African Mines Gain Access to US Capital as Investors Seek Ownership Stakes

The US International Development Finance Corporation (DFC) is preparing more direct equity investments in African mineral projects, where it already has over $3 billion in critical-mineral commitments.

On October 9, DFC’s Africa regional managing director, Vibhuti Jain, said several equity investments were in the pipeline as the agency expands beyond loans, guarantees and political-risk insurance.

Legislation signed in December 2025 raised DFC’s global investment ceiling from $60 billion to $205 billion, established a $5 billion revolving equity fund and increased its permitted minority ownership stake to 40%.

The changes give the agency greater capacity to invest directly in companies and projects worldwide, including African mining operations.

DFC also completed a $600 million investment in the $1.8 billion Orion Critical Mineral Consortium in January 2026.

The consortium can provide debt and equity financing and negotiate agreements tied to future mineral production, giving African developers access to US-backed capital through arrangements that may involve ownership stakes and mineral sales rights.

African Mining Projects Gain Funding While Major Capital Gaps Remain

DFC has committed project-development support to Pensana for testing associated with its Longonjo rare-earth project in Angola. The funding covers preparatory work as the developer seeks additional capital to complete construction.

Pensana reported on October 26 that Longonjo was 30% complete, with more than 60% of procurement committed.

The company was negotiating $75 million to $90 million in equity for its operating subsidiary, while Cascade had provided $15 million of a previously announced $165 million commitment.

Commissioning is now targeted for early 2028, followed by full production later that year.

DFC is also pursuing changes to existing mining finance arrangements. In March, it proposed converting part of its Balama graphite loan into shares in Syrah Resources, with the remaining balance becoming a convertible loan note.

Additional operating capital formed part of the proposal, which DFC expected to attract private investment exceeding five times its new contribution.

The Syrah proposal remained non-binding and subject to approvals. If completed, the restructuring would replace part of DFC’s lending exposure with an ownership interest, introducing potential shareholder dilution alongside additional financing.

US-Backed Mineral Deal Targets Ownership and Copper Supply

Glencore’s proposed transaction with the Orion Critical Mineral Consortium would give the US-backed investor an interest in two major copper and cobalt operations in the Democratic Republic of Congo, alongside rights over part of their production.

Under a non-binding agreement announced in February, Orion CMC would acquire 40% of Glencore’s interests in Mutanda Mining and Kamoto Copper Company.

The proposal values the two businesses at approximately $9 billion on a combined enterprise-value basis, rather than setting that amount as the price of Orion’s proposed stake.

Glencore would retain operational management, while Orion CMC would have rights to appoint non-executive directors and direct sales of its relevant share of production to nominated buyers. The transaction remains subject to due diligence, binding agreements and regulatory approvals.

Mutanda and Kamoto produced a combined 247,800 tonnes of copper and 33,500 tonnes of cobalt in 2025. The proposed acquisition would give Orion CMC exposure to existing production, with the associated marketing rights extending its involvement beyond share ownership.

Pensana Seeks Long-Term Mineral Buyers to Secure Project Loans

Pensana is negotiating supply agreements for its Longonjo rare-earth project in Angola as it seeks debt financing involving ABSA and the US Export-Import Bank. In September, the company said it intended to sign agreements with major buyers to support the proposed facilities.

The International Energy Agency identifies offtake agreements as a financing tool for mineral developers, allowing prospective lenders to assess demand for production before a mine begins operating.

Pensana has not disclosed agreed purchase volumes, prices or contract duration, leaving the proposed sales arrangements subject to negotiation.

Export restrictions present another consideration for lenders and buyers. OECD data show that restrictions affected 16% of global trade in critical raw materials during 2022–2024, including 47% of natural graphite trade and 45% of rare-earth trade.

Changes to export rules could affect the delivery of minerals covered by long-term supply agreements.

Production costs also remain exposed to energy prices. The World Bank reported that its energy price index increased 25.7% in September, compared with a 0.4% increase in its metals price index.

Long-term sales commitments may support financing negotiations, but the economics of supplying those contracts remain sensitive to operating costs.

US Mineral Financing Faces Its Next Test in Disbursements

Syrah Resources said on October 26 that it expected a further $15 million from the US International Development Finance Corporation before the end of the month to support operations at Mozambique’s Balama graphite mine.

The payment would bring total disbursements under the financing arrangement to $83 million.

The advance followed a temporary waiver of existing loan defaults. Its terms included interest of 6% above DFC’s cost of funds, a 1% advance fee and warrants covering approximately 5.4 million Syrah shares. Further disbursements were not assured.

The additional funding would provide Balama with working capital while increasing Syrah’s financing obligations. The warrants also create potential dilution for existing shareholders if exercised under their terms.

The next developments will be whether Syrah receives the expected payment, Pensana secures its outstanding capital and the proposed Orion transaction proceeds to binding agreements.

Those outcomes will establish how much of the announced US-backed financing reaches African mining operations and what financial or ownership commitments developers accept to obtain it.