How a railway line could reshape the copper market

Never has the resources industry felt more globalised, something which offers both its opportunities and drawbacks.

Those participating in the mining supply chain must be more strategic with their positioning, and they must be more competitive to ensure they get a slice of the investment pie.

Countries across the world are trying to shore up their pathway to raw materials and the downstream steps that come with the commercialisation of a product. This is central the development of the renewable energy technologies that will underpin the clean-energy transition and nations’ economic interests.

Then there’s the ex-China overlay, with Western jurisdictions eager to establish supply chains independent of the Asian superpower to limit the country’s global dominance.

Australia is being seen as a key supplier of the world’s critical minerals; however, developments are occurring with Australian allies that the local industry should be aware of.

This includes the United States’ focus on Africa and the country’s move to unlock the central African copper belt, said to be the world’s largest sediment-hosted copper province.

The Lobito Corridor Railway looms as a key asset in this pursuit. The railway currently links the city of Kolwezi in the Democratic Republic of Congo (DRC) with the port of Lobito, on the Atlantic coast of Angola.

The US wants to establish a ‘Trans-Africa Corridor’ that extends right across the continent, connecting Atlantic and Indian Oceans.

US Acting Special Coordinator for the Partnership for Global Infrastructure and Investment (PGI), Helaina Matza, recently visited the DRC and Tanzania to endorse the strategy.

“Our mission on this trip is to continue expanding the Trans-Africa Corridor,” Matza said.

“That includes relaunching our partnership with the DRC and engaging with the Tanzanian Government and private sector on next steps towards extending the economic corridor to the Indian Ocean.”

The US’ planned Trans-Africa Corridor is seen as an alternative to China’s Belt and Road Initiative, which looks to build new trade routes that connect China with the rest of the world.

In reality, it’s likely a move from the US to supplant some of China’s dominance in Africa, where the nation has a grip on most of the DRC’s cobalt mines alongside much of the continent’s lithium production.

Benchmark Mineral Intelligence explained the significance of the Lobito Corridor Railway.

“By creating the infrastructure necessary to address the current logistical bottlenecks and attract private investment, the Lobito Corridor project is designed to facilitate the development of an industrial cluster in the African copper belt,” Benchmark principal policy analyst Bryan Bille said.

“The plans bode well for the DRC and Zambia’s ambitions of value-adding their critical mineral resources to create an EV ecosystem in the region.”