Every few years the Democratic Republic of the Congo rises to international attention. Often this is due to a new round of fighting in the eastern regions of the country, with associated human rights violations. This time, however, Congo’s resources are in the spotlight as nations scramble to secure access to some of the world’s largest and richest deposits of critical minerals ranging from battery metals to rare earths, gallium, germanium, and others vital to “green” economies, national defense, and slowing climate change.

The major “bidders” at the moment include China, Saudi Arabia, and the United Arab Emirates. China of course has been present in the DRC for decades in the mining industry with activities ranging from blatently illegal to merely controversial, as is the case with Tenke Fungurume, one of the world’s largest copper and cobalt mines. In 2006 China entered into an “infrastructure for minerals” agreement with the then-government of Joseph Kabila. Under the terms of this agreement, China built some roads, repaired some airport tarmacs and some government buildings – mostly in the eastern part of the country and in the mineral rich Katanga province. The Congolese people were unhappy with these arrangements as few jobs were created and those which were, involved menial labor. Due to the cheap materials used several projects were of short duration: perhaps the most famous was the road connecting the Bukavu airport with the city, which began eroding and collapsing in places even before the entire project was completed. In exchange, China received some of the richest copper concessions in the Katanga province and rights to other mineral holdings throughout DRC. In 2022 China’s Zijin Mining Group launched a bid to take over the Manono lithium/tin concession being developed by an Australian company and in 2023 was awarded development rights when the DRC government said the Australians had been moving too slowly. The award was revoked, however, and China now is contesting that decision.

In 2021 Saudi Arabia signed a general cooperation agreement with the Tshisekedi government and in January 2024, at the Future Minerals Forum in Riyadh, the two countries signed an MOU governing cooperation in developing Congo’s mineral wealth. Through its Private Investment Fund (PIF) Saudi has established a new vehicle, Manera Minerals, 50% owned by PIF and 50% by the state-owned mining company Ma’aden to actively work on sourcing critical minerals outside of Saudi to support the Saudi 2030 transformative development vision. Manera is charged with taking equity positions in existing companies thereby accelerating Saudi’s access to critical minerals. Unlike the Chinese, the Saudis enjoy a positive public perception. Saudi is seen as a role model and teacher for utilizing natural resources to enrich and develop countries – a major goal for African nations – and also has the resources to invest even during market downturns when commodity companies tend to pull back, thereby ensuring that projects continue to be developed regardless of external pricing constraints. Saudi’s recent agreement with the DRC envisions up to $2 billion in investments in the mining, transportation and infrastructure sectors. Crucially, the MOU envisions investment in processing and refinement of mined products, supporting a long-desired value-add for Congolese mining.

In 2023 the UAE signed a $2 billion deal with one of the DRC’s state mining companies, Sakima, to develop up to 4 mines in South Kivu and Maniema provinces. Sakima has mining concessions for tin, tantalum, tungsten and gold in those areas: another state-owned company, Gecamines, controls copper in Katanga. This broader agreement followed an initial partnership for Primera Group, a UAE firm, to export at preferential rates artisanally-mined gold, coltan, tin, tantalum and tungsten. This agreement supports the DRC Government’s desire to professionalize artisanal mining and ensure miners are getting a better return for their efforts. The DRC also hopes the deal will help strangle access by the militias to the area and cut-off their access to funds supporting continued violence in Eastern Congo.

Russia also is stepping up its interest in the DRC. Russians, like Chinese, have been in the Congo for decades mostly smuggling arms into, and minerals out of, Eastern DRC. Elements of the Wagner Group reportedly had trained and partnered with some of the militias in the area to more directly (albeit still illegally) exploit Congo’s mineral wealth.  In the last six months, following the death of Wagner Group leader Yevgeny Prigozhin, Russian military activities have increased and Russian political influence is emerging. The recent civil unrest in DRC’s capital, Kinshasa, which saw several days of sometimes violent demonstrations in front of the US and European Embassies as well as the UN offices, is believed to have been spurred by Russia. During the Cold War in the 1960’s the DRC had been a strategic site for both the US and Russia: as a bid to keep Russia from increasing its influence in DRC the US supported the rise of then-Sargent Mobutu. It appears that access to critical minerals in the DRC may be fueling another Cold War-style intervention in Africa by Russia – which has offered its military support to several African countries to enable governments to “suppress unrest.”

