Zambia rejects US critical minerals deal over preferential access terms

The Zambian government has rejected a proposed critical minerals partnership with the US, citing Washington's efforts to link negotiations to a $2-billion health aid package and the requirement that US companies receive preferential access to Zambia's mineral resources.

The breakdown in talks underscores ongoing tensions as the Trump administration reshapes US engagement with resource-rich African nations, increasingly tying development assistance to economic factors such as strategic mineral access amid intensifying competition with China. Zambia, Africa's second-largest copper producer, also holds significant cobalt reserves -- both metals are essential for electric vehicle batteries and renewable energy infrastructure.

In a statement posted to Facebook May 4, Foreign Affairs Minister Mulambo Haimbe emphasized Zambia's concern over the US position that the signing of a new health aid agreement should be conditional on the conclusion of a critical minerals deal.

"The Zambian government has been consistent that the agreements must be considered separately on their respective merits and in good faith," Haimbe said.

On the proposed minerals agreement, Haimbe said the Zambian government was unwilling to include provisions granting US companies preferential access to the country's mineral resources.

"Rather, the Zambian government rightfully takes the view, first and foremost, that Zambians must have a say on how their critical minerals are used, and second, that no strategic partner should be treated preferentially to others," he said.

Haimbe added that Zambia "remains committed and available for good faith negotiations with all strategic partners, including the US, on critical minerals beneficiation in a value-adding environment for the mutual benefit of Zambia and its partners."

Data concerns

Regarding the proposed health agreement, Haimbe said negotiations had stalled due to "the incorporation of terms that the Zambian government considers unacceptable," specifically those requiring the sharing of citizens' private health data.

"These matters are the subject of litigation in the Zambian courts, and this must be respected, aside from these provisions being unconscionable from the perspective of the people of Zambia," he said.

Haimbe's statement was issued in response to recent criticism from outgoing US ambassador Michael Gonzales, who accused Zambia of failing to engage in negotiations surrounding health aid.

Under President Donald Trump, the US has adopted a new approach to global health funding that requires recipient countries to engage in direct bilateral negotiations. In February, the US State Department announced it had signed 17 bilateral "global health MOUs" with African countries, including Botswana, Burkina Faso, Burundi, Cameroon, Côte d'Ivoire, Eswatini, Ethiopia, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mozambique, Nigeria, Rwanda, Sierra Leone and Uganda.

This approach follows the dismantling of the flagship US aid agency, USAID, and the US withdrawal from multilateral bodies such as the World Health Organization.

Platts, part of S&P Global Energy, assessed the CIF China clean copper concentrate treatment charge and refining charge at minus $90/mt and minus 9 cents/lb, respectively, on May 5, down $2/mt and 0.2 cent/lb from May 4.