Highlights

• The US is securing African strategic minerals through offtake agreements and financial arrangements rather than direct mine operations.
• The focus is on DRC, Zambia, and Guinea for supplies of copper, cobalt, germanium, and gallium.
• Gécamines plans to ship 100,000 metric tons of copper from Tenke Fungurume to the US in 2024, marking a significant shift in trade flows.
• The DRC is emerging as a germanium supplier with new domestic processing capabilities.
• Chinese state analysis contrasts US market-based financial mechanisms with China's broader infrastructure-focused approach.
• This contrast is exemplified by continued Simandou iron ore development in China versus US hesitation on Manono lithium amid ownership disputes.

A report circulated by China’s Ministry of Natural Resources through the China Rare Earth Industry Association—citing western media—highlights contrasting approaches by Washington and Beijing in securing African copper, cobalt, and other strategic minerals ahead of the Investing in African Mining Indaba conference in Cape Town.

According to diplomats, executives, and analysts quoted in the report, the United States is emphasizing offtake agreements and state-backed financial arrangements rather than direct mine operation. U.S. engagement is focused on Zambia, Guinea, and particularly the Democratic Republic of Congo (DRC), which accounts for more than 70% of global cobalt supply and produced approximately 3.3 million metric tons of copper in 2024, according to this Chinese account.

Rather than expanding operational control in higher-risk jurisdictions, Washington is reportedly strengthening supply-chain access through trading houses and structured purchase agreements, involving firms such as Mercuria and the DRC’s state-owned miner, Gécamines.

Offtake agreements allow buyers to secure portions of future production in exchange for financing or guarantees. Analysts cited in the report argue that this approach reduces political and operational exposure while improving short-term supply resilience.

The most specific development referenced is that Gécamines is preparing to ship roughly 100,000 metric tons of copper from Tenke Fungurume production to the United States this year. If realized, this would represent a meaningful shift in copper trade flows, though it does not alter underlying ownership structures.

The report also notes that the DRC is emerging as a supplier of germanium and gallium—materials important for semiconductors and defense applications. Gécamines has reportedly begun exporting domestically processed germanium for the first time, signaling incremental progress in local value addition.

Meanwhile, U.S.-backed KoBold Metals (opens in a new tab) has secured more than 3,000 square kilometers of exploration ground in the Central African copper belt but has stated it will not advance the Manono lithium project (opens in a new tab) until ownership disputes are resolved. In contrast, China-supported infrastructure construction at Guinea’s Simandou iron ore project continues to advance, reflecting different capital deployment models and risk tolerance.

From a Chinese perspective, the distinction is strategic: the U.S. appears to be leveraging financial tools and market mechanisms, while China maintains a broader industrial and infrastructure footprint across African mining ecosystems.  What are the implications of these distinctions?

Disclaimer: This report originates from Chinese state-affiliated media and references secondary international reporting. The information has not been independently verified and should be corroborated through additional sources before forming business or investment conclusions.