AVZ avz minerals limited

Running discussion on SP, page-84802

  1. 1,868 Posts.
    lightbulb Created with Sketch. 464
    Update from GROK - watch this space

    As of March 10, 2025, the United States is engaged in exploratory negotiations with the Democratic Republic of Congo (DRC) regarding potential partnerships for critical mineral resources. These talks are driven by the DRC’s vast reserves of minerals like cobalt, lithium, copper, tantalum, and uranium—essential for advanced technologies, renewable energy, and national security—and the U.S.’s strategic interest in securing supply chains amid global competition, particularly with China.
    The DRC has proposed a minerals-for-security arrangement, offering U.S. companies exclusive access to its mineral wealth and infrastructure projects, such as operational control of extraction and export rights, participation in a deep-water port project at Banana, and the creation of a joint strategic mineral stockpile. In exchange, the DRC seeks U.S. military support to counter a Rwanda-backed rebellion, specifically the M23 insurgency in its eastern regions, which threatens both stability and resource control. A letter dated February 21, 2025, from Congolese Senator Pierre Kanda Kalambayi to U.S. Secretary of State Marco Rubio requested an urgent meeting between DRC President Félix Tshisekedi and U.S. President Donald Trump to finalize this deal. The proposal also includes U.S. military training, equipment, and access to bases to secure mineral-rich areas.
    The U.S. State Department has expressed openness to these discussions, emphasizing alignment with the Trump administration’s “America First” agenda. This follows earlier efforts, such as a 2023 Memorandum of Understanding involving the DRC, Zambia, and the U.S. to develop the Lobito Corridor, an 800-km rail project to enhance mineral exports, backed by over $4 billion in U.S. investments announced in December 2024. Additionally, a $2 million USAID grant in 2024 to ROK Metals in Likasi aims to boost copper and cobalt production for export to the U.S., signaling ongoing economic engagement.
    However, the negotiations face challenges. The DRC’s proposal stems partly from a desire to diversify away from China, which dominates its mining sector with firms controlling roughly 80% of cobalt output. Yet, the conflict in eastern DRC, exacerbated by the M23 rebels’ control of key mining areas like Rubaya (a major tantalum source), complicates investment. Analysts suggest Kinshasa’s push may reflect desperation amid escalating violence, with some questioning whether the U.S. will commit militarily given the region’s instability and the presence of ineffective UN peacekeeping forces. China’s entrenched position also poses a hurdle, as the DRC has not signaled an intent to fully pivot away from Beijing.
    While no formal agreement has been reached, the talks reflect a broader U.S. strategy to counter Chinese influence in Africa’s mineral markets and secure resources critical for technologies like electric vehicle batteries and semiconductors. The outcome hinges on whether Washington sees the DRC’s offer as a viable counterweight to its geopolitical and economic rivals, balanced against the risks of deeper involvement in a volatile region.
    DRC mineral extraction methods
    China's role in African minerals

 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.