THE US and South Africa have begun preliminary discussions on potential resource deals spanning mining, investment and infrastructure, said the Financial Times on Friday.
The discussions could signal an easing of tensions between the two countries following a period of sharp diplomatic friction, the newspaper added.
About 25 officials from both sides convened in Johannesburg on Wednesday to explore minerals co-operation in what was described as the highest-level bilateral meeting of the year. The talks, still at an early stage, aimed to identify projects that could benefit from US involvement, said the Financial Times citing people at the meeting.
Relations between the two countries have been strained since President Donald Trump returned to office, with the administration cutting foreign aid to South Africa, announcing plans to resettle Afrikaner refugees and expelling the South African ambassador to Washington. The US also boycotted South Africa’s G20 presidency last November.
However, Washington’s drive to reduce China’s dominance of critical minerals supply chains has created commercial common ground, said the Financial Times.
South Africa is a major producer of platinum group metals, chromium, manganese and vanadium, and holds significant smelting capacity — another sector in which China currently holds sway.
Wednesday’s meeting was attended by US Ambassador Leo Brent Bozell III, two South African deputy ministers, government officials from both countries and around 20 mining and banking executives. American representatives included officials from the Treasury, state, commerce, defence and energy departments, as well as the US Export-Import Bank and the Development Finance Corporation.
One attendee said a priority project list was being developed. The Phalaborwa rare earths mine, owned by Rainbow Rare Earths and backed by US government-linked investor Techmet, was cited as a candidate. Potential US investment in South Africa’s logistics infrastructure, a longstanding constraint on industrial development, was also raised.
The forum, convened by Washington think-tank the Centre for Strategic and International Studies, first met in the US in March. Officials cautioned that any formal agreement remained some way off, though recent statements from both governments pointed to warming commercial ties.
