Showing posts with label mining. Show all posts
Showing posts with label mining. Show all posts

Monday, 21 July 2025

Africa's Mineral Leverage Amid US Trade Policies

Africa's Mineral Leverage Amid US Trade Policies

Africa possesses substantial reserves of minerals critical to global industries, including the United States economy. During the Trump administration, Section 232 tariffs were imposed on steel and aluminium imports globally, impacting several African exporters such as South Africa. This raises the question: could African nations leverage their mineral exports to counter such US trade policies? A balanced analysis reveals significant complexity.

The Case for Potential Leverage:

- Criticality and Concentration: Minerals such as cobalt, platinum group metals (PGMs), and manganese are not only essential for advanced manufacturing (aerospace, defence, EVs, electronics) but also highly concentrated in specific African countries. The DRC dominates cobalt; South Africa dominates PGMs and chromite. This creates potential supply chokepoints.
- Limited Short-Term Substitutes: For many applications (eg, cobalt in specific battery chemistries, PGMs in catalysts), viable substitutes are either non-existent, significantly less efficient, or much more expensive in the near-to-medium term. Developing new sources takes years.
- Disruption Impact: Any significant disruption or deliberate restriction of these mineral flows could cause substantial price volatility and supply chain bottlenecks for US industries, potentially impacting economic growth and strategic sectors.

Significant Constraints on Leverage:

- Dispersed Interests: Africa is not a single actor. Mineral wealth is spread across numerous countries with differing political agendas, economic priorities, and relationships with the US. Achieving coordinated action across the continent on trade policy, especially targeting the US, is highly improbable. The African Continental Free Trade Area (AfCFTA) is nascent and focuses on intra-African trade.
- Mutual Dependence: Many African economies are heavily reliant on mineral export revenues. Restricting exports to the US (a major market) could inflict severe economic damage on the exporting countries themselves, potentially destabilising economies and governments. This creates a significant disincentive.
- US Mitigation Strategies: The US is acutely aware of these supply risks. Responses could include:
- Increased Domestic Production/Recycling: Incentivising mining within the US or allied nations (though challenging and slow).
- Stockpiling: Using the National Defense Stockpile.
- Allied Sourcing: Strengthening supply chains with friendly nations (e.g., Australia for some minerals).
- Technological Innovation: Accelerating research into alternative materials or battery chemistries (e.g., cobalt-free batteries).
- Financial/Political Pressure: Utilising tools like sanctions or leveraging international financial institutions.
- AGOA Factor: The African Growth and Opportunity Act (AGOA) grants many Sub-Saharan African countries preferential tariff access to the US market for non-mineral exports (textiles, agriculture, etc.). Threatening mineral exports could jeopardise these valuable benefits.
- Specificity of Tariffs: The Trump-era tariffs targeted specific products (steel, aluminium), not the raw minerals themselves. While tariffs hurt African aluminium exporters (like South Africa) processing bauxite, the primary bauxite producers (eg, Guinea) were less directly impacted. Leveraging unrelated minerals (like cobalt) against aluminium tariffs would be an indirect and legally/politically complex strategy.

A Balanced Perspective:

While Africa holds globally significant reserves of minerals critical to the US economy, the notion of the continent wielding this as a unified, effective bargaining chip against specific US tariffs like those imposed under Trump faces substantial hurdles.

The concentration of certain minerals provides theoretical leverage points. However, the fragmentation of African nations, their own deep economic dependence on mineral exports, the existence of mechanisms like AGOA, and the US's capacity to pursue mitigation strategies significantly weaken the practical ability to translate this mineral wealth into tangible trade concessions on unrelated tariffs.

Attempting aggressive leverage could easily backfire, harming African economies more than the US in the short-to-medium term, while accelerating US efforts to reduce dependence on African minerals in the long term – an outcome contrary to Africa's interests in sustained mineral revenue.

A More Pragmatic Path:

Rather than confrontation, the more viable strategy for African mineral-rich nations lies in:

- Value Addition: Processing minerals domestically before export (e.g., refining cobalt, manufacturing battery precursors) to capture more economic benefit and create jobs.
- Stable Investment Frameworks: Attracting responsible investment for exploration and mining through predictable, transparent regulations and reduced political risk.
- Strategic Partnerships: Negotiating mutually beneficial, long-term supply agreements with consumer nations and companies, potentially linked to infrastructure development or technology transfer, rather than reacting to specific tariffs.
- Intra-African Coordination (where possible): Collaborating on policies like environmental standards or local beneficiation goals to strengthen their collective position within global value chains.

Conclusion:

Africa's mineral wealth grants it inherent economic significance, particularly concerning specific critical minerals. However, translating this into leverage against US trade policies like the Trump tariffs is fraught with practical difficulties and significant risks for African economies. The path to maximising Africa's benefit from its resources more likely lies in internal development, value addition, and fostering stable, mutually beneficial partnerships, rather than in attempting short-term, high-stakes leverage that could undermine long-term economic stability and growth. The relationship remains one of complex interdependence, not one where Africa holds a simple, decisive upper hand.

https://bit.ly/46YDznQ

Monday, 27 September 2021

Colin-on-Cars - Mahindra adds range of special vehicles

Colin-on-Cars - Mahindra adds rannge of special vehicles

Mahindra South Africa is capitalising on its Durban assembly facilities by branching out with the PikUp into specialised markets and has launched options for the medical services, game viewing and mining sectors.

