America on a War Footing: Implications as US | Australian Markets

What do Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal all have in common?

They’re all international locations situated alongside Africa’s West Coast.

But they’re additionally small; collectively, these 5 international locations have an insignificant GDP of round $75 billion.

However, the leaders of these 5 international locations had been simply given a particular one-on-one invitation to fulfill with US President Donald Trump final week.

This privilege hasn’t been prolonged to many of the world’s main economies, together with US allies like Australia.

So, what’s going on?

The US President is a busy man.

He sits within the center of a world tariff battle, is making an attempt to barter peace in Ukraine and Gaza, managing an escalating Iran-Israeli battle, all whereas attempting to handle the break-up of one of his closest political buddies, Elon Musk!

Surely Trump has higher issues to do than meet with a bunch of leaders from a place he in all probability couldn’t put on a map!

Mining Memo’s Take

As with every little thing US strategy-related nowadays, I’ve no doubt that this occasion is rooted in mineral security.

Trump needs entry to the small bounty held within these little West African nations. But I feel there’s far more to it than this.

You see, every of these FIVE international locations sits alongside the African West Coast, the Atlantic Ocean.

As you’ll be able to see, beneath, that is America’s direct reference to Africa:

So, whereas there’s maybe some mineral significance amongst this group of nations, I imagine this has more to do with geography; their place alongside the Atlantic Coast.

Africa’s main mineral wealth lies someplace within the center…

A area that hosts the world’s highest grade copper mines, however continues to be vastly underexplored.

It’s known as the Central African Copper Belt and runs via the DRC and Zambia. I as soon as labored there as an exploration geologist!

And I imagine proper now, America is doing all it might to secure protected passage for the uncooked supplies that sit in Africa’s deep coronary heart.

In reality, the US has already invested billions in upgrading ports and railway traces in Angola, one other African nation on Africa’s West coast.

Last week, I detailed the strategic significance of this transfer to my paid readership group at Diggers & Drillers.

America helps to revive a main railway hall linking Central African mines to Angola’s ports.

And this important US strategy crosses each side of the political divide… Republicans and Democrats.

Last yr, former President Joe Biden grew to become the primary US chief (ever) to go to this backwater African nation. Such was its significance.

Something’s taking place between Africa and the US… And no one’s paying consideration.

I imagine it’s rooted in securing America’s provide of uncooked supplies.

And gaining protected and secure entry throughout the Atlantic Ocean.

Why is that important?

Sun Tzu states in The Art of War: “Be where your enemy is not.”

And that is likely to be the purpose right here…

With a direct hyperlink throughout the Atlantic Ocean, the US can secure the protected passage of Africa’s mineral wealth.

That’s what it wants in an period of world trade fragmentation or a main battle.

We dwell in a period of uncertainty, and secure provide chains of uncooked supplies are the important ingredient holding economies functioning.

So, are you able to revenue from America’s Pivot into Africa?

As a former geo, I’ve spent loads of time in Africa.

Most of that was within the Central African Copper Belt, which is a key half of what I imagine is the core of America’s mineral strategy.

I’ve seen (first-hand) the initiatives that may benefit as the US authorities invests billions in securing its footprint on this half of the world.

It’s set to construct railways, highways, processing services, and ports.

So, is there an investment angle right here?

Well, mining corporations usually should foot the price of infrastructure themselves…

Moving uncooked ore from the mine to world markets is a important half of their capex build-out.

But given America’s nervousness over mineral provide, the US taxpayer may quickly cowl a lot of that value!

Making it simpler (and cheaper) for miners to get their uncooked materials onto the market.

That means larger revenue margins for the worldwide producers developing or actively mining within the Central African Copper Belt.

And I’ve uncovered one of these corporations.

A company that stands to benefit enormously as the US pivots into Africa.

You can get the identify of that company, plus a number of others that may benefit from heightened mineral insecurity, right here.

Until subsequent time, take care.

Regards,

James Cooper,
Editor, Mining: Phase One and Diggers and Drillers

All advice is basic advice and has not taken into consideration your personal circumstances.

Please search unbiased financial advice relating to your own scenario, or if unsure in regards to the suitability of an investment.