Meanwhile, what are the US and European countries doing? Very little. Even though by some estimates approximately 70% of the crucial critical minerals are in an arc spanning Central Asia to Africa, and even though in many countries the US remains the preferred partner (when possible) there, so far has been little apparent effort to support US businesses to develop and secure the resources needed for economic transformation and national defense.

Sometimes when the wind changes direction we notice, especially if the change is sudden or sharp. More subtle changes often go unnoticed.

The same can be said for the winds of global politics. Sometimes the shift is unmissable – Arch Dukes are assassinated, countries are invaded, atomic bombs are dropped – but sometimes it largely goes unnoticed save by the savvy.

The late 1960s and early 1970s were tumultuous in the Middle East, with conflicts ranging from the 6 Day War to the Yom Kippur War drawing the US ever closer to Israel while seeking ways to broker a cessation or at least diminution of hostilities. During this period the Kingdom of Saudia Arabia began increasing its hold over Aramco (a joint US-Saudi oil extraction company) and by 1976 Saudi was the sole owner of one of the world’s largest oil companies. Among other consequential developments that ensued was the establishment of OPIC and the rise of the so-called petrodollar. Taken together, a significant change to the global winds of power which elevated Saudi Arabia’s economic standing and changed its future.

A similar global shift appears to be happening now, in the area of critical materials vital to “greening” various (largely Western) economies, especially the US. And once again, the Kingdom of Saudi Arabia, this time under the skillful direction of Crown Prince Mohammed bin Salman, is causing the winds of change to blow and challenge not only the West but the East as well.

Recently (January 25, 2024), Saudi Arabia joined the so-called BRICS, an organization founded by China and Brazil in 2006 with fellow members Russia and India. South Africa joined in 2010, and in 2023 Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Saudi Arabia were invited to join with membership effective in January 2024. The group’s purpose as defined at its founding is to bring together the world’s most important developing countries to challenge the political and economic power of the wealthier nations of North America and Western Europe. The inclusion of Iran evidently gave Saudi pause but the Kingdom appears to have agreed to join, reportedly at the urging of China.

Adroitly balancing that decision, the Prince recently signed an agreement expanding long-standing cooperation with Japan’s Sumitomo Corp. to develop the Kingdom’s critical minerals resources from mining to processing, working together with Aramco, which is gradually transforming from petroleum to a mining company, in accordance with the Prince’s Saudi Vision 2030. Sumitomo already was working with various elements of the Saudi political and business community on projects ranging from reducing the “heat island” effect in Saudi’s financial district to building “smart cities” of the future. The latest MOU also provides for cooperation in developing new industries in Saudi, including steel, semiconductors, and AI-enabled technologies.

The Public Investment Fund (PIF) overseen by the Crown Prince is the financial vehicle for realizing the Saudi Vision 2030. Per its website, it already has created 93 portfolio companies across 13 key sectors and has over $700 billion in assets under management. The most recent example of a PIF-funded company is “Alat,” announced on February 1 by Crown Prince Mohammed bin Salman who will personally lead its efforts within seven main strategic business units – advanced industries, semiconductors, smart appliances, smart health, smart devices, smart building and next-generation infrastructure – to support development of Saudi Arabia as a worldwide center for sustainable technology manufacturing with an emphasis on electronics. 

Such an ambitious agenda will demand more resources than Saudi itself can provide as critical minerals feedstock, and therefore the Kingdom is emerging as a key player in the latest “scramble for Africa,” particularly in the DRC (Democratic Republic of the Congo), where its ambitions may run afoul of China’s.

Saudi Arabia has signed two agreements recently with the DRC, one an MOU covering general economic cooperation and development, the other specific to the mining industry with a special emphasis on critical minerals, which the DRC has in abundance, ranging from lithium, nickel, and cobalt to copper and rare earths. Among other things, Saudi has said it will build processing capacity in Congo and also assist in developing national infrastructure.

In short, while the US and other Western nations continue debating how to secure the necessary elements to transform their economies, the Crown Prince of Saudi Arabia appears to be leading his nation boldly into a future in which Saudi could be a dominant player – perhaps even more as China’s resources begin to be depleted after decades of mining, opening the door for a new Middle Eastern hegemon.

