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Congo plans to balance the overwhelming Chinese influence and attract a wider range of investors to its vital mineral reserves.
The Democratic Republic of Congo (DRC) is actively seeking new investors to tap into its vast deposits of crucial metals, as part of an effort to diversify ownership in its mining industry, which has long been dominated by Chinese firms.
According to the DRC Minister of Mines, Kizito Pakabomba, the country is streamlining customs and tax processes to make the sector more investor-friendly, Bloomberg reported.
The country has also forged a partnership with the United Arab Emirates and plans to overhaul a key railway line to facilitate mineral exports. The revamped railway will provide more efficient access to the Atlantic Ocean, enabling easier exports to US and European markets.
The Democratic Republic of Congo (DRC) is a major player in global metals markets, particularly as the world intensifies its race for access to critical minerals.
As the second-largest producer of copper and the top global supplier of cobalt, both essential for the energy transition, Congo finds itself at the centre of a tug-of-war between major powers like China, the US, and others.
In response, the DRC is making “strategic choices” to diversify its partnerships in the mining sector.
Speaking further, Pakabomba pointed to the government’s recent move to block the sale of Trafigura-backed Chemaf Resources Ltd. to China’s Norin Mining Ltd. as an example of its efforts to exert greater control over who operates in the country.
By doing so, Congo plans to balance the overwhelming Chinese influence and attract a wider range of investors to its vital mineral reserves.
The Congolese government is increasingly concerned about its limited influence over the mining sector, particularly regarding cobalt, which is essential for electric vehicle batteries. Last year, the country produced about 75% of the world’s cobalt, but a surge in output from miners, especially China’s CMOC Ltd., has driven prices to an eight-year low.
To regain control over cobalt exports, Pakabomba mentioned that the government is exploring various options and a significant part of this strategy involves enhancing the country’s railway infrastructure.
Pakabomba outlined plans to upgrade the railway from the mining hub of Kolwezi to the Angolan border, linking it to a line that leads to the port of Lobito on the Atlantic Ocean.
