The United States government says it has so far identified 20 projects it plans to support under its Minerals Security Partnership (MSP) initiative to boost critical mineral supply chains.
The 20 projects were drawn from more than 200 projects proposed to the MSP partners made up of 14 governments committed to the development of initiatives with high environmental, social, and governance (ESG) standards that diversify critical minerals supply chains.
The U.S. Under Secretary of State for Economic Growth, Energy, and the Environment, Jose W. Fernandez, who disclosed during a digital press briefing at the 2024 Investing in Africa Mining Indaba Conference in Cape Town, South Africa said the government would continue to review the implementation of 17 projects to help them become a reality.
While announcing the signing of an agreement under an MOU between Gécamines, la Générale des Carrières et des Mines, in the Democratic Republic of the Congo, and JOGMEC, the Japan Organization for Metals and Energy Security, Fernandez said this would expedite European and Japanese investment in the mining sector in the DRC, as a demonstration of the MSP’s efforts to secure and diversify critical mineral supply chains.
Last October, the MSP announced plans to announce 11 projects in mining and mineral extraction, out of which four projects were in processing, while two projects were in recycling and recovery, with seven located in Africa.
Describing it as an important milestones, Fernandez said last October four key critical mineral projects, including USAID’s approved loan to Twigg Exploration and Mining for a graphite mining operation in Mozambique.
He said the government would continue to unveil these projects in the next few months to support the MSP, as the U.S. Government’s Energy and Mineral Governance Program continues to strengthen the technical capacity and the legal regulatory frameworks of countries in Africa.
“This is the kind of support that enables our partners to develop mineral resources sustainable – sustainably and for economic growth. It’s also part of our strategy to engage in a race to the top, that we believe that our companies and our workers can benefit from higher standards that they can – that we can comply with and there can be competitive advantages going forward,” he said.
Besides, he said the government has several active technical capacity projects established the DRC, Kenya, Mauritania, Tanzania, Uganda, and Zambia.
In addition, he announced a new partnership between the U.S. and Finland on capacity building for the mineral sector governance in Africa under which the Department of State awarded a $1.2 million cooperative grant to the University of Oulu in Finland to create the Mining Innovation Exchange through Arctic Regional Collaboration, with the acronym MINEARC, M-I-N-E-
The A-R-C – programme, he explained. would enable the US government to work with Finland on the Minerals Security Partnership on the level of the Finnish processing and smelting industry, value-added industry, and to find ways of engaging with Africa.
Recognizing the important role that the private sector must play in meeting the critical minerals challenge, he said in late 2023 the US government also launched another public-private partnership, called the Minerals Investment Network for Vital Energy Security and Transition.
The MINVEST, M-I-N-V-E-S-T programme, he said was a new public-private partnership set up with the nonprofit SAFE’s Center for Critical Mineral Strategy. MINVEST to promote public-private dialogue to spur investment in strategic mining, processing, and recycling opportunities that adhere to high ESG standards.
This, he said, was the government’s way of creating a line of communication with mining companies to be able to understand their needs and for the government to be able to communicate opportunities available.
The MSP, he explained, is the US government’s appreciation of the need for African countries to be more than attractive opportunities for value-added producers and benefits.
One of such benefits, he said, has to do with keeping the supply chains close to each other by reducing the cost and time of processing and shipping
“So, MSP helps the resilience of our supply chains. But the other benefit that it has, and it – that – it’s one that it’s recognized by leaders when I speak to them – I mean, their eyes literally perk up when I talk about our desire to engage with African countries in that, in value-added production. This creates jobs and it creates good jobs.
“And not only does it create jobs, it also provides the kinds of technical upscaling that we want to do and that attracts countries and that attracts governments.”
