U.S. and DRC Consider Minerals-for-Security Partnership Amidst Ongoing Conflict

The U.S. is exploring a minerals-for-security deal with the DRC, the top cobalt producer, aiming to reduce dependency on foreign supply chains and address regional instability caused by the M23 rebel group. The DRC offers access to critical minerals in exchange for military support, amidst concerns over transparency and ongoing conflicts that threaten mineral-rich territories.

The United States is exploring a minerals-for-security arrangement with the Democratic Republic of Congo (DRC), the leading producer of cobalt. This initiative aims to decrease the U.S.’s dependence on foreign supply chains and address the regional instability in eastern Congo, particularly due to the ongoing conflict with the M23 rebel group. The DRC proposed this deal as a means to exchange critical minerals for military support in stabilizing the region.

Recent discussions highlighted by a senior Congolese official and reported by the Financial Times indicate that President Felix Tshisekedi alluded to this potential partnership during an interview with the New York Times. A U.S. State Department spokesperson affirmed this interest, stating, “The DRC is endowed with a significant share of the world’s critical minerals required for advanced technologies. The United States is open to discussing partnerships…”.

The DRC holds vital mineral resources such as cobalt, lithium, copper, and tantalum, supplying over 70% of the world’s cobalt production. Cobalt is crucial for the development of electric vehicle batteries and renewable energy technologies. However, challenges such as declining market prices have forced some foreign operators to halt production, like the Chinese company MMG, which recently paused its activities.

In response to market oversupply, the DRC government implemented a four-month export ban. Illegal mining, smuggling, and escalating armed conflicts, primarily due to the M23 rebel group, further complicate the situation, threatening the mineral-rich regions and potentially escalating into regional conflicts involving neighboring countries.

A partnership with the U.S. could help stabilize the DRC while affording Washington easier access to critical minerals, thereby reducing reliance on China’s dominant role in the DRC’s mining sector. China, through state-owned enterprises like MMG, currently holds significant sway over the country’s mineral resources. Nevertheless, creating a deal is complex due to the volatile political atmosphere in Kinshasa and past criticisms regarding the transparency of foreign mining agreements in the DRC.

In summary, the U.S. and DRC are considering a mutually beneficial minerals-for-security deal that could alleviate regional instability while granting the U.S. access to critical minerals. The DRC’s vast mineral resources, particularly in cobalt, are of significant interest due to their relevance in modern technologies. However, challenges such as illegal mining, regional conflicts, and historical transparency issues in mining agreements cast uncertainties over this potential partnership.

Original Source: www.benzinga.com