IN a bid to reduce reliance on Chinese supply chains and diminish Russia’s dominance in mineral exports, US Deputy Treasury Secretary Wally Adeyemo unveiled America’s strategic pivot towards Africa for critical minerals. Adeyemo emphasised the need for diversification amidst geopolitical tensions and disruptions caused by the coronavirus pandemic and Moscow’s war in Ukraine.
‘While the US government is implementing measures to boost domestic production of strategic minerals, overseas resources remain crucial,’ Adeyemo remarked during a visit to a platinum mine in Marikana, South Africa, owned by Sibanye-Stillwater.
Acknowledging China’s significant investments in African mineral assets, including copper, cobalt, and lithium projects, Adeyemo underscored Africa’s pivotal role in global supply chains. He highlighted ongoing efforts by the US International Development Finance Corporation to de-risk private investment in Africa, aiming to bolster the continent’s contribution to critical mineral production.
‘We are working closely with our G7 allies to address infrastructure disparities and ensure fair competition,’ Adeyemo stated, stressing the importance of creating favourable market conditions for miners while safeguarding against market manipulation by countries like China.
Regarding Russia’s influence, Adeyemo noted South Africa’s potential to mitigate global reliance on Russian mineral exports, particularly palladium. South Africa, a major producer of palladium, stands poised to fill gaps in global supply chains, offering an alternative to Russian sources.
CEO Neal Froneman of Sibanye-Stillwater stressed the importance of US government support for companies engaged in critical mineral production. ‘Companies like ours require assistance such as loans or tariffs to ensure sustainable sourcing,’ Froneman stated, emphasizing the need for innovative approaches to secure critical mineral supply chains.
As tensions persist on the global stage, the US aims to foster partnerships with African nations to strengthen critical mineral supply chains, reduce dependence on geopolitical rivals, and ensure economic resilience in an increasingly volatile landscape.