US Advances $500M for African Minerals Railway Project

The African Minerals Railway Project is set to receive $500 million in US financing to transport key minerals from central Africa to Angola’s Atlantic coast. This is reported by the railway transport news portal Railway Supply.

The U.S. International Development Finance Corporation (DFC) is finalizing this investment to fund the Lobito Corridor, which will carry copper, cobalt, and lithium from the Copperbelt to a port in Angola. DFC’s Head of Investments, Conor Coleman, confirmed during the U.S.-Africa Business Summit in Luanda that negotiations with Angola’s government and Trafigura Group are progressing.

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He emphasized that DFC remains fully engaged and determined to deliver the African Minerals Railway Project. Although plans began in 2023, Coleman declined to explain the delay, noting it was unrelated to changes in U.S. policy under the Trump administration.

DFC operations continue without disruption, and Coleman highlighted the agency’s growing focus on critical minerals, infrastructure, and energy across Africa. The agency also awarded a $3.4 million technical grant to Pensana Plc’s rare-earth project in Angola and is discussing financing for Carrinho Group’s agro-processing facility.

Angola’s Minister of State for Economic Coordination, Jose de Lima Massano, explained that delays stem from contract clauses, particularly investor guarantees. He stressed the importance of creating secure conditions for private investors.

DRC Seeks Link to African Minerals Railway Project

Neighboring Democratic Republic of Congo is urging DFC to support the rehabilitation of its railway near Kolwezi, a region rich in cobalt and copper.

Congolese Transport Minister Jean-Pierre Bemba revealed ongoing talks with the EU and European Investment Bank to build the line through a public-private partnership. Congo plans to launch construction tenders by November, aiming to complete the railway within three years.

Diversification Strategy Behind African Minerals Railway Project

Congo, the top global cobalt supplier and second-largest copper producer, also holds vast lithium reserves. The railway corridor could become a key export route.

While China still dominates mineral processing, Coleman believes it’s time to shift strategies. “There’s room for the U.S. and Africa to diversify,” he said. “Opportunity exists in being late.”

Source: au.finance.yahoo.com

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