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US President Joe Biden and Saudi Crown Prince Mohammed bin Salman bin Abdulaziz. (Image by the Saudi Press Agency, Wikimedia Commons.) |
The United States and Saudi Arabia are in talks to secure metals in Africa needed to help them with their energy transitions, the Wall Street Journal reported on Sunday, citing people with knowledge of the talks.
A state-backed Saudi venture would buy stakes in mining
assets worth $15 billion in African countries such as the Democratic Republic
of Congo, Guinea and Namibia, which will permit US companies to have rights to
buy some of the production, the report added.
The US is in a race to catch up with China for supplies of
cobalt, lithium and other metals that are used in electric car batteries,
laptops and smartphones.
In a similar arrangement in July, Saudi Arabian Mining Co
(Ma’aden) and the Saudi Public Investment Fund (PIF) acquired 10% of Brazilian
Vale’s base metal unit, while US investment firm Engine No. 1 acquired 3%.
The newspaper said the PIF approached Congo in June about
investing in cobalt, copper and tantalum in the country via its $3 billion
joint venture with Ma’aden called Manara Minerals
Manara is also focusing on iron ore, nickel and lithium.
The White House is seeking the financial backing of other
sovereign-wealth funds in the region, but talks with Saudi Arabia have
progressed the farthest, the Journal added.
The Saudi government and The White House did not immediately
respond to a request for comment