The US has adopted a new strategy against China in its battle for Africa’s critical minerals

By Chinedu Okafor – Business Insider Africa

Offtake is the process through which a nation or business obtains the right to a portion of a mine’s production in return for funding or other assistance.

These mechanisms enable US corporations to assure long-term supplies while de-risking big mining projects, a strategy long used by Chinese state-linked enterprises across the continent.

A World Bank report in 2021, revealed that China controls almost 50% of DRC cobalt production, with 8 of the 14 largest cobalt miners in the DRC described as Chinese-owned (often via joint ventures).

The United States is moving toward offtake and other trading arrangements, like its agreement with Mercuria and its agreements with Congolese state miner Gécamines, in order to push output into value chains that are aligned with the United States and controlled by Chinese refiners, rather than putting American operators in high-risk nations.