Welcome to the latest Technology Metals Report (TMR) where we highlight the Top 10 news stories that members of the Critical Minerals Institute (CMI) have forwarded to us over the last 2-weeks.

Key highlights in this Technology Metals Report include significant developments such as Rainbow Rare Earths Limited’s discovery in South Africa, China’s unveiling of the new heavy rare earth mineral Bayanoboite-Y, and the Australian Nuclear Science and Technology Organisation (ANSTO)’s $13.9 million funding for critical minerals research. The edition also spotlights the “CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals,” focusing on the strategic importance of Middle Eastern investments in Africa’s mineral sector. Moreover, the increasing global interest in Saudi Arabia’s mineral resources, highlighted at a recent mining conference in Riyadh, illustrates the geopolitical and economic shifts in the critical minerals landscape.

The 10 stories selected for this edition of the TMR, with source links to source stories for this fast-paced sector, are listed chronologically for your ease and review. These narratives highlight the dynamic shifts, strategic innovations, and geopolitical complexities shaping the critical minerals landscape, reflecting the increasing significance of these resources in technology, green energy solutions, and global market dynamics.

The Rare Earths Mine That Won’t Need a Single Shovel (January 17, 2024, Source) — George Bennett, a South African mining veteran, discovered a unique opportunity in two gypsum waste piles near the Mozambique border, which contain high concentrations of rare-earth minerals crucial for wind turbines and electric vehicles. This finding is notable due to the rarity of economically viable rare-earth concentrations, particularly above ground, and China’s dominance in the rare-earth market. Rainbow Rare Earths Limited (LSE: RBW), Bennett’s company, projects over $1 billion in net value from these piles, with no traditional mining costs. The project is set to start in 2026 and offers a competitive edge due to its low production costs and innovative processing methods. Despite market volatility, Rainbow’s unique approach positions it well in the growing demand for rare-earth oxides, essential for the energy transition. Referral, CMI Director, Russell Fryer

China discovers new heavy rare earth mineral (January 16, 2024, Source) — Chinese scientists have discovered a new heavy rare earth mineral named Bayanoboite-Y at the Bayan Obo Rare Earth Mine in Baotou, North China’s Inner Mongolia Autonomous Region. This mineral, unique in its chemical composition and crystal structure, contains significant heavy rare earth elements like yttrium, dysprosium, gadolinium, erbium, and lutetium. It marks the world’s first fluorocarbonate heavy rare earth new mineral discovery, signifying a major breakthrough in understanding the occurrence and evolution of heavy rare earth minerals. The Bayan Obo mine, crucial to China’s rare-earth reserves, has discovered 18 new minerals since 1959. China, leading globally in rare earth production, plans to expand its rare-earth industry, leveraging recent advancements in mining efficiency and recovery rates. Referral, CMI Director, Alastair Neill

China’s rare earth exports rise on demand from EV, high-tech sectors (January 12, 2024, Source) — In 2023, China’s rare earth exports rose by 7.3% to 52,307 metric tons, fueled by growing demand from the electric vehicle and high-tech sectors. As the world’s leading producer, China’s rare earths are essential in various applications, including new energy vehicles, wind power, and military equipment. Despite international tensions over critical mineral control and China’s export restrictions on certain key materials, demand continued to outstrip supply, affecting prices. However, fears of supply shortages, especially after a mining suspension in Myanmar, drove prices up. While China increased its mining quotas, its rare earth exports dropped by 18.24% in December 2023 compared to the previous month. Meanwhile, China’s rare earth imports surged by 45% in the last month, reflecting a 44.8% annual increase. Referral, CMI Director, Alastair Neill

Will the magnet rare earths prices rise in 2024? (January 12, 2024, Source) — The magnetic rare earths sector, impacted by falling prices in 2022 and 2023 due to reduced global EV demand, is examined with a focus on Lynas Rare Earths Ltd. (ASX: LYC) and MP Materials Corp. (NYSE: MP). The downturn is linked to a slow global economy and EV sales decline, but a recovery is anticipated. Lynas has launched production at Australia’s Kalgoorlie Rare Earths Processing Facility, signaling progress. MP Materials is expanding in the USA with a focus on NdPr oxide and NdFeB magnets production. The sector’s future, potentially seeing a NdPr supply deficit as early as 2024, hinges on global economic recovery and EV market resurgence. These developments are crucial for establishing a Western-dominated rare earths and magnets industry within this decade.

