Qatar announced the intention to join a U.S. initiative to secure AI and mineral infrastructure this week.
The Pax Silica programme is chaired by the U.S. Department of State, aiming to cover the supply chain from critical minerals and energy to advanced manufacturing, semiconductors, AI infrastructure, and logistics.
Membership of Pax Silica will include joint deployment of capital into mineral security, the modernisation and expansion of logistics infrastructure, and the acceleration of AI partnerships with the U.S.
Upcoming Signatories
Reuters reported that the UAE will join the pact later this week.
Australia, Japan, South Korea, Singapore, the UK, and Israel are already signatories of the pact.
The State Department reaffirmed the rationale behind the Pax: “we are gathering the nations that possess the capital, the industrial capacity, and the strategic will to secure a shared technological future defined by sovereign nations, free from coercive powers who would turn our supply chains into a geopolitical weapon.”
Rationale
The U.S. President has emphasised his intention to bring critical minerals under U.S. control.
China currently controls 87% of processing and refining of global minerals, a value chain critical for the future of AI and emerging technologies.
The U.S. Geological Survey defines 44 critical minerals and identifies China as the leading worldwide producer of 30 of these.
U.S.-GCC Interests: Contesting Minerals Access
KSA’s $2.5B stake in Vale aims to control a share in minerals yet this overlaps with Chinese investment. This includes business interests in APAC, specifically Indonesia: a country where Chinese firms control 75% of nickel refining capacity.
Chinese export restrictions, on select critical minerals, limits U.S. and GCC access to a key node of U.S. tech, AI, and manufacturing growth which is also critical for GCC diversification projects.
ADQ launched a $1.2B joint venture with U.S. investment firm, Orion Resources Partners, targeting critical mineral assets worldwide. Abu Dhabi’s International Resources Holding is also pursuing majority stakes in Africa: including a copper mine in Zambia and tin producer Alphamin in the DRC.
The UAE and Qatari SWFs manage close to $3T in capital and are pursuing both AI and mineral investments.
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