Africa

A lengthy piece in the Asia Times online edition discusses China’s ever-increasing footprint in Africa, arguing that this manifestation of China replacing the West as the “dominant economic and political force in Africa epitomizes the most dramatic shift in geopolitics since the collapse of the Soviet Union.”

In its global quest for mineral resources, China has overtaken the United States as Africa’s main trading partner, with trade and investment having grown by a whopping 1,000% between 2000 and 2010.  Recent agreements include multi-billion deals with Angola, Ghana, and the DRC, providing China with access to oil and critical non-fuel mineral resources.  A number of countries other than China, among them India, Brazil, Russia and Turkey as well as several Persian Gulf states, have realized the continent’s potential and are investing heavily in Africa.

With the continent harboring 40% of the world’s gold and more than 85% of its platinum and chromium, as well as vast reserves of vanadium, cobalt, diamonds, chrome and iron ore, not to mention its yet-to-be discovered resources, expect Africa to play an increasing role in future mineral supply scenarios.  Hopefully, the U.S. can determine what its own role will be soon – the rest of the world won’t wait for us as they look to meet their critical mineral needs.

In what may become the most expensive diversified minerals takeover to-date, China and Brazil appear set to engage in a strategic battle over copper deposits in Africa, according to Bloomberg.  In line with China’s recent efforts to enlarge its footprint in Africa in its quest for natural resources, China’s Jinchuan Group is considering countering Rio de Janeiro-based Vale’s bid for South African company Metorex, which owns copper and cobalt mines in the Democratic Republic of Congo and Zambia.

The news comes as no surprise as both China and Brazil are known to have what one analyst calls “voracious appetites” for mining. It does, however, beg the question how the United States fits into the looming global showdown over strategic mineral resources. While the U.S. is only now beginning the overdue reassessment of its own mineral policies, resource-hungry nations like China and Brazil are already off to the races. It is time for U.S. policy makers to recognize this dangerous strategic disadvantage, and to act accordingly.

In yet another indication that a global race for resources is in full swing, this opinion piece carried by the Russian news agency Ria Novosti suggests that Russia, a generally resource-rich country, should rethink its long-held position that prospecting for minerals outside its own territory is not necessary.  According to the author, Africa, another area [...]