U.S. mining ties relation with African mining

Graphite project

In September, the U.S. government approved $150 million for a graphite mine in Mozambique. The funding was granted to Twigg Exploration and Mining Lda. Twigg Exploration and Mining Lda has been operating over the Balama Graphite Operation in the province of Cabo Delgado in Mozambique with the largest graphite reserve globally. Obtained loans will increase the production of graphite, as well as it will grow the graphite global supply chain.

According to GlobalData, Mozambique is the world’s second-largest producer of graphite (14% of global production). According to the data over the five years to 2021, production from Mozambique increased by a CAGR of 294%. It is also forecasted to rise by a CAGR of 13% between 2022 and 2026.

Tightening relations

The loan is another step in closing the relationship between the U.S. and Africa’s countries which are rich in critical minerals. The previous step was a workshop organized in Zambia, and Kinshasa, which aimed to gather U.S. experts to set up a local battery manufacturing operation. Moreover, at the conference, Kimberly Harrington, deputy assistant secretary of the U.S. Department of State – Bureau of Energy Resources stated: “Critical minerals are incredibly important for the technologies that are going to drive the global clean energy transition”. She has also added: “My conversations here with the private sector and with partners in a variety of governments have advanced those discussions.”

The loan decision to Twigg a part of Syrah Resources Ltd. (the biggest graphite producer outside China) will secure critical materials that are applied in the vehicle industry (electric car batteries) or a nuclear reactor.

In December, Antony Blinken the U.S. Secretary of State signed an understating with Congo and Zambia (major producers of cobalt and copper) on developing a plan that will be able to support common ways for interested parties to develop an electric-vehicle value chain.