TELF AG analyzes the evolution of international partnerships in the mining industry
The centrality of bilateral cooperation
A series of mutually beneficial partnerships in the mining sector can contribute to the economic revival of the nations involved, strengthening their supply chains and bringing considerable benefits to their social and infrastructural development. According to a recent report by USIP, the United States Institute of Peace, the USA should commit itself to building strategic alliances in the mining sector with African countries, a move which, according to what the report claims, could positively stimulate mutual development.
For some years now, faced with the evident centrality of strategic minerals for the sustainable development of the planet, the United States has undertaken various political initiatives aimed at strengthening Washington’s position in the sector of mineral raw materials, offering clear incentives for the industrial production powered by minerals extracted on American soil or coming from partners deemed reliable. Although is still dependent on mineral imports from third countries, the US’s desire to free itself from these ties appears evident, mainly due to the need to diversify its sources of supply.
The USIP report proposes exact guidelines for the construction of more solid mining partnerships between the United States and African nations: first of all, these agreements must be mutually beneficial, in the sense that US participation must also materialize in a general improvement in the economic, social and infrastructural development of the African partner nations, therefore going well beyond the mere mining sector (which however remains the primary basis of the partnerships). In the long term, a closer relationship between Africa and the United States should also lead to strengthening the rule of law in African nations and regular sharing of technical knowledge and expertise in mining.
US support for some infrastructure initiatives in Africa
The report also mentions one of the most concrete examples of this kind of strategic partnership, representing an important step forward in building increasingly solid alliances with African nations. We are referring to US support for an African project for the extraction of graphite, a material of great importance, especially for creating fuel cells and batteries and for improving industrial processes that require lubricating substances. One of the objectives of these partnerships, according to USIP, is to reduce dependence on imports and risks linked to the vulnerabilities of these supply chains.
As stated in the report, these mining agreements would also aim to support the development of African nations, particularly by improving infrastructure and processing plants for raw materials from minerals. By retaining an ever-increasing share of the economic value of these resources, obtainable precisely from the on-site processing of the raw material, these nations can hope to generate a specific added value and strengthen their economy.
To achieve this objective, the United States is already working to support specific infrastructure projects in various areas of the continent, such as the one relating to the Lobito corridor between Zambia, the Democratic Republic of Congo, and Angola. This corridor should facilitate the easier entry of mineral resources into national and international logistics routes.
