The Trump administration has achieved a significant victory against China in the rare earth minerals market. The US has supported an American company, Virtus Minerals, in developing two major mines producing cobalt and copper in the Democratic Republic of Congo (DRC). This is the first US rare earth minerals acquisition in the African nation since President Trump announced the Washington Accord last December.
Rare Earth Minerals
Cobalt, used in a wide range of applications, from electric cars and mobile phones to military jets, is on the US government’s list of critical minerals. Copper, also on the list, has traditional uses such as piping for plumbing, but is also needed in electronics and the automotive industry.
Historically, China has been the dominant player in these metals, controlling 80% of the world’s cobalt production in the DRC. However, with the US-backed initiative, Virtus Minerals is set to change the balance in the minerals market.
US Investment in the DRC
Virtus Minerals, with 56 mining licenses in the DRC, is claiming to be the first US-owned operator back in the DRC in more than a decade. The company’s investment in Chemaf, a local cobalt and copper producer, will see the development of two mining operations, one in Lubumbashi and the other in Kolwezi.
The mines are expected to produce a combined 75,000 tonnes of copper and 20,000 tonnes of cobalt per year. The processing plants are currently under development and will come online next year. The minerals will be exported to the west through the Lobito Corridor to a port in Angola.
A State Department spokesperson said, “President Trump and Secretary Rubio remain firmly committed to supporting US companies that seek to do business in the DRC.” The spokesperson added, “The United States government fully supports the efforts of Virtus Minerals… This acquisition serves as an initial flagship US investment in the DRC, and sends a clear signal that the US private sector interest is real and will catalyze further investment in alignment with the US-DRC Strategic Partnership Agreement.”
Original reporting: Fox News (HLL/CB) — read the source article.