Based on the Mahindra Pik Up S6 Single Cab Chassis Cab, the new Pik Up Ambulance offers go-anywhere medical mobility for first responders and medical staff, especially in rural areas and to reach crisis sites through off road or through rubble and debris.





The new Pik Up Ambulance is converted with a double-walled and insulated ambulance cabin. These proven underpinnings and the support from Mahindra engineers mean that the model carries a full factory warranty and is available as either an S6 Single Cab 4x2 or S6 Single Cab 4x4.

While there are significant customisation options, the Pik Up Ambulance was created with feedback from medical professionals to ensure that it fits the broadest range of applications from the onset. The range of custom options are available directly from Mahindra and are also covered by comprehensive warranty support.

These requirements include an access ramp to enable the smooth transition of the patient from curb to cabin, with the roll and cot stretcher included in the package specifications. There is an additional spine board that is flush fitting and secured to the side.





The canopy itself is double-walled and insulated, with frosted laminated side windows and one-way windows in the rear. The floor is shock-proof and has been treated with a hard-wearing anti-skid coating.

Inside the ambulance cabin, Mahindra has fitted a range of medically approved equipment that is not only easy to reach and use but allows most customers to buy and use the ambulance without requiring additional customisation and certification.

The range of equipment includes an air conditioner linked to that of the driver cabin, a fresh water system with basin, oxygen tanks, an intercom, interior LED-lighting, a swivel rear spotlight and storage space that double up as a bench. This equipment, and the additional power points in the rear cabin, are powered from an additional battery system fitted in the engine bay.

Each Pik Up Ambulance also has a public address system with siren, a regulation set of red and orange emergency vehicle lights and a range of decals for each province and application.

The S6 also includes luxuries such as cruise control and air-conditioning fitted as standard. The standard Pik Up S6 has a ground clearance of 210 mm, with an approach angle of 34 degrees, a departure angle of 15 degrees and a breakover-angle of 18 degrees. The bakkie is certified to tow a braked trailer of up to 2 500 kg and it has a combined fuel consumption of 7,7 litres per 100 km.

Every Pik Up model offers dual front crash bags, anti-lock brakes with EBD, side-impact protection, and seatbelt reminders as standard.

Also standard, is the mHawk turbo-diesel engine with common-rail direct injection. This engine delivers 103 kW and 320 Nm.





The new S4 Mahindra Pik Up Game Viewer launches in South Africa with a full manufacturer warranty. The standard offering adds features normally required by game farms and tourist operators and is available with the choice of 4x2 and 4x4 drivetrains. In addition, a customised solution is available for specific client needs.

“With its breadth of talent as both a workhorse and a leisure vehicle, it is no surprise that the Pik Up has become such a popular bakkie in South Africa,” says Rajesh Gupta, CEO of Mahindra South Africa.

“We have been listening to our customers and, together with our manufacturing team, suppliers and industry partners have decided to expand the range with a series of locally developed and tested built-for-purpose models. There first of these is our new Game Viewer.”





Built on the S4 Single Cab platform with the input from game farms and tourist operators, the new Game Viewer has a 1 195 kg payload, a 3 040 mm wheelbase and 210 mm ground clearance. This makes it ideal for duty in the rugged African bushveld and for the safe and comfortable movement of up to ten guests.

The standard model features an open cabin to allow for easy movement by the tour guide and unspoiled views by the guests. Mahindra has included a fold-down windscreen, rubberised interior for extra durability in all weather conditions, and passenger access on either side of the wheel well on the right-hand side of the vehicle.

The standard upholstery is replaced by rip stop canvas and there is a new high roof that doubles as a heavy-duty roll cage with similar canvas covering.

In the back, Mahindra has added nine individual padded seats, each with an anchored lap belt. This will ensure the highest level of comfort and safety when travelling on tar or dirt.

Options include an extended foldaway polycarbonate windscreen that reaches the roof, a marine-ply roof cover, canvas roll down sides, additional 12V plug points inside the cabin, an optional wheel fitted on the rear of the cage and a nudge bar. Further, a full customized solution is available to cater to a customer’s specific needs.

The new Pik Up with Mining Specification package is available on the recently upgraded S6 manual double cab with 4x4 drivetrain.





The Mining Specification Pik Up is fitted with heavy-duty external roll-over protection, the necessary red, white and yellow decals, a roof-mounted light bar and a reverse buzzer.

Other additions to this specification include a rubberised load bin with cargo net, stop blocks, wheel nut indicators and heavy-duty seat covers. Mahindra has also added a fire extinguisher, First Aid kit and COVID kit.


https://bit.ly/39DaGPm