IndianOil | The Energy of India | Indian Oil Corporation Ltd.
Rather than competing head-on with Chinese mining companies that have entrenched positions across the continent, Washington is pursuing a strategy aimed at redirecting African mineral output into U.S.-aligned supply chains, particularly in countries such as Zambia, Guinea and the Democratic Republic of Congo (DRC).
The DRC is central to the contest. It accounts for more than 70 percent of global cobalt supply and produced about 3.3 million metric tons of copper in 2024, making it the world’s second-largest copper producer after Chile. China currently controls much of Congo’s mining, processing and export infrastructure, giving it a dominant position in global battery and electric vehicle supply chains.
U.S. officials say their approach reflects both commercial caution and geopolitical realities. Instead of pushing American miners into high-risk jurisdictions, Washington is relying on offtake agreements and trading structures that allow U.S. firms and allies to secure future mineral supplies without taking direct operational control.
Among the arrangements cited by industry sources are offtake and financing deals involving U.S.-aligned commodities trader Mercuria and agreements with Congo’s state mining company Gécamines. These structures aim to channel mineral output toward Western markets, even when production remains in Chinese-operated mines.
“The U.S. is trying to be pragmatic,” said one mining analyst familiar with U.S. policy discussions. “China controls too much of the upstream in places like Congo. The short-term solution is to compete for the metal, not the mine.”
A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, in an illustration of China’s deep integration across the value chain from African mines to Chinese factories.
The contrast in approach is also evident in the behaviour of private companies. KoBold Metals, a U.S.-backed mining firm that uses artificial intelligence to explore for minerals, has taken a cautious stance in the DRC, moving slowly and prioritising governance, transparency and long-term partnerships. That approach differs sharply from Chinese state-backed companies, which have moved aggressively into Congolese assets over the past two decades, often backed by infrastructure-for-minerals deals.
China’s presence in Africa’s mining sector is extensive. Chinese firms dominate cobalt processing globally and control or have stakes in many of Congo’s largest copper and cobalt mines. Beijing has also invested heavily in roads, railways and power infrastructure linked to mining projects, reinforcing its influence.
However, analysts say China’s grip may face growing tests. Rising scrutiny from African governments, Western pressure for diversified supply chains and concerns over debt and contract transparency are creating space for alternative partners.
In Zambia, the United States and its allies are backing projects linked to the Lobito Corridor, a rail and logistics network designed to transport copper from Zambia and Congo to Angola’s Atlantic coast, reducing reliance on Chinese-controlled routes to Indian Ocean ports.
In Guinea, Washington has also expressed interest in securing access to bauxite and other minerals critical to aluminium and clean energy technologies.
U.S. officials argue that offtake agreements can deliver faster results than greenfield mining investments, which can take a decade or more to reach production. By guaranteeing future purchases and providing financing support, Washington hopes to make Western-aligned supply chains more competitive.
Still, challenges remain. African governments continue to prioritise immediate investment, infrastructure and job creation, areas where China often moves faster and with fewer political constraints. Critics also note that offtake deals do not necessarily translate into greater local value addition.
As competition intensifies, the battle for Africa’s minerals is increasingly being fought not just in mines, but in contracts, logistics routes and downstream processing a complex race that will shape global supply chains for decades to come.