ANSTO welcomes $13.9M critical minerals funding (January 12, 2024, Source) — The Australian Nuclear Science and Technology Organisation (ANSTO) has been allocated $13.9 million under the Australian Critical Minerals Research and Development Hub, as part of a wider $22 million funding package. This investment, announced by Minister Madeleine King, will support ANSTO’s research into rare earth elements, focusing on the discovery, extraction, and processing from clay-hosted and ionic adsorption deposits. Led by CEO Shaun Jenkinson, the project aims to enhance Australia’s standing in the global rare earth market, develop specific mineral processing techniques, and improve environmental outcomes. Collaborating with Geoscience Australia and CSIRO, ANSTO’s two-year project aligns with the national strategy for critical minerals, emphasizing their importance in green technologies and the pursuit of net zero emissions. Referral, CMI Co-Chairman Jack Lifton

Hunt for Critical Minerals Draws World Powers to Saudi Arabia (January 12, 2024, Source) — The global quest for critical minerals has brought world powers like the U.S., China, and Russia to Saudi Arabia, which is emerging as a key player in the mining sector. The kingdom, traditionally known for its oil wealth, is investing heavily in mining to diversify its economy and has positioned itself as a central hub in a “super region” rich in natural resources. This was highlighted at a recent mining conference in Riyadh, attended by international government and industry leaders. Saudi Arabia aims to leverage its strategic geographical position and vast untapped mineral wealth, recently re-estimated at $2.5 trillion, to attract global investments and partnerships. The conference saw significant participation, indicating a growing interest in Saudi Arabia’s mining potential and its efforts to establish stronger diplomatic and economic ties with various countries. Deals worth approximately $20 billion were expected, with the U.S. and Russia signing memorandums of understanding. This shift towards mining is part of Saudi Arabia’s broader Vision 2030 strategy to reduce oil dependency and cultivate new economic sectors. Referral, CMI Co-Chairman Jack Lifton

Why Core Lithium’s mine closure was just the tip of the iceberg (January 11, 2024, Source) — Core Lithium’s closure of its Grants mine reflects a broader crisis in the Australian mining sector, particularly impacting small-to-mid cap companies unnoticed for the last 12-24 months. Several mines, including First Quantum Minerals Ltd. (TSX: FM) and POSCO’s Ravensthorpe, Arcadian Lithium PLC’s (NYSE: ALTM | ASX: LTM) Mt Cattlin, and others, face similar risks due to declining battery metal prices and operational challenges. The cobalt market, for instance, saw dramatic price fluctuations, impacting projects like Jervois Global Limited’s (ASX: JRV | TSXV: JRV | OTCQB: JRVMF) Idaho Cobalt Project. Other companies, such as Hastings Technology Metals Ltd. (ASX: HAS) and Panoramic Resources Limited (ASX: PAN), have had to alter strategies due to various challenges. This trend contrasts with larger, stable companies like Pilbara Minerals and underscores the need for revised economic studies and strategies in a volatile market. Referral, CMI Director, Peter Clausi

Serra Verde Enters Commercial Production (January 11, 2024, Source) — Serra Verde has commenced commercial production of Mixed Rare Earth Concentrate from its Pela Ema deposit in Brazil. Targeting 5,000 tonnes annually, these rare earths are crucial for electric vehicle motors and wind turbines. The company has secured customer acceptance and offtake agreements, with plans to double production by 2030. Emphasizing sustainability, Serra Verde’s operations use eco-friendly methods and renewable energy. CEO Thras Moraitis highlights the company’s role in producing critical rare earths, supporting sustainable energy transitions. Ricardo Grossi, COO, emphasizes Brazil’s emerging role in rare earth production and the company’s commitment to sustainable practices and stakeholder benefits. Referral, CMI Director, Alastair Neill

