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Thursday, Jun 26, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
United States reaches out to Africa to build critical mineral bridge
United States reaches out to Africa to build critical mineral bridge
An infographic showing all the critical minerals to be found in Africa. Image via Dall-e.

Mining

United States reaches out to Africa to build critical mineral bridge

The government is focused on creating the right conditions so private investment can move forward quickly

The US International Development Finance Corp (DFC) finalized an over USD$500 million financing for a railway project that will bring critical minerals from central Africa’s copper belt to an Atlantic port in Angola.

Announced on Monday, the DFC has engaged in active negotiations with stakeholders over the funding. Investors include the Angolan government and Trafigura Group.

The DFC began reviewing project financing in 2023. Coleman did not explain the delay but confirmed it is not tied to any expected changes from the Trump administration.

Operations at the DFC remain steady. According to Coleman, the agency continues to focus on critical minerals infrastructure, digital systems, transportation, and energy—particularly across Africa.

The DFC has already issued a $3.4 million technical assistance grant for Pensana Plc’s rare earths project in Angola. It is also in active discussions to fund Carrinho Group’s agricultural manufacturing plant through a senior secured-debt facility.

Angola’s Minister of State for Economic Coordination, Jose de Lima Massano, emphasized that the funding does not involve state loans. He said the government is focused on creating the right conditions so private investment can move forward quickly.

In separate remarks, Massano linked the delays to specific contractual clauses, particularly the guarantees requested by funders.

The Democratic Republic of Congo has asked the DFC to help finance the rehabilitation of a key railway line. The route connects copper and cobalt mines near Kolwezi to a broader export corridor, according to Transport Minister Jean-Pierre Bemba.

Congo is also speaking with the European Union and the European Investment Bank about backing the project through a public-private partnership.

Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization

Read more: NevGold’s latest drill results extend priority target at Limo Butte by over 200 metres

Trump administration is interested in African minerals

Bemba said the government aims to launch a tender for construction in November. If all goes to plan, the railway could be operational within three years.

Congo is the top global producer of cobalt and the second-largest for copper. It also holds vast lithium reserves that could move along this line.

The Trump administration has taken growing interest in Africa’s critical minerals as part of its broader strategy to counter China’s influence.

Although the US trails China in Africa’s minerals race, Coleman believes it is not too late to catch up. China processes all the minerals it extracts from Africa domestically, but most African nations want a different approach.

Coleman argued that both the US and African countries can still diversify their customer base. He said now is the time to rethink how minerals are processed and add value locally.

The United States has launched several initiatives to counter China’s dominance in critical minerals. Through the FAST41 project, it is evaluating seabed mining opportunities near American Samoa. It has also fast-tracked key domestic mining projects under the Fast 41 permitting process.

The Department of Energy and the Treasury have begun deploying billions in funding through the Inflation Reduction Act and the Bipartisan Infrastructure Law.

Several companies also stand ready to support this effort. MP Materials Corp. (NYSE: MP) has restarted rare-earth processing at its Mountain Pass mine and opened a magnet facility in Texas. Ucore Rare Metals Inc (CVE: UCU) (OTCMKTS: UURAF) (FRA: U9UA) is building rare-earth processing plants in Louisiana and Alaska. NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) exploring antimony and gold in Nevada, could help supply a key mineral for energy and defense.

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NevGold Corp is a sponsor of Mugglehead news coverage

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