A state-backed Saudi venture is looking at buying stakes in mining assets worth US$15 billion in Namibia, among other African countries such as the Democratic Republic of Congo and Guinea, the Wall Street Journal has reported.
The development will permit US companies to have rights to buy some of the production according to reports.
This comes as the United States and Saudi Arabia are in talks to secure metals in Africa needed to help them with their energy transitions, the publication reported, citing people with knowledge of the talks.
The US is in a race to catch up with China for supplies of cobalt, lithium and other metals that are used in electric car batteries, laptops and smartphones.
In a similar arrangement in July, Saudi Arabian Mining Co (Ma’aden) and the Saudi Public Investment Fund (PIF) acquired 10% of Brazilian Vale’s base metal unit, while US investment firm Engine No. 1 acquired 3%.
The Wall Street Journal said the PIF approached Congo in June about investing in cobalt, copper and tantalum in the country via its US$3 billion joint venture with Ma’aden called Manara Minerals.
Manara is also focusing on iron ore, nickel and lithium.
The White House is seeking the financial backing of other sovereign-wealth funds in the region, but talks with Saudi Arabia have progressed the farthest, the Journal added.
The Saudi government and the White House did not immediately respond to a request for comment.