Rare Earth Oxide separation work commences at the back-end pilot plant in Florida, U.S. (January 11, 2024, Source) — Rainbow Rare Earths Limited (LSE: RBW) has initiated the separation of rare earth oxides at their pilot plant in Florida, U.S., using a continuous ion exchange and chromatography process developed by K-Technologies. This innovative approach, replacing traditional solvent extraction, is set to produce critical rare earths like neodymium, praseodymium, dysprosium, and terbium, crucial for the green economy. The Johannesburg pilot plant has prepared and shipped mixed rare earth carbonate to Florida for separation, enhancing the process by producing a cerium-depleted version for more efficient separation. Despite some delays, the project continues to make significant advancements in optimizing the process for commercial scale. The Phalaborwa project, a key part of Rainbow’s strategy, aims to establish an independent, ethical supply chain for rare earth elements, essential in various advanced technologies and green energy solutions. Referral, CMI Director, Alastair Neill

CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals (January 10, 2024, Source) — The “CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals,” led by Tracy Weslosky of the Critical Minerals Institute, discussed the rising Middle Eastern investment in Africa’s mineral sector. Experts, including Melissa Sanderson, Jack Lifton, and Russell Fryer, explored its strategic significance for the global market and supply chain. The impact on American firms and competition with China in Africa were key topics. The session also examined the broader implications of such investments, as illustrated by Robert Friedland’s company’s Middle Eastern funding. The panel weighed the financial benefits against long-term strategic, economic, and geopolitical challenges, offering insight into the complex dynamics of global critical minerals investment.

Defense Metals Signs MOU with Ucore to Ship Rare Earth Carbonate to RapidSX™ Facility in Ontario (January 9, 2024, Source) — Defense Metals Corp. (TSXV: DEFN | OTCQB: DFMTF) and Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF) have agreed on a Memorandum of Understanding (MOU) to forge a North American rare earth element (REE) supply chain. Under this MOU, Defense Metals will send a rare earth carbonate sample from its Wicheeda REE project in British Columbia to Ucore’s RapidSX™ facility in Ontario for processing. This initiative is a critical step in establishing a Western REE supply chain, responding to the growing demand for REE feedstock. The collaboration, featuring Defense Metals’ strategically located Wicheeda project and Ucore’s innovative RapidSX™ technology, aims to evaluate joint venture possibilities. This partnership aligns with Ucore’s broader strategy, including the development of a commercial REE processing plant in Louisiana, supported by the US Department of Defense and the Canadian Government.

Investor.News Critical Minerals Media Coverage:

• January 12, 2024 – Will the magnet rare earths prices rise in 2024? https://bit.ly/48Q1C6f
• January 9, 2024 – Defense Metals Signs MOU with Ucore to Ship Rare Earth Carbonate to RapidSX™ Facility in Ontario https://bit.ly/4aIQH05
• January 7, 2024 – Unveiling Hallgarten & Company’s Latest Insight: Model Resources Portfolio: Peak Climate Hysteria https://bit.ly/48raH5E

Investor.News Critical Minerals Videos:

• January 16, 2024 – Jeff Killeen on PDAC 2024: Shaping the Future of Critical Minerals and Mining https://bit.ly/3TYprop
• January 10, 2024 – CMI Masterclass: The Middle East’s Escalating Investment Interest in Africa’s Critical Minerals https://bit.ly/3HnUQZL

Critical Minerals IN8.Pro Member News Releases:

