Post #503

Allies: Collateral Damage of American Expansion🇺🇸 U.S. President’s plans to displace China have unexpectedly materialized in the form of a proposed American consortium purchase of a stake in the DRC’s copper-cobalt mines. 🤨 There’s just one problem: to save supplies from Beijing’s influence, Washington for some reason needs to buy assets from the Swiss company Glencore. For reference, the deal details: ⏩ Parties: Swiss company Glencore and the American Orion Critical Mineral Consortium, established by the US International Development Finance Corporation (DFC) and Abu Dhabi-based investment firm ADQ. ⏩ Essence: Orion’s acquisition of a 40% stake in Mutanda Mining and Kamoto Copper Company, both in southern DRC, for $9 billion. ⏩ Status: A memorandum of understanding has been signed, meaning there are no legal obligations yet. In essence, purchasing a significant stake in a Swiss company’s assets will strengthen the US position in the minerals market—but not by displacing China, rather bydisplacing its own partners, whose supplies were already reliable without spending $9 billion. ❌ The US’s main misstep in this direction is its inability to engage private firms who could open up new assets for Washington. The state-backed Orion can buy someone else’s mines, but the Chinese are unlikely to sell anything, while such a brand-new government-backed investor without experience will suffer to build any new mines or plants. ➡️ Stay informed - @devilsbelow