The United States is stepping up efforts to challenge China’s dominance in African critical minerals by using offtake agreements and state backed financing to secure supplies of copper, cobalt and other strategic resources, according to diplomats, executives and analysts.
The push comes ahead of this week’s Mining Indaba conference in Cape Town, where both Washington and Beijing are expected to seek new commitments across the continent’s mineral rich economies.
US engagement is focused on Zambia, Guinea and the Democratic Republic of Congo, with the DRC playing a central role in the global supply chain. The country accounts for more than 70 percent of global cobalt production and produced about 3.3 million metric tons of copper in 2024.
Rather than placing US operators directly into high risk jurisdictions, Washington is relying on offtake agreements and trading structures to secure access to minerals. These arrangements allow US aligned buyers to obtain rights to portions of mine output in exchange for financing or other forms of support.
One such structure includes a deal with commodities trader Mercuria, as well as agreements with Congolese state miner Gécamines, aimed at redirecting mineral output into value chains that align with US strategic interests, despite Chinese dominance in refining.
Offtake agreements are commonly used in the mining sector to guarantee supply, particularly where upfront financing is needed or where geopolitical risk limits direct investment.
“We’re already seeing US engagement reshape mineral flows out of Africa,” said Thomas Scurfield, a senior analyst with nonprofit organisation NRGI.
“The US is putting money behind its rhetoric, but it remains to be seen whether it can compete with China’s scale and speed,” he added.
Both the US and China are expected to intensify diplomatic and commercial outreach during the Indaba event, with Washington sounding out African officials on the formation of a minerals focused bloc.
A key development involves Gécamines, which is preparing to ship about 100,000 tons of its Tenke Fungurume copper allocation to US buyers this year. The move follows a 2023 renegotiation with China’s CMOC that granted the Congolese miner broader marketing rights over its output.
The shift highlights growing competition between Washington and Beijing as both seek to secure long term access to minerals critical to energy transition technologies, electric vehicles and advanced manufacturing.
Faridah Abdulkadiri
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