• January 19, 2024 – Power Nickel Commences 2024 Drill Program https://bit.ly/3vF8yot
• January 19, 2024 – Zentek Announces Eric Wallman Appointed as Chairman of the Board https://bit.ly/3u2y0nx
• January 17, 2024 – Defense Metals Announces McLeod Lake Indian Band Co-Design Agreement and Partnership Investment https://bit.ly/48UduUX
• January 16, 2024 – Fathom Announces Commencement of Exploration at Albert Lake Project and Selection for Participation at AME Roundup Core Shack https://bit.ly/3tJGujq
• January 16, 2024 – Appia Reports 92,758 ppm (9.3%) TREO, 13,798 ppm MREO (1.38%) and 2,241 (.24%) ppm HREO over 2m Within the Total Weighted Average of 38,655 ppm (3.87%) TREO, 6,869 ppm (.69%) MREO, and 1,380 ppm (.14%) HREO Across 24m (EOH) Following the Reanalysis of Over-Limit Assay Results from PCH-RC-063 at the PCH Ionic Adsorption Clay Project in Goias, Brazil https://bit.ly/48MrNuQ
• January 16, 2024 – F3 Announces Intention to Spin-Out F4 Uranium Corp. https://bit.ly/3Hm37NV
• January 15, 2024 – Panther Metals PLC – Fulcrum Metals: Update on Saskatchewan Uranium Projects https://bit.ly/423pmlh
• January 15, 2024 – Appia Announces Significant Geochemical Critical REE Assay Results at Alces Lake Project, Saskatchewan, Canada https://bit.ly/3HlFLbc
• January 12, 2024 – F3 Grants Options https://bit.ly/3vCzYvi
• January 12, 2024 – Ucore Invited to Present at National Defense Industry Association Event https://bit.ly/3TZ7giq
• January 11, 2024 – Panther Metals PLC: Graphite Discovery Grows Significantly at Obonga https://bit.ly/3SeTjvc
• January 11, 2024 – Ucore Makes Announcement Regarding Convertible Debentures https://bit.ly/4aQ3de5
• January 11, 2024 – Appia Receives Approval for 12 Additional Claim Blocks at Its PCH Rare Earths Ionic Adsorption Clay Project, Goias, Brazil https://bit.ly/3O0yzFc
• January 11, 2024 – Nano One Announces Carlo Valente as CFO https://bit.ly/3RSkpaf
• January 9, 2024 – Auxico Announces Results of a 2023 Sampling Campaign on the Minastyc Property https://bit.ly/47w158C
• January 9, 2024 – Critical Metals PLC Notice of AGM / Board Changes and Extension of Warrant Term https://bit.ly/3TSV2rB
• January 9, 2024 – Imperial Welcomes Guy Bourassa as CEO New Appointment Adds Depth to the Management Team https://bit.ly/48r6C1l
• January 9, 2024 – Power Nickel Raises $2,180,000, Outlines 2024 Plans https://bit.ly/41Pr4qe
• January 9, 2024 – Defense Metals to Ship Wicheeda Mixed Rare Earth Carbonate Sample to Ucore Rare Metals Inc. https://bit.ly/3RNhWhn
• January 8, 2024 – Sage Potash Secures Permit Approvals for Exploration Program at Sage Plain Potash Project https://bit.ly/3H9x9En
• January 8, 2024 – F3 Mobilizes to Drill A1 and B1 at PLN https://bit.ly/3TPP0Yw
• January 8, 2024 – Critical Metals PLC Placing https://bit.ly/3NPxiRm

OPEC’s Response to IEA’s Climate Assertions

OPEC Secretary-General Haitham Al Ghais recently voiced concerns over the International Energy Agency (IEA)’s portrayal of the fossil fuel industry. Reacting to an IEA report, Al Ghais criticized the agency for presenting a dichotomous choice for the oil and gas sector: either contribute to the climate crisis or shift towards renewable energy. He contends that this perspective neglects critical factors such as energy security and the affordability of energy.

This ongoing disagreement between OPEC and the IEA has deep roots, often surfacing in debates over oil demand projections and investment strategies in hydrocarbon development. The current discourse gains added significance with the United Arab Emirates, a key OPEC player, set to host the pivotal COP28 UN Climate Change summit.

Contrasting Outlooks: IEA’s Predictions vs. OPEC’s Concerns

The IEA anticipates a peak in fossil fuel demand by 2030, attributing this to the increasing adoption of electric vehicles and China’s gradual shift to greener energy sources. OPEC, predominantly influenced by Saudi Arabia, challenges this outlook. The organization warns that such predictions, advocating for reduced investments in oil and gas, might undermine global energy security.

Furthermore, the IEA’s skepticism towards the efficacy of carbon capture technologies in achieving climate goals has added another layer to the debate.

The UAE’s Balanced Stance in Climate Discussions

As the host of COP28, the UAE, along with other Gulf nations, is pushing for a pragmatic approach to energy transition. This approach involves maintaining the role of fossil fuels while steadily moving towards decarbonization. Al Ghais has specifically critiqued the IEA’s dismissal of carbon capture and storage (CCUS) solutions, underscoring their potential as highlighted in UN climate change reports.

