The authorities of the Republic of South Africa rejected the initiative to grant the United States privileged access to deposits of rare earth metals and other strategic minerals.
Gwede Mantashe, South Africa’s Minister of Mineral and Petroleum Resources, said: “We do not want a strategy of supplying critical minerals exclusively to the United States. We need a comprehensive strategy aimed at developing the mining industry in the interests of all market players.”
Reasons for South Africa’s refusal
• The South African government has decided not to create exclusive conditions for the United States, so as not to harm national and other international companies operating in the industry.
• A number of large South African companies had previously proposed granting special status to American partners, but the relevant agency pointed out that such preferences were unacceptable in order to support healthy competition.
Global competition for strategic metals
• Against the backdrop of trade wars and the global energy transition, the world’s largest economies are trying to secure access to key resources: lithium, rare earths, uranium, and titanium.
• South Africa holds a leading position in platinum metals, chromium, and manganese reserves and is actively expanding exports of these resources, but chooses partners on an equal basis.
The industry is on the move
• Brazil is negotiating with Russia’s Techsnabexport (a subsidiary of Rosatom State Corporation) on the joint development of uranium and lithium deposits. Such cooperation will allow the republic to strengthen its strategic independence and expand its domestic mining industry.
• Ukraine and the United States have not yet implemented plans for joint lithium production: the loss of access to the Shevchenko deposit and the aggravation of the political situation make the prospects for the deal extremely uncertain. The heads of American companies declare the risk of disruption of the agreements.
Importance for subsurface use
• South Africa’s decision confirmed the trend towards strengthening national control over strategic mineral assets and abandoning unilateral agreements with major powers.
• Investors and mining companies are looking for new destinations in Latin America, Africa and Eurasia to minimize risks and ensure long-term supply of raw materials for high-tech sectors.