Unraveling the Complexities of China’s Mining Deals in Congo: Broken Promises and Lawlessness

Since 2015, only $822 million has been spent out of the $3 billion investment promised by China.

A copper and cobalt mine run by Sicomines is seen in Kolwezi, Democratic Republic of Congo, on May 30, 2015. Aaron Ross/Reuters

The newly re-elected Democratic Republic of Congo President Felix Tshisekedi announced that the renegotiation of the Chinese mining deal had secured an additional $7 billion for the Congolese treasury to be used for infrastructure projects. However, analysts believe that the $7 billion may not materialize as expected, and China’s dominance in cobalt mining in the country is still in doubt.

For years, the Chinese regime has been promising to help Congo with infrastructure in exchange for mining of its copper and cobalt. According to a statement, the two sides agreed to maintain the current shareholding structure, with Sinohydro and China Railway Engineering Corporation, paying Congo an annual royalty of 1.2 percent.

Minerals-for-Infrastructure Deal

Located in central Africa with a population of 100 million people, the Democratic Republic of Congo, also known as the DRC or Congo, is very rich in mineral resources and is the world’s largest producer of cobalt. Seventy percent of the world’s cobalt comes from there. Cobalt is a key component in lithium batteries for electric cars and cell phones, and 80 percent of the cobalt mines in Congo are currently owned and operated by Chinese companies. Note that the Democratic Republic of Congo must not be confused with the Republic of Congo, which is a different neighboring country.