Scrutiny Over the UAE’s Role in COP28

Recent investigations by the BBC and the Centre for Climate Reporting, based on leaked documents, indicate that the UAE might have been planning to negotiate natural gas deals prior to COP28. These documents, allegedly prepared for COP28 president-designate Sultan Al Jaber, seem to align with ADNOC’s LNG and petrochemical interests, as well as Masdar’s renewable energy projects.

While a COP28 spokesperson has refuted the accuracy of these documents, the revelation has sparked discussions about Dr. Jaber’s ability to impartially steer the climate summit, given his simultaneous leadership at ADNOC.

Seeking Harmony Amidst Divergent Views

The contrasting positions of OPEC and the IEA, combined with the UAE’s reported pre-COP28 strategies, reflect the intricate dynamics at play in global energy and climate policy. As the world focuses on the outcomes of the COP28 climate summit, the key challenge lies in bridging the gap between the urgent need for environmental action and the practicalities of energy demand and economic considerations.

The Democratic Republic of Congo (DRC) is rapidly emerging as a focal point for global entities eager to obtain crucial metals pivotal for green technologies. This surge in interest has placed both the United States and the mining giant, Glencore PLC (LSE: GLEN | OTC: GLCNF | HK: 805), at the forefront of news, particularly regarding their expanding interests in the DRC.

Recent reports from Reuters reveal advanced talks between the United States and Saudi Arabia to secure metals from Africa for their green energy transitions. Concurrently, the UAE has penned a $1.5 billion agreement with the DRC to mine and process critical materials. This raises significant queries: Is Saudi Arabia charting a similar trajectory? How will these accords impact the region’s fragile power infrastructure? Moreover, given the proposed framework allowing U.S. companies to purchase a part of Saudi’s yield, what might be the potential cost for U.S. entities? This arrangement, echoing the prevalent market control where U.S. miners and manufacturers are tethered to China’s market hegemony, prompts the contemplation: Is the U.S. merely substituting China with Saudi Arabia?

In a parallel move, the Financial Times has shed light on Glencore’s ambitions in the DRC. The corporation’s strategy is to fortify its stance in the electric vehicle battery domain by bolstering its investments in the African country. Their alliance with the Toronto-listed Tantalex Lithium Resources Corp. (CSE: TTX | OTCQB: TTLXF) for a lithium mining project epitomizes this vision. Nevertheless, Glencore’s African endeavors have not been without their share of scandals. In the previous year, they acknowledged bribery practices across the continent, culminating in a sizable $180 million settlement with the DRC. Probes into their DRC activities persist.

Critical Minerals Institute (CMI) Director and DRC expert Melissa “Mel” Sanderson’s discernment provides a deeper layer of scrutiny to these advancements. She underscores the ethical paradox in the U.S.’s methodology — a predisposition for mining in regions with more lenient ESG standards, while overlooking potential ventures domestically under more rigorous norms. She perceives this as a manifestation of an “out of sight, out of mind” philosophy.

Enriching the discourse, CMI Co-Chair Jack Lifton remarked, “I am deeply acquainted with this scenario. The American public remains oblivious to the fact that the lithium will be claimed by the highest bidder, not necessarily the most ethical. The Chinese had collaborated with an Australian firm that forfeited the concession due to alleged “corruption.” It’s plausible that they will, if not already, synergize with Glencore concerning expenses. Being Swiss, Glencore isn’t bound by loyalty to the EU or the USA. It’s widely recollected that an African leader observed, ‘While Americans offer promises, the Chinese construct airports.’ The U.S. and its industries are channeling funds into ‘domestic’ ventures from finite or economically precarious sources, providing fertile ground for unscrupulous practices.”

In today’s interconnected age, cultivating global alliances is undeniably pivotal. Yet, the overarching strategic, ethical, and environmental repercussions of these engagements demand unwavering attention. As the global compass aligns with sustainability, it becomes imperative for entities like the U.S. government and Glencore to holistically evaluate the broader socio-political and environmental consequences inherent in their decisions. Reflecting upon this might hint that ethical, sustainable, and dependable alternatives may be more accessible than they presume. For more information on the CMI, click here