered the previous Lobito railway built in the 1900s: it was surplus to requirements and couldn't compete with other export routes.

THE LOBITO CORRIDOR: WASHINGTON’S ANSWER TO BELT AND ROAD IN AFRICA Launched a decade ago, China’s Road and Belt Initiative is a colossal infrastructure and economic development project spanning across Asia, Europe, and Africa. To date, 52 African governments signed Memorandums of Understanding (MoU) with China regarding the BRI and the initiative has translated into billions of dollars invested in the construction of roads, ports, railways, and other critical infrastructure. These projects are not only enhancing connectivity within the continent but also providing China with unprecedented access to Africa’s vast mineral wealth, particularly in countries like Zambia and the Democratic Republic of Congo (more than 80% of copper mines in the DRC for instance are already Chinese-owned), which boast abundant reserves of copper and other essential minerals... Readmore on the link below https://lnkd.in/dz3d4Hx8

🌍💡 Empowering Africa: Harnessing Positive Energy for Global Mineral Strategy💡🌍 The United States is embarking on a transformative journey, tapping into Africa's abundant mineral resources to foster a resilient and sustainable energy future. Deputy Treasury Secretary Wally Adeyemo's recent visit to a platinum mine in Marikana, South Africa, owned by Sibanye-Stillwater, underscores the positive momentum driving this strategic shift. 🔑 Key Insights: By diversifying its critical mineral supply chains, the U.S. is enhancing global stability and fostering mutually beneficial partnerships with African nations. Africa's mineral wealth presents a platform for collaboration and innovation, driving economic growth and technological advancement. Addressing infrastructure gaps in Africa not only unlocks its mineral potential but also promotes inclusive development and prosperity across the continent. 🚀 Positive Perspective: "The United States' engagement with Africa signals a new era of opportunity and collaboration. By leveraging Africa's rich mineral reserves, we can build a brighter future for generations to come, grounded in sustainability and shared prosperity." - Denise Cortês-Keyser 🚀🌍👌🏽 💭 Engagement Prompt: How can we harness the power of partnerships to accelerate Africa's role in shaping the global energy landscape? Join the conversation! #EnergyPartnerships #innovation #Sustainability #africarising #GlobalProsperity #energyleadership #StrategicPartnerships #GlobalInfluence #industryinsights #ExecutiveNetwork #businesscollaboration #innovationhub #IndustryThoughtLeader #sustainabilitygoals #africamining #energyinnovation #ExecutiveConnections #businessdevelopment #leadershipimpact #globalpartnerships #usa #africa #mozambique #southafrica #afcfta #follow #followme #followforfollow #likeandshare #connect Source: Reuters

The $2.3 billion Lobito corridor project is the most ambitious attempt yet from the US into developing African infrastructure. It includes the EU too. The prize? The vast copper and cobalt deposits in Zambia and Democratic Republic of Congo that are crucial for the world's transition away from burning fossil fuels. We travelled to a Bill Gates-backed, AI-fuelled copper project in Zambia, and across the railway that links Congo to Angola's Lobito port, interviewing more than two dozen people for this story. There is a massive amount of interest in the central African copper belt. Trafigura says Congo's metals and minerals exports will grow by 1.2 million tons by the end of next year to nearly 5 million tons. That's a 32% surge compared to 2023's volumes, underscoring the need for a new route to market. Zambia has grand plans, too. China just proposed a more-than $1 billion plan to revitalise the competing Tazara railway that runs from the copper belt in the opposite direction. Will there be enough demand for both projects? https://lnkd.in/dFQSSkcQ EDIT: I forgot to include the most important part! This was a real combined effort with Willam Clowes, Taonga Mitimingi, Candido Mendes, Michael J. Kavanagh, and Henrique Almeida. Visuals by the incredible Zinyange Auntony.

The Lobito Corridor in central Africa is an integral part of the West’s bid to build resilient global value chains pertaining to raw critical minerals. It is also a project that aims to counter China’s presence in the region. In my latest for the Observer Research Foundation, I analyse the Lobito Corridor’s proposed investments and weigh them against already existing China-built infrastructure in the region.

U.S. GOVERNMENT'S DFC TO INVEST $50 MILLION IN SOUTH AFRICA RARE EARTHS MINE ⛏ The #UnitedStates government, through the U.S. International Development Finance Corporation ("DFC"), is backing a #SouthAfrican #rareearth mine (TechMet Ltd) with a $50 million #investment. #Phalaborwa is the #mine and is poised to become the world's largest low-cost producer of rare earth oxides. The mine's advantage is that it has readily accessible above-ground phosphogypsum piles. The deposits contain rich concentrations of minerals essential for building electric vehicles, wind turbines, and other clean energy technologies including: ✔ #neodymium, ✔ #praseodymium, ✔ #dysprosium, and ✔ #terbium. While not directly connected to the #LobitoCorridor, the Phalaborwa project and the Lobito Corridor represent different pieces of a larger U.S. strategic puzzle in #Africa, aiming at resource security, economic development, and fostering stronger partnerships on the continent. Success here means a higher likelihood of future mining investments by the DFC. Read: https://lnkd.in/gV9KShCa

The clean energy transition can significantly impact economies by driving capital reallocation towards low-carbon technologies, influencing job creation in new sectors like clean energy and critical minerals processing, and potentially causing inflationary pressures globally. It requires balancing environmental goals with economic realities, considering costs, risks, and equity in the transition process.