Rare Earth Minerals | The Scramble for Africa’s Mineral Resources Heats Up: Who Will Prevail—China or the U.S.?

In defining ‘critical minerals,’ the article cites the U.S. Geological Survey’s criteria, noting that approximately 50 minerals are currently designated as vital to economic and national security—spanning battery metals (e.g., lithium, cobalt, nickel), defense and aerospace materials (e.g., rare earths, tungsten, titanium), and elements essential for clean-energy infrastructure (e.g., copper, molybdenum, vanadium). Supply chains for these minerals face a dual concentration risk: first, mining is heavily concentrated in politically unstable regions (e.g., the Democratic Republic of Congo accounts for 70% of global cobalt output); second, processing capacity is overwhelmingly dominated by countries whose strategic priorities may not align with those of the West (e.g., China controls the majority of global rare earth processing). This structural imbalance grants resource-rich nations unprecedented geopolitical leverage—and has spurred both the U.S. and China to accelerate their competition for Africa, dubbed the ‘global supercontinent of minerals.’ Although Africa hosts world-class mineral deposits, its overall development level remains severely lagging. Central Africa—especially the DRC—dominates cobalt and copper production, yet utilization stands at only 30–40%, compounded by weak transportation infrastructure; West Africa’s iron ore, gold, and bauxite sectors operate at 50–60% development rates; Southern Africa’s platinum-group metals and diamond industries are relatively mature; and East Africa is rapidly rising due to recent discoveries of gold and rare earth potential. Yet across the continent, inadequate infrastructure—including railways, ports, and electricity—constrains value capture from resources, thereby creating openings for external capital. It is precisely against this backdrop of ‘vast potential but limited capacity’ that the U.S. and China have rolled out markedly distinct strategic approaches. China’s strategy reflects a highly coordinated, state-led architecture, tightly integrating infrastructure development with mineral acquisition under the Belt and Road Initiative. Chinese ministries, central SOEs, and policy banks operate in concert, accepting high risk for long-term strategic returns. A typical case is the Simandou mega-iron-ore project in Guinea: China secured mining rights while simultaneously building a dedicated railway and deep-water port, ensuring end-to-end control—from mine to Chinese steel mills. Such contracts typically include 5–15-year long-term supply agreements, binding infrastructure commitments, equity stakes of 10–51%, limited technology transfer, and high local employment quotas. While this model enables rapid launch of large-scale projects, it often retains high-value refining stages in China—leaving African countries trapped in the ‘raw-materials export trap.’ By contrast, the U.S. pursues a public-private partnership model centered on private enterprises, backed by government financial tools. The U.S. International Development Finance Corporation (DFC) offers up to $60 billion in capital, supplemented by political-risk insurance and equity support, aiming to catalyze commercially viable mining projects. At the policy level, the Critical Minerals Security Act and the Defense Production Act grant the U.S. government statutory authority to intervene in supply chains. Recently, Secretary of State Marco Rubio announced a ‘Critical Minerals Ministerial Meeting’ scheduled for February 4, 2026, inviting core resource-rich countries—including the DRC, Guinea, and Kenya—to participate, underscoring Washington’s intent to build a ‘de-Chinese’ supply-chain alliance. Notably, the U.S. also leverages the ‘revolving door’ mechanism—for instance, former U.S. Special Envoy for Africa Peter Pham assuming the role of chairman at a mining company—to foster project implementation through political-business linkages. Additionally, the U.S. Treasury Department is collaborating with allies including the EU, Japan, and South Korea to establish a multilateral mineral security partnership—highlighting America’s alliance-based, institutionalized logic of competition.

Global Critical Minerals Industry Monthly Watch – June Edition

In June, activity across the global critical minerals sector surged—from policy legislation and industrial exploration to international cooperation and corporate mergers and acquisitions—as all stakeholders accelerated their strategic moves. 【Policy Highlights】Domestically, the ‘Implementation Regulations of the People’s Republic of China Mineral Resources Law’ officially entered into force on June 15, upgrading whole-chain regulatory oversight; the Ministry of Commerce added two U.S. rare earth companies to its export control list, responding to the U.S. designation of Chinese firms on its military-end-user list. Internationally, the G7 set its first-ever quantitative target for rare earth supply chains: reducing dependence on any single country to below 60% by 2030. Japan has even formally announced the launch of seabed rare earth development at Minami-Torishima Island in 2027. Meanwhile, the UK pledged £50 million, Sweden granted a 25-year lease, and India’s three largest conglomerates have all entered the field—no player intends to fold in this high-stakes game. 【Industry Development】A global exploration boom is underway: Guangxi launched an AI-powered smart mineral exploration initiative, deploying machines to traverse mountains and replace human surveyors; Fujian issued its first exploration licenses for rare earth deposits in nearly a decade. Overseas developments are even more dynamic—Australia discovered a clay-hosted rare earth deposit grading 5,568 ppm; large-scale rare earth deposits were identified in Malawi and Greenland, prompting multiple countries to rush in and stake their claims.

Fluor Corp Among US Firms Vying for Kenya Critical Minerals Project, Minister Says

22 hours ago

Fluor Corp is among US investors competing to develop Kenya's Mrima Hill critical minerals deposit after Chinese firms withdrew. A final decision on the tens-of-billions-dollar rare earth and niobium project is expected within three weeks.

reuters

2026-10-30

Fluor Corp Among US Firms Vying for Kenya Critical Minerals Project, Minister Says

Fluor Corp Among US Firms Vying for Kenya Critical Minerals Project, Minister Says

FAQ