Featured Summary:
- U.S.-backed railway upgrades could reduce mineral transport costs along the Lobito Corridor by up to 30%
- Power shortages are raising African mining costs, driving investment in electricity generation and grid upgrades
- Washington is supporting plans for copper and cobalt processing in Congo, where new refineries face financing and supply challenges
- American funding is advancing mineral infrastructure projects, but major construction investments remain dependent on further financing
The United States is financing upgrades to Angola’s Lobito railway and supporting plans for electricity generation and mineral processing in Congo and Zambia.
The investments target infrastructure serving some of Africa’s largest copper and cobalt operations as Washington seeks alternatives to China’s dominance in critical mineral processing.
On September 22, the U.S. Trade and Development Agency announced funding for a study of hydropower and electricity network upgrades along the Lobito Corridor.
The proposed improvements would supply mining operations and nearby communities with more than three million residents.
A separate agreement signed the following day will support early planning for a copper and cobalt refinery in Congo’s Lualaba Province.
The U.S. International Development Finance Corporation is also providing $553 million for the Lobito railway, which carries minerals from Congo toward Angola’s Atlantic coast.
The railway financing has been secured, but the electricity and refinery proposals have yet to advance beyond technical studies. Their construction costs and funding arrangements remain unresolved.
Power Shortages Add to African Copper Mining Costs
Buying replacement electricity added about 12 US cents per pound to First Quantum Minerals’ copper cash costs in Zambia in 2025. The company expects to continue purchasing alternative power through mid-2027 while the country’s hydropower supply recovers.
Imports and local independent producers met roughly 80% of First Quantum’s Zambian electricity requirements in the second quarter of 2026. State utility ZESCO supplied the balance.
The company reported no significant production losses from power shortages during the quarter and plans to begin installing grid-stabilisation equipment at Kansanshi in early 2027.
Ivanhoe Mines has commissioned a solar and battery facility at its Kamoa-Kakula copper complex in Congo. The installation began operating at full capacity in September, supplying 60 megawatts around the clock.
Ivanhoe reported on October 8 that diesel generator consumption had fallen 40%.
CrossBoundary Energy and Green World Energie financed the facility and sell its electricity to the mine under power purchase agreements. They also own and operate the installation.
Additional contracts are expected to increase continuous supply to 120 megawatts within 18 months.
Lobito Corridor Puts Mineral Export Costs in Focus
A $753 million financing package for Angola’s Lobito railway reached financial close on July 3, Africa Finance Corporation said. The U.S. International Development Finance Corporation is providing $553 million, with $200 million from the Development Bank of Southern Africa.
The funding will support upgrades and operations along the 1,300-kilometre line between the Atlantic port and Congo’s border.
The adviser estimates that the investment could cut critical mineral transport costs by 30% and increase annual freight capacity to approximately 4.6 million tonnes.
Shipments are growing. Lobito Atlantic Railway recorded copper exports of 17,856 tonnes in July, its highest monthly volume, after carrying its first cobalt consignment from Congo in April.
On February 19, Trafigura announced its first sale of copper anodes from Kamoa Copper to Aurubis for further refining in Europe. The cargo was awaiting departure from a dry port in Kolwezi. The trader estimated the inland rail journey to the coast at seven days.
The anodes were smelted in Congo before sale. Washington’s separate support for a proposed refinery in Lualaba concerns an earlier-stage project: technical studies and financing still have to precede construction.
US-Backed Congo Refinery Faces China’s Copper Processing Dominance
China produced an estimated 14 million tonnes of refined copper in 2025, nearly half of global output of 29 million tonnes. Its expansion in copper smelting has increased competition for concentrate supplies, raising the cost of securing raw materials for some processors.
The International Energy Agency reported that benchmark copper concentrate treatment charges fell to zero dollars per tonne in 2026.
Smelters receive these fees for processing concentrate, and the decline has squeezed an important source of revenue as processing capacity outpaces available supplies.
Middle Eastern supply disruptions have added pressure elsewhere in the industry. The region accounts for roughly one-quarter of global sulphur production, with about half of seaborne trade passing through the Strait of Hormuz.
The IEA reported that sulphuric acid costs exceeded energy expenses at some mineral-processing operations during 2026.
Buenassa has not disclosed the feedstock sources or processing technology for its proposed refinery. Its exposure to concentrate shortages and sulphuric acid prices therefore remains uncertain.
America’s Mineral Race Confronts Africa’s Infrastructure Deficit
An estimated 560 million people in sub-Saharan Africa lacked access to electricity in 2024, according to the World Bank. The bank and the African Development Bank have launched Mission 300 to connect 300 million people by 2030.
Reliable power remains unavailable to millions of households and businesses in countries supplying minerals to international markets.
The African Development Bank estimates that the continent requires $130 billion to $170 billion annually for infrastructure, leaving a financing gap of $68 billion to $108 billion.
International interest in critical minerals has increased, with the International Energy Agency reporting approximately $65 billion in commitments from advanced economies in 2025. Disbursements have not kept pace with the announced funding.
US investment in African mining corridors could help improve electricity supply and transport links in mineral-producing regions.
The question for African governments is how much of that infrastructure will also serve local manufacturers, businesses and communities.
Washington’s effort to secure critical minerals will continue alongside Africa’s demand for electricity, railways and industrial capacity.
The terms of future financing agreements, particularly access to power and transport infrastructure outside mining operations, will determine how widely the benefits are distributed.
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