• Orion CMC launches with $1.8B to secure critical minerals
• U.S., allies target emerging markets like Africa for supply
• Strategy counters China’s dominance in global mineral trade
  

Orion Resource Partners, a metals-focused investment firm, announced Thursday, October 23, the formation of a new consortium, Orion Critical Minerals (Orion CMC). The entity was launched with $1.8 billion in initial capital, in collaboration with the U.S. Development Finance Corporation (DFC) and the Emirati sovereign wealth fund ADQ. Its mission is to help the United States and its allies secure their supply of critical minerals.

Orion CMC intends to bring together major global mining investors and operators to create a "multi-billion dollar platform for critical minerals investments." Stakeholders aim to inject up to $5 billion into the consortium's capital, with funds earmarked for developing the exploitation of critical minerals, particularly in emerging markets like Africa, where Washington's interest is growing.

The consortium's strategy is to prioritize investments in existing productive assets or near-term projects rather than exploration initiatives. This approach is designed to provide a rapid response to U.S. demand for critical minerals, although long-term investments are not ruled out.

US Offensive on Critical Minerals Intensifies

The creation of Orion CMC follows closely after the U.S. and Australia signed a framework agreement to secure the supply of rare earth elements and other critical minerals. These initiatives are part of a broader push by Washington to strengthen its influence in the global supply chain, countering China's growing dominance.

These strategic raw materials are essential for modern technologies and include several metals that are not produced, or are minimally produced, in the U.S. For example, natural graphite, used in batteries, hasn't been produced domestically since the 1950s, according to the U.S. Geological Survey (USGS). While rare earths are extracted in the U.S., the country is also a major importer, particularly of finished products. The USGS noted in a 2023 report that "significant quantities of rare earths are imported as permanent magnets integrated into finished goods."

Africa Poised to Benefit?

Orion CMC appears to be a key lever chosen by Washington to close this supply gap. This development is likely being monitored closely in Africa, a region where U.S. interest is no secret, as the continent is estimated to hold about 30% of the world's critical mineral reserves.

While the new consortium has not explicitly named Africa as its target, its focus on emerging countries is notable, especially considering the African mining sector has already attracted U.S. capital in recent years, a dynamic championed by the DFC. In October 2024, for instance, the DFC finalized a $150 million loan agreement with Syrah Resources, which operates the Balama graphite mine in Mozambique, the largest in Africa.

A series of DFC grants also supports the advancement of other critical minerals projects, including Orom-Cross (Blencowe Resources), Longonjo (Pensana), and Phalaborwa (TechMet). Furthermore, Orion had already identified Africa as a priority investment area for Orion Abu Dhabi, a new fund created earlier this year with ADQ.

It remains to be seen whether Orion CMC's operations will follow the established trajectory of its main stakeholders. Meanwhile, other players like Qatar and Saudi Arabia are also seeking to boost their presence in African mineral resources. China continues to consolidate its influence, exemplified by Shengue Resources’ recent acquisition of Peak Rare Earths, which owns the Ngualla rare earths project in Tanzania.

Aurel Sèdjro Houenou