The United States International Development Finance Corporation (DFC) announced on Friday (December 5) its intention to invest in the critical mineral supply chain in the Democratic Republic of the Congo to ensure the supply of minerals essential to U.S. national security. This move is part of the Trump administration’s efforts to accelerate reducing reliance on key mineral resources from China.
In a statement released on Friday, DFC stated that the first memorandum of understanding focuses on DFC’s proposed equity investment in the joint venture between the state-owned mining company Gecamines SA of the Democratic Republic of the Congo and the Swiss-based multinational company Mercuria Energy Trading. This collaboration will promote the commercialization of copper, cobalt, and other critical minerals, thereby safeguarding the security of the U.S. critical mineral supply chain.
The day before DFC issued the statement, the Democratic Republic of the Congo and the United States signed a strategic infrastructure and mineral cooperation agreement. The Democratic Republic of the Congo possesses abundant reserves of various important mineral resources, including copper, cobalt, lithium, tantalum, and manganese.
According to Bloomberg, Gecamines, the state-owned mining company of the Democratic Republic of the Congo, stated in an email that “this cooperation will grant priority purchasing rights to U.S. end users, enabling U.S. companies to access crucial mineral resources essential for economic growth and competitiveness.”
Under the U.S.-Democratic Republic of the Congo Strategic Partnership Agreement, the Democratic Republic of the Congo has committed to transporting more mineral resources through the Lobito corridor in Angola to the Atlantic coast. Currently, most of the country’s export goods are transported southward or eastward along roads or railways.
In order to facilitate the transportation of the Democratic Republic of the Congo’s minerals to the United States, DFC also announced a second memorandum of understanding on Friday. DFC plans to provide up to $1 billion in financing to Mota Engil Engenharia e Construção África S.A. of Portugal to support the rehabilitation, operation, and handover of the Dilolo-Sakania railway in the Democratic Republic of the Congo. This project will connect with the Lobito Atlantic Railway in Angola, forming a strategic regional corridor to expand trade, attract private sector investment, and enhance the transportation of key goods and passengers in central and southern Africa.
“These projects will help safeguard the security of essential supply chains, expand opportunities for the private sector, enhance America’s global competitiveness, and support peace, prosperity, and dignity in the Central African region,” said DFC Chief Executive Officer Ben Black.