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US should boost Africa ties to secure key minerals, report states

The U.S. must increase industrial ties with African nations to curb dependence on China for products of vital minerals, a. Washingtonbased think tank said on Tuesday.

U.S. economic and national security depend on securing a. trustworthy supply of critical minerals, including from Africa,. the United States Institute of Peace stated in a report.

The U.S. is nearly 100% reliant on foreign entities of. issue, mainly China, for essential critical minerals, it said, and. must develop own sources of supply to prevent being. shorthanded and susceptible to China's export curbs.

Western mining business are lagging Chinese rivals in the. race to tap Africa's abundant mineral resources, key to sectors. from electric car making to defence industries.

To counter China's running start in Africa, Washington must. roll out more energetic industrial diplomacy with an eager eye. toward developing critical minerals collaboration in Africa, the. 76-page report stated.

One alternative for the U.S. would be to increase business. diplomacy in countries such as Democratic Republic of Congo, the. world's No. 1 cobalt provider, and Zambia, Africa's. second-largest copper producer, it stated.

The competition for protecting minerals in Africa is heating. up as cash-rich Middle East firms join the race.

While Western mining business still see obstacles in. buying nations such as Congo, which lacks crucial. infrastructure such as roadways and adequate electrical energy, Chinese. miners have actually reinforced their grip in the country and are. expanding investment throughout Africa.

The International Development Financing Corporation said in. February it might scale up job financing in Africa to assist. reduce the risk of purchasing nations including Congo that. some investors still view as high risk.

Unlocking U.S. financial investment in Congo might be assisted by. resuming its consulate in Lubumbashi that closed in the 1990s. after completion of the Cold War, Tuesday's USIP report said.

The federal government also needs to focus on full advancement of. a memorandum of comprehending with Congo and Zambia which could. help assist U.S. private investors across the battery metals. supply chain, it stated.

The U.S. has actually actioned in to back the Lobito Passage, a rail. link from the central African copper belt that's crucial to export. of metals through Angola's Lobito port.

The U.S. is simply not on, or even near, par in completing. with China for crucial minerals investment and diplomacy in. Africa, and needs to take an energetic technique, USIP said.

Jose Fernandez, the U.S. State Department's under secretary. for economic growth, energy, and the environment said last month. the U.S. holds regular talks with Congo state miner Gecamines.

Still, the U.S. federal government is not likely to match the resource. levels and the mining ecosystem that China wields in winning. mining contracts, USIP stated, though concerted U.S. efforts to. land U.S. mining financial investment in Africa can be successful..

(source: Reuters)